The Importance of Innovation and Technology in Organisations

This report highlights the importance of innovation and technology in driving growth for nations, societies, and organisations like Aveva Plc. Corporate governance practices and adherence to CSR rules are crucial for an organisation's success and societal responsibility.

BUSINESS ENVIRONMENT

Table of Contents
INTRODUCTION................................................................................................................................3
TASK 1.................................................................................................................................................3
1. Demonstrate an understanding of different types of innovation and technology and how they
have impacted the economic progress of the country, with particular emphasis on business
organisations....................................................................................................................................3
2. Give practical illustrations of how innovation and technology have impacted the operations,
sales and the profits of your chosen company.................................................................................4
TASK 2.................................................................................................................................................5
1. Demonstrate an understanding of corporate governance.............................................................5
2. Explanations of Archie Carroll’s Pyramid of CSR: - Economic responsibilities, legal
responsibilities, ethical responsibilities and philanthropic responsibilities.....................................6
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9

INTRODUCTION
Business environment refers to a factor which is made up of several number of internal and
external elements, so that organisation can perform their functions and also serve their profits for
attaining their goals and objectives. For completing this report, the chosen organisation is Aveva
Plc, which is one of the biggest technological organisation of the world. This report will help in
detailing about that what is innovation and technology and how this help in economical growth of
an organisation. Along with this, a study will take place on impact of innovation and technology on
sales and revenue of Aveva Plc (Apăvăloaie, 2014). Another part of report will help in explaining
that what is CSR activities and also how this is useful for an organisation.
TASK 1
1. Demonstrate an understanding of different types of innovation and technology and how they have
impacted the economic progress of the country, with particular emphasis on business
organisations.
Innovation refers to new and unique ideas which are very much creative, so that organisation
or individual find some solution for any problem or can introduce some thing different at their work
place. Where as, technology is referred to techniques, process, and methods which are use by them
so that they can produce good quality products and services in efficient and effective manner.
Technology and innovation are inter related elements, as a person or organisation having innovative
mind set are able to invent new technologies in their functioning and also are able to implement
new technologies in effective manner. Where as, organisations and individuals having new and
good technologies in their functioning are able to implement some innovative ideas in their
functioning in effective manner. This will help them in improving their functionality and also help
in increasing effectiveness of functions performed by them. In this task, a discussion will take place
on impact of innovation and technology on economical growth of a nation. UK, is one of the
biggest business environment of the world, and use to provide a good business place, so that
organisations can implement some innovative ideas in their functioning and also help them in
implementing new technologies in their operations. This all help them in making effective and cost
efficient process of production (Bah and Fang, 2015). As innovation and technology help an
organisation in increasing their sales and revenue along with their profits, which directly results in
growth to nations economy.
Innovation is very much important for an individual, organisation and for a nation, as this
help them in implementing some thing new and unique in their functioning, so that they can grow

and develop their business operations. When it come to innovation in UK, it is very much clear that
Britain is very much rich in this. As there are number of innovation made by entrepreneurs of UK,
which has contributed in their and as well as in nation's economical growth. There were ample
number of innovations made by them like, steam engine, electric cars, and electricity. These all has
played an important role in development of UK's economy, as these are highly demanded
innovation in the world related to technology. Along with this, different nations of world use to
make contact with them, so that they can buy these innovative technologies, which results in
increasing revenue of organisations which use to produce and sell these products. This has helped
UK in becoming a hub of organisations which are good at innovation and different huge
organisations of world are trying to make contract with them. This all results in increase to over all
revenue of nation by increasing import and export in business environment of them. In present
content Aveva Plc, is one of the biggest software making organisation of the world. It was founded
in 1967 at Cambridge, UK (Botha, Kourie and Snyman, 2014). They use to produce software for
engineering and for industrial work. In 2017, they use to make collaboration with Schneider Electric
software, which has helped them in becoming one of the biggest software organisation of the world.
They use to provide software related to IoT, AI, and cloud. Their main innovation is for engineering
and industrial software is that, they use to produce software which have Artificial intelligence,
Internet of Things and have ability to access cloud by which software is connected. This is very
much unique and innovative, as it is not easy for any one to produce software which have all these
ability. This make a software very much capable to work by their own, so that they can appropriate
decisions in different conditions. This all lead Aveva Plc to make collaboration with Schneider
Electric software, to become one of the biggest software organisation of the world. This all has
increase the sales and revenue of them, and also help them in attracting economy from different
nations of the world. Along with this, it results in growth of themselves, so that they can play big
role in economical growth of nation.
2. Give practical illustrations of how innovation and technology have impacted the operations, sales
and the profits of your chosen company.
Technology industry is very vast and also very rapidly changing in nature, therefore, for an
organisation dealing in technology sector it is not very much easy to develop technologies which
sustain for long time period. Internet of Things, Artificial Intelligence and cloud is one the leading
technologies in software industry, as each and every individual in world use cloud in their day to
day life and also business entities working in business environment of world use this service (Cai
and Yang, 2014). This help them in saving their information and data on server, so that they can
make interaction with it from any where. Along with this, it help them in fetching and retrieving

