Drone as a Service Innovation for Waitrose: Benefits and Challenges

This document discusses the use of drone as a service innovation for Waitrose, a British supermarket brand. It explores the benefits of cost-saving technology and improved business reputation, as well as the challenges of privacy concerns and changing legislation. The document also provides recommendations for successful implementation, including marketing, targeting the right audience, and understanding costs.

PROPOSAL
(Innovation and Enterprise)
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Contents
Contents...........................................................................................................................................2
INTRODUCTION...........................................................................................................................3
BACKGROUND OF ORGANISATION AND DESCRIPTION OF SITUATION.......................3
DISCUSSING RELEVANT LITERATURE ASSOCIATED WITH THE TOPIC.......................4
CRITICAL ANALYSIS OF THE DRONE AS A SERVICE.........................................................6
RECOMMENDATIONS WITH JUSTIFICATION.......................................................................7
CONCLUSION................................................................................................................................8
REFERENCES................................................................................................................................9
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INTRODUCTION
Innovation refers to the creation, development and implementation of an innovative service,
products o process, with the purpose of enhancing effectiveness, efficiency and competitive
advantages. In simple word, innovation is the process of translating an invention or idea into
service or product that develops a value of for which customers will pay. There are different
advantages of innovation for enterprise i.e. reduced costs, improved productivity, increased
competitiveness, improved brand value, increased turnover, improved profitability etc. All these
are major advantages of using innovation within a product, service or process. According to the
current assessment, drone is a chosen innovation in service (Gurzawska, 2021). A drone is a
smart technology that helps an organisation in producing of their services to the customers within
less time. Drone is a flying robot that can be controlled remotely and fly autonomously via
software controlled flight plans within their embedded system. Drone is working with onboard
GPS and sensor.
BACKGROUND OF ORGANISATION AND DESCRIPTION OF
SITUATION
Waitrose is a chosen organisation for this assessment. This is a British supermarket brand
that was founded in 1904 by Wallace Waite, Arthur Rose and David Taylor. Company is
specialising in producing of food products to the customers. Company is headquartered in
Bracknell, Berkshire, and Victoria, London, United Kingdom.
Covid 19 is a pandemic situation and in this company faced various issues i.e. decreased
sales, increased customer turnover, reduced brand image, decreased business performance etc.
These are major issues or challenges faced by Waitrose during the period of Covid 19. In this
situation, company not able to produce their food services to the customers directly because in
this period, no one is able to go outside and purchase service (Nicoleta, Matt and Steffen, 2021).
For overcoming the all challenges, company want to develop innovation within their service i.e.
drones. This is a best way for Waitrose in providence of their services to the customer directly
and within minimum time. There are various advantages of using drone as a service innovation.
These are; enhance security, quick delivery of products, checking the stock, observing customer
behaviour etc. Therefore, drone in service innovation is significant for Waitrose in overcoming
the negative effects of Covid 19.
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DISCUSSING RELEVANT LITERATURE ASSOCIATED WITH THE
TOPIC
Types of innovation theories
According to the Calabrese and et. al., (2021), innovation is important for an organisation
in developing of new products, services or process. There are different types of innovation
theories that are explained as below:
Design thinking: This is an effective approach for innovation that purpose to recognize
dis-satisfaction level of customers and develop innovative solutions for reducing customer’s
dissatisfaction. Thus, design thinking theory of innovation is a problem solving approach.
Therefore, it is essential for Waitrose to adopt this theory and reduce the problem of Covid 19.
Schumpeter’s innovation theory: This is another type of innovation theory that helps an
organisation in successfully implementation of innovation for product, service or process
(Tuomi, Tussyadiah and Ashton, 2021). According to the Schumpeter, innovation introduces to
any new way that an organisation uses to reduce the overall cost of production as well as
increase the demand of their service. Therefore, this is also important theory for Waitrose to use
and develop innovation within their process. Drone is a best innovation for Waitrose to use this
in their service and increase larger base of customers within minimum time period.
Criticism of Innovation Theory: This type of innovation theory helps an organisation in
increasing of its profitability. There are different aspects that will help company in increasing of
their profit by using criticism of Innovation Theory. These are ignoring the element of
uncertainty, use modern way of technology etc. Therefore, this theory of innovation helps
Waitrose in increasing of their profitability by increasing number of customers.
Thus, above mentioned all these are main types of innovation theories that are useful for
Waitrose in developing of innovation within their services.
