BMG743 Innovation and Entrepreneurship Assignment sample
Innovation is referred to as the most important and key factor for driving the success of any business. With the constant change in the taste and preferences of the clients and consumers, the constant requirement of the innovation of technologies is essential. In this report, the entire study will be concerning a civil engineering company, Murrill Construction Limited based in the UK. The current innovation strategies will be explored which are being followed by the company along with several challenges, which it is currently encountering, from analysing the opportunities and threats from the external environment. Additionally, a business model for innovation along with underpinning a theory will be discussed which would help the company in increasing its efficiency and productivity. The current business model of the organisation will be viewed in respect of what are the strong points and which are the areas that can be improved by application of the recommended theory of innovation.
Murrill Construction Limited is a civil engineering company, which is based on Greenford Road, London, United Kingdom. The company provides services related to engineering and construction along with maintenance of highway roads, town center regeneration schemes, civil engineering works, and services of works management (Murrill, 2021). The company was incorporated in 1985, mainly operating in the UK within the commercial and industrial construction industry belt. The revenue of Murrill is less than $5 million with an employee force of less than 250. The tech stacks, which are being used by the company, are Google maps API, Office 365, Font Awesome and PHP (Murrill, 2021). The company also provides services of designing signs, manufacturing of those signs and implementation. The shop of signs manufactures and designs a variety of different types of signs that can be used by buildings and highways or vehicles. Furthermore, the company has many years of experience on the works of highway maintenance, which enables them to provide end to end services. They manage a diverse range of work with huge quantities, and in order to accomplish that, the company has implemented a system of bespoke work management, for instance, SYMOLOGY, MATRISE and others. Furthermore, implemented interfacing with compliant systems of EtoN (Electronic Transfer of Notices) in order to generate work notice, which is required for compliance with the Traffic Management Act 2004. The system of works management assists in the commercial and operation teams in the management which delivers 30,000 orders of work ranging from a pothole to a multi-£million program of maintenance in a typical year.
The current innovation strategies, which are adopted by the company, are schemes of Watercourse and Flood Alleviation that will facilitate proper drainage system of the waters caused due to rain and washing off the streets, management of traffic by using several colourful signs in the street in order to abstain from accidents (CIHT, 2021). Furthermore, improvement of junctions is another strategy of innovation, which will facilitate smooth roadways for cars without creating traffic jams. Improved schemes of signalisation will help the cars to move freely without any accidents and without causing any turbulence in the streets. Additionally, the integrated transport hubs will help people and cars in proper transportation to different locations without any problems (CIHT, 2021). Corridor improvement schemes are further undertaken by the company in order to reduce the congestion in the priority highway junctions or corridors, which will simultaneously reduce the journey time of the passengers, increase the frequency of buses and others.
Murrill Constructions is operating in the construction industry of the United Kingdom. As mentioned by Erpen et al. (2021), the UK’s construction industry is also contributing to the country’s economy along with building their future through constructing homes, schools and hospitals. The construction sector of the UK has been identified to have the growth of 3.9% in between the years of 2015-2020 (IBISWorld, 2021). Furthermore, the data will be supported through the below mentioned graph.
Figure 1: Growth of Construction sector of UK
(Source: IBISWorld, 2021)
It has been termed as the second fastest industry in the country. Adding to this, employment in the construction sector has also seen to be growing 2.6% with employing over than 1,219,911 employees (IBISWorld, 2021). Therefore, the construction sector of the UK is known as the 6th ranked sector to have had tremendous employment growth over the years. Furthermore, the UK construction industry has several differences ranging from Water main, harbour, sewer system, infrastructure and many more. In this context, the construction industry of the UK has a high market share, which is more than 70% (IBISWorld, 2021). It can be stated that industry is growing and evolving with the passing period of time, which refers to several advantages and opportunities to all the organisations who are residing there.
One of the important competitors of Murrill Constructions is Balfour Beatty Plc. that operates internationally but it has its base in the UK. Moreover, Balfour Beatty Plc provides several construction services such as construction management, designs, civil and rail engineering and many more (Balfour Beatty 2021). Being a multinational organisation Balfour has the power to suppress the growth of Murrill in the market of UK, which can further be considered as a threat. In their latest annual report, Balfour is mentioned to have a turnover of £8.4 million (The Construction Index, 2021). The company has included several modern technical advancements like AI, 3D designing, Advanced Construction Robotics, VisualLive, and others that helps in eliminating negative impact on the environment and reduce carbon footprints (Balfour Beatty 2021). All such innovative steps, which are taken by Balfour, create threats for SMEs like Murrill operating in the UK to further expand their business.
