(PDF) managing innovation in Business

Managing Innovation
in Business

EXECUTIVE SUMMARY
The whole report is based on how business could manage their innovation with help of
management and other methods. As innovation in current context is very much important and
essential one without the new form of innovation and creativity it becomes impossible for firm to
manage its resources and working of employees. For this purpose M&S is taken in report that is
one of the leading chain of retail store of UK operating all around the world. The company is
looking forward in its Plan A of 2025 that is focusing mainly on upcoming technological
changes and innovation in retail sector.
The report also discussed the current and future growth possibilities of company in retail
sector so that development is fostered with help of this. There are many chance and technological
opportunities that market is having in current time but it could only be grabbed by M&S if they
are including culture of innovation.

TABLE OF CONTENTS
INTRODUCTION AND PURPOSE...............................................................................................1
FUTURE OF THE INDUSTRY 2020 AND BEYOND.................................................................1
ORGANISATION’S INNOVATION REQUIREMENTS 2020 AND BEYOND.........................3
BUILDING THE FUTURE INNOVATION CAPABILITIES FOR THE ORGANISATION......4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION AND PURPOSE
Within context of business, it is very much important that there are regulating regular and
continuous innovation and adding up within digital technology (Biemans, 2018). Managing all
these types of innovation and technological revolution is essential that will enable organisation to
gain their competitive advantage over their rivals in marketplace. Innovation management is that
combination of innovative process along with change management which includes products,
services and whole organisational change. These innovations also regard to as ISO 50500
standards which are developed by ISO TC 279. This will be including all types of techniques,
tools and tactics which are used by company and its management to help develop common
understanding to goals and objectives of company.
This particular report is based on managing innovation within context of Marks and
Spencer which is selected within this study. Marks and Spencer (M&S) is referred as one of the
leading chains in retail sector operating all over the world with having its base in UK. There are
number of innovation which are included within M&S and that are needed to be managed in
proper manner so that performance of company could be managed.
The report will be covering future of industry in 2020 and beyond in context with M&S
and retail sector of UK. Further the requirement of organisational in terms of innovation in
coming year of 2020 in global market is studied. Then towards the end building the future
innovation capabilities for organisation will be included.
FUTURE OF THE INDUSTRY 2020 AND BEYOND
As with the announcement of UK government to leave the European Union till 2019 this
have one of its deepest impact on retail sector of UK (Tidd and Bessant, 2014). The post Brexit,
it is very much important that all retailers are thinking more of customer’s changing demands
and behaviour as well. As per one of the leading digital innovation consultancy firms, Futurice, it
was included that the retail sector will witness about 8 key IT, social and cultural changes which
will mostly driving opportunities for them in 2020.
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Figure 1: Changing customers trends in retail sector
[Source: New Smart Consumers Set the Pace for Retail Change, 2018]
Time as luxury purchase
In this current scenario, where the people or customers are running out of time and have
too much to be done in such short span of time also need to control their logistics as well. For
this, it is very much important that retailers are offering them door step delivery of products
which must be flexible and having instant purchasing apps as well (The future of retail, 2018).
The emphasis of customer is mainly on saving up their time, convenience of shopping and
immediacy so that they could be at ease of shopping. It is also regarded that in the coming future
all the free time of customer will be converted into shopping time which is mainly done with
variety of purchasing applications.
Robots at service
As the coming age is already defined to as having most influence of robotics which is
mostly taken from the self-service to warehouse logistics. The increased automation in form of
robotics will be all taking over the business and operations of companies which is also having
self-serviced warehouse logistic with it (Archibald and Archibald, 2016). This is already taken
over most of business and sectors like that of retail, construction and culinary as well. Business
and companies are having increased number of outsource job which is having certain amount of
challenges like that related with monetising.
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New payment trends
There are many innovation in terms of payment for the people which is collaborating
with the impact of smartphone application and enabling people to pay at any time. It is also
researched that about 2/3rd of payment of Chinese consumers are made with help of mobile
which is more trending and driving lifestyle app like that of WeChat and Alipay. Further in
coming future within 5 years there will be more increasing trend of biometric payment which is
done by fingerprint or just done with iris scan so that authentic payments are done. The payment
in coming future till 2022 will be increasing which is predicted to be more than 1 trillion
biometric payment that is done by Acuity Market Intelligence (Drucker, 2014).