Idea generation to develop an innovative idea for the organisation
As per the point of view Santoso and et. al., (2021), idea generation refers to the act of
forming an innovative idea. It is an innovative process that includes the generation,
implementation and communication of innovative thoughts as well as concepts, which become
the basis of their innovation strategy. In accordance to the current assignment, service innovation
is a chosen innovative idea for Waitrose. A service innovation refers to the service process or
service product that is based on systematic methods or some technology. There are different
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benefits of using service innovation for Waitrose such as market their business, solve problems
easily, increased profitability and performance, beat competitors easily, helps in achievement of
valid outcomes etc. Therefore, process innovation is significant for Waitrose in increasing of
their business performance, reducing of any challenges, attraction of larger customer base,
increasing of sales etc.
Relationship between types of innovation theories and idea generation for developing an
innovative idea
According to the opinion presented by Wang, Ling and Li (2021), there is a positive
relationship between innovation theories and idea generation for developing a new or innovative
idea. Use of innovation theories helped an organisation in implementing of innovation within an
enterprise. There are various types of innovation theories are used by Waitrose such as Design
thinking, Schumpeter’s innovation theory and Criticism of Innovation Theory. All these are
major theories of innovation and useful for Waitrose for developing innovation within their
service. For example: Design thinking theory is essential for company in reducing the
dissatisfaction towards business service. In order to overcome customer’s dissatisfaction, drone
is an effective and innovative ways of innovation in service. Through this innovation, Waitrose
can easily deliver their food service to customers without wasting time and cost. This will be
beneficial for them in attainment of competitive advantages in less period of time.
Use of Schumpeter’s innovation theory is another example of idea generation of
developing innovative idea in business service. This is an essential type of theory that influences
Waitrose in generating of new idea in service (Aas and Mention, 2021). Main purpose of this
theory is to reduce production cost and increase customer base towards service. This is essential
for company to develop drone in their service as an innovation. With the use of drone, company
can produce their services to customers directly, without any manpower and within less time
period. This result is increased customer satisfaction towards business service that turn to impact
on brand image of the Waitrose. Therefore, this type of innovation theory has positive
relationship with the innovative idea generation.
Criticism of innovation theory is significant for Waitrose in generating of new idea
within a business. Main purpose of this this theory is to increased sales and profitability of
company by developing innovation within service. This theory is beneficial for Waitrose to
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develop drone within their service as an effective innovation. This will help them in increasing of
their sales by maximising customer base (Dudau and et. al., 2021).
Therefore, use of innovation theories helped Waitrose in generating of an innovative idea
with purpose of increasing sales, attracting larger number of customers, improving business
performance and growth.
CRITICAL ANALYSIS OF THE DRONE AS A SERVICE
Drone is an innovative idea within service that is beneficial for Waitrose in maintaining a
safe environment, affordable cost-saving technology, easily controllable, increased customer
base, increased sales etc. These are major benefits of using drone as an innovation in business
services. There are different steps that are effective for Waitrose in successfully implement of
drone within a business. These are explained as below:
Start with proof of concept: It is a role of Waitrose to analysis a case study that matches
with their sector or contract a professional to do a job for them (Yunus, 2021). Once Waitrose
have a proof of concept then they can better known drones are helps them in increasing profit.
This will be essential for company to successfully implement drone within a business.
Recognise and rank opportunities: This is next step that are useful for Waitrose in
successfully implementation of drone as a service innovation within their business. For this
company can learn where will they obtain the higher rate of investment. This is important for
Waitrose to identify opportunities of implementing drone for producing service to the customers.
Understand all the cost: This is a last step of implementing drone in an organisation.
Drones can easily deliver information or service at a portion of the cost of numerous traditional
approaches, but it takes more than heading to business’s local electronic store as well as tossing a
drone into the sky (Desmarchelier, Djellal and Gallouj, 2021). Identifying all the costs lets
Waitrose to make a up-to-date decision on what part of drone program must be contracted out as
well as what parts must be done internally.
Therefore, all these are main steps that are useful for Waitrose in successfully implementing
of drone as a service innovation. Along with this, there are different advantages and
disadvantages of drone as an innovation in service provided by Waitrose. These advantages and
disadvantages are explained as below:
Advantages
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 Affordable cost saving technology: Drone is a cost saving technology because with the use
of this, Waitrose can easily increase customer base that result in increased sales and
profitability (ERDEM, 2021,). This is also beneficial for company in cutting of cost of
recruitment and selection of employee because drone doesn’t require any manpower.
 Improved business reputation: With the use of drone in service, Waitrose can improve
their brand reputation. Drone will help them in providing of services according to the
customer’s set time. This increased customer loyalty and trust towards brand that turn to
impact in enhancement of business reputation.
Disadvantages
 Privacy concern: This is one of the main drawbacks of using drone as a service innovation.
The drone will use GPS to identify the location of customers that increase safety concern. It
is unlikely that this data will be followed in nefarious ways nevertheless privacy protections
may essential to be implemented (Klarin, 2019).
