Analysing Innovation & Commercialisation in Online Grocery Retail

This report explores innovation and commercialisation within the online grocery retail sector, focusing on strategies employed by companies like Tesco and Morrison. It discusses how these organizations source and foster innovation, including e-retailing, cashless payment systems, partnerships for drone delivery, and the introduction of plant-based products. The report analyses different types of innovation, such as product, technology, and business model innovation, and evaluates the success and failures of these initiatives. Recommendations are provided for innovative products and processes for a new online grocery retailer, including the introduction of healthy food columns, voice ordering systems, and bridging the online and offline shopping experience. The report also considers funding channels, intellectual property protection, and an action plan for innovation implementation, emphasizing the importance of adapting to changing consumer needs and technological advancements.

Unit 8 Innovation and
Commercialisation

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Discussing the ways in which different organizations sourced and foster innovation...............3
Analyzing the different types of Innovation and their processing...............................................4
Recommending innovative products/processes for a new online grocery retailer......................7
Various funding channels available to the recommended innovation, and suggestions along
with the analysis of business value for potential investment.......................................................8
Recommendation on Knowledge and intellectual property tool..................................................9
Action plan for the innovation along with the method to protect them.....................................10
CONCLUSION..............................................................................................................................11
REFERENCES..............................................................................................................................12

INTRODUCTION
Innovation in the business mainly aims in defining about adapting changes and serving
for fulfilling the needs of the consumers in the target market. Morrisons is mainly recognised as
the multinational retailer for serving wide range of food and non-food products to wide number
of consumers. This project report provide details of the innovation for the Morrison and Tesco
while selling their products in the online and offline stores o the consumers. This report provide
details about discussing the ways in which the organisations mainly foster innovation. Further
differentiating types of innovation and their processes in the companies. Also recommending the
innovative products and processes for the online grocery retailer. Further more, suggesting the
funding channels and tools which helps in protecting the intellectual property rights. Lastly
explaining the action plan for the innovation supporting with the methods for protecting in the
environmental context.
MAIN BODY
Discussing the ways in which different organizations sourced and foster innovation
Innovation is mainly defined as the process which helps which uses the new ideas as to
produce the products and services for fulfilling the needs and wants of the consumers while
serving in the dynamic market. As in the supermarket of UK, Tesco mainly fosters innovation by
e retailing and adopting the cash less payment systems. Also the company is mainly partnering
with the Manna. The main reason for partnering with Manna as for he;ping the consumers to get
what they need and trailing the drone for delivering the grocery products to the consumers in the
two towns of Ireland. In this the consumer mainly pay order from the apps which results in
delivering the products in minutes (Ortiz-Villajos and Sotoca, 2018). more over, This services is
mainly more convenient, faster and preserves the environment. Also, Tesco is mainly partnering
with the wicked kitchen, their main mission for innovating the new products. With introducing
more than 150 products in the company which are vegan and suitable for the plant based it
consumers in the target marker.
Another examples is the john Lewis partnership mainly help in the pandemic by
digitizing their services with developing the new products for attaining success in the future. Due

to the pandemic it digitalis its all the systems for staying up to adapted with the innovation in the
dynamic market (Lüdeke‐Freund, 2020). In these time it mainly shifted its stores to the online
ways and restricted to operate its physical stores. Also, as by making the use of cashless payment
systems with implementing the use of mobile phones at the point of sales in their stores. Further
by shifting the whole shopping experience into the three minute deign tool helps in testings the
styles and designs.
Morrison mainly operating and serving wide range of products to the consumers. With
adapting the trends and changes, the company is mainly innovating and by working hard for
fostering the innovation with delivering the products by satisfying the needs of the people. With
developing the new food boxes and adapting the online delivery slots for servings the products
during pandemic. The company is mainly sourcing innovation by using the fresher tech helps in
easily ordering and carrying out the jobs by enabling the self checkouts. Also using the google
communities and VLOGS for staying in touch with the employees. Further more, with using the
UX and UI designers, the UX first way mainly helps in producing the new scanning options and
shopping apps which helps in better responding to the pandemic time. More over, the company
mainly introduced the plant based products and new category of processes which helps in
attracting the consumers to purchase the products by using the online means.
As the innovation in the company is sources by adapting changes from the environment
and cultures. With altering the range of products mainly helps in serving wide range of vegan
and organic food products to the consumers (Gurzawska, 2021). Morrison also adopted
established program for wellness of their employees by advising the individuals to eat healthy
and stay fit. Further more, The company mainly partnered with the blue yonder the artificial
intelligence provider which mainly helps in optimizing their replenishment and automate the
process of ordering.
Thus, in Morrison the innovation is successfully developed and embedded for serving its
consumers by adapting the self checkouts, adapting the changing needs and wants of their
consumers and widely using technology for serving in faster and convenient manner (Edwards-
Schachter, 2018). Also, the company is mainly providing discounts, offers and vouchers for
embedding the process of innovation and attracting the consumers for purchasing the products
being offered and introduce by the company.

