Managing Innovation in Business: Future Trends and Building Future Innovation Capability

This document discusses the importance of innovation in business and explores the future trends in managing innovation. It covers topics such as the future of the industry in 2020 and beyond, the requirement of innovation in business, and building the future innovation capability of an organization. The case study of Mark and Spencer is used to illustrate the implementation of innovation in a retail company.

Managing Innovation In
Business

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Future of Industry in 2020 and beyond........................................................................................1
Requirement of innovation in business in 2020 and beyond.......................................................2
Building of future Innovation capability of organisation............................................................4
CONCLUSION................................................................................................................................7
REFERENCE...................................................................................................................................9

INTRODUCTION
Innovation is introduced something which is completely new in market. It can be in terms
of product, idea, service, technology. Innovation is important for organisation for its survival
without innovation an organisation can be failed in terms of advancement. Purpose of innovation
for any business is that it provide them with opportunity for success and growth. It helps them to
face adverse situation and increase their profitability along with decreasing cost. Mark and
Spencer is a UK based company providing their service in different country in retailing sector.
The organisation is providing different products like home product, food product and clothing.
Company is providing their products and service both in online and offline stores. Company will
adopt innovation like augmented shopping which create experience of virtual trying of product
and service. For this, company is closing some of their offline store so they can focus on limited
stores. They are adopting innovation as it helps them to get competitive advantage in market and
also provide them opportunity of growth and success. It also enhance experience of customer of
shopping from Mark and Spencer. This project report include innovation and future of
innovation for business in 2020 and beyond. It also include requirement of innovation in 2020
and beyond, building of future innovation capability of organisation.
MAIN BODY
Future of Industry in 2020 and beyond
Digital shop window: Online shopping in increasing as customer are more likely to
prefer online shopping (Ali, Warren, and Mathiassen, 2017). It is increased due to global
pandemic as people are avoiding physical touch and prefer online shopping. After lock down ,
people are still enjoying online shopping in retail sectors. It helps in avoid spreading of disease
along with provide variety of product at one place without moving. Small business are also
shifting to online store as it does not require much investment due to trend of online shopping in
customers. For retail industry, online platform provide huge opportunity.
Bringing online and offline experience together: Due to increase trend of online stores,
business are planning to provide offline experience with online shopping as it will helps them to
increase sales in online stores (Bahl, Lahiri and Mukherjee, 2021). It will provide this industry
with huge profit and growth as customers are prefer online shopping. This will helps them to
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enhance experience of customer and make them engage with organisation product and service. It
also fulfil requirement of customer in both online and offline store.
Changing search habits: Due to impact of global impact, customer is prefer online
shopping to buy product and service. To fulfil changing requirement of customer, it is important
of business to understand need of customers. The customer has also changed their searching
habits as they want home delivery for every product like gardening product as due to lockdown,
people are more like to attract towards gardening product. These interest increase trend of online
shopping and changing habits of customer.
Augmented shopping: Covid-19 has changed demand and requirement of product. In
this situation customer are more aware of health and safety. Before buying any product, they
want to try it and it create ned to virtual changing room. This virtual changing room is based on
approach that allow customer to try cloth before actual buying. It helps customer to interact and
try product online. There are various showroom to be build which can provide virtual experience
of trying product. It will enhance customer experience and make them more satisfied. By
adopting this, Mark Spencer can attract customer towards them.
Staff free and cashier less store: Global pandemic has changed situation as customer
are aware about health, safety and prefer social distancing. It create demand of store which is
staff free and cashier less as it fulfil requirement of customer of social distancing and also
prevent spreading of disease. This will create new experience of customer and fulfil their
demand of self checkout. This system allow customer to come to store, select product they want
to buy that cart can be tracked by a system. After completion of shopping, purchase price will be
automatically paid before departure of customer from store.
Requirement of innovation in business in 2020 and beyond
Innovation is important for any business as it helps organisation to achieve growth and
success (Cantero, Gonzalez and Diaz, 2017). It also helps them to increase their productivity and
reduce cost of business. Mark and Spencer required innovation for the following reasons:
Engagement of customer: Innovation bring attention of customer towards organisation
and its offering. It create distinctive position of product and service in minds of customer and
make them buy company's product and service. It helps to engage previous customer to buy new
products of business and also attract new customer towards product and service of organisation.
