Innovation and Commercialization Strategies for Tusting Handbags

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INNOVATION AND
COMMERCIALIZATION
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Table of Contents
INTRODUCTION............................................................................................................................. 4
OVERVIEW..................................................................................................................................... 5
LO1.................................................................................................................................................6
P1................................................................................................................................................... 6
P2............................................................................................................................................... 8
M1............................................................................................................................................... 10
LO2............................................................................................................................................... 12
P3 M2.......................................................................................................................................12
P4 M3.......................................................................................................................................15
LO3............................................................................................................................................... 17
P5............................................................................................................................................. 17
P6 P4........................................................................................................................................ 20
LO4............................................................................................................................................... 21
P7 M5.......................................................................................................................................21
CONCLUSION............................................................................................................................... 22
REFERENCES.................................................................................................................................23
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INTRODUCTION
Innovation and commercialization have become the key to the success of every organization
because in this cut-throat competition it is very important for every organization to do
continuous changes and advancement in their products and services. The assignment discusses
the innovation and invention of its importance in the competitive world. The assignment will
focus on various approaches and methods of innovation along with the 4ps of innovation on
the basis of which the innovation and invention are done in the organization (Murphy, 2016).
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OVERVIEW
The organization which is selected for this assignment is Tusting Handmade handbags in the UK.
This company makes luxury leather bags for the customer. The company is situated in
Buckinghamshire, UK since 1875 and the supply is done in Asia and Middle-East. There are
many craftsmen and women who are working with Tusting from generations and giving their
best in crafting these luxurious brands. The maximum of the customers of Tusting is the elite
class people to whom Tusting has given handbags and footwear also (Tusting, 2019).
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LO1
P1
Innovation: Innovation refers to the process where there is an additional value is added to the
product or services of the company. The invention is the process of creativity and idea with the
help of which continuous improvement is done in the production line and products of the
company (Murphy, 2016).
Invention: The process of creating the new products or services by the company is called an
invention. The ideas and the concept which is used in the invention is never used by any other
company and they are being generated by for the very first time by the company (Wagner,
2016).
Difference between invention and innovation
INVENTION INNOVATION
It refers to the creation of a new product or
brand
It refers to the process of making changes to
the existing products and services by
application of new ideas.
Skills required for the invention is the scientific
skills
Skills required for innovation in marketing,
technical and strategic skills.
The invention takes place when the new ideas
strike to an individual
Innovation takes place when there is a need to
improve or change the product because of the
high competition in the market.
It creates a new product in the world It adds value to the existing product
Importance of innovation
 Innovation is important as it provides creativity and development in the organization.
Testing has become successful and elite product just because of the continuous
creativity and development in the manufacturing process and in the designs of the bags.
 Innovation imparts continuous improvement in the organization and hence satisfying
the customer with effective products with good quality and affordable prices.
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 Innovation helps in building the brand of the company which will help in retaining the
customer and increase the customer base also. It helps in giving sustainability to the
organization and creates goodwill in the market.
 Innovation helps the organization to survive in the tough cut –throat competition as the
company responds towards the trend and fashion which is on the hike in the market and
accordingly designs innovatively and offer the luxury bags to the customers.
 It creates a unique selling point in the market at a distinctive level where the customer
wants to use the product which is high in quality and unique in the design (Murphy,
2016).
Therefore innovation is the key to the success of every organization as it provides all the
benefits to the organization in all the aspect.
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P2
Every organization has some vision and culture within which the organization works. The vision
of Tusting reflects the long term objectives and strategies. The leadership, culture and vision in
the organization play a vital role and every organization survive in the market with the help of
the innovation only (Pitcher, 2018).
VISION:
The vision of the organization is the key or the goal on which the organization work hard to
achieve the goals of the organization. The vision of the organization is set in lieu of the
customer needs and the market trend in order to attain the long-term goals The vision or the
long term objective of Tusting is to serve with the highest quality and unique designs
LEADERSHIP:
Leadership is the process of leading the organizational team to the fulfilment of the
organizational goal by applying various leadership styles (Boger et al., 2017). The leaders set the
goal in front of the subordinate and guide them to carry the work in the organization. Leaders
in Tusting lead the team to work hard so that they can cater to the best-handcrafted bags to the
customer by maintaining parity between the brand value and the quality of the product.
CULTURE:
The culture of the organization plays an important role in the manufacturing of the products in
the organization. If the culture if the organization is well inculcated and developed then it helps
the employees to work collectively in an effective manner. Tusting has many employees who
are working from generation and they have become family to the company and hence they
know what is the status of the company and to what extent they have to be effective regarding
the quality of the product.
TEAMWORK:
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Teamwork is the main key to the healthy and productive environment of the company. If any
company want to survive through the competition and lead in the market then it has to be very
strong at the teamwork. The strong team represents the effective working system of the
company. Teams in Tusting work in harmony with each other playing their respective roles
effectively and attain the best quality and design of the bags.
