Action Plan Roadmap: Developing Tesco's Innovation Capabilities

This report provides an action plan roadmap for developing and implementing innovation capabilities at Tesco, building upon a previous analysis of the company's historical development and current market performance. It identifies future trends in the retail industry, emphasizing the importance of digitalization through technologies like drone delivery, Doddle Parcels, and Google's self-driving cars. The report highlights the need for Tesco to adopt AI and AR to improve logistics, reduce carbon emissions, and enhance customer service. It also addresses organizational innovation requirements, comparing Tesco's current offerings with industry trends in technology, human resources, and communication systems. The roadmap includes steps for implementing these innovations, focusing on research and development, technology improvement, and the adoption of AI and AR to achieve a competitive edge and improve brand image.

CW2: Individual Report: A full report
comprising an action plan roadmap for the
development and implementation of the
innovation capabilities of the Tesco
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Contents
Executive Summary.........................................................................................................................3
Introduction......................................................................................................................................4
The Future of the Industry 2020 and Beyond..............................................................................4
Organisational innovation requirements 2020 and beyond.........................................................5
Building of the future innovation capabilities for an organisation..............................................7
Conclusion.....................................................................................................................................10
REFERENCES..............................................................................................................................11
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Executive Summary
This report is the continuation of CW1 where focus is provided over future innovation
capabilities of Tesco. In CW1, identified about the historical development of Tesco along with
current performance in marketplace. Now, in CW2 identifying future innovation capabilities and
industry trends. It has been identifying that future trends of retail industry are digitalisation that
will be beneficial for them in achieving better outcomes within minimum time. In future,
digitalisation work in different ways such as providing services to the customers through drone,
Doddle Parcels etc. These will be effective and useful for them in increasing of their capabilities within
future. Google self-driving cars are best innovation for retail industry. This will help them in protecting of
environment from the pollution. In this car, there will be no requirement of men because this is an
automatic car delivering the services to the customers. Main feature of this car is to pick up the product
from company to provide this to the customer at their place. Google navigation is another innovation that
will be essential for Tesco in improving its business performance. This innovation helps customers in
identifying the stores of the Tesco products that will save customers time and provides products as per
their requirement. Therefore, innovation and digitalisation is important for retail in accomplishing its long
term goals and objectives within minimum time and in effective manner. Innovation and digitalisation
will facilitate retail industry in increasing of their sales after Covid 19. Thus, innovation is essential for
retail industry in increment of higher customer base, improvement of brand image, increment of sales etc.
Along with this, innovation road map includes different steps that will be beneficial for Tesco in
implementing innovation within a workplace. This will be suitable and valuable for retail industry in
maintaining of their strong position in Marketplace.
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Introduction
Innovation refers to the development of new value and capturing value within an innovative
manner. In simple word, innovation is the development, creation and evaluation of a new
services, process or products, with purpose of improving effectiveness, competitiveness and
efficiency (Akrofi, 2018). Along with this, innovation capability refers to the ability of an
organisation in identifying the new ideas and transforming them into new process, products or
services that benefit the company. Innovation within an organisation has different roles i.e. solve
problems easily, increase productivity, help to sussed over competitors, improve business
growth, increase customer base etc. These are considered main roles and importance of
innovation within a workplace, which will be essential for company in attainment of competitive
advantages in successful and effective manner.
Main purpose of this report is report is developing the innovation road map that outline the
preparation of innovation process. For this report, Tesco is a chosen organisation that is
mentioned in CW1. Tesco is a British multinational groceries and general merchandise that
founded in 1919 by Jack Cohen, and headquartered in Welwyn Garden City, England.
This report divided into different parts that include some information such as future of the
industry 2020 and beyond, organisation innovation requirements 2020 and beyond and designing
a plan of action or roadmap. These are major information that will be needed for carrying out this
report in successfully.
