Innovation and Creativity
Students Name: Ranu Begum 1710178
Executive Summary
Innovation and creativity are essential factors for business development. This report aims at providing a clear analysis of concepts, models, and processes in Innovation and creativity. Connectively, this report has analysed the Saree shop structure in connection to Innovation and creativity and the various challenges it may experience. Therefore, this report has provided a proper and detailed strategic analysis that a Saree store can use to improve their operations. The analysis is drawn from the Innovative and creative ideas upon which the fashion industry or businesses can use to establish a stronger position in a high-street clothing market.
Looking broadly in the findings in this report, this report has provided best innovative methods and process which will enable a newly introduced mainstream clothing business to beat its competitors in the market, and become a market leader. This will be achieved by launching a home-based business service. That is, carrying out sales activities from door to door. This idea will be supported by social media tools to market services and contacts. Similarly, various recommendations have been outlined to allow the business to gain market control. Some of the recommendations are keeping up to date with social media, business websites, fashion magazines, and handout flyers in analysing fashion trends.
The purpose of this report is to analyse innovative and creative ideas that clothing business can implement to improve on its sales and to facilitate the home-based business services. Creative and innovative ideas are drawn from the models of innovation. Innovation models have helped in discovering various ways for improving the value of the business, increasing returns, reducing competitive disruptions, and facilitating timely marketing skills. According to Bratnicka-Myśliwiec (2015 pg78), businesses need innovation models for growth and meeting the business conceptual framework which involves the identification and changing of the business ideas to generate sustainable business growth.
The key recommendations according to this report are is keeping up to date with social media to analyse the new marketing trends and also to boost home-based business services. Another recommendation is researching on the latest fashion trends based on the needs of customers. Also, Saree clothing shop should make their customers feel valued and wanted. This is by communicating with the customers regularly to inform them of the available clothing brands and fashion designs.
TABLE OF CONTENTS
Executive Summary…………………………………………..……….2
1.0 Introduction………………………………………………………..5
1.1 Purpose of the Report………………………….……………..6
1.2 Saree Mainstream Clothing Shop……………………………7
1.3 Innovation Opportunity………………………………………8
2.0 Findings………………………………………………………………9
2.1 Introduction…………………………………………………….9
2.2 Open and Closed Innovation Mode…………………………….l9
2.3 Innovation Process………………………………………………10
2.3.1 Defining the Problem……………………………………….11
2.3.2 Generating the Ideas………………………………………..11
2.3.3 Evaluating the Ideas…………………………………….…..12
2.3.4 Choose the best idea or ideas…………………………..…….12
2.3.5 Developing the idea…………………………………………..12
2.3.6 Implementing the idea………………………………………..13
2.3.7 Monitoring……………………………………………………13
2.4 4P’s to Innovation……………………………………………………….13
2.4.1 Paradigm………………………………………………………….14
2.4.2 Product………………………………………………………………14
2.4.3 Process……………………………………………………………….14
2.4.4 Position………………………………………………………………15
3.0 Assessment (The Barriers and Risks)………………………………………15
3.1 Force Field Analysis…………………………………………………….16
4.0 Conclusion……………………………………………………………………..17
5.0 Recommendations…………………………………………………………….18
References …………………………………………………………………………19
Appendices…………………………………………………………………………22
1.0 Introduction
Innovation is the application of essential ideas that can create value for organizations, businesses, and the government as well (Dawson & Andriopoulos, 2014, pg56). Additionally, innovation can be about changing the long-standing forms into something useful or putting theory into action. On the other hand, creativity is the process of generating new ideas, solutions, alternatives, or imagination in a unique way (Brown, 2016, pg26). The greater the idea, the more curious it is to achieve new and innovative action. Additionally, creativity is not genetically transferred but it is developed through continuous learning and putting thoughts into actions. The difference between innovation and creativity from both definitions is that innovation is a productive process, unlike creativity which is an imaginative process. Similarly, creativity can’t be measured, unlike the innovation processes that require cash for putting ideas into reality.
