Marks and Spencer Innovation Report: Business Strategies

Desklib provides solved assignments and past papers to help students succeed.

BM627
Managing Innovation in Business
CW1
Student Name:
Student ID:

Executive summary
This report is based on the company named as Marks and Spencer Company which is one of
the most leading companies. This report includes an analysis of the company by comparing
with several companies. There is a discussion about the company progress from past last
year; about the revenue which is over the period of the 3 consecutive years. This company
has a strategic business environment that has the depth of SWOT analysis which will make
the company more enhance for the development. The company deals with the risk which is
overcome by the company and that is present. This includes the force of the supplier to
bargain and the customer power for bargain. This company suffered with economic problems.
For example:they get affected by a price because some sort of discount is offered by the
competitors for increase the profit and growth. The high-cost structure also has disadvantages
sometimes. There are clothes that have to cater to new segments that are interested in green
and organic brands to push. This consists of the many technical factors which have the media
society which is present online and placed in capitalizing form and this provides the very
good online or E-commerce in which retailing of the products included. The future scope of
innovation and technological advancement in the company Marks and Spencer has potential
to gain greater competitive advantage due to higher application of artificial intelligence and
machine learning. The future scope in 2020 and beyond for Marks and Spencer has a higher
endeavour and expansion possibility. This report also focuses on the innovative requirement
in the retail company Marks and Spencer and also sheds light on the future requirement of
innovative capabilities in the company. These areas have been discussed with details keeping
the retail company Marks and Spencer in mind.
1

Contents
Introduction................................................................................................................................3
The Future of the Industry 2020 and Beyond............................................................................3
Building the Future Innovation Capabilities for the Organization.............................................5
Conclusion..................................................................................................................................9
References................................................................................................................................11
2

Introduction
In this report, there is description about Marks and Spencer Company which involves the
number of people visited in the shops present in all over the world. This company provides
clothes or wearable things for men's and women's, kids and also provides food, beverages,
and wine. Marks and Spencer also faces the risk that can be a reputational risk or the
operational risk. There is regarding the bargains power, which deals with the supplier and the
customer. This is possible to make the prices down and offer the settlement between
purchaser and buyer. This provides the online shopping of each material for all age group and
also provides some sort of discount offer to their customers. There are some forces that
include the Marks and Spencer like bargaining, which can be done with the supplier of the
customers this provides the substitutes. There is the use of SWOT analysis. The company
also concerns about environmental issues. The report shows the history of the innovation of
Marks and Spencer along with its present capabilities of innovation. The report will show the
future of the Industry 2020 and beyond. In addition, this can be seen that report will also
shown the Organization Innovation Requirements 2020 and Beyond that. Moreover, the
report will show the future Innovation Capabilities for the Organization.
The Future of the Industry 2020 and Beyond
The retail industry has a vast future in expanding the industry beyond the limits that is
expected in the current generation (Beck, 2018). The generation that is yet to come with its
new set of technologies and applications, is the generation of new technology and
implementation. This new set of trend and technicalities that are accompanied in the new
future industry of retail companies has provided the industry of retail market and expansion a
higher and superior platform in order to reach out to various consumers and industries. The
new generation of retail industries with regard to the multinational retail company Marks and
Spencer has provided a huge set of scope for the new generation to utilize the application of
various new trends and methods (Dunbrack et al., 2016). By the year 2020, the new set of
consumers has the potentiality to be the largest group of consumers on a global basis. The
new set of consumers in the generation Z in the year 2020 has a high potential for Marks and
Spencer to achieve higher competitive advantage in the market sphere. The technological
advancement is the highest rate of advanced leap that the retail company of Marks and
Spencer is supposed to gain profit upon. The retail industry of Marks and Spencer has a
higher level of utilizing transactional benefits for customers with the help of high end
3

