Innovation Management: Building and Managing Dynamic Capability in Tesco

INNOVATION
MANAGEMENT

Contents
INTRODUCTION...............................................................................................................................3
METHODOLOGY..............................................................................................................................4
Findings................................................................................................................................................6
Commercially viable solution.............................................................................................................9
CONCLUSION..................................................................................................................................10
References..........................................................................................................................................11

INTRODUCTION
Innovation management is a business process that helps in process and manages
changes in an organisation. One specific term of managing innovation is to introduce
something new with the help of new ideas (Biemans, 2018). This process required handling
all the activities which are needed at the time of introducing new idea and product in the
target market. Management of innovation takes another place in an organisation that coming
up with unique ideas which are required to developing, prioritizing and implementing. The
aspects of innovation management enable an organisation to aggressively place their brand in
order to attain sustainable growth opportunity in competitive market. Therefore, it is required
for an organisation to implement innovative idea in their process through which they can
attain maximum competitive advantages over its rivalries. In an economy, managing
innovation can be an effective mode for small and large firms because it will assist in
providing uniqueness with the help of business strategic procedure.
This report is wholly based on Building and managing dynamic capability within an
organisation. Therefore, this report is structured on Tesco which is British multinational
groceries retailer which was founded in the year of 1919 by jack Cohen. This is a leading
organisation in UK that render its products and services in the maximum part of the world.
Tesco already implement several innovation in their business process as in the product
development, market analysis, development of customer base, product promotion and so on.
Now Tesco has more than 2200 stores at different location in which approx. 80000
employees are working. Therefore, it is required for firm to manage innovation in the
business process in order to managing and building dynamic capabilities of their employees.
Dynamic capability is a term that stand for the ability of an organisation to
incorporate, develop and reconfigure external as well as internal skills to meet rapidly
changing environment (Clauss, 2017).This is a required process in each and every
organisation to implement new idea through which they can improve productivity of their
workforce. As the world is evolving rapidly, thus businesses need to develop new skills, not
just to cope with the variations but also to succeed in changing market circumstances. In this
regard sustainability play an essential role in order to set new standards for several businesses
in order to look beyond the present and short-term growth opportunities. By managing
innovation Tesco can easily develop capability by making possible changes in its resources
capacity as well as by improving manpower.

Importance of managing and building dynamic capability in a business:
 To maintain competitiveness: In an organisation, dynamic capabilities play an
essential role by adopting discontinuous changes on the basis of market variations. In
this process, innovation provides its contribution in order to managing changes by
analysing requirements of customers (Peñalvo, Blanco and Echaluce, 2015).
Capability of analysing customer’s need or providing them desired services assist an
organisation to attain competitiveness in target market. The major importance of
maintain dynamic capabilities is that it helps in identifying and escaping strategic
bling spots as well as any dysfunctional movement which pose any threat in business
growth. By managing such change in firm, manager and higher authorities can
manage effectiveness in firm.
 To expand business operations: Dynamic capability has a significant and direct
impact on the reconfiguration as well as accumulation of the organizational resources
and competencies. Thus, by building and maintaining dynamic capabilities an
organisation nourish its internal capabilities that help them in enhancing operational
competences effectively. In this process management needs to pay their maximum
attention towards improving skills and capabilities of their employees in order to
managing desired changes in business activities.
 To shape opportunity and threat: One major effectiveness of managing business
dynamic capabilities is analyse growth opportunities in competitive market. On the
other hand, an organisation can discover major threats for a firm in order to reduce its
negative impact by strategic process. In this process innovation play an essential role
that enrich the overall performance of functional activities by developing manpower
towards accomplishment of an organisation’s target goals and objectives.
Furthermore, it will also assist in enhancing capabilities of resources in order to
providing competitive services that helps in managing threat of rivals.
In context of Tesco, all these elements of business dynamics will assist in developing
business capability to render desired services to customers by analysing trends and their
requirements.
METHODOLOGY
In the marketplace, there is huge amount of competition between different companies
that allow them to bring creativity and concept in functional as well as operational unit