Innovation and Commercialisation in Tesco and Morrison: A Critical Evaluation

This report discusses the innovation and commercialisation strategies of Tesco and Morrison, including ways to source and foster innovation, different types of innovation, and critical evaluation of their success or failure. It also provides recommendations for funding channels, tools to protect intellectual property, and an action plan for innovation.

Unit 8 Innovation and
Commercialisation

Table of Content.
INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
PART 1............................................................................................................................................1
Discuss the ways in which different organisations source and foster innovation, using specific
examples......................................................................................................................................1
Differentiate between different types of innovation and how they are processed within
organisations................................................................................................................................1
A critical evaluation of the success (or failure) of the innovation in each retailer......................1
PART 2............................................................................................................................................1
Produce a detailed business case for innovation for an organisation, including risks, benefits
and ways to access funding..........................................................................................................1
Suggestion of funding channels for the recommended innovation, supported by analysis of
business value for potential investment.......................................................................................1
Evaluate the different tools that organisations can use to develop, retain and protect knowledge
and intellectual property..............................................................................................................1
Explicit action plan(s) for the innovation (recommended above), supported by methods to
protect them in a wider environment context..............................................................................1
CONCLUSION................................................................................................................................1
REFERENCES................................................................................................................................2

INTRODUCTION
Innovation is generally a process of improving as well as putting it within the use of new
products and the services as well. It generally does not consist the entire improvement of
products but also the improvement in the existing products and services. It is generally the
process of both connecting the market requirements towards the technological abilities by simply
conducting a lot of study. The innovation process can vary more dramatically among various
industries as well as the product line of organization. In this, a commercialisation is generally the
process of introducing the new products within the market that consist various stages like
production, distribution, marketing, customer services and sales as well. Within the business
commercialisation, innovation is generally an essential aspect within the business success, it
generally has the entire process of understanding the requirements of the market, generally
running an innovation session, developing a prototype, collaborate it with the beefs and then start
scaling. In the report, there is a discussion about a grocery retailer named Tesco and Morrison
which is a shopper’s trends and is recently not working within the UK (Elenurm, 2022). In this,
the headquarter of Tesco PLC is located at Welwyn Garden City, UK and the headquarter of
Morrison is mainly located at Bradford, UK. The main aim of the project report is to comprehend
how the innovations is mainly sourced as well as are developed by both the companies. In
addition to this, there is provided recommendations of how the new retail store generally support
such innovations within the product and services, the funding’s of various channels of
innovation, the specific tools which can protect both knowledge and intellectual property and are
provided with an effective action plan for the innovation within the business.
MAIN BODY
PART 1
Discuss the ways in which different organisations source and foster innovation, using specific
examples.
Innovation is generally a process of converting the effective notions into the completed
goods and services. In order to create the new products which will add the values and can help
the life of a client as well as people who will pay to avail for such new products is generally the
main goal for innovation. To create the specific new products, a company should innovate as
well as improves the set of notions which can be applicable within an economic cost. In order to
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create a new product, a company will collect the more reliable information which will
collaborate with the new thoughts as well as how to generate the specific values from various
other sources. In this, innovation is generally of two types such as revolutionary innovation and
evolutionary innovation. In context with evolutionary innovation, it can come under the
continuous innovation as well as can made alterations and the developments. While talking about
the revolutionary innovation, it can fall under the discontinuous of innovation that are more
likely to prove a profitable as well as are quite good for community as well. It generally aids the
business to be in the competitive market as well as can make profits as well. To stand within the
market place, a business generally requires to improve the new things as well as the ways which
can add some of the values within the buyer’s living. However, invention is generally an
essential part for the company (Chaudhary and et. al., 2022). An innovation is majorly sourced as
well as fostered by the Tesco and Morrison are as provided below:
In context with Tesco PLC, they generally consist a new lab which specifically works on
innovation of new products and services that is in the London. They generally make the research
on the basis of two inputs such as customer needs and future needs as well. The needs of the
customer generally consist an internal department as well as the stores as a customer and future
needs which involve the societal, technical, demographic as well as the fashion trends which is
generally going on. By simply analysing the two discussed aspects with the team and group
members, they will produce numerous notions as well as the best suitable notions generally
moved instantly into a development. The Tesco PLC generally have various workers which can
work intensively within the teams in order to produce the notions for the business challenges. In
this, the outline business is generally enhancing with approximately about 90% across the nation.
They generally have made various challenges within the online business that consist an
additional safety measure as well as can involve various offers to their clients. From this thing, it
has been visualised that there is an enhancement within the online shopping more specifically on
the weekends. In order to support this online window, they have extended their picking hours,
broadened their delivery window as well as can bring more working staff on contract basis
within the organization. The main aim of the Tesco PLC is to start from a basic notion with
consisting a minute viable product within the next coming five weeks. An organization has run a
hackathon where about 400 people specifically work intensively within a team to effectively
improve the new innovation thoughts for the business within the current times. In addition, one
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of the prime region for Tesco PLC within the innovation process is the deployment of electronic
retailing within its functions.
