UGB 269 Innovation Management Assessment Report: Dynamic Capabilities

This report examines the theme of building and managing dynamic capabilities within the context of innovation management, using Tesco PLC as a case study. It explores the significance of dynamic capabilities, differentiating them from static technologies and emphasizing their role in organizational adaptability. The report details the methodology employed, focusing on technology transfer and innovation diffusion, including the application of Tesco's Clubcard innovation. It critically evaluates Tesco's technological advancements, such as the shift to online retail, implementation of digital solutions in stores, and the development of the Clubcard loyalty program. The analysis highlights the implications of these innovations, addressing challenges and demonstrating how Tesco has leveraged technology to achieve competitive advantages and improve customer service. The report also delves into Tesco's cross-organizational value network and its approach to talent management, emphasizing the importance of training programs and data transmission in enhancing its capabilities. The report concludes with a summary of findings and commercially viable solutions to improve innovation management.

UGB 269 Innovation Management Assessment
for2020

INTRODUCTION...........................................................................................................................1
MAIN BODY..................................................................................................................................1
1. Introduction of selected theme and emphasis its importance..................................................1
2. Detailed methodology of the analytical approach, demonstrating a critical understanding of
managing innovation and technology transfer theme..................................................................2
3. Critically evaluate the building and managing dynamic capabilities and implications...........3
4. Conclusions and commercially viable solutions......................................................................6
5. Findings...................................................................................................................................7
CONCLUSION................................................................................................................................8
REFERENCES..............................................................................................................................10

INTRODUCTION
Innovation management is a mixture of business cycle control, and organizational change.
This applies to creativity in technology, business method, marketing, and organisation
(Kupeshova, Lazanyuk and Kareke, 2019). The management of innovation requires a series of
tools that enable managers plus staff or customers to collaborate with a shared view of goals and
initiatives. Managing innovation allows the company to adapt to internally or externally
challenges, and to use its imagination to implement new concepts, processes or goods. This is not
limited to R&D, this includes staff or consumers at all stages in actively contributing to the
creation and distribution of an organization's goods or services. This assessment select the
Building and Managing Dynamic Capability theme and for this Tesco Plc selected for the better
understating which is UK based company and establish in 1919.
MAIN BODY
1. Introduction of selected theme and emphasis its importance
Dynamic capabilities are different from technologies that are static or at zero-level. These
were all systems learned which run throughout the business sector. An illustration of such a
method is constructing a production plant within the automobile industry. This is a well-defined
process, with judicial precedent and guidelines that exist. Teece compares zero-level skills as
"best practices" in a conversation with Strategy + Business. Functional capabilities also
concentrate on the organizational and strategic capability of the company. Dynamic capabilities,
by comparison are special. Lynda Gratton and Sumantra Ghoshal identify these as "classic
methods," frequently related to existing business models and procedures, making them
impossible to replicate, and allowing a company to create, extend and change.
Dynamic skills could also be distinguished from corporate actions on the actual business
operations of an enterprise (Brandl, Kagerer and Reinhart, 2018). In comparison, dynamic
capacity refers to "the capacity of a company to actively develop, increase, or change its
manufacturing capability." The basic principle of the firm's efficiency system is that strategic
advantages should be used to modify strategic short-term roles which can be used to build a
long-term competitive advantage. It is evaluating the diverse capabilities in the Tesco sense; it
means organizational versatility is what really applies to the group. It involves the ability to
understand and moulding challenges and opportunities, seize opportunities and maintain
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financial performance by enhancing, incorporating, obtaining and, in which possible,
reorganizing the business organisation's physical and human assets.
Tesco plc's digitalization encompasses certain embedded platform such as procedure,
trying to learn, new assets, transition of current properties, etc. Pick up the opportunity to boost
their efficiency as well as gross profit when the company's management enforces some changes
in its business operations in order to maximize the corporation's abilities or capacities to get
stronger productivity. Tesco follows the many changes leading to decreased overall sales, which
also minimizes revenue, so supervisors need to develop strategies with suitable solutions that
meet these difficulties. The active learning required clear communication between members of
staff, so that they could’s faster any strategy.
