Assignment Sample  BU7030 Managing Innovation 


Innovation management is referred to as the managing process for innovative ideas which helps in improving productivity, creating revenue streams, increasing employee loyalty, and managing expenditures. Innovation management is significant for having a sustainable business and market appearance. For a company, innovation management enhances the capacity of society to act as a major factor in determining efficiency.

This report aims to focus on the critical evaluation and analysis of Sainsbury’s management innovation using Tidd and Bessant’s innovation model. This would highlight insights into Sainsbury’s innovation strategies and the impact of this organization’s internal resources on innovation management approaches.

Business Overview

Sainsbury is the second-largest grocery chain situated in the UK which operates over 600 supermarkets and over 800 convenience stores all over the world (Sainsbury’s, 2021). http://BU7030 Managing Innovation Assignment SampleThis company has been seen to provide a better customer experience through improving innovation strategies and this helped this company to gain more sustainability.

Critical Evaluation and Analysis of Sainsbury’s Innovation process

Identification of Current Innovations within Sainsbury’s

Refrigeration Innovation

Refrigeration is a foremost significant contributing factor to energy usage. Sainsbury aims to bring up a most innovative technical solution to lessen energy usage as much as possible through refrigeration techniques. This helped Sainsbury to maintain high standards of amenity and reliability as per customer requirements.

Sainsbury already is known to begin investing ample time, research, and money in refrigeration innovation (Sainsbury’s, 2021).http://BU7030 Managing Innovation Assignment Sample This company started partnering with the motor racing world which is helping Sainsbury to implement this innovation by investing in their projects. For instance, the motor racing world is known to use a new technology called dynamic airflow modeling which can be brought up into Sainsbury’s refrigerators.

As per the views of Du et al. (2021), “Computational Fluid Dynamics” helps to measure the airflow and heat transferring parameters within a refrigerator. This helps to reduce energy consumption and improve refrigeration efficiency through maintaining nominal air flow rate and evaporating rate and increases the efficiency of the refrigerator to reduce CO2 production.

This innovation step has enabled this company to create partnerships with technological leaders across the world of engineering which is a future success-gaining factor to reduce carbon footprint and fulfill customers’ demands regarding environmental health.

According to Kalia (2017), Foster Refrigerator is one of the foremost partners of this company for refrigeration innovation. This company helped Sainsbury to implement the Computational Fluid Dynamic technology successfully by investing in Sainsbury’s projects. The innovative outcome of this strategy helped Sainsbury to create improvement in organizational performance.

Smartshop Online Innovation

Online platforms have always been a great factor to improve customer services and experiences within an organization. Sainsbury embraces its motto to improve its innovation as a “Fast, Friendly and Convenient” model.

Implementing this model requires online support for this company. Sainsbury has been seen to focus on a new innovation called “Smartshop” which refers to a personalized digital app. This helped Sainsbury to speed up consumers’ journey and this provided consumers to have a better shopping experience. Due to the pandemic situation, Sainsbury’s total revenue has doubled up to 8.5% (Retailgazette, 2020)).http://BU7030 Managing Innovation Assignment Sample “Smartshop” innovation represents Sainsbury’s digitally grown business which increases the competitive situation in the market.

As per the views of Thompson & McLarney (2017), renovation plans through an online app established Sainsbury as a large digital retail business in this rival market.

This has been achieved by providing an easy shopping process to its consumers which created effective customer attraction factors. “Smartshop” innovation helped this company to increase flexibility in customer services and it doubled the interest of investors in partnering with Sainsbury.

It connected Sainsbury with local grocery stores and retailers digitally which helped this company to expand itself in different places and market segments. This innovation strategy improved Sainsbury’s sales by up to 15% percent, brand value, and competitive advantages which are affecting customer segmentation and service innovation within this organisation (Sainsbury’s, 2020).http://BU7030 Managing Innovation Assignment Sample

Application of Tidd & Bessant Process Models

4 P’s of Innovation

 BU7030 Managing Innovation

Figure 1: 4 P’s of Innovation

(Source: Inspired by Tidd & Bessant, 2020)

Product innovation mainly focuses on the service management strategy of a company. Sainsbury adopted “Aerofoil” technology and “Computational Fluid Dynamics” technology helped this company to improve its product innovation (Sainsbury’s, 2019). http://BU7030 Managing Innovation Assignment Sample

By these technologies, refrigeration innovation has been implemented which provides an expanded range of fresh and healthy food and groceries to customers such as fresh meat, fruits and vegetables, and bakery products.

Paradigm innovation mostly targets changes in fundamental principles of organizational functions. Sainsbury implemented the “Smartshop” innovation which represents changes in the technical strategies of this company (Sainsbury’s, 2021). http://BU7030 Managing Innovation Assignment SampleOnline apps created an easy way to achieve the principles of innovating customer services and organizational performances within the company.

Process innovation focuses on changes in the manufacturing process of products. As per the views of Rens (2019), the implementation of the “Smartshop” online app and refrigeration innovation reflect low advertising costs and energy costs respectively within Sainsbury.

