MGMT20132: AI Implementation and Innovation at MacDonald & Company

This report provides a comprehensive analysis of implementing Artificial Intelligence (AI) for MacDonald & Company, a real estate recruitment consultancy. It explores how AI can enhance customer experience, boost sales, and drive innovation and sustainability within the company. The report examines critical factors like customer desirability, technical feasibility, and financial viability before implementing AI. It identifies and applies various innovation tools and techniques, including Customer Journey Canvas, Value Proposition Canvas, Porter's Five Forces, Core Capabilities, Value Chain Analysis, and SWOT Analysis, to support its findings. Furthermore, the report offers a critical self-reflection on the development of personal innovation capabilities and practices related to innovation and sustainability, highlighting strengths and weaknesses. The report concludes with recommendations on how MacDonald & Company can successfully integrate AI into its business operations to achieve its strategic objectives.

Innovation and Sustainable
Business Development
Unit Number and Name: MGMT20132 Innovation and
Sustainable Business Development
Assessment Number:
Student Name and Student ID:

1
Executive Summary
The report helped in determining the effectiveness of implementing Artificial Intelligence (AI)
for MacDonald, which will help the company in enhancing consumer experience and boost its
sales and revenue. Moreover, it has been analyzed that before implementing such technological
trend the company is required to focus on customer desirability, technical feasibility along with
financial viability to understand the impact on the technology on business processes and
customers. Furthermore, it will provide a detailed understanding of the innovation tools and
techniques which will drive innovation and sustainability of the company. Meanwhile, the paper
will provide a critical reflection based on enhancing personal capabilities related to innovation
and sustainability.

2
Table of Contents
Introduction.................................................................................................................................................3
Logical and persuasive articulation of.........................................................................................................3
Problems to be solved..............................................................................................................................3
Problem insight........................................................................................................................................3
Portfolio of generated solution concepts..................................................................................................3
Solution selection analysis.......................................................................................................................4
Novel value proposition...........................................................................................................................4
Targeted customers..................................................................................................................................4
Competitive advantage and strategic fit...................................................................................................4
Logical and persuasive assessment of critical assumptions and uncertainties related to..............................5
Customer desirability...............................................................................................................................5
Technical feasibility................................................................................................................................5
Financial viability....................................................................................................................................5
Selection of the innovation tools and techniques.........................................................................................6
Application of the selected innovation tools and techniques.......................................................................6
Critical Self-Reflection................................................................................................................................8
Conclusion...................................................................................................................................................9
References.................................................................................................................................................10
Appendices................................................................................................................................................12

3
Introduction
The report will select MacDonald & Company and provide information in innovation strategies
of the company in alignment with its business functions. MacDonald is one of the leading
professional recruitment consultancy for the built environment sectors and real estate which was
established in 1994 with its headquarters situated in UK. It is one of the organizations that has
been influenced by the developments of the technologies and sustainability trends and motivates
innovation in the real estate sector. It will also choose six innovation techniques and tools and
discuss the effects of the implementation of the chosen innovation techniques as well as tools on
the selected company.
Logical and persuasive articulation of
Problems to be solved
Development of innovation and sustainability will help MacDonald in solving the problem of
estate management and facility management by offering a personalized, positive and high quality
experience to its consumers (Macdonald & Company, 2020). It will also solve the problem of
attracting low-income consumers by focusing upon its cost and effectiveness. Using
technological innovation will also help in enhancing organizational reputation in front of its
customers and staff members.
Problem insight
Innovation and sustainability will help in putting insight into the problem of facility management
and estate management by acquiring on online personalization which will create a customizable
drive-thru experience by providing a platform for smart contracts providing, gathering and
evaluating building data (Sousa-Zomer & Cauchick-Miguel, 2019). The use of technological
innovation will help in creating a sustainable and smart building and enhancing consumer
experience.
Portfolio of generated solution concepts
The solution will help in solving the problem by providing a dynamic digital platform board for
its customers which will start responding to the processes. The utilization of technology will not
only help in serving consumers but optimizing recruiting strategy.