In context with Morrison, the grocery stores within the UK that fuelled its innovation
process to give the best product and services with the best client’s experience. They generally
have the partnership with Blue Yonder, for execution of the cutting-edge technology which
requires to innovate to finish the needs of the clients. In addition, the online services of the
Morrison’s are generally available in more than about 75% of British household. The pick-up
services of the Morrison organization are quite effective within its clients, that can gather the
online purchasing from various lockers in the country. They have started selling via various
online channels as well as having its own selling platform (De Silva and et. al., 2021). The
organization generally begin its innovation with help of their customer’s feedback as well as can
follow the multichannel strategy for selling the products within market as well. While talking
about Morrison’s innovation, they specifically have launched a sale generally based on ordering
system among all the 491 available stores by using the leading-edge machine, learning and its
technology to effectively enhance its forecasting the abilities. In addition, its machine learning
investment is generally concentrated over improving its ambient as well as the products long
terms.
Differentiate between different types of innovation and how they are processed within
organisations.
An innovation generally plays an important part within the organization as well as can give
a bunch of opportunities for faster improvement as well as can build a better association as well.
Innovation generally aids the company among several pathways as it can produce the
enhancement, daily developments as well as making a brand image known and popular as well.
In addition to this, it can respond towards the competition and trends as well as can produce a
different selling point for their services and products. In order to make the innovation, a
complete marketing strategy should be adhered by the entity to effectively determine the needs
of the clients (Sedita, Apa, Bassetti and Grandinetti, 2019). An innovation process mainly
consists a several steps which an organization must follow to have an efficient outcome that can
involve notions about generation, mobilization, advocacy as well as screening that can aid in
identifying the feasibility of the new business notions, an experimentation stage tests
sustainability of the thoughts, commercialization that can improve the market value of that
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specific notion and the last step of the execution of that innovative notion. In addition to this,
there are generally the four basic types of innovation which can produce a sustainable success
and are as mentioned below:
1. Sustaining innovation: It generally consist the necessity of enhancement within the
products and services with consisting a goal to sustain in the current market scenario.
2. Disruptive innovation: It generally consist an introduction of the new business model
which can disrupts the existing of the products within the market.
3. Incremental innovation: It generally consist both the continuous and a gradual
enhancement on the existing goods and services within the market.
4. Radical innovation: It generally consists the technological alterations which can make the
enhancement within industries which can often produce a new market.
The analysis of innovation procedure of both the retailers are as provided below:
In context with Tesco PLC, it corporates an innovation programme generally takes a
support of the chosen extrinsic organizations as well as its 12 team that can exhibit the working
innovation to head the executives. In addition, they generally enhance their innovation procedure
generally based on the four guidelines that specifically consist to address the requirements of the
real clients, engagement of the senior level sponsors, the time boxed each project as well as then
finish openness among the teams (Chutiphongdech, 2021). They generally run hackathons where
more than about 350 workers are working intensively among the teams to effectively produce the
new notions to face the new business challenges. In context with Morrison’s, they specifically
innovate their online business by simply identifying the components and deep analysis on the
client’s shopping experience as well as determine the pathways which can aid the client to save
the money on their weekend grocery shopping. In addition, their main aim is to make the
experience of shopping of the clients much easier and quicker as well and to give them with
products and services which ca add the values and satisfy the needs of buyers as well. In addition
to this, Tesco PLC consist a main strategy in an innovation that is to make a quality of the
products and services with help of giving towards their clients on a reasonable price. They
specifically make a continuous innovation to remain a competitive as well as to meet the
demands of the clients and for which they have to ensure that they can anticipate the needs and
will brought an effective innovation within the business by garbing the opportunities. A Tesco
PLC consist the sustaining as well as an incremental innovation within its business as well.
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In context with Morrison’s, they generally concentrate on the new innovation towards
each portion of the Morrison’s, by giving the new applications to furnish an enhanced pathway
of shopping so that they can provide with the best client’s experience. In addition to this, they
have a team for the digital innovation that is quite essential for their growth of the business. The
Morrison’s organization generally reported about 50% of the online growth as well as they are
giving the home delivery and can click as well as gather the services on their own websites. The
specific innovation strategy consists an analysing the needs of their customer as well as they are
expecting from the organization in a near future, then on the basis of that they can make the
effective strategy and determine every strategy to effectively innovate as per the market value
and after analysing they are executed the best possible techniques of the innovation. In addition
to this, the current innovation of the Morrison’s generally consists the new automated ordering
systems, it can aid in reducing the costs and stock level with the saving times of the workers to
offer a better and enhanced experience of the clients. The Morrison’s organization generally
consist an incremental innovation within the products and services more efficiently (Rocha,
Mamédio and Quandt, 2019).