technology. The new consumers visiting the retail stores are going to witness high
technological advancement and this can also affect the cost cutting trend of the products. This
reasonable deal of products in the retail company of marks and Spencer provide a higher
scope for the company to gain highest competitive advantage (Fitzpatrick et al., 2017). The
market of 2020 and beyond therefore has the potential to attract higher rate of loyal
consumers. This future trend can be amplified by the systemization of artificial intelligence in
the stores of Marks and Spencer that can help the consumers as well as the company. The
artificial intelligence equipments have the capability to predict future scope of the company
and can help in easy manufacture of raw products in the retail industry. The AI intelligence
has the future scope of providing a huge market expansion for the company, with a potential
exchange of labour in the area of marketing (Kowalkiewicz et al., 2017). This can however
affect the employment rate in the year 2020 and beyond and can also reduce human effort and
labour. The advancement of machine learning has a huge scope for the industry of retail and
also for Marks and Spencer to help the company gain higher profit and customer retention
(Jones, P. and Comfort, 2019). The procedure of manufacturing and raw product
development is also known to have a higher rate of advancement due to the implementation
of high end technologies along with artificial intelligence in the company Marks and Spencer.
These technological advancements in the year 2020 and beyond are functional in gaining a
higher prospect in the time to come and expand the market with higher profit.
The Organization Innovation Requirements 2020 and Beyond
Marks and Spencer company has significant future innovation capabilities. As per the
innovation of Richard Suhr (2019), the culture and business strategy of an organisation helps
in the process of implementation of different innovative technologies in the business process.
The Mangers of this company focussed to create a proper for implementation of innovation
processes in the organisation. The organisation focuses to implement various scientific
capabilities in the business process of the organisation. The Marks and Spencer company has
focussed to implement Robotic automation system in the organisation for increasing the level
of satisfaction of the customers. It has a research team for implementing future innovation
capabilities and that is why the innovative models can be easily implemented in the business
process of the organisation. According to Barrett et al. (2015), this organisation has the
capability of innovating its products by innovating and enhancing the products and services.
Thus this organisation shall focus in IT business partnership for implementing different
innovative technologies in the business process of the organisation. This organisation has also
4

the capability of implementation of artificial intelligence in its business process and it helps
to improve the satisfaction level of the customers by providing them quick services. As per
the opinion of Barrett et al. (2015), this organisation has the capability for innovation in the
process of development and designing of the products and it will help to improve the profit of
the organisation. Creation of a proper network of collaboration is very helpful for
implementing digital innovation practices in the organisation and it can help this company to
provide competitive edge over its competitive companies. As per the opinion of Barrett et al.
(2015), this organisation has the capability of implementation of different innovative
technologies in its business process like Artificial intelligence, cloud computing and other
technologies. This organisation is implementing the technologies related to data analytics for
improving its business practices as well as creates a strategic plan for implementation of
innovative technologies in the business process. As per the opinion of Nambisan et al.,
(2017), this organisation has been focussing to deploy various sophisticated tools and
software for improving the business strategy.
This organisation has been focussing to implement new digital tools for improving the
business strategies of the organisation. According to Barrett et al. (2015), the implementation
of various digital technologies in the business process of Marks and Spencer Company shall
help in improving the level of engagement of the employees as well as the customers. This
organisation has a proper business objectives and it can help to implement various innovative
capabilities in the structure of the organisation. As per the opinion of Teece et al. (2016), this
organisation focuses to communicate with the employees for improvement of the application
of various innovative technologies in the structure and process of the organisation. This
organisation has a proper talent base and it helps to build future innovation capabilities in the
organisation. Marks and Spencer company focuses to simplify the digital making process by
analysing the resources of the organisation.
Building the Future Innovation Capabilities for the Organization
Marks & Spencer has taken resort to incorporate effective strategies in order to enhance their
innovation capabilities. In terms of innovation capabilities, the company has incorporated
five year transformation plan for enhancing technological innovation capabilities. A new
Technological Transformation Programme has been announced by Marks & Spencer in order
to be enabled in becoming a digitally advanced business and deliver improved services in
order to enhance the experience of the customers. The Technological Transformation
Programme has been reviewed in order to find out loopholes as well as propose changes
5

accordingly. Following the review, several changes have been incorporated in order to enable
the company in building the innovation capabilities in terms of technology
(marksandspencer.com. 2018). The proposed changes are as follows:
 Creating an advanced Technology Operational Model for driving significant
efficiencies for forming ways for Marks & Spencer in exploiting new technology,
which includes adapting agile methods of industry
 Marks & Spencer has joined hands with Tata Consultancy Services (TCS), which is
known as one of the leading technological organizations in the world
 The technology supplier base of Marks & Spencer has been simplified as well as
consolidated. TCS will be transferred core suppliers by Marks & Spencer.
 The relationship as well as project management regarding specialist suppliers will be
controlled by TCS on daily basis
Annual Efficiencies of £30m will be delivered by Technology Transformation Programme
within 2022 and clear accountabilities as well as an effective customer centric approach will
be driven to technology services.
Due to the new Technology Operating Model, M&S Technology, which is prevailing will be
transferred under TUPE in order to become TCS roles. 30 individuals will engage in
individual conversation, which will be taken into account for future innovations. A small
team will be retained by M&S, which will be more commercially focused as well as more
technical, which lead to advanced technology for supporting the business. Another important
strategy of implementing the digital technologies in the organisation is through the process of
creating a proper digital investment strategy. This organisation has been focussing on
spending a significant amount of its budget for implementing various innovative technologies
in its business process. t has also the capability of implementing the technologies of artificial
intelligence and machine learning for improving the satisfaction level of the customers.
There are several requirements of innovation for Marks and Spencer and those needs to be
followed by the organization in the year 2020 and beyond that. Firstly, in order to innovate
properly, the organization has to hire the highly talented and skilful employee, who holds the
capability to think creatively (Harvard Business Review, 2019). Individual capability of
innovation can be beneficial to increase the organizational innovation capabilities. In
addition, it can be seen that various innovation and creative thoughts is necessary to get
competitive advantages. Apart from that, capable leaders are also needed in order to make the
6

