UGB269 Innovation Management: Proposal Report, Analysis, and Findings

This report, focusing on UGB269 Innovation Management, explores the critical aspects of managing and measuring innovation performance within a business organization. It begins with an introduction outlining the significance of innovation in achieving competitive advantages and adapting to market changes. The main body delves into the importance of managing and measuring innovation, followed by an analytical approach that highlights the strategic considerations, including strategy, leadership, and implementation. The report examines various models of innovation, such as disruptive and incremental innovation, and discusses the innovation matrix, including business, technology, and marketing innovation. The report includes a critical evaluation of the measurement of innovation and its implications on firm growth and success. The report concludes with recommendations based on the findings.

UGB269 Innovation
Management

Table of Contents
Proposal...........................................................................................................................................3
INTRODUCTION...........................................................................................................................3
MAIN BODY..................................................................................................................................4
Significance of Managing and Measuring Innovation Performance Within Business
Organisation.................................................................................................................................4
Analytical Approach....................................................................................................................5
Models of Innovation...................................................................................................................7
Metrics and Models for Measuring Innovation Performance of a Business...............................8
Findings and Critical Evaluation.................................................................................................9
Conclusions and Recommendations..........................................................................................10
REFERENCES..............................................................................................................................12

Proposal
Innovation refers to process where company finds new method or innovative idea to
manufacture and deliver products and services to end customers. Company need to effectively
measure and manage innovation within organisation in order to grow and sustain its operation in
competitive market. This report has selected management and measurement of innovation in the
organisation so that overall objectives can be attained. Innovation helps company to gain
competitive advantages and build strong brand image in industry by fulfilling needs of customers
in best possible manner. Company that rapidly adapt to external changes or find new techniques
is able to sustain in market for longer period. There are various ways that can be used by
enterprise to manage and monitor performance of innovation such as use of innovative
technology or information technology. Organisation needs to invest more amount of capital,
resources in technology and research and development department in order to find innovative
method to satisfy needs of diverse customer range. Manager by using information technology
can able to easily get relevant information about market condition, unsatisfied wants of
customers thus find best possible way to gain strategic positioning. Key performance indicators
such employees, products or new technology, system that have helped company to earn more
profit margin. So it is one of the best methods to analysis and evaluates or measures outcome of
innovation within firm. Management of innovation is necessary for organisation in order to earn
more profit margins and customer’s loyalty. Overall this report has make use of analytical theory
in order to understand the way company have managed and measure innovation. At last it has
critically evaluated the measurement of innovation and its implication on firm growth and
success.
INTRODUCTION
Innovation relates to the strategic process of adding additional value to a good, product or
service so that it can become increasingly valuable and useful to the consumers. Innovation
process adds additional value to a good or service that already exists within the consumer
markets instead of creating a new innovative product (Nambisan and et.al., 2017). Innovation
management relates to the strategic business operations of combining innovation and

management processes in addition to change management. Innovation management process
includes various tools through which the management of a business organisation can effectively
cooperate with others based on a common understanding of processes, objectives and goals. This
report analyses the theme of managing and measuring innovation performance of a business
organisation.
MAIN BODY
Significance of Managing and Measuring Innovation Performance Within Business Organisation
The selected theme of managing and measuring innovation performance within a
business organisation is of immense importance and significance to the overall successful
operations of the business organisation over a sustained period of time. Currently, innovation
operations are part of the most rapidly growing and developing aspects of a business
organisations and operational industries as these allow for the businesses and the industry to
enhance their operational performance, efficiency, productivity and profit margins in the
consumer markets. Innovation operations of a business allow for the business organisation to be
able to effectively service the diverse and changing needs, requirements, demands and
preferences of their customers and also allows for the business organisation to be able to
effectively accomplish hard organisational goals and objectives (Leonidou and et.al., 2018).
Innovation has effectively transformed the operations of entire industries, with businesses now
able to effectively gain sustained competitive advantages, ensure their sustained successful
operations through innovation within the business organisation. The main importance of
managing and measuring innovation performance within business organisation is as follows:
 Management and measurement of innovation performance within a business organisation
allows for businesses operating in highly competitive industries of UK such as the retail
industry, technological industry, electronics industry etc., to effectively increase the
overall performance and efficiency of the business organisation and its employees,
allowing for the business to operate within increased productivity towards greater
generated profit margins within the highly competitive industry.
 Management and measurement of innovation performance within a business organisation
allows for the business organisation to make use of various new opportunities present in