A critical evaluation of the success (or failure) of the innovation in each retailer.
An innovation can be concluded as the process for long term perspectives which can be
effectively measured as per the competitive goals of the organization. In this, an initial step of
determining the innovation is to have an intrinsic agreement within the organization, the second
step can contain a measurement of the approaches and technologies that a business generally in
its innovation procedure. The third step can consist an innovation process that is being chosen by
the company and at last the tracked the performance as well as the revenue being produced. An
innovation does not consist a new technology every time, most of the time introducing new
methods in doing the business. An evaluation of the success along with its failure of the
innovation among the both Tesco PLC and Morrison’s are as mentioned below:
In context with Tesco PLC, an innovation perspective is generally the setting of a business,
it can take place when the current products and services will find their pathway of entering
within the market for sales as well as to satisfy the receiver’s ever altering demands. Within this,
it generally contains an executing the novel process, activities along with materials within the
product and services that can aid in reducing the cost of manufacturing as well as enhances the
production activity as well. It generally enables the business to effectively improve in the
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economical services. The Tesco PLC specifically adopts a new technology which is quite
essential for regenerating its functions. The innovations generally made an efficient alteration
within the company that can consist within the success of the business as well. In addition, there
are various positive interventions which are made by the organization via the innovation in order
to attain the goals and objectives as well.
In context with Morrisons organization, the company's performance is considerably aided by
the introduction of innovation and technology because it increases sales and more correctly
forecasts customers' buying patterns. Morrisons' success can be attributed to technology because
the company has benefited greatly from the deployment of new ideas in its products and online
services. Their machine implementation innovation results in ambient and durable items. The
investment boosts the organization's sales by 30%, and the business, employing cutting-edge
gear, can forecast product demand changes for a specific retail location by automatically
analysing sales data and connecting it to outside data. By analysing the state of the online retail
industry, it is determined that Morrisons is making a significant profit rise that is highly
spectacular when compared to previous figures. They leverage cutting-edge digital technology to
deliver simple, practical, and accessible services to customers (Opland and et. al., 2020).
PART 2
Produce a detailed business case for innovation for an organisation, including risks, benefits and
ways to access funding.
The market has a stronger need for innovation to launch new products, technologies, and
business strategies. It encourages innovative concepts that can be successfully incorporated into
goods or services to advance the economy. Commercialization and industrialization are
expanding quickly, therefore innovation aims to attract more customers to expand the market.
From the standpoint of a store, an innovation can give those that use fresh product marketing
concepts a better advantage. Research and development must be pushed to address technological
and scientific problems that may arise as a result of external factors by utilising innovation in the
development of new processes and products. To survive in the cutthroat market, innovation in
the grocery retailer sector must undergo numerous adjustments. Tesco and Morrison's strategies
are built on many business modalities, such as customer preference, customer effectiveness, and
customer involvement that supports operations. In particular, the UK's well-known supermarket
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retailer stores, Tesco, Morrisons, and Sainsbury, are the reason for its diversification. The
retailing industry in the UK has advanced technologically. In order to remain in the cutthroat
market, these organisations analyse consumer demand, identify risks and weaknesses that could
pose challenges in the future, and then adjust and implement new strategies. I recently introduced
a line of smart watches to the market under the brand name Smartgobeauty (Bikse, Lusena–
Ezera and Rivza, 2018). Tesco UK focuses on its customers, their needs, and expectations, and
offers them high-quality products and a banking support system that makes it simple for them to
utilise the grocery store's online ordering system. Management, better service, quality, pricing,
brand value, and many other factors are major contributors to its expansion. Morrisons, on the
other hand, is a well-known brand and is regarded as the fourth-largest food retailer in the UK. It
is specialised in the quality of its products, and the brand's value emphasises offering clients new
products and services.
Advantages
1. Alarm signal within watch: The watch is designed for women and sends out emergency
alert signals if there is any danger around.
2. Elegance with smartness: This smart watch has a attractive structure and was also
designed with women in mind.
3. Access of messaging and calls: All calls and messages that can be handled by phones can
also be handled by this watch.
Risks
1. Handle with care: It must be handled carefully because it has a lovely structure. Overuse
of this watch can cause it to malfunction.
2. Not effective as mobile phone: Although it is a smart watch, it is not as effective as a
phone and cannot produce as many features as a smartphone.
