Creativity and Innovation: Artificial Intelligence in Retailing

This essay critically examines the application of Artificial Intelligence (AI) as a form of innovation and creativity within the retailing industry, using Woolworths as a primary example. It begins by defining innovation and its importance in meeting market needs and enhancing customer exper...Read More

12/13/2019
RUNNING HEAD: CREATIVITY AND INNOVATION 0
Innovation and Creativity
Student’s Details-

CREATIVITY AND INNOVATION 1
Artificial Intelligence: Innovation in Retailing Industry
Innovation refers to adopting a new process or making a creative change into the existing
process that can satisfy the market needs and provide value to the customers. Innovation is
needed to be in the creative way that is determined by the new ways of doing things. The
innovation practice at the workplace can be helpful in the facilitation of the value and
enhance the customer experiences (Tidd & Bessant, 2018). Here, the essay will discuss the
example of innovation and creativity in retailing industry. The example is taken out in the
form of artificial intelligence which is the innovation made in Woolworths for increasing the
customer experience and is the creative way to serve their customers. The essay will discuss
the innovative practice in detail and also the impact of the innovation and creativity on the
retailing industry and the future development that could be led by the innovation made.
Artificial Intelligence (AI) is regarded as the human intelligence to be possessed by computer
systems and development in the machines for problem solving (Russell & Norvig, 2016). It is
one of the most creative and innovative practice that simplifies various operations in the
retailing industry and provides the personalized experience to the customers. AI is used by
Woolworths as innovative solutions for the customers. More specifically, the company has
incorporated the voice-enabled shopping experience for the customers. The company has
built the virtual assistant on WooliesX which is the digital platform for the selling the
products. This is the innovative practice to be used by the company and at the same time it is
creative approach to be adopted by the company. It is creative in the sense that it is unique
from the competitors and has can provide unique to their customers. This has significant
impact on the company as it has facilitated in the enhancing the shopping experience and
more personalized experience (Crozier, 2019). The new division called WooliesX has been a
combination of the digital customer experience, ecommerce and the technology. This has
affected the retailing industry to a larger extent in which the industry has enabled the
excellent customer service through the AI-powered intelligent search made in every query
searched made by the customers provided the best solution to the customers (Berry, 2019).
This has made operations of the company more efficient and also made their satisfied and
thereby making the company profitable.
There is huge impact of innovation on the concerned industry that brings huge success to the
company. It facilitates the business to bring innovative products and services that can make
the customers satisfied and also improve the efficiency through the use of the new and

CREATIVITY AND INNOVATION 2
creative ideas that can bring the profitability to the business. Similarly, use of Artificial
intelligence has significant impact on the retailing industry. This impact can be well
understood by the application of Rogers Diffusion Innovation Theory. This model is given by
E.M. Rogers who categorized the consumers into five different categories who will adopt the
innovation (Desmarchelier & Fang, 2016). Firstly, there are innovators who will accept and
carry out the innovation and thus the company targets them when introducing the innovation.
Early adopters under the model are comfortable with the innovation and make strategies for
the change. This can be seen from the case of Woolworths, wherein the managers worked
effectively for bringing the change.
Further, there are early majority who are the people that rarely accept the innovation and
needs stories make them believe the benefits of the changes made. Fourth category in the
innovation model is the late majority in which people who will accept the innovation only
when the majority people have accepted the innovation. Lastly, laggards do not show interest
in the new innovation and prefer to use the traditional way of doing things (Miller, 2015).
Thus, it can be understood that the innovation has impact on the different kinds of people.
Moreover, introduction of AI in the supermarket industry has various kinds of adopts on
which it places a major impact as different people have different perceptions about the new
technology to be introduced.
The industry is largely affected by the innovation introduced as it provides an opportunity to
accelerate the business process and also increase the efficiency. The company making the
innovation can get affected in the sense that it can give better product and service to the
customers and also it can make the operations effectively. Besides, innovation introduced
within the company requires training and the effective execution of the innovation process
that can be a challenge for the company. Apart from this, the company can get competitive
advantage over the competitors through the innovation and can get the attention of customers
onto the product or service of the company. The business can be improved through the
innovation and can create the ability to make the profits into the long run (Hagberg, et al.,
2016). Thereby, the business can make new partnerships and relationships with the
introduction of innovation.
By the introduction of the Artificial Intelligence, Woolworths have been affected in certain
ways. As Woolworths is into the retailing industry, it has been able to provide personalized
experiences for their customers and also been able to increase the efficiency (Crozier, 2019).

