Managing Innovation in Business

This report discusses the importance of managing innovation in business and its impact on organizational growth. It focuses on the innovation history of Marks and Spencer, their existing capabilities, and their performance in the retail industry. The report also provides an overview of the retail industry and its trends. It offers valuable insights for businesses looking to enhance their innovation strategies.

MANAGING
INNOVATION IN
BUSINESS
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Executive Summary
Innovation is defined as introduction and implementation of new methods as well as ideas.
In this processs there are different types of functions and activities are involved in order to
uncover new ways to things. Innovation creates better opportunities for organsiation through
which they can ensure more economic growth. Present report include organization along with its
innovation history. In addition to this, company existing capabilities and innovation process. It
signifies that entity is effectively capable to undertake use of effectice techniques as well as tools
that are prevailing in retail industrial segment. At last this report include retail industry overview
in order to gain formative insight about industrial growth and entity scope.
This has been identified that Marks and Spnecer continuously engaged in innovation
practices as to effectively devlop sevices as well as products in order to fulfil satisfaction of
customers and ensure more developing growth in a best effective manner. It has been determined
that organsiation established 5 year transformation programme with an aim to increase
organsiational sales as well as profiutablity. This is recommended to entity to undertake use of
Emotient in order to acquire formative knwolege related to customer segment in context with
services as well as products that company delivered.
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Table of Content
Executive Summary.........................................................................................................................2
INTRODUCTION...........................................................................................................................4
The Organization along with its Innovation History...................................................................4
The companies existing Innovation Capabilities and Performance.............................................6
The Industry.................................................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................12
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INTRODUCTION
Innovation is defined as a process in which new product are established with an aim to offer
something innovative in marketplace. In this technique or any other value-added feature has been
undertaken in already existing product or services in order to fulfill changing needs and demand
of customers (Helper and Henderson, 2014). Present report has been conducted on Marks and
Spencer with having company headquartered in UK. Entity operate their functioning as a leading
British retailer and offer products like home products, accessories, food, clothing, etc. In this
report formative discussion has been made on organization innovation history along with
existing Innovation performance of entity in addition with its capability to get innovation in
future. Lastly,report defined overview of industry.
The Organization along with its Innovation History
Marks and Spencer conducted operation as an worldwide cosmopolitan and came into
existence in the year 1884 when Michael marks aPolish refugee started a market stall in Leeds
under a slogan “Don’t ask the price, it’s a penny”. Entity has 98 stores across the provinces of
UK out of which 650 stores engage in the functioning of food distribution.
While taking the aspect of innovation timeline of Marks and Spencer this has been
evaluated that entity effectively transformed a lot over the last century, its first store launched in
1904 in Leeds. Marks and Spencer operates services in developed economy that provides
effective ways that facilitate organizational growth as well as expansion. It has been evaluated
that UK acts as major revenue generating source for entity as this, Nation encourage innovation
with different economic flexibilities.With respect to this, in the year 1920 Marks and Spencer
showed implementation of revolutionary policy in which there was direct purchase via suppliers.
This has been determined that by the passage of time there is a constant and dynamic
change in consumer taste, preferences and choice. According to the current scenario consumers
are mainly turned towards low-calorie and organic content food. This makes Marks and Spencer
to focus upon production of food with less calories and sugar content. Generation nowadays in
United Kingdom constantly upgrade their clothing lifestyle that makes company to regularly
engage with innovative offerings in order to ensure competitive advancements. In this relation, it
has been evaluated that in 1931 entity launched their food unit that offer canned and produced
items. In addition to this, it has been evaluated that by the end of 1933 organization established
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welfare services for employees in which they offer them facility is related to pension,subsidized
canteen, dental amenities, camping holidays, healthcare facilities etc.
By taking advantage of innovation Marks and Spencer emerged out to be the first retailer
who established their own research laboratory in 1934, this laboratory engage in the processing
of revolutionary new fabrics (Goolsby and Krueger,2015).
Marks and Spencer, Research and Development department is situated in the province of
United Kingdom. It has been evaluated that UK Government acknowledge those organization
that regularly comes up with innovative techniques and unique offerings. For this UK political
system is offering liberal tax policies and other tax-free provisions such as patent box schemes
and R&D Tax Credit for these entities. With the help of the Marks and Spencer constantly
engage in the practices of innovation.By the year 1948 Marks and Spencer initiated the food
technology department with an aim to build formative relationship with suppliers, farmers and
producers and work closely with them in order to bring change and create value for the brand.
Further it has been identified at Marks and Spencer in 1954 took survey of women leg sizes and
launched unique sizing procedures for stockings. Entity also came up a Chinese and Indian food
in the year 1974.
Technology is rapidly changing; it has been identified that retail Industry is also not un-
touched with the regular advancement in technology. This makes Marks and Spencer to adopt
every update in technology in its organization workplace structure, as it is one of the most
important drivers of innovation. With the assistance of innovative tools and technology Marks
and Spencer emerged out as a leading British retailer. In this relation, Marks and Spencer during
1999 entered in the world of e-commerce and introduce its own online shopping platform and
website to customers. In the year 2020 Marks and Spencer introduced to Blue Harbour men’s
range in marketplace that significantly increases sales volume of entity. By taking advantage of
continuous expansion Marks and Spencer during 2016 started their sales through European
Zalando over their Dutch, German, Belgian, Austrian and French sites.
