Identifying the innovation
Discuss about the Innovations and Creativity in Organizations.
In the modern world, innovation plays an important role in the success of an organisation. According to Anderson, Poto?nik and Zhou (2014), without proper innovation, gaining a competitive advantage in business can be difficult. Hence, a proper business model needs to be applied so that innovation in the organisations can be encouraged. The assignment focuses on the application of innovation and the manner in which it has helped in the improvement of a business. The organisation in focus is Ally Fashion, one of the most famous clothing retail companies in the world. The effective use of the business model canvas by the company is analysed in the assignment along with the advantages and disadvantages. At the same time, the concept of business mode and innovation is provided in the assignment.
Ally Fashion is one of the most reputed and famous clothing retail company initially set up in America. It was founded in 2001 and currently the headquarters of the company is in Sydney Australia (Ally Fashion.com, 2018). The sales of the company is said to reach sky-high prices providing a profit of US$249.284 billion. The assignment focuses on the success of Ally Fashion located in Australia and the manner in which innovation and business model canvas has helped the company to succeed.
Innovative products can be in the form of small or big changes that are imposed on an organisation, so that it provides unique product or service to the customers. In the case of Ally Fashion, the company can gain opportunities in the current business market of Australia by the application of electric shirts. According to Serrat (2017), proper analysis of the factors that affect business, such as political, economic and technological aspects are important in order to understand the level of success that can be achieved. At the same time, these factors also help in attaining sustainability as Ally Fashion can get the required level of success. The electric shirt can be used to attract audience as this type of innovation can be considered as one of the most creative products. The feature of the product is that unlike the regular shirts, this particular shirt does not have to be ironed. People can wear the shirts as an informal wear and the shirts can be run on battery.
The application of the Osterwalder and Pigneur’s model of business canvas can help Ally Fashion to consider the value proposition factors. As stated by Tukker et al. (2017) the value proposition factors can be effective at time during the growth of a company. In the case of Ally Fashion, the value proposition factor can help in ensuring that the concept of the electric shirts grows in the markets of Australia. Although, success of the product can be considered in terms of number of sales and stores, it provides evidence that the electric shirt can grow in the markets of New Zealand, which can be a target for the company. The satisfaction of the customers’ needs to be taken into consideration, as they are the main stakeholders of the company. With a rich revenue streamline, the electric shirts can maintain a steady growth in the Australian market keeping in mind the satisfaction of the customers.
Identifying business models
The responses provided by the customers can also be considered as an important factor for the growth and development of the electric shirts. The price and quality of the the electric shirts along with the services provided by the company can be analysed and improved based on the feedback received from the customers. The responses can be collected by conducting a survey method so that feedback can be gained so that new and existing products can be manufactured or improved. The application of the electric shirts can help in the growth of Ally Fashion as it provides qualitative ideas about the introduction of innovative products (Vargo, Wieland & Akaka (2015). At the same time, the satisfaction of the customers can help Ally Fashion to continue with the innovation of the products and services keeping in mind the target customers. The target market of Ally Market is the fashionable people all across the country.
The application of the electric shirts can help the organisation to gain success as the development process of the organisations can improve at an alarming rate. The capabilities along with the resources of an organisation can be analysed with the help of the business model. According to Bain and Kleinknecht (2016), the application of the business model can help in identifying the methods that can be used to gain revenue. Therefore, a company like Ally Fashion can gain benefit in the market of Australia, particularly after the recent controversy that the company have faced due to its wages. At the same time, the changes that are taking place in the modern world also need to be analysed so that the electric shirts can remain the best innovative factor in the retail stores of the country. Therefore, it can be said that Ally Fashion need to develop a business model canvas so that it can enjoy its success in the market.
Based on the initial analysis of the condition of Ally Fashion, it can be said that the company need to undertake an innovative business policy so that it can be involved in the competitive market of the modern business world. The adoption of innovative technologies can help Ally Fashion to the stores that it will set up for the electric shirt. The disruptive change can help Ally Fashion from transforming itself from its current products. Therefore, applicaton of a disruptive innovation technique can help Ally Fashion to compete with its competitors. Adams et al. (2016) is of the opinion that the electric shirts can help in gaining profits as people like to pay for products and services that are unique yet effective. The adoption of disruptive process can help in the change of the electric shirts in the organisation. Hence, the adoption of such a process can benefit Ally Fashion, particularly after the controversy it had to endure in the Australian market.
