IMPACT OF INNOVATION

What impact does Innovation have on Morden business?

by

Table of Contents

CHAPTER 1: INTRODUCTION1

Background1

Rationale3

Aims and Objectives4

Research Questions4

Ethical Concerns5

Structure of the Dissertation5

CHAPTER 2: LITERATURE REVIEW7

Introduction7

Need for Innovation9

Knowledge & Innovation10

Spiral Effect12

Competitive Advantage15

Organizational Innovation15

Working in Teams17

Risks Involved18

CHAPTER 3: METHODOLOGY20

Introduction20

Research Design20

Researcher's Role21

Data Collection Procedures21

Data Analysis and Interpretation22

Quality and Verification22

Feasibility and Appropriateness23

CHAPTER 4: DATA ANALYSIS25

TESCO's Context26

Sainsbury Context27

CHAPTER 5: CONCLUSION30

Extract30

Recommendations32

REFERENCES33

APPENDIX36

Questionnaire36

CHAPTER 1: INTRODUCTION

This chapter of the research tends to develop an understanding and identify the reasons for conducting a research onto the identified topic. However, in the context of this paper this chapter would inculcate the notions related to the impact of Innovation on Modern business.

Background

Innovation literally means alteration or renewal, the word however tends to originate from the Latin verb 'innovare' which is deciphered as renew or renewal. Moreover, the term is non-specific in terms of new ideas and inventions, and used for their commercial implementation. In a narrower sense innovations resulting only from ideas when they are transformed into new products, services or processes that are actually successful application and penetrate the market. World today, is evolving at a rapid pace and so is everything else associated with it. Today the markets of the world are much more volatile than they were in the yester years. The primary culprit in this regard is rendered as technological advancement, thus leading the modern businesses to innovation (Rotemberg & Garth 1993, pp. 1305).

As the technology has improved tremendously it has also affected the manner or the buying behavior of the customers. As there are various choices available to the customers today, thus the loyalty of the customers has gone down or has suffered, as a result. The customer of today is much more rationale than the customers of yester years where the choices or the buying behavior was dictated by the family, friends or other external sources. Seeing that, the technology has evolved it has shrunk the world into a global village thus more theories and studies are being done in order to understand consumer behavior.  Today the researchers are focusing on different aspects in order to decipher the modus operandi of the consumer behavior across cultures and among different societies. Therefore, in order to survive in a world which is much more dynamic and challenging the companies needs to thoroughly work on the consumer behavior and the forces which are responsible for crafting behaviors. 

There is great agreement that innovation is a necessary competency for the future of any firm and perhaps an essential element of long term survival. Innovation can be seen as a swirl of new ideas, new process, and new products. It is clear that today; society needs to understand how each of these facets - products, processes and ideas - interplays to keep businesses competitive in the future by adding economic value and the growth necessary in the marketplace. Bartlett and Ghoshal (1987) analyzed the innovation process in terms of "flows." The first was the flow of parts, components, and finished goods which are the flow of new ...