BSBINN501 Report: Establishing Innovation Systems at Wesfarmers

This report examines the establishment of systems to support innovation within Wesfarmers, a major Australian corporation. It begins with an analysis of Wesfarmers' current systems, including its learning management and distribution systems, and identifies existing gaps and barriers such as fear of the unknown, ineffective leadership, communication breakdowns, and undue complexity. The report then explores system concepts and options, including divergent and convergent innovation techniques like leading from the front, creating a culture of innovation, making effective teams, and rewarding failure, as well as brainstorming, nominal group technique, conferences, and Delphi technique for discussing ideas with stakeholders. A detailed development plan is presented, including operational plans, communication strategies, and learning and development strategies. The report emphasizes the importance of specialized assistance, coaching, and training to facilitate the implementation of new systems and foster a culture of innovation within the organization. Finally, the report details the resources needed to foster innovation, which include effective teams, ownership of customer problems, a culture of innovation, and benchmarking against the best. The report provides a comprehensive overview of the strategies, techniques, and resources necessary to establish and maintain a robust system for innovation at Wesfarmers.

Establish systems that support innovation 0
wesfarmers
Establish systems that support innovation
System04116
8/17/2019

Establish systems that support innovation 1
Contents
Background of the study..............................................................................................................................2
Analysis of current systems.........................................................................................................................2
Generation of system concepts and options.................................................................................................4
Development of plan for the system............................................................................................................5
Trial of the system.....................................................................................................................................10
References.................................................................................................................................................12

Establish systems that support innovation 2
Introduction
Wesfarmers is a biggest private company in Australia. It was started in 1914 as a corporative to
offer services and produce to western farmers of Australia and has approximately 2, 20,000
employees. Wesfarmers limited possesses a different portfolio of businesses working in the
hardware, gas processing, department stores and coal mining, energy distribution, chemical and
safety product industries and fertilizer and industrial. The purpose of this report is to establishing
the systems that support the innovation within the organization as well as the development of
strategic goals and associated roles and responsibilities (Wesfarmers, 2018).
Analysis of current systems
a) Wesfarmers is the largest corporation in Australia and has various systems for working or
operating their activities in an effective and efficient manner. For this purpose they have
proper learning management system which has positive impact on the organization as
expansion of learning management system in the organization covers the contractors and
reduce the online training times and provides online learners only information about the
products and service they need in a direct and organized manner (Nylén, 2015).
As they also have distribution system which minimizes the effect on the environment and
easily market can be covered in the beginning. Due to this system, they interact with their
customers directly and can retain a huge control over their products and its performance.
This system also allows them to collect the valuable data on the buying habits of the
customers.
Wesfarmers working on digital system that provides them means of business
transformation, streamline processes and making the use of technologies they have that
increases their connection with the customers and employees and delivers the excellent
experience to customers at the same time.
b) Objective of the current system is to manage the learning of the customers regarding
products and services and easily made interaction with the customers for retaining control
over products and its performance. It also aims at delivering best customer experience.
c) There is existing gap and barriers in current systems of Wesfarmers:

Establish systems that support innovation 3
 Fear of the unfamiliar and unknown: if they are standing still they are going
backward.
 Ineffective leadership: the employees do not embrace the new modifications then
the implementation will be a difficult conflict.
 Broken communication: it is critical for the company to communicate the changes
which being implemented to each level of the company.
 Undue complexity: the sheer scale and complexity of the modification or change
becomes a critical barrier in the management of change or current systems (Del, Et
al, 2016).
d) Competitor’s analysis: Wesfarmers is the big retailer organization in Australia which has
several competitors but Best & Less, Myer, Woolworths and Hs Home is the major
competitors of Wesfarmers. Each companies have different systems for working as
Wesfarmers created its goals for business by focusing towards its objectives of business
that are about the provision of better return to shareholders whereas the Woolworths is
completely focused on providing main performance to its customers. For future
Wesfarmers develop new systems that too focus on performance of business or the
customers and increase the learning of the customers towards its products whereas
Woolworths will directly contact to the customers for their products and increase their
understanding about the product and service (Dewald, 2017).
e) Resources required to foster innovation:
 Effective teams
 Ownership of customer’s problems
 Culture of innovation
 Benchmark against the best
f) Key stakeholders who would play a vital role in conceptualizing new system ideas:
 Employees
 Managers
 Owners
 Suppliers
 Shareholders

