MGMT20132 Innovation and Sustainable Business Development Assessment 2022

Running Head: MGMT20132 INNOVATION AND SUSTAINABLE BUSINESS
DEVELOPMENT 1
MGMT20132 Innovation and Sustainable Business Development
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MGMT20132 INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 2
Table of Contents
1.0Executive summary....................................................................................................................3
2.0Introduction.................................................................................................................................3
3.0 Discussion..................................................................................................................................3
3.1Problem analysis.....................................................................................................................3
3.2Generated solutions and selection analysis.............................................................................4
3.3Novel value proposition..........................................................................................................5
3.4Target customers.....................................................................................................................5
3.5Competitive advantage and strategic fit..................................................................................5
3.6Critical assumptions and uncertainties related to;...................................................................6
4.0 Report Findings.........................................................................................................................7
5.0 Conclusion100...........................................................................................................................8
6.0References...................................................................................................................................9
7.0 Appendices..............................................................................................................................10

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Executive summary
The article carries out a summary of Woolworths, a business surrounded by advancement
in technology and sustainability trend. The paper will comprise different sections; first, the
introduction will give a brief overview of the business, the technology, and sustainability trend
driving innovation to inspire the development of a novel value proposition. The discussion part
follows; in this section, the findings of the selected technology and sustainability trend
surrounding the business will be discussed. Lastly, a conclusion and a recommendation will be
made regarding the topic under study.
Introduction
A novel value proposition is described as a product or service that is new to original in
specific or organization. The innovative value proposition is designed to impact change in the
organization. In this article, we are going to discuss the novel value proposition for Woolworths.
Woolworths is among the largest organization in Australia and runs about 995 outlets (Rainey,
2010). The organization works closely with the Australian farmers and hence provides the best
quality products to its consumers. The technology trend propelling the industry innovation to
inspire a novel proposition is connectivity. Connectivity refers to organizational links with the
outside world through the use of different technological innovations at its disposal (Stark, 2015).
Sustainable cities and communities are the sustainability trend impacting the business to achieve
a novel value proposition. These sustainability trends and technological innovations are aligned
with the strategic trajectory of the organization.
Discussion
Problem analysis

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Woolworths has been experiencing significant growth in both the retail and the whole
sector. However, it is experiencing challenges of poor communication with both its customers
and its suppliers. The organization is also experiencing a big problem in the sustainment of the
communities and the cities it operates in. The challenge of poor communication has been brought
about by the continued use of old communication systems, which are often unreliable (Gellings&
Parmenter, 2016). Poor communication has led to poor customer service, lower employee
productivity, and it has also led to a significant loss in the business. The challenge of sustaining
the cities and the communities the company operates has been brought about by inconsistent
supplies, poor quality goods, and the changing customer wants. The organization management
needs to understand that for the progress of any company communication is very important.
There should be the best channels of communication between the organization and customers
and the company management with all other staff members working in the same company
(Halme & Korpela, 2014). It is high time for the Woolworths to come up with organized and
well-programmed channels of communication to enhance good service delivery to the customers.
The quality of goods and services offered by the organization is all determined by how
communication programs are underlined in the organization. Innovation is now an important
aspect that should be implemented in Woolworths to make sure that all its processes and
activities are well communicated to the relevant recipients.
Generated solutions and selection analysis
Due to the above challenges, the organization management saw the need to come up with
solutions that were to assist the business achieve a novel value proposition. When dealing with
the problem of poor communication the company, the management came up with the following
solutions;