4
Solution selection analysis
It will invest in digital technology to become the leading real estate company for the digital age
by making consumer’s life easier. The solution will help the business in focusing on network
problems and security (Evans et al., 2017). It will also help them in providing customers with
superior service.
Novel value proposition
MacDonald will utilize Artificial Intelligence (AI) for matching customers within minutes of
agents by approving a new listing. The company will use this technology trend to automatically
match consumer listings with appropriate listings. It will implement the technology through start-
up Apprente where the jobs of workers will become obsolete as a result of new technologies and
automation. The implementation of AI will make it easier for purchasers to direct towards the
property by gaining access to documentation and matching customers search criteria (Klumpp,
2018). The technology will provide efficiency and speed by extracting necessary information and
data from loads of paperwork. This innovative technological trend will prove to be beneficial for
the company in predicting consumer needs by understanding their demand and expectations.
With the implementation of this technology, the company will be able to boost its sales and
revenue and embrace digital innovation. In today’s context, consumers are treated incompatibly
across the desired business outcomes and channels. However, the implementation of AI will help
consumers of MacDonald to receive positive brand experience.
Targeted customers
With the implementation of this technology trend, MacDonald will target first-home buyers,
buyers between the age group of 25 to 34 along with active-duty military personnel with spouse
(Yang, Vladimirova & Evans, 2017). The target group will be both males and females from
urban and rural areas. It will target the customers from the low and middle-income group.
Competitive advantage and strategic fit
The utilization of AI within its business operations will help MacDonald in remaining ahead
from its competitors within the market. It will help the real estate business in differentiating itself
from its competitors such as Derwent London and Crown Estate, who are also using technology
trends to enhance the consumer experience (Breuer, Fichter, Lüdeke-Freund & Tiemann, 2018).

5
It will also help the company in attracting more customers from different segments and providing
a better experience than its competitors.
Logical and persuasive assessment of critical assumptions and uncertainties related to
Customer desirability
MacDonald will implement AI by focusing upon customer desirability by understanding the
needs and expectations of its customers who are known as a value proposition. It will analyze
different ways through AI will drive consumer value and automating resources for contruction
plans for subcontractors and contractors (Liew, 2018). Prior to the implementation of AI, the
organization will anticipate any possible bias or unintended consequences which may create an
impact on vulnerable consumers. As a result, the company will design ethical frameworks to
avoid facing any type of ethical issues while serving consumers. Focusing on customer
desirability will prevent the firm from facing reputational damage.
Technical feasibility
Technical feasibility plays a major role while choosing material for digitization. Prior to the
implementation of AI MacDonald will focus upon the physical characteristics of projects goals
along with source materials for apprehending, offering and storing the digital substitutes for
verbalizing the technical requirements (He et al., 2019). While implementing AI, the company is
required to consider whether its staff members possess appropriate skills sets which supports
digitization, search engine configuration, programming, and user interface design along with
metadata entry. Moreover, it will focus on data collection, which needs to be planned. It will help
in examining the research and development process with the help of technical evaluation.
Financial viability
It helps in determining the impact of technology such as AI on existing equipment, services and
capabilities. Without analyzing the impact based on financial, costs and volume reimbursement,
the company will not be able to make an appropriate decision regarding the procurement of the
technology. It company is required to prevent the revenues for the new technology (Kim, 2019).
It will help the company in analyzing the ability of the implementation of AI-based on its
fulfilment of the mission based on long-term financial perspective and attaining its operating
objectives. It is highly expected that a financially viable project will generate enough cash flow
to provide an adequate risk-adjusted return on its capital invested.

