Innovation Management: Sainsbury's, Theories and Challenges

This report delves into the realm of innovation management, specifically focusing on its application within Sainsbury's. It begins with an introduction to the concept, highlighting its importance in achieving competitive advantage in a globalized market. The report then outlines the methodology used, followed by key findings regarding the role of innovation management in enhancing workplace productivity, improving customer sentiments, enriching competitive advantage, and optimizing operational efficiency within Sainsbury's. It further explores the challenges faced in implementing innovation, categorizing them into strategic, tactical, and operational levels. The report analyzes relevant innovation theories, including Schumpeter's Theory and the Open Innovation Model, illustrating their implications for Sainsbury's. The conclusion and recommendations provide insights into how the organization can leverage innovation for sustainable growth and market leadership. The report emphasizes the critical role of innovation in today's business environment, offering valuable insights for students and professionals interested in business development and strategy.

Innovation Management

Table of Contents
a) INTRODUCTION.......................................................................................................................1
b) Methodology ...............................................................................................................................4
c) Findings.......................................................................................................................................7
d) Conclusion and Recommendation ..............................................................................................8
REFERENCES..............................................................................................................................10

a) INTRODUCTION
The innovation administration signifies a procedure that help in bringing innovation related
to launching innovative product, ideas policies into current market place. This report is totally
depending upon the topic named as “Innovation management”. In present era of globalisation,
there is increase in level of competition, level of challenges between organisation which imposes
a direct impact on company and focuses on achieving competitive edge over rivalries at
marketplace. The innovation administration helps in company in increasing their brand image
and achieves sustainable growth and improvement in industry. The innovation administration is
determined as a significant factor for improving value for company. It assists in assessing macro
as well as micro environment factors that help organisation and achieving competitive advantage
over rivalries in the market. In reference of this report, the organisation is chosen named as
Sainsbury’s. It is determined as a well-known company which is located in UK. In addition to
this, current assignment is based on the role of innovation administration in international aspects,
implication of different theories of innovation that help in achieving position among rivalries
(Arrigo, 2018).
Role of innovation management and its effect on global organisation
For achieving competitive advantage, it is important for company to use various kinds of
aspects related to innovation administration within business organisation. Therefore, they focus
on analysing micro as well as macro environmental factor that help in achieving competitive
advantage over rivalries at marketplace. In addition to this, the organisation keeps under pressure
of multinational competition for administration of innovation. The organisation focuses on
conducting different kind of activity and functions at global level (Wang, Su and Guo, 2019).
Hence, the innovation is determined as an increment or enhancement in economy in current
market place. Apart from this, in respect of Sainsbury’s the launching of innovation into present
practices focuses on improving quality and also confronting different kind of issues and
challenges in an appropriate way. There are various roles related to innovation administration in
reference of chosen organisation that is going to be mentioned below:
Enhance workplace productivity this role in which management of innovation render
its functions of organisation that help in increasing whole performance for achieving goal in
timely manner. They focus on executing innovation in order to increasing innovative ideas in
relation to working style according to market demand. Through such kind of initiation, the

management team of Sainsbury’s focuses on transforming its subordinate into competitive way
who provides their contribution in respect of achieving goal as well as objectives in timely
manner. The main focus is to increase productivity in future period of time. In addition to this, it
is easy to handle operational level, managerial function in very smooth manner at international
level (Dangelico, 2016).
Improve customer’s sentiments: Herein, it is focusing on fulfilling need of its customer
in more appropriate way for increasing more and more profit. Their main focus of organisation is
to increase the engagement of employee in order to conduct different activity in an appropriate
way. The management team of Sainsbury’s focuses enhancing level of creativity between
subordinate in order to perform different activity in an appropriate manner. The subordinate
focuses on acquiring motivation and encouragement from different conditions related to work
that provide them overall efforts or contribution to manufacture superior quality goods and
services to its targeted user.
Enrich competitive advantage the organisation focuses on making appropriate for
contribution to implement or execute innovation in performing its function. It helps them in
acquiring superior skill and competent subordinate in order to achieve favourable outcome in
future period of time. In assistance of this, it helps in taking appropriate decisions that help in
achieving competitive advantage over rivalries at market place in global level.
Optimise operational efficiency this signifies the innovation means launching
innovative products as well as services within sector and that help in increasing performance
level of organisation. In context of Sainsbury’s by adopting innovation administration it provides
benefit to assess the market trends as well as taste and preference of its user. Furthermore, it also
helped organisation to assign resources at optimal way that help in increasing brand image
related to product that help in increasing efficiency or productivity level in future period of time.
From the above mentioned analysis, it has been assess the innovation administration aids
assistance to Sainsbury to perform their managerial as well as operation function during
particular phase of time period. By using this innovation, the management team of Sainsbury
focuses on hiring capable personnel that help in increasing market share in an appropriate
manner. According to this scenario, in present time the innovation is very important for success
and growth of business organisation. In assistance of this, there are various implications of
innovation that imposes direct impact on performance level of organisation that strategical,

