Impact of Innovation on Aveva PLC

This essay evaluates the impact of innovation on the business operations, sales, and profit of Aveva PLC, a software developer. It discusses the relationship between technological change and economic progress, and the company's approach to innovation. The assessment also highlights the importance of innovation in driving economic growth.

BUSINESS ENVIRONMENT
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Table of Contents
Assessment Task One: Evaluation of impact of innovation on Aveva PLC..............................3
Introduction............................................................................................................................3
Innovation...............................................................................................................................3
Impact of technological change in economic progress...........................................................3
Company overview.................................................................................................................4
Impact of innovation on sales, operations, and profit of Aveva PLC....................................5
Conclusion..............................................................................................................................6
Assessment task Two: Activities of Bovis Homes group PLC related to corporate social
responsibility (CSR)...................................................................................................................7
Introduction............................................................................................................................7
Describing corporate governance...........................................................................................7
Explanation of four areas that make up CSR.........................................................................7
Application of Archie Carroll’s Model in Bovis Homes Group PLC....................................9
Conclusion............................................................................................................................10
Reference list............................................................................................................................11
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Assessment Task One: Evaluation of impact of innovation on Aveva PLC
Introduction
Innovation refers to introducing new product, process or services that can help organizations
to meet expectation of potential and loyal customers. Purpose of this essay is to evaluate
impact of innovation on business operation of Aveva PLC, a software developer. This study
is discussing that innovation have great impact on operations, sales, and profit.
Innovation
Rate of technological change along with its nature is included within technological
innovation. As opined by Hess et al. (2016), technological innovation is contributing to the
development of society since 1700s. In the fields of Science and Development, inventions
and technical knowledge is getting exploited in order to ensure implementation of innovation.
Organizations implement innovation for meeting expectation of customers and this approach
helps them to enhance generation of revenue. It helps to offer new products with
advantageous features to potential customers. On another hand, Pisano (2015) have
mentioned that companies get opportunity to provide better experience to their current
customers, which leads to increasing level of customer satisfaction. People often
misunderstand innovation and treat it as invention. However, this concept is incorrect and
treating innovation as invention cause emergence of ethical issues while implementing
innovation within business.
Economic development and innovation are closely related to each other. Souto (2015) have
stated that innovation provides opportunities to organization retain existing customers and
helps in attracting new potential consumers. Innovation helps organization to satisfy needs of
customers and due to this reason, profit generation get enhanced. As implementation of
innovation influence companies to earn maximum revenue, they eagerly contribute to the
economy of concerned country. Organizations such as Aveva PLC involve their employees in
implementation of innovation within business as this approach helps to improve performance
of business and organization ensure generation of maximum revenue.
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Impact of technological change in economic progress
Economic progress and technological change are interrelated with each other as these aspects
complement each other. As discussed by Lau and Lo (2015), technology has become a part of
today’s business world and it is considered as the primary source of economic progress.
Technological change is taking place in every sector and it can be noticed that it has positive
impact on economy. Most of the people show reluctant to implementation of change as they
fail to understand importance of change within business. Management of organizations
implements technological change in order to reduce human effort. Cost of hiring and
managing human resource reduces after implementation of technological change. On another
hand, Strand et al. (2017) have contradicted that it increases level of accuracy in business
performance. It can be observed that technological change provide opportunity for learning
new skills and enhancing technical knowledge. Many organizations such as aveva PLC
provide training to their employees in order to enrich their knowledge regarding technology.
According to Bouncken et al. (2018), this aspect can be considered as helpful to increase
individual performance and firms can meet expectation of their customers. Satisfied
customers help in increasing profit generation and economic growth of company.
Changes in technology allow business owners to collect primary resources for their business
and they deal with organizations with various types of business operations. Technological
change leads to enhancement of economical benefit and growth of GDP get ensured within
concerned Country. As opined by Zhou et al. (2017), technological changes allow
organizations to change their business process and they deliver products as well as services
within minimum time period. However, there is another strong impact of technological
change that impacts on economic progress. It allows performing all tasks of business within
minimum time period and helping organization to focus on customer management.
Employees get opportunity to focus on other practical tasks in order to help organization to
earn maximum financial benefit. As opined by Mazur et al. (2016), generation of maximum
revenue allows firm management to provide increment to employees and their economic
condition improves. Economical condition of country improves as this aspect contributes to
GDP. In this way, implementation of technological change is impacting on economic
progress of company as well as the country.
