Innovation Management Report: Analysis of Dan Murphy's Strategies

This report analyzes innovation management within the context of Dan Murphy's, an Australian liquor supermarket chain. It begins with an introduction to the company, followed by an examination of current trends, including direct-to-consumer sales and the impact of technological advancements such as automated filtration processes in the wine industry. The report then delves into individual and collective innovative thinking within the organization, identifying potential barriers to innovation like employee resistance and the impact of legislative frameworks. It also explores the company's current innovation performance and opportunities for improvement, such as implementing crossflow filtration systems and enhancing the quality of beverages. Furthermore, the report examines the leadership role in fostering innovation, including the impact of individual leadership skills and the importance of communication. Finally, it proposes strategies for improving personal effectiveness in driving innovation within the organization, emphasizing the need for improved communication and stakeholder engagement.

Running head: INNOVATION MANAGEMENT
INNOVATION MANAGEMENT
Name of the student
Name of the university
Author note

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Table of Contents
Assignment 1...................................................................................................................................2
Introduction to Dan Murphy’s.....................................................................................................2
Current trends shaping the organization......................................................................................3
Individual and collective innovative thinking within the organisation.......................................4
Leadership role that might improve innovation in the organisation............................................7
Strategies for improving innovation in the target organisation...................................................9
Assignment 2.................................................................................................................................11
Planning the introduction of innovative thinking and practices................................................11
Strategies for supporting new practices.....................................................................................14
Fostering creative ideas in the workplace..................................................................................16
Fostering effective workplace culture.......................................................................................16
Monitoring processes.................................................................................................................17
Management of the risks in innovation.....................................................................................17
Determination of the change management strategies................................................................18
Reference.......................................................................................................................................20

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Assignment 1
Introduction to Dan Murphy’s
The organization, Dan Murphy's, is an Australian liquor supermarket chain which is
owned by Woolworths Limited (Danmurphys.com.au. 2019). The organization was established
in the year 1952 which expanded to 226 stores across the nation (Danmurphys.com.au. 2019).
The organization employs around 4,250 employees for the uninterrupted functioning of the
diverse functions (Danmurphys.com.au. 2019). On the contrary, the links with Woolworths
permitted the venture in redeeming the adeptness of the functions in position with the needs of
the customers. The competitive edge of the venture is specifically based on the lowest price that
is quoted by the same over the offerings of the competitors. The growth of the organization is
specifically based on the increasing rate of consumption among the Australians. On the contrary,
the online delivery streams provided the organization in adding value to the propositions while
making the propositions widely available to the customers.
However, there are significant issues that are being encountered by the organization due
to absence of efficient automated filtration processes. The lack of efficient automated processes
restricted the quality of fermentation and filtration processes, which incapacitated the
organization in retaining the loyalty of the customers. The report will examine the current trends
that are shaping the functions of the venture while evaluating the individual and collective
innovative thinking within the organisation. Lastly, the research will also enumerate the
leadership roles that might restrict the rate of functions of the venture while implementing the
innovation in the organizational processes along with the options for improving innovation.

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Current trends shaping the organization
The major internal and external trends that are shaping the wine manufacturing facilities
are specifically based on the Direct-to-consumer (D2C) sales as it provided the organizations
with better profitability. It has been noted that more than 62% of the wineries undertake a D2C
sales technique with the objective of improving the rate sales while sweeping in maximized
profits (De Massis et al. 2016). On the contrary, the introduction of automated technologies in
the wine industry related to crossflow filtration and lees filtration permitted most of the
organizations in improving the quality of the propositions that are made by the same. Galbreath,
Charles and Oczkowski (2016) opined that the frequent technological innovations in the wine
industry brought about significant modifications in the quality of the fermentation process while
minimizing human related errors. In this relation, the mission of the organization, Dan Murphy’s,
is to provide extensive range of wines in lower prices which will be unbeatable by the
competitors (Duarte Alonso and Bressan 2016). Again, the human related errors in the wine
manufacturing units might contaminate or restrictthe quality of the propositions affecting rate of
retention of the customers. It might be taken as an internal trend that has mandated the
organization to switch to automated facilities. Therefore, the organization developed online
channels with the objective of making the propositions available to the target consumers.
However, the lack of innovation in the technological elements through absence of
automated filtration processes restricted the capabilities of the venture in improving the quality
of the propositions. The absence of crossflow filtration and lees filtration for manufacturing
small lots affected the capability of the organization in relating to the automated technology that
is being already utilized by the other organizations in the industry (Gilinsky Jr, Newton and
Vega 2016). However, the multi-channelled distribution permitted the concerned organization in