operational as well as technical. In addition to this, it empower organisation to achieve
sustainable growth that help in imposing direct impact on different kind of challenges within
business organisation. There are various challenges which is assessed by organisation that is
going to be mentioned below:
Strategical
Resistance to change this is determined as a primary challenge which is confronted by
chosen organisation while implementing innovation within working culture during particular
phase of time period. There is a lack of engagement of subordinate in order to adopt innovation
in working culture. In this process, it is restricted to organisation from increasing their
productivity levels as well as sales performance in future period of time (Fei and Aun, 2019).
Ineffective strategy if an organisation focuses on bringing innovation, it is necessary to
make appropriate strategy during particular phase of time period. Therefore, the management
team of chosen organisation focuses on making appropriate strategy in order to enhance
capability or ability to satisfy the current need of an individual person that help in achieving
competitive advantage over rivalries in market (Voltan and De Fuentes, 2016).
Tactical
Ineffective communication in this level, the challenges faced by chosen organisation is to
manage innovation in an appropriate manner. There are various kinds of issues which is arise
within business organisation due to an ineffective communication such as misunderstanding,
confusion, conflict and many more that impose direct impact on overall profit and brand image
of company in front of customer at marketplace.
Lack of collaboration it is determined as other issue or problem which is confronted by
Sainsbury in order to bring innovation administration at global level. Therefore, due to lack of
collaboration it is restrict the organisation to enlarge its market base in an appropriate manner in
order to perform different activity during particular phase of time period.
Operational
Lack of resources the major challenges faced by organisation is bringing innovation
administration in current working culture as there is not any kind of production factors such as
money, technology and many more. And, it eliminates the whole productivity of organisation
and also lowered quality of goods and services which enforces negative effect on the brand
image and reputation of company in front of customer at marketplace.

Scarcity of raw material herein, the chosen organisation focus is on scarcity of resources
for bringing innovation at global level. Due to scarcity of resources it does not meet the need and
want of its user during particular phase of time period. It is necessary for them to analyse ability
of company in order to achieve the competitive advantage of over rivalries at marketplace.
Therefore, there are various challenges which is faced by business organisation in order to
conduct innovation administration at international level and achieving objectives as well as goal
proper manner (Galati, Bigliardi and Petroni, 2016).
Enriching communication process this process help the chosen organisation in executing
different processes related to organisation in order to generate or create all type of information
related to organisation in an appropriate way. By using this action, the management team of
Sainsbury focus is on making coordination with its subordinates that help in achieving growth in
timely manner.
Delegation of role and responsibility the other direction which is taken by management
team of Sainsbury is to determine capability of it subordinate that is depend upon delegate role as
well as responsibility. By initiation of such kind of action that empower organisation to achieve
favourable advantage in order to bring innovation within business organisation in particular
phase of time period (Van den Broek, Boselie and Paauwe, 2018).
b) Methodology
In current market, there are various numbers of competitive firms which implement
innovation for performing different functions within business organisation. In addition to this,
the innovation administration is very important for achieving competitive edge over rivalries at
marketplace. It is necessary to assess the internal or external challenges which are faced by
organisation in respect of branding during particular phase of time period. There are various
theories related to innovation administration of organisations that help in increasing sales in
future period of time. The management team of Sainsbury’s focus is on taking initiative in using
innovation administration theory for procedure of organisation that is given below:
Schumpeter’s Theory of Innovation
In this theory of innovation, the concept related to innovation is important for company
and that help in increasing investment level during particular phase of time period. Furthermore,
this theory signifies innovation that helps in modification in context of production, alteration in
industrial company, opening innovative market and many more. Therefore, the innovation is not