Advertising costs have been reduced due to digital interactions with customers and energy costs have been reduced through Aerofoil technology and CFD technologies which represents the change in process of manufacturing products.

Position innovation represents a change in users’ desires and distribution services of an organization. By implementing refrigeration innovation and the “Smartshop” online application users’ desires have been identified clearly and Sainsbury reached out to more customers which helped this company to expand itself.

Refrigeration innovation ensured the quality of products and the “Smartshop online app” ensured better market positioning which reflects position innovation.

Innovation Activities

BU7030 Managing Innovation
Figure 2: Innovation Activities

(Source: Inspired by Tidd & Bessant, 2020)

Innovation activities represent the actions of implementing innovative ideas. This includes strategic factors, the process of implementing innovative ideas, organizational performance and learning outcomes of innovative ideas, and the networking system of implementing innovative ideas.

As per the views of Tidd & Bessant (2020), strategies for improving product innovation represent improving product quality. This can be achieved by the implementation of refrigeration innovation ideas through reducing risks of food contamination and CO2 reduction.

This has been achieved by encouraging new ideas in employees which reflects teamwork within the organization. On this note, meeting customer requests and desires serves as an additional strategy implemented to achieve product innovation.

Paradigm innovation represents organizational performance and learning outcomes which can be achieved by providing training to employees about aerofoil and CFD technology and methods of using online apps.

This enhances good relationships with employees and team members. Innovation in the process can be achieved by improving product quality by increasing employee productivity.

Online platforms can create risks in understanding the process of using applications and technology. The risks can be eliminated by providing proper training regarding customers’ demands. As per the views of Zastempowski and Przybylska (2016) Position innovation reflects the distribution strategies of products and networking processes.

Balanced Scorecard

BU7030 Managing Innovation

Figure 3: Balanced Scorecard

(Source: Inspired by Core, 2021)

The “Balanced scorecard model” is known to improve perspectives of financial, customer, internal process, and learning growth of a company. This model would help Sainsbury to develop a strategic planning and management system by aligning a vision of success and working consistency within this company.

Sainsbury’s innovation strategies can be improved by implementing a “balanced scorecard model” by improving communication with employees about accomplishing factors and prioritizing product, process, paradigm, and potion innovation (Core, 2021).http://BU7030 Managing Innovation Assignment Sample By measuring and monitoring the progress of these two innovations Sainsbury can achieve their goal to gain a competitive advantage in the market.

By identifying automation and software strategies for organizational assessment this model; would help Sainsbury to gain more profitability through customer services. Determining the authenticity of the goals and objectives of these two innovations this model would assist this company to produce good quality products for consumers. It can be said that this model would help Sainsbury by cascading its financial, operational, and performative growth.

A networking system can be improved by measuring target audiences and their cultures. The organizational culture within a company helps to increase employee interaction which enhances teamwork.

As per the views of Najafi-Tavani et al. (2018), the competitive market influences position innovation which emphasizes online innovations. Collaboration with other grocery stores increases the network which automatically increases a competitive situation. Sainsbury improves position innovation by introducing technological resources for refrigeration innovation and “Smartshop” innovation.


BU7030 Managing Innovation

Figure 4: Process of Innovation

(Source: Inspired by Tidd & Bessant, 2020)

Implementing the innovations helped Sainsbury to improve their management and organizational performance. Searching for the factors which are creating opportunities for innovative ideas is the most crucial part of the implementation.

Refrigeration innovation creates an opportunity to increase product quality through its beneficial parts such as a reduction in CO2 release and food contamination and providing fresh food.

By gathering all the correct information about internal resources and technological factors, opportunities for refrigeration innovation can be identified. By providing learning and training sessions about new innovative ideas such as refrigeration and “Smartshop” innovation, these innovative factors have been implemented and the selection of correct activity is vital because this helped this company to maintain its productivity and brand value among customers.

This increased the company’s financial resources for investment in the implementation. For the implementation of these new two innovations building good relationships with customers has been identified to be done by Sainsbury. As per the views of Pakurár et al. (2019), a good relationship with customers helps to achieve customer development challenges regarding product qualities and organizational lacks.

By exploring technical issues and applying detailed structures about possible solutions through online applications and platforms this company increased its market sales and employee efficiency. By identifying competitive advantages, the need of expanding the company in different places, and the cultural diversity among customers and their backgrounds benefits of implementing these two innovations can be achieved.

However, risks of these two innovation ideas such as lack of an understanding process of using online platforms and lack of understating Aerofoil and CFD technology have been eliminated through determining optimal operating conditions of this company. This provided benefits to improve customer experience and services as a whole.

Gap Planning

BU7030 Managing Innovation

Figure 5: Gap Planning

(Source: Inspired by Gómez‐Bezares, Przychodzen & Przychodzen, 2017)

Gap planning helps to determine shortcomings within an organization and it helps to eliminate those gaps by introducing proper management plans. The revenue gap is known to be created by failing to achieve targeted profit by a certain time.

