Innovation Assignment: Significance of Innovation in Dyson Ltd

Question

Task: You are required to select a Small, Medium Enterprise (SME) or large company with a presence in the UK providing products in the Retail or Manufacturing sectors. You will examine the topic of innovation through a critical analysis of their approach to innovation using Tidd&Bessants (2018) innovation process model and incorporating two identified innovations already developed and implemented in the market place by your chosen business. You will produce an innovation assignment report on the effectiveness or otherwise of your chosen business’s approach to the innovation process. You are, therefore, required to provide an evaluation of the following:

• A critical analysis of Tidd&Bessant’s (2018) Innovation Process Model incorporating teamwork, project planning, risk assessment and the influence of the market to the innovation process at the appropriate stages of the model. To aid analysis, it is expected that other business models will be included as relevant to the different stages of the model. The inclusion of two identified and defined current innovations to aid your analysis is critical.
• Identification and analysis of your chosen business’s internal resources considered necessary to ensure success in their innovation strategy.
• An analysis of the potential influence of organization culture on managements’ approach to managing the innovation process and ensuring organization efficiency.

Answer

Introduction to Innovation Assignment
Innovation is critical for economic development through which corporations, sectors, and nations compete to achieve a competitive advantage in the industry.The essence of the relationship between resource investments, such as in Research and Development activities, technological improvement, and the way innovation impacts the performance related to economic development remains a critical question (Nowakowski, 2020). Innovation also refers to the mechanism by which companies use capital to generate, diffuse, and retain innovation while maximizing expenditures on science and technology, research and growth, and associated capacities, with the ultimate objective of deriving benefits in terms of wealth creation and maintaining higher living standards.

The report envisions a critical analysis of the Innovation Process Model suggested by Tidd and Bessant in relation to the selected organization of Dyson Limited. This analytical report highlights the significance of project planning, team working, assessing the risks, and understanding the marketplace. This report encompasses the difference between efficiency and effectiveness in innovation to ascertain that Dyson Limited has achieved both in managing the innovation process. The report also presents a glimpse on the identified innovations, significance of culture in innovation and identifying internal resources of the business in obtaining success with the adopted innovation strategies.

Critical analysis of the Innovation Process Model by Tidd and Bessant applied for the selected organization.

Innovation is a concept that has revolutionized into reality. Innovation process suggests For a company innovation process suggest a product, process or business model or variations which has been stimulated in the market while generating new value, revenue, enhanced company image and development for the company (Morrar et al. 2017). Innovation is a generic method that all companies must explore.

Researchers argue that a misconception of the innovation process, which is intended to be an adaptive and concurrent process, would escalate costs and results in delays. However, it is important to observe that the models are simplified versions of reality (Canh et al. 2019). Innovation is a difficult task that is fraught with danger. Unfortunately, there is no clear plan or recipe for companies that want to become more creative, and many people believe the method is unsustainable. Organizations that do not invest in creativity face difficulties because they do not build innovative skills or techniques to increase the quality of existing goods, programs, and business strategies (Danylenko, 2018). As a consequence, such businesses do not remain in the industry for long and eventually become unproductive.

Figure 1: The Innovative Process Model suggested by Tidd and Bessant
(Source:Tidd&Bessant, 2020)

The first stage is known as the Search thatentails searching the landscape for risks and opportunities, internal and external, as well as analyzing relevant indicators. These risks and opportunities can arise as a result of emerging technologies or changes in legislation (Tidd&Bessant, 2020). Dyson Limited searched the market for the best available option before foraying into the Airwrap Hair Styling tool. Following the opportunity pursuit comes the phase of Selection, which involves assessing, reviewing, and determining which possibilities an organization can seek. Since the risks and expenses are so great, no company can pursue any opportunity it comes across. Manufacturers should provide a system in place to ensure that multiple signals are evaluated efficiently and correctly. The opportunities that an organization decides to pursue must be consistent with its overall plan. Dyson selected the opportunity in 2018 to launch AirwrapStyler, which produced the "Coanda Effect" that is created with the combination of heat and air while removing the risk of damaging the hair (O'Brien, 2018). The outcome of the product is natural-looking hair curls.

The conception of the project follows the next critical step known as Implementation, which aims to transform the concept into something tangible, such as a new product or service that is introduced either externally or internally, based on the target market (Danylenko, 2018). This process is lengthy and entails dozens of new tasks and recommendations, many of which are related to productivity growth. Capturing value is the last, but not least, and most significant, a step that is defined in this innovation process. The process of innovation of the products executed by Dyson involves higher expenditure and substantial time, which is argued to be a demerit in the competitive industry (Zehavi&Breznitz, 2017).However, the product was a trendsetting one which dismissed the flaw of ruining the reputation of the brand.

