Burberry Company: Evaluation Of Different Sources Of Innovation

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Question :

Write a report to draw and outline a brief information about the different sources of innovation and change management models. Along with this, the paper should discuss how various sources of innovation impact on a business organization like Burberry. 

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Answer :

Innovation 2019


Innovation is a new idea, new imagination and creative thoughts in form of method and technique. The main purpose of this report is to draw and outline a brief information about the different sources of innovation and change management models. Along with this, the paper discusses how various sources of innovation impact on the organization. Burberry Company has been chosen in the task to evaluate the effects of several sources of innovation. Burberry is a biggest luxury fashion house which was incorporated in 1856 in London, England (Burberry, 2019). The vision of the company is to establish an effective position in luxury fashion. The firm uses innovative and advanced technologies to compete with competitors. Burberry provides fashionable products like sunglasses, fragrances, accessories to the customers. The report also discusses the reasons of resistance to change. More detail of the task has been elaborated below. 

Different sources of innovation 

Innovation is not just revealed by initiating or introducing new ideas, techniques and methods. Innovation may be defined as a dynamic process that includes several activities and initiatives to uncover new and innovative ways to do things. It is stated that innovation is a far deeper process than basically expansion, enhancement and the changes it brings is further far long lasting and full of effects. The different sources of innovation are discussed below. 

Unexpected: It is stated that modernization can take place unpredictably and ineffectively. This can occur by chance someone may just stagger upon new product or idea. There is a long and dynamic list of unanticipated innovations in human history. For example, fire is a considered an unpredicted innovation that humans stumbled upon. Another example is the detonate. The main benefit of this innovation is that unexpected success and competitive advantage can be taken with the help of this innovation. On the other hand, depth analysis is needed which is one of the biggest limitations of unexpected innovation (Chesbrough & Bogers, 2014)

Incongruities: When the need and requirement are incongruent with the supply, innovation may be born. In an attempt to handle and resolve the presenting incongruities people might innovate. For example, the population of cars increased there was a scarcity of parking region. To resolve the absurdity between the parking scarcity and parking area, the smart and innovative car was born. It is worth analyzed that smart and innovative car is a small car that can suitable in small spaces. Incongruities can be a significant and unique foundation of innovation. It is significantly in the human nature to try to fill the incongruities he watches around him. The biggest advantage of this innovation is that it improves and enhances the economic performance. It provides profit and revenue because it is exercised by the tide. This innovation is failed to analyze that what actions might be missing in how customers use specific goods and services that may render an opportunity for innovation. It is a leading limitation of incongruity. 

Market structure: An accessible and effective structure could further give rise to options for innovation. For example, this is how Google was born. Google formulated the search steam engine market. Before Google the search mechanism was not as unique and perfect and Google brought all of it in sort. There was ample of information and facts scattered over the World Wide Web. It is evident that Google made this fact and information searchable and effective. Therefore, the World Wide Web gave grow to a market formation where a search mechanism such as Google could thrive and expand. The World Wide Web paved the innovative and dynamic way for interconnection. Google designed a search mechanism that was interconnected to all the searchable data and facts. This innovation helps in increasing and enhancing profitability and returns because it helps in changing the market structure. It is a biggest benefit of market structure innovation. On the other hand, the organization sometimes is unable to find out and analyze the needs, wants and preferences of the customers (Díaz-Díaz & de Saá Pérez, 2014)

Necessity: It is evaluated that requirement is a mother of development and invention but it is further the mother of modernization. Let’s talk about Microscope. It was born out of the requirement to investigate depth into the microbial world. Generally requirements are set to think effectively and efficiently. It is measured that innovation is based upon the bright and unique thoughts and ideas. The human mind thinks of new and innovative things that can better and effectively fulfill an existing requirement or need. In this procedure, the people think of filling their needs and wants in innovative ways and by dividing new mechanisms and products as well (Chesbrough, 2012)

Demographics: It is one of the effective and unique sources of innovation. The lifestyle and trend could be a cause of innovation. The people have different lifestyle needs and wants. For example, the people feel the need to smoke. Though, since smoking is harmful and dangerous for health, thus the people made e-cigarettes to satisfy the urge. It is evident that lifestyle requirements are not small requirements and their fulfillment and significant needs for people. This is where innovators many times find major and dynamic opportunities (Pratap, 2016). The benefit of this source of innovation is that population changes (education, disposable, geographic shifts and age) are one of the unique and effective predictors of the future and it offers ample of opportunities. Ageing population is a leading and major threat to the company. 

Changing perception: It is reported that changing insight regards things can further give birth to modernization. Previously, the overweight people were seen as healthier and unique than the learner ones. Therefore, the community awareness of healthy has undertaken a big change where plump community is seen as overweight and ineffective. People consider the requirement to remain healthier, dynamic and learner. On the behalf of this changed awareness or observation, a flood of vigorous and low calorie foods came to the global market. By using this source of innovation, the organization can take competitive benefits because it helps in evaluating the lifestyle and needs of the customers. Furthermore, it needs high time and judgment thus it is a leading limitation of this source of innovation (Swaim, 2011). 