innovation (Harvard Business Review, 2019). Leaders need to be capable also for thinking
several creative thoughts along with those innovative ideas.
The budgeting process of the companies, which are seen to be inherently conservative, which
is why it becomes difficult for the first line employees in inheriting funding in terms of small-
scale experiments. Besides, the innovation skills of the companies will also be wasted.
Companies emphasizing too much on the removal of risk will not be able to make launches to
the market. Moreover, due to lack in financial report will lead companies in loosing abilities
of coming up with effective strategies to mitigate the financial risks (Nambisan et al., 2017).
Hence, Marks & Spencer in order to fulfil the requirements related to innovation
requirements 2020 and beyond needs to come up with effective financial reporting in order to
fulfil the requirements. Furthermore, investments, incentives are needed to be affected for re-
engineering technologically. Global Supply Chains are needed to be optimized as well as
businesses processes are needed to be outsourced and huge investments are needed to be
made in IT tools, which are new. Marks & Spencer needs to devote towards retooling of the
management practise in order to innovate.
Marks and Spencer has come up with latest innovation capability that has put focus on the
projection of consumer investment, which will be helping the organization with an
involvement of digital capabilities. Moreover, this has been analysed that this organization,
Marks and Spencer ahs updated their variation based on the subjective theme of innovation
trend that will help to transform the digital information to encapsulate more than 2,000
technologies (Tan et al., 2015). Henceforth, this can be stated that the presence of evaluation
will transformation technology ash helped the industry to grow with further implementation
of technologies. Moreover, this ash been overlooked by the senior management of Mark and
Spencer that gaining partnership with Europe has helped the firm to deal with better
collaboration of investment by the consumers. Additionally, Mark and Spencer has gained
consumer investment and innovation firm, which has been a strong reason to encapsulate
successful factors. The concept of transformational technologies has helped Mark and
Spencer to develop the performances backed by the power of technological transformation.
This has been described by the senior management of Mark and Spencer, which will be
incorporating with the help of transformation of technologies. In broader context, this has
been contradicted that innovation strategy that belongs to the part of the organization, Mark
and Spencer will be gaining profitable results, which is associated with the help of latest
7

innovation. The organization has come up with the latest programmes, which is based on the
transformation of technologies and this can be applied through the means of specific growth
in the organization. Henceforth, this can be stated that Mark and Spencer have gained the
formation of Technology Operating Model and this has helped the organization to deal with
strategic development.
As opined by Watson et al. (2018), implication of Technology Operating Model, Mark and
Spencer has gained development based on the various types of innovation. On the other way,
it has been observed that through the help of Tata Consultancy Services (TCS), this
organization has gained authenticated medium of technology transformation that will depict
the development on the grounds of annual collaboration based on the result of c.£30m and the
amount has been estimated by the senior management of the organization. However, this can
be stated that the organization has been developed with the help of consumer centric and is
highly depended on the consumer’s preferences.
In the other context, this has been deals with the collaboration of transforming of technical
information, which is based on the encapsulating the successful factor in Mark and Spencer.
This has been gained in the form of one-off consumer and it has been perceived that Mark
and Spencer develop the detailing of the information tactics, which is pertained through the
means of Technology Operating Model (HAUSBERG and Leeflang, 2018). As an outcome,
this has been observed that the organization has shed light on the projection of transformation
of information and this will lead the organization to walk into the path of success. In this
regard, this can be perceived through the means of TUPE information that belongs to the
projection of information transformation, which will be developing the performance of Mark
and Spencer. However, this has been illustrated by Carter and Varney (2018), that implication
of transformation of technology helps the organization to boost the performances level and
throw tough competition to its rivals.
Innovation capabilities have been developed through the means of business strategies, which
comes up with the intention to enhance advancing nature in the organization. Moreover, this
can be stated as projection of higher range of potentiality in the organization. Mark and
Spencer has come up with an advancement that will be dealing with the projection based on
digital processing that has enlightened the level of performances and inversely has affected
the enlistment of activities in the organization (Gribbin et al., 2018). The organization can be
8

