Leadership in Business: CRM, Innovation, and Leadership Analysis

This report analyzes leadership in the context of business, particularly focusing on Customer Relationship Management (CRM) and its impact on innovation within organizations. The report uses Woolworths, a major Australian supermarket chain, as a case study to illustrate the application of CRM strategies and the challenges faced in customer retention and loyalty. It explores different leadership approaches, including transformational and transactional leadership, and their influence on fostering innovation management. The report also discusses barriers to innovation within organizations, such as employee resistance and the importance of a strong CRM team. The analysis emphasizes the significance of leadership in driving innovation, the role of organizational learning, and the importance of adapting to customer demands and preferences. The report highlights the need for a comprehensive CRM strategy, the implementation of IT systems with a strong customer focus, and the adoption of shared leadership approaches to overcome challenges and promote successful innovation.

Running head: LEADERSHIP IN BUSINESS
LEADERSHIP IN BUSINESS
Name of the Student:
Name of the University:
Author note:

1LEADERSHIP IN BUSINESS
Assessment 1
Part 1A (1.1)
In the globalized era, organizations are encountering intense competition and challenges
in attaining growth in the market. Woolworths known as Australia’s largest supermarket chain of
grocery and fresh food products comprises various loyalty schemes and strategies for sustaining
its market share as well as position in the Australian retail market. The organization operating
over 933 stores provides various discount fuel offers, regular rewards along with frequent
shopper club in order to generate greater degree of loyalty from consumers and further sustain
proper customer base1. The company has been leveraging exceptional data assets in order to
generate new insights along with competitive advantage which are not yet being accessible to
other retailers.
CRM (Customer Relationship Management) primarily entails evolution and integration
of marketing ideas and knowledge, technologies and tends to concentrate on developing and
maintaining effectual long-term associations with well-chosen customers. CRM could be applied
to systematically leverage consumer-related ideas and information in order to skilfully align new
product development (NPD) with marker demands and requirements, further condensing new
product rates. Nicuta et al. suggested that manufacturers in globalized era must implement
advanced technologies such as digital analysis, customer information methods and service
centres to explicitly understand and establish communication base with the buyers2. Furthermore,
organizations are able to show rapid responsiveness to the requests and demands of customers
who seek new product innovation. Thus, renowned enterprises must implement technology-
1 Woolworths.com.au. 2018. Woolworths.Com.Au. https://www.woolworths.com.au/.
2 Nicuta, Alina-Mihaela, Florin-Alexandru Luca, and AndreeaApetrei. "Innovation And Trends In Crm-Customer
Relationship Management." Network Intelligence Studies 11 (2018): 21-25.

2LEADERSHIP IN BUSINESS
based CRM endorses product innovation to maintain their competitive advantageous position in
the Australian retail sector3.
Though Woolworths has been applying significant CRM strategies, the customer
relationship management of the company has not been effectual enough to successfully retain
customers and attain long term loyalty. Furthermore, the customer retention regulations and
policies implemented by the company are not underlined by the CRM system. Thus the
modernized CRM system by Woolworths can facilitate it to develop rapid responsiveness to
customers’ increasing demands and shifting preferences and successfully offer enhanced
customization if provided with accurate knowledge from the purchasers through technology-
based CRM practices4. Further to this, various marketing strategies could also be developed for
specific targeted customer groups. Thus, innovation based CRM system is recognized to have
constructive impact on marketing innovation of Woolworths. Author observed that developing
IT systems with strong consumer focus enhances services quality along with the level of
customer satisfaction. However applying data mining tools, organizations such as Woolworths
are able to develop insights attained from their data warehouse to efficiently increase sales and
offer new and improved products and services to their buyers5.
Challenges-
Reports by Jalali (2015) reveal that Woolworths has been facing a slow profit growth in almost
two decades and must focus on reducing its product price range in order to compete with its two
3Garrido-Moreno, Aurora, Nigel Lockett, and Victor Garcia-Morales. "Exploring the role of knowledge
management practices in fostering customer relationship management as a catalyst of marketing innovation." Baltic
Journal of Management 10, no. 4 (2015): 393-412.
4 Gu, Vicky Ching, Marc J. Schniederjans, and Qing Cao. "Diffusion of innovation: customer relationship
management adoption in supply chain organizations." International Journal of Quality Innovation 1, no. 1 (2015): 6.
5 Wang, Ping, XuMeng, and Brian Butler. "How Do Community Ecology and Structure Shape Digital Innovation
Strategy?." (2015).