Implementation innovation and creativity in a business entity is very crucial and should be taken with a lot of concern because it boosts business performance. Therefore, promoting innovation and creativity within a business begins by allowing staff members to work freely within and outside the business so that they may explore and bring new ideas into the business. Great ideas do come from most engaged employees, not bored, and stressed employees (Foss & Saebi, 2015, pg89). Connectively, the strategies of establishing an innovative culture within the workplace like Saree mainstream clothing shop include collaboration, where Saree clothing shops can collaborate with the major clothing shops to learn new ideas that will lead to innovation. Another way to establish an innovative culture in a workplace is by listening to the members of the community because they do have tremendous ideas that can steer innovation in the workplace (Cook, 2016, pg56). The third strategy for establishing an innovative culture in a workplace is by recognizing and rewarding innovative talents within the workplace. According to Serrat, (2017, pg909) rewarding and recognizing employees has a positive impact on the business. Therefore, Saree clothing shop should consider cultures that make a difference and will impact positively in the workplace. The last factor for establishing an innovative culture in a workplace is by embracing failure. This is because an innovative process involves a series of trials and taking risks for the best marketing strategies. For instance, companies such a Walt Disney and Arianna Huffington have built on their failures. Also, the discovery of microwaves and penicillin was a due result of a failure. Steve Job’s equally built on his failures.
The internal innovative opportunities include everything within the business from people to physical assets. The internal innovative opportunities that the fashion industry may consider are online e-commerce, adopting flagship design, introducing new and unique clothing designs, having a strong presence, and superb stores. These internal opportunities will not only help in increasing the revenue but also help businesses to gain market value (Ismail, 2015 pg117). On the other hand, the external innovative opportunities are everything outside business that influences its operations like political factors, economical factors, social-legal, and technological factors. These opportunities include expanding to new markets, developing market potential, and a superb supply chain.
- Purpose of the Report
The purpose of this report is to discuss innovative and creative ideas that a mainstream clothing firm that deals in western clothing, jeans, and maxi dresses under a small established Saree Fashion and Design Shop can implement. Creative and innovative ideas are drawn from the models of innovation. These models include the 4P’s to Innovation, the innovation process, and the open and closed innovation systems. Moreover, the creative and innovative idea drawn from the innovative models which can be implemented by mainstream clothing operating under Saree Fashion and Design Shop is that the mainstream clothing will consider launching a home-based business service. That is, carrying out sales activities from door to door in addition to the installed shop. This is because most people are busy, some become tired after work while some do lack time to visit shops because of fixed schedules. Therefore, this will not only provide an opportunity to improve sales and marketing but also provide an opportunity to compete fairly and effectively with other clothing shops in the market. This innovative idea will be supported by social media tools to market our services and contacts.
1.2 Saree Mainstream Clothing Shop
Saree is an international fashion and design shop that deals in typifying clothes majorly for South Asian women. Saree Clothing design is among the most popular clothing products and also one of the oldest fashion shops in history. Over the years, Saree has gained recommendable acclaim for its constant production of new clothing brands at a quicker rate than his competitors. This has helped Saree to become a market leader in a high street fashion industry. Some of the current trendy Saree clothing brands are the floral saree with pastel shade, tassel border saree, and minimalistic saree (Kaur & Agrawal, 2019 pg37). According to Kaur and Agrawal (2019 pg42), the graph below represents annual growth rates and financial performance of Saree fashion and design shop. From the graph, it is evident that there is a remarkable and progressive increase in profit above $ 20,000 every year. This indicates that it is a potential business to venture and invest in.
Graph 1: Increase in Annual Profits
1.3 Innovation Opportunity
Innovation opportunities are based on various elements within the business processes which business owners fix to build a future economic potential for their business. In relation to this, A mainstream Saree clothing shop can identity these innovative opportunities through SWOT analysis. SWOT is used to evaluate the strength, weaknesses, opportunities, and threats involved in the innovation process.
Strengths
Salespersons in Saree clothing shop are skilled and experienced
Existence of creative fashion designers who are able to supply the right clothing brands
There is a good business reputation
Weakness
Although there is a good business reputation, it lacks experience
Competition with powerful clothing shops in the same market
Opportunities
A unique innovative idea which can reposition the market
An increasing number of people who needs home-based business services
Support by the government on creative and innovative ideas
Threat
Existence of many competitors selling at a lower price
- Findings
2.1 Introduction
Innovation models have helped in discovering various ways for improving the value of the business, increasing returns, reducing competitive disruptions, and facilitating timely marketing skills (Bratnicka-Myśliwiec, 2015 pg78). This has made it hard for most businesses including the clothing sector to identify real business models that are potentially rewarding. Though, the advantages of these innovative models are that it has provided transparent and efficient methods for achieving innovative goals in the business such as marketing techniques, product development, and technological advancements (França et al. 2027 pg63). In this report, findings have been presented based on the innovation models and how they can be used to support the innovation idea which is home-based business services and social media applications.
