Innovation and Change in Tesco: Utilizing AI for Employee Performance Management

This report discusses how Tesco has utilized artificial intelligence (AI) to solve employee performance management issues. It explores three existing solutions in the international marketplace and compares them with Coynes 3 conditions and competency tree. The report also evaluates the relationship between innovation and business success, and provides insights into the future of AI and its impact on human relationships.

SUCCESSFUL
INNOVATION AND
CHANGE (SIC)

TABLE OF CONENT
INTRODUCTION...........................................................................................................................3
Question- 1 Employee performance management issues that has already been solved utilizing
artificial intelligence or robotics and three existing solutions that are accessible in
international marketplace.......................................................................................................3
2 Three solutions and comparison with the Coynes 3 conditions and competency tree........6
3 Evaluation of the way innovation is related to business success and developed new ideas for
future based AI, prediction of new change in 2030 and the way human relationship might our
daily existence change............................................................................................................8
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
There are several changes and innovation in external environment that have adverse
impact of firm growth and strategies. Companies in order to sustain and grow in competitive
market for longer period of time have to adapt to external changes. It needs to bring innovation
in technologies or products so that wants of customers can be fulfilled in best possible manner.
The report is about Tesco which is one of the leading enterprises in UK that have covered
approximately 28% of market share. It has discussed about one of the businesses challenged that
have been solved by company using AI. The report has also evaluates three possible solution by
use of coynes3- condition for detailed competency and capabilities of each solution. At last
explained about the way innovation is intrinsically linked with success of business.
Question- 1 Employee performance management issues that has already been solved utilizing
artificial intelligence or robotics and three existing solutions that are accessible in international
marketplace
In recent time, organizations like TESCO are facing major issue related to managing staff
performance that directly impacting in business operational efficiencies and productivity level.
This problem within organization has been solved by using artificial intelligence, which is one of
the best and most effective solutions in the whole world. In context of chosen problem, there are
few solutions are existing in global market that can be considered by company.
Management information system-
It is one of the most beneficial and efficient computer systems consisting of software and
hardware that serves as strong pillar of a company’s operations (Paraforos and et.al., 2016). It
collects essential data from multiple online programmes related to staff performance and then
analyse gathered information and reports data to help in management decision making in regard
to improving staff performance. By using collect data about employees activities and work
management can judge who needs further improvement which makes them able to perform
rather than before and capable to achieve common business aims & objectives.
Training and development via digital technology-
This solution is much better than others solutions available in global marketplace, it has
been used by many companies in order to improve performance of their staff and make strong
teams at workplace who are able to achieve business objectives and aims. Management with this
technique by providing knowledge about lack skills and information about how to work can

enhance performance level. In recent time, many firms adopt and implement this solution within
business functions and obtained desired outcomes. It can be said that digital technologies are
important for training.
Human resource information system-
With above systems, it can be used for employee performance management. It is an
online solution or software that is utilized for performance tracking, data tracking, data
information and data entry needs of TESCO HR management and book keeping operations.
Artificial information system aid this solution by recoding management activities and procedure
systematically (Naqshbandi, Tabche and Choudhary, 2019)
Tidd & Bessant 4P’s concept of innovation space-
Product-
Tesco sells varied category of products and services to consumers such as food items,
apparel and others. To reach at global level and generate brand awareness all over the world,
company can make some innovation within their existing services and products as well, which in
return increase profitability and productivity more than its competitors. For example, new diet
smoothie for health conscious people is one of the best innovation organization can make, which
gain the attention of new buyers towards purchasing firm items and then promote it after getting
proper satisfaction.
Process-
This element drive towards ways products are developed and offered to target market. In
this, human resource information systems can be polluted in systematic manner because it is set
of varied activities or functions that can be carried out based on requirements such as training,
staff performance management and improvement. At present most of products or services are
provided by TESCO through their physical outlets. However, company has made efforts through
online retailing and their effectiveness can be maximized by enhancing their procedures of
production. For example, by developing mobile application for consumers, organization can
serve them best, which in return improve quality of services and increased consumer satisfaction
level.
Position-
This component refers to modification in regards to existing items or services
manufactured. Management information system can be plotted in this element because all

decisions are taken after gathering information and then changes can be done in goods of
TESCO, which is quite beneficial for its business in term of increasing consumer’s base, profit
margin and productivity (Frishammar, Richtnér and Björk,2019)
Paradigm-
Paradigm innovation, is change in underlying mental concepts which frame what
company does or alternatively how business frames what it does etc. This element stands for
modifications to where, how and why things are utilized or how management get products done.
Tesco can put into this as their main aim is to Aid Company from planning to manage as well as
controlling that is from beginning to end, which totally modifies way firm act or performs. It can
give wide platform to TESCO for communicating with their consumers, workers and other
stakeholders such as managers and leaders so that management can make better judgments.
All the above systems have been plotted at chosen location in order to enhance
performance of staff, making business more productive and obtaining several benefits in context
of company.
2 Three solutions and comparison with the Coynes 3 conditions and competency tree
The three solutions can be analysed in detail based on their competencies and capabilities
based on their work models can be understood as follows through which tesco can able to reach
onto higher profits, advanced functional standards and stronger synergy of actions with
competitiveness.

