Travelodge Walthamstow: Innovation and Commercialisation Report

This report examines innovation and commercialization strategies within the context of Travelodge Walthamstow, a UK-based hotel chain. It explores the significance of innovation for SMEs, differentiating it from invention and highlighting the challenges faced. The report delves into the contributio...Read More

INNOVATION AND
COMMERCIALISATION

INTRODUCTION
Innovation plays a very crucial role in the overall growth and development of a small or
medium business. The market is usually dynamic in nature and is changing on a continuous
basis. So, in order to cope up with the changing market, it is essential that innovative and
effective goods and services are being launched in the market for the purpose of meeting the
overall demands of the customers over a period of time. Travelodge Walthamstow is operating in
UK and is having various hotels in different locations within the Country; London being the
main focus of the organisation (Baraldi and Waluszewski, 2011). The company is trying to grow
its business by providing high quality services to its clients. The current report will have a
detailed discussion on various business opportunities that can be grabbed by the firm through
innovative business ideas. The report will discuss the importance of innovation along with
contribution of culture as well as leadership in the growth of business. 4P's of Innovation and
Innovation Funnel will also be discussed in detail.
TASK 1
P1 Innovation and its significance as compared to invention.
Innovation can be described as a process of converting the good ideas as well as thoughts
into final products and services in an effective way. Through an innovative business idea, the
company can capture a larger market share, create reputation of the firm and at the same time
increase the revenue growth over period of time. An individual as well as entrepreneurs have to
develop and innovate in the field of business to conduct the business operations in an efficient
manner. Innovation is effective for an organisation to attain competitive edge in the market place
over period of time.
Some of the challenges faced by an SME in implementing innovation can be laid down as
follows: Lack of Funds: Usually, an SME does not have enough funds for effectively
implementing innovative ideas within the business. The company faces many problems
with regards to raising of funds and the sources available for funding of an SME is also
very limited. Higher Competition: The Competition within the business is high and thus, it is highly
difficult for an SME to capture Market through Innovative product, because already
established players do have an edge over the others.
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 Lack of R&D Facilities: An SME can not spend in the manner a big organisation can
spend on its R&D facilities. The resources owned by an SME is fairly limited as
compared to big organisations.
Invention is a different concept than innovation as it basically means adopting changes
which are effective for the future growth of the firm and which also contributes in satisfying the
needs and demands of people. Invention is the process of giving birth to something new.
Travelodge Walthamstow is considering to invent things which will benefit customer in a very
unique way. For Example, the concept of food delivery in the rooms of hotel from nearby
restaurants at the demand of guests is considered by the management of the organisation, and it
is working on implementing the same. This can lead to better management of customers and they
will feel much happier by getting served by the organisation. This has lead to better position of
the company in the sector. It is effective in making employees more creative in nature and also
create value in developing the ability to resolve organisational issues in effective manner.
Comparison between Invention and Innovation
Basis for
comparison
Innovation Invention
Meaning It refers to making some
modifications under the current
processes, products or services, so
that growth can be attained in the
longer run (Bianchi, Campodall'Orto,
Frattini and Vercesi, 2010).
It refers to giving a birth to an idea
which never existed before and thus it
is a new concept in the market which
makes the organisation or its maker
famous over period of time.
Relation It is related with adding values to the
current process and services to treat
customers well.
It is related with Inventing something
new, something that involves creation
of products and services for the first
time and something which was not
created before.
Concept In innovation, the aim is to
implement various ideas in practical
In invention, an idea is implemented
for the first time in a theoretical way.
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actions.
P2) Contribution of organisational vision, leadership, culture and teamwork in innovation as well
as commercialisation
The vision, leadership, culture as well as teamwork in an organisation is a very important
part of the growth of firm. They all shall work in tandem so as to effectively manage the business
operations of the firm over period of time. A vision Statement guides the employees in moving
forward towards the right direction in an effective manner. It expresses the will of management
and where they see firm in the longer run. Travelodge Walthamstow is a small UK based
company which is having Hotels in different locations of UK. Mangers of Travelodge
Walthamstow has consistently said in their annual addresses to stakeholders that he firm deals in
serving guests through new and innovative services within the Hotel like game zone can be
accessed by guest by paying a nominal charge for the same, and unlimited gaming can be
enjoyed, such kind of scheme is missing in some of the reputed hotels and thus gives an edge to
the firm over longer period of time. The development of new application is beneficial for growth
of Travelodge Walthamstow, as in this modern era, people mainly rely on online services. The
company is planning to launch a new application through which company will be able to capture
a higher market share over period of time.