2.1 Open and Closed Innovation Model
According to Serrat (2017 pg904), Open innovation is the process of adopting positive inflows and outflows in the business which can accelerate both the internal innovation factors and expand the external marketing factors just as in Appendix 2 – Open and Closed Innovation. In relation to this, a mainstream Saree clothing shop can use open innovative models to improve its home-based business activities, marketing, and sales strategies by considering internal and external ideas by using social media to promote their sales. Additionally, open innovation is highly influenced by large business entities which often do feed smaller businesses with products and services (Franca et al., 2017 pg158). This is because it involves high facilitation costs for licenses and intellectual properties.
The closed innovation model is based on the internal resources within the business. That is, the entire innovation process is carried by businesses themselves as indicated in Appendix 2 – Open and Closed Innovation. This can be from the generation of ideas to marketing techniques. In connection to this, a mainstream Saree clothing shop can successfully implement a closed innovative model when practicing home-based business activities or in the daily operations by considering some factors. One of the factors is the nature of employees (Proctor, T., 2018 pg78). Saree shop should consider hiring a highly skilled salesperson who can carry out door to door sales effectively. The sales individuals should be responsive and adhere to commands and directive of their leader. This is even evidenced by Apple Company. The success of Apple Company depends heavily on the commands and directives that were issued by Steve Jobs. For instance, when Steve Jobs decided to internalize all the branches of Apple products by avoiding any open outsource from Apple Company, all the Apple Company branch managers adhered and followed his commands. From this finding, it is essential for a mainstream Saree clothing shop to use both open and closed innovation model to promote home-based business services.
2.3 Innovation Process
The process of Innovation is aimed at turning ideas into reality. According to Appendix 3 – Innovation Process, the process involves several phases and regular gathering of information from various sectors. Also, the innovation process depends on the nature of the business. That is, large and complex businesses tend to have long and complex innovation processes unlike small businesses (Costa & Monteiro, 2016 pg32). The process is equally accompanied by various challenges such as financial strain, technological failure, and redundancy. This report has highlighted seven crucial stages in an innovation process as per Appendix 3 – Innovation Process. These stages are applicable and can be used by Saree mainstream clothing shop. These phases include defining the problem, generating ideas, evaluating the ideas, choosing the best idea or ideas, developing the idea, implementing the idea, and monitoring.
2.3.1 Defining the Problem
The innovation process begins with the identification of the main problem within the business. The problem depends on the type of business and other factors within the business such as capital, technology, and location (Brunswicker, 2016 pg177). For a mainstream Saree clothing shop, the main challenge and a problem as well are how to improve sales. This can be done by carrying out market research on targeted areas. Secondly, collaborating with other clients working in the same field to learn new and old tactics and lastly, Saree clothing shop should track discussions from social media based on the needs customers through their social media accounts like Facebook, Twitter, and Instagram.
2.3.2 Generating the Ideas
This is the second stage of the innovation process. This stage involves thinking creatively to generate and find solutions for the defined problems. Ideas can be generated by being open to new opportunities and also by thinking differently (Toubia, 2006 pg415). There are three most common ways that a mainstream Saree clothing shop can use to generate ideas to facilitate the home-based business services and to improve on sales. These include having a depth discussion with customers. Also, through brainstorming, it provides an open field for thoughts. Lastly is inventory analysis. Inventory analysis helps in highlighting the problem from the general products to services.
2.3.3 Evaluating the Ideas
Evaluation of ideas provides a wide opportunity to find an innovative idea. A mainstream Saree clothing shop can evaluate a set of ideas through SWOT analysis, which is an abbreviation for strengths, weaknesses, opportunities, and threats. The second method is the evaluation matrix, which is listing ideas based on priority to the business (Tidd & Bessant, 2018 pg168). Lastly is a pass or fail evaluation which is used when there is a long list of ideas. But in this report, the ideas have been evaluated by SWOT analysis.