Another competitor of Murrill in the UK construction industry is McAleer & Rushe Construction UK Ltd. The organisation has a skilled workforce, which enhances the way of operations along with improving the consumers’ experiences. McAleer & Rushe Construction UK Ltd has the latest turnover rate of £3.4 million (The Construction Index, 2021). Along with this, the organisation is taking care of sustainability and safety of the consumers, which is one of the key traits of McAleer & Rushe Construction UK Ltd (McAleer and Rushe, 2021). Moreover, the organisation has their strict program and quality measures that allows the organisation to have competitive advantages in the marketplace.
As identified by Papachristos et al. (2020), it is already mentioned that the contribution industry of the UK is witnessing immense growth, which reflects that there will be several opportunities in the marketplace. The industry has been analysed and the resources have come across that in the upcoming years the industry is expected to grow 4.1% between the periods of 2022-2025 (Business Wire, 2021). However, there are certain threats as well which can eventually slow down Murrill Constructions effectiveness in the market presence. One of the threats can be referred to the potential competitors in the marketplace such as McAleer & Rushe Construction UK Ltd and Balfour Beatty Plc who have already strengthened their customer base and have a strong grip over the marketplace.
Furthermore, lack of technological innovation can also influence the production and performance of Murrill Constructions. As demonstrated by Nicoleta et al. (2021), innovation in organisation along with creativity in design is the major aspects for a construction industry to flourish into the marketplace. The emergence of AI is the most impactful innovation that will effectively help the organisation to achieve competitive advantages along with less errors and mistakes. Therefore, it is essential to improve innovation and technology in the organisation to prevent potential threats and challenges (Nicoleta et al. 2021). Moreover, the government rules and regulation can also be termed as one of the threats of the organisation. Every country and its government have their different set of laws and regulations. The pressure of the government over the construction industry is huge, due to the carbon emission, wastage and population that are being generated from their factories on a daily basis. Furthermore, it became impossible to maintain sustainable practices in the country, which later hampered the sustainability index of the country (Haines and Berney, 2020).
Moreover, there are certain trends in the construction industry that should be implemented by Murrill Constructions to attain further opportunities. Therefore, the major trends are Building Information Modeling (BIM), utilisation of advantage methods and material and construction robotics for construction. Furthermore, through implementing these trends in business operation, the organisation will be able to follow suitable practices along with providing best quality outcomes to the consumers. The impact of these construction industry trends is tremendous towards being innovative which has been reflected in the following figure.
Figure 2: Impact of construction trend in industry
(Source: StartUs Insights, 2021)
Furthermore, consumer behaviour will be analysed through identifying the GDP rate of the UK, which is estimated to be 1.20% will raise by 0.30% in 2023 along with this, the consumer spending of the UK has increased to 342787 GBP million (Trading Economics, 2021). As it is identified that the growth of the country is increasing which means the consumer purchasing behaviour will be positive and reflects advantages for Murrill Constructions.
BUSINESS MODEL INNOVATION
Business model innovation is the way of developing unique and latest concepts regarding business, which includes strategies along with transforming the way of operating in the marketplace. As identified by Lanzolla and Markides (2021), the primary aim of the business model is to realise the sources along with improving the values and products for satisfaction of the consumers. Due to the emergence of the digital transformation of business model has come into being which enhances the creativity along with supporting the organisation to be more advanced in order to attain the business objectives successfully (Bocken and Geradts, 2020). Furthermore, it is very important for an organisation to have an effective business model that will provide a competitive edge in the operating industry to lead towards acquiring more profits. As demonstrated by Paiola and Gebauer (2020), business models are important for the companies to maintain reputation along with encouraging employees and investor to stay connected towards the organisation. Through understanding a business model, the organisation will be able to retain all its benefits and advantages (Bocken and Geradts, 2020). For example, Murrill Constructions can improve their financial stability through enhanced business model information. Through the business model, the organisation will be able to expand their business in future as well. Besides, through an effective business model, the company will be able to understand the possible strengths and weaknesses along with strategizing and planning to measure the possible threats and challenges for future operations (Lanzolla and Markides, 2021).