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Company overview
Aveva PLC offers industrial software to people from all over the world and their
innovativeness is supporting them to meet expectation of their customers. This multinational
company is gaining maximum financial benefit through their innovativeness. This company
faces ICT issues while developing industrial software. Emergence of ICT issues prevents this
company from delivering software to client within deadline. Due to this kind of issue, this
company faces financial loss. However, innovativeness of this organization helps
management to mitigate both ICT and financial issues (Sw.aveva.com, 2019). They
understand requirement of customers and develop software accordingly. Affordable price of
their software influence maximum potential buyers to their products.
Impact of innovation on sales, operations, and profit of Aveva PLC
Implementation of innovation within business process helps Aveva to improve business
operations. As opined by Saeidi et al. (2015), innovation such as introducing technological
advancement reduces human effort and provides opportunity to firm to maintain business
ethics. Aveva provides values to their employees and motivates them to think innovatively.
They ask their employees to share their opinion regarding introducing innovative software.
Employees of this company have freedom to take part in decision making and mutual
understanding between employees and management is helping this organization to maintain
ethical business practice. As discussed by Hess et al. (2016), well-designed corporate
governance of this company is helping them to develop software as per market demand.
Customers are getting various options of software and they are choosing product as per
requirement of their business. Corporate governance is helping in employee management and
Aveva is ensuring engagement of employees in implementation of innovation
(Sw.aveva.com, 2019). Due to this reason, this company is being able to attract maximum
customers towards their business and sales rate is increasing day by day.
Innovation greatly influences business operation of Aveva as management modifies business
process as per function of innovation within their organization. For example, marketing
department modifies previous marketing plan in order to implement innovative one to attract
maximum customers. On another hand, they are arranging training program for their
employees in order to develop innovative products for their existing as well as potential
customer. Pisano (2015) has mentioned that changes in operation ensure delivery of best
quality industrial software and good quality services to customers. Innovative marketing
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strategies of this company help them to attract maximum potential customers and maximum
revenue is generated. This financial benefit allows this firm to provide sufficient wage top
their employees (Sw.aveva.com, 2019). In addition, it can be seen that they are being able to
invest more money in research and development department. This action in future may help
this company to generate more profit through their business (Lau and Lo, 2015). As
innovation is positively influencing business operations, sales of product and profit
generation of Aveva, it is important to maintain this business practice by introducing
innovation continuously within business.
Conclusion
From the above discussion, it can be concluded that innovation has become a part of
industries and it is helping in economic progress. Business process is being integrated and
provision of better service within minimum time period is being ensured by implementation
of technological changes. Lack of innovation cause ICT issues and business owners face
financial loss due to this reason. It has been mentioned that Aveva is implementing
innovation continuously as this aspect is helping this firm to improve business operation,
sales of product and profit generation. This company needs to focus on innovation in near
future as well as this approach may help them to ensure economic progress.
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Assessment task Two: Activities of Bovis Homes group PLC related to corporate social
responsibility (CSR)
Introduction
Corporate governance and CSR is an essential part of managing operations in an
organization. Corporate governance helps to run a business as per desire and need of
stakeholders. Corporate governance and CSR policies are managed by board of directors of
an organization. Bovis homes group PLC is a British house construction company, whose
headquarter is located in Kings Hill.
Describing corporate governance
Corporate governance can be defined as different rules and practices, which helps to direct
and control an organization in a proper way (Donate and de Pablo, 2015). Board of director
plays an essential role in framing corporate governance of an organization. They ensure
fairness and accountability while managing different stakeholders that eliminates the risk of
discrimination. As opined by Zhang et al. (2015), corporate governance framework includes
contracts and agreements between stakeholders and company, providing proper opportunities
to stakeholders. Corporate governance helps to ensure proper supervision and control to
different operational processes. In return, this aspect helps in flowing of information within a
firm.
Board of directors are liable to design governance policies ethically that can eliminate risk of
discrimination. Board of directors in Bovis homes group PLC has maintained high ethical and
moral standards to govern their employees (Bovishomesgroup.co.uk, 2019). Main
components of corporate governance in this firm are integrity, trust and high amount of
transparency. Moreover, argued that proper communication is another essential responsibility
of board of directors towards essential stakeholders like customers and employees. Proper
communication can help to preserve interests of all stakeholders. In addition, proper
understanding of various interests of stakeholders can be gained by communication. Hence, it
is a main responsibility of directors of an organization.
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Explanation of four areas that make up CSR
Corporate social responsibility is modern strategy that helps in improving quality of society,
community and different essential stakeholders. Archie Carroll has framed a four-part model
of CSR that has helped in proper understanding of CSR.