When it comes to creativity, the aim is almost always to extract some kind of benefit. That may be revenue growth, profit, or global implications, and it could also be experience gained through the innovation phase that can be applied to future ventures. AirwrapHairstyler was innovated to make it easy for people to style their hair at home. The fact that the device used monitored streams of air that never reached temperatures higher than 300 degrees Fahrenheit (150 degrees Celsius) contributed to the trend (Rodulfo, 2018). Other than the Coanda-enabled curlers, the company also offered a brush set that can be used for a variety of grooming purposes. Despite its steep price tag, the product has made a name for itself in the beauty and hair care world, with consumers hailing this innovation to be an investment for future implications.

Figure 2: The Airwrapstyler is innovated through six years of research and with an investment of €27.5 million in R&D
(Source: O’Brien, 2020)

Discussion on the significance of project planning, team working, assessing the risks, and understanding of the marketplace through stages of innovation
Project planning is more than just a step in the innovation phase. This is considered one of the crucial phases of the whole procedure. Innovation process stalls for a variety of reasons. The primary cause of failure is that team members are unaware of their respective roles and responsibilities, and duties. The termination of a project is associated with the innovation process when leaders struggle to adequately identify project goals and milestones. If team leaders struggle to efficiently execute specifications, many tasks fall short of their goals. The project planning is undertaken in the phase of Selection in the Innovation Process Model (Knoll &Johnsson, 2015). Project planning renders the framework and anticipation for the stage of execution in the innovative process, assist the team members to reduce wastage in terms of time and finance.

Teamwork consistency is particularly crucial in highly resourcefulventures, where the mission's innovation, complicatedness, and indistinctness render the teamwork mechanism more essential due to unexpected and quickly shifting task environments. More disruptive activities produce more complexity since there are more factors of uncertainty and possible delays involved with project management with interconnected elements (Cagan& Vogel, 2012). Due to the continuous changes found in highly creative tasks, team members must cooperate to a significant level in order to cope with these repeated changes. The companies investing in innovation must devote much time and think to designing and refining their assessment method for evaluating their respective technologies in order to effectively handle innovation risk (Davila et al.2012). The more accurate and relevant details companies use when determining when and how to implement innovation into the industry, the less risk those companies feel they have omitted a significant aspect to include in their decisions, eliminating unforeseen consequences.

The assessment of marketing trends comes in the search stage of the innovation model, while risk ascertainment comes in the selection phase of the innovation model. The companies heavily rely on influencer marketing which is the current market trend, to understand the need for innovating products (Morris et al.2010). The technology to impart the best result without creating damage to the customers has been the primary choice of Dyson Limited to bring in the innovation of Airwrapstyler investing in the science and technology while understanding the market trend. The market, in this case, relates to the group of customers who accepted the supersonic hairdryer innovated by Dyson. However, the gap in understanding the overall needs of the customers was fulfilled after long research and investment in the project.

Distinguishing between efficiency and effectiveness in the innovation process
Effectiveness in the innovation process leads to the extent to which something is rewarding in producing the expected results. The characteristic or property of being efficient is referred to working or producing adequately with the least amount of waste, cost, or excessive effort. The word "efficiency" refers to the ability to perform assignments in a timely and right manner (Abbasnejad et al. 2017). It is technically called the output to input ratio, and it focuses on producing the most output with the fewest resources. On the other hand, effectiveness applies to performing the right things. It monitors whether the real output matches the target output on a regular basis. Since productivity is all about concentrating on the method, the ‘means' of doing things are prioritized, while success is concerned with reaching the ‘final' target.

In the process of innovation, efficiencies of the process are driven to achieve effectiveness through the products. Innovation strategies are adopted to achieve the effectiveness of the products by applying efficient resources, business visions and the efforts of the human resources to bring out the brainstorming ideas (Abbasnejad et al. 2017). Efficiency in innovation relates to the improvement of current workflow while attaining the measurable metrics to define the level of efficiency achieved through the products. In contrast, effectiveness improves the quality of the work while focusing on the external outcome of the innovation. Effectiveness, unlike efficiency, does not consider the significance of time or input or output ratio.