From the perspective of Murrill Construction, the organisational management intention has been driving towards the integration of advanced technologies for managing relational construction activities and operations. This feature can be noticed through their advanced junction and corridor improvement schemes, integrated signalization and congestion relief, and others (CIHT, 2021). However, this technological integration has been recognising a steady growth of the organisation with regards to emerge as the leading contractor in the field of highway maintenance and civil engineering.
Moreover, an integrated management system (IMS) has been included by the organisation with regards to support consistent quality with distinctive flexibility (CIHT, 2021). The emphasis upon innovation and a positive work environment has eventually been achieved by the organisation in this manner. Concerning the continuation of rapid growth in the construction market with study uplift of their financial feasibility, Murrill Construction might be able to empower their market position as compared with existing leading construction service providers in the UK market.
From this viewpoint, the consequences of incremental innovation can be recognised from the organisational perspective. The reason behind considering incremental innovation highlights the organisational intention of developing existing products and services and thereby trying to ensure business growth (Kobarg et al. 2019). Moreover, the consideration of integrated signalisation and other respective smart solutions are also expected to play a significant role in terms of enhancing their business model innovation with the development of unique and latest concepts. It can also highlight unique selling proposition on behalf of the organisation based on which distinct competitive advantage could also be ensured by them.
Hence, different positive implications of business model innovation can be seen from the perspective of Murrill Construction. With a profound focus on creativity through advanced technologies, the organisation might be able to improve its market position in the near future.
ANALYSE THE ORGANISATIONS CURRENT BUSINESS MODEL
● Respective shareholders and stakeholders
● Investors and creditors
● Respective learning partners
● UK construction industrial suppliers
● Civil engineering works
● Highway maintenance contracting
● Traffic and transportation-related engineering works
● Dedicated workforce
● Technological advancement
● High Quality services
● Smart solutions like IMS and others
● Disclosure of valuable information in the organisational official website
● Manual customer relationship
● B2B customer segment
● Government agencies
● B2C and D2C customer segment with potential construction clients
● Skilled human resource
● Adequate financial support
● Advanced technologies
● High-Quality services offered for relational civil engineering and construction activities through advanced technological integration
● Extended cost structure for supporting advanced technologies
● Cost optimisation strategy
● Less than $ 5 million revenue
● Revenue generated through construction and civil engineering activities
Table 1: Business model Canvas of Murrill construction
Considering the overall business model canvas for the organisation, the key activities highlighted extended civil engineering operations along with the conceptualization of highway maintenance contracting. Traffic and transportation-related engineering works are also adding a greater value to empower the organisational financial standings. Apart from respective shareholders and investors, Murrill Construction has paid attention to working with learning partners with an intention to increase the number of apprenticeships in their business (Housh, 2021). Another concern behind the consideration of learning partners highlights the recruitment of a skilled workforce in order to enhance the organisational service quality. In this aspect, the company has been looking to increase their partner base by creating strategic alliance with different UK engineering colleges and universities. The reason behind this move reflects to ensure a skilled workforce inclusion that might serve well in the UK competitive market. Successive apprenticeship period can improve the workforce skill.
Valuable resources for Murrill Construction include the existence of a skilled workforce along with decent financial support provided by potential organisational creditors and investors. Moreover, the inclusion of advanced technological integration under the shape of signalisation schemes, corridor improvement attributes, traffic management, junction improvements, and others are also playing a significant role to enlarge the organisational accountability and transparency as an innovative construction service provider (CIHT, 2021). Along with this, different other technological integration can also be notified from the organisational perspective including the attributes of Google maps, Apache load balancers, Outlook email providers and others
The organisational value proposition can be highlighted by notifying their skilled and motivated workforce recruited by maintaining a partnership with core organisational learning partners. In this case, innovative technologies for construction activities including the consequences of congestion relief schemes, flood alleviation schemes, and others can be considered (CIHT, 2021). These attributes are eventually increasing the organisational accountability as an innovative construction company in the UK market.
Customer relationship has been maintained in a manual manner within the organisation where valuable company information is provided on the official website. Both the B2B and D2C customer segment is served by the organisation. The company also submits tender to the government construction and engineering projects for serving to the public interest by constructing highways, roads and others. From the consequences of revenue streams, Murrill Construction can be recognised to be a small and medium enterprise with their revenue generation going underneath 5 million dollars (Zoom Info, 2021). Distinct cost structure has been maintained by the organisation as a subsequent part of supporting their technological advancement and relational construction operations throughout the country. Cost optimisation strategy is highly emphasised by the organisational management in order to extend their competitive advantage by recognising increasing consumer base ahead of the market rivals.