CREATIVITY AND INNOVATION 3
The industry is affected by this innovation in the sense that it has received several kinds of
resistances which turned into the mistakes by the employees that often lead to poorer
performances. Moreover, the industry is highly influenced by the AI tools or methods that the
company uses into the company by the means of the virtual assistant that can specifically
satisfy the needs of the customers. Also, the company is highly influenced by the partnership
that is has made with the AI-start up for availing the dietary sorts and filters that has
enhanced the online shopping experience and also satisfied their needs through the
personalized filters for the shopping of the food items (Blake, 2019). This subsequently
changed the way customers interact and make online purchase and thus the retailing industry
is positively affected by the innovation and have enabled the business to grow.
The company has responded to the innovation through the partnerships that it has made with
the UK based start-up Artificial Intelligence company for the facilitation of the dietary filters
onto the website of the company (Blake, 2019). Moreover, responding to the innovation
requires innovative mindset and the ability to create new ideas and the curiosity to go beyond
the ordinary situation. Moreover, Woolworths have responded to the innovations not only
from the partnerships but also from the prototyping techniques that has built new ways of
working and also availed in the ongoing practice of getting the real time feedback from the
customers. The company makes the use of AI into the system operations that can make the
customer experiences better and increase the profitability of the company (Cao, 2019). This
the way the company responds to the innovation of AI and incorporate the same to the
existing operations.
Due to the application of innovative practice, the organizations can effectively carry out the
operations by crossing the boundaries of the traditional systems. Innovation has enabled the
company to make the products or avail the service differently that involves relatively less cost
than the previous methods or systems (Kahn, et al., 2018). More specifically, the
organizations can deal with their customers differently and can make them more profits
through the improved ways. The organizations can differently make their business process to
transform the business and also make the business different or unique in terms of other
competitors into the market. The organizations can differently make their strategies of
innovation and also manage the create ideas that can lead to the transformation of a big idea
(Shankar, 2019).

CREATIVITY AND INNOVATION 4
However, in the retailing supermarket industry of Woolworths, the innovation of Artificial
Intelligence has made the service delivery more efficient. Previously, the company had a
traditional store on which the company sold the food product particularly grocery products.
With the introduction of WooliesX as the online store for the customers to buy the food
products, the company has been doing the sales differently (Thomassey & Zeng, 2018). Also,
the company has availed the use of Artificial Intelligence that has made the things differently
for the customers. Now, the company is not only providing the products on the online
platform but also availing the customers a more personalized experience through the AI
based virtual assistant that can handle the queries and can solve the problems of the
customers (Pantano, et al., 2018). This kind of innovation is not only making the business
profitable but also making the business unique when it comes to providing value to the
customers. Thus, the retailing industry is differently handling the customers and differently
making the sales which in turn increasing the profits.
The future development of the innovation in terms of artificial intelligence to be undertaken
can lead to the increase in the market size. Also, Natural Language Processing can be the
major innovation promoting the human-computer interaction and can ultimately lead to more
flexible industry through the application of AI in supply chain, operations and consumption
of the products. Apart from this, innovation can lead to future development through the
connection between the online and offline retail business and is precisely reshaping the
shopping experience of the customers (Inside BIg Data, 2019). Besides, this development of
Artificial Intelligence can lead to the situation where both the technology and customer value
can altogether make a better organization. Use of AI can lead to intelligent automation that
can lead to a change in the service delivered and also making the organization effective in
terms of the modern consumer preferences. This can lead to the emergence of new business
model that leverages the big data and AI which ultimately provides an opportunity for the
industry to make transformations in the service delivery and increase the profits through the
use of online portals that can make the alterations into the service availed to the customers
(Cao, 2019).
In order to make the organization effective in terms of innovation, Woolworths can make
their supply chains and the manufacturing tasks automated along with the use of online portal
with the human interacted chatbots that it already uses. These innovations in the operational
department can not only lead to the operational efficiency, but it can also save the time and
cost of the retailers being spent in the production process. Besides, the company is expected

CREATIVITY AND INNOVATION 5
to make the changes into the service delivery through the facilitating the AI enabled services
onto the portals for the assistance of the customers (Thomassey & Zeng, 2018). The company
is recommended to make the changes in the search options of the website for enhancing the
personalized experience. Also, the company can incorporate payment methods for the
increased ease of the customers.
Further, through the use of Artificial Intelligence, things can change drastically and can make
the customers satisfied as well. The use of AI and machine learning can make the things
better and indulging into the technologies can enhance the customer relationships through the
advanced software and machine learning platforms that can build the strong connections with
the customers and can also help in the creation of efficiency in the work performed (Thomas ,
2019). Moreover, the innovation has not only impact on the business performance but also on
the society in the sense that people can make their life better through the use of AI. Thus, the
future can change drastically when AI is used into the retailing industry making the business
easier and also profitable.
In the end, it can be said that innovation and creativity is crucial for the organization for the
development of new ways of doing things through the use of creative idea that can provide
value to the customers. This innovation can lead to the better future and the development of
the organization and thereby making it profitable by the use of creative ways. Here, the essay
has highlighted the use of innovation through the example of retailing industry of
Woolworths in Artificial Intelligence. The essay has analysed the impact of innovation and
the future development of such change into the company and the way it can create value to
the customers. Also, the improvements that are needed to be made by the company for the
future development.

CREATIVITY AND INNOVATION 6
References
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