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    Role of Innovation Management in Sainsbury

    Question :

    This assessment will cover certain questions which are like - 

    1. Annelyse the effective findings and the research thorough which the growth can be managed.
    2. What are the recommendations for all such areas of innovation for Sainsbury.
    Answer :


    The term innovation management is defined as those process or activity which an establishment implies to innovate or introduce any new product, policies, ideas into present marketplace. This study is wholly based on the topic called “ creating value through innovation management”. In current era of globalised world, there is an intense level of competition of challenges among companies which directly impact its potentiality in acquiring competitive advantage in an impressive style. The aspect of innovation management enable an organisation to place their brand in an aggressive position and also attains sustainable growth and development in competing industry (Biemans,  2018).

    Therefore, innovation management is regard as an important component for developing value for organisation because with the execution of such concept it helps them to evaluate or determine macro and micro business environment. Along with this, it assist business to remain competitive for long run among competitor. In context of this project, Sainsbury company has been regarded which is a reputed supermarket chain in UK marketplace. The present report highlights the role of innovation management in global aspect, implication of relevant theories or models of innovation for accomplishing the competent position among competitors.

    Role of innovation management and its impact on global business   

    In order to face all sort of rivalries, it is essential for every form of organisation to adopt the aspect of innovation management within its business premises. This is because, it drive them to analyse as well as understand its internal and external business environment in order to gain competitive advantage within prescribed time limit. Big companies put under pressure of international competition which is a major instrument for the management of innovation. Coordination specialists and organisational impediments are identified as one of the major issue which majority of the company faces while operating their business function at global pace. Hence, innovation is generally viewed as the core engine or drive of economic enhancement in the global economy in today's marketplace (Clauss, 2017). In  regard of Sainsbury, introducing innovation into existing practice empower them to obtain produce with improved quality and also to  face all current and upcoming threat of challenges in an effective manner. Some of the role of innovation management within Sainsbury are discussed below: 

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    Enhance workplace productivity:

    The foremost role which innovation management  render into business function is that it help organisation to enrich the overall performance of each manpower towards the accomplishment of organisational goal in a better way. In context of Sainsbury, implementing innovation empower them to invite diverse working style or culture as well as alteration in  employment policies and regulation as per marketing trend or demand. With the help of such initiation, Sainsbury can be able to transform its workforce into competent manner who put their best contribution towards business defined goal by sharing novel ideas or views and it results in improved way of company's productivity. Along with this, it help Sainsbury to manage its managerial and operational function very smoothly at global pace in an amended way.   

    Improves customer sentiment:

    In this determinant, it is concern with fulfilling the requirements of customers in an efficacious and economical manner in order to obtain profit maximisation (Peñalvo, Blanco and Echaluce, 2015). However, in this context, employee engagement and involvement plays a significant role as they are viewed as a lifeblood for any type of establishment. The idea of innovation enable Sainsbury to create increased degree of creativity and entanglement among manpower as it empower manager to invite each personnel for business activities. Due to which, employees acquire high level of motivation and encouragement from working condition that motive them to give full effort to produce best quality product or services to targeted consumers.   

    Enrich competitive advantage:

    When an establishment make an effort to implement innovation in its functional unit, it help them to acquire highly skilled and talented workforce who are capable to input novel opinion for the betterment of firm. Due to this, it aid Sainsbury to take corrective course of action and also to analyse its competitors potentiality that lead them to gain competitive advantage at international level in an impressive style.    

    Optimise operational efficiency:

    This aspect signifies that the term innovation is not only restrict with introducing new commodity or service within industry but also it covers the area of improving business performance and efficiency (Gerlitz, 2016). In relation to Sainsbury, by obtaining the view of innovation management, it benefit them to evaluate the market trend and customer taste and preference. Moreover, it also assist firm to allocate the required resources at optimal manner which lead them to maximise the wastage  of product that  raise Sainsbury overall operational  productivity at global pace.

    Henceforth, the above explained role of innovation management help Sainsbury to carry out its managerial and operational function at internal level in an improved manner. This is because, with the adoption of innovation, Sainsbury are benefited by highly capable personnel, innovative technology, effective strategies to enrich the organisation process and many more which enlarge its market share or size in an improved way.    

    However, as per the scenario of present day marketplace innovation is becoming the fast growing element in majority of the organisation as it is considered as an important factor to achieve long term success and growth. In addition to this, implication of innovation directly influence the performance of different level of an organisation i.e. operational, tactical and strategical (Goffin and Mitchell, 2016). Although, it empower firm to accomplish sustainable growth and enhancement still it impose various kinds of challenges that impact all level of an organisation. Some of the challenges has been identified  which Sainsbury strategical, tactical, operational level undergoes and are mentioned beneath:


    Resistance to change: In this, the primal challenge which Sainsbury face while executing innovation within existing working culture is that lack of involvement of employee towards the same as they denies to adopt innovation or change in their working culture. In this relation, it restrict Sainsbury from exploring and enlarging their productivity and sales performance in an amended way.

