Entrepreneurship and Innovation Management: Tesco's Industry 4.0

This report examines Tesco's adoption of Industry 4.0 technologies, focusing on virtual and augmented reality (VR/AR) within the retailing sector. It defines Industry 4.0, provides examples of its characteristic technologies like big data, robotics, cloud computing, IoT, additive manufacturing, and augmented reality. The report illustrates how Tesco uses these technologies, particularly VR/AR, to enhance customer experience and improve organizational performance. It highlights the impact of chosen technologies on organizational performance, including time savings, customer engagement, and supply chain optimization, facilitated by initiatives like the 'Tesco Red Door'. Areas of future growth, such as leveraging big data and robotics for cost reduction and automation, are also explored. The report concludes with recommendations for Tesco to capitalize on innovation and technology, including enhancing data security and collaborating with tech companies for automated fulfillment.

Entrepreneurship and
Innovation
Management

Executive summary – The report is in the respect of studies of S. K. Singh who had studied
on the entrepreneurship and innovation management. The report had a description on the
Industry ‘4.0’ concept in the terms of technology and innovation of the company. There are
given some examples on the basis of the retailing sector’s technology used in Industry ‘4.0’ and
then there is a selection of on technology which is explained in brief further in the report. Then
the impact of one technology on the organisation’s performance is analysed. There are given
some areas of their future growth and the leverages of the company. At last, there are some
suggestions on the actions to be taken by the organisation for their future growth in innovation
and technology. This evaluates some advantages taken by the company in future of the
organisation.

Table of Contents
INTRODUCTION...........................................................................................................................4
MAIN BODY...................................................................................................................................4
Define Industry '4.0' with the help of characteristics technologies examples.............................4
Illustrate Industry '4.0' technologies used in the organisation.....................................................5
The industry '4.0' technology to be focused in the report............................................................6
Impact of the chosen technology on the organisational performance.........................................7
Areas of future growth from Industry ‘4.0’ technology and the company would leverage........7
Recommendations on benefits, opportunities and the actions to be taken..................................8
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................10

INTRODUCTION
The entrepreneurship and innovation management are the two key factors that are
important for the growing strategies in the company for the challenge of technological
disruption. They help in enhancing the skills for handling the challenges of innovation and
technological fluctuations. Tesco is a British firm that operated the retailing and general
merchandises in groceries while their headquarters are based in Welwyn Garden City, England.
It is the third highest earning company globally (Costales, 2022). This report is based on the
Industry '4.0' innovation in the retailing sector, the impact of innovation, areas of upcoming
growth and the ways by which the company can get benefit of the opportunity.
MAIN BODY
Define Industry '4.0' with the help of characteristics technologies examples
This concept of 'Industry 4.0' in retailing sectors defines about the innovations in the
technology taking place in the fourth transformation in the industry which helps in providing
technology to the customer experience and transform the stores to improve the business customer
relationships (Iftikhar, Justice and Audretsch, 2022). The customers are now experiencing
personalisation as the retailers have created a better experience in their in-store facilities with an
enhanced operational efficiency and maximising profits in retailing sector. The characteristics
technologies examples of Industry '4.0' some of them are mentioned below -
 Big data – The big data is used in transferring the information which is need in different
departments and also the supply network of the firm as a lot of data is stored and
understood by the company. The company has to maintain the big data about their
customers in the aspect of their trends, preferences, customizing the offerings and
personal records of their customers. The big data helps the firms to be informative while
making decisions and investments in technologies and assets.
 Robotics – There are many manufacturing plants and robots in the retailing industry as
they help in managing warehouses, in store services, delivering and customer experience.
For an example the robots assists when the customers put up a query through a touch
screen and know the details faced by them in their products and services.
 Could computing – This is an example of Industry 4.0 which is dependent on the
transparent business model and vice versa. This helps the companies to provide a simple

and secure information transferring. There is a work of tracking the inventories, digital
documentation, consignment and so on. This advantages the firm to acquire new
directions in transparency and accuracy (Joseph, 2022).
 Industrial Internet of Things (IoT) technology – The retailers have to use the internet
in enhancing the customer experience. This can help the retailers in updating inventories
for the managers and minimizing the disappointments of the customers in the terms of
store shortages. The products are kept in smart shelves that measured the weight of the
products and whenever the product is eliminated or added from the shelf then it can be
predicted by the smart shelves. They give an alert to the management for the theft
occurrence (Morabito, 2022).
 Addictive manufacturing – The Industry '4.0' is used much in the manufacturing
departments which are considered in the form of 3D printing and prototyping. Sometimes
the retailing sector have to be responsible in traditional manufacturing which is required
in refining the resources for production. There is a need for the companies to decrease the
costs of manufacturing wit the help of resources where there should be least wastage of
material used in manufacturing. This technology is most used as a back-up option in the
chance of failure in traditional equipment. This helps the firm in decreasing the use of
manpower needs in the scale of large manufacturing.
 Augmented reality – There are some retailing sectors who have to control the research
and development employees who are responsible for exploring AR technology and some
groups have resulted that the AR can make value propositions in some innovative
techniques (Niemann, Mai and Dickel, 2022). For an instance, AR provides the
customers to experience new products for their utilization.
Illustrate Industry '4.0' technologies used in the organisation
The industrial revolution of 4.0 is about the use of some technologies in the tool for
developing the customer experiences with the use of big data, robots and cloud computing. They
have to adopt some technologies used to improve the customer satisfaction and experiences.
They can access the data of the consumer which will enable them to react for the consumer
preferences. The business has to know the behaviour of the consumers for their choices in food
consumption which is predicted by communicating with them and their information is stored in
their devices. They are using the technologies in food manufacturing industries. The digital chain