required data from any part of the world, so that their working become easier. Along with this,
Internet of Things is a technology in which different digital and electronic devices come in contact
of each other, so that they can communicate and share required data and information. This all done
with the help of internet. This help different systems to share different information and data, so that
they can communicate and provide required set of information which is required by another system
to complete their tasks. Another latest technology is Artificial Intelligence, it is the most widely
using technology in the world. As this use to provide intelligence to system, so that they can take
required decisions by them own and also help them in improving their working with more
effectiveness. Aveva Plc use to produce and sell software which are designed with having capability
of IoT, AI and cloud (Deasy and et. al, 2015). This has helped them in producing software which are
very much new and unique in market place, so that ample number of customers get attracted
towards products and services offered by them. Along with this, it help them in increasing their
sales and revenue along with their profits, so that they can achieve their goals and objectives and
also can grow their business. It has been analysed that the profit and revenue of Aveva Plc after
adopting new technologies, has been increased at rapid speed. As in 2015, they use to make
software which have ability of either IoT, or AI or can get connected with cloud but in 2017, they
start designing those software which have capability of these all and can perform ample number of
task at single time. This has helped them in increasing their revenue at high speed and also help
them in making collaboration with different organisations of the world, which results in becoming
of the biggest industrial and engineering software producing organisation of the world. As, their
revenue in 2017 – 2018 is increased by about 28% as compared to revenue of 2015. This all has
result them in increasing their profits, so that they can grow their business and economy of nation.
Along with this, it help them in attaining their goals and objectives.
TASK 2
1. Demonstrate an understanding of corporate governance.
Corporate governance is a set of rules which help an organisation to provide roles and
responsibilties for each and every individual, so that work and operations of organisation get
controlled. This help them in managing the interest of different stakeholders, like customers, Board
of Directors, suppliers, share holders and other. In the history of UK corporate governance, there
were ample number of issues faced organisations and by their stakeholders (Hamilton and Webster,
2018). As few years ago, it was not very much compulsory for every one to follow thier policies
related to corporate governance. Due to this only, they organisation start facing problems regarding
this like independency of board, financial reporting, diversity drive, contribution to society and

other. But from last few years, goverment of UK has made it mandatory for each and every
organisation working in thier business environment to follow thier rules and policies of corporate
governance. Aveva Plc, has also faced ample number of problems related to corporate governance
like, Composition of board. The board of Aveva was combination of 1 Chairman, 2 Executive
Directors, and 5 non executive directors out of which 3 are independent. But in the end of year
2018, on 31st March, they use make changes in it, so that they can design more structured board
according to corporate governance (Corporate governance issues faced by Aveva Plc, 2019). This
board use to play ample number of responsibilities in organisation, some of these are explained
below :-
1. Pricing of products : The main roles and responsibilities of board of directors of an
organisation like Aveva Plc is that they have to analyse and identify their products so that
they can adopt effective pricing policy for them (Wetherly and Otter, 2014). This is very
much crucial for them, as this help them in deciding appropriate price for the products and
services they are going to offer their customers, so that ample number of customers get
attracted towards them.
2. Make policies for stakeholders : Along with making pricing policies for products, another
roles which board of directors have to play in Aveva Plc is making policies for stakeholders.
As it is very important of them to make different policies for their stakeholders, so that they
are able to make good relationship with them. This will help them in long lasting the
connection between both of them for long term period.
3. Take appropriate decisions : Along with all this, it is the duty of Board of Directors to take
decisions, which are beneficial for them and for thier future. Along with this, they use to
take decisions related to changes which is necessary at their work place.
4. Develop strategies for future : Along with all this, it is very much important for them to
make strategies for their future, which will help them in future (Hillary, 2017). These
strategies include technological enhancement, and other strategies, which can play a vital
role in future of organisation.
2. Explanations of Archie Carroll’s Pyramid of CSR: - Economic responsibilities, legal
responsibilities, ethical responsibilities and philanthropic responsibilities.
Corporate social responsibilities are some rules and regulations of a nation, wich are
reuqired to follow by organisations peforming thier operations under thier business environment.
These rules and regulations are generally associated with society and with benefit of society. In this
organisations have to make their contribution in development and growth of society, so that both