As per the views of Gómez‐Bezares, Przychodzen & Przychodzen (2017), gap planning helps a company improve business efficiency. Business efficiency includes strategic and operational efficiency. Strategic gaps reflect a lack of desired development and objectives and operational gaps represent a lack of teamwork, cultural diversity, and lack of innovation within an organization.

By implementing a gap planning model, Sainsbury can improve its operational strategies and innovative strategies including revenue gaps and customer service gaps. This model would help Sainsbury to achieve its targeted amount within a targeted time period by introducing effective objectives and operating conditions as per the requirements of two innovative ideas of Sainsbury.

Analysis of Sainsbury’s Internal Resources for Innovation

Internal Resources

Internal resources refer to skills, practices, and abilities which a company possesses to increase its brand image and profitability. As per the views of Tulung (2017), the internal resources of a company include financial resources, human resources, branding resources, and technological resources. Sainsbury has been seen to possess its financial, human, technical, and branding resources according to its innovation strategies.

Human resources of Sainsbury increase workforce and employee efficiency which helps this company to implement its innovative ideas. Sainsbury has issues with hiring efficient people for improving their product quality which refers to being responsible for searching for efficient and knowledgeable employees (Sainsbury’s, 2021). http://BU7030 Managing Innovation Assignment SampleSainsbury has some technological resources such as software licenses, copyright management, and back accountants.

These technological resources reduce the risks of customer turnover. Enough equipment and enough availability of products are some major physical resources of Sainsbury. These resources attract more customers and increase the customer base of this company.

Impact of Internal Resources on Sainsbury’s Innovation Strategy

As per the identification of internal resources of Sainsbury, this has been seen that not having structured hiring processes impacts its innovation strategies. The lack of efficient employees due to the poor hiring process creates an issue of implementing artificial innovative applications.

This creates a negative impact on productivity which decreases the opportunities for refrigeration innovation as it requires good knowledge of Aerofoil and CFD technology among employees. As per the views of Lahti, Wincent & Parida (2018), having enough financial resources and physical resources such as enough machinery, enough equipment improves business profitability by making it easier to complete tasks and sales goals.

This helps this company to implement online applications and gain benefits through introducing new software to make using the process of the applications easier for consumers. This can be said that the internal resources of Sainsbury have positive and negative impacts on its innovation strategies.

Analysis of Influence of Organisational Culture on Sainsbury’s Management Approach to managing innovation

Organizational culture influences an organization’s innovation management by measuring its impacts and importance. Matinaro & Liu (2017) asserted that creating a work environment that supports innovation increases creativity and cultural diversity to build innovative skills.

Organizational culture helps to identify the lack of innovation and opportunities for innovations regarding employee productivity. Sainsbury’s organizational culture supports cultural diversity as well as innovative ideas for better sustainability. Sainsbury’s organizational culture helps this company to determine working values, self-values, and a better understanding of innovative outcome progress.

As per the views of Wipulanusat, Panuwatwanich & Stewart (2018), building innovation skills requires an effective workforce. An effective workforce emphasizes cultural diversity within an organization by providing value to employees from different backgrounds and cultures.

The organizational culture of Sainsbury helps it to improve employees’ innovation skills regarding Aerofoil and CFD technology which is needed to implement refrigeration innovation. Providing proper training and awareness to employees about cultural diversity Sainsbury developed online application services for customers.

The existing organizational culture of Sainsbury includes collaborative tools which help this company to increase employee engagement through creativity and innovation training programs.

Creative problem-solving is another tool that this company is using to maintain an organizational culture which also affects improving innovation skills such as risk-taking skills.

This helped Sainsbury to implement creativity within online application implementation and CFD technology. As per these influences of organizational culture, Sainsbury improved its innovative approaches within its managerial purposes.


According to the study, this can be concluded that Sainsbury improved its organizational performance by implementing refrigeration innovation and “Smartshop” online app innovation. Through the Tidd and Bessant model, two innovative ideas of Sainsbury showed the strategic, processing, and networking purposes of the 4Ps of marketing innovation strategies of Sainsbury. Sainsbury’s organizational culture supports cultural diversity as well as innovative ideas for better sustainability.

These technological resources reduce the risks of customer turnover. Enough equipment and enough product availability are some major physical resources of Sainsbury which attract more customers and increase the company’s customer base.

Additional models such as gap planning and a balanced scorecard model, gap planning would help Sainsbury to achieve its targeted amount within the targeted time period by introducing effective objectives and operating conditions as per the requirements of two innovative ideas.

The balanced scorecard model would help Sainsbury by cascading its financial, operational, and performative growth. However, the implementation of refrigeration innovation ideas through reducing risks of food contamination and CO2 reduction help this company to achieve customer demands of maintaining environmental health.

Implementation of online application innovation also helps Sainsbury to connect with more customers and gain a higher customer base. Henceforth, this report reflected the critical analysis of Sainsbury’s innovative perspectives.


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