Assignment Sample BU7030 Managing Innovation

Introduction

This report focuses on a well-recognized UK-based fashion brand Burberry which has improved different innovative approaches in order to offer valuable and feasible solutions through selling its unique garments.

This report has also incorporated the Innovation Process Model offered by Tidd and Bessant with Burberry’s innovation process from project planning to execution based on the adequate and relevant strategic framework.

Overview of the chosen organization

Burberry is a prestigious British luxury fashion house that designs and distributes ready-to-garments across the globe along with unique trench coats, leather goods, accessories, and cosmetics. Burberry proclaims to follow its guiding principles from designing items to operation and selling based on four key pillars

such as product, communication, distribution, and digital (burberryplc.com, 2021). http://BU7030 Managing Innovation Assignment SampleApart from manufacturing products and operating business in the broader retail sector, Burberry’s business model is designed to create long-term sustainable values for all its stakeholders.

In terms of innovation, Burberry is well-capable of dealing with such phenomena as it is their main priority where they use gaming technology to define fashion or commercialize products digitally.

Background of two innovations implemented by the chosen organization

Trench coats

Thomas Burberry set out the invention of trench coats in 1856 as eponymous menswear where he invented ‘gabardine’ in 1879 inspired by lanolin-coated waterproof smacks. Gradually, trench coats became one of the famous fashion ea in the market offered by Burberry which is mainly made of natural fibers that foster their concerns towards controlling environmental footprints.

On the other hand, it has been also argued that Thomas Burberry invented garments that were also influenced by British heritage in order to embrace modernity (in.burberry.com, 2021).http://BU7030 Managing Innovation Assignment Sample Such classic trench coats are designed in five silhouettes such as Kingston, Westminster, Chelsea, Waterloo, and Pimlico that have been carrying forward individual identities of London locations.

Currently, Burberry’s trench coats included with signature tartan lining patterns have led this firm to generate over 2 billion GBP in annual revenue worldwide in 2019 (statista.com, 2021).http://BU7030 Managing Innovation Assignment Sample Additionally, such innovation has also punished Burberry ahead to make 2.63 billion GBP in 2020 that have been paving their success in the retail market across the globe.

In form of further modifications, Burberry trench coats have come with new different cuts and lengths with the most popular styles outside of its regular silhouettes.

It has been viewed that the Kingston features seem classic and straight cut whereas Westminster looks more relaxed and comfortable to put on. That is why Burberry invented trench coats have evolved iconic fashion statements over the last 130 years by stationing a rich and resplendent history.


BU7030 Managing Innovation

Figure 1: Global revenue generated by Burberry-invented trench coats

(Source: statista.com, 2021)

Artificial Innovation-enabled Mobile Application

Apart from fostering product innovation and increasing service lines, Burberry has reinvented itself by being proactive and an “end-to-end” digital enterprise. In 2006, Burberry started using Artificial Intelligence to generate, retrieve or store big data in order to boost sales and consolidate customer satisfaction and retention level (forbes.com, 2017). http://BU7030 Managing Innovation Assignment Sample

Their innovation has been intended to offer customers for using personalized recommendations along with online and in-store services. Apart from that, Burberry has started to fit RFID tags with their products in 500 stores across 50 countries through which communication would be evolved between shoppers and customers.

RFID tags interact with shoppers’ mobiles to provide information to consumers for making them about the product manufacturing process and recommendations about how those can be worn by them. Additionally, Burberry also uses AI-powered image recognition technology from Entrupy which is capable of recognizing the modernity of their products.

That is why in 2007, Burberry was fully set to roll out a new mobile application in order to “build a good connection with customers” over pure focus on sales (in.burberry.com, 2021).http://BU7030 Managing Innovation Assignment Sample Due to being an AI-enabled mobile application, Burberry offers customers to download and install that app on their devices for exploring curate-style stories.

However, Burberry’s consumer apps are also included with a feature called R Massage whereas their other application entails R Store for their own sales associates (forbes.com, 2019).http://BU7030 Managing Innovation Assignment Sample Both apps were designed through the aid of the enterprise division at Apple that is well-effective in leading Burberry to enable rich functions among sales staff while communicating with customers.