Nowadays public and government are mainly focus towards environmental sustainability
in which they promote Industries to utilize raw materials that are made up of recycled process.
This is most important driver through which Marks and Spencer can ensure the competitive
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image. In this by taking advantage of green policy which is referred as “Plan A” by entity Marks
and Spencer effectively conduct their operations (INTRODUCING PLAN A 2025. 2019). This
policy of company tends towards fewer amounts of carbon footprints in order to save society and
environment.
Illustration 1: Innovation Timeline of Marks & Spencer
(Source: Innovation Timeline of Marks & Spencer, 2019)
The companies existing Innovation Capabilities and Performance
Marks and Spencer operate their organsiational operations as a multinational organsaition
in order to offer highly qualitative products and services to customers. In addition to this, it has
been evaluated that organsaition is listed in the London Stock Exchange.
Existing innovation performance
Marks and Spencer entered with the partnership in Europe, only high-quality customer
venture and retail entity, TRUE, in order to identify information related to the latest
trend’stechniques, technologies and innovation (Dodgson, M., 2018). With this entity aim
towards having access to 2000 more than enterprise-ready business via its live network. This
collaboration is defined as a most important aspect of Marks and Spencer ongoing
transformation process; in which entity invests digital expertise. It has been evaluated during
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November 2017 a 5-year transformation program was developed by Marks and Spencer that aim
towards bringing organizational success in terms of profitability and selling ratio. It lead towards
improvement in company’s clothing and home Logistic network. In addition to this, it has been
determined that Marks and Spencer marketing and digital consumer team undergoes into the
process of restructuring. Further this has been evaluated that entity also established customer
isnight partnership with star count.
Further it has been identified that in food segment of entity there are different type of key
technical theme that have been introduced by Marks and Spencer in order to effectively identify
dynamic requirements and change in need of industry and customers. Marks and Spencer design
these themes in order to make significant improvement in their business efficiency in
marketplace and ensure that they offer special products to their customers with different varieties
and unique packaging style. Further it has been defined that Marks and Spencer by undertaking
effective use of innovation introducted new technology transformation programme in order to
make significant improvement in Clothing & Home Logistics Network. Along with this by
making partnership with True M&S drive towards “digital innovation”. By this company aim
towards making potential transformation to run business and operations in a well effective
manner.In addition to this it has been identified that these themes launched by organizationthat
effectively promote healthy with having agenda of healthy diet with high nutrients in food
products of organization. In this Marks and Spencer ensure that their retail Food Industry make
reduction in campylobacter rate inpoultry and effectively avoid all the measures of food standard
agency. Along with this it has been identified that organizationplan an Innovation fund is to
provide assistance to Innovative initiative and practices. By taking advantage of these funds
entity effectively conduct testing of vacuum packages of fresh meat cuts. By undertaking all
these practices Marks and Spencer significantly increased their sales and so the customers with
best. Thus, it has been evaluated that all these innovations and achievements have been
accomplished by Marks and Spencer with the assistance of innovation startgies, plans and
measures. In addition to this, with the help of day-to-day research approaches an innovation
activities respective organsiation fulfill their objectives.
Capabilities
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This has been evaluated that Marks and Spencer hold effective amount of capability to
introduce a product and services with the help of innovative procedures like, extensive research
of business enivironement in order to evaluate cuurent prevailing trends. Entity is fully capable
to successfully execute 5-year transformation program as to ensure success in retail industrial
segment (Retail innovation: Trends, challenges and opportunities. 2019). With this, company
increases their sales and profitability level in global market. In addition to this it has been
evaluated that entity is having above mentioned potential capability to initiate their business in
Brazil and Poland as it effectively increases their growth opportunities in retail enterprise. Marks
and Spencer are a large-scale organization that undertake use of high and technologies like
cognitive computing and different channel of platform in order to satisfy a consumer demands in
well effective manner. Marks and Spencer possess capability to undertake use of Emotient, as
company operate their functions as a leading and profitable business organsaition in retail
industrial segment. In this it has been evaluated that Emotient, is a software that provide
assistance to detect consumer reaction towards a service, product, display and Signs. With the
assistance of this technology Marks and Spencer effectively increases there share and level of
consumer satisfaction. Thus, it has been determined that with the help of software like Emotient
Marks and Sepncer effectuvelu identify reaction of customers towards display, prouct, signs and
services. With having this capability entity effectively serves their customers in an innovative
manner.
The Industry
It has been evaluated that in retail industrial sector there is significant innovation in this
sector. In this it has been identified that retail industry have undergone with many
transformations as per according to modern businesses. It has been evaluated that over years
trends like cognitive computing, e-commerce are widely undertaken by large scale organisations
those who are operating their services in retail industrial sector. In relation to this, this has been
signified that retail sector constantly innovating as to assure long term sustainability in
marketplace. However according to evaluation it has been signified that there are different types
of innovations being bought in retail industry. In relation to this, there are certain examples
innovations that are brought by leading entities in retail sector Method’s squirt bottle (innovation
in packaging), Coca Cola's engagement programme (innovation in customer engagement).