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addressing the needs of most of the target customers while improving the rate of availability of
the propositions. The change in the preferences of the customers from wine to cider, craft beer
and spirits have reduced the volume of target customers for the venture.
It has been noted that more than 12% of the millennials are enthusiastic towards the
consumption of craft beers, cider and spirits for their enhanced taste (Lee, Hallak and
Sardeshmukh 2016). In this relation, the concerned organization undertook fewer activities for
bringing forth changes in the taste of the liquor that is being provided by the same. The lack of
automated technologies in the organization affected the quality of the offerings due to the human
related errors (Golicic, Flint and Signori 2017). However, the organization aimed at improving
online selling options for reinforcing their rate of sales in the competitive markets.
Individual and collective innovative thinking within the organisation
Potential barriers and risks to innovation
The potential risks that might be encountered by the organization while initiating the
innovation are: Resistance from the employees: The employees of the organization might resist to the
automated technologies as the organization might lay off huge amount of employees to
cut costs (Galbreath 2019). On the contrary, the lack of human indulgence through the
automated technology might force the organization in laying off a significant amount of
workforce. Therefore, the employees might resist over the innovation that the
organization is planning to implement. Complex technological process: The complex nature of the automated technologies and
the lack of proficient knowledge on the functions might restrictthe capability of the
organization in improving the rate of functions of the venture. The complexity of the

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technology and the absence of proficient knowledge on its operational elements might
restrictthe quality based propositions of venture while drawing the attention of the
prospective customers. Lack of sufficient financial resources: The lack of sufficient financial resources might
restrict the capability of the organization in implementing the technology. The investors
and creditors of the venture might not be convinced of the benefits that the organization
might derive from the implementation of the innovation in the business model. Therefore,
the lack of sufficient financial resources might restrictthe technology implementation
process of the venture.
Impact of legislative frameworks, such as those relating to copyright and intellectual property
The Australian Copyright Act 1968 (as amended) delineates the legal enforcements
while providing rights to the creators through artistic works (Goncharuk 2017). The application
of the copyright act restricted the innovation based functions of the organization while imposing
strict legislations prohibiting the organization to copy technologies from the diverse other
organizations in the industry without their consent. Therefore, the collective innovation thinking
capability and open innovation of the organization is nipped through the imposition of the
legislation. The Australian Intellectual Property Laws prohibited the organization in accessing
diverse intangible assets of the other companies relating to patents, trademarks, designs and
processes (Bartlett and McAra 2016). It might again restrictthe rat of uninterrupted functioning
and expansion of the venture through the application of the innovation.
Current innovation performance and opportunities for improving strategies to improve
innovation

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The concerned organization has already started improving a range of craft beers and
cedars with the objective of improving the sales volume while attracting the attention of the
millennials. On the contrary, the organization developed a culture of assessing the quality of the
liquor before distributing the same to the end users. The continuous quality checks permitted the
venture in providing the customers with improved quality liquor (Wilson 2016). The
organization introduced direct steam distillation and Kjeldahl applications with the objective of
refining the quality of the liquor. However, the organization holds greater opportunities for
implementing lees filtration and cross flow systems which would permit the organization in
presenting wine that are microbiologically stable for the customers. The enhanced taste and aura
of the wine would permit the organization in improving a wider base of customers (Williamson
et al. 2016). On the contrary, the mission of the organization is to provide the customers with
lower priced beverages. Therefore, the improvements in the quality of the proposition would
permit the venture in achieving a competitive value over the existing players in the markets.
The technological innovations would not only permit the organization in improving the
rate of production but also the quality of the propositions to the target base of customers. The
open door policy in the organization encouraged the maximized engagement of the diverse
stakeholders in the diverse processes (Quinton and Wilson 2016). On the contrary, the
transparency of the functions of the venture permitted the same in retaining the trust and
confidence of the employees and the other stakeholders. Improvements in the communication
channels permitted the venture in improving the rate of functions through increased
collaboration between the management and the employees (Castillo, Villanueva and García‐
Cortijo 2016). Therefore, the management structure and the organizational goals permits the

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organisation in improving an innovative culture, influenced by the exceeding support of the
stakeholders.
Leadership role that might improve innovation in the organisation
Impact of individual leadership skills and leadership style on fostering innovation
Leadership skills play an important role while bringing forth modifications in an
organizational functions. Hallak et al. (2018) stated that the long term vision and decision
making skills of a leader permits the same in identifying the prospective modifications and the
manner in which the changes might contribute to the organizational sustenance. In this relation,
I believe that the diverse change in the organizational functions are specifically based on the
decision making skills of the leaders. I reflected on my own leadership skills and I developed an
insight that I have the capacity of encouraging long term planning for promoting sustenance
(Duarte Alonso, Bressan and Sakellarios 2017). The long term vision and extensive
knowledge on the processes permits a leader in reinforcing the rate of functions of the venture
while operating as per the common objectives. On the contrary, I believe that I lack in skills of
communicability would disable me in reinforcing the engagement of the diverse stakeholders
while initiating an innovation.
Celhay et al. (2017) stated that the increased transparency in the communication with the
stakeholders permits in encouraging the engagement of the stakeholders in the business
innovations. In this relation, I believe that the increased communication and transparency
between me and the stakeholders would have permitted me in engaging the workforce and
develop collaboration for achieving the common goal of the business. However, the introverted
nature and lack of proficient communication with the stakeholders might restrictmy abilities of
encouraging the engagement of the same in the change process. On the contrary, the lack of

