Assessing Innovation and Commercialisation Strategies: M&S Report

This report examines the innovation and commercialization strategies employed by Marks and Spencer, focusing on their approach to introducing new products, specifically heart-monitoring T-shirts. The report begins with an overview of innovation and its importance compared to invention, followed by an analysis of how organizational vision, leadership, culture, and teamwork shape innovation. It then delves into the 4Ps of innovation (product, process, position, and paradigm) and the application of the innovation funnel. The report also explores frugal innovation and its relevance. Furthermore, it addresses the importance of the commercial funnel and new product development (NPD) processes, culminating in a detailed innovation business case with techniques for measuring effectiveness. Finally, it evaluates tools for developing, retaining, and protecting knowledge and intellectual property within the organization. The report provides a comprehensive understanding of M&S's innovation journey.

Innovation and
Commercialisation

Table of Contents
INTRODUCTION ..........................................................................................................................3
TASK 1............................................................................................................................................3
P1 Explain innovation and determine its importance to organisations in comparison with
invention.................................................................................................................................3
P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation............................................................................................................5
TASK 3............................................................................................................................................6
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas............................................................................................................6
M2 Analyse and apply the innovation funnel in an organisational context...........................8
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.............................................................................................................8
TASK 3............................................................................................................................................9
P5) Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation...................................9
M4) Build a detailed innovation business case which includes how to measure its overall
effectiveness using appropriate techniques available to test, iterate and improve ............13
TASK 4..........................................................................................................................................14
P7) Evaluate the different tools that organisation can use to develop, retain and protect
knowledge and intellectual property....................................................................................14
CONCLUSION .............................................................................................................................15
REFERENCES..............................................................................................................................16

INTRODUCTION
Innovation is an introduction of any new idea, techniques or plan being made in order for
the betterment of the organisation and people. It covers all the practicals being done on the
technology, services and models to achieve something new, this basically needs certain training,
in all scientific and other regions as this is collection of various ideas made for the betterment of
the society. Innovation merely go through various stages where new ideas, products, services ,
methods being used and introduced. Commercialisation involves introduction of new product or
any new ways through which products are introduced in the market it involves stakeholders to
help them in providing capital and also the customers through whom they get various ideas about
the current needs. The organisation chosen for this report is Marks and Spencer which is founded
in 1884, Its headquarter vis in London,UK. It is a multinational brand which deals with clothing,
food products and home products. This company is coming with a new innovation in there
clothing brand(Boretti, 2020).
TASK 1
P1 Explain innovation and determine its importance to organisations in comparison with
invention.
Invention is a method where a company or an organisation with there new unique ideas
and composition tries to make a noval device, this is extension of boundaries to make changes
that has not been made before innovation mainly needs a thought process with out any
restrictions in a scientific manner for any invention it is important to raise all the technical skills
in inventors.
Innovation refers to the idea being taken by the organisation or the people in order to
launch or develop a new products it is a process where new combinations were made to reframe
the existing products or to develop something new with the sources available in the
market(Chinsinga, and Poulton, 2018).
In context to the Marks and Spencer company, it is an innovative company focusing on
heart monitoring T-shirts and its importance is mentioned below:

 Growth of organisation: For running a successful business it is important that company
focuses on the goals and should make various innovations to maintain its product value.
Marks and Spencer is a globalised brand which has a successful brand image in the
market and this mainly happens as it comes up with innovative ideas which attract
customers. Innovation and its relevancy: There is a change needed in every sector so the company
has to focus on the growth and also on the profits being increased by adapting some
relevant ideas according to the ned of customers. Marks and Spencer focus on bringing
new changes in there products to earn more profit from the market. Distinction from other companies:Innovation is always something which was not done
by others, and makes customers attracted towards them. Marks and Spencer focus on
bringing something new in there products and there innovation makes them different
from the other existing companies(Dike, S.C. and Odimabo-nsijilem, 2020).
Base of differentiation Invention Innovations
Arises when: A sudden new idea came in the
mind of scientist which helps
to increase the profit of
organisation.
When there is a need for
making change in the existing
or new products.
Developed with: One single method is used to
develop any new product.
Mixing or combining existing
products.
Skills needed: Important scientific skills are
needed in order to make a new
changed product.
All kind of technical,
economics , entrepreneur and
strategical skills.
Main motive: To gave a new product which
was not occurred earlier and to
attract more customer through
it.
Improvements in the services
in context of need in the
market.

