Innovation in an Organization

Running head: INNOVATION IN AN ORGANIZATION
INNOVATION IN AN ORGANIZATION
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1INNOVATION IN AN ORGANIZATION
Executive summary
The report will focus on evaluating the effectiveness of innovative processes undertaken by
Tesco and the different risks that are faced by the same while managing inventories. In this
relation, an innovation will be recommended in the report for the organization, which will help
the same in maintaining the efficiency of the supply chain and logistics operations. The report
will enumerate an action plan through which the organization might implement the innovative
strategy and thereby measure the effectiveness through the enumeration of the KPIs. However,
the organization might face different risks while implementing the innovative strategy, which are
also enumerated as a part of the research.

2INNOVATION IN AN ORGANIZATION
Table of Contents
1. Introduction to the organization...................................................................................................3
2. Current state of innovation in the organization...........................................................................3
2.1. Key drivers for the innovations............................................................................................4
2.2. Strengths and weaknesses of the organization related to innovation...................................4
3. The new innovation.....................................................................................................................5
4. Evaluation of the need of undertaking the innovation.................................................................6
5. Action plan for the innovation.....................................................................................................7
6. Key performance indicators.........................................................................................................9
7. Risks while implementing the automated billing device...........................................................10
8. Conclusion.................................................................................................................................11
References......................................................................................................................................12

3INNOVATION IN AN ORGANIZATION
1. Introduction to the organization
The concerned organization, Tesco, is a British multinational organization, which aimed
at providing the customers with groceries and general merchandise. The organization was
established in the year 1919 and is headquartered in Welwyn Garden City, United Kingdom
(Tesco.com 2019). According to a survey report, the organization stood as the ninth-largest
retailer in the world in accordance to the revenues earned by the same. The concerned
organization held shops in seven countries across Asia and Europe apart from being a market
leader in UK, Ireland and Hungary (Tesco.com 2019).
The different innovations that are undertaken by the organization in the processes as
helped the same in gaining a competitive edge over the other players in diverse economies. The
concerned organization held a market capitalization of approximately £18.1 billion, computed as
on 2015 (Tescoplc.com 2018). The revenue and net income of the concerned organization was
£57,491 million and £1,208 million respectively, which was computed by the end of fiscal year
2018 (Tescoplc.com 2018). The developments in the processes have helped the business in
supporting the sustenance of the same while operating in diverse global economies.
2. Current state of innovation in the organization
The organization has taken steps to develop different innovative processes in order to
maintain the efficiency of the operations. The organization implemented the replenishment
application system, which has helped the business in tracking the amount of sales and thereby
the data is recorded and transferred to the supply department (Kim, Kumar and Kumar 2012). It
has helped the business in maintaining the efficiency of the supply chains while operating in