Implementing AI and Robotics in TESCO: An Innovative Proposal

This proposal suggests implementing AI and robotics in TESCO to improve customer experience and gain a competitive edge. It discusses theories and process of innovation, marketing strategies, target audience, and costs.

Innovation and
Enterprise
Assessment 2

Table of Contents
Introduction.................................................................................................................................................3
Overview of innovative practice..............................................................................................................3
Theories of innovation.............................................................................................................................3
Process of Innovation..............................................................................................................................4
Proposal.......................................................................................................................................................5
Justification of idea..................................................................................................................................5
Marketing................................................................................................................................................5
Target Audience:.....................................................................................................................................6
Costs........................................................................................................................................................7
Conclusion...................................................................................................................................................8
References...................................................................................................................................................9

Introduction
Innovation plays an important role in order to produce significant products or services for
the betterment of population. It is result of detailed analysis and evaluation so that the issues that
are being faced by target audience can be resolves easily. The main aim of innovation is to bring
something new in the market with an aim to deal with the issues that are being faced by the
individuals. By developing innovative products, a company can easily grow in the market place.
In the current competitive era, innovation is highly imperative to stay relevant. Adopting
competitive strategies make the company enable to sustain within the competitive environment
for longer period of time (Shao and et. al., 2020). In present scenario, the chosen company is
TESCO that is a well-known entity of retail industry offer groceries and other general
merchandise such as mobile phones, clothing, accessories and more. In present situation, the
organization can facilitate innovation in terms of introducing artificial intelligence and robots in
their outlets across the world. By this way, it is possible to ease out the working practices and it
will also help in terms of providing better experience to the customers.
Overview of innovative practice
In the current scenario, the chosen organization is TESCO that is a well-known brand
name within retail industry. However, they are working within retail industry which is highly
competitive. In this situation, it is imperative for the organization to implement innovative
practices so that they can get competitive edge within the industry. This will also prove useful in
terms of gaining attention of more number of customers significantly. Implementing innovation
will lead the entity towards higher earnings. For this regard, the respective entity is required to
implement Artificial intelligence and robotics within the company. Here, AI will make the
business practices easier. Adopting AI will advance their business functions and make them
enable in terms of keeping record related to business appropriately. Along with AI, they are also
required to follow robotics practices where they need to take place robots within outlets to assist
customers. This innovation will prove useful in improving overall experience of buyers
Theories of innovation
Disruptive Theory: This is an imperative theory of innovation wherein a new product or
service is developed whether by disrupting existing market or creating completely new (Sang,

2021). The main aim of disruptive innovation is to bring something new in the market to offer
the best possible experience to the customers.
Open innovation: Open innovation is a model that is used to promote collaboration among
people and organizations. This is an imperative model of innovation that becomes highly
important when company has several bright professionals having good knowledge outside the
entity. In this context, open innovation can be implemented in different ways like alliance
between companies, crowd sourcing, competition, innovation ecosystems and more.
Sustaining Innovation: It is the innovation which occurs while producing the best
possible products to meet with the needs of some important customers. Here, better-performing
products are creates by the entities (Yubo, 2021). Basically, this type of innovative strategies are
used by such companies which have already gained significant amount of success in market.
Process of Innovation
Step 1: Idea generation and mobilization: It is the starting phase of innovation where
ideas are developed. The best practice to generate idea is to it in team as there are ample of
members hence, it is possible to get innovative ideas and solution promptly. Further, there is
requirement to have suitable vision or goal in order to develop innovative ideas (Sedera and
Lokuge, 2017). In present context, TESCO needs to generate the idea with the help of team
members. This is important in order to get suggestions of different people to develop a creative
practice to deal with the issues that are being faced by buyers.
Step 2: Advocacy and Screening: The second step is advocating or screening the ideas
in order to measure its future benefits and problems. The major importance of the respective step
is refinement. If the idea has potential, enhance it through discussion and arguments (Song, Yang
and Zhang, 2019). In this context, the selected company is also required to screen the idea before
taking the final decision to implement it. Here, advocacy and screening will prove useful in
terms of evaluating the idea in an efficient manner.
Step 3: Experimentation: This stage is about testing the idea with the help of a
prototype or pilot test. The objective merits of ideas are not only tested through experimentation
but it also evaluates sustainability for a particular organization within a stipulated period of time.
Sometimes, experiment might also lead towards new idea with the help of information that

