Report: Innovation, Commercialisation, and Business Case for H&M

This report provides a comprehensive analysis of innovation and commercialization strategies, using Hennes & Mauritz (H&M) as a case study. It begins by defining innovation and comparing it to invention, emphasizing their importance. The report then explores how organizational vision, leadership, teamwork, and culture shape innovation and commercialization within H&M. It examines various sources of innovation, focusing on perceptual changes. The core of the report delves into the 4Ps of innovation, the application of innovation funnels, and the development of frugal innovation. It also analyzes the commercial funnel and new product development, including the development of a business case for H&M's wireless hair dryer innovation. Finally, the report examines tools for knowledge retention and intellectual property protection, concluding with an evaluation of the nature of innovation and its measurement.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain the innovation and discuss its importance in comparison of invention....................3
P2 Discuss how organisational vision, leadership, teamwork and culture can shape innovation
and commercialisation................................................................................................................4
M1 Examine the different sources of innovation........................................................................6
TASK 2............................................................................................................................................6
P3 Examine the 4P's of innovation and the use of innovation funnel.........................................6
M2 Analysis and application of innovation funnel.....................................................................7
P4 Discuss frugal innovation development.................................................................................8
M3 Examine the role of frugal innovation..................................................................................9
D1 Critically analyse that how innovation is developed and measured....................................10
TASK 3..........................................................................................................................................10
P5 Examine the importance of commercial funnel and application of new product
development..............................................................................................................................10
P6 Develop an innovation business case for an organisation...................................................11
M4 Evaluate to test, iterate and improve..................................................................................11
D2 Critically evaluate the nature of innovation........................................................................11
TASK 4..........................................................................................................................................12
P7 Analyse the different tools that can used by an organisation to develop, retain and protect
knowledge as well as intellectual property...............................................................................12
M5 Present evidence based evaluation of tools........................................................................12
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14

INTRODUCTION
Innovation is defined as a process in which introducing a new and innovative goods as
well as services in the market that will helps in developing customers convenience as well as the
living standard of people. This is required to taking a competitive advantages in dynamic and
competitive marketplace by facilitating better products to end users in comparison of their
competitors. That gives value to them. Whereas, commercialisation is consider as another aspect
that assists in taking customer attention that involves production, promotion as well as
distributional strategy of goods and services that enhance the company's sales as well as profits.
This report is based on Hennes & Mauritz that is a Swedish multinational clothing retail
company that is known for a fast fashion clothing for men, women, teenagers and children. It
was founded in 1947 which headquarters in Sweden. So, a company thinks to bring innovation
by adding wireless hair dryers for women. Under this report discussed about the innovation
which is different from invention, importance and use of innovation funnel, frugal innovation
development, 4P's of innovation, commercial funnel and application of new product
development as well as techniques for protecting intellectual property rights.
TASK 1
P1 Explain the innovation and discuss its importance in comparison of invention.
Innovation refers to the association of alteration within their existing products and
services in order to increase the value of firm's products as well as brand in the persons mindsets
(Bashmakov, 2015).For example: Hennes & Mauritz aims to innovate something new in their
accessories which is done by introducing wireless hair dryer.
Whereas, invention is related to the process that directly leads towards the development
of new products and services that was not in existence before (Chun, 2015). Invention is also
defined as a process that are used to generate new market demand or all old demands are fulfilled
by a company in order to satisfy the customers.
Importance of innovation:
 As innovation facilitates an assistance to business organisation in order to take
competitive advantages over their competitors that are presented in the market by
increasing the present capability of products and services for the purpose of fulfilling the
needs and wants of customers.

 Innovation is also facilitating a wide scope for increasing the return on investment of
Hennes & Mauritz company as it happens as a effect of initiatives that has to be taken by
a business to the disruptive environment of an organisation (Oskam, 2016).
 Innovation can assist in making those products which are based on the customers
dynamic trends and preferences that helps in making a company more customer oriented.
Importance of invention:
 Invention are useful for a company while they want to launch a new products and
services by introducing new features that are not present in the market. This will helps in
improving the convenience as well as better experience of customers.
There is requirement to insights the difference between innovation and invention:
Basis Innovation Invention
Scope It has a narrow scope as it is just
emphasised on the development or
modification of existing products and
services
The scope of invention is broad or wide
scope as it comprehended the entire
initiation or new products and services.
Applicability It is mainly applied in all departments
of a business in order to drive a positive
results of an organisation.
This is executed by the research &
development department.
Occurrence It is subjected to the integration of
alteration in existing commodities.
It only take place when the demand is
generated in the market towards the
products and services.
P2 Discuss how organisational vision, leadership, teamwork and culture can shape innovation
and commercialisation.
Commercialisation refers to the process that aims at the stipulations of company
offerings within a competitive marketplace. As innovation as well as commercialisation are
interrelated in which market trends to be incorporated for improvements in their existing
products and services and later on they look for communicating towards them to general public
(Datta, 2015). In order to that there are several factors that tends to form a innovation as well as

