Managing Innovation in Business

This report discusses the importance of managing innovation in business and focuses on the innovation roadmap of Tesco. It explores the future of the retail industry in 2020 and beyond, highlighting the opportunities and challenges. The report also provides insights into Tesco's innovation requirements for future growth.

Managing Innovation in Business
Writen By:
Assessors/Tutor’s Name:
Nyerho Odje Odje

Table of Contents
EXECUTIVE SUMMARY.............................................................................................................5
INTRODUCTION...........................................................................................................................5
Purpose of the report....................................................................................................................6
Innovation roadmap.....................................................................................................................6
MAIN BODY..................................................................................................................................6
Future of retail industry in 2020 and beyond.........................................................................6
Tesco innovation requirement 2020 and beyond..................................................................10
Building the future innovation Capabilities 2020 and beyond of the Tesco.......................12
CONCLUSION..............................................................................................................................15
REFERENCES................................................................................................................................1
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EXECUTIVE SUMMARY
Innovation is the introduction of implementing new concepts and ideas that include
launching the new products or carrying out some new combinations to attract a huge range of
consumers and produce new growth and profits for the company. Innovations are some small and
gradual improvements of current products, services and processes. They can be some business
models or technological inventions that are ground breaking and supports industry to transform
effectively and improve productivity. Innovations are the plans and procedures of new ideas
which are turned into action plans and are implemented and developed in businesses to obtain
success Innovations in an organization support to reduce cost and maximize competitiveness. It
also helps a company to improve value and brand recognition, maintain new relationships and
partnerships with economically developed organizations and improve profitability that increase
company’s turnover. Managing innovation is the process of balancing, maintaining specific
innovative ideas.
INTRODUCTION
In this report, Tesco has been chosen as an organization. Tesco is the leading giant
supermarket chain in the United Kingdom. It has started its business as a supermarket of grocery
in the food industry but as the business started to grow it started operating in other sectors such
as textile, insurance, finance, mobile and electronics. Tesco is producing its own product. It is
one of the one of the top retailers which hold third position and responding to changes very well.
it also started operating in the high streets of UK and the consumers availed Tesco services in
different types of stores like Tesco metro, Tesco extra, Tesco express etc. It is a joint venture
with the royal bank of Scotland and developing its business effectively according to the demands
and pioneering in various innovations. In 1990, Tesco faced a strong competition in the retail
industry and found out necessary steps to be taken. After facing these situations Tesco started
pioneer innovations that focus on information and technology system. One essential innovation
in Tesco was replenishing application system that controls inventory management system of it.
Tesco has some major auxiliary innovations such as oracle retail warehouse system of
management, club card scheme and online shopping website that is Tesco.com. Online shopping
services offered reasonable prices comparatively and maintained the quality of a product very
well.

Purpose of the report
The purpose of this report is to provide the roadmap of Tesco’s innovation. Its practices and
activities involves in innovation, its capabilities that are required for making innovations and its
strategies to attract consumers by advertising. This report provides the mission, vision and roles
that are involved in the achievement of success and process, procedures and activities that are
required for the making innovations successful. This purpose of the report is to identify, analyse
and demonstrate Tesco's innovation management process. Managing successful innovations
include increase productivity and highlight the unique qualities and value of the business. It
includes tackling and handling the activities that are required to introduce something new and
modern as per the requirements of new generations. This report provides the management of
leaders recognizing Tesco's success step by step. Organization always first critically analyse
which kind of innovations are suitable and turn into success. It provides the most important
successful innovation plan which impact highly on the future of Tesco in the industry. The
purpose of this report is to provide the requirements of Tesco for planning innovation. It analyses
the abilities and capabilities of Tesco to be implemented for performing well and lead in the
retail sector. Its purpose is to provide the required ideas which help in developing the interactions
between Tesco and its consumers and develop effectiveness to achieve competitive advantages in
the future and beyond it.
Innovation roadmap
MAIN BODY
Future of retail industry in 2020 and beyond
Retail industries in 2020 and beyond will bring changes in demographics, technology and
consumers needs and demand. The SWOT analysis tool support to benchmark business
performances and identify competitive stance of retail industry. Swot analysis depicts influencers
and macro and micro factors which have tremendous effect on retail industry in 2020 and
beyond. This tool manifests all the discussions of pertinent factors which specify the strengths,
weaknesses, opportunities and threats that predominates external and internal environment of
retail industry respectively.

