This article consists of 13 pages and 2500words. MANAGING BUSINESS In order to have full access to this article, email us at thedocumentco@hotmail.co.uk
Ref No: 3695
The current assessment is based on two different parts. The first part is concerned with the discussion about innovation and newness and different factors related to it. The discussion about innovation will be made in the light of the retail sector and the benefits that can be obtained through it. MANAGING BUSINESS The concept of innovation and newness is concerned with firms trying out new things and bringing creativity within their daily procedures. The second part of the analysis would be based on a discussion about the innovation that has been brought about by Tesco within its retailing operations. Detailed discussion and analysis would be presented regarding the purpose of innovation that has been brought about by Tesco along with the ways in which innovation can have a significant impact on the operational efficiency of the organization MANAGING BUSINESS.
Part 1: Literature Review
Innovation and Newness
MANAGING BUSINESS According to Ngo and O’cass (2013), innovation and newness refer to the change and the creativity that an organization brings about within its processes. The purpose of bringing about innovation for a firm is to increase operational efficiency and gain significant competitive advantage. As a result of that, managers of different organizations are constantly involved in bringing about different kinds of innovations from time to time. According to Jafri (2010) increase in the global level of competition coupled with the saturation of local markets prompt retail organizations to constantly look towards bringing about the significant level of innovations in various processes.
In the view of Yu and Hang (2010), there are different forms of innovations that are brought about by an organization such as architectural innovation, radical innovation, and incremental innovation along with disruptive innovations. Different kinds of innovations have different characteristics and consequences of an organization. As stated by Menguc and Auh (2010) innovation in an organization is applied in different processes. One of the processes in which innovation is adopted is the function of product development. Innovations are brought about a firm within the designs and manufacturing process of a product in order to provide valuable consumer experience. On the other hand, in the view of Melville (2010) organizations are also involved in bringing about innovations in its processes. Some of the ways in which innovations can be brought about by organizational processes are changing in the operational techniques and production along with bringing about necessary modifications within the quality management approaches MANAGING BUSINESS.
Role of Innovation in Operations Management
Figure 1 Slack Model of Operations Management
(Source: Slack, Chambers and Johnston, 2010)
The above model of operations management indicates the different level at which innovations can be brought about such as designing, planning, and control along with innovations in the overall strategy of an organization.
According to Goodale, Kuratko, Hornsby, and Covin (2011) bringing about the continuous level of innovation has a positive impact on the efficiency of the operations management practices that are performed in a firm. Similarly, it has been reported by Kim, Kumar, and Kumar (2012) that effective innovations that are brought about by the processes of a firm enable it to enhance the level of its competitiveness in the industry. Therefore, bringing about innovation is important for firms to enhance their competitive advantage. On the other hand, the findings from the analysis presented by Herrigel (2010) state that implementation of innovations enables firms to reduce their operational cost. Reduction in the overall operational cost of a firm occurs due to increase in the efficiency of operations as a result of implementing innovations.
However, organizations generally have to incur significant cost while implementing innovations within its different processes. The management in order to execute innovation needs to make a considerable investment which can result in the increase in its overall operational and production cost. Therefore, the element of cost needs to be taken into consideration while executing innovative practices (Chemmanur, Loutskina, Tian, 2014). Conversely, it is stated by Story, O’Malley, and Hart (2011) that the process of innovation can result in bringing about significant disruptions in the normal course of activities of a firm.
Role of Innovation in Retail Sector
Since innovation results in the increase in the productivity of different sectors and operations in a particular organization; therefore, it also has a positive impact on the operations of the retail sector in an economy. Therefore, it has been stated within the analysis of Sorescu, Frambach, and Singh, Rangaswamy and Bridges (2011) that innovations bring about increase in the efficiency of various processes that are performed within a retail organization. According to Oh, Teo and Sambamurthy (2012) one of the ways in which innovations can be brought about within an organization is to incorporate the use of information technology within different processes.
In the view of Molenaar (2016), the retail sector is required to step up its efforts in terms of adopting latest advancements in information technology. Use of different kinds of technological applications can enable organizations in the retail sector to provide valuable experience to the customers. Besides, it has been illustrated that the use of technology enables retail sector organization in tracking and tracing direct communication towards the end users. Similarly, it has been stated by Rose, Clark, Samouel, and Hair (2012) that the concept of e-retailing has gained significance in the recent times with the view of bringing about innovations in different activities that are carried out within a retail sector and provide valuable services to the buyers.
The introduction of technology in the retail industry is important considering the significant nature of competition that exists in this industry. In the view of Collier and Sherrell (2010), one of the factors that contribute towards the development of e-retailing is the convenience that it offers to the consumers. Innovations in the form of information technology offer organizations and the customers to engage in the process of online shopping. Therefore, it can be stated that the increasing trend of using information technology in the retail sector had led towards bringing about significant revolutions in this sector in the long run.
One of the theories that can be linked with the process of implementing innovations in the retail sector is the theory of continuous improvement. According to Zu, Robbins, and Fredendall, (2010), the process of continuous improvement illustrates the systematic changes and modifications that are being brought about in the performance. Since the process of bringing about innovations in the retail sector brings about improvements in the performance of a firm; therefore, this theory has been linked to the importance of innovation in the retail sector.
Part 2: Primary Research Task
Access Statement: Methodology
How you gained access?
I gained access to the relevant information by means of visiting the organization and talking to the relevant individuals there regarding the innovation and its benefits. The organization regarding which information was gathered was Tesco.
Method of Information Collection
Information was collected through the use of a questionnaire which was presented to the managers of the organizations……
Recent Comments