Developing case document
In the modern world, it has been seen that most organisations fail to have a stable business model that can be used as predictability tool for determining future profits and losses. According to Van Oort (2017), this is considered as one of the reasons behind the loss that small companies have to endure from its competitors. In order to understand the success an organisation can achieve, it is necessary to conduct a thorough research of the internal and external environment. In the case of Ally Fashion’s the application of the electric shirts, can help the company to continue with its business in the Australian market. The current external market that Ally Fashion operates in considers the customers as the most important external factors. This mainly because the application of the electric shirts can help the organisation to continue with the business process and ensure that proper development of the idea takes place. The electric shirts can help Ally Fashion to dominate the retail innovative industry.
In this regard, the advantages of the application of the smart connected method can help Ally Fashion improve the quality of its employees. The electric shirts can help Ally Fashion to identify the talented pool of candidates for its effective and successful business. This is important as the company can gain a competitive edge over the rivals and the competitiveness in the market can be maintained. As stated by de Jong and van Dijk (2015) the applicaton of the marketing mix elements can help Ally Fashion conduct and undertake a proper marketing research. For example, one of the elements of the marketing mix is the place of the stores. The convenient location of the stores can help people to visit the place and help the company to provide effective home delivery services. This can help the company to reach out to its customers in the Australian domestic market.
It can be said that the aim of Ally Fashion is to maintain the satisfaction of the customers and ensure that the profitability increases. According to Kogan et al. (2017), the application of the electric shirts can help Ally Fashion to maintain the profitability of the business. Therefore, aligning the interests of the company need to be maintained so that can help in providing it with stability in the market. The application of the electric shirts can identify a stable approach that can help the company to maintain its reputation in the business so that it can remain competitive in the market. In this case, it can be said that the company need to shift its focus on maintaining the satisfaction of the employees as well. This is mainly because of the controversy that hit the reputation of the company along with the viability of the employees.
However, Ally Fashion needs to undertake researches that can help in identifying the proper and appropriate application of the electric shirts. According to Kleinknecht (2016), researching about the application and adoption of new products and tools can help a company analyse its potential advantages and disadvantages. In the case of Ally Fashion, the research about the applicaton of the electric shirts can help in analysing the threats that it may receive from the business markets situated in Australia. One of the biggest threats that Ally Fashion can expect is the proper applicaton of the finance and increase in revenue of the employees. As stated earlier, providing proper wages to the employees have put the reputation of Ally Fashion in jeopardy. The threats of the company need to be analysed so that any investments made can be without any type of risks. The loyalty of the employees can be attained if the wages are distributed in a proper manner and the consequently motivation is provided that can help in securing jobs for the employees.
Apart from the above mentioned risks, Ally Fashion need to analyse the inventory capacity. This can help in the proper storage of the electric shirts so the company can maintain balance between the demand and supply. The managers of the company need to formulate alternative actions so that any type of risks associated with it are mitigated. As observed by Porter and Heppelmann (2015), the application of a detailed business model can help Ally Fashion maintain its aims and objectives. Every business model canvas provides a detailed analysis of the strategies that are needed to be incorporated in the company so that success can be maintained. The adoption of the business model canvas proposed by Osterwalder and Pigneur can help Ally Fashion analyse the business market and formulate strategies against the competitors.
In the words of Lusch and Nambisan (2015), gaining profit cannot be the sole motive for a company. The satisfaction of the customers can be maintained by proper application of the products and identifying the manner in which the product can be promoted. This includes using social media assistance. Therefore, the expectations of the customers from the company are high. The application of sustainability factors can be one of the corporate responsibilities that can be undertaken by the company. For example, Ally Fashion can reduce the use of excessive waste products so that it does not pollute the environment in any manner. The wastage from the manufacturing of clothes can have a negative impact on the environment and may cause social problems for the people. .
Conclusion
Therefore, it can be concluded that application of a proper business model canvas, can help Ally Fashion maintain its position in the markets of Australia and at the same time progress with the loyalty of the employees and customers. The loyalty of the employees and customers are important as it can help in attaining the goals of the organisation. Therefore, innovation as well as sustainability can ensure that Ally Fashion can remove its criticism and maintain its status in the business markets of Australia.
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