Innovation in M&S

This presentation explores the innovation strategies implemented by M&S to address challenges and drive growth. It discusses the importance of customer-oriented product lines, legitimately priced food products, and a stronger digital presence. The presentation also highlights the collaborations with market research firms and IT companies that have contributed to M&S's innovation journey.

Innovation
in M&S

About the company
 Publicly listed company.
 Based in the UK
 Products- lifestyle, food products etc.

Determination and justification of the
identified

Choice of innovation
Innovation in marketing to
meet the following issues:
 Overpriced food products.
 Apparel and lifestyle
products are not aligned to
customers
 Poor digital presence
Target innovation:
 More customer oriented
product line
 Legitimately priced food
products
 More highly advanced
digital platform
Overpriced food
products
Premium apparel wears are not aligned to tastes
of customers
M&S has poor digital
presence
Customers dissatisfied
Outcomes
Falling revenue generation
(Revenue risks)
Losing customers to
competitors (competitive risks)
Weakening financial base Weakening global positions

Identification of innovation
 Collaboration with True to provide market data and support innovation.
 Collaboration with TCS to strengthen its technological platform
(Tcs.com, 2019.

Where can we find innovation
 The company has
entered into open
information with
different market
research firms
like True to
provide it with in
depth market
knowledge.
 M&S has entered
into contracts
with IT
companies like
TCS to strengthen
its internet
presence.
Collaboration with
marketing firms
Collaboration with
IT firms
M&S
Gains marketing
data Marketing of goods aligned
to customers’ needs
Stronger digital
platforms
Generation of higher revenue and
customer satisfaction

Innovation dimension
 Product/services,
 Platform,
 Solution,
 Customer needs
 Customer experience
 Communication
 Process
 Revenue generation
 Management
 Supply chain
 Channel, partnership
 Business model.

Diffusion of innovation
 Five diffusion factors of innovation:
 The innovation over here refers to the
innovation in the product marketing which
M&S has embraced in collaboration with
companies like True. The innovation would
also refer to the technological innovation
which M&S has embraced in collaboration
with global IT companies like TCS.
 Channels of communication consists of
both internal and external channels of
communication ((Utterback, Pistorius &
Yilmaz, 2018))
 Adopter here refers to the stakeholders
which the innovation target
 Time consists of tenure which adopters
take to accept the innovation
 Social systems refer to the factors which
influence the diffusion of the innovations
among the adopters

Competitive justification

Drivers of innovation
 Individual
 Processes
 Financial strengths
 External market environment

Market leadership strategies
 Diverse product lines of
products
 Listed company status
 Marketing mix

Ansoff matrix
New
markets
Market development(Introduce new
products)
Diversification
Existing
markets
Market penetration(Introduce more
customer oriented products)
Product development
Existing markets New markets

Implementation of innovation

Innovation approaches:
 Incremental innovation
 Disruptive innovation

Clear and SMART objectives
Specific The first objective is alignment of product line to the preferences of customers. The second objective would be introducing
more technologically advanced and user friendly official website and smart phone app. Thus, the objectives are specific.
Measurabl
e
The management would be able to measure the capital to be invested towards achievement of each of the two areas of
innovations pointed out. The management would also be able estimate the increase in the revenue generation which M&S
would be able to reap owing to the successful implementation of the innovation plan.
Achievable The two objectives namely, increase in customer satisfaction, revenue generation and market positions are achievable.
Hence, it can be pointed out that the objectives quality the achievable criteria.
Relevant The two objectives are relevant for the global leadership of M&S. Failure to attend the objectives would make the
management liable to face resentments from shareholders.
Time- The management of M&S can aim to achieve the two objectives within specific time periods. Hence, the objectives qualify
the time-bound criterion.

Types of innovation
 The company should use open innovation to partner with other firms to
introduce more innovative products.

Capacity framework
 Current capacities
 New capacities to be
acquired Innovations
Current
financial
capacity
Current
technology in
possession
Skills of
employees at
present
Suppliers

Implementation planning

Innovation planning
 The management of
M&S should form
strategies to implement
the innovation.
 The company should
stake steps to train the
employees.
 The company in order to
imple ment the
innovative strategies
should take steps to
acquire modern plants
and technology.
Innovation
implementation
The management of
M&S holds apex level
meeting with the top
executives and
national heads to
discuss on the
innovations identified
The marketing
heads present the
proposed
restructured
product lines
including prices
before the all the
attendees
The technological
departmental heads
present proposed
plan of augmented
websites and apps
The management of
M&S holds apex level
meeting with the top
executives and
national heads to
discuss on the
proposed innovations
Innovations approved
and management
issues orders to the
finance departments
to release funds
Acquisition of resources
Procurement/supply
chain department of
M&S sends
applications to
suppliers of products
and technical
suppliers to submit
quatations
Suppleirs send in
quotations
Apex management
hold meetings on
discussions on
quotes received
Suppliers
shortlisted
Suppliers intimated in
writing about
shortlisting of their
quotes and invited to
attend meetings
Suppliers reply to
application
Apex management
hold meetings on
discussions on
quotes with
shortlisted suppliers
Procurement
contract signed
between company
and suppliers
finalised post
meeting
Products and
technology procured
Innovation
implementation
Restructuring of
product line
Launch of advanced
official w ebsite and
app
Training of
employees
Innovated product
lines and digital
platforms are
accepted as
company's normal
operations
Monitoring of
results
Further actions

