Organisational Innovation: A Case Study of Tropic Skincare

Desklib provides past papers and solved assignments for students. This case study analyzes Tropic Skincare's innovative business strategies.

ORGANISATIONAL INNOVATION: A CASE STUDY OF
TROPIC SKINCARE
Name of the Student:
Name of the University:
Authors Note:

ORGANISATIONAL INNOVATION: A CASE STUDY OF TROPIC SKINCARE
Table of Contents
Introduction......................................................................................................................................4
LO1: Context for Innovation and Difference between Innovation and Invention...........................4
P1: Invention and its Importance in Organisation in Comparison to Invention..........................4
Importance of Innovation........................................................................................................4
Sources of Innovation..............................................................................................................5
Difference between Innovation and Invention........................................................................6
Importance of Innovation in Relation to Invention.................................................................7
P2: Shaping Innovation and Commercialisation in Tropic Skincare...........................................7
Organisational Elements Shaping Innovation and Commercialisation...................................7
Developing an Environment and Culture of Innovation..........................................................9
LO2: Different Types of Innovation................................................................................................9
P3: 4Ps of Innovation and Innovation Funnel to Shape Innovative Ideas...................................9
4Ps of Innovation.....................................................................................................................9
Innovation funnel...................................................................................................................12
P4: Developments in Frugal Innovation....................................................................................14
Frugal Innovation...................................................................................................................14
LO3: The Process Required to Commercialise Innovation...........................................................16
P5: Importance of Commercial Funnel and Application of New Product Development in
Tropic Skincare..........................................................................................................................16
2

ORGANISATIONAL INNOVATION: A CASE STUDY OF TROPIC SKINCARE
Commercial Funnel in Tropic Skincare.................................................................................16
New Product Development (NPD) in Tropic Skincare.........................................................17
P6: Innovation Business Case for the Organisation..................................................................19
LO4: Methods for Protecting Ideas...............................................................................................22
P7: Tools to Develop, Retain and Protect Knowledge and Intellectual Property......................22
Key Intellectual Property Tools.............................................................................................22
The role of Branding in protecting Intellectual Property.......................................................25
Conclusion.....................................................................................................................................25
References......................................................................................................................................27
3

ORGANISATIONAL INNOVATION: A CASE STUDY OF TROPIC SKINCARE
Introduction
In the modern era of globalisation, organisations have been able to develop themselves as well as
expand into various other countries to gain a customer base as well as generate high revenue and
profitability for themselves. However, due to this, organisations have been faced with various
issues including stiff competition from rivals and as such, it has affected their sales and revenue
generation. In order to combat or tackle this situation, business organisations have innovated
various new products and services in order to gain a competitive advantage over others. Tropic
Skincare is a British Organisation, which focuses on manufacturing skincare and cosmetic
products using completely organic elements without any chemical compounds added in them
(Tropic Skincare., 2019). This has allowed them to become a critically acclaimed cosmetics
company in the UK and has established a firm dominance in the market. The following study
critically analyses the concept of innovation in the context of Tropic Skincare and evaluates the
way through which the Organisation would be able to move forward with developing new
products in the market. The study uses various key theories and models to identify innovation in
Tropic Skincare as well as compare innovation and invention.
LO1: Context for Innovation and Difference between Innovation and Invention
P1: Invention and its Importance in Organisation in Comparison to Invention
Importance of Innovation
From the research works of Dougherty (2017), the innovation in an Organisation is a process
through which the Organisation is able to ideate a product or service which would be beneficial
for the Organisation. The core idea of innovation is to ideate a product or service which would
4

ORGANISATIONAL INNOVATION: A CASE STUDY OF TROPIC SKINCARE
not only be unique, but it would also be able to solve the problems and issues faced by the
consumers in the market or solve their needs and requirements. In the context of Tropic
Skincare, the company has innovated a face cream, which would be able to act as a moisturizer,
cleanser, and toner in one product and would help in the growth of revenue generation and
profitability of the company.
Sources of Innovation
There are various sources of innovation in the context of an Organisation. These sources are:
 Unexpected: In this source, innovation can occur in an unexpected manner without any
planning. An Organisation can unexpectedly innovate a product or service without having
to plan which can benefit them greatly.
 Incongruity: In this source, innovation can occur in an attempt to solve the current issues
or incongruity within the Organisation. This type of innovation is common and is used in
many organisations in order to innovate products or services (Serrat, 2017).
 Market Structure: Innovation from this source are born from an existing market
structure where the market structure provides the organisation with opportunities to
innovate a product or service for their benefits.
 Necessity: Necessity is the source through which innovation is born when there is a need
to do or achieve something. In the context of an organisation, this type of innovation is
common and is used for the innovation of a product or service required by the consumers.
 Demographics: In this source, the lifestyles of the individuals are able to give birth to
innovation. In the context of an organisation, this type of innovation is used to meet the
changing lifestyles of the consumers (Schweisfurth, 2017).
5