6
Selection of the innovation tools and techniques
Innovation could act badly and good for business functions if used appropriately. The use of
technology innovation helps the firm to develop effectively and efficiently (Ávila et al., 2017).
The innovation techniques, as well as tools selected for MacDonald, are as follows:
 Customer Journey Canvas
 Value Proposition Canvas
 Porter's Five Forces
 Core Capabilities
 Value Chain Analysis
 SWOT Analysis
Application of the selected innovation tools and techniques
Customer Journey Canvas
Figure: Customer Journey Canvas
(Source: Kennedy, Whiteman & van den Ende, 2017)

7
The technological transformation in MacDonald focuses on the consumer journey. The
consumers are attracted to the real estate business by taking ownership of the real estate
objectives. The real estate business responds instantly to its customers through social media
(Kennedy, Whiteman & van den Ende, 2017).
Value Proposition Canvas
Figure: Value Proposition Canvas
(Source: Calabrese, Castaldi, Forte & Levialdi, 2018)
It is one of the tools that could help to make sure that the products or services are positioned as
per the needs and values of the customers. MacDonald's is differentiated from its competitors
with its overall package of unique offerings as well as benefits provided to its consumers
(Calabrese, Castaldi, Forte & Levialdi, 2018). The value proposition of the firm are as follows:
 Financial ownership of the properties
 Efficient and fast service
 Provide openness to parties
 Greater access to spaces
 Quality construction projects

8
 Good pricing and value offering
Porter's Five Forces
Figure: Porter’s Five Forces
(Source: Loredo, Lopez-Mielgo, Pineiro-Villaverde & García-Álvarez, 2019)
Bargaining Powers of Suppliers – It is low since the options of suppliers are huge in this
industry. The real estate business has numerous options to source its raw materials.
Bargaining Powers of Buyers – It is high since the customers have the tendency to shift to the
other real estate firms if they offer better options.
Threat of Substitute Products – It is extremely high in the real estate industry since there are
numerous which offers the same services or products in the markets.
Threat of New Entrants – It is extremely high in the real estate industry since there are no
obstacles to enter in this industry although the new brands need to invest massively in this sector
(Loredo, Lopez-Mielgo, Pineiro-Villaverde & García-Álvarez, 2019).

9
Competitive Rivalry – It is extremely high in the real estate industry since the sector has
numerous influential and large firms such as Crown Estate and Derwent London.
Core Capabilities
The core capabilities of the company are the competencies as well as the resources used by the
company (Metz, Burek, Hultgren, Kogan & Schwartz, 2016). They include experienced and
trained employees, advanced technology, superior client services, and excellent locations and
franchising. They allow the company to bring value to its consumers.
Value Chain Analysis
Figure: Value Chain Analysis
(Source: Pieroni, McAloone & Pigosso, 2019)
Primary Activities
Inbound Logistics – The firm manages a large supply chain for sourcing its raw materials
brought from global distribution channels.
Operations – The firm operates in many countries in diversifying its portfolio.
Outbound Logistics – The distribution channels of MacDonald distributes as well as supplies
products and services across the world.

10
Secondary Activities
Technology – MacDonald supply chain have invested massively in technology (Pieroni,
McAloone & Pigosso, 2019).
HRM – Investment in human resources is significant for financial growth. The firm has 2.3
million employees by the end of 2019.
SWOT Analysis
Strengths Weaknesses
 The firm has a global presence across the
world
 The real estate business offer innovative
and diverse products and services
 Issues of construction arise from time to
time
 Difficulty to manage construction issues
since MacDonald's system heavily
depends on the construction projects
Opportunities Threats
 The firm serves quality resources as
per the needs of the customers
 The firm faces heavy competition in
the real; estate markets
Critical Self-Reflection
I got to know that we must conduct a rough evaluation of the innovation system by analyzing the
challenges faced by most of the organizations. It will help in managing innovation in various
ways such as in a more reliant, more open and collaborative manner by engaging consumers
(Wilson & Daugherty, 2018). This will help me in enhancing my capabilities by determining the
ways through technological innovation creates several benefits for organizations. Based on this
one of my major strength to move forward strategically by acknowledging the significance of
technological trends and able to do self-regulating valuation of the innovation procedures.