 Legislation on drone flight is indeterminate and continues to change: This is major
disadvantage of drone that has direct impacts on Waitrose in implementation of this in
service.
Therefore, above mentioned critical evaluation of drone, it has been determined that benefits
are more as compare to drawbacks. Thus, it is beneficial for Waitrose in successfully
implementation of drone in business (Fatima, Awan and Kamran, 2021).
RECOMMENDATIONS WITH JUSTIFICATION
From the above mentioned information, it has been recommended different ways for
Waitrose in implementation of drone in service successfully. These are explained as below:
 Marketing: It is important for Waitrose to conduct a marketing survey for identifying the
requirements of customers towards service. There are different ways that will help them
in identifying of needs of customer’s such as distribution of questionnaire, interview,
observation etc. By identifying this, Waitrose can easily market drone as a service
innovation.
 Target audience: This is essential for Waitrose to identify their target audience who are
interested in getting of food services through drone. This will help Waitrose in increasing
of customer base that output improved profitability and sales.
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 Costs: This is another recommendation to the Waitrose to identify how much cost are
require for implementing drone within service. This will help them in cutting of their cost
about unnecessary activities such as recruitment of employees etc.
Successfully launching of drone: This is a last recommendation for Waitrose to follow all steps
of implementing drone for service in successful manner. These steps are start with proof of
concept, recognise and rank opportunities and understand all the cost. By following all steps,
Waitrose can successfully implement drove within their food service as an innovation.
CONCLUSION
From the above mentioned information, it has been concluded that use of drone in service as
an innovative idea is beneficial for an organisation. There are various types of innovation
theories are used for influencing an organisation in implementing of innovation within service.
These theories are design thinking, Schumpeter’s innovation theory and criticism of innovation
theory. All these theories have been used by company for successfully implementation of drone.
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REFERENCES
Books and Journals
Aas, T. H. and Mention, A. L., 2021. Managing Open Service Innovation: An Introduction.
In Managing Open Service Innovation (pp. 1-15).
Calabrese, A. and et. al., 2021. How sustainable-orientated service innovation strategies are
contributing to the sustainable development goals. Technological Forecasting and
Social Change. 169. p.120816.
Desmarchelier, B., Djellal, F. and Gallouj, F., 2021, January. Which innovation regime for
public service innovation networks for social innovation (PSINSIs)? lessons from a
European cases database. In 30th RESER/COVAL International Congress. Value Co-
creation and Innovation in the New Service Economy.
Dudau, A. and et. al., 2021. Public Service Innovation: Challenges and Possibilities for
Innovation Adoption. In Public Value Management, Governance and Reform in
Britain (pp. 149-171). Palgrave Macmillan, Cham.
ERDEM, A.T., 2021. ETHICAL LEADERSHIP, SERVICE INNOVATION AND
PSYCHOLOGICAL CAPITAL INTERACTION: A RESEARCH IN NEVŞEHİR
HOTEL SECTOR. Uluslararası Anadolu Sosyal Bilimler Dergisi, pp.515-532.
Fatima, T., Awan, T. M. and Kamran, M., 2021. Impact of Interactive and supportive service
innovation in customer retention: an interplay of value creation and
participation. Foundation University Journal of Business & Economics, 6(1).
Gurzawska, A., 2021. Responsible Innovation in Business: Perceptions, Evaluation Practices and
Lessons Learnt. Sustainability 2021, 13, 1826.
Klarin, A., Full reference: Klarin A 2019 Mapping product and service innovation: A
bibliometric analysis and a typology. Technological Forecasting and Social Change 149
(December). Elsevier: 119776. DOI: 10.1016/j. techfore. 2019.119776.
Nicoleta, P., Matt, W. and Steffen, K., 2021. Importance of Innovation Process for the
Organizations. IAR Journal of Business Management, 2(1).
Santoso, R. S. and et. al., 2021. Determinant of Public Service Innovation Capacity Development
in Local Government.
Tuomi, A., Tussyadiah, I. and Ashton, M., 2021. Covid-19 and Instagram: Digital Service
Innovation in Top Restaurants. In Information and Communication Technologies in
Tourism 2021 (pp. 464-475). Springer, Cham.
Wang, Z., Ling, K.C. and Li, H., 2021. The Impact of Knowledge Sharing on the Relationship
Between Market Orientation and Service Innovation. International Journal of
Knowledge Management (IJKM). 17(2). pp.130-154.
Yunus, M., 2021. The Impact of Public-Private Partnerships on Development of Tourism
Infrastructure Destination and Tourism Service Innovation as Mediating Variable in
Sinjai Regency, Indonesia. Turkish Journal of Computer and Mathematics Education
(TURCOMAT). 12(11), pp.1470-1479.
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