2. Detailed methodology of the analytical approach, demonstrating a critical understanding of
managing innovation and technology transfer theme
Methodology helps to transfer ideas into new products or service that creates value, or that
consumers pay for it. To be regarded inventions a concept should be reproducible at a cost
effective expense and must encounter a particular require. Innovation involves strategic
intelligence, innovation, and leadership execution in order to benefit entirely from products.
It encompasses all new companies being evaluated and the results items. In industry, creativity
also happens as the organization introduces advice to meet the desires and expectations of the
customer any more (Chatzoglou and Chatzoudes, 2018). The concept is implemented by the
Tesco, and is successfully handled by them. Tesco follows the efficient product principles which
are as follow:
Innovation diffusion is a scientific theory that highlights how modern technology and
many other breakthroughs are spreading throughout cultures around the world, from creation to
broader acceptance. The transfer of the innovative technology hypothesis tried to define how and
why it should be tried to adopt new information and techniques, with timeframes likely
broadening over long stretches. Whether innovations are communicated to all parts of society,
and how quickly dissemination or transmission happens are essential elements of the human
beliefs associated with innovations. This is critical to remember when rising selling volume.
The Tesco is applying club card creativity that includes provisions to its member of a club.
Apply this approach to this innovation which helps to analyze all market activity and manage
dynamic capacity. Factors that influence the pace of development transfer also include a
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combination of urbanization demographics within a social context, the level of social network
expertise, and the degree of industrial development. Human cultures are likely to have different
user-growth (Martínez-Costa, Jimenez-Jimenez and del Pilar Castro-del-Rosario, 2019). An
adoption rate is the rate at which people of a society take on a new innovation. The rate increases
of adoption for different forms of technology solutions vary. For instance, a human civilisation
may also have enforced the World Wide Web faster than it accepted the vehicle due to various
cost, accessibility and knowledge with technological advancements.
As the progress and variety of technical numbers increases, those linkages on growth in the
economy between infrastructures become particularly noticeable. In the certain situations,
organisations, laws and structures, and even the assumptions and preconceived notions on that
they are entirely based in danger of being redundant in certain conditions. Such risk is
strengthened by the fact that accelerated technical developments in Tesco are not always about
the quick production of new technologies and manufacturing processes.
The digital transformation of industrial technological innovation themselves is equally
important at vitally valuable. This is accompanied by an increasing cost and scope of creative
practices of firms, among others. Hence, diverse skills tackle transition speed. They propose the
potential of an enterprise to achieve strategic advantage in new and creative ways. Teeca
suggests that strategic versatility embodies "the enterprise's ability to integrate, build and adjust
technology internally and externally to suit today's needs." They equate the conflicting views that
an organization should be entirely capable of delivering distinguishable, innovative yet versatile.
3. Critically evaluate the building and managing dynamic capabilities and implications
Tesco has spent continually in technology to achieve an excellent consumer service and
retain a competitive edge (Martin-Rios And et.al., 2018). For Tesco, there have been three
technical advancements that have produced possibilities and improved diverse skills, as well as
over the years overcoming the challenges they face.
Shift "Bricks and Mortar" to "Bricks and Click" with Tesco appearing and "Press and
Pick" introduce:
The UK was great for online purchasing thanks to increasing technological innovation
rates and high demographic regions and also launched the delivery service option in the 2000s.
Tesco responded very quickly and adapted that opportunity in the year 2000. The Tesco follows
this business model where they setting up an online grocery channel, 'Tesco Direct.' Since 2006,
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online sales grew dramatically around 23 percent and Tesco strengthened its market model by
moving into 'grocery.com centres,' warehouse designed with innovative inventory systems for
'goods to people,' specifically for online order fulfilment.