11
However, I also certain weaknesses, such as difficulty in determining the challenging set of
pressures related to innovation and help others to understand the basic aspects of innovation in
today’s competitive world. It is recommended that based on the innovation process and system,
individuals can enhance their self-improvement by focusing upon innovation discussion, which
will help in analyzing the common aspects related to innovation and sustainability. There is a
need to embed innovation practices by remaining up to date with the latest technological
innovations. Therefore, there must be a balance among existing and new practices to help in
building an innovation roadmap.
Conclusion
The report concluded that MacDonald is a real estate firm that desires to bring innovation in its
business for achieving a distinguished position in the real estate market. MacDonald will utilize
AI to gain access to documentation and matching customers search criteria. The company will
use this technology trend to make the facility management more organized. The influence of
innovation strategies on the position of the firm is described through innovation methods and
tools. They are customer journey canvas, value proposition canvas, Porter's five forces, core
capabilities, value chain analysis, and SWOT analysis.

12
References
Ávila, L. V., Leal Filho, W., Brandli, L., Macgregor, C. J., Molthan-Hill, P., Özuyar, P. G., &
Moreira, R. M. (2017). Barriers to innovation and sustainability at universities around the
world. Journal of cleaner production, 164, 1268-1278.
Breuer, H., Fichter, K., Lüdeke-Freund, F., & Tiemann, I. (2018). Sustainability-oriented
business model development: Principles, criteria, and tools. International Journal of
Entrepreneurial Venturing, 10(2), 256-286.
Calabrese, A., Castaldi, C., Forte, G., & Levialdi, N. G. (2018). Sustainability-oriented service
innovation: An emerging research field. Journal of Cleaner Production, 193, 533-548.
Evans, S., Vladimirova, D., Holgado, M., Van Fossen, K., Yang, M., Silva, E. A., & Barlow, C.
Y. (2017). Business model innovation for sustainability: Towards a unified perspective
for creation of sustainable business models. Business Strategy and the
Environment, 26(5), 597-608.
He, J., Baxter, S. L., Xu, J., Xu, J., Zhou, X., & Zhang, K. (2019). The practical implementation
of artificial intelligence technologies in medicine. Nature medicine, 25(1), 30-36.
Kennedy, S., Whiteman, G., & van den Ende, J. (2017). Radical innovation for sustainability:
The power of strategy and open innovation. Long Range Planning, 50(6), 712-725.
Kim, J. B. (2019). Implementation of Artificial Intelligence System and Traditional System: A
Comparative Study. Journal of System and Management Sciences, 9(3), 135-146.
Klumpp, M. (2018). Automation and artificial intelligence in business logistics systems: human
reactions and collaboration requirements. International Journal of Logistics Research
and Applications, 21(3), 224-242.
Liew, C. (2018). The future of radiology augmented with artificial intelligence: a strategy for
success. European journal of radiology, 102, 152-156.
Loredo, E., Lopez-Mielgo, N., Pineiro-Villaverde, G., & García-Álvarez, M. T. (2019). Utilities:
Innovation and sustainability. Sustainability, 11(4), 1085.

13
Macdonald & Company. (2020). Macdonald And Company. Retrieved 18 April 2020, from
https://www.macdonaldandcompany.com/macdonald-and-company#
Metz, P., Burek, S., Hultgren, T. R., Kogan, S., & Schwartz, L. (2016). The Path to
Sustainability-Driven Innovation: Environmental sustainability can be the foundation for
increasing competitive advantage and the basis for effective innovation. Research-
Technology Management, 59(3), 50-61.
Pieroni, M. P., McAloone, T. C., & Pigosso, D. C. (2019). Business model innovation for
circular economy and sustainability: A review of approaches. Journal of cleaner
production, 215, 198-216.
Sousa-Zomer, T. T., & Cauchick-Miguel, P. A. (2019). Exploring business model innovation for
sustainability: an investigation of two product-service systems. Total Quality
Management & Business Excellence, 30(5-6), 594-612.
Wilson, H. J., & Daugherty, P. R. (2018). Collaborative intelligence: humans and AI are joining
forces. Harvard Business Review, 96(4), 114-123.
Yang, M., Vladimirova, D., & Evans, S. (2017). Creating and Capturing Value through
Sustainability: The Sustainable Value Analysis Tool A new tool helps companies
discover opportunities to create and capture value through sustainability. Research-
Technology Management, 60(3), 30-39.
1.

14
Appendices
Figure: Use of AI in Real Estate business
(Source: Pieroni et al., 2019)