    Ineffective strategies: If an establishment implies innovation at constant time duration it will help them to proactive in nature instead of being reactive marketing challenges or environment. Therefore, Sainsbury miss majority of the innovation strategy that reduce its capability to cope with all sort of current and emerging market trend of competitors and it directly influence  company's decision making procedure (Vivanco, Bernardo and Cázares,  2016).


    Ineffective communication: In tactical level, the initial challenge which Sainsbury face during managing innovation management is the improper flow of communication among team members. Such kind of issues threat generate misunderstanding, misconception, confusion, ambiguity, conflict of interest and so on  that decreases the overall profit margin of organisation and also reduces their brand image among competitors.

    Lack of collaboration: In this, another problem which Sainsbury come across while acquiring innovation management at international level is that lack of collaboration within manpower. Due to this, it hampers the entire working process of organisation and restrict them to enlarge their market division into new geographical region in an effective way.  


    Lack of resources: Under this, the major issue which operational manpower faces while processing the innovation management  in present working culture is the there is no availability of required factors of production like men, money, technology and so on. Therefore, it reduces the overall productivity of company and lowers down the quality of product or services which impose negative impact on Sainsbury's brand image.    

    Scarcity of raw materials: Under this, Sainsbury meet a scarcity of raw materials during functioning the innovation management at global pace which does not allow them to meet out the requirements of customer demand and need (Inkinen,  Kianto and Vanhala,  2015). IN this regard, company fails to evaluate and understand the capability of organisation to cope with competitors strategies and tactics in order to obtain competitive advantage within competing marketplace.

    Henceforth, the preceding mentioned challenges of various level of organisation while operating innovation management  at global level states that taking corrective techniques and strategies help company to accomplish their defined objective in a better way.

    Enriching communication process: The primal thing which Sainsbury can implement in its business process is that they can generate all kind of business information to manpower in clear and transparent manner. With the help of such action, Sainsbury can bring high level of coordination and collaboration among employees that empower them to attain sustainable growth and development in an impressive way.   

    Delegation of roles and responsibilities: The another action which Sainsbury can impose is that by taking attempt to determine the potentiality and capabilities of employees and based on that delegate them roles and responsibilities. With the initiation of such action, it empower establishment to acquire best position within competing industry in an innovative and creative style without nay hindrances (Kasemsap, 2016).           


    IN today's' marketplace there is a huge amount of rivalry among companies which empower majority of the organisation to implement  the thought of innovation into its functional unit. This is why, because innovation management plays an significant role in making them capable of coping with all kind of existing and upcoming macro and micro threat or challenges in order to place the brand in an aggressive or competitive position. There are different theories or concepts of innovation management which render proper guidance or direction to organisation in terms of enriching overall sales performance among competitors. In context to Sainsbury, they take an initiative in adopting some of innovation management theories into its business process are as follows:  

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    Schumpeter’s Theory of Innovation

    Under this theory of innovation, Schumpeter’s states that the concept of innovation is an essential element for organisation as it regraded as the major reason for increased investment and business fluctuations. Moreover, this theory signifies that the term innovation means modification or alteration in the method of production, transportation of new product, change in industrial organisation, opening of new market and many more ( Manzaneque, Ramírez and Soto, 2017). Moreover, it highlights that innovation not only mean invention but it also involves commercial application such as innovative technology, required raw material, effective methods, new sources of energy. Along with this, Schumpeter’s developed a model which contain two stages i.e. first approximation and second approximation. However, in first approximation, it is concern with those aspect which defines the primary or initial impact of innovatory ideas on the other hand, secondary approximation relates with subsequent outcome acquired from application of innovators.

    First approximation: In this stage, it starts with economic system in equilibrium in which there is no existence of involuntary unemployment, firm mc=mr (marginal cost is equal to marginal revenue) and price = average cost. For example: if Sainsbury take an initiative to implement innovation into working condition then it needs enough source of amount which help them to reach determined goal within prescribed time limit. However, for attaining the same company approach various sources of funds such as bank credit, family, friends and many more that lead them to attain improved level of productivity in an amended way ( Castro,  2015).          

    Second Approximation: This approximation deals with certain waves which has been generated by previous approximation. In this, speculation is recognised as a main component of the second approximation. The primary wave of this expansion can begin which is specifically in the industries of capital goods and it expects that this upswing model have to remain permanent and as a result it is borrowed heavily. In this approximation, customers expects costs for increasing in future which went into debts that can be acquired by durable goods of consumers. Such heavy indebtedness can turn out to havoc when process began to fall down. Both consumers and investors may find it tough for meeting obligations and such circumstance can lead to panic and after it can lead to even depression.