signifies invention but it also include the commercial application like needed raw material,
appropriate method, innovative source related to energy and many more. Herein, the first
approximation is connected with primary impact of innovative ideas that is used for job. In
addition to this, the secondary approximation is connected to the subsequent results that are
acquired from application related to innovators. In this theory, there are two types of stages first
approximation as well as second approximation which are going to be mentioned below:
First approximation in this level, it is start with economic system in which there is no
presence of involuntary unemployment. Therefore, the organisation focuses on analysing the
need of innovation in order to achieve goal as well as objective in timely manner. For achieving
this, the organisation focuses on different sources of finance like family, friends and so on that
help in increasing productivity level in an appropriate manner. The management team of chosen
organisation focuses on taking initiative to execute innovative ideas in working condition of
company that helps in achieving goal and objective in timely manner. For achieving these
organisations focus on performing their function in an appropriate manner in order to achieve
favourable outcome in future period of time (Hecker and Ganter, 2016).
Second approximation signifies the waves that have been created by past
approximation. Therefore, the main focus is to provide superior quality product and services to
its customer in order to satisfy them. The main purpose is to provide superior quality according
to the need of customer that help in increasing profit margin and sales in future period of time. It
is helpful in increase productivity in future period of time. In second approximation, the
customer focus is on expecting cost for enhancing in future that increases debts which can be
acquired durable products by its consumer. Such kind of this kind of approximation, it does not
meet the application of its user during particular phase of time period and that can result in
depression (Rudskaia, 2017).
Open Innovation Model
The model of innovation signifies the use of outflow as well as inflow of knowledge that
help in bringing innovation within business organisation. According to this model, it makes sure
that the company focuses on bringing innovative ideas in relation to its goods and services can
consider both micro and macro ideas. In addition to this, the model and theory is opposite to
traditional model as it involves inflow as well as outflow of knowledge for increasing internal
information and boosting market by using external information. It involve exchanging

information which is outside boundary of organisation and their main focus is to increase their
knowledge in respect of bringing innovative product within business organisation.
Apart from this, the innovation is determined as a more participative, more distributed in
context of innovation. It is considered as the superior way for assessing the macro knowledge
and considering different methods to bring innovative ideas. By bringing all innovation within
business organisation have a different advantage in order to conduct different task in an
appropriate manner. For example, the management team of chosen organisation focuses on
introducing car as well as mobile phones at this assists in reducing its cost as with this kind of
innovation the organisation focuses on bring innovative idea that is helpful in increasing sales
and profit margin in future period of time (Millar, Groth and Mahon, 2018).
Disruptive Innovation
The disruptive innovation was given by American scholar named as Clayton M. This study
focuses on bringing and improving innovative value network that help in achieving leading
position around the world. This model involves a small organisation with limited resources that
help in achieving success and growth in future period of time (Ritala, Kraus and Bouncken,
2016).
Such kind of innovation help the organisation in adopting innovative technology which is
used for providing services that is superior as well as best suited to its user during particular
phase of time period. Therefore, their main focus is to maintain superior relation with its user
during particular phase of time period.
This theory signifies that there are two types of innovation as well as technology in which
the company focuses on dealing with. Sustainable Technologies provide allowance to company
in enhancing improvement in its activities and function in an appropriate manner. In addition to
this, the kind of innovation implemented within business organisation in order to achieve
competitive edge over rivalries at marketplace. For example, as per this, their focus is on
adopting artificial intelligence in order to provide different types of services in an appropriate
manner.
Appropriate new model for chosen organisation after determining all this kind of theory
as well as model related to innovation it has been assess that it is the superior model that is
adopted by chosen organisation disruptive theory or model of innovation. It aids assistance in
increasing the whole experience level in retail sector that help in bringing innovative solutions