commercialisation procedure within the scope of Hennes & Mauritz. These elements are
discussed below:
 VISION: This is considered as a most important factor of a business organisation that
form innovation and commercialisation procedure. It has been considered that Hennes &
Mauritz has their vision is to lead the change towards the circular as well as renewable
fashion industry while being a fair and equal company. In respect of innovation, this
provides company to innovate effective choices through which a vision of Hennes &
Mauritz can be achieved within a specified time period. In addition, commercialisation
would focus on making wireless hair dryer for women. The vision of Hennes & Mauritz
enables to create innovation as well as commercialisation and they approach to the large
people along with its unique offerings of new product.
 Leadership: It is the another element of innovation and commercialisation process in
order to lead the changes in an effective manner. It has been viewed that leader applies
participative style of leadership within the Hennes & Mauritz organisation in order to
ensure the employees engagement in the business activities and processes. Leadership
approaches helps in creating a clear vision for team members and make sure that they are
aligned accordingly. This increases the participation of employees in introducing such
kind of improvements in existing offerings to effectively interact and appeal to
customers. If workers are facilitated with a clear vision, direction and guidelines, that
leadership style provides Hennes & Mauritz to introduced innovation as well as
commercialisation according to the market needs (Du, 2017).
 Culture: It is related to the values, beliefs as well as ideologies of entire organisation and
it considered as a key element which encourage a business operations in order to execute
innovation and commercialisation in workplace. It has been seen that Hennes & Mauritz
has adopts task culture wherein the roles as well as responsibilities are assigned to all
individual's according to their skills, knowledge and expertise. Moreover, it has been
analysed that positive culture privileged tends to increase personnel belongingness of
Hennes & Mauritz organisations as they rapidly come up with innovations as well as
commercialise them in order to expands revenue.
 Teamwork: It is also considered as an important aspects of a business organisation that
provides a company to introduced innovation and commercialisation that is recognised to

be teamwork. In the context of Hennes & Mauritz, it can be shown that it encourage the
evolution of collaborative workplace environment. As team work is acknowledged with
the mission statement of bringing new product in the market that is stipulated by Hennes
& Mauritz. It can be said that if a company deals with effective team working atmosphere
it can easily comes with innovation as well as commercialisation procedures (Hossain,
2016).
M1 Examine the different sources of innovation.
Several sources are presents that give an ascent to increasing innovation requirements in
the scope of a company. In this report, Peter Drucker's sources of innovation are considered by
Hennes & Mauritz in order to examine that which elements lead the requirement of introducing
innovation within the business organisation. There are mainly 7 sources that includes process,
market structure changes, incongruity, demographics, new knowledge, change in perception as
well as unexpected. In this context, it has been analysed that perceptual changes helps Hennes &
Mauritz in order to bring the innovation in wireless hair dryer (Hossain, 2015).
TASK 2
P3 Examine the 4P's of innovation and the use of innovation funnel.
Innovation defined as a essential aspects for all business units as it facilitates the large
scope for increasing the market shares and positioning as well. In this section a company Hennes
& Mauritz make use of innovation mixes in order to bring innovation in the company's
workplace.
4P's of innovation mix:
This can be defined as aggregation of all components that facilitates a route map for a
business organisation in order to enter innovations in day to day activities and functions of a
firm. The main motive of innovation mix is to incorporate the development in their existing
offerings that are provided by the company in order to capture the large customers. There are
mainly 4p's of innovation mix that can be considered as follows:
Product innovation: This mix strategy will enable the Hennes & Mauritz in introducing
changes in their existing products as per the changing taste and preferences of the customers so
that they can satisfy their needs (Jahn, 2016). Within the context of Hennes & Mauritz, it has
been analysed that collaborative exertion of entire innovation team of respective organisation