2.3.4 Choose the best idea or ideas
After the evaluation of ideas, a mainstream Saree clothing shop should choose an idea that can be implemented within their financial range. Below are the identified tips during findings that can be applied by a mainstream Saree clothing shop to improve on sales and home-based business services.
- Is there enough capital for implementing the idea?
- Does the idea meets the deadline
- Problems will accompany the idea
- The major risks involved in each idea
2.3.5 Developing the idea
Development of ideas is the most crucial stage in the innovation process and often, it is very complicated and hard for most businesses (Trott, 2008 pg110). In connection to this, a mainstream Saree clothing shop can develop its ideas by consulting cloth designers, branding managers, marketing specialists, and sales strategists. Also, they should consider the feedback of customers from their social media accounts whether to continue with the home-based business services or not.
2.3.6 Implementing the idea
The implementation process involves writing a business plan. From the findings, it is important for a mainstream Saree clothing shop to write a business plan. This is because the business plan will outline the financial requirements, marketing and sales strategies, and essential management criterion which will be used during home-based business services and in other activities. Lastly, a mainstream Saree clothing shop should consider outside factors in the business such as vendors or business partners. This is because new ideas do affect business clients or partners. Therefore it is important to consult them before making changes.
2.3.7 Monitoring
Monitoring the implemented idea is essential because it involves reviewing the progress of the idea because monitoring can be done both on long and short term basis (Goodman & Dingli, 2017 pg187). In the findings, it is essential for a mainstream Saree clothing shop to provide monitoring procedures to steer the innovation process. Some of the monitoring techniques a mainstream Saree clothing shop can use include collecting data to analyse the current results, comparing collected data with initial data, and making the right decisions that can improve the process.
2.4 4P’s to Innovation
The 4P’s to Innovation is a model that was created by Joe Tidd and John Bessant (Akgun. et al., 2017 pg70). This model enables the businesses to understand their current positions and learn how to improve in their Processes, Products, Position, and Paradigm as indicated in Appendix 4 – 4P’s to Innovation. This model also aims at supporting any new idea in businesses such as the use of social media to support the home-based business services and to improve on sales for a mainstream Saree clothing shop.
2.4.1 Paradigm
Paradigm innovation is a drastic change that leads to an improvement in the products and business processes. For instance, today, inventors like Steve Jobs are remembered and thanked for their innovations that brought a drastic change in the world (Anderson, 2013 pg16). Same to inventors like Henry Ford who developed a Model T motor car. Henry Ford knew the needs of his customers, and as a result, he created exactly what they needed. Similarly, by mainstream Saree clothing shop introducing a home-based business service, it will not only improve customer service but also boost sales within a mainstream Saree clothing shop.
2.3.2 Product
Product innovation focuses on how to create a new product or how to improve the existing condition of stocked products. For instance, in the year 2007, Apple company improved its products by creating a cell phone that is completely different by adding a display touch system that is easy to use and operate. Also, a mainstream Saree clothing shop can improve sales by introducing a sales strategy that is totally unique and different from others. That is the home-based business services.
2.4.3 Process
Process innovation is based on production processes and stages such as delivery, supply, and manufacturing. A perfect example of this is the digital publishing entities like Amazon, headed by Jeff Bezos. Most services from Amazon are instant (Akgun. et al., 2017 pg76)., purchasing a book is just a click, which then downloads automatically. Similarly, this should also apply to a mainstream Saree clothing shop. This can be achieved by creating safe and reliable social media accounts where customers can order goods, post suggestions, and also send feedback. This will make the home-based business services easy because salespersons will know where to head.
2.4.4 Position
Position innovation involves relocating the perception and beliefs of customers about a given product. For instance, initially, people viewed ‘Levis Jeans’ a clothing design differently. Levis jeans were valued and adored by many. This didn’t take long until another brand ‘CarHatt’ repositioned the market. ‘CarHatt’ changed the perception of customers by introducing more fashionable items. Similarly, from the findings, it is also important for a mainstream Saree clothing shop to reposition the market with a new and better innovative idea which will improve on their sales.