related to product of organisation. There are different type of innovation which is used by
company is disruptive innovation like self driven grocery store that can be adopted in order to
boost its goods by using online technology and increases experience level like installation or
launching of tablets, smart screen and many more which will be advantageous in future period of
time.
c) Finding
The innovation as well as administration determines various concern but they are
interconnected with one another as the organisation to execute a strategic decision in respect of
innovation within business organisation. The innovation administration is determined as a
systematic promotion related to innovation within business organisation as it includes tasks
related to planning, organising, monitoring as well as controlling and many more. It involves
that, there are different kind of innovative model that is adopted by business organisation to
bring innovative ideas for performing overall or whole functioning in an appropriate manner. For
example open innovation aids assistance to organisation in order to bring innovative technology
and innovation in performing its function during particular phase of time period. In addition to
this, the kind of innovation implemented within business organisation in order to achieve
competitive edge over rivalries at marketplace. For example, as per this, their focus is on
adopting artificial intelligence in order to provide different types of services in an appropriate
manner (Quintana-García and Benavides-Velasco, 2016).
d) Conclusion and Recommendation
Conclusion
On given assignment, it is assess that the innovation administration signifies a procedure
that help in bringing innovation related to launching innovative product, ideas policies into
current market place. This report is totally depending upon the topic named as “Innovation
management”. In present era of globalisation, there is increase in level of competition, level of
challenges between organisation which imposes a direct impact on company and focuses on
achieving competitive edge over rivalries at marketplace. The innovation administration helps in
company in increasing their brand image and achieves sustainable growth and improvement in
industry. The innovation administration is determined as a significant factor for improving value
for company. It assists in assessing macro as well as micro environment factors that help

organisation and achieving competitive advantage over rivalries in the market. In addition to this,
current assignment is based on the role of innovation administration in international aspects,
implication of different theories of innovation that help in achieving position among rivalries at
marketplace.
Recommendations
The management team of chosen organisation focuses on adopting innovative technology
for accomplishing goal as well as objective in future period of time. There is different kind of
recommendation that assists to business organisation to bring innovative solution in an
appropriate manner that is going to be mentioned below:
 Their focus is on conducting appropriate research in order to assess the innovative
solution which is adopted by competitive firm. If the organisation adopting technology
with extra features that is named as disruptive technology.
 The organisation focus is on bringing innovative ideas related to autonomous store in
which no need of Human Resource Department in order to perform different function in
an appropriate manner. This will assist in increasing the experience level related to
shopping of its user.
 In order to bring technological innovation it is significant for company to provide
effective training to its staff member in order to increase knowledge to during particular
phase of time period. In addition to this, it is necessary to provide appropriate training
that help in increasing skill which will be helpful in implementing innovation in an
appropriate manner. It is also helped them bring innovative ideas in more appropriate
manner.

REFERENCES
Books and Journals
Arrigo, E., 2018. Open innovation and market orientation: an analysis of the
relationship. Journal of the Knowledge Economy, 9(1), pp.150-161.
Dangelico, R.M., 2016. Green product innovation: Where we are and where we are
going. Business Strategy and the Environment, 25(8), pp.560-576.
Fei, T.L.K. and Aun, L.K., 2019. The Impact of Human Resource Management Bundles on
Innovation in Malaysia. Journal of Applied Economics & Business Research, 9(1).
Galati, F., Bigliardi, B. and Petroni, A., 2016. Open innovation in food firms: Implementation
strategies, drivers and enabling factors. International Journal of Innovation
Management, 20(03), p.1650042.
Hecker, A. and Ganter, A., 2016. Organisational and technological innovation and the
moderating effect of open innovation strategies. International Journal of Innovation
Management, 20(02), p.1650019.
Millar, C.C., Groth, O. and Mahon, J.F., 2018. Management innovation in a VUCA world:
Challenges and recommendations. California Management Review, 61(1), pp.5-14.
Quintana-García, C. and Benavides-Velasco, C.A., 2016. Gender diversity in top management
teams and innovation capabilities: The initial public offerings of biotechnology firms. Long
Range Planning, 49(4), pp.507-518.
Ritala, P., Kraus, S. and Bouncken, R.B., 2016. Introduction to coopetition and innovation:
contemporary topics and future research opportunities. International Journal of Technology
Management, 71(1-2), pp.1-9.
Rudskaia, I., 2017. A regional innovation system: formation features and growth areas (case
study: St. Petersburg). In Proceedings of the 30th International Business Information
Management Association Conference, IBIMA 2017-Vision 2020: Sustainable Economic
development, Innovation Management, and Global Growth (pp. 541-547).
van den Broek, J., Boselie, P. and Paauwe, J., 2018. Cooperative innovation through a talent
management pool: A qualitative study on coopetition in healthcare. European Management
Journal, 36(1), pp.135-144.
Voltan, A. and De Fuentes, C., 2016. Managing multiple logics in partnerships for scaling social
innovation. European journal of innovation management.
Wang, D., Su, Z. and Guo, H., 2019. Top management team conflict and exploratory innovation:
The mediating impact of market orientation. Industrial Marketing Management, 82, pp.87-95.