Retail Industry Future and Sainsbury's Innovations

The provided document discusses the future of the retail industry, focusing on the innovations and changes that will impact businesses like Sainsbury. It highlights the company's innovative approaches, such as online services and 'Click and Collect' concept, which have been implemented across 200 supermarkets and 30 stores. The report also emphasizes the importance of studying innovation capabilities and resources for future success in retail management.

MANAGING INNOVATION
IN BUSINESS

Table of Contents
INTRODUCTION...........................................................................................................................1
The future of the Industry 2020 and Beyond .............................................................................1
Requirements of Innovation in 2020 & beyond..........................................................................2
Capabilities of Future Innovation in organisation.......................................................................3
CONCLUSION ...............................................................................................................................7
....................................................................................................................................................8
REFERENCES ...............................................................................................................................9

INTRODUCTION
Innovation management is the management of innovation process by the company.
Management of innovation refers to implementing of innovation in the running business and
evaluating its results. It focus towards dealing with the innovation in a organization of industry.
There are many new ideas and innovations brought in by the innovators in organizations.
The report will study about a company Sainsbury, which is a super market company. The
company Sainsbury is a retail company who deals with the selling of products through retail
marketing. The company is situated in united kingdom which stands at second largest position in
the chains of super markets. The report studies the management of various innovations in the
company Sainsbury. It also consist of innovation history of company.
The report focuses on the future of the company Sainsbury in year 2020 and beyond that.
Also the purpose of report is to study the organisation innovation requirement in 2020 and in
further years which states the requirements of Sainsbury for new innovations to achieve its
organization goals. Also the report studies the capabilities of company Sainsbury in innovating
the future capabilities for the organization. This part will include the companies potential in
finding the new ideas for the development of company Sainsbury.
The future of the Industry 2020 and Beyond
With the increased used of technology in every sector of the economy there is also a
drastic change in the technological advancement in the retail sector. As there are increasing
demands by the customers mainly in retail sector. The companies came up with the best ideas
and innovations in order to satisfy the growing need of customers.
The first and foremost change in the retail industry by the years 2020 will be the use of digital
technology. Which will be helpful for the industry as well the customers. Use of digital
technology will minimize the level and the difficulties in providing the products to the customers
(Alexander eds., 2019).
By the year 2020 it is predicted that retail companies will be experts in the data mining of
the customers. So that retail companies will better understand the purchasing behaviour of the
customer and diverting their sales to those requirement. On the other hand social media in 2020
will helps the retail organization in building communication between they retailers and
customers. The retailers uses social media to personally inform customers about the arrival of
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new products. And also sharing their reviews on such product which can be used by the future
customers (Goffin and Mitchell, 2016).
In the year 2020 the retails sectors will also focus on there internal policies like skilful
and educated staff. A very high level of service offered to customers, an interactive environment
in the retail stores which allows customer to inspect about the product and evaluate it by
touching and feeling actual product.
There are few retail companies who are planning to have there small stores and a
showcase stores. While in the showcase stores there are showcase of the available best in class
products. An in the small stores there are goods available at lower price (Matzler and et. al.,
2015). Also the products are delivered online through the virtual delivery system.
Through the coming of year 2020 there is the retail sectors business will become more
quality driven and will focus on the achievement of the companies goals in the organization
context. For the achievement of the goals companies needs to be pervasive. The pervasiveness of
coma-pies will be decided by its services to customers (Mergel,2016). The retail stores focuses
on the providing better services to its customers and building long- term relationships with his
customers. Retailers will be expected to give customers the ability to pay when and where they
want to pay for the products purchased. This will increase the trust between the customers and
retails and build healthy relations between the two (Nambisan and et. al., 2017).
With the drastic changes in the retailing patters of the retail sector there is evolution of
many innovative ides and innovations. These technological advancement will bring a better
image of the retail sectors of the economy. The retail companies will be more driven to the
customer satisfaction rather than focusing on profit. The companies will use digital marketing to
expand their business to as many customers as they can reach. Therefore companies in retail
sectors will achieve there organization goals through the coming year 2020 (What Will Retail
Look Like In 2020, 2016).