The Future of the Industry 2020 and Beyond
Tesco is a selected organisation that works within retail industry. Retail introduces to the activity
of selling products or services to consumers or end users in direct manner. In addition, this is the
process of selling goods and services to the customers via multiple channels of distribution, with
aim of earning profit. According to the information collected for CW1 is has been determined
that in year 2016, retail industry has moved out under large transforming along with its quality
standards, considerations of competition between organisations and in budding strong brand names
surrounded by all businesses bringing out innovative parameters of innovation. With a leans of the future,
retail industries are re-imaging stores on behalf of digital age by using technology to develop new
experiences as of product discovery to checkout. Technology is one of the essential and significant parts
of the business and growth because with the help of this, they can easily attract larger base of customers
and also attain competitive advantages in successful manner. Use of digital technology help retailers i.e.
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Tesco in its future growth and development because this will help them in increasing customer base,
maximising the sales, improving growth, saving time, increasing brand awareness and also developing
strong brand image in marketplace and in customer’s mind. For example: Covid 19 is a pandemic
situation and in this use of technology is more beneficial and essential in its future growth (Awadari and
Kanwal, 2019). Artificial intelligence within retail industry is being used in innovative manner across
the whole services and product cycle-from gathering to post-sale customer service interactions. Along
with this, there are different categories that will be beneficial for retail industry in its future. These are
sales and CRM applications, customer recommendations, manufacturing, logistics and delivery, payment
and payments systems etc. Drone delivery is another trend within retail industry that will be useful in its
future and beyond. This technology helps retail sector i.e. Tesco in delivering of their products and
services to the customers. This technology save time and cost as well as also protect customers from
Covid 19. This technology reduces the cost of labour ad increase the efficiency of the services.
Doddle Parcels is an innovation that will be essential and effective in future of the retail industry.
This is an effective trend that works as delivering the services to the customers. Doddle Parcels is a type
of delivery service that to be found in and around train stations within UK. Using Doddle, clients can
send, rise up or return packages within 7 days a week. Along with this, there are different innovation
retail trends to watch within 2021. These are: social commerce, an innovative approach to influencer
marketing, online stores in offline spaces, increase in smart speaker shopping etc. All these are essential
and valuable in future and beyond of retail industry. All these are important and essential for retailer i.e.
Tesco in accomplishment of competitive advantages in successful and within minimum time of period
(Chapman, 2019).
Organisational innovation requirements 2020 and beyond
It is must to determine the current innovation requirements for future development of an
organisation. The method which is best in this respect is to compare the industry trends with
organisational current offerings. This not only help in determining current positing of an
organisation but also help to ascertain points on which further needed to work for gaining
sustainable future in market (Chuang, Kuo and Luo, 2020). It is important for the management of
an organisation that focus over all the different points attached with an organisation functioning
such as technology, permit, human resources, capital, communication system etc. Tesco is
multinational retail organisation which having business operations at world-wide level. In retail
industry, Tesco having vast name and position due to effective amount of functioning in market.
This depicts that management of an organisation is focused towards the usage of current and
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trendy tools for operating functions along with an adopting new changes as per recent trends.
Afterwards, there is scope left regarding improvement of business through identification of
innovation requirements. This is identified below with the aid of comparison between
organisation and industry working by focusing over different determinants such as technology,
permit, human resources, capital and communication system.
Technology: In terms of technology, Tesco is advanced and using many of the different
tools and techniques. This includes online payment gateways, Omni channel promotions, digital
advertising, contact less billing and delivery etc. There are many other different technological
aspects which are used by other players of market or exist in industry such as artificial
intelligence in operational functions, drone delivery, environment friendly logistics, robotics for
operational activities etc. So, these are different existing options which will be adopted by an
organisation in future to improve the functions or business. Application of these all not only
helps to improve the operational capability but also aid in providing quality offerings that brings
jump in brand image in market among consumers.
Human resources: Tesco is large organisation and having business operations at world-
wide level. Millions of employees already working within an organisation which are competent
in nature of delivering effective services to their existing and potential new consumers. Other big
players of the market like Sainsbury and Walmart having the millions of employees along with
development team that working in the direction of developing team that is competent to perform
in diverse conditions along with retain in organisation for longer period of time (Damer, 2020
Evans and Mason, 2018). In this direction, Tesco already having different teams but to compete
in market getting edge from other they need to add technology in such services along with
competence. This will not only help to develop the team at global level but also providing an
opportunity to improve the image in market and industry where new clients and candidate will
approach to an organisation to be part of the same.