Establish systems that support innovation 4
Generation of system concepts and options
a) The innovation can be foster by using divergent and convergent technique of innovation
that is
 Leading from the front: the innovation begins from the qualities of leadership that
they have to be bold thinkers and from across the board, they initial role to foster
the innovation within the organization.
 Create the culture of innovation: individuals performs better when they are driven
by motivation and encouraged to push their limitations and think beyond the box
and this is only possible when individual feels independent to own their
innovative thinking then this will happen naturally that management can
effectively foster the creative and open environment.
 Making effective teams: teams must create the real sense of psychological safety
where honest and open communication can be prevailed (Quirke, 2017).
 Rewarding failure: the employees’ creativities and innovation is recognition
which is the strong tool for promoting their ideas and initiatives and have
tremendous payoffs to the Wesfarmers (Schot, 2018).
Brainstorming technique is used as individual or group technique to combines the
relaxed, informal tactic to problem solving with the lateral thinking. It inspires
people to come up with views and ideas that can, at initial, seem a little crazy.
Some of these thoughts or ideas can be made into original, innovative solutions to
a issue, while others can spark even more ideas. This helps to get people unstuck
by "jolting" them out of their normal ways of thinking. Therefore, during
brainstorming assemblies, people must avoid criticizing or rewarding ideas. Firms
are trying to open up possibilities and break down improper assumptions about
the problem's limits. Judgment and analysis at this stage stunts idea generation
and limit creativity (Kerzner, 2017).
b) Techniques for discussing ideas with stakeholders:
 Nominal group technique: with the help of this technique, ideas are gathered and
combined in the face to face and nonthreatening group environment and intended
to promote the participation of shareholders where they express their own opinion
which can be add to the ideas discussed.

Establish systems that support innovation 5
 Conferences/workshops/forums: the conferences or meetings for discussion
related to the ideas especially one in which they form an audience and make
presentation for the stakeholders.
 Delphi technique: it allows the stakeholders to communicate their opinions on the
ideas discussed in the form of questionnaire (Liu, Et al, 2017).
c) These ideas, options and techniques are chosen due to their clarity as these makes few
assumptions; usability as to meet the market demand; stability as these ideas, options and
techniques cannot become antiquated before reaching the market; scalability as these
meets the continuous standards and produced in such a way that these can be produced
again without being reinvented constantly; and profitability as these ideas and techniques
helps in keeping eye not only on the idea’s dissemination potential or opportunity of
revenue but also on the factors discussed. These issues can be identified early and
rectified in order to ensure our ideas or concepts are feasible and successful. By testing,
exploring and challenging your ideas before actually implementing them we will ensure
that no resources (e.g. time and money) are wasted on an unsuccessful and irrelevant
idea. This process allows for the identification of areas that can lead to more developed
and advanced ideas. Once this is completed, we can confidently implement our ideas.
d) The ideas which are selected have feasibility and ability to meet the requirements of
organization as these are primarily led by qualified leaders and culture of innovation is
created which makes feel independent to the individual for their innovative thinking and
promoting innovation which payoffs the Wesfarmers and meets the specified
requirements by their creative thinking. These system have obvious benefits and
innovative. It also has potential and feasible for the organization which is related to the
workplace goals and objectives.
Development of plan for the system
a) After chosen the system that we are going to take further, there is need to have
specialized assistances for the learning of new system through coaching and training. The
professionals are appointed for providing training and coaching to employees regarding
the new system adopted within the organization such as external consultants or advisors,
internal colleagues with specialist or technical knowledge relevant to the system for

