Analysis of Innovation Sources and Their Organizational Impact Report

This report delves into the multifaceted realm of innovation, exploring its various sources such as unexpected discoveries, incongruities, market structure, necessity, demographics, changing perceptions, and new knowledge. The report examines how these sources influence organizational dynamics, using Burberry as a case study to illustrate the practical implications. It highlights Burberry's adoption of artificial intelligence and RFID technology, demonstrating how these innovations enhance customer satisfaction, streamline operations, and improve supply chain management. Furthermore, the report discusses the reasons behind potential failures in change initiatives, providing a comprehensive overview of the challenges and opportunities associated with innovation in the business environment. The analysis covers how Burberry utilizes demographic factors and customer perception to maintain a competitive edge in the global market. This report offers insights into the strategic importance of innovation and its role in driving business success and growth.

Running head: Innovation
Innovation
2019

Innovation
Table of Contents
Introduction.................................................................................................................................................3
Different sources of innovation...................................................................................................................3
Impact on the organization of the different sources of innovation...............................................................7
Reasons why 70% change initiatives may fail.............................................................................................9
Conclusion.................................................................................................................................................13
References.................................................................................................................................................14
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Innovation
Introduction
Innovation is a new idea, new imagination and creative thoughts in form of method and
technique. The main purpose of this report is to draw and outline a brief information about the
different sources of innovation and change management models. Along with this, the paper
discusses how various sources of innovation impact on the organization. Burberry Company has
been chosen in the task to evaluate the effects of several sources of innovation. Burberry is a
biggest luxury fashion house which was incorporated in 1856 in London, England (Burburry,
2019). The vision of the company is to establish an effective position in luxury fashion. The firm
uses innovative and advanced technologies to compete with competitors. Burberry provides
fashionable products like sunglasses, fragrances, accessories to the customers. The report also
discusses the reasons of resistance to change. More detail of the task has been elaborated below.
Different sources of innovation
Innovation is not just revealed by initiating or introducing new ideas, techniques and
methods. Innovation may be defined as a dynamic process that includes several activities and
initiatives to uncover new and innovative ways to do things. It is stated that innovation is a far
deeper process than basically expansion, enhancement and the changes it brings is further far
long lasting and full of effects. The different sources of innovation are discussed below
(Innovation, 2019).
Unexpected: It is stated that modernization can take place unpredictably and ineffectively. This
can occur by chance someone may just stagger upon new product or idea. There is a long and
dynamic list of unanticipated innovations in human history. For example, fire is a considered an
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Innovation
unpredicted innovation that humans stumbled upon. Another example is detonate. The main
benefit of this innovation is that unexpected success and competitive advantage can be taken
with the help of this innovation. On the other hand, depth analysis is needed which is one of the
biggest limitations of unexpected innovation (Chesbrough & Bogers, 2014).
Incongruities: When the need and requirement are incongruent with the supply, innovation may
be born. In an attempt to handle and resolve the presenting incongruities people might innovate.
For example, the population of cars increased there was a scarcity of parking region. To resolve
the absurdity between the parking scarcity and parking area, the smart and innovative car was
born. It is worth analyzed that smart and innovative car is a small car that can suitable in small
spaces. Incongruities can be a significant and unique foundation of innovation. It is significantly
in the human nature to try to fill the incongruities he watches around him. The biggest advantage
of this innovation is that it improves and enhances the economic performance. It provides profit
and revenue because it is exercised by the tide. This innovation is failed to analyze that what
actions might be missing in how customers use specific goods and services that may render an
opportunity for innovation. It is a leading limitation of incongruity.
Market structure: An accessible and effective structure could further give rise to options for
innovation. For example, this is how Google was born. Google formulated the search steam
engine market. Before Google the search mechanism was not as unique and perfect and Google
brought all of it in sort. There was ample of information and facts scattered over the World Wide
Web. It is evident that Google made this fact and information searchable and effective.
Therefore, the World Wide Web gave grow to a market formation where a search mechanism
such as Google could thrive and expand. The World Wide Web paved the innovative and
dynamic way for interconnection. Google designed a search mechanism that was interconnected
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Innovation
to all the searchable data and facts. This innovation helps in increasing and enhancing
profitability and returns because it helps in changing the market structure. It is a biggest benefit
of market structure innovation. On the other hand, the organization sometimes is unable to find
out and analyze the needs, wants and preferences of the customers (Díaz-Díaz & de Saá Pérez,
2012)
Necessity: It is evaluated that requirement is a mother of development and invention but it is
further the mother of modernization. Let’s talk about Microscope. It was born out of the
requirement to investigate depth into the microbial world. Generally requirements are set to think
effectively and efficiently. It is measured that innovation is based upon the bright and unique
thoughts and ideas. The human mind thinks of new and innovative things that can better and
effectively fulfill an existing requirement or need. In this procedure, the people think of filling
their needs and wants in innovative ways and by dividing new mechanisms and products as well
(Chesbrough, Open innovation: Where we've been and where we're going., 2012).