Communication system: Tesco is multinational organisation that prevail effective
communication system at premises in world-wide level. This not only helps in performing
effective internal communication but allows being in touch with external parties. The different
systems exist or used within an organisation includes e-mail, digital media, intercoms etc. The
communication systems used by other players in market are quite same. The difference is the
usage of AI and AR in same to make in more automatic and self-result generated. It is must for
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the management of Tesco to focus over the usage of these in their communication systems to
make more effective and relevant. This not help to generate the information but in performing
multiple functions on single point of time.
Building of the future innovation capabilities for an organisation
This part includes the building of a roadmap for an organisation in development of the future
innovative capability. It also includes the preparation of implementation plan along with
development of various tactics that help in getting successful result from same (Hampton, 2019).
Suggest: Out of the various options that exist in front of the Tesco regarding development of
future functions, technology improvement is best. In this, they have to focus over improving
logistics through usage of AI and AR. Here, they have to use the AI and AR in reducing carbon
emission along with building capacity of driverless delivery Trucks.
Reason: This not only helps in saving cost but also aid in support the movement of go
green. This saves the cost along with emitting unnecessary contacts from the products which is
important in post COVID period to reduce contamination. The large number of benefits
associated with this nature innovation like improvement of organisational brand image, support
of society to be green in operations, improved profit margin, and large amount of investment
from the stakeholders and optimum utilisation of human and capital resources
(Homayounfard, 2020). In future, this will must help an organisation to get competitive edge in
market where the able to present themselves differently from the competitors along with
attracting the new potential consumers towards their offerings.
The different points on which further need to work for the effective implementation of this
technology within an organisation is provided below along with devised nature of planning and
tactics;
Impact of change
Research and Development: This is the team on initial level necessarily to be developed by
an organisation. This team having main work related to analysing market, logistics and different
options of implementing AI and AR within delivery system or developing environment friendly
and driverless trucks that able to use the navigation in searching of destinations and reaching at
point without any interferences and consequences. Here, they have to first identify overall
logistics options and delivery routes along with transformation or rebuilding of suitable one’s
with the aid of new technological choices that aid in attainment of desired innovation objective.
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The process is not that short as it looks. Here, they also have to focus over building of the new
ones. This increases the cost and investment of an organisation but research and development
team simultaneously having the work to arrange in budgets along with up to the limits through
which they able to gain benefits in future (Kopia, 2019).
Required resources: There are different resources that will be needed by Tesco for
implementing AI and AR. These are capital, human resource, time etc. These are main resources
that will be essential for Tesco for developing AI and AR.
Technical skills required: There are certain number of technical skills that will be needed
for developing AI and AR. These are Solid Mathematical and Algorithms Knowledge, Efficiency
in Distributed Computing, Good Command Over Unix Tools, Innate Curiosity and Creativity
etc. All these are important technical skills that will be required by Tesco for implementing AI
and AR.
Legal aspects/compliance: In order to develop AR and AI, it is important for Tesco to
follow all legal aspects. There are some legal aspects that must be following by Tesco while
completing the work based on AI and AR (Kowalska and Szyja, 2020). These are environmental
protection act 1986, equality act 2010, data protection act 1998 etc. These are major legal aspects
that must be require for completing work in systematic and ethical manner.
Cost of change: Cost is important source for each project or work. Tesco is requiring to
complete work based on AI and AR, with aim of protecting environment and fulfilling
customer’s requirement about the product, process or services (Son, 2020).
Particulars £Amount
Cost of artificial and Augmented reality 50000
Expenses related to use of artificial intelligence
and Augmented reality
25000
Cost of fuel for car 30000
Costs related to applications and software 45000
Hiring of professionals 20000
Compensation to staff members 10000
Total 1,80,000
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From the above mentioned activities along with their cost are valuable for Tesco in
completing their work systematically and significantly. From the above mentioned table, it has
been determined that there are different activities such as cost of artificial and Augmented
reality, expenses related to use of artificial intelligence and Augmented reality, costs related to
applications and software, hiring of professionals and compensation to staff members. All these
are main activities that will be needed actual amount of capital i.e. £1,80,000.
Feasibility: This project is feasible because it will help Tesco in completing their work
based on AR and AI. Both are effective technology for retail industry in attracting of larger
customer base within minimum time (Lee and Soh, 2020). Google navigation and google-self
driving car are valuable technology in accomplishing better outcomes at present as well as future
time.