Commercialisation: It is the process of making the products and services competent enough to
be sold within the market over longer period of time. It consist of various steps, one of the major
task is to assess the issue which there in the current processes and then make a plan to address
the same over period of time. The next step is collecting data and information, once the same is
being done the process for the development and designing of the product can be done in an
effective way. After which the product's sample will be tested in the market. It will help in
getting the information regarding quality of the products and whether the same is being liked by
people or not (Bradley, Hayter and Link, 2013). Once the response of people is received, new
product is developed finally and sent for commercialisation.
Role of Vision, leadership and Culture and teamwork
Vision: This is a crucial statement that helps in guiding the people who are working
within the firm in an effective manner. The vision statement of Travelodge Walthamstow is: “To
attain competitive advantage in the market place by offering unique services to its customers at a
reasonable price than other players in the same field”.
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Culture and Teamwork: The culture of a business organisation plays a very important
role in the overall growth as well as development of the business organisation. The culture
includes the way of living of people within the organisation, the language that they speak, the
religion they follow etc. An effective culture plays significant role in managing or handling all
business operations in appropriate manner. As a small scale organisation, the company aims to
incorporate all the cultures in an efficient manner so that better and effective growth of the
business can take place over longer period of time (Caniëls and van den Bosch, 2011).
Leadership: Employees and workers can not take the whole firm forward on their own
because business and organisational growth can only be achieved, if the leaders are not actively
involved in managing the business then there will be hard times for the business. Travelodge
have a team of people who continuously look for effectively managing and innovating the
business. The company follows participative Style of leadership. This style aims at bringing
employees in the overall decision making process of the firm over period of time. Employees
views are given priority in framing strategies for the firm and building a healthier relationship
efficiently.
The above elements, Thus can shape the growth and future of the business in the longer
run and shall be taken care of by the management of the organisation in the longer run.
TASK 2
P3 Explain 4P's of innovation and use of innovation funnel.
Innovation means reinventing certain processes or services in order to serve customers
well. Their aim is to serve the ever changing needs and desires of the customers in an effective
manner. The concept of innovation involves product, process, position as well as paradigm.
These all objectives are efficient in improvising the quality of the concerned products as well as
services. The correct statement about the elements of 4 P's of innovation are represented as
under:
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(Source: 4 P's of Innovation Mix, 2010)
Product: The products which are being offered by the company acts as the the
representative of organisation at market place. They plays a very important role in making a
brand image of organisation at marketplace. As a SME, it is highly important for Travelodge
Walthamstow to bring best possible features in various services that they offer to customers on a
wider scale. The Products as well as services of the company can be a major driver of company's
growth and thus same has to be considered in an effective manner (Cooper, Seiford and Zhu eds.,
2011).
Process: It is yet another element of innovation mix. Under this, the company makes sure
that the processes of the organisation are efficient enough that best possible products and
services are being delivered to the customers in longer run. It means ensuring the process of
organisation are up to date and are capable of delivering best possible quality of services to
guests in an effective way.
Position: This refers to positioning the firm in an impressive way at the marketplace. The
firm would want that the targeted segment of the market is well positioned and thus it is required
for Travelodge Walthamstow to develop new and innovative services and position them in
different segments so as to capture a wide area of market going forward.
Paradigm: There are various types of people in the world and hence they all carries
different types of views; some are important for the growth of the organisation while other views
are not important. it is crucial for the management of the organisation to know which views shall
be considered and which views shall be ignored. (Crossan and Apaydin, 2010).