Innovation framework
 Creating a scalable platform
 Establishment of organisational principles
 Participation of employees

Involving actions
 Involvement of internal stakeholders
 Involvement of external stakeholders

Allocation of resources and method of
doing
 Finance resources- Finance department
 Inventory of finished goods- Inventory management department
 Technology-IT department
 Knowledge-All the departments
 Human resource-HR department

Risk management

Types of risks and risk mitigation framework
Risks of innovation at M&S
Risk no Document control
information Risk identifier Risk Category Risk Description Impact of the risks Risk response category Owner of risk Precautionary recommendations Owner of Risk response
action
1
Profit and Loss
statement, balance
sheets
Falling profits in spite of
strong marketing strategies Market risks
1. Market risks can originate due to introduction of new
products by existing competitors and/or entry of new firms
with similar products.
2. Loss of materials, technological resources and manpower
due to fire and explosions
1. Fall in revenue and losing of consumers.(short term impact)
2. Losing investors, and supply chains due to falling capacity to give
positive ROI.(medium term)
3. Goodwill risk and losing of global market position (long term loss)
4. Reduced productivity due to increasing accidents and loss of
resources
Strategic decisions,
marketing strategies
Finance department,
Marketing department,
Risk manager, Engineer
1. Formation of a strong risk management
strategy.
2.Use of moern risk management systems
3.Strengthening marketing of products,
introducing new and innovative products with
less competitors
Marketing department
2
Unjustified loss of
capital, Unjsutified loss
of data, Unexplainable
alter of information
Employees, customers or
any other stakeholder Cyber theft risks
1.Cyber attack would cause loss of ICT data and designs
which would attract huge security risks towrads the
company.
2. Cyber attacks lead to loss of customer and financial data
of extreme business significance. Loss of customer data and
financial resources online lead to R1
1. Loss of sensetive business data.
2. Loss of financial resources.
3. Unauthorised access to the business strategy information of the
company.
4. R1
High
Apex management and
all the departmental
heads
1. Tightening of security.
2. Allocating new email ids and passwords to
each employees.
3. Mandating subordinates to obtain approval of
superiors to accede to specific information.
4. Making it compulsory for all employees to
exchange official information exclusively on the
formally laid path of information sharing.
5. Employees holding assistant managers and
beyond should lock their systems using a four
layer password security.
Apex management and
all the departmental
heads
2 Cannot be documented Employees, customers or
any other stakeholder Natural disasters Natural disasters lead to loss of resources, inventory and
assets Depends on the seriousness and intensity of the calamities Immediate Government, security
personnel etc Evacuation Government, security
personnel etc
3 Government and legal
websites Apex management Change in legislations pertaining
to retail sector
Change in laws require companeis to comply with the new
laws.
1. Damage to existing housing stock
2. Unproductive maintenance costs
3.Requires M&S adapt the relevant areas of operations as per the laws
Immediate
Apex management and
all the departmental
heads
Compliance, OHS strategies Governments
4 Financial statements Apex management, finance
department, CFO Economic risks
1. Increase in cost of materials, cost of labour etc.
2. Scarcity of funds due ti withdrawal of financial support
either by government or companies funding the project.
Requires construction to adapt the relevant areas of operations as per
the laws
Immediate or within
the date of
enforcement specified
specified
Apex management and
all the departmental
heads
Formation of strategies Apex management and
finance department
5 Risk register
Apex management,
security officer and any
other employee
Fire, exlosions
Loss of materials, loss of equipment, injury of employees,
loss of productivity, casualty in case of large scale
explosions
M&S oses productivity, employees, resources
Immediate or within
the date of
enforcement specified
specified
Apex management and
all the departmental
heads
Risk management strategies Apex management and
finance department
6 Financial statements Apex management and top
managers including CFO Goodwill risks The company may loose trust of stakeholders M&S loses productivity, employees, suppliers, patents and assets Immediate
Apex management and
all the departmental
heads
Risk management strategies Apex management and
finance department
7 Financial statements Apex management and top
managers including CFO Capital risks Weakening of capital base due to lower generation of
capital M&S lose productivity, employees, suppliers, patents and assets Immediate
Apex management and
all the departmental
heads
Strengthening marketing of products,
introducing new and innovative products with
less competitors to boost revenue generation
and strengthen goodwill
Apex management and
finance department
8 Financial statements
Apex management and top
managers including CFO,
R&D head
Technological risks
1. Modern technology leaves perevious technology
versions redundant. Requires M&S to carry on continuous research on product technology,
operation, ecommerce technology etc Immediate
Apex management and
all the departmental
heads
Requires M&S to carry on continuous research
on product technology, operation, ecommerce
technology etc
Technologcial officer

Process of change management
 Training and mentoring of employees.
 Breaking the entire process into sections.
 Encouraging employees to embrace each little steps.

Planning innovation:
 Participation of stakeholders
 Training of employees

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Thank You