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proficient communicability might restrict skills of negotiation and overcoming resistances from
the side of the employees.
Opportunities of improving personal effectiveness
I believe that I must take steps to improve my communication skills with the objective of
encouraging the engagement of the employees in the innovative processes that re planned by the
organization. Qesja, Crouch and Quester (2016) defined communication as an important
activity that must be undertaken by the leaders with the stakeholders with the objective of
empowering engagement. On the contrary, I believe that apart from stakeholder engagement,
communication skills would permit me in negotiating with the stakeholders in terms of the need
of implementing the innovation and improving the rate of change readiness among the
stakeholders. On the contrary, the communication would also permit me in identifying the
training based needs of the employees while operating in the change processes (Christ, Burritt
and Varsei 2017). Therefore, the communication would permit me in improving the rate of
learning and development programs for the employees and the other stakeholder groups. The
diverse changes in the organizational functions are specifically based on the engagement of the
stakeholders. Therefore, I would like to build on my capability of communication for reinforcing
the rate of knowledge transfers and encourage the engagement of the stakeholders in the diverse
processes that are planned by the enterprise.
Strategies for modelling innovative thinking and practice
The strategies for modelling innovative thinking and practices is based on the
engagement of the employees in the diverse processes. The maximized engagement of the
employees in the diverse processes will be developed through open door policy and frequent
interactions of the managers with the workforce (Flores 2018). On the contrary, the organization

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might also take steps to ensure sufficient space to the employees and the diverse stakeholders to
present their viewpoints on the diverse changes that are being planned by the venture. The
modelling of innovative thinking into practice is specifically based on the maximized
engagement of the stakeholders on the decision making process while holding open discussions
with the same on the diverse developmental aspects of the organization.
Strategies for improving innovation in the target organisation
Strategies for risk mitigation
The major strategies that might be initiated by the organization for overcoming the risks
and barriers are being defined in this section of the assessment:
 Negotiating with the employees: The organizational management might take steps to
negotiate with the employees in terms of implementing the innovation through
transparency in the communication process. The transparency of the communication
process would permit the managers in establishing trust and confidence among the
stakeholders (Croidieu, Rüling and Boutinot 2016). Therefore, in this relation, the
transparency of communication methodologies would permit the organization in ensuring
the maximized engagement of the stakeholders in the diverse change processes.
 Gaining knowledge and hiring experts for the processes: The knowledge of the
processes and recruitment of skilled experts would permit the organization in improving
the rate of functions of the venture while implementing the new technologies. The
recruitment of specific technical skills in the organization would permit the organization
in improving the rate of functions while operating in the diverse markets.
 Undertaking financial assessments: The budgeting and financial assessments would
allow the organization in identifying the strategic fit and the value that would be gathered

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by the same through the application of the new technology. The changes in the
organization would be based on the assessment of the benefits that would be gathered by
the organization through the technology (Potts 2016). Therefore, the company might take
steps to develop a consolidated budget as per the capabilities for reducing chances of cost
overruns.
Management techniques for encouraging creative thinking and innovation
The strategies for managing and encouraging creative thinking and innovation are:
 Organizing forums and discussions to indulge the employees: Organizing forums for
open discussions on the advantages of the innovation would permit the organization in
improving the engagement of the stakeholders, specifically the employees. The
engagement of the employees in the diverse processes that are being planned by the
venture would permit free flow of innovative and creative ideas for improving the
process design (Mariani et al. 2016). Therefore, the venture must take steps to organize
forums and open discussions for reinforcing the engagement of the employees in the
diverse processes.
 Improving the transparency of communication: The transparency of communication
between the managers and the employees would permit the venture in improving the rate
of engagement of the employees in the diverse innovative processes. The transparency of
the functions and steady links of communication between the managers and the
employees would permit the venture in establishing change readiness and interest
Strategies for managing the changes
The diverse strategies that might be initiated by the organization for managing the
changes will be enumerated in this section of the research:

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 Evaluation of the organizational situation: The evaluation of the organizational situation
would provide the venture with an idea on the needs for the organizational change. In this
relation, the assessment of the organization is based on the inherent capabilities and the
manner in which the innovation might assist the organization in bringing forth
modifications.
 Assessment of feasibility of the innovation: The assessment of feasibility of the
innovation and the manner in which it would contribute to improvements in the quality of
the proposition is an important consideration that might be commenced by an
organization (Lee, Hallak and Sardeshmukh 2016). The assessment of feasibility of the
innovation process will be based on benefits that will be received by the organization
through the implementation of the same. Therefore, the innovation will be backed by the
benefits that will be gathered by the organization through the implementation of the
same.
 Team collaboration: The organizational strategy of promoting team collaboration would
improve the performance of the venture while operating in the diverse markets. The
development of team collaboration would also contribute to the quality of the offerings
that are made by the venture while operating in the diverse markets.
Assignment 2
Planning the introduction of innovative thinking and practices
Identification and assessment of adequate resources for innovation
The delineation of the adequate resources for the operationalization of the innovation is
specifically based on the assessment of the human and financial capabilities. The human and
financial capabilities of an organization encourages the same in redeeming the adeptness of the