Incorporation of Tidd & Bessant Innovation Process Model

According to Tidd and Bessant, environmental uncertainty and complexity are the key causes that lead firms to pursue innovation management. In that case, it is the firms’ duty to configure resources based on consumers’ needs or market conditions which require greater flexibility (Ferreira et al. 2015). http://BU7030 Managing Innovation Assignment Sample

That is why those authors have also highlighted that Tidd and Bessant’s model focuses on firms’ innovative capacities which can be measured depending on their strategies, organization, learning, process and network.


BU7030 Managing Innovation

Figure 2: Managing Innovation based on Tidd and Bessant Model

(Source: Influenced by Ferreira et al. 2015)

On the other hand, Zastempowski & Przybylska (2016) argued that Tidd and Bessant prioritise 4Ps such as product, paradigm, process, and position while managing or going through an innovative phase in firms.

They believed that innovation can be considered also in terms of their degree of novelty which range from gradual to radical whereas 4PS models can be used as innovation indicators. Therefore, two concepts can be integrated together through which a diversified meaning related to the core content of the Tidd and Bessant Models can be extracted.


BU7030 Managing Innovation

Figure 3: 4Ps of Innovation

(Source: Influenced by Zastempowski & Przybylska, 2016)

Tidd & Bessant (2020) alleged that innovation pushes firms ahead to enjoy greater profits at a faster pace by not only investing in R&D but also converting knowledge to values. In such circumstances, entrepreneurship plays a vital role who takes calculated risks to bring something new to the world that can also establish an organization.

BU7030 Managing Innovation

Figure 4: Simplified Process of Innovation

(Source: Inspired by Tidd & Bessant, 2020)

Strategy

In terms of strategy, Burberry’s trench coats were totally inspired by lanolin-coated waterproof smocks worn by Hampshire shepherds. In order to execute the strategic vision of Thomas Burberry, he invented gabardine which is a breathable but waterproof twill-made coated fabric. Perhaps,

it was invented by Thomas Burberry himself but currently, the process of making trench coats with natural fibers has been implemented by Burberry’s skilled workforce. Initially, innovators adopted military tactics to the new reality as trench coats but in the modern era, Burberry employs a strong design team who is responsible for creating such artifacts with efficient project planning.

Similarly, in case of digital disruption and creating an AI-anchored mobile application, Burberry intended to foster its collaboration with Apple for consolidating its marketing efficacy.

The entire team of Burberry was included with Charlotte Cowley (director of the investor relations) who selected a few people as potential customers to determine the app’s ability in building relationships.

Based on Burberry’s innovation, the Blue Ocean Strategy model can be aligned with their innovative planning in differentiating product lines and serviceable offers to open up a new marketplace and enable consumer demand (Leavy, 2018).http://BU7030 Managing Innovation Hence, it has become easier for Burberry to create consumers’ viewpoints and preferences towards trench coats via increasing the adaptation rate of their AI-powered mobile application.

BU7030 Managing Innovation

Figure 5: Blue Ocean Strategic Model

(Source: Influenced by Leavy, 2018)

Process

Under this phase, Burberry’s trench coats are made with sustainable and renewable items such as cotton and thus, they work closely with BCI and Textile Exchange (burberryplc.com, 2021).http://BU7030 Managing Innovation Assignment Sample

Additionally, in order to develop mobile applications by making it iOS-based, Burberry works with Apple. In that case, it has been viewed that Burberry has obtained a collaborative approach to foster its innovative approaches and planning in augmented reality.

Due to being a digital-savvy company, Burberry put its efforts to merge with Apple in 2006 so that it can transform the world of luxury fashion for attracting millennial customers.

On the other hand, in 2009, Burberry introduced the “Art of The Trench Coat” digital campaign for influencing and encouraging customers to become visitors on their official pages.

Therefore, the Collaboration Model can be aligned with this stage of Tidd and Bessant’s innovation theory based on Burberry’s planning to execute their innovation and transformation through that. Ko et al. (2020) noted that the collaboration model has the ability to maximize companies’ net profits by considering their market density.

Therefore, based on strategic and effective planning, Burberry has been able to promote its innovative approaches in form of trench coats and mobile applications to enable greater customer service experiences.


BU7030 Managing Innovation

Figure 6: The Collaboration Model

(Source: Influenced by Ko et al. 2020)

Organization

Organizational innovation includes the introduction of new methodologies for managing internal and external firm relationships backed by accurate responsibilities redistribution and authentic decision-making. Ferreira et al. (2015) also determined that organizational innovation demonstrates a key sustainable resource to generate extensive competitive advantages.