P2 Explain how organisational vision, leadership, culture and teamwork can shape innovation
and commercialisation.
To innovate any new products it is important to keep check on the organisational vision,
leadership, culture and teamwork as this helps in the commercialisation and growth of the
company. Organisational vision: It refers to the broad development foreseen by the company
which will differs it from rest other organisation. The vision of Marks and Spencer is to
give a standard quality and to develop products which will not harm the environment and
benefits customers. Organisational Leadership: It is approach where leaders tries to motivate the employees
towards there strategies so that they may achieve there goals. Marks and spencer folows
Transactional style of leadership through which they tries to innovate products by high
performance in all levels of work. Organisational Culture: It is a method through which all the members of the
organisation are informed about there values, goals, requirements and there future visions
to know what company actually needs. Marks and Spencer uses customer driven culture
where they make innovation according to the requirements of customers and
technological changes.
 Organisational Teamwork: It refers to the working of an organisation with there
employees managers and leaders in a proper team so as to attain maximum profit by
proper coordination. Marks and Spencer encourages there employees for working
together and motivates them to get new innovative ideas( Gote and et. al., 2019).
M1) Different sources of innovation, and how organisations can foster and develop an
environment and culture of innovation.
Organisation includes the unexpected occurrence, it introduce the unique product in the
market which impact on organisation environment along with the culture. This innovation is best
for health, it is very useful in gym and it is unique feature in t shirt. Some people don't want to
watches and bands but in daily life people wear t shirt. This innovation generate the revenue
because people are very conscious about health and safety so, they willing to buy this
product(Guo and et. al., 2017).

TASK 3
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to examine and
shape innovative ideas
The 4 Ps of innovation is given by Tidd and Bessant which means product, process,
position and paradigm. This mainly tells about the innovation being taken place and the
strategies followed by the organisations, To bring a new innovation the company shall use these
4 Ps of innovation:
 Product: It is the first element which is required in order to innovate any new element
this comprises of the changes made by the organisation in there product in order to
make it innovative. Marks and Spencer is launching a product in its clothing section
which will have a heart monitoring T-shirts provides pulse rates just by wearing it. Process: It covers all the ways through which that product will be launched. As Marks
and Spencer is launching there Heart monitoring T-shirts they will use a chip inside
there clothes which will gave the pulse rate counts(Liu and et. al., 2017). Position: It covers the target market segment which means the innovation is made by
focusing on a certain market area which need to be covered. As Marks and Spencer is
launching its product in the target market so as to attain maximum profit in the clothing
section.
Illustration 1: 4 P's of innovation (2020)

 Paradigm: This covers all the methods, theories and structures applied by the
organisation in order to make that product innovative. As Marks and Spencer's applies
various strategies of giving then product which helps the customers to know there health
and also make them casual to wear it.
Innovation Funnel
It is a process which explains the mechanism or the ways through which a new product is
launched the main reason behind these funnels is to know about the need of the market and with
there manufacturing and economic regions(Meyer-Clement, 2017).
Marks and Spencer can use this innovation funnel in various ways :
 Investigation: It is the first step of innovation funnel which is used in order to investigate
the requirements of the market and customers. Marks and Spencer by its R&D team will
investigate in all the sources of the market that what is in demand ans what kind of
product to be launched. Development: In this process one idea will be taken as according to the needs in the
market and the company will check its mission, vision and main reason or objective
behind taking such ideas. Marks and Spencer can use this by selecting there product and
will check there visions behind it and its benefits to the customers.
Illustration 2: Innovation funnel, 2016