ORGANISATIONAL INNOVATION: A CASE STUDY OF TROPIC SKINCARE
 Changing Perceptions: Changing perceptions is another source, which can pave the way
for innovation. In the context of an organisation, this type of innovation is used to
develop a product or service, which is a result of the changing perceptions of the
consumers about an already existing product or service in the market.
 New Knowledge: New knowledge is also a source for innovation through which an
organisation is able to utilize the new knowledge that has been released in order to ideate
products and services for their own benefits (West and Bogers, 2017).
Difference between Innovation and Invention
There are key differences between innovation and invention, which sets them apart from each
other in the context of an organisation.
Invention Innovation
The process of invention is the occurrence of
an idea for a product or service that has never
made before by anyone.
The process of innovation refers to the
implementation of the idea for the product or
service for the very first time.
The purpose of invention is the creation of a
new product or service.
The purpose of innovation is to ideate a unique
solution for an existing problem or to add
value to an already existing product or service.
The concept of invention is the creation of an
original idea, which would be working or
functioning (Powell, 2017).
The concept of innovation is the practical
implementation of a completely and newly
developed idea for the benefit of an individual.
Invention usually requires the integration of
various scientific as well as creative skills.
Innovation usually requires the integration of
marketing and technical, as well as strategic
6

ORGANISATIONAL INNOVATION: A CASE STUDY OF TROPIC SKINCARE
skills.
Invention usually occurs when an idea is
formed regardless of its benefits of use or
practicality.
Innovation is usually needed in the
development of a product to benefit others or
improve an existing product (Meissner, Polt,
and Vonortas, 2017).
Invention is usually done for a single product
or service and consists of little to no research
and development.
Innovation is usually done for the combination
of different products and processes which are
spread across the Organisation.
Table 1: Difference between Invention and Innovation
(Source: Created by Author)
Importance of Innovation in Relation to Invention
Innovation is extremely important in relation to invention. This is because while invention is
used to develop a product or service with no regards to the benefits, advantages, or deliverables,
innovation is used for the creation of a product or service, which would have benefits or solve an
existing issue or problem (Schmitz et al., 2017). In the context of Tropic Skincare, the
organisation has been able to innovate a product rather than invent which is a face cream and is
able to act as a moisturizer, cleanser, and toner in one product.
7

ORGANISATIONAL INNOVATION: A CASE STUDY OF TROPIC SKINCARE
P2: Shaping Innovation and Commercialisation in Tropic Skincare
Organisational Elements Shaping Innovation and Commercialisation
In any organisation, the importance of vision, leadership, culture, and teamwork are immense for
shaping innovation as well as commercialisation. In the context of Tropic Skincare, the
importance of these elements is:
 Organisational Vision: The vision of the Organisation is very important in shaping the
process of innovation within. In Tropic Skincare, the organisational vision is to ensure
that the customers use a product that is not only organic but also all in one compact
skincare. Through this, the commercialisation of the new 3 in 1 face cream product is
possible (Wieczorek-Szymańska, 2017).
 Organisational Leadership: Without the strong impact of the leader, an Organisation is
unable to innovate any product or service. However, in the context of Tropic Skincare,
the leader of the organisation has innovated the organic products, which has helped in the
creation of various new products, which has resulted in commercialisation (Macdonald,
Burke, and Stewart, 2017).
 Organisational Culture: Organisational culture is a key element in an Organisation
without which an Organisation is unable to cultivate the mindset required for innovation
and commercialisation. In Tropic Skincare, the organisational culture has been able to
create an environment, which has caused the innovation and commercialisation of various
organic skincare products for the customers.
 Organisational Teamwork: Organisational teamwork is an important key element
without which an organisation would not be able to accomplish its goals and objectives.
In the context of Tropic Skincare, the organisational teamwork has allowed the
8