Greggs' Vertically integrated operations (innovation in business model), Holition, an AR enabled
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mirror from Charlotte Tilbury (innovation within in-store shopping experience), (Retail
innovation: Trends, challenges and opportunities, 2019), (HDFC Bank’s Eva Chatbot
(innovation in communication), (Uniqlo’s HEATTECH design (innovation in product design).
By undertaking proper evaluation of all these factors, it has been identified that innovation acts
as key important elements for organization. This makes entity to undertake use of this aspect and
ensure their long-term sustainability in marketplace.
Illustration 1: Retail Trends
(Source: Retail Trends, 2019)
This has been identified that as to make entry there is a requirement of huge capital. Along
with this there are already existing multinational organizations in this sector those who offer high
quality product and services to customers. M&S operate their functioning in a retail segment as a
leading organization this makes suppliers to build long term relationship with leading
organization. As Marks and Spencer is a multinational brand, the suppliers and vendors negotiate
quite low prices in order to ensure the long-term existence. However there is stiff competiton in
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retail industrial segment as there are number of organizations like ALDI, Sainsbury ASDA those
who offer close substitute of services and products. This makes customer of easily negotiation
power through which they can switch towards another brand without thinking twice. In addition
to this it has been identified that M&S from past many years faces threat of substitution in
product in this sector. As leading organization offer customers with affordable price range in
order to ensure consumer loyalty as in this entity is required to take advantage of product
differentiation concept to generate high profitability. This makes M&S to continuously engage in
the process of innovation and serve customers with high quality and innovative offerings. This
increases entity competativeness in respective industial segment. According to the evaluation it
has been identified that there is a constant rivalry in retail sector, as leading entities like Tesco,
ALDI, ASDA, and Sainsbury offer competitive price range product and services to customers
with the help of innovative techniques in order to draw their attention. Due to this high
competition that are Marks and Spencer regulary engage in innovation practices such as A
new strategic partnership with Octopus to supply energy and services under the M&S Energy
brand from September 2018, New customer insight partnership with Starcount, The
announcement of the start of a programme to create a family of businesses under the M&S brand
and more. With this company ensure its competitive egde in marketplace.
CONCLUSION
As per the above-mentioned report it has been concluded, that innovation is most important
aspect of an organization with the help of which Marks and Spencer can effectively able to
ensure its long-term suitability in marketplace. With the assistance of innovation tool, M&S
increase its market share holding as well as profitability. This has been identified that it is
essential for an entity to continuously engage in the process of innovation as to ensure
competitive positioning in respective industrial sector. In addition to this, it has been evaluated
that it is important for each and every entity to engage in the process of innovation in order to
ensure their continuous growth in respective industrial sector. In this with the assistance of
effective plans as well as strategies entity can effective foster their growth. This has been
identified that Marks and Spencer is an innovative organsiation, as from past many years
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company continosuly engage in bringing innovation through its products and services for
example introduction of frozen food and Plan A.
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REFERENCES
Books and Journals
Acharya, V. V., Schaefer, S. and Zhang, Y., 2015. Liquidity risk and correlation risk: A clinical
study of the General Motors and Ford Downgrade of May 2005. The Quarterly Journal
of Finance. 5(02). p.1550006.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
El-Refaie, A. M., 2013. Motors/generators for traction/propulsion applications: A review. IEEE
Vehicular Technology Magazine. 8(1). pp.90-99.
Goolsbee, A. D. and Krueger, A. B., 2015. A retrospective look at rescuing and restructuring
general motors and chrysler. Journal of Economic Perspectives. 29(2). pp.3-24.
Greer, I. and Hauptmeier, M., 2012. Identity work: Sustaining transnational collective action at
General Motors Europe. Industrial Relations: A Journal of Economy and Society. 51(2).
pp.275-299.
Helper, S. and Henderson, R., 2014. Management practices, relational contracts, and the decline
of General Motors. Journal of Economic Perspectives. 28(1). pp.49-72.
Jurkovic, S. and et. al., 2015. Induction machine design and analysis for general motors e-assist
electrification technology. IEEE Transactions on Industry Applications. 51(1). pp.631-
639.
Noble, D., 2017. Forces of production: A social history of industrial automation. Routledge.
Pound, A., 2013. The Turning Wheel-The story of General Motors through twenty-five years
1908-1933. Edizioni Savine.
Online
INTRODUCING PLAN A 2025. 2019. [Online]. Available Through:
<https://corporate.marksandspencer.com/sustainability/report2018>.
MARKS & SPENCER SELECTS TRUE TO DRIVE DIGITAL INNOVATION AGENDA. 2019.
[Online]. Available Through:<https://corporate.marksandspencer.com/media/press-
releases/2018/marks-and-spencer-selects-true-to-drive-digital-innovation-agenda>.
Retail innovation: Trends, challenges and opportunities. 2019. [Online]. Available Through:
<https://www.hackerearth.com/blog/innovation-management/retail-innovation-trends-
opportunities/>.
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