3.0 Assessment (The Barriers and Risks)
The common barriers and risks that a business may experience in the process of innovation are lack of contribution from a key stakeholder, individual or organizational change resistance, and lack of consistency (Govindarajan & Ramamurti, 2011 pg198). The key stakeholders in the business need to be consulted in the initial stages of idea generation. Also, some businesses or individuals do not enjoy change. They love and enjoy their current and their initial business status. Therefore, no matter how promising innovation maybe, they will not consider it. Connectively, lack of consistency is also another common barrier, and risk a business may experience in the process of innovation. The business transition needs total support and commitments from all departments in the business. Inconsistency will only reduce the efforts of other members. Similarly, financial strain is another barrier and risk in the process of innovation. This is because the innovation process involves several procedures, of which, some are foreseen and others are unseen. The unseen factors may hamper the whole innovation process if there are poor planning and allocation of finances.
3.1 Force Field Analysis
This method helps in evaluating forces in the business which are either beneficial or detrimental to the business, the diving, and restraining forces. Similarly, force field analysis plays an essential role in business when making challenging and hard decisions. The theoretical and practical idea behind field force analysis is that it provides equilibrium for forces that resist or bring change in an organization (Swanson & Creed, 2014 pg30). Some of the forces that a mainstream Saree clothing shop should expect will originate from human behaviors, cultures, norms, and beliefs. Additionally, there are also the driving or positive forces that can bring change within a mainstream Saree clothing shop. These forces include adopting new technologies such as social media, stocking new clothing designs or products, competition, considering the public opinion, and changing markets needs. While the negative forces that can block the progress or goals in a mainstream Saree clothing shop according to Appendix 5– Force Field Analysis are fear and organizational apathy due to continuous losses, high management and facilitation costs, disruption from unforeseen events, and loss of skilled salespersons. The forces can be identified or evaluated by the use of SWOT and PESTLE. SWOT is an acronym for strengths, weaknesses, opportunities, and threats in the business and PESTLE, which is an acronym for the political, economic, social, technology, legal, and environmental factors in the business. Lastly, a mainstream Saree clothing shop can apply and use field forces analysis to bring change in the business through the following steps.
- Defining the desired change within mainstream Saree clothing shop
- Brainstorming all the driving forces within the Saree clothing shop
- Brainstorming all the restraining forces within the business
- Evaluation of all driving and restraining forces in Saree clothing shop
- Determining the elimination criteria for the restraining forces in the business
- Lastly is strategizing to strengthen the driving forces for a mainstream Saree clothing shop to succeed.
4.0 Conclusion
According to the findings from this report, several conclusions based on innovation and creativity can be drawn. The findings from this report showed the application of the innovative and creative idea in a small established saree shop dealing in Maxi and jean dresses. The idea is set to launch a home-based business service as a way of improving sales and also as an innovative and creative idea.
Additionally, this report has highlighted various ways on how to establish an innovative culture within a business environment through the internal and external analysis of innovative opportunities. This is by use of the new technological advancements and social media platforms to market their services and activities.
From this report, based on the findings, it can be concluded that, for a mainstream Saree clothing shop to operate and be successful, it must take not of the business risks and barriers, restraining and driving forces that can block the operational activities. The forces that can block the operational activities of Saree clothing shops include the hostility environment, fear, and organizational apathy due to continuous losses, high management and facilitation costs, disruption from unforeseen events, and lack of skilled salespersons.
5.0 Recommendations
Based on the findings and the conclusion from this report, the following recommendations are made:
- A mainstream Saree clothing shop should consider is keeping up to date with social media. Keeping up to date with social media will not only help in the analysis of the new marketing trends but also boost their home-based business services.
- A mainstream Saree clothing shop should research on the latest fashion trends and needs of customers. This can be achieved through dealing only with the new clothing designs which are acceptable within the high street markets and also practicing a home-based business service.
- A mainstream Saree clothing shop should consider using the current technological advancements such as social media, business websites, fashion magazines and hand out flyers in analysing fashion trends and marketing there services.
- A mainstream Saree clothing shop should identify unique selling points or locations within the high street markets where they can be easily seen or spotted by their customers.
- A mainstream Saree clothing shop should make their customers feel valued and wanted. This is by communicating with the customers regularly to inform them of the available clothing brands and fashion designs.
References
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Appendices
Appendix 1 – Model of Innovation
Appendix 2 – Open and Closed Innovation
Appendix 3 – Innovation Process
Appendix 4 – 4P’s to Innovation
Appendix 5– Force Field Analysis