New knowledge: This can further be a strong basis of modernization. Whether it is a biotechnology, nano-technology and even artificial intelligence, new awareness in any field is a source of modernism. The science is working effectively in the context of innovation. Every year new areas are shown effectively and much gets supplementary to the existing bottom of human awareness. This innovative and new knowledge covers way or manner for innovations that sometimes can be life changing. For example, healthier is an area that has overtime been highly influenced by such innovations whether they appear from the fields of biotechnology or nanotechnology. However, one can analyze and find many more such innovative examples in daily life. It is seen that innovation can be born out of adventure or passion or even of a hobby. This innovation is not based on the one element but on the convergence of various different kinds of knowledge. But this source never provides a depth research to substantiate this view (Swaim, 2011). 

These are the sources of innovation that help in developing and enhancing the customer value through the various resolutions that meet new requirements, wants and needs. Along with that, the innovative and dynamic workers increase and improve the output by implementing and creating new procedures which in turn might maximize competitive benefit and offer meaningful and effective differentiation. 

Impact on the organization of the different sources of innovation 

It is worth noted that Burberry is largest and well known clothes labels around the globe. The main aim of the company is to reinvent itself as an end to end digital enterprise. In innovation, the company uses artificial intelligence and big data to increase customer satisfaction and sales. The artificial intelligence is implemented by the company by using of new knowledge source of innovation (Marr, 2017). It helps in overcoming the competitors in the global market. It is observed that new knowledge can be a dynamic source of innovative and significant opportunities but has the biggest lead times of all innovations. By using new knowledge such as artificial intelligence and data, the company has indeed and stumbled into some of its innovative products (Garriga, Von Krogh & Spaeth, 2013)

Artificial intelligence is adopted to provide modified suggestions, online and in store. With the help of new knowledge source of innovation, Burberry is able to share data to the customers. Additionally, rewards and loyalty programs also are held by the company to attract and retain wide range of premium clients in the marketplace. When a recognized client enters a store, sales executives use tablets to provide buying recommendations based on their wide range of customers purchase history and their public media activities. In this way, new knowledge source of innovation put positive impact on the sale and revenue (López-Nicolás & Meroño-Cerdán, 2011)

Along with that, products in Burberry 500 stores around 50 countries are fitted with the help of RFID (radio frequency identification) technology (Marr, 2017). Through RFID technology, the customers can collect information about how products are produced and suggestions on how they can be worn or used. In 2015, the firm announced that their investment in personalized customer management sessions and programs had resulted in a 50% boost in repeat custom. It is investigated that fashion industry is known as RFID adopter. The value and worth of this technology is specifically visible and unique in fast moving fashion supply chains (agility) as the fashion business is attributed by an effective assortment of products, high volatility, short life cycles, logistics operations and high impulse purchasing. The five Ps of RFID technology include physics, price, process, privacy and performance. RFID technology further helps in increasing and improving the efficiency of operations and also improves inter organizational process effectively. In this way, RFID technology put various impacts on the market share, agility and supply chain. Moreover, RFID implementation permits Burberry to manage and control the stock levels more effectively. Besides this, thanks to implementing RFID, close monitoring of item circulation offers integrated production, logistics, supply chain and marketing. For these reasons, there is huge investment in the improvements and enhancement of RFID technology just because of the substantial benefits that the fashion company can gain by optimizing it (Marr, 2017). By implementing RFID technology, the corporation is able to increase skills, knowledge, leanness and talents of the workers. 

After the various studies, it is evaluated that Burberry focuses on the demographic factors and perception of the customers to cope up with competitors globally. The company is an earlier adopter of new channels and technology. The brand was the foremost across the world to make use of Snapchat’s Snapcode attribute. This permits customers to unlock and collect information by scanning barcodes attached to their items and services. The organization is analyzing and evaluating the needs, requirements, buying behavior and perception of the customers to augment sale and maximize profitability in the competitive market. For this purpose, innovative engagement initiative and programs are used by the company at various stores (Marr, 2017). It will in improving and amplifying the leanness and integrity of employees at the workplace. 