Artificial intelligence
Other than these increasing trend of AI is also increasing with greater pace and is
changing order in which people are paying. This is also having inbuilt chatbots that enable
customer to frequently communicate in new way with company on directly bases and making
payment. With this artificial intelligence in retail sector it is also incorporating changes which is
related to voice activated payment which many app are having like that of Alexa of Amazon.
ORGANISATION’S INNOVATION REQUIREMENTS 2020 AND BEYOND
M&S is one of the leading chain of retail brand which is operation all around the world as
is major British multinational company. The company is existing since 1884 with its products
like that of clothing, luxury products, food, beverages and home appliances as well. At this stage
M&S is having about 979 stores all across UK which includes 615 that is only selling food
products (Azis, Bernik and Harsanto, 2017). As a world renowned retail company it is very
important that M&S is allowing the continuous innovation and technological invention within its
business and operational working. This continuous innovation in field of retail, home and food
products is very much important which will lead to become world leader in this market or sector.
So within this context it is very much important that M&S is innovation in all its units or
products and service under which they are working. For this purpose in year 2018 M&S
partnered with “True” which is the retail and consumer investment and innovation firm of
Europe. With this partnership M&S will be able to gain deeper access to market and consumer
expertise, specified international network and emerging technologies as well. According to their
Plan A of 2025 which is mainly aimed at improving environmental and social performance and
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sustainability with saving about £750 million cost. One of the most important part of this Plan A
is the innovation which will help them to reduce the effect of carbon footprint by 70% and then
making global operations with cutting about 13 million tonnes of CO2.
M&S is also having target of innovation within its Food research and Technical process
as there are increasing challenge of product safety and availability of food against its packaging
or health (Trifilova, 2017). This is one of the biggest mission of M&S to provide recyclable
products, balancing against the wastage and packaging usage as well. M&S is always regarded to
as pioneer in this food technology which means that they are incorporating scientific
development for creating products which are been able to meet and change daily lives of their
customers.
Under their Plan A there is special innovation fund that will be able to support their much
risky and challenging long term business activities. This will be mainly based on cutting up their
cost within the business unit expenditure and not dealing with traditional way of doing or
conducting business. One the best example of the innovation fund will be related to that of
testing vacuum packaging for fresh meat cuts which is leading to reduction of packaging to about
75% and delivery of fresh and good quality of products. This will allow company to boost up
their sales, cutting wastage and reducing customer complaints to just about 1/2. Then with help
of innovation and research they were able to find out relationship between their pulses of UK
yield and protein content (Talukder, 2016). So M&S will require sustainable development within
its innovation and development so that they are been able to achieve its Plan A till the year 2022
that will help them to have greater impact on their growth and increased profits.
BUILDING THE FUTURE INNOVATION CAPABILITIES FOR THE
ORGANISATION
Innovation road map is a kind of plan which helps and allows company to graphically
represent a long time planning and setting of goals and strategies. Thus the innovation roadmap
will be supporting strategic planning within the innovation management. If the company need to
build up road map for innovation that would be helping them to recreate their different types of
targets market. For this building the future capabilities for M&S it is required that they are
identifying their problems, issues and capabilities or potentials of company. With the help of this
they would be allowed to know that are they capable of being innovative or including
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transformation within their company in future terms (DeBarro, Gann and Pelton, 2015). This will
also be essential for insights of seniority that are critical success factors that would results into
enterprise and sustainable innovation culture. There are various steps which are followed within
creating this road map like that of:
Identifying problem
Figure 2: Decreasing share of M&S
[Source: M&S to lose its decades long status as the number one clothing retailer to Primark,
2018]
This is the most important step which will allow company to identify all related problem
that they need to solve which is only with help of research and investigation within market.
Prototyping of the product will only be based on creating and figuring out what is the problem
which is related with need and want of customers (Foss and Saebi, 2017). With the help of this
M&S will be able to find out problem that is faced by their customers and then will be able to
solve the issue on more easy way. The decreasing market share of company is one of the major
problem which they are facing as they face drop of 7.6% clothing market share drop.
