An organization needs to be updated and should be able to keep a track of the changes in the society so that they are able to perform well and incur proper profit from the market(Ngo & O’Cass, 2013). Carrying out the business normally might not be able to able to help the organization in the long run (Cheng, Yang & Sheu, 2014). An organization should be able to innovate different kinds of products in the organization so that they will be able to perform well in the competitive market (Prajogo, 2016). Innovations not only help the organization to gain more profit, but it will also be able to gain a good foothold in the market. If they are able to innovate new products, they will be able to stand out in the crowd (Souto, 2015)
The present report will look into the operations of Wesfarmers and the innovation that they can bring in the organization. The business model that will help in introducing the innovation in the organization and the actions that need to be taken into consideration while introducing the innovation in the organization.
Wesfarmers started its business in the year, 1914 (Wesfarmers.com.au 2017). Western Australian farmers’ Cooperative started the company and now it has grown to be one of the largest companies of the country. After a constant growth in the market, Wesfarmers has now its business operations in supermarkets, coal, office supplies, industrial and safety products, department stores, energy and fertilizers and chemicals. Around 22,000 employees work with Wesfarmers and they have shareholder base of 530,000.
They aim to keep the shareholders happy and satisfied with handsome returns on their investments. The customers also come in the priority list of the company by giving unmatched services and the products with competitive pricing and professionalism. While thinking of about the shareholders and the customers, they have not overlooked the employees. The employees are being given a good environment to work in. moreover, the employees are given opportunities so that they can advance in their career and they are given proper compensation and benefits to the employees. Wesfarmers not only look after the growth and development of the shareholders and the employees but also the development of the country where they are working. They not only think about the development of the company in the country but also believes in giving opportunities to the people of the country for growth and development.
The organization makes full effort so that they are able to live up to the expectation of the community where they are working. They plan their work so that they are being able respond to the attitude of the people living in the community. The environment issues are also being taken care of the company. They see that their operations are not harming the environment and the society as a whole, which is turn helps the company from staying away from any problems.
As the customers are becoming prompt and fast in their activities, they are also expecting the retailers to deliver the products at an equally fast rate (Rayna & Striukova, 2014). Wesfarmers can make the use of drone to deliver the products to the customers. Drone may not be travel for a huge distance in the initial stage but in this way, the customers will get the things faster and there will be less pollution. One of the main concerns of Wesfarmers is to give a pollution free environment to the people who are living in the place. Using drones will help the organization to creates less pollution in the environment as they do not require any fuel to operate. However, the need to train the employees will be operating the drone to deliver the things to different places. In the initial stage, they can try for smaller distances to see whether the drone is fruitful for delivering the goods. If they are being able to do so, then they will be tried for longer distances and with more weight. Depending on the capacity of the drone, the weight and the distances will vary.
Another way, the innovation will be helpful will be by avoiding the normal road traffic and deliver the goods faster. They would not have to face the traffic while they are delivering the goods. For the customers who are staying in the vicinity of the shop will get the things instantly (Griffin et al., 2013). The shopkeepers will be able to deliver the goods the moment the order will be placed. However, the drone operators should not be given any other jobs in the organization. They should be solely responsible for delivering the products so that the purpose of the drone is solved for the company and they are able to carry out the business sustainably.
The business model can be used to understand the opportunities that is inherent in the innovation that can be applied in the organization.
Implementing the drone will help the sales to get better. The customers will get the things faster and hence the sales of the organization will rise accordingly (Gundry, Ofstein & Kickul, 2014).
The profit of the organization will also increase, as many expenditure of the organization will be reduced (Chesbrough, 2013). They would be able to cut the cost of the company as they would not have to buy the vehicles for delivering as well as cut the cost of the fuels. The drones may be costly but one time investment will help the organization to gain profit from the market for a long time.
Due to unmatched use of technology, the innovation will be attractive (Zhang, Zhao & Xu, 2016). The drone would not be normal delivery vehicles and hence, it would attract the clients as well as the customers.
The shareholders need to understand the need of the innovation. The unique value proposition for the innovation will be the reduce in regular cost and better customer satisfaction in the market (Boons & Lüdeke-Freund, 2013). The products will be delivered the local customers promptly and they will be happy with the services of the organization.
Customers will always be interested in things that are technology, as they will get the things faster (Bonazzi & Zilber, 2014). They will keep on trusting the company from where they will unmatched services and hence, the company will have competitive advantage over the market.
The strength of the innovation factor will be more as it will be high on technology and many organizations might not have thought about because of the initial expenditure (Ngo & O’Cass, 2013). The initial expenditure for the innovation will be more but it will be helpful, as it will cut the regular cost for delivery of the goods.
The drone should not be overloaded in the first go or too much technology should not be used initially (Cheng, Yang & Sheu, 2014). The drones should be tested by going to shorter distances and carrying less weight and gradually things could be improved.