Strong points and areas of improvements
In accordance with the business model Canvas of Murrill Construction, the organisational strong points highlight their key partners and activities, resources, value proposition, cost structure, and others. However, the organisational customer segment and channels, revenue streams, customer relationship, and others can be identified for further improvement.
Different changes are likely to be included by Murrill Construction as a sequential pathway to ensure improvement of their existing business model. These strategic changes are highlighted below-
Murrill Construction should be attentive to increase the attributes of digitisation across their business activities. This might include the involvement of advanced construction technologies that are taking place in recent times across the industry. For evidence, the concept of Building Information Modeling (BIM) technology can be undertaken by the organisation that might add a greater value to enlarge smart operational insights within Murrill Construction (Oraee et al. 2017). With regards to ensure extended brand recognition over the market, existing customer relationship management system is another area of improvement with prolific attention upon digitisation (Gil-Gomez et al. 2020). Apart from that, the organisation is also recommended to utilise data collection applications as an integral part of empowering their marketing analytics and customer analytical approach. Drones technology is likely to be undertaken by the company along with 3D printing attributes. The consideration of virtual reality and wearable technologies along with the inclusion of artificial intelligence can also develop technological transparency of Murrill and thereby positively influencing their brand recognition.
Total quality management
Murrill Construction will have to look for a total quality management framework as an integral concept to further develop their existing value proposition. The consideration of a total quality management framework can benefit with developing the existing products and service quality on behalf of Murrill Construction. Moreover, this framework can explicitly benefit the company with relational fewer product defects that might lead towards the achievement of high customer satisfaction (Othman et al. 2020). The organisational cost optimisation strategy might also be supported with low operational expenses. The overall attributes can result in well-defined and positive cultural values within the internal organisational culture that might eventually motivate employees and workers to provide their level best performance according to the core organisational business values and objectives. The organisational value proposition is required to be improved to some extent with regards to ensuring the consequences of profound brand awareness of the construction industry that might be helpful for the improvement of the organisational position in the competitive UK construction sector. On the other hand, the company might also look forward to obtaining significant opportunities for market expansion by recognising growth of revenue stream with the enlargement of both customer segment and customer relationship.
Extension of customer segment and digital customer relationship management
Murrill Construction is suggested to extend their existing customer segment by considering both the B2B and B2C approach. In this regard, the organisation should look for developing their brand recognition with the intention of advanced technologies and thereby extending their opportunities of creating collaborative partnerships with governmental agencies. This factor might be beneficial for increasing organisational financial stability. The organisational revenue streams are needed to be improved with a greater consumer base obtained through the enhancement of the customer segment. Moreover, product diversification is eventually suggested for Murrill Construction with regards to the inclusion of residential construction activities throughout the UK market (Stadler et al. 2018).
Murrill Construction management and leadership must be attentive to conceptualise digital customer relationship management attributes as a subsequent part of obtaining operational flexibility. Moreover, extended customer satisfaction might be enabled by the organisation by referring to the concept of digital interaction and collaboration with potential customers over different digital channels and platforms (Belias et al. 2017). It can eventually provide a positive impact to ensure increasing customer retention. The provision of advanced chatbot options can be beneficial in this case where customers might be able to put their valuable queries and concerns that will be replied to by the organisation’s digital customer relationship manager.
Apart from the aforementioned recommendations, Murrill Construction should be attentive to expand their research and development facilities as a subsequent proportion to ensure increased service quality and thereby positively influencing consumer satisfaction.
From the above report, it can be concluded that Murrill Construction Limited has been using certain innovation strategies in order to enhance the efficiency and contribution of the company towards better transportation, maintenance of the streets, and others. The current innovation strategies can be briefed as adoption of schemes related to alleviation from water and flood and improving the sewage systems, integrating transportation hubs, schemes for better signalisation, and others. The industry has been seen to be growing over time creating several opportunities for the organisations residing within that location. Furthermore, there are several competitors of the company such as Balfour Beatty, which has amplified its presence over the country through various innovation techniques of artificial intelligence, advanced construction robotics, and others. Furthermore, by analysing the internal business model of the company it can be stated that the company has its dominance over the key resources such as skilled employees, financial support, and technical advancements. Furthermore, the key activities are in the strong position of the company along with value proposition, cost structure, and others. However, the company should focus on enhancing the streams of revenue, channel and channel segment, customer relationship, and others. The company could also widen its reach through intervening its brand on the social media platforms such as Facebook and others.
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