the external environment of the business organisation to grow and develop the operations
and functions of the business organisation to new operational horizons for increased
productivity and profitability (Tidd and Bessant, 2018). Business organisation can make
use of new operational opportunities by effectively innovating their marketing,
manufacturing or sales operations in order to be effectively able to reach a wider
customer and market segment.
 Managing and measuring innovation performance within a business organisation also
allows for the business to place emphasis on the innovation of their production, supply
chain or marketing operations, increasing the overall skills, and experience of the
business’s employees, which enables the business organisation to possess workforce that
is highly skilled, experienced, innovative, creative and talented bringing new synergy to
varied operations of the business organisation.
Analytical Approach
Innovation that is driven by analysis is one of the most effective and systematic methods
through which a business organisation is able to operate towards new and better organisational
objectives and goals, allowing for the business organisation to effectively increase its overall
operational performance and efficiency, through which greater profit margins can be attained by
the business organisation. Analysis driven innovation is the systematic approach through which
the various operational projects of a business organisation which are to be initiated in the future,
can be effectively controlled by the business and new organisational objectives ca be created for
increased productivity and profit margins of the business organisation (Solaimani, Talab and van
der Rhee, 2019). In order for any typical business organisation to effectively be able to innovate
through analysis driven approach, it requires 1 to 5 years, with significant emphasis being placed
on focusing on strategic management within the business organisation for creating better
objectives, achieving them and also for operating using or with new innovation. Businesses that
manufacture goods and services having longer life cycles such as the automobile manufacturing
businesses tend to place increased focus on innovation of their marketing strategies in order to
reach as wide a market segment as is possible. Analysis driven innovation allows for business
organisations to effectively be able to gain a sustained competitive advantage by meeting the
new demands of customs from a wide market segment, enabling the business organisation to
grow and develop its business operations towards higher productivity and profit margins.

In order for any business organisation to effectively manage the innovation operations
within, it needs to take into account five main considerations focusing on leveraging the new
market opportunities and practices, wider technical performance and efficiency and operating
towards customer demands and preferences where innovation is demanded and required. These
are as follows using the real life example of Sainsbury retail business organisation:
Strategy: Sainsbury being one of the biggest retail business organisations in the UK with a total
market share of over 16% make effective use of innovation and technical strategy development
towards business operations through effective strategy formulation. Sainsbury’s strategy
formulation operations primarily focus on governing how exactly the organisational resources
required by the retail business organisation are sourced, making use of innovative practices in
order to accomplish organisational objectives of Sainsbury’s (Goffin and Mitchell, 2016). The
strategy formulation operations of Sainsbury’s also focus on how the retail business organisation
makes innovative use of organisational resources in order to increase its operational productivity
and profit margins.
Leadership: In order for Sainsbury’s innovation management operations to be successful,
another key consideration relates to the its organisational leadership. The leadership is
responsible for planning, implementation of various organisational resources, training all
employees and management to innovate and make effective use of innovative technological
solutions. Leadership is vital for the organisational objectives of Sainsbury’s to be strongly
focused on using and managing innovation within the business organisation.
Room to Improve: During this stage, in order for Sainsbury’s to be able to effectively develop
innovation within the business, it is required to place focus on developing room for innovation,
at which employees of the business can come together an brainstorm in order to get results where
all the competitive strategies are thoroughly evaluated, discussed which enables the business to
implement the most productive strategies. This stage is instrumental within Sainsbury’s as it
enables the business to focus its innovation operations towards being able to meet the demands
of customers and increase their profits generated.
Involvement: This stage requires all the diverse departments of Sainsbury’s to actively be
involved in the innovation operations of the business organisation by training and developing the