The demographic and changing perception source of innovation help Burberry to make a strong and dynamic image in the minds of the customers. Burberry is an effective and significant brand across the globe so it makes great sense that this is a field where it has previously used AI and machine knowledge technology to conduct business activities (Yam, Lo, Tang & Lau, 2011). The company has spoken about its planning to roll out AI tech into other fields of its initiatives and activities including product enhancement and production (Marr, 2017). The company was developed on innovation-its initial items were made from robust new febrics like Gabardine built by inventor or founder (Sung & Choi, 2014). The firm also uses unexpected and incongruities source of innovation in production process to attain the competitive edge in the global market. The company introduced its own devoted channel on Apple music with the objective of linking with various clients by enhancing and enlarging British musical talent. By using unexpected innovation, Burberry is able to differentiate its products from the competitors globally. In this way, it is measured that various sources of innovation put direct impact on the image, agility and profitability of the firm. It also has an impact on the agility and supply chain of the company. These sources of innovation also improve and boost effectiveness and efficiency of the workers as a result leanness and agility are maintained in the organization (Gunday, Ulusoy, Kilic & Alpkan, 2011)

Reasons why 70% change initiatives may fail 

It is true that 70 percent of most effective initiatives might fail to meet the needs and requirements of stakeholders. When implementing to change, the many companies get stuck at the initiation stage. This is where the rubber meets the road and many organizations find it complex to get past their values and culture of not holding people responsible. The reasons why 70% change initiatives may fail are discussed below. 

  • The main reason change initiatives fail is lack of leadership consensus and help from the company’s leaders. It is main reason behind the rejection of change initiatives. Therefore, leaders should focus on the communication and leadership to implement the change management (Hughes, 2011)
  • Lack of accountability is another reason which can influence or effect the change initiatives in the organization. To reduce this issue, the leaders need to ensure that all team members know excuses would not be tolerated at the workplace. 
  • Failure to communication is another reason that hampers the change initiatives adversely within the organization. As a result, the employees do not accept the changes effectively. 
  • Inadequate resources and poor planning are another cause that affect the progress of change initiatives negatively (CCL, 2019). 
  •  A lack of effective measurable metrics set to evaluate outputs will make it very tricky to identify and determine if the initiative is a failure or success. It is a primary and ongoing cause that put direct impact on the progress of change initiative. 
  • Additionally, without strong and effective team, change initiative is doomed to fail. Ensure all the employees are committed, are passionate towards the change and have the right and unique skills (Burnes & Jackson, 2011)
  • Missing feedback or review is another reason behind the failure of change initiatives.  Failure to ask for reviews and feedback generally lead to a lack of buy-in and unpredicted issues and challenges (Kotter, 2012)
  • Lack of defined outputs is vital cause of resisting for the change initiatives at the workplace. Apart from this, in today’s competitive world, sustaining change is exponentially more complex than standard change management recommendation would have people believe. It also creates resistance to change issues while implementing the change management in the organization (Jewell, 2016). 

Change management models 

The change management models to reduce and eliminate change management issues. Some of the change management models are presented below. 

Lewin change management model: There are three stage of Lewin change management model that have been shown below. 

Unfreezing: It is well known and effective that individuals often resist change as they prefer strategies, approaches and processes that they know to those that they do not. To overcome this, Lewin argued that individuals or employees shall be promoted to examine and analyze current processes for maximizing profitability. 

Change: Once employees have accepted current procedures can be improved and enhanced and there are various solutions to the issues and barriers. The next step is to initiate the change process. This stage offers excellent opportunity for skills enhancement and attaining experience and knowledge. Communication and leaders play a major role in this stage to accept the organizational changes. 

Freezing: This stage is significant and vital in the overall processes. In this stage, it is needed that change is sustained and reinforced. This stage is unique to ensure that people do not revert back to their old ways of thinking to the initiation of the change (Erne, 2016)

The Lewin change management model is a unique approach to new ways of thinking at the workplace. It also helps in preventing resistance to change issues and barriers while initiating the change initiatives (Cummings, Bridgman & Brown, 2016)

Kotter’s 8 step change management model: The 8 steps of Kotter’s model include the following:

  • Create a sense of necessity
  • Develop a strong and effective alliance 
  • Formulate a strategic vision
  • Get everyone buy-in
  • Enable measures by reducing barriers 
  • Create short term wins
  • maintain acceleration
  • Institute change 

This model or process effectively turns possibly resistant individuals into open participants through teamwork, transparency and faith. In this way, this model helps in eliminating the resistance to change obstacles and barriers while using the change initiatives (Sarayreh, Khudair & Barakat, 2013)

ADKAR model: This model is well known for its people focused approach and it focuses on the change initiatives. ADKAR model stands for awareness, desires, knowledge, ability, and reinforcement that help in managing the organizational changes effectively. ADKAR model further helps the workers process change by explaining and defining stages that enable them to both accept and understand the organizational changes at hand (Lewis, 2012)


It is concluded from the above discussed analysis that several sources of innovation play a major and significant role in achieving desired objectives and goals. These sources of innovation put positive impact on the effectiveness, performance, productivity and growth rate. Burberry uses these sources of innovation to reach at top level in the global market. On the other hand, change initiatives play a major role in growing and thriving the business. However, people may resist these changes therefore dynamic and innovative change management model such as ADKAR model, Lewin change management model and Kotter’s model are used by the company to prevent and minimize change initiatives issues.