3LEADERSHIP IN BUSINESS
strong rivals Coles and Aldi.
Absence of core CRM team- One of the critical areas Woolworth’s has faced is implementing
CRM strategy with the assumption that it is an IT project. However the organisation must
employee of course CRM team which works with the organisation stakeholders, customer
support executive, senior executive as well as end users in order to essentially understand the
requirements and demands6. With comprehensive understanding and clear
objectives,Woolworths can facilitate the IT team to initiate the CRM innovationimplementation
procedure.
Defining the CRM strategy processes-The process to implement a successful CRM should be
well comprehensive to ensure the success and attainment of the proposed CRM project.
Woolworths must practice to efficiently create universal repositories that is accessible to all
which stores all process definitions. The fundamental processes that the company need to define
from the initial stage can involve change management procedures and further feature revaluation
process.
Studies on universal idea-to-launch practices state that around 90% of most efficient
performers in NPD exhibit distinct NPD procedures with comprehensively defined performances
at each stage along with a precise decision making outline. However in order to successfully
develop innovation in a NPD, Woolworths have incorporated customer response in the process
of innovation process7. It has been identified that CRM software facilitates to generate ideas
either directly or through customer responses. To execute process of idea generation,
6 Jalali, Seyed Mahdi, and MasoudSardari. "Study the effect of different aspects of customer relationship
management (CRM) on innovation capabilities with mediator role of knowledge management (Case study: Mahram
company)." Mediterranean Journal of Social Sciences 6, no. 6 S6 (2015): 343.
7 Spillan, John E., and Howard G. Ling. "Woolworths: An Adizes Corporate Lifecycle Perspective." In Business
History Conference. Business and Economic History On-line: Papers Presented at the BHC Annual Meeting, vol.
13, p. 1. Business History Conference, 2015.

4LEADERSHIP IN BUSINESS
Woolworths sales executive have used performance records in CRM in order to record ideas and
innovation offered by customers and further incorporate appealing attributes of competing
products, potential complementary services and products as well as physical characteristics.
1.3)Leadership Approaches Fostering Innovation Management
There are strong indications that leadership is vital for innovation. Leadership tends to
play acrucial role in improving organisational creativity introducing and driving innovation
projectsalong with implementing innovation assignments and overcoming resistance.
Emphasisingon the impact of transformational and transactional leadership approaches it can be
statedthat both these approaches tend to influence business performance. However, D’Innocenzo
et al. posited that transactional leadership approach is unconstructively associated two
businessperformances and innovation which involve two forms of transactional
leadershipcontingent reward and management by exception passive active8. However due to
itsnegative impact on innovation procedure, the other form of approach that istransformational
leadership technique is seen to be vital for organisations innovation.
Transactional leaders tends to influence on the decision making procedure on
launchingnew ideas innovation as well as specific objectives and encouraging forms of
innovation.However both transformational leadership and organisational learning house
simultaneousinfluence on process of innovation organisation learning process a stronger direct
impact oninnovation in comparison to the direct impact of transformational leadership on
innovation.As a result it can be stated that both organisational learning and transformational
leadership can foster innovation procedure and the direct influence of organisational learning
oninnovation procedure and creative ideas are regarded to be more crucial than the
8 D’Innocenzo, Lauren, John E. Mathieu, and Michael R. Kukenberger. "A meta-analysis of different forms of
shared leadership–team performance relations." Journal of Management 42, no. 7 (2016): 1964-1991.

