Innovation and enterprise Just like aspects of any other organisation in order to be successful businesses must prepare for risks associated with innovation and enterprise alongside considering and being able to adapt to its benefits For a business to grow its market share the role of innovation and enterprise is crucially important Innovation involves the development of a product or service identifying new ways and methods of increasing business efficiency or improving the organization's overall profit which can also result in cut costs Another way a business can be innovative is by adding value to products This has become an expectation also due to its changes in the market and environment there has been an increase in demands for cheaper products with high quality Enterprise involves creativity being explored within organisations to ensure consumer interest This includes different types of methods Lateral thinking known as thinking outside the box this encourages the idea of considering an idea from the perspective of others Blue sky thinking known as the sky's the limit this represents creativity approaching something with no restrictions
Serendipity valuable ideas discoveries that occur unexpectedly or accidentally Benefits Improving existing products with demands for improvement increasing the organisations overall profit and satisfying customers Improving customer service this has the potential to boost buyer satisfaction and change perceptions of the organisation It can also increase profit due to happy customers wanting to return Business growth increase profits and market share by meeting consumer demands Branding improving the branding and advertising of a product can increase the product organisations popularity Risks Failing to meet operational and commercial requirements businesses have to comply with legislative requirements An interruption in the process this impacts on the quality of a product or service Failing to achieve a return on investment this is a massive risk Innovation and enterprise contributes to the success of Tesco in a variety of different ways Tesco is one of the top three retailers in the world As the business grew they began to sell more advanced products other than food They now operate with clothing electronics insurance etc They also produced their very own brand value Being a successful retailing business Tesco still face strong competition in the retail market There are many retailing organisations that provide similar products and services such as Sainsbury's and Morrisons This is called direct competition Tesco s one effective innovation is replenishment application system This collects the sale data from the checkout point This data is then transferred to the supply department The supply or warehouse department are easily aware of how much of a product is required in a store by using the replenishment application system This system helps
Tesco keep their costs low The replenishment application system send their data to their supply department The supply department can easily access the inventory management system Replenishment application system helps Tesco save a huge amount of money The system fulfills the customer's demand and replaces products in stores using the data they ve gathered It maintains stock control and product availability Another way Tesco is an innovative business is by approaching retail technology Tesco has set ambitious new targets for sales from new products telling suppliers it wants to be bigger and bolder on innovation To help achieve this the business want to develop stronger partnerships with their suppliers Managing the innovation Due to Tesco being a large organisation they must prepare and ensure that the effective innovation they use is crucial which is why there are roles of management This involves continuous monitoring analysing preparing and practising the innovation Today's business is very competitive so Tesco try to continue to come up with plans to innovate The people who manage this include the IT department both are responsible for managing the innovation Tesco s IT specialist research new innovation methods and ways to better their organisation to implement in their business Tesco s IT department have a very important role in the organisation The IT department work with customers production sales employees payroll invoice accounting management marketing and finance showing that the IT department must remain well organised in order to keep their information and personal documents protected This means that Tesco s information systems also play a very important role in managing all the data It also helps the organisation make decisions quickly and accurately when developing their functions of department By developing the technology used in Tesco allows them to develop the way they protect their data An information system contains information about the organisation and its surrounding environment This involves an understanding of the organisation management and the way it operates overall As a large supermarket Tesco has its own IT department However Tesco spend a lot of money on developing their IT department as they depend on using their own company software for security
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