Demographics: It is one of the effective and unique sources of innovation. The lifestyle and
trend could be a cause of innovation. The people have different lifestyle needs and wants. For
example, the people feel the need to smoke. Though, since smoking is harmful and dangerous for
health, thus the people made e-cigarettes to satisfy the urge. It is evident that lifestyle
requirements are not small requirements and their fulfillment and significant needs for people.
This is where innovators many times find major and dynamic opportunities (Pratap, 2019). The
benefit of this source of innovation is that population changes (education, disposable, geographic
shifts and age) are one of the unique and effective predictors of the future and it offers ample of
opportunities. Ageing population is a leading and major threat to the company.
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Innovation
Changing perception: It is reported that changing insight regards things can further give birth to
modernization. Previously, the overweight people were seen as healthier and unique than the
learner ones. Therefore, the community awareness of healthy has undertaken a big change where
plump community is seen as overweight and ineffective. People consider the requirement to
remain healthier, dynamic and learner. On the behalf of this changed awareness or observation, a
flood of vigorous and low calorie foods came to the global market. By using this source of
innovation, the organization can take competitive benefits because it helps in evaluating the
lifestyle and needs of the customers. Furthermore, it needs high time and judgment thus it is a
leading limitation of this source of innovation (Swaim, 2019).
New knowledge: This can further be a strong basis of modernization. Whether it is a
biotechnology, Nano-technology and even artificial intelligence, new awareness in any field is a
source of modernism. The science is working effectively in the context of innovation. Every year
new areas are shown effectively and much gets supplementary to the existing bottom of human
awareness. This innovative and new knowledge covers way or manner for innovations that
sometimes can be life changing. For example, healthier is an area that has overtime been highly
influenced by such innovations whether they appear from the fields of biotechnology or
nanotechnology. However, one can analyze and find many more such innovative examples in
daily life. It is seen that innovation can be born out of adventure or passion or even of a hobby.
This innovation is not based on the one element but on the convergence of various different
kinds of knowledge. But this source never provides a depth research to substantiate this view.
These are the sources of innovation that help in developing and enhancing the customer
value through the various resolutions that meet new requirements, wants and needs. Along with
that, the innovative and dynamic workers increase and improve the output by implementing and
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Innovation
creating new procedures which in turn might maximize competitive benefit and offer meaningful
and effective differentiation (Erne, 2016).
Impact on the organization of the different sources of innovation
It is worth noted that Burberry is largest and well known clothes labels around the globe.
The main aim of the company is to reinvent itself as an end to end digital enterprise. In
innovation, the company uses artificial intelligence and big data to increase customer satisfaction
and sales. The artificial intelligence is implemented by the company by using of new knowledge
source of innovation (Marr, 2019). It helps in overcoming the competitors in the global market. It
is observed that new knowledge can be a dynamic source of innovative and significant
opportunities but has the biggest lead times of all innovations. By using new knowledge such as
artificial intelligence and data, the company has indeed and stumbled into some of its innovative
products (Garriga, Von Krogh, & Spaeth, 2013)
Artificial intelligence is adopted to provide modified suggestions, online and in store.
With the help of new knowledge source of innovation, Burberry is able to share data to the
customers. Additionally, rewards and loyalty programs also are held by the company to attract
and retain wide range of premium clients in the marketplace. When a recognized client enters a
store, sales executives use tablets to provide buying recommendations based on their wide range
of customers purchase history and their public media activities. In this way, new knowledge
source of innovation put positive impact on the sale and revenue ( López-Nicolás & Meroño-
Cerdán, 2012).
Along with that, products in Burberry 500 stores around 50 countries are fitted with the
help of RFID (radio frequency identification) technology (Marr, 2017). Through RFID
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Innovation
technology, the customers can collect information about how products are produced and
suggestions on how they can be worn or used. In 2015, the firm announced that their investment
in personalized customer management sessions and programs had resulted in a 50% boost in
repeat custom. It is investigated that fashion industry is known as RFID adopter. The value and
worth of this technology is specifically visible and unique in fast moving fashion supply chains
(agility) as the fashion business is attributed by an effective assortment of products, high
volatility, short life cycles, logistics operations and high impulse purchasing. The five Ps of
RFID technology include physics, price, process, privacy and performance. RFID technology
further helps in increasing and improving the efficiency of operations and also improves inter
organizational process effectively. In this way, RFID technology put various impacts on the
market share, agility and supply chain. Moreover, RFID implementation permits Burberry to
manage and control the stock levels more effectively. Besides this, thanks to implementing
RFID, close monitoring of item circulation offers integrated production, logistics, supply chain
and marketing. For these reasons, there is huge investment in the improvements and
enhancement of RFID technology just because of the substantial benefits that the fashion
company can gain by optimizing it (Marr, 2017). By implementing RFID technology, the
corporation is able to increase skills, knowledge, leanness and talents of the workers.
After the various studies, it is evaluated that Burberry focuses on the demographic factors
and perception of the customers to cope up with competitors globally. The company is an earlier
adopter of new channels and technology. The brand was the foremost across the world to make
use of Snap chat’s Snap code attribute. This permits customers to unlock and collect information
by scanning barcodes attached to their items and services. The organization is analyzing and
evaluating the needs, requirements, buying behavior and perception of the customers to augment
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Innovation
sale and maximize profitability in the competitive market. For this purpose, innovative
engagement initiative and programs are used by the company at various stores (Marr, 2017). It
will in improving and amplifying the leanness and integrity of employees at the workplace.