technology is helpful in improving the communication techniques in supply chain. The digital
technology of social media is also helping the company to sell and approach the new customers
who are targeted online. For example, Tesco advertises their food items on the Instagram,
Facebook and YouTube.
There are robots used in the packaging of the items which can be done in a more efficient
way than the labours (Liu and et. al., 2022). For an example, Tesco uses some robots who can
help their consumers to predict their queries and problems and make them contact to the support
team if their problem is to b e understood in deep. The retailing sector is most relied on the cloud
computing which simply helps them to share some information in an easy and secured way.
Tesco have kept some records of their inventories used in all stores, consignment,
documentations which gives them to be transparent and accuracy. The company is managing a
technology in IoT which provides advantage to their executive members in the retailing sector.
There are some sensors that provides a communication in conveying stakeholders for the real
time and field devices. These sensors can also predict any dis-functions in the automations
easily. Tesco have heating sensors in their supermarkets, enhanced scanners, good self-service
tills as well as checkout cameras so as to avoid the queues and not let the customers to wait in the
line. They are in success among all their competitors just because of their self-service checkout
till.
The industry '4.0' technology to be focused in the report
The technology of industry '4.0' selected in the respect of retailing sector is VR an AR
which is known as Virtual Reality and Augmented Reality which is mostly used in the
applications. The AR technology is used to know the physical aspect of the customers from the
digital transformation made by the devices in an environment. For example, in Tesco the
customers do not have the requirement to make a trail for the clothes so they can watch by AR
that how does the preferred clothes get fit and suits on them. They take a help of virtual fitting
room so as to look themselves for the clothes they are going to buy. They have introduced some
displays on which the customers can watch themselves like a mirror view and make a trial of
different clothes without actually changing on themselves (Niemann, Mai and Dickel, 2022).
Tesco has introduced an innovation technique named ‘Tesco Red Door’ in which they invited
some innovators to share their ideas, products and some technologies which can disruption to
stay in touch with the innovation team of the company. The customers enjoy the Virtual Reality

offered by the company which benefits them in selecting a product like clothes ad imagine in
reality whether the clothes look great in them or not.
Impact of the chosen technology on the organisational performance
This helps in saving the time of the purchasers as well as companies. The customers get
more engaged in their shopping experience provided by the companies through this industry
‘4.0’ technology. Afterall Tesco has the latest and advance technology for their work. They need
to regulate the supply chain network on a real time basis as well as they also update their
customers for their delivery product. They understand the method and time taken for supplying
the items to the customer and retailer (Tesco launches the ‘Tesco Red Door’; invites innovators
to share ideas, 2020 [online]). They are going to help the organisation through the ‘Tesco Red
Door’ in analysis of ideas rapidly, support executives to access the company and advantaging
them to innovate and enhance their ideas. They their own team who creates innovation for the
company in their daily activities and this advantages the firm to improve upon their directions of
offering shoppers. They have developed a real time information for the flow of their products
from the point of manufacturing till the consumers. They also take out all the details about the
physical composition, production and hierarchy numbers. They have to involve a level of
transparency on the factors of goods origin. The technology also helps the company to enhance
their process visibility and status of their products. They also connect to the back end of their
organisation in their structural process with the help of some technologies like ERP, CRM, EMS
and many more (Nobari, 2022).
Areas of future growth from Industry ‘4.0’ technology and the company would leverage
This will benefit the firm to improve their innovation path and get concentrated on the
innovation. They can introduce new brands, goods, services and new technology systems to the
company’s operations in the future period. The innovation team of the company can altogether
bring an innovation in their products, stores, supply chains and services (Nouman and Cnaan,
2022). The company is evaluating for the four types of technologies that will help them to
growth themselves in the retailing sector in food and drink commodities. Some of the types of
technologies focused by the company are in the areas that are as follows –
 Big data – Tesco is using their resources for the data which will reduce their costs in
electricity and heat, through this measure they can help their retailers to collaborate with
the distributing chains to get linked with the heating and electricity regulators through all

