Innovation and Commercialisation: A Case Study of Richemont

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Innovation and Commercialisation

Introduction
Innovation is the process of translating inventions or ideas into goods or services for creation of
value which customer purchase. An idea replicable on the cost of economy and fulfill specific
needs. Innovation requires imagination, information, and initiative the different value of
resources. This process includes generation of new ideas and converted into useful goods.
Commercialisation is the process of bringing new product in market. The process of
commercialisation includes production, distribution, sales, marketing, customer support, and
functions which help to achieve success in introducing new product in market. In this study,
there will be discussion on Richemont Company which deals in luxury goods such as jewelry,
watches and writing instruments. There will be discussion on the difference between invention
and innovation. In addition to that the different types of innovation will be discussed. It also
includes the process required to commercialise innovation. Apart from that the range of methods
for protecting ideas and understand their advantages and disadvantages will be discussed.

LO1
Explain innovation and determine its importance to organisations in comparison
with invention.
Innovation is introduction of new ideas and methods in an organisation. Innovation is process of
doing multiple activities to do things in new way. It includes act of making, inventing, and
producing something. Richemont uses new innovation which requires creativity.
Innovation and Invention
Innovation helps to create unique product, adjust existing service and implement new ideas. In
this risk is taken to try something new. It is important for business to be creative and innovative
to compete with competitors. Lack of innovation is leads to loosing employees and less
engagement at workplace. Invention is the process of creating new items and new way to
produce existing products. Invention is the outcome of innovation. Invention is profitable for
business. Invention is creation of product at first time. Innovation occurs when it improves on
make significant contribution to existing product.
Embrace Failure – Failure is next step to road of success. Experimentation is related with both
innovation and invention. When all experiments fail it takes only one step for success.
Go against the Grain – It’s all about thinking out of box. It includes hiring a diverse group of
practice and not reinvesting small product with change. Going against will lead to product which
are not in demand.
Emotional connection – It applies both with employees and customers. Emotions are connected
with creative part of brain and innovation. Customers have small emotional investment in market
of Richemont.
Importance of innovation
Creative development – Innovation nature is necessary in business. It can achieve growth by
learning to be creative. It needs to be learning the skills of business to help make things from
creativeness.
Continuous improvement – Innovation helps to give sustainability to make improvement in
business by re-branding and repackaging. A manager of organisation focuses on innovates and
grows the business skills.
Reinforce brand – In organisation leadership development branding is popular. The process
inform about the leaders to learn the way to be more innovative and creative. It recognise as one
of important factor of success.

P2 Explain how organisational vision, leadership, culture and teamwork can shape
innovation and commercialisation.
Organisation vision set as best practice to perform efficiently and effectively in an organisation.
A best practice is integrated with organizational structure to solid mission and vision statement.
It is the holistic message about company’s brand. Small business manager can develop mission,
vision and value statement. A mission statement works with statement of company’s vision. Best
practice of organisation follow measurable, specific, reasonable and action based.
Leaders are responsible for assemble the team and leading the optimal outcome of performance.
An effective leader determines the differences in people and to get best outcome from team. It
includes continuous improvement, initiative and innovation. Innovation leads to breaking down
the rules and creation of new one. It is necessary to become transparent in front of every member
of team. Team members trust each other to work creatively in team. Collaboration is working in
a team and inventing something new.
Culture plays an important role in innovation. Environment allowing challenges to creating new
ideas, challenges assumptions, fail, giving freedom to experiment and learn. Talent helps to
develop the programs for setting, innovation and managing the performance. Process includes
the idea of generation and having process to innovate concepts.
Innovation leads to creation of new and useful. It helps to drive growth. Innovation helps to
attract new consumers to build culture and encourage among team members. The main objective
is to understand the factors to discourage and encourage human being to creative. It generates the
product or service to sustain viability. Business requires creativity to reach at next level of
business. The manager of organisation requires specific type of mind while hiring new
candidates. It helps to hire people who think creative and differently for the success of an
organisation.

M1: Analyse different sources of innovation, and how organisations can foster and
develop an environment and culture of innovation.
There are various sources of innovation. The opportunity of innovation sources are given below:
The Unexpected – Market place have number of opportunities in market. A manager of
organisation does constant study of market. It analyses the demand of goods and service in
market.
The incongruity – There is discrepancy between present and future outcomes. It is the key of
developing business by using innovative ideas. It includes doing something different.
Process need – Process needs includes identify the weakness of process and rectify it by taking
corrective measures. The source of innovation based on the abilities and capabilities of business.
Industry and market structure change – The continual flux are in industry and market.
Regulation changes some product lines and expands. Business focuses on continuous innovation.

D1: Critically analyse how innovation is developed, embedded and measured in an
organisational context.
Innovation is one of the important factors to drive the economic progress of consumer benefits,
economy and business. It plays an important role in growth and promotion of economic
development. Innovation includes research & development, investing in education, and it helps
to start business quickly and exists in market. An organisation can start innovation by investing
in employees and by conducting research and development.
The two factors require making innovation real in an organisation. Work on both rest and same
time to emerge by process of product. It allows company to reframe category which includes
potential leader and consumers. Innovation is an intangible process of an enterprise. For
measuring innovation able to measure solution for existing needs of market.

LO2.
P3 Explain the 4Ps of innovation and explain the use of the innovation funnel to
examine and shape innovative ideas.
The 4ps of innovation are product, process, position and paradigm. Product innovation is the first
thing when discuss about innovation. It conveys the changes in goods and services which an
organisation offers. Process innovation includes change in the things created and delivered.
Position innovation contains changes to the context of product or services to launch in the target
market. Paradigm innovation includes change in underlying model of frame which organisation
does alternative frame companies.
Paradigm – Richemont is found best for luxury items. After breakthrough and aggressive
marketing campaign to company started selling cheap and reliable product in market.
Product – An organisation expanded range of product to include watches and jewelry. It helps to
increase their market share in market.
Process – Richemont provides goods and services at reasonable rates to create brand loyalty
among customers. It develops innovative and creative product.
Position – Richemont decide to target specific age group, gender and segment to increase market
share. It helps to increase profit by using innovative technology.
Innovation Funnel
An innovation funnel is used to describe the place in product and process development. The
innovation process includes create product or processes. The initial stage of ideas is collected
from refinery system. At the first stage it increase knowledge and information base. The ideas of
company have greater number of company to develop. A prior strategy is information is
important. It helps to gather the information includes research, competitors, existing partners,
and institutes. After generation of idea screening is required. It checks the goals and ideas are
related with each other. Resource is allocating the attractive and promising opportunity. Scare
resource helps to give greater return. Selected idea must be match with the requirement of
company. It must be relevant and strategic objectives of company. It helps to carry out the future
projects.

P4 Explain developments in frugal innovation and provide examples of how it is
used in an organisational context
Frugal innovation is the process of business to response resources to business. It includes
institutional, material, financial, innovation idea and practical solution. It design thinking product
or service level.