Requirements of Innovation in 2020 & beyond
Requirements of innovation helps companies to use creative & new ideas and expand
their business. Innovation further helps firms in achieving their goals. Sainsbury is required to
produce & offer products & services which are environmental friendly. It is essential for
company to produce goods & services which does not harm environment this further helps in
attracting customers. Company needs to offer toxic free products which protect environment.
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Further, Sainsbury is required in making innovation by using latest technologies. Firm is
required to offer its products in various online trading platforms such Amazon, Flipkart, Alibaba
and many more online websites which benefits company in expanding its reach in new market.
Company is also required to implement latest technology such as Omni channel Retail
technology with which customers can order products just by doing text which gives satisfaction
to customers and enhances brand image of company. Through Virtual Reality Sainsbury can
grow in market & enhance its profitability as with this Sainsbury can visualize design of its store
which reduces unnecessary cost and helps companies in designing an attractive stores designs.
Company is also required establish its overall business electronically which helps in its potential
growth. Further, it is also required to use Augmented Reality Technique in all of its online apps
so that customers can try products and can have a satisfied shopping experience. It is also
required for business to promote its business by using digital marketing and invest more of its
profits in online marketing by 2020 as individuals are more active on social media sites.
It is essential for Sainsbury to establishing relationship with customers by improving its
offering in accordance with customers requirement which enhances customer base, market share
& brand image of company.
Organisation is also obligatory to introduce new products and to add new product line
as its brand image & customer base is high introduction of new product maximises profits of
firm. BY 2020 it is essential for Sainsbury to expand its business as competition in retail sector
is increasing and many companies such as Tesco & Arcadia Group is leading the market. Thus, it
is required for firm to introduce & implement new ideas which minimises cost of production and
enhances profits.
Sainsbury is also required to maximise its market share & retain customers reducing
wastage in its production process. It is essential for company to use technologies to improve its
production process and it needs to use latest technology for managing its financials at one place
through which firm is able to track its over all profitability. It is also required for company to
make innovation in its CSR strategies so that individuals of society gets attracted and thus
profitability of firm increased.
Capabilities of Future Innovation in organisation
Suggest- It is recommended to Sainsbury to offer its products & services by using online
platform this all helps company in offering its products & services in many countries across the
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globe.. So, that customers can order products just by a click. Company is also suggested to
reduce wastage of products by decomposing waste food into bio-methene gas with this company
can set up affordable prices as it minimises cost of its products. This further helps in maximising
profits of firm. Sainsbury is also suggested to make innovation in its pricing strategy by
introducing various software which evaluate inventory and cost required in manufacturing of
each of its products & services. As company is dealing in different types of businesses it is
suggested to use a central system through which it can run all of its business(Herbst and Barnard,
2016).
Reasons- It is suggested to company for making innovation as it helpful for it in
expanding its business and also facilitate potential growth. Reason behind introducing online
business is it enhance market share & profitability of company. As with this company is capable
to trade in many countries and now a days customers are preferring online shopping as this
reduces their time. If Sainsbury use offer its products & services by using various online
applications and offer its products on its own online website than it helps it in expanding its
brand image. If company provide online facility than it reduces its expenses as it does not require
to invest much in establishment of new stores. AS establishments of new stores requires huge
cost and it also reduces time of firm in designing of its stores.
With digitalisation Sainsbury can also promote its products & services by using various
social media sites such as Facebook, Instagram & Twitter. This attracts young generation and
enable company in retaining loyal customers. Thus, implementation of online trading platform
helps company achieving its future goals as it satisfy customers needs and facilitate market
growth. Further, wastage of food is minimised by company as it is in favour of society and
individuals of society gets attracted if Sainsbury uses this technique in its business. This also
helps company in achieving trust of customers and that enhances customer base of firm.