 Shipping Products: This is the last step where the product is finally launched and its
success or failure is calculated. Marks and Spencer will by its new innovative strategy
and ideas will come up with its product(Nagamachi, and Lokman, 2016).
M2 Analyse and apply the innovation funnel in an organisational context.
Innovation funnel gives the mechanism and a way through which a new product is
launched. Marks and Spencer firstly investigate in the market about the need of the customers
and the technology being framed for it, Through that they develop and choose there product and
finally will launch it with a strategy of providing heart monitoring t shirts for all ages(Nagaraj,
D.R. and Farinato, 2016).
P4 Explain developments in frugal innovation and provide examples of how it is used in an
organisational context.
Frugal innovation is an idea which was developed to innovate the existing products and
services which can go along with the market trends. The main idea behind the frugal innovation
was to make innovations that are cheap and which gives customers opportunities to buy it at
affordable price. In an era where there are less resources available, it is now a need for the
companies to use their resources in a sustainable manner to grow. Frugal innovations are done
toM2 Analyse and apply the innovation funnel in an organisational context(Parada, M. and Bull,
2018).
Innovation funnel gives the mechanism and a way through which a new product is
launched. Marks and Spencer firstly investigate in the market about the need of the customers
and the technology being framed for it, Through that they develop and choose there product and
finally will launch it with a strategy of providing heart monitoring t shirts for all ages. lower the
cost of the products. It do not compromise with the quality of the product instead it gives good
quality with lower price of the product. Customers now a days need quality but cannot afford the
expensive products available in the market. So to target those customers, companies are using
frugal innovations to make the products available at same quality on lower price. For example:
Tata motors invented Nano, a mini car which was made available at a very low price.
There are 6 principles which are given by experts to make the use of frugal innovation. They are
as follows: Engage and Iterate: This principle states that the company must not use old methods of
research & development and should rather use new techniques for saving cost and time.

Similarly, marks and Spencer used the social media platform to know the customers
preferences for the innovation in the clothing brand(Perot, 2020). Flex your Assets: This principle states that the company should improvise rather than
being rigid about the assets. Marks and Spenser is using the scrap and waste materials to
make the clothes and in case they are out of material they are willing to contact different
suppliers for the same. Create Sustainable solutions: This principle states that the company should use its
resources keeping in mind to save it for future needs. Marks and Spencer is using all the
waste materials which are left after making other clothes and is using it for making heart
health monitoring t-shirts. Shape Customer Behaviour: This principle states that a company must shape the
behaviours of the customers. Marks and Spencer specially focused on the needs on the
people as people are now very health conscious. Co- Create value with Presumer: this principle states that the company must create
personalised solutions for the customers. Marks and Spencer is also giving an option to
customise the t-shirts according to the needs of the customers.
 Make innovative trends: this principle states that the company must make trends that are
innovative. Marks and Spencer is following the trends keeping in mind the needs of its
customers and following all laws & regulations(Popkova and et. al., 2018).
TASK 3
P5) Explain the importance of the commercial funnel and the application of new product
development (NPD) processing for commercialisation of innovation.
Commercial funnel is a tool for marketing which is used by the companies in order to
find, qualify and trade its products to the consumers. It is a process which starts from creating
awareness in the mind of people by attracting them and later by convincing them to buy the
product. Similarly, with the help of commercial funnel tool, Marks and Spencer would be able to
create awareness in the mind of the people. Every individual is now highly concerned about their
healths and care about the well being of their loved ones. So by portraying the positives of the
product marks and Spencer can attract the customers and also can create health awareness in
their mind. In addition to stay successful in the face of maturing goods, organisation looking
forward grab new ones by a carefully executed new product development action. The new

product of the organisation, it gives the chance to enhance the productivity and generate the
revenue along with the profitability but it depends on quality of product because consumer wants
smart features, shortcut ways which looks adorable. In new development process they face
difficulties, there are various products entering the process, only a small indefinite quantity reach
the market place. Although it is a critical importance to understand the consumers those who are
willing buy new product. Market and competitors in order to make the goods that deliver super
monetary value to customers. There is no way around a sequence, consumer driven new goods
development process for discovering and growing new goods. There are various steps in new
product development methodology(Rodrigues, 2019.Rosenwasser and et. al., 2016).
Idea generation: The development of new product its start with idea generation. It
include the search of new products which is require in market. People are willing to buy, an
organisation generates more than hundred ideas might be even around thousand, to find small
indefinite quantity to good ones in the last. There are two sources of ideas which identify the
internal idea or external idea.
Internal idea generation: organisation looking forward to find out new ideas, which
comes under research and development. It also contributes through the employee.
External idea source: organisation willing to acquire new idea through the external
factor, which includes the all kind of sources such as distributors and suppliers along with the
competitor. The major external source are consumers, because the new product development
which mainly looking forward for customer footfall along with customer value.
Idea screening: Move forward for new step into idea screening which under comes new
development process. This process include the filtration of ideas to pick out excellent one. Idea
screening spot good one ideas and remove poor one as soon as possible. Idea screening generates
large number of ideas, the reason of consecutive stages is to cut down that number. The product
development cost rises positively in upcoming stages. Organisation would like to go ahead only
with those goods ideas that will convert into profitable products. Remove the poor ideas as soon
as possible which is very important(Schutz and et. al., 2018).
Concept development and testing: This process also comes under the development
process, it include attractive ideas which must be developed into a product strategy. A product
concept is full elaboration version of new idea product development into mutually exclusive
product thought. The task of marketers is introduce the new product in market place into