obtained with the help of developing innovation, which has put emphasis on the ambition to
attract more number of consumers.
However, this can be comprehended through the means of developing business model, which
tends to highlight the evolving scenario of Marks and Spencer. This has been come up with
the projection based on the reflection of Live Network system that will track the digital
ambition of Mark and Spencer to step forward in the international market (Bailey et al.,
2018). However, this can be stated that Mark and Spencer will be dealing with the
propagation of futuristic involvement and this will inversely affect the performance level in
Mark and Spencer. It has been collaborated through the means of specification that will be
binding the digitalization in terms of projecting the further development in Mark and
Spencer. Henceforth, this can be stated that implication of innovation capabilities will be
helping Mark and Spencer to establish successful factor and inbuilt better way to satisfy their
loyal consumers (Limaj et al., 2016).
Conclusion
In this assessment, there was company take Marks and Spencer which is the most leading
company in the clothing, food, offers, gifts, etc. The company is focusing on the recycling of
the products, plastics, etc., they are concern about the data of the customer and providing a
good atmosphere for their employees. They have to deal with all type of customers who have
the power to bargain. They have force for the economic issues which are solved by the
company. This company follows the SWOT analysis which is the most important for the
development of the organization. From the discussion, it can be also analyzed that Annual
efficiencies of £30m can be delivered by Technology Transformation Programme within the
year 2022 along with clearing the accountabilities as well as an efficient consumer centric
approach can be driven toward technology services.
In addition, the application of the Technology Operating Model is beneficial for Mark and
Spencer. In addition, this has helpful for the development of the business based on different
types of innovation. On the other hand, this has been focused that with the help of Tata
Consultancy Services (TCS), this organization has achieved authenticated medium of
technology transformation, which will portray the development on the grounds of annual
collaboration. Apart from that, proficient leaders are also needed in order to make the
innovation. Leaders require becoming capable also for thinking several creative thoughts
along with those innovative ideas. In addition, based on the outcomes of £30m along with the
9

amount has been estimated by the senior management of the organization. On the other hand,
it can be stated that the company has been developed with the assistance of consumer centric
and this is highly depended on the consumer’s preferences. Moreover, individual capability
of innovation can be helpful to enhance the organizational innovation capabilities. Apart from
that, this can be seen that different innovation as well as creative thoughts is required to get
competitive advantages.
10

References
Annualreport2015. (2015). [online] Available at:
http://annualreport2015.marksandspencer.com/M&S_PlanAReport2015.pdf [Accessed 8 Jun.
2019].
Annualreports. (2014). [online] Annualreports.com. Available at:
http://www.annualreports.com/HostedData/AnnualReportArchive/m/OTC_MAKSF_2014.pd
f [Accessed 8 Jun. 2019]
Bailey, M., Spencer, N., Smith, N., Aftab, M., Knott, C. and Sams, P., 2018, May. Framing
strategic value through design-led innovation practice. In DS92: Proceedings of the DESIGN
2018 15th International Design Conference (Vol. 15, pp. 1781-1792). University of Zagreb.
Barrett, M., Davidson, E., Prabhu, J. and Vargo, S.L., 2015. Service innovation in the digital
age: key contributions and future directions. MIS quarterly, 39(1), pp.135-154. Source:
https://www.misq.org/misq/downloads/download/editorial/616/
Bartleby. (2019). [online] Available at: https://www.bartleby.com/essay/Marks-Spencer-
Case-Operational-Strategy-and-Location-PKV4LC4K6ZYA [Accessed 8 Jun. 2019].
Beck, A., 2018. Moving beyond shrinkage: developing a definition and typology of total
retail loss. Security Journal, 31(1), pp.93-110.
Carter, A. and Varney, S., 2018. Change capability in the agile organisation.
Dunbrack, L., Ellis, S., Hand, L., Knickle, K. and Turner, V., 2016. IoT and Digital
Transformation: A Tale of Four Industries. IDC White Paper.
Fitzpatrick, B.D., Reichmeier, J. and Dowell, J., 2017. Back to the Future: The Landscape of
the Financial Services Industry 2020 and Beyond. Journal of Advances in Economics and
Finance, 2(1), p.41.
Gribbin, J., Spencer, N. and Bailey, M., 2018. A Rapid Design‐Led Approach to Innovation
Readiness: Advantages and Challenges. Design Management Journal, 13(1), pp.4-16.
Harvard Business Review. (2019). The 5 Requirements of a Truly Innovative Company.
Retrieved from https://hbr.org/2015/04/the-5-requirements-of-a-truly-innovative-company
HAUSBERG, J.P. and Leeflang, P.S., 2018. ABSORBING INTEGRATION: EMPIRICAL
EVIDENCE ON THE MEDIATING ROLE OF ABSORPTIVE CAPACITY BETWEEN
11