Impact of Change- If Sainsbury implement this technology in its business than companies
financial position gets strong and it is capable to compete with its competitors as they are also
using latest advance technology and company is also able to offer better services than its
competitors. Implementation of this innovation techniques affects various factors which affects
business. Impact of change affects various factors which are discussed below-
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 Research & Development- For implementation of innovation like for establishing online
business company needs to do research & development. Thus, it has an impact on
research methods used by company which requires cost and time. Firm needs to do a
research as to in which market online business is beneficial. In research & development it
is also determined by company as to what type online apps is effective and this
innovation is beneficial for firm or not. Companies research & development techniques
are largely affected with innovation technology is changing rapidly as it is require to
evaluate & analyse trends.
Further, for decomposition of food into bio-methen gas also requires research as to
techniques and hat are its consequences and benefits. Sainsbury also require to do a research as
this innovation is favourable for environment or not. A research on cost required in this
innovation is also done. Thus, this innovation or change has an impact on research &
development of firm.
 Required Resources- If Sainsbury wants to change its trading method and introducing
online trading in its operations than for which it requires various resources and which
further require capital. Company require a technical team who manages all its online
trading software. It also needs to establish a central server and that should be strong so
that customers can order products & service any time without suffering form any
problem. Company needs latest software such as Virtual Reality and Omni Chanel.
Further, it also requires staff to manage all is apps and update products & services on its
online websites(Kaivo-oja and Santonen, 2016).
 Technical Skills Required- There are lots of technical skills which are required by the
Online business in order to gain huge market share and customer base worldwide.
Moreover, the owner of the online business must posses effective sales skills in order to
influence customers to buy their product, for example the owner must product free gifts
with the other products in order to attract customer to purchase their products often.
Moreover, the person should posses the adaptability skill in order to cope up with the
technological changes and market trends and according to those changes they should
modify their strategies to adopt those changes in an organization(Lusch and Nambisan,
2015).
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 Legal Aspect & Compliance- For offering products & services of Sainsbury through
online platform company needs to follow rules, regulations and provisions of various
Acts & Laws. Firm needs to comply with all taxation policy and if its is not able to pay
taxes than it has to pay penalties. Thus, it needs to pay taxes at an applicable rate and it is
required to follow taxation policy of each country and geographical area. Payment
gateway is another thing which impacts the changes as different country is using
different payment methods & currencies. For providing online products & services needs
to follow all guidelines related to patents, copyrights an trade marks. Sainsbury laso
needs to comply with provision of Equity Law, Health & Safety Act and other Laws
which is applicable on all of its operations.
 Cost of Change- Innovation in online technology also impacts cost of products &
services offered by company which in turn has an impact on prices, AS with the
introduction of online trading prices of products gets reduced and this enhances sales
volume and customer base of company. This all indirectly impacts profits and market
share of firm.
Feasibility- Innovation always need changes and new technology which make valuable
growth and effective for the future of the company. That is very one of the most important for
building the future innovation's capacity for making the marketplace. It is help for attracting the
customers towards the company and it also builds trust and loyalty for the customers. Capacity of
building the approaches which help for building the future innovations into sustaining the needs
of business(Ciriminna and et.al., 2016).
Approval process(by broad meeting and formal meeting- Both are giving
responsibilities to the food manager for take care of the customers and individuals and on the
other hand the standard food act is saying that the human from the food. Manger have to follow
the legislation in appropriate manner because it always helps for stability in the quantity and
quality of the products and service. By online innovation and decompose the waste food into bio-
methane gas is one of the way to attract the customers(Cheng, Yang and Shen, 2015).
Applications of changes- The uniqueness of the products and services has potential
opportunity for the company and it has high power and purposeful in the commitment intend to
build the capacity, capabilities and competencies on the basis of the uniqueness. Innovation
means implementing on the invention. The main key for building the future capacity for
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considering the online innovation in the organisation and also decompose the waste food into
bio-methane gas.
Review and impact of the change-It is most important for building and making the
future capacity of the innovations. It is always required for rethinking and maintaining the
existing strategies of the business and organisation. From high level of the business strategies it
relates to the changes and innovation which is main important key. From making the long term
strategies of the business it is one of the useful and helpful guide for potential rapid changes and
effect on the business(Lehmann, Grastien and Van Hentenryck, 2016).