alternative product concept. Organisation find out how attractive each concept is to consumer
and pick the best one. Concept testing involves the group of target consumers. The concept can
be introduced to the customers either verbally or physically. It also enhances the reliability of the
test more strong and give the presentation of the product which is required.
Marketing strategy development: this process includes the initial marketing strategy
for new good which is depend upon product concept for presenting the new product into the
market place.
Business analysis: it involve the overview of the sales, cost, revenue generation and
profit prediction for new goods to find out these elements satisfy the organisation objectives.
Product can be placed on the product development phase.
Product development: The research and development department will looking forward
to test one or more physical version of the product construct. Developing a new product for the
consumer, it will take some time around days, months, weeks, or years which is depending on
the product.
In the context of the concern company which is Mark and Spencer is looking forward to
introduce t shirt along with heart monitoring rate which very unique product in the market.
Which enhances the productivity along with profitability. Organisation must adopt these process
to build the new product and introduce in the market place. This innovation highlight the name
of an organisation which give positive impact towards it. These innovative idea create the brand
valuer along with brand image.
M3 Evaluate the role of frugal innovation in an organisational context.
It is an idea through which a new product is innovated and launched from the items
which were of no use or the residual items as customers wants to get the product at lower price.
So Marks and Spencer has introduced T-shirts with heart rate monitoring facility and which were
made from the rejected item or the stock which is of no use . Main role of Frugal innovation is it
is time saving and cost efficient.
D1)Critically analyse how innovation is developed, embedded and measured in an organisational
context.
This innovation gives the higher opportunity to the organisation which highlights the
brand name and along with the brand value. Innovation is very important for an organisation in

which customer wants new creative things in certain time of period. Mark and Spencer always
looking forward for innovation which is going to enhance profit and revenue generation.
P6) An innovation business case for an organisation, including ways to access funding.
The business case takes different variations that is used to make more creative,
standardised and effectiveness. Mark and Spencer work on heart monitoring t shirt which
promoted the new unique product to the customers. It is basically done for stability and
continuity which is necessary to come downfall which is faced by the organisation in a certain
time of period. There is basic elements of the organisation such as people, resources, equipment,
plan etc. which is given below:
 People: It involve the man power that is required to implement any of the change with in
the working potential Mark and Spencer make innovation and they required the skill full
and talented employee that create changes in ethical manner through the working
capabilities and capacity create expansion of businesses.
 Equipment: It includes the machinery and other production resources which is
mandatory while innovating and Mark and Spencer sure they produce heart monitoring t
shirt along with the best quality product.
Project plan- This plan involve the better planning which is required while innovation
and development. In the addition of Mark and Spencer make availability in which they have
developed the best profit ratio with the collateral increases of sales, and values significant
manner.
Risk and potential benefit- This term include the repetitiveness which is identified on
timely basis it ensure that all actions that refuse the outcome will get managed in ethical manner.
In addition to organisation gives the advance potential advantage which considered as priority of
the consumer.
Cash flow work- It gives the basic knowledge towards the differentiation of cost which
is needed to manage the cash inflows and outflows. It also defines the profit and loss cognition.
Ways for funding
 Crowd funding: It is a process which is used by the Mark and Spencer in addition to
collect the suitable amount through presenting its ideas and thoughts in the market place.
In this organisation have influencing along with convincing the public and tries to grab