5LEADERSHIP IN BUSINESS
directinfluence of transformational learning on innovation9. However contemporary managers
areof the opinion that they seek innovative leaders to take risks and think ‘out of the box’
ratherthan deriving ideas from the past or emphasising on intellectual stimulation.
Furthermorethere can be witnessed a positive association between transformational leadership
andinnovation to organisational learning Where are there can be identified a direct butdiminutive
positive relationship between transformational leadership and innovation. Thishowever
underlines that transformational leadership fosters innovations in a positive way. Evaluating the
willingness of modern leaders to embrace risk
Strategies and errors have beenthe initial steps for launching innovation within an
organisation. Further to this, facilitatingorganisational members in launching and implementing
knowledge in a constructive internalenvironment are important approaches towards innovation
for organisations10. Thus emphasising on transformational leadership, it can be stated that this
approach tends to advance leaders and organisations to the Future which are core determinants
forsuccessful innovation process.
Shared leadership approach- It is important to know that shared and distributed
leadershipapproach tend to challenge the assumption of formal leadership techniques that
signified‘an individual in charge and the others will follow”11. However, shared leadership
approachhas been considered as a dynamic unfolding interactive factor for individuals there by
theprimary aim is to lead one another towards the attainment of collective goals.
9 Jaiswal, Neeraj Kumar, and RajibLochanDhar. "Transformational leadership, innovation climate, creative self-
efficacy and employee creativity: A multilevel study." International Journal of Hospitality Management 51 (2015):
30-41.
10 Li, Voyce, Rebecca Mitchell, and Brendan Boyle. "The divergent effects of transformational leadership on
individual and team innovation." Group & Organization Management 41, no. 1 (2016): 66-97.
11 D’Innocenzo, Lauren, John E. Mathieu, and Michael R. Kukenberger. "A meta-analysis of different forms of
shared leadership–team performance relations." Journal of Management 42, no. 7 (2016): 1964-1991.

6LEADERSHIP IN BUSINESS
Furthermoreinnovation procedure in most organisations primarily focus on the value of coaching
andguidance in ensuring that teams are working on the appropriate track12. Thus, the
importanceof rewards and recognition in enhancing enthusiasm among distributed leaders can
help insetting up a linkage between distributed and instrumental leadership approach.
Leadership Approaches Hindering Innovation Procedure
Studies of Snihur et al. with comprehensive insights about the way transactional on
instrumental leadership have been especially implemented into innovation projects for
organisations. It has been noted that leaders tend to distinguish their subordinates or followers’
demands andaccordingly formulate exchange procedures on the basis of those requirements.
Howeveremphasizing on incentives on continuing rewards that is identifying success
andaccomplishments and for the management by exception that is active and passive search
fordeviations from current regulations and standards tends to be critical for launchinginnovation
for any organisation. Typically, transactional leadership is perceived as means tosustain things
on track at the time of implementation and less appropriate for the stimulation of creative and
innovative ideas. As result author noted that incremental innovations mighthave the propensity to
be better regulated by transactional leaders where as radicalinnovations might be led by
transformational leaders in an improved manner.
Barriers to Innovation Management within organizations
Studies indicate that several companies implement proximate indicators related to
innovation achievement. However these measures exclusively functions when applied to
developed and consistent markets rather than innovation13. Studies state that several innovators
12 Snihur, Yuliya, Llewellyn DW Thomas, and Robert A. Burgelman. "The Performative Power of Words: How
Business Model Innovators Use Framing for Strategic Advantage." (2018).
13 Rodriguez, Michael, Robert M. Peterson, and HayaAjjan. "CRM/social media technology: impact on customer
orientation process and organizational sales performance." In Ideas in Marketing: Finding the New and Polishing
the Old, pp. 636-638. Springer, Cham, 2015.

