Future Innovation Capabilities of Tesco

This report discusses the future innovation capabilities of Tesco in the retail industry, including trends such as digitalization, drone delivery, and self-driving cars.

CW2: Individual Report: A full report
comprising an action plan roadmap for the
development and implementation of the
innovation capabilities of the Tesco
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Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
The Future of the Industry 2020 and Beyond..............................................................................4
Organisational innovation requirements 2020 and beyond.........................................................5
Building of the future innovation capabilities for an organisation..............................................7
Conclusion.......................................................................................................................................8
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Executive Summary
This report is the continuation of CW1 where focus is provided over future innovation
capabilities of Tesco. In CW1, identified about the historical development of Tesco along with
current performance in marketplace. Now, in CW2 identifying future innovation capabilities and
industry trends. It has been identifying that future trends of retail industry is digitalisation that
will be beneficial for them in achieving better outcomes within minimum time. In future,
digitalisation work in different ways such as providing services to the customers through drone,
Doddle Parcels etc. These will be effective and useful for them in increasing of their capabilities within
future. Google self-driving cars are best innovation for retail industry. This will help them in protecting of
environment from the pollution. In this car, there will be no requirement of men because this is an
automatic car delivering the services to the customers. Main feature of this car is to pick up the product
from company to provide this to the customer at their place.
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Introduction
Innovation refers to the development of new value and capturing value within an innovative
manner. In simple word, innovation is the development, creation and evaluation of a new
services, process or products, with purpose of improving effectiveness, competitiveness and
efficiency. Along with this, innovation capability refers to the ability of an organisation in
identifying the new ideas and transforming them into new process, products or services that
benefit the company. Innovation within an organisation has different roles i.e. solve problems
easily, increase productivity, help to sussed over competitors, improve business growth, increase
customer base etc. These are considered main roles and importance of innovation within a
workplace, which will be essential for company in attainment of competitive advantages in
successful and effective manner.
Main purpose of this report is report is developing the innovation road map that outline the
preparation of innovation process. For this report, Tesco is a chosen organisation that is
mentioned in CW1. Tesco is a British multinational groceries and general merchandise that
founded in 1919 by Jack Cohen, and headquartered in Welwyn Garden City, England.
This report divided into different parts that include some information such as future of the
industry 2020 and beyond, organisation innovation requirements 2020 and beyond and designing
a plan of action or roadmap. These are major information that will be needed for carrying out this
report in successfully.
The Future of the Industry 2020 and Beyond
Tesco is a selected organisation that works within retail industry. Retail introduces to the
activity of selling products or services to consumers or end users in direct manner. In addition,
this is the process of selling goods and services to the customers via multiple channels of
distribution, with aim of earning profit. According to the information collected for CW1 is has
been determined that in year 2016, retail industry has moved out under large transforming along
with its quality standards, considerations of competition between organisations and in budding strong
brand names surrounded by all businesses bringing out innovative parameters of innovation. With a leans
of the future, retail industries are re-imaging stores on behalf of digital age by using technology to
develop new experiences as of product discovery to checkout. Technology is one of the essential and
significant parts of the business and growth because with the help of this, they can easily attract larger
base of customers and also attain competitive advantages in successful manner. Use of digital technology
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help retailers i.e. Tesco in its future growth and development because this will help them in increasing
customer base, maximising the sales, improving growth, saving time, increasing brand awareness and also
developing strong brand image in marketplace and in customer’s mind. For example: Covid 19 is a
pandemic situation and in this use of technology is more beneficial and essential in its future growth.
Artificial intelligence within retail industry is being used in innovative manner across the whole services
and product cycle-from gathering to post-sale customer service interactions. Along with this, there are
different categories that will be beneficial for retail industry in its future. These are sales and CRM
applications, customer recommendations, manufacturing, logistics and delivery, payment and payments
systems etc. Drone delivery is another trend within retail industry that will be useful in its future and
beyond. This technology helps retail sector i.e. Tesco in delivering of their products and services to the
customers. This technology save time and cost as well as also protect customers from Covid 19. This
technology reduces the cost of labour ad increase the efficiency of the services.
Doddle Parcels is an innovation that will be essential and effective in future of the retail industry.
This is an effective trend that works as delivering the services to the customers. Doddle Parcels is a type
of delivery service that to be found in and around train stations within UK. Using Doddle, clients can
send, rise up or return packages within 7 days a week. Along with this, there are different innovation
retail trends to watch within 2021. These are: social commerce, an innovative approach to influencer
marketing, online stores in offline spaces, increase in smart speaker shopping etc. All these are essential
and valuable in future and beyond of retail industry. All these are important and essential for retailer i.e.
Tesco in accomplishment of competitive advantages in successful and within minimum time of period.