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(Source: Importance of Commercial Funnel, 2016)
Innovation Funnel: Innovation Funnel refers to assessment of different stages that are
necessary for developing a product or process. Innovation Funnel is used by companies to
effectively plan the concept of innovation within the business and also to implement it with all
effectiveness in the longer run. If the management of company will be having proper plan in the
form of innovation funnel that which ideas needs to be considered and how the same shall be
approached for implementation within the business can enable managers to develop the business
in an efficient manner. The major purpose of innovation is basically to develop effective
products as well as services that will aid in satisfying the ever increasing needs and demands of
people in the longer run. The various elements of innovation Funnel are discussed as follows:
The Wide Mouth of the funnel: This is the initial stage of innovation funnel. it plays appropriate
role in increasing the information or knowledge of Travelodge Walthamstow. It is concerned
with collecting necessary data from regular customers in order to grow facilities for the buyer
over longer run.
Selection of Idea: It refers to selection of the best possible idea to reduce the cost of operations
or to provide better services to customers that will result in effective business growth.
Implementation of Idea: It can be regarded as the the final stage of innovation funnel. In this,
the aim of the management is to implement the idea for gaining a competitive edge over period
of time. (Dries, Pascucci, Török and Tóth, 2014).
P4 The Development in frugal innovation and its uses.
Frugal Innovation basically means innovating within the business in a cost effective
manner, it involves cost effective innovation in which the budget for R&D as well as innovation
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Facility is very low, but due to the need of market demand a specific amount needs to be
invested for innovation purpose. Frugal Innovation consists to be a essential process of reducing
various types of issues and complex situations. It also aims to reduce the overall level of cost and
improve the production process in an efficient way. It is a more conservative method of
innovation, the aim is to make sure that the non essential or those part which are not important in
for the overall growth as well as success of business firm. Frugal innovation consist with the
process through which an organisation is focused on minimizing the issues and conflicts from the
operations of firm. This concept also focuses on innovating products and services but at the same
time the cost involved is also taken care of, in order to manage the business efficiently. The
various stages of Frugal innovation can be laid down as follows:
Finding Opportunity during Adversity: It is the fundamental stage of Frugal innovation. In this
stage, the existing as well as the present issues that are being faced by the firm are effectively
looked into in order to solve them in an efficient manner. The aim of the company is to find the
opportunity in even the worse situations. it can only be possible if the management of the firm is
having a open mindset towards the circumstances and they see opportunities in even difficult
situations.
Do more with less: The resources that are available with the company shall be best utilised in
order to attain the cost advantage which will make company competitive than others.
Think an Act Flexible: Travelodge Walthamstow shall make sure that the thinking of
management is open enough and are ready to take up challenges in the longer run.
Various Examples of Frugal Innovation that are being developed by other organisations are
For example, Hotel Hilton has developed the low cost restaurant services to guests which
helped the organisation raising the market share of the company in Hotel Industry. Holiday Inn
provide tourism services to its guests which is included in the prices that they pay for booking
Rooms.
TASK 3
P5 Significance of commercial funnel & application of new product development.
Commercial Funnel basically consist of an important process by which company can
analyse the various resources that can help the firm in delivering effective services to the
customers at a larger scale. The manager as well as higher authorities plays a very important role
in setting up a effective distribution channel that will help the organisation in managing its
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business operations in an efficient manner. Commercial Funnel is a very important concept for
the businesses as a company can analyse the situation of its resources and how the same can be
applied to generate growth as well as development of business. It is quite unique as well as
effective concept for commercialising the products and services that are offered by Travelodge
Walthamstow. The Company has come up with a mobile application that enables guests to book
hotel rooms on their fingertips and even order necessary food over longer period of time.
Idea Generation: It refers to the generation of an idea that will be helpful for the organisation in
gaining competitive advantage at the market place. It is the first step of New Product
Development. Under this, The company will develop the idea for the production of new product
or services in an efficient way. The company is innovating in the field of digitisation. It is
planning to launch various kinds of mobile application platforms that will serve customers well.
Idea Screening: From various ideas that are being suggested by the team, all of them will be
screened and only one will be selected out of these, which will lead to better focus on the idea
and hence growth can be achieved over longer period of time. The feasibility and affordability is
also checked at this stage (Gray, 2011).
Concept Testing and Development: In this stage, The idea which was screened for further
devlopment will be tested on a certain groups of people and the information obtained from such
concept testing will be taken as base for further development in an effective way.