already has been gathered throughout the process. In reference of TESCO, they also need to
evaluate the ideas on different background in order to ensure future betterment.
Step 4: Commercialization: Under this step, market value of an idea is created by
focusing on potential impact in future. By following the respective step, it is possible to make the
idea appealing for audiences (Picciotti, 2017). In this regard, managers of TESCO also need to
focus on commercialization as it clarify them whether they need to continue with the idea or not.
Step 5: Diffusion and implementation: At this stage, the decision needs to make to
further diffuse or implement the idea in real context. In case of diffusion, the knowledge is
broken and idea is not further implemented. On other side, implementation is about
implementing the ideas, facts in real context to get appropriate outcomes (Lei, 2021). In
reference of TESCO, they need to determine through the facts gathered during above steps
whether to diffuse or implement the idea further.
Proposal
Justification of idea
In the present context, the idea is related to implement AI and robotics in the company so
that it will be possible to perform organizational practices in an appropriate manner. The
respective idea of implementing recent & updated technologies is highly relevant in present
context. Here, the technological innovation upgrade the company functions and will allow them
to accomplish set business goals successfully. Additionally, the respective idea is also imperative
to ease out the business practices of the entity as it will help in getting better outcomes in future
period of time. Additionally, AI and robotics make it possible to improve overall experiences of
customers so that they visit to the organization frequently. Moreover, the respective innovative
idea will prove useful in terms of generating high revenue & profit margin for the entity which
will further allow them to sustain in the competitive environment for longer duration.
Marketing
In the present competitive era, marketing and promoting the products or services is highly
imperative to gain better outcomes in future. In case of TESCO, they are working in such an
industry which is highly competitive. For this purpose, implementing the respective idea will

help them in terms of surviving within competitive market place for longer duration. Here, four
P’s of marketing are mentioned below:
 Product: This is a crucial element of marketing mix which includes basic features,
attributes and characteristics of commodities with an aim to fulfill needs of individuals
(Lahtinen, Dietrich and Rundle-Thiele, 2020). In case of TESCO, they are likely to offer
range of products to satisfy needs & requirements of buyers in an efficient manner. In
present scenario, they are looking forwards to implement technological advancements
within business practices to get better outcomes.
 Price: The other element of marketing mix is price. To ensure adequate amount of profit,
there is requirement to set appropriate price of products & services. In this regard,
TESCO ensures to keep the price at such a level which can be afforded by each & every
customers profoundly.
 Place: Place is another most important element of marketing mix wherein the place of
product distribution is determined. In reference of TESCO, it is a large multinational
company that maintains its outlets within different countries across the world.
Implementing AI & robotics will provide ease to the respective company in terms of
providing products to customers promptly.
 Promotion: Promotion is an imperative practice to make people aware regarding the
offerings of the entity (Novela and Hansopaheluwakan, 2018). In case of TESCO, they
are likely to follow traditional and online mediums to promote products at large level.
Use of AI and robotics will improve the advertisement & promotional practices to gain
higher revenue & profit margin.
Target Audience:
To gain significant amount of profit, there is requirement to select target audience in an
appropriate way. For this purpose, STP model is implemented below:
 Segmentation: It is the first step of respective mode wherein the entire population is
segmented in different groups based on geographical, demographical, psychographic and
other aspects (Zhao and et. al., 2020). In present scenario, TESCO segments their
customers based on different aspects to get significant amount of profit in future period of
time.

 Targeting: After segmentation, the next step is targeting wherein the entity used to select
an appropriate segment to target. Target audiences are the individuals who are likely to
target while selling particular products. Selecting a suitable group to target is imperative
to gain suitable outcomes in future. In present case, targeting audience is youth and
professionals as they are highly familiar with the technology. By using updated
technology, it will be possible for the company to attract target group of people.
 Positioning: After targeting, the next step is positioning wherein the products are placed
in the mind of customers in order to formulate better image (Sutanti and et. al., 2018). In
case of TESCO, they are required to position themselves as a customer centric company
by offering better and updated products to the buyers as it will help in enhancing the
revenue and profit margin significantly.
Costs
During implementation of any business idea, it is crucial to consider the expense and cost
incur throughout the process. Here, cost is an imperative element of proposal as it helps in
identifying whether the project will be beneficial or not. After determining the cost, it is possible
for the company to set an adequate price so that they can earn suitable profit to maintain further
sustainability. While assessing cost, there is requirement to consider ample of elements like labor
cost, material cost and other types of in-direct expenses. By adding these all direct and in-direct
expenses, it is possible to determine an appropriate price. In present situation, TESCO is
implementing AI and robotics within the company. For this purpose, they need to do complete
setup which will incur huge cost. Therefore, it is wise to arrange the necessary funds to avoid the
future disruptions. In present scenario, there will be requirement 50000 $ to implement the
proposed idea.

Conclusion
It can be conclude out of the above- report that innovation resulted of detailed analysis and
evaluation so that the issues that are being faced by target audience can be resolves easily. The
main aim of innovation is to bring something new in the market with an aim to deal with the
issues that are being faced by the individuals. In the above-report, the innovation is based on
implementing AI and robotics within the company to get better response and enhance the overall
customer experiences. There is also discussion regarding innovation theories and process in
terms of successful implementation of the innovative idea. The idea is really effective and helps
in earning significant amount of revenue and profit in future period of time.

References
Books and journals
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Novela, S. and Hansopaheluwakan, S., 2018. Analysis of Green Marketing Mix Effect on
Customer Satisfaction using 7p Approach. Pertanika Journal of Social Sciences &
Humanities.
Picciotti, A., 2017. Towards sustainability: The innovation paths of social enterprise. Annals of
Public and Cooperative Economics, 88(2), pp.233-256.
Sang, B., 2021. Innovation of enterprise technology alliance based on BP neural network. Neural
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Sedera, D. and Lokuge, S., 2017. The role of enterprise systems in innovation in the
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Zhao and et. al., 2020, October. Segmentation then prediction: a multi-task solution to brain
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