Strengths Weakness Opportunities Threats
Strengths of an retail
industry will be that it
will perform strongly
across all the
segments of market
including supply
chain internationally,
marketing strategies
that are innovative,
strong connect on
social media
platforms, positive
image and have to
focus on fashionable
trends. Retail industry
has focus on
delivering high class
consumer experience
and acquires strong
consumer loyalty. It
will have robust
logistics management
and supply chain and
ethically and
authentically sourced
products.
High costs of non-
strategic feature that
includes free shipping
of the retail products
which allow them to
reach each and every
corner worldwide and
hits the margins and
maximizes the
overhead expenses.
Retail industry will
have opportunities to
scalability of retail
platforms across the
markets.
Opportunities in shop
able social media post
to enhance its
operations and expand
retail product
portfolio. It will get
opportunity to add
many varieties to its
products, technical
investments of
innovations and
steadily change global
fashion trends. Retail
industry will get
opportunity of
wavering preferences
of buyers, improve
income and make
choices of better
lifestyle. Making
advancements in
technology will
formulate huge
opportunities of
growth in industry.
Retail industry will
encounter threats of
competition in both
online and offline
segments. Industry
will face shift in
dynamics of E-
commerce markets
and geopolitical
uncertainty occurred
due to Brexit. It has
threat of data security
and effect of foreign
exchange fluctuations.
Retail industry will
have cyber threat and
threat of data security.

Pest analysis tool supports to study various influencers and trends which impact the retail
industry. It is a structure to analyse and recognise the consequences of external factors on the
retail industry in 2020 and beyond.
Political Economical Social Technological Legal Environmental
Political
factors that
will put
impact on
Retail
industry are
impact of
Brexit, trade
wars.
Economic
factors which
will affect
retail industry
in 2020 and
beyond are
crisis in
economy and
vitality in the
rates of
foreign
exchange
Social factors
that will
affect retail
industry are
the
modifications
of consumer
preferences
and the
impact of
online
shopping
which will
gain
tremendous
prevalence
over shopping
in shops and
malls.
Technological
factors will be
the supply
chain
arrangements
which will
overhaul.
Effective
digital
transformation
and
advancements
in technology
will boon the
retail industry
very strongly.
Legal factors
of retail
industry in
2020 and
beyond will
be the cyber
threats and
security of
consumer
data.
Biggest
environmental
factor that will
impact on
retail industry
is carbon
emissions
from the
shipment of
their products,
packaging
waste,
depreciating
consumption
of energy and
boost
renewable
energy
sources.

Porter five forces is used to analyse competitive environment that includes competitive rivals,
threat of new entrants and substitute, bargaining power of suppliers and consumers.
Competitive
rivalry
Threat of new
entrants
Threat of new
substitute
Bargaining
power of
suppliers
Bargaining
power of
consumers
Retail
industry will
face
intensified
rivalry from
the entry of
foreign
players and
E-commerce.
Consumer’s
low switching
cost
maximizes
rivalry that
will make
retail industry
fragmented.
Entry of a
new retailer
will be quite
easy and
simple so
retail industry
player’s needs
to establish
appropriate
distribution
channels and
acquire
economies of
scale to
compete
effectively.
Threat of
product
substitute will
be low to the
retail industry
because
consumer will
prefer
purchasing of
goods from
the local store
instead of
buying from
the retail
industry.
Retail
industries will
have low
switching cost
that makes
the power of
supplier low
and can
switch easily
to other
suppliers.
Consumers
will be price
sensitive and
will have
entire
information
regarding the
product and
its cost and
low switching
cost can give
high
bargaining
power to
consumers.
These tools will quickly redefine and develop new strategies to adjust in emerging
industry. It is recognized that as the period changes there will be some more chances of getting
fresh innovative waves of opportunities. Retail industry will make high operations and
contributions in providing unique conveyances to shoppers. Industry will also contribute in
economy to increase volume of gross domestic products. Industry will utilize hi-tech ideas like
developing existing E-commerce and bring stores to consumers, Retail industry will use extra
ordinary intelligence to develop and improve advancements to grow business through E-
commerce. Using of high technologies and online transactions will make consumers simple to