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M1
[Figure 1: Sources of innovation]
[Source:Drucker, 2019]
There are various sources of innovation which can be clicked anytime anywhere in the mind of
an individual. Peter Drucker has given the 7 sources of innovation through which an individual
gets the idea or inspiration to do innovation which are as follows:
The Unexpected: The business world is full of surprises and uncertainty there is no assurance of
the success and the unexpected losses. Tusting has established itself as a successful brand in
the UK but to survive in competition it has always made some innovation in its designs to have
a pace with the market trend.
Incongruities: This refers to the lag of the information between the company and the customer
about the product. It happens that the company launches the product without doing much
research and development study and it leads to a downfall of the company which affects the
profit-making of the company. This phase of incongruity gives an idea to the individual to do
something unique by thinking out of the box which will help in giving distinctive feature to the
company and its product (Drucker, 2018.).
Process Need: The process need is more task-oriented and helps the company to identify
where the company can identify the weak points and can develop some measures and steps
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where the company can make a room or innovative ideas. This source helps the company to
identify the loop holes and leads to the inspiration and development of innovative ideas.
Industry and market Structure change: Whenever there is a change in the industry and market
trend it becomes a challenge for the company to meet the requirements of the customer and
maintain the profit generation and customer base in the competitive world. the leaders of the
company formulate new strategy overnight and cope up with the change in the market and this
strategy is nothing but innovation.
Demographics: The demographic changes in the market to a great extent affect the change in
the demand and preference of the products. The demographic factors like, age group of the
customers, gender, educational level, employment rate etc. directly affects the company.
Tusting is making bags and the change in demographics will directly affect the company as the
taste, buying capacity, etc .will be changed (Drucker, 2018.)
Changes in Perception: The change in the preference and perception of the company among
the customer also directly affects the production of the company. This also gives a base for the
research and study to find the reason behind the change in the perception hence lead to
changes in the product or the manufacturing process which is nothing but innovation.
New knowledge: The emergence of new technology or new knowledge also affects the
company. If the company is not upgraded with the new knowledge and the technology then it
will affect the demand, quality and brand value of the company. This base of new knowledge
also gives new ideas for the innovation to the entrepreneur
These are the 7 sources of innovation through which the company can get inspiration for the
innovation of the product and the procedure.
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LO2
P3 M2
The 4Pa of innovation helps the business to identify the scope where the business can innovate
and grow itself. The following are the 4ps of innovation:
Product: This is related to the innovation which can be done in the product. It gives a base to
Tusting for thinking and creativity that how the variation can be made in the bags made by it. It
can bring innovation by trying some more pastel shades, more designs and sizes of the bags
This innovation should be unique enough which will differentiate the product from the other
big brands in the market (Jirotka et al., 2016).
Process: It is not always necessary to make changes only in the process but it is important to
make changes in the process of the product making. Tusting is manufacturing handmade crafts
and minimal use of machines is done in its manufacturing process to maintain its quality,
essence and brand value. But there are still so many areas where the Tusting can change its
process which will help in producing enhanced bags.
People: It deals with the people and addressing the problem of the people working. Tusting is
working together as a family and it takes care of all the problems which the employees suffer.
The employees of Tusting seek differently for the solution of the problem which is faced in the
organization related to their work. This process of addressing problem helps in innovation
(Jirotka et al., 2016)
Press: This refers to the people, culture, climate and environment that reflects the relation
with the employees who are working in Tusting. This also plays an important role in the
innovation process. There should be some subtle variation in the culture and environment of
the organization so that the employees a can have interaction with each other and a harmony
can be maintained.
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Innovation Funnel:
The innovation funnel is the funnel which helps in deciding the best way for the innovation in
the product. The innovation funnel has various steps that are included in the making of the
innovation funnel:
Investigation (wide mouth): The innovation funnel is used for the innovation of the business.
The first step is the investigation which has a wide mouth in the funnel where the all the ideas
and creativity is being listed along with all the factors which affect to it are gathered and are
evaluated in the first phase of the funnel. Tusting is leading brand in the world of accessories
and there are many competitors also which creates a need for continuous improvement, for
this Tusting should do a basic research and development about the trending style and customer
preference of the customer and accordingly should listed all the possible ideas of innovation
(Yun,2017)
Development (middle of the funnel): This is the second phase of the innovation funnel where
all the ideas, creativity and the factors affecting it are being filtered and the feasible and
applicable ideas are being selected. These ideas of innovation which are selected in this phase
are those which can be beneficial to the business in any manner. This gives a graphic structure
and screening of the alternative development options and enables to combine various sunset
for the product concept. In the second phase, Tusting deeply evaluates the ideas and its
viability and also develops the alternatives for the ideas which can be best applied in Tusting for
best production of bags with its unique designs.
Shipping products (narrow Mouth): This is the last phase of the innovation funnel where the
most beneficial and feasible concepts and idea for the product are being selected. The
evaluation of the best option is done among the filtered alternatives which are selected in the
second phase of the funnel. Then the final idea is selected for the innovation of the product.
The third phase enables Tusting to select the best alternative which is combined with the
various subset to produce the best quality of bags with unique designs, size and colours which
are not easily available In the market by the competitor (Yun,2017).
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