This process also involves a critical risk assessment structure that signifies knowledge creation among employees for enabling their strengths to resolve problems and create synergies. In that case, Burberry has always been at risk due to its positioning in UK’s aggressive and highly-competitive marketplaces.

Burberry’s trench coats have been inspired by the uniforms of soldiers during World War II which could have created multiple controversies and imposed challenges to them for implementing direct execution in such markets.

On the other hand, AI-driven tools such as personalized mobile applications have led Burberry to face replication of its products by other firms at cheaper rates which also have increased abundant competition.

It has been criticized that the new length of Burberry trench coats is not worth customers’ money that has turned customers back from adopting such colorful innovations (gentlemansgazette.com, 2017). http://BU7030 Managing Innovation Assignment SampleEquivalently, Burberry’s mobile application is unable to provide online service to those customers who are unaware of such features and the functioning of those tools.

Therefore, Burberry has offered customers the option of purchasing double-breasted versions of its trench coats instead of selling only one segment.

Moreover, in order to reduce risks from its digital innovation, Burberry uses gaming technology to put intricate details in garment designs that are quite difficult to substitute for others (burberryplc.com, 2020).http://BU7030 Managing Innovation Assignment Sample

Therefore, it has been noted that Burberry has already adopted backup plans to underpin the execution of their innovations on a long-term basis in certain marketplaces. In such circumstances, Taylor’s Scientific Management Theory can be obtained by Burberry to develop science, harmony, cooperation, and improve efficacy and prosperity across its managerial workplaces.

Chen & Hitt (2019) stated that scientific knowledge for management aids individuals in brand to solve complex problems and integrate with academic fragmentation. In the case of Burberry, they have also evolved the advantages of gaming software to implicate designs that promote cognition across teams to deal with key business issues.


BU7030 Managing Innovation
Figure 7: Scientific Management Theory

(Source: Influenced by Chen & Hitt, 2019)

Learning

It has been noted that innovation requires individuals to acquire and convey knowledge depending on organizational capabilities of batting such employees. In the case of Burberry’s trench coat innovation, it has not only aided this brand to generate abundant revenues but also embed modernity and British culture into the clothing industry.

Additionally, the adoption of AI-powered tools has developed organizational cultures of Burberry effectively and that is why this brand has become able to deal with its risk severity. Trench coats have to influenced Burberry’s workforce to design such garments accurately so that customers’ Burberry acquisition can be increased.

In this same way, AI-powered mobile application has enabled efficiency across Burberry’s employment to drive sales and business performance both by attaining extensive tech skills. Based on these phenomena, Burberry innovation has fostered experience and knowledge among its team members followed by Information Processing theory.

According to Tangen & Borders (2017), IPT provides an authentic and strategic structure to explain how supervises acquire, process, store, and retrieve knowledge while diagnosing and conceptualizing real-time innovations. Hence, it has become beneficial for Burberry to attain such employees who have integrated design-associated knowledge while manufacturing trench coats and advertising them through tech-driven tools for commercializing in retail segments.


BU7030 Managing Innovation

Figure 8: The Information Processing Theory

(Source: Inspired by Tangen & Borders, 2017)

Networking

From resource-based viewpoints, inter-firm collaboration is required as they are not self-sufficient, and thus, networking is important for them to channel innovation with its practical users. Burberry, they have developed two types of innovation such as technical and nontechnical including trench coats and AI-driven mobile applications consecutively.

Therefore, both of Burberry’s innovations pursue complementary relationships where both aspects are being fostered by this brand to attain a good number of consumers. On the other hand, the influence of the market also paved their innovation process by compelling executives to put their best efforts into making the brand competitive.

Burberry invented trench coats with Gabardine which is a revolutionary fabric with lightweight and breathable features in it (in.burberry.com, 2021). http://BU7030 Managing Innovation Assignment SampleHence, Burberry’s intention was to provide the best services by allowing customers to wear comfortable, free-flow but long attire.

Burberry developed their mobile app to communicate with customers and other stakeholders directly for creating not only a supply chain network but also to surge their innovative approaches with extensive adoption rates. In such circumstances, Business Network Theory can be aligned where Burberry focused on three distinctive levels while executing their innovation such as actors’ attributes, level of dyadic and multilateral inter-firm relationships.

Dee et al. (2017) explained that network theory integrates across sociological systems that provide convenient pathways to face challenges. Hence, the acquisition of network theory aided Burberry to consolidate its position in the market and capture adequate shares by executing its expected innovative approaches.