transact (Shankar and et.al, 2020). Modifications will impact environment in reviving all the old
concepts of retail industry and bring several changes and formats to gain confidence of their
consumers. Retail industries will adapt new shifts in demographic and preferences of customers
by considering these changes. Retail industries will make possible improvements in operations
and boost their sales by consumer centric approach. Retail industry will focus on making unique
innovations, technologies and leveraging insights for developing new products according to the
current and future trends (Roggeveen and Sethuraman, 2020).
Tesco innovation requirement 2020 and beyond
Tesco innovation is vital for the company as it helps an edge in penetrating faster market
and provides with better connection to develop new markets and helps in satisfying needs and
wants of the business in order to get a competitive edge in the marketplace which helps in
building brand image of the company in positive and favourable manner which in turn can lead
with big opportunities for the company to expand and diversify its business all across the globe
and which in turn leads to build brand image (Bocken, Geradts ,2020).
It is required by the Tesco to account for innovation as successful exploitation of new
ideas is crucial for business to improve its business processes, bring new and improved goods
and services in the marketplace which will not only increase the efficiency but also accounts to
improvement in its profitability (Escrig,2020). Organisation adopting to innovation also accounts
to advancement of society as it helps in solving various kinds of social problems and helps in
increasing capacity of society to act to that innovation being laid down by the company. By this
it will help in ensuring its stakeholders about there maximisation of return on investment,
effectively achieving business goals that are in regards with the growth of the company, helps in
competing in the marketplace productively and responding in effective and efficient manner to
the disrupters of the industry and helps in maximising market share in terms of capturing huge
customer base with increase in its profitability and sales revenue, Since this refers to creation of
new ideas and concepts which helps in generation of new goods and services as it helps in
getting with the ability to influence minds of its customers.
As Tesco is accounting to innovation of micro home deliveries where it accounts to
delivery at minimal amount it helps Tesco in a way to capture appropriate potential target market
which helps in building brand loyalty of its customer towards the company products and services

which will also lead to increase in positive spread of word of mouth whereby it will account to
getting and edge over the competition and winning in the marketplace by dominating market
share of that region in which its operates (Fonseca, de Faria, Lima, 2019).
One more innovation that company accounts is for its Photoshopping list which is a great
innovation whereby it enables customer to upload what is being required by them as there
shopping list on company websites which then helps in quickly responding to the challenges
faced by the company and accounts to it various business dynamics that is being developed by
with the help and ability of technology and humans to do things differently which in turn helps
company to being served as effective tool to let business with transformation and accounts to its
overall sustainability. It refers to company being innovative where it is willing and competent in
knowing how to act and think differently which helps company to foresee and solve challenges
and respond to various that are uncertain and which is not considered may lead to kick out from
the market.
Tesco should account to innovation beyond 2020 where it can account to have artificial
intelligence and use of robotics where it will account to the reduction of human efforts and
company getting more advantage by having valuable insights about its customer requirements
which can be satisfied more efficiently which serves as part of innovation.
Tesco should build upon and continuously account with the technology which guides
with the innovation. One way where it can also account to be innovative is by going green and
generating awareness about the less use of plastic and how to dispose of the same.
Tesco requirement to innovation is to survive in the marketplace and accounts to be at the
position where it can dominate the market share and be the first choice of target customer and
account to high sales and profitability.
These requirements of innovating new things can be fulfilled by the company in making
its process so well designed where it invites new ideas, opinions on side of various business
parties, hiring and recruiting well qualified and trained employees who guide with the same and
accounts to innovation as mentioned above.
Various issues which come in the way of implementing various innovations can be the
company taking within increase in the cost which as a result to cover the same accounts to
increase in the prices of its products and services which can as a result lead to the loss of market
share and competitors being coming in the picture.
Building the future innovation Capabilities 2020 and beyond of the Tesco
Building future innovation capability is defined as company’s ability to identify various
ideas that are new and transforms the same into new services and products, processes or services