Establish systems that support innovation 6
operating the business activities. These technological advancements needs specialized
assistances as every people in the organization are not aware of the system they are
adopting in recent times. The companies deal with the current and former specialized
assistance services for developing the plan for the implementation of system and
providing support for the system (García, 2015).
b) New system have great impact on the people, resources and organizational practices as
there is high performance of people within the organization and measurement of this
result makes it possible to identify the impact of adoption of system which smoothen the
business practices within the organization and leads towards the achievement of goals or
objectives related to the distribution, supply or creation of innovation culture or reward
system. The new system increases the effectiveness, degree of freedom or restriction for
the individuals, workers and teams and reduces the dependence of people on others for
accomplishment of their task in due time. It improves the quality of the physical
environment and responsiveness of the organization to the needs of the customers. it
reduce the misuse of resources such as experts in their particular fields, customer
databases and financial resources ad extent the collaboration and cooperation within the
organization.
c) Development of operational plan: an operational plan will refer to goals and objectives
and the specific ways that these will be achieved. It should also outline what resources
are needed in order to meet organizational goals and objectives (Binz, 2017).
Operational plan:
Task Timeframe Who is
responsible
Budget Other
resources
1. Employ
experts for
coaching
and training
for new
system
Two visits per
week
System
developer
professionals
System
developer
professionals
salary $20,000
purchase of
system
software
2. Effect
regular
Issues
produced –
Newsletter
editor,
p/copy
machine rental
Photocopy

Establish systems that support innovation 7
communica
tion with
employees
on quarterly
basis
January,
April, July
and
September
coaching
director,
development
officer
$1000 other
consumables $
500
machines
3. Develop
pathways
for
employees
within
organizatio
n to be
involved in
officiating
events
Officiating
course held in
July, other
activities held
throughout the
year
Officiating
coordinator
System course
costs $ 300
Officiating
manual $ 600
Officiating
system course
manual
d) Communication plan:
Purpose The current situation Objectives Who you
will need to
interact with
Methods
The purpose of
this
communication
pan is to ensure
the people
understand the
new system and
helps to achieve
the goals and
objectives of
New system:
leading from front
reward failure
create the culture of
innovation
making effective
teams
individual and group
To introduce
the new
system by
arranging
official
meetings,
conferences
where people
are informed
of new
The
employees
have to
interact with
the person
who develop
the new
system and
appoint some
experts
Official
workshop for
new systems
Meetings with
stakeholders
Emails
Phone calls

Establish systems that support innovation 8
new system Techniques:
Brainstorming
Main functions:
foster the innovation
encouraged to push
their limitations and
think beyond the box
to prevail honest and
open communication
 promoting
their ideas
and initiatives
system and
experts are
hired to teach
about new
system and
their use in
business or
working.
The necessary
specialized
assistance is
provided in
terms of
coaching and
training.
At the end of
the session,
the people
who are
attending
meeting
allowed to
ask or give
their opinion
on the ideas
by one-on-
one.
regarding the
coaching and
training of
new system.
One-one-one
meeting
e) Learning and development strategy:

Establish systems that support innovation 9
 Assessing the needs of coaching and training regarding the new system within the
organization as there is need for training and coaching of innovation culture,
reward failures systems and leading from front system because every employee is
not aware of the system developed (Tracey, 2015).
 Creating coaching or training specification as the objective of it is to ensure that
everyone get the knowledge of new system and its benefits to the organization as
well as individual itself. The progress of this system is measured by monitoring of
productivity from the past records before the development of new system.
 Considering the learning styles and personality of those people who are involved
in it as people working within an organization are different and have different set
of mind towards the new system so that ways must be adopted by considering
their learning and personality style.
 Planning of training, coaching and evaluations: it must include the time, place of
the training and employees who need it. The new system related things must be
discussed by way of presentation or one-on one meeting within the organizations.
 Designing materials and the methods as the various methods must be used such as
on- the job training, job rotation, mentoring for the new system. Along with this,
the various materials can be used such as meetings, workshops, conferences
(Mabogunje, 2015).
Trial of the system
a) System proposal:
 The system which is developed fosters the innovation, encouraged to push limitations and
think beyond the box, prevail honest and open communication, promoting ideas and
initiatives. This is developed to enhance the creativity and innovation. This benefited the
people and the organizational practices by reducing the time and increasing the effective
leadership. This system costs less than the progress it gives to the organization as well as
people. Various experts are hired for training and coaching purpose. Risks involved in it
are less as they are made according to the needs of current system. The use of it begins
after the implementation. The trial of this system is helpful as it ensures the people about
the innovation and they make up themselves for implementation of this system. the only

