Managing Innovation in Business

Past

ASDA has gained popularity for its innovative practices & consistently tried to bring new technology into its business model. During 2012, ASDA faced several issues like increased cost of transportation, high use of fleets and drivers which adversely affected it's overall operations and logistic department.

Present

The retail market is changing and that too at a faster rate. This enable ASDA to embed innovation in its existing business process model.

Future

Strong competition is growing in retail industry which makes ASDA to do frequent innovation in their businesses so as to attain high competitive advantage in the market place.

Past

Considering the problem aroused in 2012, idea is generated by ASDA keeping in mind to improve its delivery process so that goods can be reached  on time. The idea generated must utilise vehicle and driver resources in an effective manner.  During 2012, company projected to improve its supply chain operations so as to delivered transport efficiencies for supermarket giant. As a result, overall transportation cost of goods were reduced by using advanced map-based transport optimisation software. This system provide better routes & make use of drivers and fleet more efficient. Paragon's Multi-Depot software is strategically used by ASDA to precisely design routes of delivery and use of vehicles across its twenty two depots. By encouraging transport efficiency in this manner, ASDA had a chance to reduce road miles via enhanced use of its 1600 trailer units and more than 1000 fleet of tractor units.  

Present

In order to cope up with present situation, ASDA must focus on meeting customer requirement in a structured and thorough manner. Here the idea generated must provide high level of satisfaction to end-users. Presently, ASDA is trying 360 degree laser check-out at its Yok Store so as to provide convenient shopping experience to its target consumers. The new check-out system called Rapid Scan is introduced by ASDA who very easily picks up bar code from every angle, moving belt and cameras. At a moment, it scan more than 100 products in a minute and it is 3 times faster than manual scanning.  Every customer wishes to save maximum amount his/her time while doing shopping. By fulfilling this desire of customer, ASDA become the first one to invent this amazing machine to its shoppers. 

Future

For anticipating future projections, ASDA must improve its online capacities related with a new cutting edge technology. Along with this, company needs to focus on monitoring all interaction and traffic on its global website i.e. 24 hours a day, 7 day in a week.  ASDA will become the first one to install parcel vending machine in United Kingdom. Taking the advantage of high end technology, company has decided to implant automated parcel vending machine. It is  8ft wide and 16 ft tall that can hold up-to 500 parcels at a time. 

Past

The innovative software used by ASDA is Multi-Depot (part of Paragon Software System). With the application of this system, company aims to provide benefit to both customers and environment. Using fleet capability in an optimum manner results in decreasing vehicle emission and fuel usage. In total, 5-10% of transportation cost were saved by implanting this software. Further, the cost was re-invested into the business to reduce overall costs to shoppers. ASDA not only able to minimise its capital expenditure with the application of this system but also use existing resources in a cost efficient manner.

Present

In this competitive era, every company aims to deliver best product or services that gives high satisfaction level to its target consumers. Taking the advantage of this, company aims to provide convenient shopping experience to its end-users by implementing 360 degree laser check-out system. Knowing the fact that shopping habits of consumers are constantly changing i.e. people are looking & shopping around for greater convenience that ultimately saves their time, efforts and energy. By using high end technology, ASDA ensure a smooth shop for its potential buyers. 

Future

ToYou (Innovative Parcel Delivery Option) will act as a game changer in forthcoming period. Interest for internet shopping is consistently expanding, with it develops the hunger from online retailers to have physical impressions their clients can get to. With this, ASDA bridges the gap between consumer who what to return or collect their online orders while carrying out their weekly shop. Also it gives a reason to customer to visit ASDA stores.

Past

In 1979 barcode system was added to organisation which helped to track the quantity and volume of inventories. This was also the part of key marketing in Spalding, Lincolnshire and market changes. This was the easier option in terms of managing the order level, sales targets, level of recording the structure, improving the stock and management with in the organisation. Clubcard facility was also one of the customer attractive and exploring factor of retail culture in world wide in past decades. It develop the purchasing and investing power of customer and motivate them towards purchasing the goods and getting discounts and memberships. ASDA also started attractive schemes and offers to enhance the sale graph and purchase power of customers.

Present

There are a revolutionary changes seen in terms of innovation and cultural change in retail sector. ASDA is one of the retail sector organisation which also adopted some innovative changes in terms of exploring and emerging the business structure at next level. At present ASDA is adopting artificial intelligence, online trading and exporting goods and services to enhance the digital marketing. There are efforts were putted by ASDA in the direction of putting customer interest first and enhance the basic structure at next level.

Future

Technology has been shaping and disrupting traditional retail models for decades. There are new dimension and innovative changes are to be implemented in ASDA as introducing advanced customer support system, effective search engine and analytical tool for filter quality products are the main innovative changes to be done in proper manner. Local based marketing technology, virtual reality, personalised promotion, virtual mirrors, Haptic technology are the upcoming innovations which are to be implemented by ASDA.   

Past

In total, there were 21 depots of ASDA all across the globe covering main region including North East, North West, South East, South West and Midlands. It is obvious to have issues related with transportation when company is operating with such large fleet. In order to overcome these issues, ASDA optimise its supply chain operations by transforming its routes and logistics.  However, the system used proved to be effective for the company as it was in total saving 5-10% of total fleet cost of transporting products to stores. In-fact it comes out as a major success for ASDA in terms of reducing capital expenditure via better and optimum use of driver and fleet availability.  

Present

With the application of 360 degree laser checkout, ASDA is collectively saving time, efforts and energy of its end-users. This has the make the process of shopping easier and convenient for customers. Presently, ASDA is the only store in UK that is using this technology. Shoppers only need to unload their items onto the conveyor belt, then groceries are scanned through to bagging. This makes the check out time three times more faster than manual scanning. Additionally, it also improve the overall efficiency and performance of company and enables them to gain high competitive edge in the market place.

Future

ToYou ASDA's latest parcel delivery service is going to provide high competitiveness level to company in forthcoming period. It has been estimated that by implementing this system, ASDA will be able to increase 40 million extra visit of customers per year. Along with this, projected profits going to be increase by 1.5 billion on annual basis.