Analyzing the different types of Innovation and their processing
The different types of innovation mainly provides the details which helps in gaining the
different outcomes. Different types of innovations are mainly as follows:
Product innovation: This innovation in the company mainly takes place by introducing the new
range of the products in the market as for improving the performance with serving the
consumers.
For instance in Morrison, it is mainly innovate different products as per the needs and
wants of the consumers to serve more organic and vegan products in nature while adapting the
changing need and demand of the consumers in the dynamic market (Turnbull, Slow and
Richmond, 2019). For this the company is mainly doing the machine learning investments which
helps in optimizing its ambient and introducing long life of the products and serving with the
best quality in nature to the consumers in the dynamic market. more over As with innovating
more of the vegan based products, sugar free and serving to the health conscious and diet
consumers mainly helps in attaining the profits.
Technology innovation: In this new technologies are mainly being used and adapted in the
company for easily processing and producing the products and adapting the new technologies
mainly helps in serving the consumers needs and wants.
As in Tesco, the company mainly adapted the technical innovation in its business and
their operations. As by adapting the technology and embedding the self checkout options helps in
reducing the time and cost being occurred. With shifting the offline stores to the e retailing
mainly helps in serving the consumers in more convenient manner (Bacinello, Tontini and
Alberton, 2020). With transforming the operations in the digital manner mainly hep in servings
and catering the needs of the consumers in the dynamic market.
Business model innovation: In the dynamic and changing market the organizations mainly
innovate the business models as by leading and creating the new delivering range for attain the
consumer value.
As for instance the john Lewis mainly adapt the business model innovation, with this
partnering mainly helped in building the new products, services and providing better experience
with using different methods of working (Expósito and Sanchis-Llopis, 2019). This mainly helps
in responding quickly to the changing market opportunities and the consumer preferences.
Further more, other types of innovation are mainly as,

Organization innovation: When the organizations mainly share their resources and the assets
takes place of the innovation in the exiting market.
Process innovation: As innovating the processes mainly for improvising the efficiency mainly
helps in fostering the production, delivering the services and better interaction with the
consumers while serving the product in the dynamic market.
Networking innovation: As by using the ICT in the firms and companies mainly results in
innovating the services, which results in creating extra value.
Consumer innovation: Adapting innovative concepts and the processes mainly helps in
engaging and retaining the exiting consumers in the dynamic market.
Therefore, the different types of innovation are mainly adopted in the Tesco and
Morrison for fostering their processes and fulfilling the demand of the consumer in the target
market.
Further more, the innovation adapted by Morrison and Tesco is being successfully
processed as during the time of pandemic both the companies mainly shifted their operations
from offline to online serving of the products. Also with using the digital technology as the
social media mainly helped in promoting the products and services at the time of restrictions
being imposed by the government. As by transforming the offline stores to online by Morrison,
wide diversifying the online services and home delivery to the consumers mainly helped the
company to retain their loyal consumer market (Kahn, 2018). Whereas in Tesco, by partnering
with Manna mainly helped in servings the groceries by using done and helping the consumers to
get what they want by placing the order through the website and using apps. Also, the plan based
partnership done by the company mainly helps in introducing wide range o vegan products
which mainly helped the company to support the demand and preferences of the consumers.
Success and failure of innovation
The innovation adapted by Morrison is successful in nature, as innovating the new
products by adapting the new market trends tends to serve and increases the consumers base for
the company in the dynamic market. As by investing into fresher tech and the machine learning
investments mainly done for innovating the products in the company and serving the consumers
with the vegan and more organic range of the products in the highly changing market
(Geissdoerfer, Vladimirova and Evans, 2018). Also, in the Tesco the technical innovation during
the pandemic and transformation made for serving more than 150 vegan products to the