Market development & strategy: Under this, a strategy is developed as to how the service will be
marketed or how it will be developed over period of time, so that customers can be attracted and
sales can be increased and the idea can be called viable. Travelodge will then test its mobile
application in the market by promoting the same through various internet platforms and social
media.
Business and financial analysis: In this stage, The business and financial analysis of the idea is
done. Whether the new product or service will be profitable and what cost will be incurred in
effectively implementing the same (Guan and Chen, 2010).
Commercialization: It can be regarded as the last stage of New product Development and it aims
at launching the new product within the commercial market in longer run.
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P6 Building an Innovative Business Case.
The Business case of a firm is prepared by maintaining the various essential aspects of
the firm. Under the current report, Travelodge has come up with a new idea of having its own
mobile application for the purpose of reaching to a large customer base in the longer run.
The major steps of business case is determined as below:
Executive Summary: Travelodge Walthamstow is a company which is engaged in hospitality
industry. The company is having various hotels within United Kingdom and is growing as well.
the company has around 70 employees. The major purpose of Travelodge Walthamstow is to
attain higher competitive edge through adopting new and innovative ideas within the work place.
The need: Under this, the need for the innovation is considered, whether it is important to
implement the innovation within the business or not. The modification in the technology plays a
very important role and hence can have a direct influence of the sales operations of the firm in
the longer run (Joshi, Chi, Datta and Han, 2010).
Solution: A solution package shall be created for the purpose of dealing with various issues as
well as conflicts in the longer run. In Travelodge Walthamstow, solutions are created by the
management as to reaching at targeted goals as well as objectives. While launching a new mobile
application company needs to resolve the issues of customers base, through offering them
various online facilities and functions (Huang, and et. al., 2012).
Why it is Innovative: The management shall inform people that why the new innovation is
innovative enough to serve the needs and demands of people in the longer run. Usually there is
no SME in the sector which is providing online application for booking tickets effectively.
Customers Research: It basically refers to researching about the needs and demands of
customers so that necessary shape can be given to the products as well as services. Customer
research can be done by through focused group, interview as well as surveys and questionnaires.
Investment Requirement: In this stage it is necessary for Travelodge Walthamstow to ascertain
the amount of funds that will be required for the purpose of executing the tasks that will lead to
innovative outcomes in the longer run. (Ke, Fang, and et. al., 2015).
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TASK 4
P7 Tools used by firm to retain, secure and protect intellectual property.
Intellectual properties are basically the rights which an individual carry for the purpose of
protecting their invention in an effective way. Some of the elements of Intellectual property can
be laid down as follows:
Patents: It refers to the right given to an individual for their own invention. It makes an
allowance for the person who is having the right that no other person can copy or sell the
products without their permission in any way. Patents are given for a term of around 20 years.
Copy Right: This is the right dervied by an individual on any Art, dramatic or musical as well as
literary actiivities. By getting a copyright on these acts, an individual can have the authority over
it and thus nobody will be able to copy his rights in any way ( Lin, 2010). A person can have a
copyright on a product or service which can remains with the person till his lifetime plus 70
years.
Trademark: It can be regarded as a symbol or words or anything which represents an
organisation, or its product. It is something which makes the product unique from its competitors
in an effective way. The Tenure of Trademarks usually ranges from 10 to 15 years depending
upon the nature of the same. However, in general a Trademark Rest with Owner for about 10
Years. Travelodge can trademark its various products so that no competitor can copy the same.
CONCLUSION
From the above discussion, it can be said that the growth and development of a business
is necessary for effectively survive in the market place. The competition is increasing day by day
within the market and thus there is a need of innovation under current services as well as goods
so that business customers can be served well and their needs as well as demands can be
fulfilled. There is also a need to make sure that a proper plan of innovation like innovation funnel
and product development is followed so that business growth can be achieved in the longer run
without incurring extraordinary cost on innovation as well as commercialisation. In the modern
era the major focused area of each business enterprises is to satisfying the needs and wants of
people through producing more innovative and effective products. The aim of organisations shall
be to serve clients in a better manner and meet their needs and wants.
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Online
New Product Development Stages. 2017.[ONLINE]. Available through:
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