7LEADERSHIP IN BUSINESS
encounter critical forms of challenges while launching any new change or enhancing the existing
ideas. However the application of CRM innovation can undergo critical challenges.
Dilemma regarding real importance of CRM
Obtaining all necessary information about clients and stakeholders often results
organizations to avoid in using CRM innovation. Though, Woolworths with wide range of
diverse clients might obtain some perfunctory factors of client-base, the company requires a
comprehensive CRM innovation. CRM system not only maintains computerised records on
considerably static information about its clientele such as maintain basic contact records of
clients. A modernized CRM system maintains a 360 degree outlook of each and every interaction
of a client with the business enterprise. Such innovation could claim shifting interests along with
up-selling potential which will integrate the clientele to the business firm.
Employee resistance against Innovation
Internal resistance against innovations exposes conflicts of motives between organization
and its employees. Though it tend to reinstate the level of competitiveness of the organization in
the future, employees resist those changes which pose threats to leave them in the short run by
failing to collaborate in strategized innovations in the hope to preserve the old order. Typically
endeavours, capital and financial resources are invested before improving the system and all
implications are distinct. However, during investment, it is indistinctive if the training efforts
have adequate revenues. Consequentially, internal employee resistance against innovations are
higher when it is unclear that the expense of improving the current system is compensated after
the application of the innovation. CRM is not exclusively related to technology, but has
implications on employees and business functionality aided by appropriate technological
solutions.

8LEADERSHIP IN BUSINESS
Thus proper communication is fundamental in such circumstances whereby innovation is
forthcoming. The employee base must be involved into a discussion whereby they must be
explainedthe proper definition of CRM and changes in procedures required for the attainable
goal. Employees must be offered proper avenues to share ideas and knowledge about their
misinterpretations as well as potential issues which may emerge during or post implementation14.
1.4 Five Principles for CRM Success
Principle 1- CRM is a strategy
CRM innovation solutions facilitate organizations to gain better ideas about their
clientele and consequentially respond to those demands and needs. Woolworths aiming to
renovate its CRM system must consider that CRM will pertain to be a successful production
strategy which involves proper strategic configuration of business procedures15. Thus to develop
a comprehensive CRM innovation strategy, Woolworths must realize the Australian retail
market, sector and consumer which persuade the selection and implementation of its products
and services. Woolworths must further recognize its competitive environment that consists of
Coles Supermarket, Aldi and identify factors which can differentiate it from its competitors
through improved customer experience.
Principle 2- Proper Application of CRM innovation success
Business procedures are not constant. Furthermore, Woolworth ‘s competence to
reconfigure procedures rapidly in response to the changing needs, demands and preferences can
produce vital competitive gains. Furthermore, an innovative CRM solution set up on flexible
expertise platform can effortlessly be adjusted to go with the recent employee base of
14 Ali, Zaman, IshakuIshaya, and Haslinda Hassan. "The Critical Success Factors of e-CRM Implementation to
Small and Medium Enterprises." In International Conference on E-commerce. 2015.
15 Alexe, Cătălin George, Cătălina Monica Alexe, and Gheorghe Militaru. "Idea Management in the innovation
process." Network Intelligence Studies 11, no. 2 (2014): 4.

9LEADERSHIP IN BUSINESS
Woolworths.
Woolworths must derive increased value from it CRM innovation system to standardize,
modernize and refine these processes. In certain cases, Woolworths is enabling itself to leverage
its CRM system in order to mechanize conformity with shifting system, policies and extending
the importance of its investment.
Principle 3- Define assessable CRM Advantages
Efficiently determining the influence of CRM system of any business, baselines for
fundamental company evaluation measures needs to be formed as an initial point. Such an
evaluation helps to guarantee that gains are suitably credited to developments impacted by CRM
system instead of other dynamics. For example, improved cross-selling price reductions and
consumer pleasure evaluation can be used by Woolworths in the return on investment (ROI)
examination for a project. However, comparing actual evaluation in order to establish metrics
will enable the company to determine whether there proposed CRM innovation strategy is
effective and the way it will generate utmost efficiency.
Principle 4 Consider Total Cost of Ownership
Enterprise function software costs can be exorbitant to a number of companies as the
majorproportion of cost are ‘upfront’ and license fees product, services and induction. All of
these however are incurred before the software illustrates measurable and evaluative
businessoutcomes. However,organisations typically estimate the expenditure in the first year,
whichare usually over 60% of the overall project expenditure16.For successful management of
cost expectations over time, it is essential for Woolworths to analyse the total cost of ownership
and conduct with the distinct perception of all the overallstrategic expectations for the CRM
16 Elena, Cerchia Alina. "Social Media–A strategy in developing customer relationship management." Procedia
Economics and Finance 39 (2016): 785-790.