consumers mainly helped in attaining success by providing the home deliveries to the consumers
of the products being manufactured for the consumers.
Recommending innovative products/processes for a new online grocery retailer
For the online grocery retailing, as by innovating different products and the processes
mainly helps in serving and adapting the interest of wide range of consumers in the target
market.
 It is been suggested for the Morrison as for moving in the online grocery market It must
focus on the innovation by introducing the new products and processes in the dynamic
market. As by introducing the healthy food column option on the online website and
apps. This column will mainly display the list of newly launched and the vegan products
in the different categories on the website. This product innovation in the online websites
mainly helps in attracting the health conscious consumers. Also enabling the voice
ordering system in the app and the website mainly helps the consumers in ordering
certain products by putting less efforts in searching the whole app and website for the
products (Digital & Innovation, 2022). Further more, in analyzing the risk and benefits
for adapting these products and processes in the retailing online mainly defines that this
process is risky in nature as it require high range of funding for enabling the voice
ordering option in the websites, but enabling this processes it helps in successfully
adapting and serving the consumers with addressing their needs and want in the dynamic
market. Also, these processes are mainly helpful for solving all the difficulties being
arised while searching for the particular food and no food options on the website and
apps as it includes the diverse an vast range of products being served by Morrison.
 Further more it is suggested for Morrison as for the online retailing as bridging the
online and offline shopping experience and tracking the history, this enable the
consumers to identify the products are available or not. As the shoppers must be fully
informed about the purchases which helps in taking the informed decisions and making
easier to buy the products. further more, As in the current era, consumers mainly check
the products availability. with implementing these all processes in the Morrison mainly
helps in receiving the notification via app and mail. This benefits the company in driving
sale of the products being produced. The risk and benefit for adapting these processes
helps in achieving the set targets of the company with minimizing the efforts to engage

the consumers for purchasing the products. Thus, all these processes helps in gaining
good returns and also helps in easily achieving the targets with engaging the loyal
consumers to choose the products being offered.
Various funding channels available to the recommended innovation, and suggestions along with
the analysis of business value for potential investment.
There are various funding sources available to the organization which can utilize to back
its innovation financially. Let's understand each method in detail.
Crowd funding: it is a method of financing the business where money is raised from public in
general. People contribute towards a cause or business idea in random amounts which can be
small or big amounts. This method does not create any liability in any form as these people
contribute without any expectation of repayment. Yet this method requires due advertisement for
the fund-raising event and public must be made aware of the need for money (Estrin, Gozman
and Khavul, 2018). And in some scenarios it generates a sense of false validation for the business
which us a drawback.
Bank loan: It is a funding method where Morrisons can take loan from the bank against the
repayment of the instalments in the pre specified durations which will include both principle and
interest money. It is the traditional method of taking funds for the business (Brown and Lee,
2019). It is well trusted and there is not interference of bank in the operation of the business. Yet
the rate of interest is very high and in case of failure of repayment of the instalment there are
serious repercussions.
Angel finance: angels are a group of investors who invest money in a business which has
potential to be profitable in the future. These investors seek high return in terms of shares in the
business. It is a high risk high potential for the investors. Negative side of this method is the
dilution of the equity of the business. And there is also control and interference if the investors in
the business operations (Harrison, Bock and Gregson, 2020).
From the above given options it can be said that Morrisons is large scale organization and
even the latest innovation plan will cost company huge budget and this will require a budget of
around £200,000. This is a huge amount which is inclusive of various expenses like selling,
research and development, advertising, marketing, promotions, Production, manufacturing,
supply chain etc. hence the most suitable method for the company is taking a bank loan which
will benefit the organization by providing the funds, no interference in operations etc. other

option of funding are not much suitable given the fact that the equity of the company must not be
diluted at any cost as it is already listed and it will be a lot of work for the company to re-
evaluate the equity. Also, taking a loan will requires to systematically evaluate the business
process and undergo effective innovation plan.
Recommendation on Knowledge and intellectual property tool
Knowledge and intellectual property tool are vital in order to protect the organic products
which are offered to the customers by the business. The ingredients and component they used
and the process to prepare diet conscious products can be easily stolen by the competitors in the
market place (Rozek, 2019). Therefore, in order to protect the specific product ideas of the
business, the following options of tools of Intellectual property are available to the business:
Patent: patent is a monopoly which is granted by the government which enables business to
protect its products and process which have lead to the innovation and new ideas. There are
several benefits and drawbacks of the same (Knechtel, Patnaik and Sinanoglu, 2019). Benefit of
patent is its simplicity to be commercialized and gives an exclusive right of the patents which
makes business run smooth operations. Yet a disadvantage is it that it is difficult to acquire and
expensive as well. And also it gives limited time to deal with the infringers which is a
disadvantage.
Trademark: it is a tool which is used for the services and goods which are considered as words,
phrase, symbol or a combination of all these which enables customers to recognize the business
in the competitive market. It acts as the protection tool for the recognition of the business by the
consumers. Advantage of this is that I is cost effective and is valid for a period of 10 years. And I
also protect the identity of the brand in competitive world. Drawback of it is that inability of
altering the class of trademark.
Copy right: it is a tool for the protection of the intellectual property which protects the
originality of the work and expression of the business owners. It provides the exclusive right to
the owner to print, use a work. Benefit of this is the public recognition of the ownership
regarding the use and safety against the infringers. Drawback of copy right is limited duration
and dissemination. Also, it incurs high cost (Prazmowska, 2020).
Recommendation:
As per the above analysis of various intellectual property tool, it is suggested that client
should specifically adapt patent for its innovative business idea. It is due to the fact that patent is