Mark and Spencer is bringing innovation which helps them to attract new customers towards
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their product and also allow to buy existing customer to buy more products and service. It also
helps them to differentiate their product from those of competitors.
Ensure growth of organisation: Innovation helps company to bring something new in
market which attract customer towards company. It also helps company to increase price of
product and service to as they are providing innovative product which suits to requirement of
customer. It innovation increase sales of company and make organisation to be more profitable
and successful in market. Mark and Spencer introduced innovation which can helps them to
grow their marketing activity in different market segment. This will provide them economy of
scale as they are producing on increasing level.
Distinct position: Innovation is introduction of technology, idea, product in market
which is completely new (Dürr, Nisch and Rohlfing-Bastian, 2017). It create distinctive position
in mind of customer regarding their product and service. It provide firm with competitive
advantage and provide opportunity of growth. It also reduce cost of company and increase their
efficiency as new technology saves cost of company. Mark and Spencer is introducing is
innovation in market which helps them to create distinctive image of organisation in market and
also provide them benefit of cost and competitive advantage.
Brand value and recognition: Innovation increase business growth and opportunity by
introducing something new in market. In helps organisation to differentiate their product from
those of competitors. It increase their brand value as they are offering something unique in
market and make their brand more recognised among customers. It will allow firm to charge high
price as they are providing valuable products and service which result in increase profitability.
Mark and Spencer is providing innovative and different product which can helps them to charge
higher price for their product and service and also make their brand more recognised in minds of
consumer.
Competitive advantage: Innovation provide firm with competitive advantage and
provide organisation to capture maximum market share. It allow them to introduced their product
and service in different market segment. Increasing market share helps them to achieve economy
of scale. Competitive advantage helps the product more desirable for customer. Innovation helps
to improve quality of product and service which again make them differentiated from
competitors in terms of quality and attribute. Mark and Spencer can get advantage in market by
bringing innovation market, it will make their product more popular in customer groups.
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Building of future Innovation capability of organisation
Innovation is different in different industries and create opportunity for business. To
adopt innovation, an organisation need to build some capabilities which make them able for
future innovation (Luo, 2016). Future innovation require some practice in business which helps
them to able to work on their innovative projects. Mark and Spencer adopt various strategies to
build future innovation capabilities which are as follows:
Business Strategy: For building innovation capability, an organisation should build
innovation capabilities. Business strategies helps an organisation in survival and growth for
facing technological changes, globalisation, disruption of market place and changing customer
requirement. It is important for organisation in build future innovation capacity to develop
different strategy and also makes changes in strategies to adapt changes in organisation
according to changing market place. It is important for Mark and Spencer to be able to modify
their long term business strategy to respond to changing environment. It is important for Mark
and Spencer to prepare strategies in organisation to build capabilities of future innovation as it
helps them to be more adaptive to change.
Intrapreneurship: Intrepreneur refers to entrepreneur or employee who is working in
organisation to develop innovation in terms of idea or project (Nguyen and Hoang, 2021). But
sometimes they face problem of lack of support from top executive, limited opportunity, limited
protection. Organisation often failed to to understand value of talented employee that can lead
innovation in organisation. Innovation in Mark and Spencer should be developed as capability
and not be depend on a certain job role. They should accept ideas given by every member in
enterprise, it should not be limited to Intrapreneur.
Organisation Culture: Idea of innovation can come in mind of owner as well as in
minds of employees. Innovation capabilities of employees is depend of environment organisation
as how employee are served and valued. Ideas and suggestion given by employees are not
usually ignored by top executive without proper listening of ideas. This will not allow
organisation develop innovative capabilities. Manager of Mark and Spencer should develop an
environment in which employee are free to give ideas and suggestions.
Leadership Principle: In an organisation, leadership plays important role for the path of
innovation. To adopt innovation, a company need to be more faster, open and transparent. Leader
is one who prepare their task force to work and influence their behaviour. They prepare team to
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be able to adapt changes as innovation require change in organisation and sometimes employees
does not accept changes. To get innovative idea, change, employees of Mark and Spencer need
to be able to accept that environment that can be done thorough leader. So leaders and leadership
principle are working for innovation and innovative environment in enterprise.