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Procurement of new modern communication equipment e.g.Mobile phones and computers,
among others.
Development of a company website and other social media platforms.
Introduction of high-speed internet connectivity in the various stores.
Establishing a universal data access system for all the stores
While dealing with the challenge of ensuring city and community sustainability, the organization
adopted these measures (Fernando, Jabbour & Wah, 2019).
Product innovation to meet customers' tastes.
Opening up of additional stores around the country.
Introduction of product and service delivery to the customer's location.
Several solutions to the existing challenges were developed by the company choose to work on
the above solutions and innovation since they could assist in bringing new long term solutions
hence the attainment of a novel value proposition.
Novel value proposition
The solution to the existing communication and sustainable city challenges will
Woolworths to achieve a novel value proposition. The introduction of new ideas and the
improvement of the existing ideas will create a new value to the target customers and, at the
same time, assist the business in market expansion. The procurement of modern communication
tools will facilitate prompt communication between the organization, its customers, and
suppliers. The introduction of a common data access system will enhance the sharing of
information between the stores hence facilitating communication (Evans et al., 2017).The
introduction of goods and services delivery services to the customers and product innovation will
enhance the achievement of community and customer sustainability.

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6 innovation tools and techniques
The innovation tools and techniques were selected on their ability to provide excellent
and robust findings of the conducted research regarding Woolworths (Manage, 2014). The
selected innovation tools and techniques selected are suitable since they offered the steps to be
followed to achieve an advanced technology and a sustainable trend driving the industry
innovation to achieve a Nobel value proposition. The selected tools and techniques are;
1. Identify the next ten customers
2. High-level product specification
3. Strengths, weaknesses, opportunities, and threats
4. Value chain analysis.
5. Innovation readiness analysis.
6. Develop a product plan.
1. Identify the next ten customers.
The tool involves mapping of about ten customers who fit as the end-users of the organizational
products besides the organization persona. Contacting theses customers helps determine their
willingness to buy the organization products.
2. High-level product specification
The tool recommends the creation of a visual representation of the organization's product to
focus on the advantages of the product created by the features and not just the futures
themselves.
3. Strengths, weaknesses, opportunities, and threats

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The tool recommends for the measure of the business strengths, weaknesses, opportunities, and
threats when coming up with the findings and also developing the recommendations to these
findings.
4. Value chain analysis.
The value chain analysis tool helps establish the flow of operations and the processes involved at
every stage within the organization when developing consumer products.
5. Innovation readiness analysis
The tool helps determine how prepared an organization is in the acquisition of technological
tools and product improvement through the application of innovative measures.
6. Develop a product plan.
During the innovation period, the organization uses various strategies which are measured by
developing a product plan.
Target customers
The main target customers of Woolworths are the various groups of people living in the
different cities where the organization operates various business branches. The two broad target
markets to this business are the lower LSM groups and the growing middle-class groups who the
business project that in the coming days these groups will be buying goods from the stores
(Richter, 2013). The company being an international organization, it has also the target market in
overseas countries. This is one reason as to why the application of innovation and technology is
highly required for the effective reaching of the target customers. The business has come up with
strategies in which it will be reaching and satisfying all groups of people from high rank to low-

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level customers. It has innovated the product price standardization to make sure that it covers the
needs of all customers. The scale of the products offered by the organization is fit and
satisfactory for all customers regardless of the money they have. There are bigger sizes for low-
income customers and bigger sizes of products for rich customers and therefore for successful
evaluation of the target market, the organization has come up with this innovation strategy to
make sure that no one would complain about the size and price offered.
Competitive advantage and strategic fit
The development of a novel value proposition will assist Woolworths in developing an
aggressive advantage over its competitors. The introduction of a good communication network
will see the company establish a good timely customer and supplier engagement. The
establishment will be of advantage to the business over its competitors since it will ensure a
constant supply of vegetables from the farms to the various organization stores (Lee, Wu &
Tseng, 2018). The introduction of a product and service delivery to its customers will give the
business a competitive advantage over the other key players in this market. Most of the business
of similar characteristics doesn’t deliver goods to their customers. Besides, the introduction of
product innovation will enable the business to achieve a competitive advantage .various product
innovation, for example, packaging and preservation, will attract customer trust. Through the
various strategies adopted by the organization's top management, the company will attain a
strategic fit. Therefore all products delivered and strategies used will be matching the capabilities
and resources in the external environment.
Critical assumptions and uncertainties related to;
Customer desirability