ORGANISATIONAL INNOVATION: A CASE STUDY OF TROPIC SKINCARE
employees to work and coordinate together (Samuel et al., 2017). This has allowed them
to innovate and develop organic skincare products, which are not only beneficial for the
consumers but has also contributed to the revenue and profitability generation.
Developing an Environment and Culture of Innovation
Fostering and developing an environment and culture of innovation is beneficial for the context
of an organisation for their benefits and success in the market. From the research works of Aksoy
(2017), it has been found that innovation is a very critical and crucial component of an
organisation, which has allowed them to develop new products as well as add value to their
existing products. This has not only helped them generate revenues for themselves, but it has
also helped them to solve many problems and issues faced by the consumers. An organisation
with an environment and culture of innovation is highly beneficial for not only the organisation,
but also for the members too. This allows them to innovate ideas easily, which would be of value
for the organisation as well as for the consumers (Vey et al., 2017). Due to the developed
environment and culture of innovation in Tropic Skincare, the organisation is able to ideate a
face cream and which is able to act as a moisturizer, cleanser, and toner in one product. This
product is a result of the innovation within the company that would not only solve the issues of
skincare for the female consumers, but it would also help to generate revenues and profitability
of the company.
9

ORGANISATIONAL INNOVATION: A CASE STUDY OF TROPIC SKINCARE
LO2: Different Types of Innovation
P3: 4Ps of Innovation and Innovation Funnel to Shape Innovative Ideas
4Ps of Innovation
4 P’s of innovation is one most essential element that is needed to effectively enhance the
business process of an organisation in a prominent manner. The 4 P’s of innovation includes
product, process, position, and paradigm. Moreover, these are the essential elements on which
innovation and sales of a particular product are dependent.
Product- The most essential element for innovation is the designing of the products. Effective
market research should be done so that the exact requirement of the consumers should be known
to product manufacturers. In the case of Tropic Skincare, product face cream may be designed in
an efficient manner that may work as a cleanser, toner and a moisturizer in a prominent manner.
This kind of product innovation should help the Tropic Skincare to enhance their sales by almost
12%. According to Godenhjelm and Johanson, (2018), it is stated that product is the main
component of innovation on which the holistic process of innovation is very much dependent.
Process- Process of product manufacturing is another essential component of the innovation
mix. The process should include the cost-benefit analysis during the manufacturing process.
Optimization of resource use may be done so that the innovation may be performed and the
product may be sold at a marginal cost. Moreover, Tropic Skincare may involve total organic
ingredients for manufacturing the face cream in an effective manner (Ogenga, 2018). The
cleansing, toning, and moisture are 3 in one cream that should be mainly prepared by
organisation ingredients like vegan oil, aloe-vera juice, and rosehip oil. It should help to establish
10

ORGANISATIONAL INNOVATION: A CASE STUDY OF TROPIC SKINCARE
a competitive advantage of Tropic Skincare over the other big companies present in the cosmetic
industry.
Position- Positioning is one of the most important and essential parameters of the innovation mix
that helps in the product positioning in the market in an efficient manner. However, According to
Cropley and Oppert (2018), there is a basic difference between promotional and positioning
activities. The positioning is related to the consumer's perception of the values and brand image
of the company. In this world of globalisation, positioning is one of the essential factors. It is
observed that if the face cream is launched in the market Tropic Skincare may enhance their
position in the UK market. Moreover, the product should be prepared by total organic materials
that should enhance the positive perception of the consumers towards the product. According to
statistics, if the positioning of the product is done properly it may help to enhance sales rate by
almost 15 %.
Paradigm
Paradigm is related to a radical change that may be performed during the process of innovation
in an effective and efficient manner. The radical change may be related to the change in
customer’s service or product design that may revolutionize the aspects of the current business
operation of the organisation in an efficient manner (Van Looy, A., 2018). In the case of Tropic
Skincare, the face cream would include the function of cleaner, toning and moisturizer may be a
paradigm shift product as it replaces three products in the market. It may focus on working-class
women, as it is easy to carry one product at a time for compared to three different products. If the
cost of the product is high, compared to the market rate it may capture the market due to the
exclusive properties.
11

ORGANISATIONAL INNOVATION: A CASE STUDY OF TROPIC SKINCARE
Figure 1: 4 P’s of Innovation
(Source: Ogenga, 2018)
Innovation funnel
Figure 2: Innovation Funnel
(Source: Del Vecchio et al., 2018)
12