In 2011, Tesco sell consumers complementary benefits and strengthen their market model
to increase productivity by raising their cost of distribution at home (Chesbrough, Lettl and
Ritter, 2018). Tesco is leading the competitor business by providing options for a 'click and
collect' or their buyers. Clients put online order or retrieved their carrier bag at a local delivery
point. Tesco mostly invested in website development, such as 'grocery.com centres’ around £ 1.5
to 3.5 million per warehouse. Home delivery and distribution chain facing problems due to poor
prediction of electronic retail orders due to a lack of knowledge.
Digitalisation implementation in Tesco’s stores:
In order to make the business model of Tesco more successful, the company should invest
in innovations in the electronic in the stores. They should placed portable devices on self-check-
out stations where Scan their products when customer buy anything. It is also installed for staffed
check-out stations to make process easy. This tends to reduce the expense of production from
the point of view of the organization and the business model, as certain members of staff are
required for manual check-out. However, self-checkout services do not come without challenges,
because the absence of personnel training has resulted in large rates of Tesco theft approx £ 8
million a year. Tesco helps in curing this fraud at self-checkout zones via electronic invoice new
tech and particular camera systems that alert supervisors in real time to customer measuring
device.
Store's cameras such as 'broccoli cam' spot fruit and vegetable containers exhausted in the
fresh produce aisles, and deliver text messaging to shop floor staff for urgent resupply (De
Massis And et.al., 2018). Tesco’s workers continue to change 5-10 million printing labels every
few days to be bypassed by digital shelf-edge stickers, saving scarce worker time to focus on
servicing consumers. Additionally, digital shelf-edge labels allow for quick price changes and
over a specified day, encouraging Tesco to implement special offers at one period notice.
Eventually, after checking an object, employees are equipped with smart sensing codes that
provide employees input on inventory-levels. Top product select info, allowing shop floor
workers to respond live to the requirements of clients.
Development of Tesco’s club card:
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Club card loyalty of Tesco is the special offer for a single user ID leading in the
integration of the buying data sources of millions of consumers. Tesco optimizes broad data
analyzes and analytics to adapt the supply chain and retail position to consumer patterns, allow
customer purchasing demand forecasts and produce substantial profits from online and
traditional platforms (Leonidou And et.al., 2018). When approximately 16.5 million buyers
apply for Club Card throughout the UK this has offered support for Tesco's market and operating
model, improving consumer product satisfaction and loyalty through repeated transactions
because of customized discounts.
This allows for better accuracy in estimating consumer needs through region and product
type. Tesco seeks to improve digital evidence from mobile phones in-store configuration and
awareness through outfitting consumers to reinvent order management in-store. For example, the
new Smartphone application of Tesco may be extended to include a capability to help consumers
find different products inside supermarkets and replacing the 'check as you buy' mobile devices
with mobile wallets for a streamlined user interface. It could increase the incentive for a
company model somewhat by rising staff numbers as well as in-store prices. At the end, Tesco
able to overcome the challenges which an individuals face when using scanning barcode
technology in self-checkout point, using innovative Toshiba technology which is no longer
requires barcodes.
Tesco has jurisdiction over the supplier's New Product Creation in terms of technology
growth, i.e. Even Tesco could steer innovative products against its market desires that are very
well-known regulations on critical customer knowledge. Finally, as far as Tesco's recruitment is
concerned, the company focuses on its relationship with information technology which helps
Tesco to enhance its data transmission (Zuraik and Kelly, 2019). Tesco built an intricate-value
network. It is indeed a special connection with its distribution companies and its connection with
other firms 'cross-organizational.' Tesco created a dynamic corporate framework, for example,
when the firm partnered with Safeway Inc to launch its electronic food shopping service. In
terms of technology, Tesco has improved its fraud detection tools to mitigate internal theft.
Planning and reporting procedures concentrate on the organisation's output costs and company
development. The Income Security team seeks to reduce shrinkage.