Organisational innovation requirements 2020 and beyond
It is must to determine the current innovation requirements for future development of an
organisation. The method which is best in this respect is to compare the industry trends with
organisational current offerings. This not only help in determining current positing of an
organisation but also help to ascertain points on which further needed to work for gaining
sustainable future in market. It is important for the management of an organisation that focus
over all the different points attached with an organisation functioning such as technology, permit,
human resources, capital, communication system etc. Tesco is multinational retail organisation
which having business operations at world-wide level. In retail industry, Tesco having vast name
and position due to effective amount of functioning in market. This depicts that management of
an organisation is focused towards the usage of current and trendy tools for operating functions
along with an adopting new changes as per recent trends. Afterwards, there is scope left
regarding improvement of business through identification of innovation requirements. This is
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identified below with the aid of comparison between organisation and industry working by
focusing over different determinants such as technology, permit, human resources, capital and
communication system.
Technology: In terms of technology, Tesco is advanced and using many of the different
tools and techniques. This includes online payment gateways, Omni channel promotions, digital
advertising, contact less billing and delivery etc. There are many other different technological
aspects which are used by other players of market or exist in industry such as artificial
intelligence in operational functions, drone delivery, environment friendly logistics, robotics for
operational activities etc. So, these are different existing options which will be adopted by an
organisation in future to improve the functions or business. Application of these all not only
helps to improve the operational capability but also aid in providing quality offerings that brings
jump in brand image in market among consumers.
Human resources: Tesco is large organisation and having business operations at world-
wide level. Millions of employees already working within an organisation which are competent
in nature of delivering effective services to their existing and potential new consumers. Other big
players of the market like Sainsbury and Walmart having the millions of employees along with
development team that working in the direction of developing team that is competent to perform
in diverse conditions along with retain in organisation for longer period of time. In this direction,
Tesco already having different teams but to compete in market getting edge from other they need
to add technology in such services along with competence. This will not only help to develop the
team at global level but also providing an opportunity to improve the image in market and
industry where new clients and candidate will approach to an organisation to be part of the same.
Communication system: Tesco is multinational organisation that prevail effective
communication system at premises in world-wide level. This not only helps in performing
effective internal communication but allows being in touch with external parties. The different
systems exist or used within an organisation includes e-mail, digital media, intercoms etc. The
communication systems used by other players in market are quite same. The difference is the
usage of AI and AR in same to make in more automatic and self-result generated. It is must for
the management of Tesco to focus over the usage of these in their communication systems to
make more effective and relevant. This not help to generate the information but in performing
multiple functions on single point of time.
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Building of the future innovation capabilities for an organisation
This part includes the building of a roadmap for an organisation in development of the future
innovative capability. It also includes the preparation of implementation plan along with
development of various tactics that help in getting successful result from same. Out of the
various options that exist in front of the Tesco regarding development of future functions,
technology improvement is best. In this, they have to focus over improving logistics through
usage of AI and AR. This not only helps in saving cost but also aid in support the movement of
go green. Here, they have to use the AI and AR in reducing carbon emission along with building
capacity of driverless delivery Trucks. This saves the cost along with emitting unnecessary
contacts from the products which is important in post COVID period to reduce contamination.
The large number of benefits associated with this nature innovation like improvement of
organisational brand image, support of society to be green in operations, improved profit margin,
and large amount of investment from the stakeholders and optimum utilisation of human and
capital resources. In future, this will must help an organisation to get competitive edge in market
where the able to present themselves differently from the competitors along with attracting the
new potential consumers towards their offerings. The different points on which further need to
work for the effective implementation of this technology within an organisation is provided
below along with devised nature of planning and tactics;
Designing and research team: This is the team on initial level necessarily to be developed
by an organisation. This team having main work related to analysing market, logistics and
different options of implementing AI and AR within delivery system or developing environment
friendly and driverless trucks that able to use the navigation in searching of destinations and
reaching at point without any interferences and consequences. Here, they have to first identify
overall logistics options and delivery routes along with transformation or rebuilding of suitable
one’s with the aid of new technological choices that aid in attainment of desired innovation
objective. The process is not that short as it looks. Here, they also have to focus over building of
the new ones. This increases the cost and investment of an organisation but research and
development team simultaneously having the work to arrange in budgets along with up to the
limits through which they able to gain benefits in future.
Operational team:
Cost:
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Conclusion
From the above mentioned information, it has been concluded that innovation within an
organisation helped company in improvement of its growth and success at national as well as
international marketplace. There are different future trends discussed that is essential and
valuable for the growth and development of retail industry. Digitalisation is a biggest trends that
helped business organisation in every situation i.e. Covid 19. With the help of digital
technologies, retail industries are able in attracting larger base of customers and also maximising
their sales ratio. It has been determined that innovation is important for the company in present
as well future time period because with this will help them to easily increase their sales and
improved their brand image in marketplace. From the above mentioned findings, it has been
concluded that there are different organisational capabilities including technology, permit,
human resource, capital, communication system and many more. All these capabilities helped
retail sector in accomplishment of competitive advantages and also maintaining their strong
position in marketplace. Google self-driving cars is a best innovation future trend for retail
industry. It has been concluded from the above findings that Google self-driving cars will help
retail industry in delivering of their services to the customers without person requirement and
this will also help in protecting the environment from pollution.
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