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Figure 3: Retailing market of top 10 companies
[Source: M&S to lose its decades long status as the number one clothing retailer to Primark,
2018]
Analysing problem
M&S only after identifying the issues and problem that is faced by customer will be able
to analysing what is their main problem. Analysing the problem means that they are identifying
what is the problem which must be solved at the starting time only which is very much
important. With help of this analysing of problem M&S will be able to plan out how this issue is
resolved with innovation. The market share of M&S in 2008 was 9.7 but this declined to 7.6% in
2018 which is one the biggest problem they are facing.
Innovate multi-faceted solution
After M&S is able to identify which type of problem and issue is most important to be
solved at first will need to have multi-faceted solution which means that how many solution do
the problem is having. As there are many ideas and solution of one problem which is linked with
operational and functional part of company so it is necessary that business is able to identify the
best solution for it.
From all these steps which are part of innovation roadmap will be able to resolve the
issue that company is facing and is done with help of innovative idea and knowledge. The
roadmap is that which help company to identify problem they are facing and then resolving it on
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more developed approach (Dodgson, 2018). Apart from the given steps it is also required that
M&S is also incorporating innovation capability which is based on about 7 key elements.
Innovation capability means that how much firm is able to grow in respect with fulfilling
innovation and invention within company. M&S should be having specified amount of fund or
budget, expert human resources and latest form of technology and innovation that would help
them to incorporate the said innovation. All type of innovation in any field and sector will surely
differ from each other like the innovation which is required in smartphone will not be same as in
retail sector. The growing capability of business will be dealt with having organisational culture,
business strategy and intrapreneurship which are essential for sustainable innovation.
Organisational culture
M&S should be having culture of innovation and growth which is promoting and
enabling company or employees to incorporate changes and technical progress. It is very much
required for any organisation to have environment of growth and changes which will be
established as per their hierarchical chart (Stamp, 2017). The innovation processes also need to
be transparent and inclusive or secure so that company and employees are able to collectively
challenge the competition and market force as well. There must be culture into company that is
allowing all employees to deal with innovation and creative transformation into all employees
including senior executive as well. As if there is culture of company that they must be creative
and innovative at all time while working and doing their task then this would mean that company
is duly promoting innovation. There are very less companies which allow employee to work
according to their thinking and creativity as they would not like that employee are doing
whatever they want to do.
Intrapreneurship
This is the process of recognising intrapreneur who is regarded to as that entrepreneur
who is operating within larger firm in way of driving the value through internal innovation. If
there is no specified ownership, support is not there, protection is lacking and their expectancy is
also very much high then at this point of time problem will arise. It is very much important that
any type of innovation is not at all relying onto job role or post within organisation rather it must
be very much intrinsic organisational capability.
Business strategy
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There are many conventional approach which would help company to develop each level
of their business strategies so that they could be testing the whole new world of technology
through changes required (Souto, 2015). Number of new technologies, globalisation, disruption
into information and then rapidly changing customer’s preference over other products and
services will be impacting business and its income to much greater extend. As all organisation
know that change is the key to success which is only possible with help of new and latest
technologies within operations and functions of business. So for this there should not be any
specified or rigid strategy or plan for company as this needs to get change each and every time
any new modification or trends are coming within society and impacting taste and demand of
customers to larger extent as well of M&S. Long term business strategies could be taken as guide
or roadmap for M&S in longer run but rather they must be having potential to rapidly change and
adopt the changes as well. This is very important skill that M&S managers would be requiring
but all are not able to apply this on correct time (Brem, Tidd and Daim, 2018). Business
strategies are very much essential to be implemented as they were planned by company or top
level management otherwise it will be of no need. This will help company to grow in market
once again and increase their market share that is identified issue for company.
With the help of above stated terms it is very much easy that company will be able to
apply changes are these will help in future innovation capacity of business. If the organisations
are ready to include all sort of changes and modification then they must be planning in most
effective and crucial manner. Without planning and setting up strategies of company it is rather
impossible for firm that they are been able to include changes and recognising their capabilities
as well. M&S should be forming its strategies which are the most important form or way for its
development and identifying intrapreneur into firm so that they could help company in growing
(Gama, Frishammar and Wincent, 2018). As within this rapidly changing environment it is most
crucial that M&S is identifying its capacity and capability to work so that their overall integrity
could be maintained and enhanced as well. It is the duty and role of business managers that they
are contributing into modification and growth of M&S which will help them to protect their
retention ratio.