    Open Innovation Model

    This innovation model was determined as an utilisation of purposive outflows and inflows of the knowledge which was accelerated the internal innovation and expansion of markets for the usage of innovation. This model was introduced by Henry Chesbrough 10 year ago. As per this model, it has been ensured that an organisation for innovating its products or services can use both internal as well as external ideas. This model is completely opposite of traditional model it includes inflows and outflows of information and knowledge for accelerating internal information and expansion for market for external usage of information. This model includes managed information exchanges, strategic with actors who are outside the organisational boundaries. They aim at integration of their knowledge an resources towards the innovative procedures of an organisation ( Nambisan and et.al.,  2017).

    This innovation is considered as more participatory, more decentralised and more distributed approach towards innovation. This approach is determined as a great way for accessing the external knowledge and in determining certain methods to do new and innovative things. Open innovation helps in offering the organisations a way for accessing their knowledge and make it expertise which is beyond the internal resources. By bringing open innovation in an organisation can unlock different advantages.

    If Sainsbury will bring open innovation in its innovative techniques and solutions than it may come up with innovative techniques and ideas which are out of the box. For instance, Sainsbury had never thought about launching a car or mobile phone sets. This will also help this organisation in lowering down its cost as with this innovation, organisations can access towards new ideas without including a completely new developers and engineers on their payroll (Nieves and Segarra-Ciprés, 2015).

    Disruptive Innovation

    The theory of disruptive innovation has been developed and analysed by American scholar Clayton M. This theory aims at bringing up  and developing new value network and market which displaces the establishment of leading firms in market, alliances and products. This theory covers that a small company with little resources which can unseat an well-established and successful business enterprises which can be neglected by incumbent as it focus more upon profitable areas.

    Such innovation types can start-up typically and than enters to the markets with innovative and latest technologies which is used by it for delivering services or products which is better suited to the customers who are often overlooked at a slightly lower price. Than it moves towards the steadily up market till the performance is delivered by it which can be expected by customers while maintaining intact of benefits which can be drawn at early success of such innovation.

    This theory states that there are usually two kinds of innovation and technologies which an organisation has to deal with. Sustainable technologies are those which allow a business to increase the improvement in its operations on a predetermined frame of time. Such technologies are incorporated into an organisation that were primary developed for allowing organisations to stay competitive and maintain an status. In this regards, the disruptive innovation are less easy for planning and potentially it is more devastating for organisation which do not pay enough attention towards them (Shan, Song and Ju, 2016). For instance, Sainsbury  can bring artificial intelligence in its stores such as autonomous shops in which no human resource is recognised.

    Appropriate Innovation Model for Sainsbury-

    After discussing all the theories and models of innovation, it has been concluded that the best model which can be used by Sainsbury is Disruptive Theory of Innovation. The reason is that it will help in improving the overall experience of retail sector and will help the organisation in bringing out innovative solutions to products of this enterprise. There are various trends which can be used by this organisation of disruptive innovation such as it can introduce self driven grocery stores, internet of things can be used, it can expand its products online by using online technologies, and can also enhance the experience of personalise shopping such as installation of tablets, smart screens, and so on (Taran,  Boer and Lindgren,  2015).

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    The term innovation and management are two different concern yet they are interlinked with each other which help company to implement strategic decision in regard of innovation or invention of novel ideas or commodity into industry. As a result, innovation management is concerned with a systematic or organised promotion of innovation in organisation and involves the tasks of planning, organising, management and controlling.

    Further it includes that there are various innovative models and theories which can be used by an organisation to bring innovation in its overall functioning. For instance, open innovation will help the organisation to think out of the box and bring new technology and innovation in its functioning.


    From the above report, it has been concluded that innovation management refers to a procedure which helps the business in coming out with new innovative things and technologies. For long running in market, it is very important for an organisation to use innovative solutions for its overall business problems. For this purpose, an enterprise can use many innovation models and theories which will help it in long running of a business. Open innovation can take both internal and external paths to market for the purpose of advancement of their technology and innovation and this innovation will help to think about the ideas which an organisation may never have before.  Similarly disruptive innovation will help organisation in bringing out new techniques and innovative measures such as artificial intelligence which can help in improving the overall experience of customers.


    Although Sainsbury is developing to a large extent and is using latest innovative technologies for achieving the overall goals and objectives of a business. But there are certain recommendations that can made in this context which will help this organisation to bring up innovative solutions in an appropriate manner-

    • Sainsbury can indulge in market research and identify the innovative solutions that are used by its competitors which will help this organisation in providing technology with more additional feature. By using disruptive technology, this organisation can come up with an idea of autonomous stores in which there is no requirement of human resource. This will help in improving the shopping experience of customers.
    • For bringing innovation and technology, it is important for this organisation to train and develop its workers and upgrade their skills. This can be done with appropriate training and development programmes and certain technical skills of workers can be developed. This will help in bringing innovation in more flexible manner.

    You can visit more samples on innovation management - 

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