In order to manufacture trench coats and promote it via mobile applications supported Burberry to generate leads in the market, recruit people and build effective managerial practices has enabled a network across current society.

BU7030 Managing Innovation

Figure 9: Business Network Approaches

(Source: Influenced by Dee et al. 2017)

Internal resources considered by the chosen organization to foster innovation

Burberry itself is an iconic fashion brand that has supported them to promote innovation across the globe with 156 years of history. Apart from that, the exclusive design and development team of Burberry can be recognized as its key and valuable asset.

Through the aid of its workforce, Burberry is still producing traditional and ready-to-wear trench coats and advertises it to increase brand equity. As opined by Olteanu (2020), Burberry masterfully capitalizes on consumers’ emotional attachments socially and culturally that have helped this brand to make technical changes since its establishment to the present day.

Hence, it can be stated that Burberry’s technical and non-technical innovations have been implemented successfully by their pre-existing and prolonged presence in market with strategic planning to share innovative knowledge with consumers.

Integration of innovation in organizational culture

Burberry’s shared values are shared goals, principles, and standards which are accountable, diversified, quality-oriented, passionate, integrity, collaborate,ve and leadership. In terms of offering extensive career opportunities and employing people, Burberry’s culture is steeped with innovation, craftsmanship, and a distinctly British style (burberrycareers.com, 2021). http://BU7030 Managing Innovation Assignment Sample

Such quadrants have not only managed Burberry to put their best efforts towards fostering innovation across management but also make it more customer-centric. Hence, it has become useful for Burberry to iterate with its innovation and managerial practices to determine the most effective way for solving consumers’ issues. Burberry’s trench coats and AI-powered tools are associated to develop their satisfaction level towards this brand as well as ensure brand efficacy in the long run.

Conclusion

Innovation is a significant tool obtained by firms to accelerate their profitable growth in the market through which they can sustain in such positions for prolonged periods.

Therefore, it is required to implement or develop innovations across workplaces that would not only change business models but also promote more effectiveness among team roles. However, this report concludes that innovation and managing such approaches have led Burberry to encounter unprecedented growth back in its history till the modern era.

Reference List

burberrycareers.com, (2021). OUR CULTURE. Retrieved on: 23rd February 2021. From: https://burberrycareers.com/content/Our-Culture/?locale=en_GB

burberryplc.com, (2020). BURBERRY USES GAMING TECHNOLOGY TO STREAMLINE THE FASHION DESIGN PROCESS. Retrieved on: 23rd February 2021. From: https://www.burberryplc.com/en/news/news/corporate/2020/burberry-uses_gaming-technology-to-streamlinefashiondesignproces.html

burberryplc.com, (2021). COTTON. Retrieved on: 23rd February, 2021. From: https://www.burberryplc.com/content/burberry/corporate/en/responsibility/focus-areas/product/cotton.html

burberryplc.com, (2021). OUR PURPOSE. Retrieved on: 21st February, 2021. From: https://www.burberryplc.com/en/company/our-purpose.html

Chen, V. Z., & Hitt, M. A. (2019). Knowledge synthesis for scientific management: practical integration for complexity versus scientific fragmentation for simplicity. Journal of Management Inquiry, 1056492619862051. Retrieved on: 23rd February, 2021. From: https://www.researchgate.net/profile/Victor_Z_Chen/publication/333827864_Knowledge_Synthesis_for_Scientific_Management_Practical_Integration_for_Complexity_Versus_Scientific_Fragmentation_for_Simplicity/links/5d24b924299bf1547ca753ce/Knowledge-Synthesis-for-Scientific-Management-Practical-Integration-for-Complexity-Versus-Scientific-Fragmentation-for-Simplicity.pdf

Dee, L. E., Allesina, S., Bonn, A., Eklöf, A., Gaines, S. D., Hines, J., … & Thompson, R. M. (2017). Operationalizing network theory for ecosystem service assessments. Trends in ecology & evolution32(2), 118-130. Retrieved on: 23rd February, 2021. From: https://www.researchgate.net/profile/Ross_Thompson/publication/310279473_Operationalizing_Network_Theory_for_Ecosystem_Service_Assessments/links/5ac5ad42a6fdcc051daf3189/Operationalizing-Network-Theory-for-Ecosystem-Service-Assessments.pdf