would lead towards the improvement in existing products or develop new one within a specified
time frame so as they gain maximum customer satisfaction.
Process innovation: This type of innovation mix facilitates an organisation in improving
the existing process issued by them for producing their goods and services and for making
delivery of the products and services with the help of innovation. Also it attempts to create
product by implementing critical and analytical thinking skills as it is focused on the procedures
rather than product development. In the context of Hennes & Mauritz, employees of this
company workout their own skills that are related to the creativity and innovation as well as
leveraged on them in order to bring innovative and creative ideas and execute them within an
organisational environment.
Positioning innovation: With the help of this innovation mix strategy the company can
position their products and services within the market in such a manner that they can reach to the
customers efficiently through innovative ways such as creative advertisements etc. Within the
context of Hennes & Mauritz, it has been identified that a business organisation uses several
strategies in order to placed their brand as well as innovative offerings in the marketplace to
reach the customers (Jamil, 2015).
Paradigm innovation: It is the last factor of innovation mix as it is crucial for
composition of tasks connected to innovation within the specific time period. It facilitates to
change the underlying mental modes so that the functions of the organisation can be improved.
Paradigm leads strategies, activities as well as policies that are adopted by Hennes & Mauritz in
order to introduce innovation in the company's offerings. This will bring improvement in the
overall business process as this will bring change in the perception of the people.
Innovation funnel:
It can be defined as a structure that is considered by an organisation across the worldwide
to determine the entire process while they develop a new products and services. This includes a
set of several events which are required to considered for ensuring that the ideas gets changed
into reality (Innovation Funnel, 2019).
Use of innovation funnel:
 It changes the business organisation to make full the market gap in an effective manner in
terms of manufacturable as well as economical form.

 It facilitates helps to a company in order to accomplishment of competitive advantages
through development in products and services through which customers have demanded
in the market.
M2 Analysis and application of innovation funnel.
Innovation funnel and its application is essential for Hennes & Mauritz in order to
introduce innovation (Ke, 2016). That can be considered as follows: Opportunities exploration: The market condition is analysed by the company to know
the available opportunities as in order to research effectively a company use survey as
well as questionnaire. Idea processing: In this, business firm investing in the market opportunities by keeping
brainstorming process which allows Hennes & Mauritz to increase the knowledge
towards the process of how ideas are transformed in reality. Conceptualisation: Product and services are designed by a company thus this step will
grade the development of wireless hair dryer for women. Benchmarking: In this stage, a company screens the concept effectively through
conducting performance testing measures. This helps in determining the earning scope as
a outcome of new offerings.
 Launch: The objectives of an organisation is formulated and contrast with the selected
concept furthermore, the new product is developed into the marketplace.
P4 Discuss frugal innovation development.
Frugal innovation is defined as a process which used to create commodities through the
excessive use of latest technologies. This kind of products is approachable by the customers at
low prices and the factors of external environment play a crucial role in such kind of innovation
(Frugal Innovation, 2019). By considering the Hennes & Mauritz Company, it has decided to go
through an innovation as it focused on product development due to bring new product by
bringing wireless hair dryers at a multinational level. In order to stay for a long time in
international business market environment the manager of Hennes & Mauritz is required to
implement or use frugal innovation while they go for product development. There are some
stages for this innovation that can be considered as follows:

Illustration 1: Illustration 1: Frugal Innovation, 2019
(Source : Frugal Innovation, 2019) Seek opportunities in adversity: With this the innovation is introduced by the
organisation in the adverse situation so that they can ensure survival o the business. This
refers to the taking benefits of dynamic conditions and innovative offerings in order to
reduce the negative effects of adversity. Hennes & Mauritz took benefit of market
competition and changes in customers trends and requirements by developing a wireless
hair dryer for women that are most preferred by the customers. Do more with less: It enables the organisation to use their limited resources for satisfying
the needs of the customers. This refers to the introduce innovations with limited resources
that are used effectively and efficiently in the development of offerings. Hennes &
Mauritz make wireless hair dryer for women in order to introduce new products. Think and act flexibly: With the help of this innovative thinking can be encouraged so
that the products can be made suitable to the needs of the customers. It refers to the
structure as well as culture of a business organisation which encourage team members in
order to think innovative so the innovation takes place successfully in the existing
offerings that satisfy the customers dynamic trends and needs. Keep it simple: The plans are formulated which are easy to understand by the team so
that they can easily introduce innovation in the processes and the products as well as
services. This refers to that innovation plan should be required easy to defined and