Building up road map will also be helpful for M&S in their future goal especially that
which is related to that Plan A of 2025. This would help them to achieve all targets and
objectives set with help and usefulness of technological changes. Innovation is the most effective
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and essential parts of any organisation especially those working into retail sector of UK. As the
retail sector is the most rapidly growing and innovation part of country this is also the one which
enable and help UK to grow. Retail sector will witness number of innovation, technological
changes and transformation in coming few years for which it is required that firms are getting
themselves prepared and becoming innovative (Du, Leten and Vanhaverbeke, 2014). M&S
should be allowing all the employees to be a part of their innovative drive, identifying skills and
potential of their employees and staff members that will allow and help into innovative purpose.
It is very much important that companies are understanding the need and importance of
innovation and transformation within their working and operations.
CONCLUSION
From the above report it could be concluded that for companies being innovative, doing
their regular work in some creative manner, fostering transformation and using digital
technology is very much essential. It becomes impossible for companies and employees to do the
monotonous work and with same technique all the time so it is required that they are
understanding need for innovation. This not only allows company to invade on new areas of
business but also help them in doing the existing work in more proper and innovative terms. It
could also concluded that M&S is continuing into Plan A for year 2025 into which they are
allowed to identify skills and capability for the future growth. It is very much essential that
company is growing and developing into market searching for new market and innovating the
products and services that could be helping M&S. It is very much required that they are
identifying skills and potential for employees and staff members which will help in penetrating
into new markets. There are more future capabilities of M&S that would suppress their
competitors in other countries.
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REFERENCES
Books and Journals
Archibald, R.D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management.
Auerbach Publications.
Azis, Y., Bernik, M. and Harsanto, B., 2017. A model of managing innovation of SMEs in
Indonesian creative industries. International Journal of Business and Society, 18(S2),
pp.391-408.
Biemans, W., 2018. Managing innovation within networks. Routledge.
Brem, A., Tidd, J. and Daim, T., 2018. Managing innovation: what do we know about innovation
success factors?.
DeBarro, T., Gann, D. and Pelton, J., 2015. Mantra to method: lessons from managing
innovation on Crossrail, UK. In Proceedings of the Institution of Civil Engineers-Civil
Engineering (Vol. 168, No. 4, pp. 171-178).
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Drucker, P., 2014. Innovation and entrepreneurship. Routledge.
Du, J., Leten, B. and Vanhaverbeke, W., 2014. Managing open innovation projects with science-
based and market-based partners. Research Policy, 43(5), pp.828-840.
Foss, N.J. and Saebi, T., 2017. Fifteen years of research on business model innovation: How far
have we come, and where should we go?. Journal of Management, 43(1), pp.200-227.
Gama, F., Frishammar, J. and Wincent, J., 2018. Untangling capabilities for managing the front
end of innovation.
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Souto, J.E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management, 51, pp.142-155.
Stamp, D., 2017. Managing Innovation: Product Development at Hasbro.
Talukder, M., 2016. Managing innovation adoption: from innovation to implementation.
Routledge.
Tidd, J. and Bessant, J., 2014. Strategic innovation management. John Wiley & Sons.
Trifilova, A., 2017. Complex innovative environment managing innovation managing change
open innovation open business model. In The Future of Innovation (pp. 186-187).
Routledge.
Online
M&S to lose its decades long status as the number one clothing retailer to Primark. 2018.
[Online]. Available through: <https://www.globaldata.com/ms-lose-decades-long-status-
number-one-clothing-retailer-primark/>.
New Smart Consumers Set the Pace for Retail Change. 2018. [Online]. Available through:
<https://newsroom.mastercard.com/press-releases/report-from-mastercard-the-i-cons-
have-it-new-smart-consumers-set-the-pace-for-retail-change/>.
The future of retail. 2018. [Online]. Available through:
<https://www.telegraph.co.uk/business/tips-for-the-future/future-of-retail/>.
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