Figure 3: The difference between effectiveness and efficiency
(Source: Abbasnejad et al. 2017)

Identifying the business model related to the process of innovation
Dyson Limited is identified as the innovation rich manufacturer business model. Business models are also constructed in relation to particular competitive conditions, which detail how an organization derives revenue in terms of its supply chain function and its engagement in complimentary aptitude with its provider, clients, and other stakeholders (Wei et al. 2017). Manufacturing firms are often more challenged to compete with respect to the economic benefit to obtain market supremacy because competitiveness is solely based on the cost is incompatible with the goal of retaining social and sustainable values.

Figure 4: The business model of Dyson
(Source: Dyson Limited, 2021)

Dyson's corporate range expanded as the company continued to produce high-quality products based on proprietary intellectual property. Thecompany patented many technologies through which a range of product was developed, including hand-dryers, air purifiers, hairdryers, vacuum cleaners, and in the latest the electrical vehicles. Each product is caused by a technological leap (with patented IP). Dyson has proved to be one of the successful and reputed companies in the UK, which is being applauded for the innovative products while providing the products at a faster rate in the market and has achieved the metrics of production accuracy. However, the current job cuts create a controversy for the company (BBC News, 2020). The high street presence has been omitted with the influx of digital presence of the company where customers found it feasible to shop online.

Critical analysis on the two identified current innovation of the company with an awareness of the product life cycle
The new Dyson Airwrap styling tool from the British engineering firm is designed to tackle this issue by closely controlled air streams that are never greater than 300 degrees. The Airwrap uses a clever bit of mechanics called the Coanda Effect – the same aerodynamic lifting phenomenon in the aircraft. In the Airwrap, six small cylindrical barrel slots have high-pressure air (Schwab, 2018). The Coanda effect allows the air to circulate through the barrel in a spiral movement which produces a mini whirlwind. The strands wrap spontaneously around it when positioned next to a section of the hair. A more efficient digital engine, adaptive cleaner head, longer battery life and LCD screen, is the latest Dyson V11 Torque Drive vacuum) builds on previous cordless vacuum versions (Dyson Limited, 2021). The vacuum weighs less than seven libraries and is about four feet long with the key cleaner head of the traction drive. It consists of three instruments (mini engine, mixture, and crack) and two brushes (micro dust and resistant dirt) for the Torque Drive Head.

The innovative products at Dyson also pass through the product life cycle (PLC). The products mentioned above are in their growth stage. The premium pricing of the products makes them a limited reach to the customers in developing countries. The growth stage of PLC signifies a strong growth in revenue and sales. The cash flow relates to more investment in product development. The benefits of the PLC for a company are that the sales forecasting becomes easy with the estimation of sale through the product life span (Ibbotson and Kara, 2018). However, the uncertainty in the market conditions makes it difficult to predict the sales as different markets have a different product life cycle.

Identifying internal business resources with outlining the significance of these resources in line with innovation strategy
The top management in Dyson Limited determines the policy and course of creativity. However, businesses worldwide face much greater leadership lacunae in digital transformation (Schwab, 2018).Dyson today needs a whole new range of skills and experience relative to previous generations. Many organizations have not been progressing quickly enough for digital leaders to evolve, youth leaders to make decisions, and new management models to be developed. It does not build creativity simply by setting up an innovation department and giving it capital. It is the duty of management to ensure that creativity is focused on an organization's reality.

An efficient source of transformational creativity is a core research & development department. For the next ten years, Dyson is aimed at increasing the R&D component of its innovation budget from around 40% to 60% (Dyson Limited, 2021). This innovation source is responsible for neighbouring and transformational innovation, while the staff of each business unit typically do gradual innovation as part of their everyday activities.Key business tools like capital, technologies, alliances, networks or established markets can be used by Innovation Laboratories with good leadership support. Among large companies, the movement to create innovation laboratories has suddenly increased. Dyson also pursues the same pattern in the innovation of the products by utilizing the laboratory resources.

Recognizing the impact and influence of culture on innovation and the role of management
Workplace flexibility promotes creativity, while a stable climate favours imitation. The focus in the business world today is focused on organizational processes in order to recognize expertise, dissemination of knowledge, imagination, and innovation.Innovation is the cornerstone and directly linked to recognition and expertise in order to retain a competitive advantage for companies (Tian et al. 2018). High-performance ratios and sophistication are the concepts to draw commitment from the financial actor. To improve life and work for the long term of the organization's growth, many organizations will rely in the future on the culture and values of the diverse workforce.

Conclusion
In summary, it may be interpreted that the purpose of the report is to project the significance of the innovation in the selected company through the model suggested by Tiid and Bessant. The report provided the details on the innovative products and the awareness of their life cycle to derive value through the Implementation of innovation as required. The cultural importance of innovation, internal business resources and the business model adopted by the company has been discussed thoroughly in the report.

References
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