key skills, experiences and competencies of their employees (Mergel, 2016). This stage ensures
that Sainsbury’s is able to achieve the strategic objectives and goals that it has created by
involving all the various departments of the business organisation to cooperate and communicate
effectively with one another.
Implementation: This last stage requires Sainsbury’s to implement organisational wide the
innovation strategies and operations that its management and leadership have created to all the
various departments of the business such as manufacturing, supply chain, marketing etc., in order
to grow and enhance the current business operations towards increased success in the future.
This stage requires Sainsbury’s to place increased importance on factoring in the growth
opportunities available to the business.
Models of Innovation
 Disruptive Innovation: This is one of the most popular and used models of innovations
within business organisation. The disruptive innovation model refers to the overall
evolution of a new concept or highly innovative products or services that are able to
create a completely new market business opportunity for a business organisation.
Disruptive innovation is used by various business organisations of UK including
Sainsbury’s towards creating innovative business strategies that are able to effectively
satisfy the needs, requirements, demands and preferences of new customer within diverse
market segments.
 Incremental Innovation: This is another innovation management model which a
business organisation such as Sainsbury’s makes use of in order to innovate its business
operations and goods by incrementally adding new techniques, measures to the
operations or product in order for them to become increasingly valuable to the business
and consumers (Goffin and et.al., 2019). Incremental innovation results in the evolution
of old operational techniques and methods of Sainsbury’s so that effective innovation can
take place within business organisation.
Innovation matrix within a business organisation can be better evaluated by understanding three
functional fundamental models where businesses focus on their innovation operations in order to
become increasingly competitive and generate greater profits as follows:

 Business Innovation: This model of innovation refers to the business organisation
creating creativity and ability to rethink within the business organisation in addition to
assessing wider revenue streams, maintaining the competitive edge of the business and
establishing business metrics through which increased value can be generated. This
places importance of the business on using scale management innovation and harder
organisational objectives and goals in order for the business to innovate its operations.
Business innovation shapes the goodwill of the organisation with factors of diversity in
order to enable the business to accomplish its goals and sustain competitive advantage.
 Technology Innovation: This model of innovation requires business organisations to
generate new and innovative ideas on the basis on the technological capabilities and
knowledge of the business organisation finding new, unique and innovative
organisational solutions (Singh and Gaur, 2018). Successful technology innovation
allows for a business organisation to make use of vast business opportunities that are now
available to it for entering into new markets, enhancing their overall productivity and
profit margins.
 Marketing Innovation: This model relates to a business organisation introducing goods
and services into the consumer markets by making use of new and innovative marketing
techniques in order to promote, advertise and reach a vast market segment. Marketing
innovation has helped shape the promotion and marketing operations of a business
organisation to make the best use of new and innovative solutions in the external markets
in order to be able to effectively promote and advertise the manufactured goods and
services of a business organisation.
Metrics and Models for Measuring Innovation Performance of a Business
There exist various metrics that can be used by a business organisation with the intention
to measure their innovation performance, such as:
 Timesheet Metrics: These are used by businesses in order to gain quantitative records of
the overall quality of efforts of the business and for evaluating exactly how innovation
has been implemented within the business towards its growth and development. These
metrics are also useful for businesses towards sharing their business service with their
sponsors, management and investors.

 Financial Metrics: Business organisations can also make use of financial metrics in
order to measure their innovation performance and operations. This metric allows for a
business to develop analysis of profit margins, new scale services and to analyse how the
business has been able to reach productive scale services (Ratten, 2017). Using financial
metrics, the business organisation measures how innovation models are implemented
within the business and the changes that have been identified because of this.
 Leadership and Management Metrics: This metrics is also commonly used by business
organisations in order to analyse how much progression and innovation has been brought
about by the employees of the business towards its operational and functional levels. This
allows for a business to evolve its operations through work focus where new scale
opportunities can be analysed, by assessing how much innovation has been implemented
within the business and its services. Management and leadership of a business is always
looking to analyse just how responsive the business’s employees and management have
been towards innovation.
 Training and Staff Competency Metrics: This is another metric for measuring
innovation performance within a business organisation where the trained skills and
competencies of employees are monitored and measured within the business organisation
(Korableva, Gorelov and Shulha, 2017). The skills and competencies of employees of the
business plays vital role for describing the opportunities that are available to the business
on account of its innovation operations and also for factoring in the growth opportunities
that business can use.
Findings and Critical Evaluation
Innovation management operations of a business organisation are complex in nature that
are used with the intention to gain sustained competitive advantage for the business and to
increase its operational performance, productivity and efficiency within operational industries.
Management of a business can make use of diverse set of tools and techniques with the intention
to promote and encourage innovation within business operations so that the business organisation
is able to achieve its organisational objectives and goals in an effective manner. Various different
business organisations such as Apple, Amazon, Sephora etc., maintain and measure innovation
operations within their respective business organisation through capabilities of employees,
organisational culture, return on investments etc., in the following manners:

 Amazon makes use of return on investments in order to assess and measure their
innovation performance by evaluating the total return on financial investments and
resources made by the business organisation (Mir, Casadesús and Petnji, 2016). Through
return on investments, Amazon is able to identify the inherent strengths and weaknesses
of the business, with its management being able to take appropriate actions such as
formulation of future strategies for achieving organisational objectives and goals, based
on this analysis for the sustained successful operations of the business organisation.
 Sephora is another business that maintains and measures innovation operations within the
business through the introduction of its Innovation Lab in 2015 with the intention to test,
create and build best customer experience for their consumers. Sephora uses artificial
intelligence technological solution to improve the levels of service and satisfaction
provided by the business to its consumers (Fontana and Musa, 2017). This allows for the
management of Sephora to effectively measure and manage how the business innovates
using its existing infrastructure, capabilities and operational processes.
 Apple also effectively maintains and measures the innovation operations and
performance within the business organisation that allows for the business to conduct its
operations successfully over a sustained period of time through leadership and
management metrics that aid the Apple management to effectively monitor and measure
innovation within business such as the supportiveness and cooperation within the
organisational culture of the business, through which employees of the business can be
motivated to achieve the organisational goals and objectives of the business organisation.
Therefore, management of business organisations are able to effectively measure their innovation
performance and operations allowing for them to plan and implement new and innovative
business strategies that are able to effectively meet and satisfy the varying needs, demands,
requirements and preferences of their customers.
Conclusions and Recommendations
Through the findings of the report, it can effectively be concluded that management and
measurement of innovation operations of a business organisation is a key role and responsibility
of its management that allows for a business organisation to effectively grow and develop its
business operations and gain a sustained competitive advantage within operational industries.

Effective innovation management operations of a business allow for the business to effectively
and efficiently achieve its organisational objectives and goals for the overall success of the
business. In addition, in order to further improve the innovation management operations of
business organisations they are recommended the following:
 Business organisations are recommended to make use of new and innovative information
technological tools and solutions in order to collect, store and analyse operational data
and information related to the measurement of business’s performance. This can allow
businesses and its management to effectively and efficiently record, store and analyse
their business and innovation performance towards getting desired results.
 Management of business organisations are further recommended to engage in continuous
analysis of the business environment in order to be continuously aware of the
opportunities and threats that are available to the business organisation so that effective
business strategies can be created for the overall growth and development of the business
organisation. The business is recommended to identify the unmet and unsatisfied needs,
requirements, demands and preferences of the customers which can allow for the
business to grow and develop its business operations and gain a sustained competitive
advantage within the operational industries against their competitor business
organisations.
 Finally, the management of business organisations are further recommended to place
increased importance, focus and emphasis on the overall organisational culture and work
ethics present within the business organisation. Only when a business possesses positive
work ethics and organisational culture can it hope to conduct its innovation operations in
a positive manner for the overall growth, development and success of the business within
operational industries.

REFERENCES
Books and Journals
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management and its measurement validation. International Journal of Innovation
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innovation management. Journal of Product Innovation Management. 36(5). pp.586-
615.
Goffin, K. and Mitchell, R., 2016. Innovation management: effective strategy and
implementation. Macmillan International Higher Education.
Korableva, O.N., Gorelov, N.A. and Shulha, M.V., 2017, September. Risk component of
innovation management strategy. In European Conference on Innovation and
Entrepreneurship (pp. 837-843). Academic Conferences International Limited.
Leonidou, E. and et.al., 2018. An integrative framework of stakeholder engagement for
innovation management and entrepreneurship development. Journal of Business
Research.
Mergel, I., 2016. Agile innovation management in government: A research agenda. Government
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Mir, M., Casadesús, M. and Petnji, L.H., 2016. The impact of standardized innovation
management systems on innovation capability and business performance: An empirical
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management research in a digital world. Mis Quarterly. 41(1).
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Singh, S.K. and Gaur, S.S., 2018. Entrepreneurship and innovation management in emerging
economies. Management Decision.
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management. Journal of Business Research. 105. pp.109-120.
Tidd, J. and Bessant, J., 2018. Innovation management challenges: From fads to fundamentals.
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