Figure 1: Pyramid of CSR
(Source: Influenced by Carroll, 1991)
In the above figure, it can be seen that there are four types of responsibilities that an
organization needs to perform. First identified responsibility is economic responsibility. CSR
policies need to be framed in such a way that is proved to be profitable for society, and other
essential stakeholders. As mentioned by Tricker (2015), CSR policies must have the
capability to generate profit and be sustainable in nature. For example, campaigning for
social cause can be proved profitable for both company and society. Improvement of society
can be proven beneficial for society and promotion of company can also be done.
Legal responsibility is another essential part of this pyramid of CSR. As said by Al-Najjar
and Clark (2017), CSR policies must be framed in such a way that eliminates risk of legal
issue. An organization needs to obey laws and rules that are framed by society. Legal aspect
can be maintained while dealing with different operations like employment and health and
safety of employees. In addition, legal aspects need to be maintained while performing
competition in the market. Illegal way of market competition proves detrimental for a firm
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and deteriorates business environment. Level of trust also decreases, which diminishes
cooperation among various players of the market.
Ethical responsibilities are another essential part of CSR and each firm need to function
ethically while setting different operational practices. As opined by Jiang and Wong (2016),
maintenance of ethics in CSR helps to fulfill expectation of society. Board of directors of a
company needs to act ethically and morally that can help to increase satisfaction rate of
essential stakeholders. For example, treatment to suppliers and customers need to be done in
an ethical way. In addition, suppliers of a large company need to be treated ethically that can
also help a firm to fulfill requirements of law. Moreover, Reinecke and Ansari (2016) argued
that conducting CSR in an ethical way helps to eliminate wrong and perform right even when
law has not forced business to do so.
Society also expects that an organization will be good corporate citizen. Philanthropic
responsibilities is another part of this CSR pyramid. A business company needs to provide
essential resources in order to improve education and culture of a society. This factor
increases sustainability of business and increases satisfaction rate of community. For
example, arrangement of educational program and functions to reduce malpractices in society
can help to improve brand image of a firm. Hence, both firm and society will be benefited by
this approach taken by the organization.
Application of Archie Carroll’s Model in Bovis Homes Group PLC
Carroll's model can be applied in framing CSR policies for Bovis homes group PLC. This
organization can frame long-term strategies, which can help them to earn profit. This, in turn,
can help this firm to provide benefit to society. Most essential part of CSR model is economic
responsibility that can be fulfilled by attracting more customers and serving them in a proper
way (Formentini and Taticchi, 2016). For example, this organization can frame strategy to
build more apartments that can accommodate more families at cheaper prices. This can help
to fulfill desire of community as they will be able to gain houses at cheaper rates. In addition,
sharing of profit to employees and suppliers can help bovine to satisfy employees and
suppliers.
Bovis homes group is a large company in construction industry that needs to avoid legal
complications. Any sort of legal complications like inequality, poor health benefits to
workers and low safety at construction site may impact on brand image. Reputation of an
organization can decrease if any legal issue arises (Crowther and Seifi, 2018). Hence, they
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need to fulfill second category of Carroll's model that is legal responsibilities. For example,
increasing transparency in accountability and providing health and safety benefits to workers
who are working in different construction sites. This can help them to avoid any legal
implication and achievement of employee satisfaction can help them to win market
competition. In addition, bovine group needs to maintain legal laws and legislation while
constructing that can help them to increase satisfaction rate of customers and different needs
of society can be fulfilled.
Bovis conducts all its operations in an ethical way and maintains moral standards. However,
proper ethical standard needs to be maintained by this organization during performing
business. For example, ethics must be considered while making contracts and agreements
with customers. Moreover, legal and ethical standard must be maintained during allocation of
tasks to workers. For example, fixing proper work hours per week and application of policies
without discrimination are required. Ethical standard can be maintained by bovine homes
group during selection of raw materials. As mentioned by Flammer (2015), proper service to
customers in an ethical way increases satisfaction rate and that impacts consumer loyalty.
Using proper materials can improve quality of service and ethical standards can be
maintained.
Bovis can become good corporate citizen by providing good quality service and products at
affordable prices. As stated by Souto (2015), providing quality materials can help to meet
various needs of community. Staffs of this company need to be involved to start public
relations campaign regarding various operations of this firm. This can help to increase
engagement of community with different operations of this organization. Moreover,
campaign regarding need of education and discarding malpractices like addiction to drugs can
help bovine to maintain philanthropic responsibility.
Conclusion
From the above discussion, it can be concluded that corporate governance is essential part of
operations that help a firm to achieve desired business objectives. Proper policies and rules
can help bovine to earn more profit that can impact both on company and society. Different
CSR policies like maintaining ethical standards and legal guidelines can help to conduct
business sustainably.
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