10LEADERSHIP IN BUSINESS
innovation project.
Principle 5- Choosing suitable partner
Efficiency seeking a CRM solution that suits a company's needs and demands is one of
the essential features and determinants for establishing a CRM strategy. Implementation
andsupporting a CRM system is further identified as a vital and sizeable project along with
thefactors, which in its achievement must be extended beyond the method to the CRM
Companywith along with the variety of sustaining services they provide17.However, while opting
for a CRM solution it is typical for companies like Woolworths to focuson preliminary
implementation18. However, it is also important for the company to think aboutexposed
implementation needs as well.
1.5
Brainstorming-This process primarily involved engendering a substantial number of solution
for a particular idea with a significant focus on the series of Ideas generated by the innovators in
the organisation. It is noted that in the process of brainstorming there can be identified no
evaluation of ideas19. This would lead employees in Woolworth’s to offer their ideas without any
ambiguity and fear of criticism.
Mind mapping-this process is referred to as a graphical technique for imagining
connectionsbetween various sections of Information and ideas. In suchprocess each fact or idea
is documented and then linked by ideas to its minor or major factor idea by building an important
17 Magnusson, Peter R., Erik Wästlund, and Johan Netz. "Exploring users' appropriateness as a proxy for experts
when screening new product/service ideas." Journal of Product Innovation Management 33, no. 1 (2016): 4-18.
18 Frow, Pennie, SuviNenonen, Adrian Payne, and KajStorbacka. "Managing co‐creation design: A strategic
approach to innovation." British Journal of Management 26, no. 3 (2015): 463-483.
19 Kalargiros, Emmanuel M., and Michael R. Manning. "Divergent thinking and brainstorming in perspective:
Implications for organization change and innovation." In Research in organizational change and development, pp.
293-327. Emerald Group Publishing Limited, 2015.

11LEADERSHIP IN BUSINESS
network of relationships.
Transparent evaluation of ideas-Regardless of the form of Ideas being evaluated
Woolworthsmust significantly strive to make the assessment of Ideas through at most
distinctiveness among the decision makers and employees participating in the ideation. These
metrics are used forassessing ideas must be aligned with Woolworths strategic as well as
practical priorities. Transparent evaluation of Ideas will play an integral role for sustaining
employees’accountability and focusing on the two importance of company’s business procedure.
Evaluation criteria method- Organisations like Woolworths must intend to collaborate between
idea evaluation and use simple evaluation criteria like two dimensional effort scale to avoidany
kind of complex ideas which are likely to bias evaluation towards critical ideas 20.
PILOT PROGRAM PLAN:
Scope of CoffeeVille against the seven dimensions of strategic innovation
Cofeeville is a small café in Melbourne, Victoria, serves several types of coffee an coffee
related beverages with consumer selected snacks. The manage their innovation process by
allowing all the workers to share their value, knowledge and ideas. The company has weak
strategic alignment because of their weak brand recognition and absence of Corporate Social
Responsibility activity. The organization promotes the use of technological advancement in their
work process and always keeps their assists adequately for investment that gives them the ability
to take action. However, in workforce management system the organization lacks some
disciplined approaches that hinder the ultimate business growth.
Description of the pilot program:
Operation:
20 Roberts, Jess P., Thomas R. Fisher, Matthew J. Trowbridge, and Christine Bent. "A design thinking framework for
healthcare management and innovation." In Healthcare, vol. 4, no. 1, pp. 11-14. Elsevier, 2016.