The core factors such as resources, capability, core competency and capability should be
governed for gaining functional innovation and sustained competitive advantage parameters for
larger efficacy parameters. The capability aspects plays essential roles to gain new level creative
innovation and new scope synergy for gaining larger scope segments, with which tesco will be
able to enhance new profitability revenue scenarios.
Management information system: Competencies and capabilities within MIS can be
understood with the fact that it is one of the most rapidly used information system where all
employees are working and connecting at one platform within business avenues for reaching
wider steps of efficiency within company business framework. The MIS has been actively
largely used at Tesco for being one of the most advanced technology production functional
brand within retail industry and also for working onto new goals and wider technical
parameters. MIS enables company management to keep regular dynamic business framework
within departments and also for productively transforming actions with wide efficiency and
functional advancement (Popescu, 2020)
Human resource management system: Competencies and capabilities within Human resource
management system are highly wide where Tesco shall be able to connect all employees within
one platform and also for monitoring their evaluation business framework where supervision is
also widely established. This has been one of the most competent effective business framework
and innovative information system used by latest HR standards within companies for gaining

efficiency for larger standards and technical efficiency work goals. This has also actively brought
strong supervision among company employees where all innovative goals are analysed onto
various diameters, leverage new reflective synergy and actions through which company is able
to work with new functional targets.
Training and development with digital technology: The competencies and capabilities of digital
technology for training, development has been widely known as one of the most important
parameter where companies are moving forward to reach onto higher goals. Tesco uses digital
technology framework for reaching onto wider vision for training employees with new skills,
dynamic work goals and competencies where all new work goals are worked onto vision. This
has not only actively enabled tesco for higher work efficiency parameters, new functional
standards and work pathways where there are new relative goals and vision developed. This has
been widely used by tesco also for bringing on innovation, creative learning synergy and work
motivation among employees within management where main goal is also to actively reach
higher order of work potentialities for reaching higher synergy of actions (Schilling and Shankar,
2019) There are various new platforms used by leaders to communicate and lead employees
within various teams for bringing on vision into actions, through which employees learn new
work parameters and skills, potentialities through which competitive development actions can be
learnt on.
Competency tree model steps:
 Value is created by Management information system for end users with strong efficiency
and working progression with use of innovative technology, higher use of working
progression which enables to keep relative progression among various paradigms. MIS
keeps all information within working departments at a centralised working space where
Tesco will aim to potentially enhance working paradigms when all employees, leaders are
connected within one goal through which higher profits can be attained onto higher keen
synergy. This has been actively enabled to create strong value commercially within industry
for gaining wider working aspects, and wider profits to work onto new synergy and also
function with stronger management work goals (Sun, Liu and Ding, 2020)
 Value is created with Human resource management system for end users as one of the most
important functional parameter and objectively connecting onto functional efficiency goals
where there are various determinants achieved. Tesco will able to work onto effective

business framework when HR executives are maintaining records, connecting and
developing stringent innovation functional paradigms by bringing employees at one
platform. Human resource management information system has been one of the most
important business model and informative technology usage tool to work for connecting
employees at one platform, while they seek for news synergy of working actions (Öberg,
and Alexander, 2019)
 Training and development via technology has created value for end users as one of the most
effective, powerful and vastly evolving new technology parameter where it has enabled
employees to work with new skills, potentialities to learn with dynamic development and
also yield onto wider working innovation. Tesco company will able create valuable
employee assets where employees strength, commitment and informative working actions
are highly important for gaining new synergy of growth within larger paradigms and also
for leveraging innovation working goals among department goals.
3 Evaluation of the way innovation is related to business success and developed new ideas for
future based AI, prediction of new change in 2030 and the way human relationship might our
daily existence change
Innovation is directly linked with success and future growth of business as company by
brining or adapting new method to delivered qualitative services to customers is able to gain
maximum market share. Tesco by continuously innovative its method to manufacture and
delivery of products is able to retained and expand its market share in retail industry (Evans and
et.al., 2017). The way innovation is related to business success can be illustrated as follows:
Improvement in productivity: It can be stated that innovation in technology have reduced
amount of wastage of raw material, efforts and cost thus it helps in brining economy of scale
within enterprise. Tesco by adapting to digital technologies have reduce overall marketing cost
as it is able to generate awareness among large number of individual within limited time frame
and cost.
Helps in enhancing brand value: It can be stated that innovative technology helps Tesco in
improving or increasing its brand image in society. People are able to get best products at
affordable rates thus it contributed in enhancing overall sales volume and market share.