Suggestion of funding channels for the recommended innovation, supported by analysis of
business value for potential investment
The common cause of the demise of so many innovative business concepts is a lack of
capital. In order to achieve its financial objectives, the Shoppers Trends organisation must make
plans for its future success. It is vital to have innovative business in order to fit in with the
organisation (Liu, Zhou, Cen and Lin, 2019). An innovative company should have a procedure
for developing products, a pricing strategy, a programme for increasing client awareness, and
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money for all of these initiatives from the company. There are numerous ways for Shoppers
Trends to raise money. The following are a few funding options:
1. Self-funding: It is a successful method of financing when a company is just starting out in
the market and is also referred to as bootstrapping. Because finance for new businesses
was difficult to come by, investing from personal savings will be a safer option.
2. Crowd-funding: It's a form of funding where the whole population contributes. This
contains the company's goals, plans for producing money, how much investment is
required, what are the reasons for funding, and many other things that a business owner
will include.
3. Bank loans: It's a very popular kind of finance and is regarded as the top choice among
business owners seeking funding. In light of consumer trends, this sort of finance should
be selected because, in contrast to other funding possibilities, it is more secure.
4. Through government programs that offer funds for start-ups: The UK government has
introduced a number of initiatives to encourage new businesses to establish themselves
there. in order to encourage national product and service innovation. They can also take
into account this option in the context of consumer trends because it will help their firm
(Weissbrod, 2019).
5. Get loans from Micro finance provider: In light of consumer trends, it is simpler for
individuals to obtain financing from microfinance firms because they offer loans with
more lenient terms.
Funding channel for Smartgobeauty watches
Since the company is new to the market and obtaining a bank loan is risky, the funding
source should be self-funding. Due to the difficulty of obtaining finance for new businesses, self-
funding would be more convenient for the company. Self-funding has many advantages because
if a loss develops in the future, the company will not be responsible for making restitution to
third parties and will have less internal risk (Mazzarol and Reboud, 2020).
Evaluate the different tools that organisations can use to develop, retain and protect knowledge
and intellectual property.
Protecting the company's innovative ideas and methods is crucial. The protection of
intellectual property is crucial for encouraging creativity inside an organisation since without it,
businesses and individuals will not be able to fully benefit from their innovations and will not be
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able to take advantage of research and innovation (Gouvea, Kapelianis, Montoya and Vora,
2021).
The following five crucial legal strategies are used by Shoppers Trends to safeguard a
company's intellectual property:
 Patents: The United Kingdom government has granted corporate organisations and
parties the right to protect the creation, sale, and development of new goods and services.
 Trademarks: It's a protective privilege granted by the US government that enables
companies or parties to safeguard the creation, marketing, and sale of their own goods
and services.
 Copyrights: It is a legal tool used to defend any literary creation or computer software.
It's a solution that enables businesses to safeguard creative works, such as songs, scripts,
packaging designs, sales materials, and advertisements.
 Trade dress unfair competition laws: There are two key protection laws, one of which
is Trade dress unfair competition, to safeguard patents, trademarks, and copyrights. It
indicates to the "dressed up" definition of the design, label, packaging, and colour
schemes (Jurišová, 2019).
 Trade Secrets: It is referred to be a protection law since all firm records and information
are protected by it and kept secret from outsiders. This law is used to protect
confidentiality and to prohibit third parties from using trade secrets.
Explicit action plan(s) for the innovation (recommended above), supported by methods to protect
them in a wider environment context.
New solutions to technological issues that businesses confront can be secured through a
variety of techniques, and these techniques safeguard investors' interests by ensuring that the
inventor has complete control over how their innovation is used. Consumer trends should create
the following action plan to safeguard their innovation and are as mentioned below:
1. Apprise Intellectual property protection: A corporation should modernise a number of
IP tools and make them compatible with the digital process, which also involves
optimising the additional protection certificates and by encouraging the use of new
technologies, in order to safeguard its innovations and to support the unitary patent
system.
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2. Better IP execution: The corporation can better secure its innovation system by creating
a toolkit for protection, outlining obligations under the digital service act for online
platforms, and strengthening the role of the anti-fraud agency and other authorities.
3. Support use of IP: Encourage the use of IP in a business by educating management on
its advantages and filing procedures.
4. Ease IP sharing: This strategy is used to preserve intangibles while acknowledging the
crucial role that IP plays in preventing hacking (Sloan, 2021).
CONCLUSION
From the above report, it has been concluded that the commercialization of ideas and
innovation is crucial to the business's success. It offers a thorough analysis of how innovation
fosters corporate growth and includes an analysis of how Tesco and Morrisons use innovation
strategy and how it aids in the growth of their respective companies. It generally offers a
thorough analysis of both the retail company's and innovators' innovation processes. Following
this, it discusses how innovation affects Tesco and Morrisons' success or failure. This study
explains how a new business called "Shoppers Trends" should innovate and process its products
online.
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REFERENCES
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