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There are various assumptions surrounding Customer desirability concerning Woolworth.
The first assumption is that the customers make is that the business provides fresh and quality
products direct from the various farms (Van Kleef & Roome, 2017). The assumption of quality
goods has led to most of the customers developing trust towards the business hence consistency
in their purchases. An assumption of good services keeps the customers coming back to make
more purchases from the organization stores.
Technical feasibility
Various uncertainties are surrounding the organization's technical feasibility. Competitors
are faced with the uncertainty of whether the business does to create such a significant trusted
brand and who are our key staff members. Besides, the business is also faced with the technical
feasibility of what minor change on the organization operation would be dreadful (Bellucci, Bini
& Giunta, 2020).
Financial viability
There are also significant uncertainties on the financial viability surrounding
Woolworths. The business is faced with an uncertainty of where the finances will come from,
which will be used to finance the newly established novel value proposition. Besides, the
organization is uncertain of when will be its breakeven point after the establishment of the new
technological innovations and sustainability tends (Szczepańska-Woszczyna & Kurowska-Pysz,
2016). Also, the organization l top management is faced with an uncertainty of who is the
company's most profitable customers and whether the business is making any effort in pursuing
them. Lastly, the management is also faced with uncertainty on how it can make the company
future financial decisions in the absence of financial clarity.
Report findings

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Application of the various innovative tools and techniques, the company realized that
when developing the new innovative product, it needed to create a visual representation of the
new product. The creation of this vital product would assist the organizational management as
well as the workers to focus and determine the product features (Breuer & Lüdeke-Freund,
2014). Determination of the product features would help them conclude which benefits would be
brought along by this new product. From the study, we also found that Woolworths needs to
identify its ten potential customers while performing this key innovation. Besides, there is a need
to conduct a market survey to determine the customer's willingness is the purchase of the new
product. Also, the organization needs to develop a product plan whole planning this key
innovation.
The study also helped determine that the organization faced various challenges, which among
them included communication and customer and community sustainability challenges. The bus
ness identified that there were unexploited opportunities in the market hence the need to focus on
them. The company identified that it processed many strengths which it could use to explore a
new market (Nowak & Szewczyk, 2016).
The study has also determined there exists a value chain that comprises the farmer as the
producer, Woolworths, and, finally, the customers. The introduction of innovation in
communication would help optimize the value chain. Lastly, we have found out that the
company needs to carry out a financial assessment to ascertain whether it is ready to carry out
and sustain the new technological innovation.
Conclusion
We can conclude that the study was essential for the study of the various technological
innovations and sustainability trends need by Woolworths in the creation of a novel value

MGMT20132 INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 11
proposition. After a review of the challenges experienced by the organization and the
development of solutions, it was clear that technological innovation and sustainability are some
of the areas key factors driving industry innovation. Therefore, I recommend that the creation of
a novel value proposition is an important practice that every business should adopt to improve its
operation. Technology implementation in the organization is one of the facts that determine the
success of the organization or not. In this analysis, it has been understood that innovation and
coming with new ideas for the services and products is the way to go for the success of an
organization. It can be learned that the article has discussed more the innovation and
sustainability of Woolworths as a business directed by advancement in technology and
sustainability trend. The paper has given an analysis of different sections; first, the introduction
will give a brief overview of the business, the technology, and sustainability trend driving
innovation to inspire the development of a novel value proposition. The discussion part follows;
in other sections discussed in the paper involved the findings of the selected technology and
sustainability trend surrounding the business will be discussed. The analysis also focused on
better conclusions and recommendations that will be made regarding the topic under study. It
would be essentially important for the management of Woolworths to consider investing much in
technology. Technology would mean a new way of doing things not only in the Woolworths
organization but in all other organizations involved.