the stores to the data warehouses with the help of internet. The data management has
made easy for the company to generate the Internet of Things. They need to protect their
data from the unauthentic user to acquire it. They should have proper security measures
because this comprises of all the information of the company and it is more essential for
them as the company plays in the third highest level in competition (Torabandeh and et.
al., 2022).
 Robotics – Tesco is utilizing their warehouse robots with the help of collaborating with
the other tech companies who have automated fulfilment centres. There are machines that
would help them in picking up the products in the line, they also use some barcodes given
by the suppliers that will help them in saving their time and expenditure in making and
creating labels on their products.
 Automation – They are getting more accurate in their management oof the products they
are selling to the consumers. They never get any mis scanned case in the terms of Tesco’s
automations used in pick by line and the bar codes as explained in the previous area of
development for the future of Tesco. They will be able to manage their automations for
their own betterment and increase in efficiency as well as they are getting a hundred
percent accurate by the use of automations (Permatasari, Dhewanto and Dellyana, 2022).
 Packaging – They can deploy a new design in package that will help them to keep their
fruits and vegetable in their stores for a longer time to be fresh. They are using more
conventional methods and the sustainable designs for packaging with the help of
innovation in technology which will gain the consumer an advantage in keeping the
products in a better way. They are going to design an ethylene absorbing packages which
will maintain their fruits and vegetables for a longer time to be fresh.
Recommendations on benefits, opportunities and the actions to be taken
There are some recommendations for the company to how to manage and operate their
Industry ‘4.0’ technology for their future growth which are that the company should try with
their full efforts to make innovation in the new technologies. The workers in management field
should do the practices, analysis and control the innovation for the company. The industry has
reached till the fourth generation of innovation in technology. The company should be aware to
keep some qualified employees in their future period. They should bring changes to their
technologies with the frequent time period. They should stay updated for the updated technology

used in the market as the competitors can acquire if they don’t get aware which will lose their
customers from the same market. They should improve their customer experiences in the terms
of technology as they should serve a better and advance technology for avoiding the time taken
and efforts made for the customers as well as the sellers. They should enhance the maintenance
of their products in the multiple stores (Putri and Moustakas, 2022). They are still managing the
functioning of their innovation in the bottom level of management which should have to improve
their customers work, production, payroll, accounting, management, marketing and finance.
They should manage their all data stored up to their level of security and they should prevent any
unauthorised user in the big data. There are some specialists working in the research and
department sector who should increase their motivation and creativity. They must create a smart
distribution network which helps the organisation model to link through their customer
requirements to acquire a level of more complexity. In the Industrial revolution 4.0 environment
Tesco should implement an adequate level of their resources in the for enhancing their
distribution networks which makes their goods approachable widely to all their customers easily.
CONCLUSION
This report now concludes with the explanation on Entrepreneurship and innovation
management in the terms of the Industry ‘4.0’ technologies applied by a company which was AR
an VR in the retailing sector. The company have been affected from the innovation to
advantaging them in their performance and some of the benefits were the enhancing the customer
experiences and the efficiency in the operations of the firm. Then only one technology was
analysed in the terms of areas of future growth and opportunities which were big data,
automation, robotics and packaging for the company. The company had an impact of the selected
technology that were transparency in the product’s status, improvement in distribution chains
and so on. This report concludes with some recommendations, discussion on actions to be taken
by the organisation and the way company is having advantage in their operations. There was a
suggestion for implementing a sufficient quantity of resources used in the innovation of the
company.

REFERENCES
Books and Journals
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El Tarabishy, A., The Intersection of Social Entrepreneurship, Sustainability, and the UN SDGs
in the Arab World: A Humane Entrepreneurship Perspective. Entrepreneurship and Social
Entrepreneurship in the MENA Region, p.1.
Iftikhar, M.N., Justice, J.B. and Audretsch, D.B., 2022. The knowledge spillover theory of
entrepreneurship: an Asian perspective. Small Business Economics, pp.1-26.
Joseph, J., 2022. Entrepreneurship, Peace, and Institutions in the Middle East and North Africa
Region. In Entrepreneurial Rise in the Middle East and North Africa: The Influence of
Quadruple Helix on Technological Innovation. Emerald Publishing Limited.
Liu, Y. and et. al., 2022. Digital innovation and performance of manufacturing firms: An
affordance perspective. Technovation, p.102458.
Morabito, V., 2022. Digital Entrepreneurship: Management, Systems and Practice. Cambridge
University Press.
Niemann, C.C., Mai, R. and Dickel, P., 2022. Nurture or nature? How organizational and
individual factors drive corporate entrepreneurial projects. Journal of Business Research. 140.
pp.155-169.
Nobari, N., 2022. How Strategic Entrepreneurship Benefits Public Administration: A Potential
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Nouman, H. and Cnaan, R.A., 2022. Social entrepreneurship in social work: Opportunities for
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Permatasari, A., Dhewanto, W. and Dellyana, D., 2022. The role of traditional knowledge-based
dynamic capabilities to improve the sustainable performance of weaving craft in
Indonesia. Journal of Enterprising Communities: People and Places in the Global Economy.
Putri, R. and Moustakas, L., 2022. Sport Entrepreneurship in Indonesia. In Entrepreneurial
Innovation (pp. 89-96). Springer, Singapore.
Torabandeh, M.A. and et. al., 2022. Designing a multi-division model of national innovation
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Online references
Tesco launches the ‘Tesco Red Door’; invites innovators to share ideas, 2020 [online] available
through <https://www.tescoplc.com/news/2020/tesco-launches-the-tesco-red-door-invites-
innovators-to-share-ideas/>