that helps the company in having benefit in various areas. For company to accounts to its
innovation it needs to lay's down and develop a culture that is innovative which welcome ideas,
opinion, view and many others from all level and hierarchy in the company as it is never known
which ideas can work in which situation which helps company to accounts to its fostering
growth. The culture that embeds new behaviours, new ways of working and adopting to
company values and its vision and mission helps in bringing efficiency in business operation and
helps to strive and survive in various business dynamics. Strong culture helps to eliminate,
diagnosing barriers to innovation which helps in deriving business operation, system, and
structure with smooth functioning (Guimaraes,2016). Future innovation capabilities increase
6company abilities to innovate new products and services with the right framework to achieve
innovation goals, these capabilities can be built by the company if it accounts and follow right
set of procedure such as
Building on corporate leadership principles – It states that company is required to adapt to
leadership style that is flexible enough and not leads to stress at the workplace, where it invites
new ideas and principles to contribute in decision making process which will help with
increased chances of building future innovation capabilities where efforts leads to transform
company to become more transparent, open and faster in its business process which will be
required by the company beyond 2020 to have company accounting with right direction and
guidance to achieve goals. (Janjić, Rađenović, 2019)
Defining key objectives of the company for better performance – It states that company that
needs to account to innovation at workplace it is being require by the company to have clear set
of objectives which guide and give strategic direction in which company can proceed to achieve
it future innovation where it takes into consideration to bring better product and services to
account to capture market in faster means, how and by what ways to become more competitive
in marketplace, transform the company to meet the challenges of a faster and changing future,
which technology to adopt at which cost which will provide support to various innovation
capabilities in the company that will guide its future, developing modern human resource
function with a strategic role in the company, it is required by the company to prioritize its
objectives which helps in meeting targets of the company that are moving in nature (Johnsson,
2016).

The future capabilities for accounting to innovation can also build by the means of identifying
relevant areas that support the objectives of the company such as areas where the core teams
needs to work on and get better results and overview which can be divided into the organisation,
products and services, infrastructure and support for the company.
Within the concept of organisation, it covers things such as teams of leadership, senior
management. Middle level managers, HR and various other organisational functions and
structure , how to develop and identify resources and employees that could be used efficiently,
its culture whether its favourable or unfavourable that supports to determining of employees
satisfaction which in turn helps the company with getting various innovative ideas that builds its
future capabilities and thrive for the success of the company (Johnsson, 2018).
It infrastructure and support for innovation lays down ideas and innovation
management systems, with consideration of how the company work with other systems ,
measurements, metrics that is concerned with the development of overall system that supports
and taps into various are of business operations. It will helps in meeting with vast business
operations which will ensure the smooth flow of business operation and will account to
managing various things beyond 2020
Products / Processes and services – It lays down research and development from
various customer surveys, market research, feedbacks from public that accounts with the new
product development or improvement in the existing products , process and services which helps
in attracting large customer base and helps in generating brand loyalty that support innovation in
the workplace (Vanhaverbeke,2017) . This also accounts to how this could be applied on digital
reach whereby company is constantly updating with its technology in areas of innovation where
its is laying focus and accounting to innovation which allows its customers to post their shopping
list on websites of the company and ensuring the process with minimal and no flaws or errors
which helps the company in dealing with business dynamics and survive in highly competitive
business environment. This helps the company with various analysis of its key performance
indicators which can be disrupted and utilised in effective and efficient manner. The company
needs to be highly focused and understand before implementing any strategy of innovation
whereby it suggests having to have complete research on market and have through study
whereby it will account and gets to know with better understanding about the changing needs
and wants of its customers which in turn will help in developing future capabilities of innovating

new products ,services and processes that satisfy the needs and wants of its customers and helps
in creation and positioning of brand image (Troise, Matricano, Sorrentino, 2020). Accounting
with new launch of products services and processes will help in keeping company with the trend
and exercising to adapting to change which could be beyond 2020 and will serve as innovation
for company.
Developing a team of innovational professional- To account to growth of innovation
and regards with its future capabilities of performing the same, it requires on the end of Tesco to
employ individual who are highly skilled, talented, qualified and possesses various qualification
to support for innovation at workplace. As innovation is being understood as the process of
developing new ideas which gives rise to new products and services, which are generally being
implemented by the individuals who are having creative mindset, with various skills such as
problem solving, data interpretation, analytical thinking, communication, interpersonal,
networking and various others which helps to reach the innovation of new things in the company
to its end customer more prominently and in ways which attract large pool of target audience to
get the feel of company products and services by which company can accounts to regular
improvements in its new launched product and services by collecting review which helps this
professionals of innovation to account to and consider various problems and make decision more
effectively which supports and guide with various business dynamics in the workplace ,
it is required specifically by the company to account to its various internal capabilities
such as its strengths and weaknesses that helps in analysing future capabilities of innovation and
helps the company in development of new products and services which satisfy the needs of its
customer in a way which its competitors lack to achieve which also helps in providing edge over
the competition and winning in the marketplace (Rahimi, 2017). it will accounts to new idea,
thoughts and opinions which will enhance the decision making in the future and accounts to
innovation beyond 2020
Giving sense of freedom to employees lays down to innovate new products and services
it is being required by the company not to stress out its employees rather than giving freedom to
work according to their own interest which will give sense of understanding for employees that
their efforts are being valued and will lead to scenario where they can derive high productivity at
workplace which will lead to fresh thought and insights in the company which gives rise to