organisation and society can grow simultaneously. As these responsibilities of Aveva Plc, can be
defined by the use of Archie Carroll pyramid of CSR, which is are explained beneath :-
(Source : Carroll's CSR Pyramid, 2018)
1. Economical responsibilities : This is the lower part of this pyramid, which says that first
social duty of an organisation is to attain some profits. As an organisation can only survive
when they are making some profits by performing their operations. According to this, the
organisation which use to make profits at regular time period, are able to sustain for long
term period (Menychtas and et. al, 2014). And organisation which is able to sustain for long
time period are able to provide benefit to society for long time duration.
2. Legal responsibilities : According to this pyramid, another responsibility of Aveva Plc, is
that they have to follow all the rules and regulations of the nation in which they are
performing their operations and functionality. These rules and regulations are related to
employment, business and other, as following these legislations will help them in getting
safe from any type of legal problem. If Aveva Plc do not use to follow these rules and
legislations of nation then it is very much possible that their licence get cancelled or they
have to pay huge amount as fine.
3. Ethical responsibilities : This is the layer of this pyramid where it is said that, for a
Illustration 1: Carroll's CSR Pyramid

organisation like Aveva Plc, it is very much important for them to perform their tasks in
ethical manner. This will help them in performing right things, and also it is very much
important for them to be fair in different situations, so that they can avoid any type of harm
to them and to their stakeholders. For example, Aveva Plc, have to advertise about their
products and services in ethical manner, so that they can provide right information about the
product or service they are offering.
4. Philanthropic responsibilities : This is the top most level of this pyramid, where it is said
that, after completing above mentioned steps, it is very much important for them to give
some thing back to society (Savrul, Incekara and Sener, 2014). In this organisation like
Aveva Plc have to take care that the operations performed by them provide some benefit to
society and also do not make any harm to them.
CONCLUSION
From the above report, it has been analysed that, innovation and technology is very much
important for an organisation as well as for nation. They use to pose growth in economical
conditions of nation, society and organisation. Also adopting new technologies help an organisation
in growing at faster rate by increasing their sales, revenue and profits. Also corporate governance
are the practice of an organisation which help them in setting up some rules and regulation for
functioning of organisation. Also for an organisation it is very much important to follow CSR rules
and regulation of the nation, so that they can give some thing back to society.

REFERENCES
Books and Journals
Apăvăloaie, E. I., 2014. The impact of the internet on the business environment. Procedia
Economics and finance. 15. pp.951-958.
Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in
Africa. Journal of Development Economics. 114. pp.159-171.
Botha, A., Kourie, D. and Snyman, R., 2014. Coping with continuous change in the business
environment: Knowledge management and knowledge management technology. Elsevier.
Cai, S. and Yang, Z., 2014. On the relationship between business environment and competitive
priorities: The role of performance frontiers. International Journal of Production
Economics. 151. pp.131-145.
Deasy, S. and et. al., VMware Inc, 2015. User interface for controlling use of a business
environment on a mobile device. U.S. Patent 8,954,050.
Hamilton, L. and Webster, P., 2018. The international business environment. Oxford University
Press.
Hillary, R. ed., 2017. Small and medium-sized enterprises and the environment: business
imperatives. Routledge.
Menychtas, A. and et. al., 2014. 4CaaSt marketplace: An advanced business environment for
trading cloud services. Future Generation Computer Systems. 41. pp.104-120.
Savrul, M., Incekara, A. and Sener, S., 2014. The potential of e-commerce for SMEs in a
globalizing business environment. Procedia-Social and Behavioral Sciences. 150. pp.35-45.
Wetherly, P. and Otter, D. eds., 2014. The business environment: themes and issues in a globalizing
world. Oxford University Press.
Online
Corporate governance issues faced by Aveva Plc. 2019. [Online]. Available Through :
<https://www.aveva.com/en/Investors/Corporate_Governance/>./
Carroll's CSR Pyramid. 2018. [Online]. Available Through :
<https://www.tutor2u.net/business/reference/carrolls-csr-pyramid>./