Artificial Intelligence: Innovation in Retailing Industry

12/13/2019
RUNNING HEAD: CREATIVITY AND INNOVATION
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Innovation and
Creativity
Student’s Details-

CREATIVITY AND INNOVATION 1
Artificial Intelligence: Innovation in Retailing Industry
Innovation refers to adopting a new process or making a creative change into the existing
process that can satisfy the market needs and provide value to the customers. Innovation is
needed to be in the creative way that is determined by the new ways of doing things. The
innovation practice at the workplace can be helpful in the facilitation of the value and
enhance the customer experiences (Tidd & Bessant, 2018). Here, the essay will discuss the
example of innovation and creativity in retailing industry. The example is taken out in the
form of artificial intelligence which is the innovation made in Woolworths for increasing the
customer experience and is the creative way to serve their customers. The essay will discuss
the innovative practice in detail and also the impact of the innovation and creativity on the
retailing industry and the future development that could be led by the innovation made.
Artificial Intelligence (AI) is regarded as the human intelligence to be possessed by computer
systems and development in the machines for problem solving (Russell & Norvig, 2016). It
is one of the most creative and innovative practice that simplifies various operations in the
retailing industry and provides the personalized experience to the customers. AI is used by
Woolworths as innovative solutions for the customers. More specifically, the company has
incorporated the voice-enabled shopping experience for the customers. The company has
built the virtual assistant on WooliesX which is the digital platform for the selling the
products. This is the innovative practice to be used by the company and at the same time it is
creative approach to be adopted by the company. It is creative in the sense that it is unique
from the competitors and has can provide unique to their customers. This has significant
impact on the company as it has facilitated in the enhancing the shopping experience and
more personalized experience (Crozier, 2019). The new division called WooliesX has been
a combination of the digital customer experience, ecommerce and the technology. This has
affected the retailing industry to a larger extent in which the industry has enabled the
excellent customer service through the AI-powered intelligent search made in every query
searched made by the customers provided the best solution to the customers (Berry, 2019).
This has made operations of the company more efficient and also made their satisfied and
thereby making the company profitable.
There is huge impact of innovation on the concerned industry that brings huge success to the
company. It facilitates the business to bring innovative products and services that can make
the customers satisfied and also improve the efficiency through the use of the new and

CREATIVITY AND INNOVATION 2
creative ideas that can bring the profitability to the business. Similarly, use of Artificial
intelligence has significant impact on the retailing industry. This impact can be well
understood by the application of Rogers Diffusion Innovation Theory. This model is given by
E.M. Rogers who categorized the consumers into five different categories who will adopt the
innovation (Desmarchelier & Fang, 2016). Firstly, there are innovators who will accept
and carry out the innovation and thus the company targets them when introducing the
innovation. Early adopters under the model are comfortable with the innovation and make
strategies for the change. This can be seen from the case of Woolworths, wherein the
managers worked effectively for bringing the change.
Further, there are early majority who are the people that rarely accept the innovation and
needs stories make them believe the benefits of the changes made. Fourth category in the
innovation model is the late majority in which people who will accept the innovation only
when the majority people have accepted the innovation. Lastly, laggards do not show interest
in the new innovation and prefer to use the traditional way of doing things (Miller, 2015).
Thus, it can be understood that the innovation has impact on the different kinds of people.
Moreover, introduction of AI in the supermarket industry has various kinds of adopts on
which it places a major impact as different people have different perceptions about the new
technology to be introduced.
The industry is largely affected by the innovation introduced as it provides an opportunity to
accelerate the business process and also increase the efficiency. The company making the
innovation can get affected in the sense that it can give better product and service to the
customers and also it can make the operations effectively. Besides, innovation introduced
within the company requires training and the effective execution of the innovation process
that can be a challenge for the company. Apart from this, the company can get competitive
advantage over the competitors through the innovation and can get the attention of customers
onto the product or service of the company. The business can be improved through the
innovation and can create the ability to make the profits into the long run (Hagberg, et al.,
2016). Thereby, the business can make new partnerships and relationships with the
introduction of innovation.
By the introduction of the Artificial Intelligence, Woolworths have been affected in certain
ways. As Woolworths is into the retailing industry, it has been able to provide personalized
experiences for their customers and also been able to increase the efficiency (Crozier,