executed to bring a successful innovation in the company's offerings without engaged in a
complex process of manufacturing. Include the margins: It facilities to introduce innovation in such a manner that the value
can be increased for the customers. This means the innovation in products and services
must be customer oriented as the company able to satisfy the needs of customers
efficiently.
 Follow your heart: This refers to the management thinking behind the innovation as they
thinks it can assist them in increasing customer satisfaction as well as market shares
while innovation is introducing in the market environment.
M3 Examine the role of frugal innovation.
Frugal innovation takes by Hennes & Mauritz in order to gain high revenue and profit by
minimising the cost like they adding wireless hair dryer for women. It also plays a crucial role in
insuring the fully utilisation of available resources as a principle of frugal innovation is incisive
on developing NPD procedures through optimum usage of limited resources (Kerschke, 2015).
Hennes & Mauritz would consider this kind of innovation when it develops new products by
adding wireless hair dryer for women.
D1 Critically analyse that how innovation is developed and measured.
As per the Hoque, Chishty and Halloway, innovation assists to take a competitive
advantages in the external marketplace where a huge range of competition in order to act in a
positive as well as effective manner. There are several factors that has to be keep in the view of
manager while brining innovation. Company's culture is effective element that identify the whole
market conditions and take corrective actions. Whereas, it is not possible to implement and
develop changes without the contribution of employees.
TASK 3
P5 Examine the importance of commercial funnel and application of new product development.
Importance of commercial funnel:
It refers to the customers entire journey during the getting goods and services. Hennes &
Mauritz should provide this funnel to requesting potential customers as well as encourage them
to purchase those offerings. This helps a business organisation in spreading out the customer

base in order to analysed the market conditions and vies of society which make more purchases
(Laihonen, 2015).
New product development:
It is required for Hennes & Mauritz to confront some measures for the purpose of filling
market gap. With respect of this, a firm is come up with innovative and new products and
services it is essential to form available resources according to the requirement. According to the
changes in plan it is necessary to employ actions effectively so there must not be any gap or
difference in standard and actual results. There are several steps of new product development
plan that are as follows:
 Generation of new idea: In the first stage of new product development plan, it is
necessary to create an idea in order to take appropriate actions. There are many thoughts
and concepts that are carried out by Hennes & Mauritz in order to bring wireless hair
dryer for women.
 Screening of the idea: After generating the idea, it is necessary to evaluate them for
better understanding of which idea can be incorporated out of identified one through the
process of screening in order to accomplish targets. The requirement is also identified of
many resources to know that which alternative is beneficial to compete.
 Development concept: After selecting one idea, it is required to have idea towards the
development plans for performing the further tasks and activities. In these testing
measures is taken to check the efficiency and effectiveness.
 Marketing strategy and activities: While implementing operational plan in order to
perform the activities market plays a crucial role as it is necessary to make business
alterations as per the market conditions and policies. This will assist to take competitive
advantage within the dynamic and competitive external marketplace. Along with this
various marketing strategies in terms of pricing and promotion are identified so that the
Hennes & Mauritz can efficiently manage their launch of new product.
 Feasibility analysis: After doing market analysis financial performance and statement
has to be identified as it is important for implementing innovative changes in an
appropriate manner. After that financial analysis, there is some kind of possibility that
public do not like wireless hair dryer for women. In order to remove this possibility or
situation there must be a stipulation of customised offerings in which people can order

wireless hair dryer for women according to their needs. This is necessary to test new
product by provide testing hair dryers in small group of persons before introducing it in
the wide market area.
 Product development: On the basis of identification of various concepts and strategies
new products are developed by the Hennes & Mauritz which are wireless hair dryer so
that they can ensure availability of the products to the customers.
 Commercialisation: After all stages lastly focused on improving negative outcomes as
there is commercialisation of wireless hair dryer after it is successfully testing within
small section of people.
P6: Innovation business case for the organisation
Business case is a written document which can be a short agreement or a presentation.
The intention to prepare the business case is to utilise the resources such as efforts and money in
such a way that it contributes to the success of the specific need of the business (Molnar, 2018).
It is highly structured and comprehensive document which includes various project management
methodologies. Such a business case is prepared for the company Hennes & Mauritz which
includes background of the company, need of innovation and how it can be supported. The
business for the company is given below :
 Executive summary: The Company Hennes & Mauritz is planning to launch a wireless
hair dryer for women. In the business case various requirement of innovation,
opportunities in future are identified. Along with this various other aspects are analysed
such as funding, strategies to get competitive edge etc. This case gives an overview of
various steps which will undertaken by the company.
 Background of the company: H&M was originated from the hunting and fishing stores
in 1946 by Erling person who opens a women clothing store in Sweden. It is a
multinational retail company that have its operations in 62 countries with over 4500
stores and 132000 employees.
 Vision: The vision of the company is to offer such kind of wireless hair dryers that can
promote a use of latest technologies for better living standard of the consumers.
 Mission: The mission of the company is to increase the value to the customers time to
time by adding on various innovative products with unique features.