one of the most trusted intellectual property to protect innovation. The business idea of organic
items is highly protected from manufacturing, importing, copying and selling by the competitors
without the permission of the client. However, it is expensive yet with the help of this company
will be able to protect the technique process and its innovation which is vital for the business.
Therefore, it is being recommended to the client business to adopt patent as an intellectual
property for the protection of the innovative idea.
Action plan for the innovation along with the method to protect them
The following action plan will be followed by the client to establish innovative products
like organic items in the UK online grocery market. It is drafted in 5 crucial stages. Let's
understand each in detail.
Step 1 Setting SMART Goals: the very first step is to set the SMART goals which stands for
specific, measurable, achievable, relatable and time bound (Van Gelderen and et.al., 2019). Let's
understand it in detail.
 Specific: To enhance the customer retention of the business and increase sales in the
online market which can improve the financial results of the business.
 Measurable: customer base of the business must be increased by 10% and sales must be
increased by 7%.
 Achievable: in order to achieve this company will hold special marketing campaign and
launch organic products in UK online grocery market.
 Relatable: as Morrison's goal is to boost the performance of the business, launching
organic products will be highly relatable for the same.
 Time bound: this aim of the company is allotted a time line of 9 months to look upon the
achievement of the goal.
Step 2 Creating list of actions:
 Creating precise business plan: a detailed business plan is essential for the innovative
products as this will guide the entire team on what needs to be specifically done in order
to achieve the goal of the organization. As this will be helpful in tracing the amp of the
overall business activities.
 Deciding the funding sources: as decided earlier taking the bank loan as funding source
will be the best option and same will be taken from the bank of England. For the same

parer work must be started and sorting of the business value which will be required by the
bank is necessary.
 Inventory management: just in time which is an effective method of inventory
management will be adapted by the company which will comprehensively manage the
production output of the business as effective management of the production is vital to
the entire business process (Schepis, 2020).
 Supply chain management: establishing effective networks to sell the products in the
country is very crucial. For an online grocery selling market various inventory houses or
ware houses are important.
 Marketing campaign: designing an effective marketing campaign which reaches to the
potential customers and increase the customer base in the market. For this various modes
will be used which can enhance the promotion of the product in the market.
 Intellectual property tool adaptation: With the assistance of patent IP tool, business will
defend its business from the competitions. This will help to maintain the uniqueness of
the products and process in the business as this will help stay competitive.
Step 3 Setting timelines: all the business activities which are designed for innovative products
must be completed within a set period of 9 months as it has been duly forecasted that 9 months
will be enough to conduct the same.
Step 4 Designate resources: there three type of crucial resources which will be required for the
fulfilment of the gaols. Such resources are financial, human and physical. The loan of amount
£50000 will be taken from the bank of England.
Step 5 Monitoring the progress: To monitor the business progress of the actions taken by team
to offer successfully innovative products in UK online grocery market, the sales rate and
customer retention rate on social media platform will be monitored over the duration by using
customer foot fall on online site, customer queries for the products etc. will be considered.
CONCLUSION
The above report of innovation and commercialization has comprehensively analysed the
process a business has to go through for the innovative aspect of the business. Report has
established various ways in which organization sources and foster innovation using important
examples. Further different types of innovation and how they are processed in the organization
has been elaborated. Also, funding methods which are available for the backing the innovative

products has been depicted. At last different tools for intellectual property protection and action
plan for business has been illustrated.

REFERENCES
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Online

Digital & Innovation.2022.[Online]. Available
through:<https://www.morrisons.jobs/our-teams/teams-head-office/digital-innovation>