Pool of resources: To be prepared for future innovation, it is important for Mark and
Sencer to create pool of resources which helps them to successfully adopt innovation (Œwierk,
2016). Resources does not only include human resources but different material, financial
resources, technical resources etc. To collect human resource, an organisation put their
requirement in their minds. Collecting effective resources will helps an organisation to develop
capability of innovation and implement innovation without restriction of anything. Employee
also provide valuable ideas to organisation, so it is important of human resource manager to hire
employees with fresh thoughts and ideas.
Developing objective and identify key areas of objective: To develop capability of
future innovation, a firm can need to develop some objective. These objective provide business
with one direction in which they are running their operation. The firm need to identify the areas
to achieve objective in business. It also helps organisation to develop capability of innovation as
they are working to achieve a common object of firm. Mark and Spencer is developing different
objectives along with their area of object to achieve future capability of innovation.
Business capability model:
Business capability model is that model which show needs of organisation to perform its
operation (Ottosson, 2019). It represent ability of organisation to perform day to day activity
along with growth, innovation. It include core business units and operation of organisation, it is
a common way to communicate enterprise capability. This model include different dimension of
organisation's capacity. It show how ell an organisation will achieve something with its
capability and resources. It include various components which are as follows:
People: People include workforce, skills and competencies to perform operation of
business (Popadyuk and Popadyuk, 2018). These are important resource for an organisation as it
make capable to an organisation to adopt innovation and produce goods and services to serve
market. Mark and Spencer has people who are capable of performing their operation along with
development of future innovation.
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Process: Process include different set of activity to complete operation of business. For
an organisation, to develop capability of innovation, it is required to develop process to produce
innovative product and service. It is important for Mark and Spencer to develop a process which
helps to develop innovative products.
Technology: Technology include software, technical tool which helps to perform activity
of organisation. In innovation, technology plays important role as it make them more efficient
and allow them to differentiate their product in market. Mark and Spencer will planning to
improve their technology to build innovative technology which supports their business.
Governance: Governance include clarity of roles and responsibility within organisation.
It create environment which support innovation in organisation and motivate employee to
develop such capabilities.
Porter Five forces model: To analyse capability of company to adopt innovation, Porters five
forces model is used (Redini and Dell, 2019). This model helps company to analyse competition
factor present in industry. It helps to Mark and Spencer to analyse their competitors and ability to
achieve future innovation capabilities. This model include various factors which are as follows:
Competition: Competitor affect business as they affect capability of organisation.
Number of competitor within industry and their offering will affect profitability and growth
opportunity of business. Competition in retail sector is high which affect profitability of business
as competitor is offering less price to customer. By adopting innovation, Mark and Spencer can
differentiate their product and can reduce effect of competition on business. This factors does
will not affect business as they has less risk from this factor.
Bargaining power of supplier: Supplier are those person who provide raw material to
organisation to produce goods and service. Bargaining power of suppler include capability of
supplier to increase price of their offering. Price is depend on quality of their offering and
number of supplier present in market. To adopt innovation firm should has supplier who can
provide them material which is necessary to adopt innovation. In retail sector, there are many
supplier who are providing raw material to organisation. Mark and Spencer has supplier who are
providing best quality of raw material at reasonable price. So they have less threat from this
factor in future to adopt innovation in market.
Bargaining power of buyer: bargaining power of buyer include capability of buyer to
reduce prices offered by firm. It depends of how many options are available to customer and
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their ability to switch to different products. In retail sector, customer has high bargain power but
firm can mitigate that risk by offer innovation. Innovation helps a firm to increase prices of their
product as they are providing valuable product. Mark and Spencer are providing innovative
product in market and building capabilities to future innovation which allow them to charge
valuable service in market.
Threats of new entry: Entry of new firm in industry can increase competition within
industry and can reduce market share (Reis-Marques, and Popovic, 2016). In retail sector, any
firm can enter into industry to do business by offering relatively low price which can affect
business of existing firm. This risk can be mitigated by Mark and Spencer through offering
innovative product and service as it build strong competitive position in market. Mark and
Spencer by offering innovation in market can maintain strong position in market. Strong position
does not affect by competition of new entry.