Establish systems that support innovation 10
things which the organization wants from employees is innovative and creative ideas for
effective working and attain goals (Cui, Et al, 2015).
b) Parameters for trial:
 Resources: have adequate resources such as past records of systems, software and human
resource, financial resources and technical resources.
 Finance: have adequate finance for implementing the developed system
 Time: consumed less time in implementation.
 Staff: experts are hired for providing coaching and training to employees.
c) The implementation plan to initiate trial involved new technologies and learning process
and techniques related to the project management and new system developed so that
everyone is feeling ease in communicate effectively. There are no few areas such as
human resource where development of skills and knowledge is required so that they do
not require for hiring experts for training and coaching. The software and other
equipment are working properly (Aslan, 2017).
d) The system developed within the organization is accomplishing the goals and objectives
of innovation and creativities. It can easily foster the innovation by leading from the front
and create the culture of it. Due to this system everyone is getting understand their roles
and responsibilities. The skills and knowledge which are put in it are apparent. There is
no issue found in the schedule and the budget and does not need any kind of revision. The
methods used for this system are effectives and there are still somethings which needed to
be improved on timely basis.
Conclusion
From the above study it is concluded that the systems which are developed within the
organization helps in attaining the organizational goals or objectives. In this report the effective
system is generated which fosters the innovation and enhance the creativities of the work among
employees of the organization. The culture of innovation is developed due to the effective use of
new system and efficiency has increased for accomplishment of given tasks. Furthermore, new
technologies involved training and learning among the employees so that training session is
arranged for the employees to learn the new system and make appropriate use of it.

Establish systems that support innovation 11

Establish systems that support innovation 12
References
Aslan, H.K., 2017. Establishing an innovation culture and strategic entrepreneurship. In Global business
strategies in crisis (pp. 169-184). Springer, Cham.
Binz, C. and Truffer, B., 2017. Global Innovation Systems—A conceptual framework for innovation
dynamics in transnational contexts. Research Policy, 46(7), pp.1284-1298.
Cui, T., Ye, H.J., Teo, H.H. and Li, J., 2015. Information technology and open innovation: A strategic
alignment perspective. Information & Management, 52(3), pp.348-358.
Del Giudice, M. and Della Peruta, M.R., 2016. The impact of IT-based knowledge management systems
on internal venturing and innovation: a structural equation modeling approach to corporate
performance. Journal of Knowledge Management, 20(3), pp.484-498.
Dewald, U. and Truffer, B., 2017. Market formation and innovation systems. In The Elgar Companion to
Innovation and Knowledge Creation. Edward Elgar Publishing.
García-Álvarez, M.T., 2015. Analysis of the effects of ICTs in knowledge management and innovation:
The case of Zara Group. Computers in Human Behavior, 51, pp.994-1002.
Kerzner, H., 2017. Project management: a systems approach to planning, scheduling, and controlling.
John Wiley & Sons.
Liu, D., Gong, Y., Zhou, J. and Huang, J.C., 2017. Human resource systems, employee creativity, and
firm innovation: The moderating role of firm ownership. Academy of Management Journal, 60(3), pp.1164-
1188.
Mabogunje, A., 2015. The development process: A spatial perspective. Routledge.
Nylén, D. and Holmström, J., 2015. Digital innovation strategy: A framework for diagnosing and improving
digital product and service innovation. Business Horizons, 58(1), pp.57-67.
Quirke, B., 2017. Making the connections: using internal communication to turn strategy into action.
Routledge.
Schot, J. and Steinmueller, W.E., 2018. Three frames for innovation policy: R&D, systems of innovation
and transformative change. Research Policy, 47(9), pp.1554-1567.
Tracey, B.D., Duraisamy, K. and Alonso, J.J., 2015. A machine learning strategy to assist turbulence
model development. In 53rd AIAA aerospace sciences meeting (p. 1287).

Establish systems that support innovation 13
Wesfarmers. 2018. Wesfarmers annual report. [Online]. Available from:
https://www.wesfarmers.com.au/docs/default-source/asx-announcements/2018-annual-report.pdf?
sfvrsn=0 [Accessed: 22/08/2019]