Beat competition: Tesco by accepting innovative method and products is able to beat
competition in retail segments as it has provide unique, qualitative design products and services
to end customers (Busco and et.al., 2018).
Enhance morale and motivation level of employees: Innovation within firm has contributed in
effective coordination and cooperation of various individual to work together as team for
accomplishment of task. Employees are highly motivated and inspired to perform their best so
that company can grow and survive in market for longer period of time.
It is expected that in near future that after 5-10 year that is 2030 most of the companies will
make use of artificial intelligence to perform their respective task and earned large amount of
profit margin.
Clustering model: It is used by Tesco to sorts collect data, information into particular segments
or similar attribute thus manager have used cluster model to predict future of AI in retail sector
of UK. It have segmented views, information and perspective of individuals regarding use of AI
to know that company by using AI could able to grow and expand its business or not.
Classification: Manager has classified data into several groups based on what it learn form
historical such as before business are using traditional method of marketing to promote products.
Or highly dependent on labour to complete several operations and task of business but with
increase in work, innovation in technology and changing demand of customers. That means,
now a days, people are more interested in company that make use of innovative technologies to
deliver services to them. So, it has predict Tesco needs to invest in AI in order to adapt with
external changes and gain competitive advantages.
Tesco needs to invest in high AI to cope up with current changes and meet requirements
of customers beyond their expectancy. AI can help Tesco to easily manage performance of
employees that are working across different countries in world thus render best services to end
user and expand its brand image. It can also be stated that AI also provide support and assistance
to employees and customers of Tesco in effective decision making thus company need not have
to recruit additional employees for resolving grievance or problem of people. By use of Artificial
intelligence by Tesco lot of burden on employees or HR manager can reduces thus they can
devote their important time in resolving complex problem, taking accurate decision for growth
and development of employees (Aas and Breunig, 2017). At the same time it can be illustrated

that investment in AI by Tesco could contributed in saving cost of company like administrative
and avoid repeated task. By use of innovative technology customers of Tesco can be delivered
services at odd hours times thus they are motivated and inspired to be part of particular
organisation as compared to other. AI analysis prediction helps in identifying accepted changes
in future thus Tesco manager can easily decided appropriate strategies to motivates and manage
diverse individual to accept changes so that company can earn large amount of profitability and
market share in near future.
It have been evaluated that companies by using AI in near future will contributed to
increase in level of unemployment within economic thus leaving large number of people job less.
Because most of the function of HR, production or customers care are automatically performed
by robots thus required less number of individual to complete specific task of firm. Therefore in
retail industry all detailed related to customers orders and delivery of products can be collected
through AI with expansion of E- commerce sectors (Aagaard, 2018). For examples: Tesco by
adapting AI need not have to recruit employees for customers care or make separate department
as robot will performed all function of company automatically. So it can lead to reduction in
overall cost of company, delivery of services or products to customer within limited time frame
and also contribute in increasing overall productivity. There are large information which cannot
be collected and stored by human so AI is such type of technology that helps in retention of huge
data or information of company. Tesco will also required highly skilled, professional or
individual that have talent and capabilities to manage AI or innovative technologies so that
customers are delivered best services
(Tahirsylaj, Matson and Gashi, 2019). Social media will be more used to connect with customers
such as facebook, instragram and twitter or promote products and services of firm in future. Thus
in this way human relationship will be affected adversely and most of the work will be done by
robust that only require maintenance after specific period of time.
CONCLUSION
It can be concluded from about report that Innovation is key part of organisational
success as it is able to cater needs of various individuals. Tesco is such a firm in retail sector that
have adapted to recent changes in order to delivered maximum value services to end user and
maintained its brand positioning. At last it can be illustrated from above analysis that in would be

future trend to use Artificial intelligence that is robots and machinery than human for
performance of various tasks in organisation.

REFERENCES
Book and Journals
Aagaard, A. ed., 2018. Sustainable Business Models: Innovation, Implementation and Success.
Springer.
Aas, T. H. and Breunig, K .J., 2017. Conceptualizing innovation capabilities: A contingency
perspective.
Evans, S and et.al., 2017. Business model innovation for sustainability: Towards a unified
perspective for creation of sustainable business models. Business Strategy and
the Environment, 26(5). pp.597-608.
Frishammar, J., Richtnér, A., and Björk, J., 2019. Opportunities and challenges in the new
innovation landscape: Implications for innovation auditing and innovation
management. European Management Journal, 37(2), pp.151-164.
Naqshbandi, M.M., Tabche, I. and Choudhary, N., 2019. Managing open
innovation. Management Decision.
Öberg, C. and Alexander, A.T., 2019. The openness of open innovation in ecosystems–
Integrating innovation and management literature on knowledge
linkages. Journal of Innovation & Knowledge, 4(4), pp.211-218.
Paraforos, D.S and et.al., 2016. A farm management information system using future internet
technologies. IFAC-PapersOnLine. 49(16). pp.324-329.
Popescu, C.R.G., 2020. Developing a Model for Entrepreneurship Competencies: Innovation,
Knowledge Management, and Intellectual Capital–Success Competences for
Building Inclusive Entrepreneurship and Organizational Performance.
In Developing Entrepreneurial Competencies for Start-Ups and Small
Business (pp. 1-22). IGI Global.
Schilling, M.A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
Sun, Y., Liu, J. and Ding, Y., 2020. Analysis of the relationship between open innovation,
knowledge management capability and dual innovation. Technology Analysis &
Strategic Management, 32(1), pp.15-28.
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