With respect to Tesco's HRM, the organization needed to increase the amount of training
programs that competence requires learning, which is genuinely relevant in terms of
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organizational decisions. The Customer Service activities of the company continue. Tesco's
tackled a loyalty system with other apps. Tesco has been building the methods from the entire
debate and managing their technological innovations. In the current market climate, if the
accelerated enterprise seizes opportunities and integrates them into company activities, it can
produce quick productivity outcomes.
Tesco’s dynamic technologies are primarily based on digitalisation, delivering electronic
ordering services, pick-up service options, self-scanning services, loyalty club wallet, etc. These
alterations in the stores allow the management to improve its effectiveness and efficiency which
further maximizes the corporation's growth or productivity. Additionally, Tesco has installed
CCTV's in their supermarkets to track the entire stores location, which helps them keep an eye
on each customer and staff members.
4. Conclusions and commercially viable solutions
Carrying several diverse capacities indicates the company that they can use its key skills to
adjust its productive short-term locations. Those future short term gains, in effect, could be used
to build a long-term strategic edge. Organizations continue to pursue new technologies, not only
to come to terms with all the modifications but also to survive on industry improvements.
However sustainability will also set down additional guidelines for businesses to aim well past
recent or short-term growth (Lopes and de Carvalho, 2018). Sustainable development theory uses
a simple and action to tackle the subject. The primary function of Tesco's building and
management capability requires an emphasis on different things. When the circumstances change
quickly, companies need to consider new developments, not so much to manage the
modifications adequately but also to succeed under changing business environment.
Environmental sustainability also needs to set proposed rules for companies to look
beyond the available to start or in the short term. Biodiversity theory offers a straightforward and
practical framework to tackle the problem. Resilience is usually considered as having three
elements within which conservation can be evaluated: social, economic and environmental.
Regardless of the dynamic circumstances, Tesco is expected to implement the latest Club Card
concept that facilitates building complex capacity. The advantages of how the Tesco will
see complex skills are built such as:
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Sensing: It describes the assessment of occurring options and customer expectations, and
outside the organization. In the case of Tesco, this made inherent motivators for a smaller one
come true. This approach requires leadership to get the business sector to have such a heartbeat.
Seizing: This refers to the answer that an organization wants to give its customers greater
firm interest. It identifying and implementing new opportunities and ensuring the access of credit
and opportunities. In the Tesco case there will be the development of foodservice. It also
welcomed the company's move to large mobile products, from computer systems.
Transformation: It includes changing processes within the company and maintaining their
value to consumers. It often allows the employees to modify, reinforce and constantly alter their
organizational culture. Task oriented, practical creation is critical transformation. In Tesco 's
testimony, this seems to refer to incarnations of the vegetables business.
5. Findings
In the grocery store, Tesco fit the sensors such as 'broccoli cam' which detect damaged
veggies and fruits containers in balanced food halls, and send message for immediate
replenishment to the staff members (Santoro, Vrontis and Dezi, 2018). Employees of Tesco
could modify 5 to 10 million print icons in a couple of days to be corrupted by automated rack-
edge identifiers, opening attractive work prospects for customer service contemplation. In fact,
digital shelf place attachment which allows quicker changes in currencies and over a given day,
enabling Tesco to offer coupon codes at the same time. Tesco has agreed to invest in Online In-
Store promotions.
The 'Scan as you shop' handheld machines and self-check-out services is built opposite to
standard employee-staffed check-out tools to enable shoppers to carry out the take-out process
without Tesco employees interference in the facilities. This aims to minimize production costs
from the viewpoint of an enterprise and operating procedures, as step down is supposed to yield
manual check-out. But self-checkout also not come without obstacles, Tesco's level of
technological advice has resulted in substantial theft levels approximately £ 8 million a year. The
core dynamic characteristics are specific creativity is needed that contributes to conditions like
the ideal moment for entry into the market.
 Time period is necessary at the situation of entering into market.