Dee, L. E., Allesina, S., Bonn, A., Eklöf, A., Gaines, S. D., Hines, J., … & Thompson, R. M. (2017). Operationalizing network theory for ecosystem service assessments. Trends in ecology & evolution32(2), 118-130. Retrieved on: 23rd February, 2021. From: https://www.researchgate.net/profile/Ross_Thompson/publication/310279473_Operationalizing_Network_Theory_for_Ecosystem_Service_Assessments/links/5ac5ad42a6fdcc051daf3189/Operationalizing-Network-Theory-for-Ecosystem-Service-Assessments.pdf

Ferreira, J. J., Fernandes, C. I., Alves, H., & Raposo, M. L. (2015). Drivers of innovation strategies: Testing the Tidd and Bessant (2009) model. Journal of Business Research68(7), 1395-1403. Retrieved on: 22nd February, 2021. From: https://www.academia.edu/download/46878307/Drivers_of_innovation_strategies_Testing20160629-20142-1c13z35.pdf

forbes.com, (2017). The Amazing Ways Burberry Is Using Artificial Intelligence And Big Data To Drive Success. Retrieved on: 21st February, 2021. From: https://www.forbes.com/sites/bernardmarr/2017/09/25/the-amazing-ways-burberry-is-using-artificial-intelligence-and-big-data-to-drive-success/

forbes.com, (2019). Apple And Burberry Team Up To Create Dazzling iOS Apps. Retrieved on: 21st February, 2021. From: https://www.forbes.com/sites/davidphelan/2019/09/03/apple-and-burberry-team-up-to-create-dazzling-ios-apps/

gentlemansgazette.com, (2017). Is It Worth It? The Burberry Trench Coat. Retrieved on: 23rd February, 2021. From: https://www.gentlemansgazette.com/burberry-trench-coat/

in.burberry.com, (2021). Burberry App. Retrieved on: 21st February, 2021. From: https://in.burberry.com/the-burberry-app/

in.burberry.com, (2021). THE BURBERRY TRENCH COAT. Retrieved on: 21st February, 2021. From: https://in.burberry.com/the-trench-coat/

Ko, S. Y., Sari, R. P., Makhmudov, M., & Ko, C. S. (2020). Collaboration Model for Service Clustering in Last-Mile Delivery. Sustainability12(14), 5844. Retrieved on: 23rd February, 2021. From: https://www.mdpi.com/2071-1050/12/14/5844/pdf

Leavy, B. (2018). Value innovation and how to successfully incubate “blue ocean” initiatives. Strategy & Leadership. Retrieved on: 23rd February, 2021. From: https://pdfs.semanticscholar.org/7aef/4dd172417afd8e8241540bc3c642095b9df5.pdf

Olteanu, L. (2020). Rebranding strategies and their boomerang effect—The curious case of Burberry. The Journal of World Intellectual Property23(5-6), 777-797. Retrieved on: 23rd February, 2021. From: https://onlinelibrary.wiley.com/doi/pdf/10.1111/jwip.12173

statista.com, (2021). Burberry – Statistics & Facts. Retrieved on: 21st February, 2021. From: https://www.statista.com/topics/3458/burberry/

Tangen, J. L., & Borders, L. D. (2017). Applying information processing theory to supervision: An initial exploration. Counselor Education and Supervision56(2), 98-111. Retrieved on: 23rd February, 2021. From: https://www.researchgate.net/profile/L_Borders/publication/317829676_Applying_Information_Processing_Theory_to_Supervision_An_Initial_Exploration/links/5b93b67d299bf14739278a6a/Applying-Information-Processing-Theory-to-Supervision-An-Initial-Exploration.pdf

Tidd, J., & Bessant, J. R. (2020). Managing innovation: integrating technological, market and organizational change. John Wiley & Sons. Retrieved on: 22nd February, 2021. From: http://erl.ucc.edu.gh:8080/xmlui/bitstream/handle/123456789/3001/%5BJoe_Tidd%2C_John_Bessant%2C_Keith_Pavitt%5D_Managing_In%28BookZZ.org%29.pdf?sequence=1&isAllowed=y

Zastempowski, M., & Przybylska, N. (2016). Cooperation in creating innovation in Polish small and medium-sized enterprises in the light of empirical studies. Journal of Competitiveness8(2). Retrieved on: 22nd February, 2021. From: https://www.cjournal.cz/files/217.pdf

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