Building a culture of innovations is a capacity of the business for the future innovations
capacities. Its necessary to developed the products and services from effective ideas for the
future growth and success of the company. If employees are give their effort and contribution for
achieving the future goals and objectives. It also helps for building the future innovation
capacity.
Those have the key factors of building the future innovation capacity with the help of the
company which is able for gaining the higher quality of the outcomes and results in the future .
Future growth is one of the very important aspect for the company and review of the structure
and strategies are help for maximising the executive and employees. From that it need to identify
and define measuring the leadership of strategic competencies for the innovation through the
organisation.
CONCLUSION
Innovation management is the management of innovation which is maintained by top
management of the companies. Therefore there are many innovations which are directed and
controlled by the innovators in company. The above report states that in company Sainsbury
there is innovation of ideas taking place in order to expand the business practices by the
company. The report concluded that for the achievement of goals by the company Sainsbury
there are requirement of the innovating and inventions in company. Also to survive it fast
moving industry of retail this is a prime importance for the company to extent its objectives.
The reports included that in order to cope up with the growing requirements of the
customers, company Sainsbury innovates various new ideas and products. The innovations
includes the use of social media, online shopping, omni-payment options which helps customer
in paying from the place where they are. The report also studies the future of the retail sector in
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2020 and beyond that and how it effects the business of Sainsbury. Reports states that there will
be drastic changes in the retail industry which are customer driven.
The report states that company Sainsbury innovated online services, use of decompose
waste food into bio-methane gas, also the company started a new concept “Click and Collect”
which is availed by 200 supermarkets and 30 stores of Sainsbury.
Furthermore the report states future innovation capabilities for the organization which
includes the study of the companies perimeter in the innovation of new ideas and purpose of the
company Sainsbury. The company uses available resources carefully and effectively so that they
can be used in proper manner. The company Sainsbury is highly innovative and uses range of
advanced techniques in promotion of their services. Which leads to more customer satisfaction
and there is increased profitability to company.
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REFERENCES
Books and journals
Alexander, B. and Joe, T. eds., 2019. Managing innovation: internationalization of
innovation(Vol. 34). World Scientific.
Cheng, X., Yang, L. and Shen, X., 2015. D2D for intelligent transportation systems: A feasibility
study. IEEE Transactions on Intelligent Transportation Systems.16(4). pp.1784-1793.
Ciriminna, R. and et.al., 2016. Industrial feasibility of natural products extraction with
microwave technology. ChemistrySelect.1(3). pp.549-555.
Goffin, K. and Mitchell, R., 2016.Innovation management: effective strategy and
implementation. Macmillan International Higher Education.
Lehmann, K., Grastien, A. and Van Hentenryck, P., 2016. AC-feasibility on tree networks is NP-
hard. IEEE Transactions on Power Systems.31(1). pp.798-801.
Matzler, K., and et. al., 2015. The impact of family ownership, management, and governance on
innovation. Journal of Product Innovation Management.32(3).pp.319-333.
Mergel, I., 2016. Agile innovation management in government: A research agenda. Government
Information Quarterly.33(3). pp.516-523.
Nambisan, S. and et. al., 2017. Digital innovation management: Reinventing innovation
management research in a digital world. Mis Quarterly.41(1).
Kaivo-oja, J. and Santonen, T., 2016. Futures of innovation systems and innovation
management: open innovation paradigm analysed from futures perspectives. In Open
Innovation: A Multifaceted Perspective: Part I (pp. 111-158).
Lusch, R.F. and Nambisan, S., 2015. Service innovation: A service-dominant logic
perspective. MIS quarterly. 39(1).
Herbst, D. and Barnard, B., 2016. Innovation Management in South Africa: An Inquiry. J. Mgmt.
& Sustainability. 6. p.34.
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Online
What Will Retail Look Like In 2020. 2016. [online] Available through
<https://www.pymnts.com/news/retail/2016/retail-outlook-2020/>
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