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 However, while there are accelerated technical advances even while the essence of future
industry and company becomes difficult to distinguish, the dynamic nature becomes
essential to preserving the brand identity.
 Knowledge planning in adjusting, incorporating and restoring is essential components
which required organizational skills, resources and class requirements internal as well as
external to reach the need for an impactful environment.
In this way, dynamic capabilities tackle constantly evolving conditions. They strongly advise an
organization's ability to achieve competitive advantage on contemporary and amazing aspects
(Schilling and Shankar, 2019) . While also trying to implement a comprehensive strategy,
dynamic capabilities are attempting to address these issues: by forming a gap between both
organisational direction and the changing business environment, lively investments help the
company modify its predicted finances and then further assure the sustainable development of
the strategic edge that can again be damaged rapidly. It shows the potential of assets or the
collection of appropriate services, revolutionary developments encourage the function of assets
and their reconstruction.
CONCLUSION
Based on relevant discussion, this has been found that it is an important to implement
creativity from time to time in order to achieve growth in the sector. This helps company develop
and maintain dynamic capabilities. It offers companies with a range of incentives and gets a
strong market spot. Club card concept is being implemented in Tesco and helps in the growth of
services. Tesco builds the strategies and maintains its capacity to innovate. Throughout the
contemporary business environment they should bring rapid profitability outcomes as the quick
entity seizes opportunities and enforces them into business operations. Tesco’s business
versatility relies mainly on digitalization, including online retail options, pick-up payment
systems, self-scanning features, positive certification of loyalty, etc. Such modifications in the
retail stores help the staffs to concentrate on improving their quality and productivity which
further optimizes the growth or profitability of the corporation. Diffusion theory is being applied
to present the technical advancement to address the improvements in their business.
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REFERENCES
Books & Journals
Kupeshova, S. T., Lazanyuk, I. V. and Kareke, G. T., 2019. Risk Management in the Innovation
Project. Central Asian Journal of Social Sciences and Humanities. 1(1). pp.9-12.
Brandl, F. J., Kagerer, M. and Reinhart, G., 2018. A Hybrid Innovation Management Framework
for Manufacturing–Enablers for more Agility in Plants. Procedia CIRP. 72. pp.1154-
1159.
Chatzoglou, P. and Chatzoudes, D., 2018. The role of innovation in building competitive
advantages: an empirical investigation. European Journal of Innovation Management.
Martínez-Costa, M., Jimenez-Jimenez, D. and del Pilar Castro-del-Rosario, Y., 2019. The
performance implications of the UNE 166.000 standardised innovation management
system. European Journal of Innovation Management.
Martin-Rios, C. And et.al., 2018. Food waste management innovations in the foodservice
industry. Waste management. 79. pp.196-206.
Chesbrough, H., Lettl, C. and Ritter, T., 2018. Value creation and value capture in open
innovation. Journal of Product Innovation Management. 35(6). pp.930-938.
De Massis, A. And et.al., 2018. Innovation with Limited Resources: Management Lessons from
the G erman M ittelstand. Journal of Product Innovation Management. 35(1). pp.125-
146.
Leonidou, E. And et.al., 2018. An integrative framework of stakeholder engagement for
innovation management and entrepreneurship development. Journal of Business
Research.
Zuraik, A. and Kelly, L., 2019. The role of CEO transformational leadership and innovation
climate in exploration and exploitation. European Journal of Innovation Management.
Lopes, A. P. V. B. V. and de Carvalho, M. M., 2018. Evolution of the open innovation paradigm:
Towards a contingent conceptual model. Technological Forecasting and Social
Change. 132. pp.284-298.
Santoro, G., Vrontis, D., Thrassou, A. and Dezi, L., 2018. The Internet of Things: Building a
knowledge management system for open innovation and knowledge management
capacity. Technological Forecasting and Social Change. 136. pp.347-354.
Schilling, M. A. and Shankar, R., 2019. Strategic management of technological innovation.
McGraw-Hill Education.
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