The demographic and changing perception source of innovation help Burberry to make a strong
and dynamic image in the minds of the customers. Burberry is an effective and significant brand
across the globe so it makes great sense that this is a field where it has previously used AI and
machine knowledge technology to conduct business activities (Yam, Lo, Tang, & Lau,
2011).The company has spoken about its planning to roll out AI tech into other fields of its
initiatives and activities including product enhancement and production (Marr, 2017). The
company was developed on innovation-its initial items were made from robust new fabrics like
Gabardine built by inventor or founder (Sung & Choi, 2014).The firm also uses unexpected and
incongruities source of innovation in production process to attain the competitive edge in the
global market. The company introduced its own devoted channel on Apple music with the
objective of linking with various clients by enhancing and enlarging British musical talent. By
using unexpected innovation, Burberry is able to differentiate its products from the competitors
globally. In this way, it is measured that various sources of innovation put direct impact on the
image, agility and profitability of the firm. It also has an impact on the agility and supply chain
of the company. These sources of innovation also improve and boost effectiveness and efficiency
of the workers as a result leanness and agility are maintained in the organization (Gunday,
Ulusoy, Kilic, & Alpkan, 2011).
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Innovation
Reasons why 70% change initiatives may fail
It is true that 70 percent of most effective initiatives might fail to meet the needs and
requirements of stakeholders. When implementing to change, the many companies get stuck at
the initiation stage. This is where the rubber meets the road and many organizations find it
complex to get past their values and culture of not holding people responsible. The reasons why
70% change initiatives may fail are discussed below.
 The main reason change initiatives fail is lack of leadership consensus and help from the
company’s leaders. It is main reason behind the rejection of change initiatives. Therefore,
leaders should focus on the communication and leadership to implement the change
management ( Hughes, 2011).
 Lack of accountability is another reason which can influence or effect the change
initiatives in the organization. To reduce this issue, the leaders need to ensure that all
team members know excuses would not be tolerated at the workplace.
 Failure to communication is another reason that hampers the change initiatives adversely
within the organization. As a result, the employees do not accept the changes effectively.
 Inadequate resources and poor planning are another cause that affect the progress of
change initiatives negatively (CCL, 2019).
 A lack of effective measurable metrics set to evaluate outputs will make it very tricky to
identify and determine if the initiative is a failure or success. It is a primary and ongoing
cause that put direct impact on the progress of change initiative.
 Additionally, without strong and effective team, change initiative is doomed to fail.
Ensure all the employees are committed, are passionate towards the change and have the
right and unique skills (Burnes & Jackson, 2011).
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 Missing feedback or review is another reason behind the failure of change initiatives.
Failure to ask for reviews and feedback generally lead to a lack of buy-in and unpredicted
issues and challenges (Kotter, 2012).
 Lack of defined outputs is vital cause of resisting for the change initiatives at the
workplace. Apart from this, in today’s competitive world, sustaining change is
exponentially more complex than standard change management recommendation would
have people believe. It also creates resistance to change issues while implementing the
change management in the organization (Jewell, 2019).
Change management models
The change management models to reduce and eliminate change management issues.
Some of the change management models are presented below.
Lewin change management model: There are three stage of Lewin change management model
that have been shown below.
Unfreezing: It is well known and effective that individuals often resist change as they prefer
strategies, approaches and processes that they know to those that they do not. To overcome this,
Lewin argued that individuals or employees shall be promoted to examine and analyze current
processes for maximizing profitability.
Change: Once employees have accepted current procedures can be improved and enhanced and
there are various solutions to the issues and barriers. The next step is to initiate the change
process. This stage offers excellent opportunity for skills enhancement and attaining experience
and knowledge. Communication and leaders play a major role in this stage to accept the
organizational changes.
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Freezing: This stage is significant and vital in the overall processes. In this stage, it is needed
that change is sustained and reinforced. This stage is unique to ensure that people do not revert
back to their old ways of thinking to the initiation of the change (Erne, 2016).
The Lewin change management model is a unique approach to new ways of thinking at the
workplace. It also helps in preventing resistance to change issues and barriers while initiating the
change initiatives (Cummings, Bridgman, & Brown, 2014)
Kotter’s 8 step change management model: The 8 steps of Kotter’s model include the
following:
 Create a sense of necessity
 Develop a strong and effective alliance
 Formulate a strategic vision
 Get everyone buy-in
 Enable measures by reducing barriers
 Create short term wins
 maintain acceleration
 Institute change
This model or process effectively turns possibly resistant individuals into open participants
through teamwork, transparency and faith. In this way, this model helps in eliminating the
resistance to change obstacles and barriers while using the change initiatives (Sarayre, Khudair,
& Barakat, 2013)
ADKAR model: This model is well known for its people focused approach and it focuses on the
change initiatives. ADKAR model stands for awareness, desires, knowledge, ability, and
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