innovation in the workplace and as a result helps in boosting the profitability and sales revenue
of the company.
Providing team with the resources that can contribute in leading to ideas that are
innovative in nature. Company should account and provide with the right resources which helps
in execution of innovative ideas in manner that is effective and efficient and helps the company
with the means of achieving its common desired business goals whereby its competitors may
find it hard to achieve to the same. The company is required to invest in its research and
development to allow its creative teams to execute the concepts of innovation for future
development of products, services and processes. Optimum utilisation of resources will helps
company to invest in various other opportunities in future which will helps the company in
various cost cutting and will account to innovation beyond 2020
Investing and providing nourishment of employees by the means of training and
development whereby it gets them with the acquaintance to upgrade skills, knowledge of
individual/ employees which may lead to employees contribution in the workplace by providing
various ideas/ opinions that contributes in the innovation process of company which can be terms
of launching new processes, system, structure and various others. This could be by the means of
training and development which will helps the company to account to upgrading of skills as a
result leads company with having creative mindset which will accounts to innovation capabilities
beyond 2020
Allowing employees with the chance to fail which serves as there part of learning new
things and experiencing things in the initial stage by which they develop understanding which
helps to select that alternatives in part of innovation that contributes in success and
implementation of strategy that best fit the process of developing future capabilities and help in
taking and accounting with minimum flaws and errors to implement new ideas of launching new
things in business operations
Company also needs to account to appreciation of efforts for its individual who
contributed in a way or another to the process of innovation which will guide and help company
with the increased level of motivation of its employees who will also accounts to contribution
being made in the future process of the company and helps in getting valuable insight and
opinions which foster and drive business growth and will help the company coming up with

innovation that is never ever seen before and accounts to be at position which is non beatable for
its competitors.
The innovation can be accounted with brainstorming model which is a group creativity
techniques by which efforts in the company are being made to find conclusion for various
specific problems which accounts to gathering list of ideas which are on the spot being
contributed by various members.
Road Map- Innovation requirement 2020 and beyond of Tesco
Innovation
project
2020 2023 2025 2030
Photo -shopping
Artificial
intelligence
Bar code
scanning by
customer
Self made bills
systems
CONCLUSION
This above report concludes that retail industry has bright future as it started evolution of
innovations to come up with such developments which supports their businesses to survive and
grow effectively. It also includes the different opportunities that are utilized and must be utilized
for achieving success. This report discusses the different situations and challenges that are faced
in the industry in this on-going pandemic. It describes the role of information technology and
advancements that are implemented to make innovations in the retail sector by accepting
behavioural changes of consumers. This report analyses the methods of retailers in splitting up in
the industry. It recognizes the contributions of retail products in the gross domestic products.
This report analyses that this retail sector is the fastest growing unit in the industry. Consumers
are demanding physical stores related to brand. It studies that a wide range of challenges to
figure out the sensibilities and requirement of youth consumers and their emerging tastes.

Globalization is shrinking all over the world and bringing procession challenger brands that will
never end. It analyses that retailers must consider right opportunities and face difficult challenges
to establish effectiveness in the business. Company provide right resources which helps in
implementations of innovative ideas in manner that are effectively efficient and achieve its
desired goals that their rivals find hard to compete. It is concluded that Tesco has to leadership
style that is flexible enough and leads to reduce stress at the workplace. It concludes new ideas
and principles to contribute to decision making process which will help to increase chances of
building future innovation capabilities. Therefore, this report concluded that future of the retail
industry is expected as a major factor to enrich the economy in terms of income and employment
in this generation.

REFERENCES
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