Managing Innovation in Business Tesco (Distinction Criteria) BM627

BM627
Managing Innovation
in Business

EXECUTIVE SUMMARY
Innovation in the retail industry can be defined as the formation of new ideas regarding
the development or improvements in the quality products, services or business processes for
increasing customers’ experience to ensure growth of the business in respective industry. It
ensures the transformation of existing methods of production or business processes to bring new
ways of production or processes in the organization that will ensure long-term profitability for
business by the effective management of employees as well as customer relationship. Now a day,
with the emerging trends regarding innovation in the retail industry, the organizations are
adopting technology-based innovations in the organization like POS systems, self-checkout
systems for the customers, innovation in products according to the diversified market of the
company etc. There has been a significant change in the consumer behaviour after the lockdown
restrictions and social distancing norms due to covid19, that has made them to prefer more online
shopping due to which the retail businesses are taking steps for introducing innovation by way of
implementation of Omni channel strategy of innovation that will support the integration of online
a well as offline mediums of the company and facilitate more revenues by online shopping by the
customers.
This report is going to deal about the innovation practices in the retail industry. It will
deal with the innovation practices of TESCO that it has implemented already and that it should
implement according to the evolving trends in the retail industry. TESCO plc. is a retail business
organization having operations in more than 11 countries with more than 800 stores across UK
and many other across the globe. It is a public limited company and a multinational organization
that offers the products like apparels, food, home care and grocery products. It has introduced
innovation by way of expanding its product line and business divisions such as TESCO mobile,
TESCO bank, TESCO telecom etc. The organization has adopted many other technology-based
innovations such as self-checkout points, TESCO club cards etc. to add value to the experience
to customers and to become of the largest retailer in the world.
The following report will cover the future of retail industry, 2022 in context with
innovation. It will also explain the innovation requirements of the organization i.e. TESCO in the
year 2022 as per the trends and customer demands. Further, the future innovation capabilities for
retail industries and businesses therein will also be provided in this report.

TABLE OF CONTENTS
EXECUTIVE SUMMARY.............................................................................................................2
TABLE OF CONTENTS.................................................................................................................3
INTRODUCTION ..........................................................................................................................4
TASK ..............................................................................................................................................4
Future of the Retail industry 2022 in context with innovation....................................................4
Innovation Requirements of TESCO, 2022.................................................................................5
Future Innovation capabilities for TESCO..................................................................................8
CONCLUSION .............................................................................................................................12
REFERENCES..............................................................................................................................13

INTRODUCTION
Innovation in business refers to the introduction of new processes, services or products to
impact the positive change in business and thereby getting competitive advantage in the market
in terms of increased market share and developed customer base as compared to the competitors
(Khokhawala and Iyer, 2022). The innovation can include improving or upgrading the existing
methods or practices of offering products or services or reinvention of any product or service in
the organization to bring a transformational change through innovation. In the retail industry,
innovation plays a significant role and the customers are willing to buy the new innovated
products offered by the company that help the company in growing the business rapidly by
offering wide range of products. The innovation in terms of artificial intelligence, augmented
reality, POS systems are adopted by the organizations to increase the customer base in the retail
industry (Pal and et. al.,2022). The following report will provide the innovation roadmap that
will outline the preparation of innovation process in context with TESCO. It is a UK based
multinational public limited company headquartered in London. It is the 9th largest retailer in the
world and engage in the products like grocery, clothing, food and home care products. The report
will cover the future of retail industry in 2022 in context with innovation in TESCO. It will also
cover the innovation requirements in TESCO. Further, the report will also provide the future
innovation capabilities for the organization.
TASK
Future of the Retail industry 2022 in context with innovation
The retail industry in UK comprises of more than 300000 individual businesses. It creates
employment opportunities in UK and represents more than 3 million people as 8 % of overall
UK jobs (The UK retail industry, 2022). The retail sector contributes a significant portion to the
economy of UK. But since 2021, the lock-down restrictions and social distancing norms due to
covid19 pandemic has changed the consumer behaviour and has made the businesses to adopt
online shopping. Now, the retail companies are integrating their online and offline presence to
leverage an established approach i.e. Omni-channel approach to avoid the issues of low sales due
to covid19 as the consumers are also desiring to purchase the products online (Drechsler, 2022).
The retail businesses in UK are adopting omni-channel strategy to create a coordinated ,