Approval process: This is important for Tesco to get approval regarding completing work
associated with the AR and AI. There are some people that are main in receiving their approval
about the current work (Paunov and Planes-Satorra, 2019). These are government, societies,
retail industry and many more. Getting approval from these people, Tesco become able in
completion of full work in systematic and effective manner. This turn to impact on business
performance and productivity in positive manner.
Apply the changes: There are different alternatives that will be needed for changes. These
are: development of effective infrastructure, recruitment of knowledgeable employees who had
technical skills, use of natural resources etc. These are useful alternatives that would be
significant and beneficial for Tesco in applying all changes successfully. Along with this,
development of AI and AR is important for Tesco. There are different changes that will be
needed by Tesco at their workplace. These are: proper hiring of skilled workforce, providence of
training and development etc. These are main changes that will be required for completing
present work effectively and systematically (Leegwater, 2020).
Review the impact of change: Change is important of Tesco in attaining of competitive
benefits as well as development of strong brand position in marketplace. Development of AI and
AR is essential for Tesco in providence of their services and products to the customers without
consuming maximum time and cost. Google-self driving cars helps Tesco to deliver their
products to the customers without the required of people.
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Therefore, above mentioned future innovation capabilities of Tesco help them in
improvement of its growth, increasing the sales, enhancing the brand image, increasing
profitability, maximising customer base etc. These are biggest advantages of innovation for
Tesco in future time period (Leleux and Van der Kaaij, 2018).
Conclusion
From the above mentioned information, it has been concluded that innovation within an
organisation helped company in improvement of its growth and success at national as well as
international marketplace. There are different future trends discussed that is essential and
valuable for the growth and development of retail industry. Digitalisation is a biggest trend that
helped business organisation in every situation i.e. Covid 19. With the help of digital
technologies, retail industries are able in attracting larger base of customers and also maximising
their sales ratio. It has been determined that innovation is important for the company in present
as well future time period because with this will help them to easily increase their sales and
improved their brand image in marketplace. From the above mentioned findings, it has been
concluded that there are different organisational capabilities including technology, permit,
human resource, capital, communication system and many more. All these capabilities helped
retail sector in accomplishment of competitive advantages and also maintaining their strong
position in marketplace. Google self-driving cars is a best innovation future trend for retail
industry. It has been concluded from the above findings that Google self-driving cars will help
retail industry in delivering of their services to the customers without person requirement and
this will also help in protecting the environment from pollution.
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REFERENCES
Books and Journals
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Chapman, R.J., 2019. Exploring the value of risk management for projects: improving capability
through the deployment of a maturity model. IEEE Engineering Management
Review, 47(1), pp.126-143.
Chuang, L.M., Kuo, T.S. and Luo, G.Y., 2020. The Sustainable Service Innovation Model in the
Chain Restaurant Industry: Circular Economy Perspective. Advances in Management
and Applied Economics, 10(4), pp.1-22.
Damer, L., 2020. Successful Talent Management Strategies Business Leaders Use to Improve
Succession Planning.
Evans, B. and Mason, R., 2018. The lean supply chain: managing the challenge at Tesco. Kogan
Page Publishers.
Hampton, D.B., 2019. Modern Slavery in Global Supply Chains: Can National Action Plans on
Business and Human Rights Close the Governance Gap?. Business and Human Rights
Journal, 4(2), pp.239-263.
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Services: An Investigation in the UK B2B Retail Sector (Doctoral dissertation,
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Kowalska, K. and Szyja, P., 2020. Eco-innovations in Network Relationships of Enterprises for a
Low-carbon Economy.
Lee, S. and Soh, J., 2020. A Study on Mid-to Long-Term Development Directions for Energy
Efficiency Management in the Age of the Fourth Industrial Revolution (1/3).
Leegwater, W.M., 2020. lmproved product innovation at Ahold.
Leleux, B. and Van der Kaaij, J., 2018. Winning sustainability strategies: Finding purpose,
driving innovation and executing change. Springer.
Paunov, C. and Planes-Satorra, S., 2019. How are digital technologies changing innovation?
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