Threats of Substitute: Threat of substitute is risk of replacing offering of company from
other goods and service(Sanz-Llopis and Ostermann, 2020). Offering product with no close
substitute will helps company to increase price of their goods and service. In retail sectors close
substitute are available but company can differentiate their product by adopting innovation. Mark
and Spencer will provide product with close substitute which helps them to provide value to
customer and also allow them to charge high price of their product and service.
CONCLUSION
From above mentioned project report it can be concluded that Innovation in bringing new
idea, technology, service in market which create distinct image of organisation in market. It
helps an organisation to provide different experience to customer and effectively satisfied their
needs. Innovation in retail industry can change experience of shopping of customer. In future,
retail industry can be more digitalise as they are bringing online and offline experience together
in which that are working of providing offline experience in online shopping. Customer are more
prefer online shopping, so business are providing digital shop window to their customer as
customer are avoiding steeping out from home. Business in retail sector are also working on
augmented shopping as it provide them with virtual experience of trying cloth. They are working
to provide these experience in both online and offline mode. Business are also planning to create
staff less store as it enhance experience of customer. Innovation provide many benefit to
business as it helps them to reduce cost of their operation and increase their profitability. It helps
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organisation to gain attention of customer and provide enterprise with competitive advantage in
market. An organisation need innovation in every step in business including current situation and
future situation. To develop such capabilities, organisation need to develop some new strategies
or need to modify current strategies. Innovation is not centred in some person, innovative idea
can came from anyone. Organisation should not dependent of intrepreneur for innovation but
invite from all members in enterprise. Organisation should create a work culture which support
ideas and suggestion from employees as they can provide organisation with new opportunity.
Leaders also plays crucial part in developing innovation capabilities in organisation as they are
more in touch with team members and can influence their behaviour. The prepare team members
in a way which create innovation opportunity in business.
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REFERENCE
Books and Journal
Ali, A., Warren, D. and Mathiassen, L., 2017. Cloud-based business services innovation: A risk
management model. International Journal of Information Management. 37(6). pp.639-
649.
Bahl, M., Lahiri, S. and Mukherjee, D., 2021. Managing internationalization and innovation
tradeoffs in entrepreneurial firms: Evidence from transition economies. Journal of
World Business. 56(1). p.101150.
Cantero, J., Gonzalez, N. L. and Diaz, D., 2017. Managing innovation in the Argentinian nuclear
sector. Academia Revista Latinoamericana de Administración.
Dürr, O. M., Nisch, M. and Rohlfing-Bastian, A., 2017, May. Incentive Provision and Optimal
Team Size for Managing Innovation. AAA.
Luo, C., 2016. Investigating the role of family ownership and co-operative ownership advantages
in managing innovation and entrepreneurship: a family firm perspective (Doctoral
dissertation, ResearchSpace@ Auckland).
Nguyen, L. A. and Hoang, A. L. T., 2021. Managing Culture for Management Innovation.
In Human Resource Development in Vietnam (pp. 249-275). Palgrave Macmillan,
Cham.
Œwierk, J., 2016. The Role of Business Models in Managing Organisations in Turbulent Times.
In Managing Innovation and Diversity in Knowledge Society Through Turbulent Time:
Proceedings of the MakeLearn and TIIM Joint International Conference 2016 (pp. 785-
792). ToKnowPress.
Ottosson, S., 2019. Financing Innovation. In Developing and Managing Innovation in a Fast
Changing and Complex World (pp. 229-238). Springer, Cham.
Popadyuk, T. G. and Popadyuk, N. K., 2018, June. Management and technologies in the area of
knowledge: The possibility of a single system for managing innovation in city
agglomeration. In Proc. of the 5th Int. Conf. on Management and Technology in
Knowledge, Service, Tourism and Hospitality (pp. 231-4).
Redini, C. and Dell, M., 2019. The Innovation Race: IPR v Knowledge Sharing–Seeking Answer
to Managing Innovation Choice More Efficiently. In ISPIM Conference
Proceedings (pp. 1-11). The International Society for Professional Innovation
Management (ISPIM).
Reis-Marques, C. and Popovic, A., 2016, September. Managing digitally enabled innovation: A
conceptual framework. In 10th European conference on information systems
management (pp. 313-316).
Sanz-Llopis, J. and Ostermann, M., 2020. Innovation in project management through framing
and challenge redefinition. International journal of managing projects in business.
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