The planning should be done in such a manner so that even if they have to stop the plan that could be done by doing much harm to the people of the organization or the customers. The investment should not be that huge that it harms either the people inside the organization or outside (Prajogo, 2016).
|
The problem the innovation can solve |
Benefits of the innovation |
Strategic response or plan |
Project options analysis |
Delivery of the recommended solution |
|
Rising cost of fuels |
No fuel required |
Use the plan for shorter distances in the initial stage |
As the drones are not using any fuel, the cost of fuel for the company will reduce |
first month of the launch of the plan |
|
Delay due to traffic on road |
As it is not taking the road, the customers will get the products faster |
Use the plan for shorter distances in the initial stage |
many local customers complain of delay mainly because of the traffic. Delivery by the drone will solve the issues |
first and second month of the launch of the plan |
|
Lack of employees to deliver the goods or lack of knowledge among the employees regarding the place of delivery |
Only one expert is needed to operate the drone and with proper knowledge of directions |
Specific places of delivery with limited amount of products |
At times, many employees do not have the knowledge of the place, which affects the operations of the work |
first month of the launch of the plan |
|
Rising pay scale of the employees will be taken care of |
One time investment for the drones and pay scale of the operator will be taken care of |
The employees who were responsible for delivery of goods will be asked to go for the longer distances or will be given job in some other departments |
As the days will pass, the employees will demand hike in their pay scale. The implementation of the drone will eliminate the issue |
first to third month of the launch of the plan |
Conclusion
After evaluating the business operation of Wesfarmers and the rise in the competition, it can be concluded that innovation should be a part of the business. It should not only be a part but an ongoing process of the business. Wesfarmers keep a check on the environment, employees and the customers while implementing any business and the innovation should also be for the sustainable development of the society and the organization. The innovation that has been suggested to the company is the use of drone to deliver the products rather than normal vehicles. After applying the business model and analyzing the innovation plan, it has been seen that the plan should be applied for shorter distances and carrying small amount of products. the technology should not be applied at once as there will be higher chances of failure. Starting slowly and then moving up gradually will help the organization to avoid any kind of risk at the later stage. The drone will be able to serve the customers in a better manner and will help in reducing the cost of the company.
References
Bonazzi, F. L. Z., & Zilber, M. A. (2014). Innovation and Business Model: a case study about integration of Innovation Funnel and Business Model Canvas/Inovação e Modelo de Negócio: um estudo de caso sobre a integração do Funil de Inovação eo Modelo Canvas/Innovación y modelo de negocio: un estudio de caso acerca de la integración del Embudo de Innovación y el Modelo Canvas. Revista Brasileira de Gestão de Negócios, 16(53), 616.
Boons, F., & Lüdeke-Freund, F. (2013). Business models for sustainable innovation: state-of-the-art and steps towards a research agenda. Journal of Cleaner Production, 45, 9-19.
Cheng, C. C., Yang, C. L., & Sheu, C. (2014). The link between eco-innovation and business performance: a Taiwanese industry context. Journal of Cleaner Production, 64, 81-90.
Chesbrough, H. (2013). Open business models: How to thrive in the new innovation landscape. Harvard Business Press.
Griffin, A., Josephson, B. W., Lilien, G., Wiersema, F., Bayus, B., Chandy, R., … & Oliva, R. (2013). Marketing’s roles in innovation in business-to-business firms: Status, issues, and research agenda. Marketing Letters, 24(4), 323-337.
Gundry, L. K., Ofstein, L. F., & Kickul, J. R. (2014). Seeing around corners: How creativity skills in entrepreneurship education influence innovation in business. The International Journal of Management Education, 12(3), 529-538.
Ngo, L. V., & O’Cass, A. (2013). Innovation and business success: The mediating role of customer participation. Journal of Business Research, 66(8), 1134-1142.
Olavarrieta, S., & Villena, M. G. (2014). Innovation and business research in Latin America: An overview. Journal of Business Research, 67(4), 489-497.
Prajogo, D. I. (2016). The strategic fit between innovation strategies and business environment in delivering business performance. International Journal of Production Economics, 171, 241-249.
Rayna, T., & Striukova, L. (2014). The impact of 3D printing technologies on business model innovation. In Digital enterprise design & management (pp. 119-132). Springer International Publishing.
Souto, J. E. (2015). Business model innovation and business concept innovation as the context of incremental innovation and radical innovation. Tourism Management, 51, 142-155.
Wesfarmers.com.au. (2017). Home. Wesfarmers.com.au. Retrieved 15 May 2017, from https://www.wesfarmers.com.au/
Xiaoren, Z., Ling, D., & Xiangdong, C. (2014). Interaction of open innovation and business ecosystem. International Journal of u-and e-Service, Science and Technology, 7(1), 51-64.
Zhang, Y., Zhao, S., & Xu, X. (2016). Business model innovation: an integrated approach based on elements and functions. Information Technology and Management, 17(3), 303-310.
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