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References
Bellucci, M., Bini, L., & Giunta, F. (2020). Implsementing environmental sustainability
engagement into business: sustainability management, innovation, and sustainable
business models. In Innovation Strategies in Environmental Science (pp. 107-143).
Elsevier.
Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E. A., & Barlow, C.
Y. (2017). Business model innovation for sustainability: Towards a unified perspective
for creation of sustainable business models. Business Strategy and the
Environment, 26(5), 597-608.
Fernando, Y., Jabbour, C. J. C., & Wah, W. X. (2019). Pursuing green growth in technology
firms through the connections between environmental innovation and sustainable
business performance: does service capability matter? Resources, Conservation and
Recycling, 141, 8-20.
Gellings, C. W., & Parmenter, K. E. (2016). Demand-side management. In Energy Management
and Conservation Handbook (pp. 399-420). CRC Press.
Lee, C. H., Wu, K. J., & Tseng, M. L. (2018). Resource management practice through eco-
innovation toward sustainable development using qualitative information and quantitative
data. Journal of Cleaner Production, 202, 120-129.
Nowak, M. M., & Szewczyk, Z. (2016). The role of eco-innovation in sustainable business
development. Acta Scientifica Academiae Ostroviensis. Sectio A, Nauki Humanistyczne,
Społeczne i Techniczne, (8 (2)/2016), 89-104.

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Stark, J. (2015). Product lifecycle management. In Product lifecycle management (Volume
1) (pp. 1-29). Springer, Cham.
Szczepańska-Woszczyna, K., & Kurowska-Pysz, J. (2016). Sustainable business development
through leadership in SMEs. Engineering Management in Production and Services, 8(3),
57-69.
Rainey, D. L. (2010). Sustainable business development: inventing the future through strategy,
innovation, and leadership. Cambridge university press.
Breuer, H., & Lüdeke-Freund, F. (2014, June). Normative innovation for sustainable business
models in value networks. In The Proceedings of XXV ISPIM Conference-Innovation for
Sustainable Economy and Society (pp. 8-11).
Manage, J. E. T. (2014). Engineering and technology management for sustainable business
development: introductory remarks on the role of technology and regulation. J. Eng.
Technol. Manage, 34, 1-8.
Richter, M. (2013). Business model innovation for sustainable energy: German utilities and
renewable energy. Energy Policy, 62, 1226-1237.
Halme, M., & Korpela, M. (2014). Responsible innovation toward sustainable development in
small and medium‐sized enterprises: A resource perspective. Business Strategy and the
Environment, 23(8), 547-566.
Van Kleef, J. A., & Roome, N. J. (2017). Developing capabilities and competence for sustainable
business management as innovation: a research agenda. Journal of cleaner
production, 15(1), 38-51.

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MGMT20132 INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 15
Appendices
Appendix 1: Innovation tools and techniques
The selected tools and techniques are;
Identify the next ten customers The tool involves mapping of about ten
customers who fit as the end-users of the
organizational products besides the
organization persona. Contacting theses
customers helps determine their willingness
to buy the organization products.
High-level product specification The tool recommends the creation of a
visual representation of the organization's
product to focus on the advantages of the
product created by the features and not just
the futures themselves.
Strengths, weaknesses, opportunities, and threats The tool recommends for the measure of
the business strengths, weaknesses,
opportunities, and threats when coming up
with the findings and also developing the
recommendations to these findings.

MGMT20132 INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 16
Value chain analysis. The value chain analysis tool helps
establish the flow of operations and the
processes involved at every stage within the
organization when developing consumer
products.
Innovation readiness analysis. The tool helps determine how prepared an
organization is in the acquisition of
technological tools and product
improvement through the application of
innovative measures.
Develop a product plan. During the innovation period, the
organization uses various strategies which
are measured by developing a product plan.

MGMT20132 INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 17