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The term “Innovation” refers to the procedure of translating an invention or idea into a product or service that creates value for end-user or for which consumers are willing to pay. For businesses, this could mean employing new ideas, improving existing services or creating dynamic products  (Andriopoulos and Lewis, 2010). It act as a catalyst for business growth and success and help firm to grow and adapt in the marketplace. The given report is based on ASDA which is a leading British Supermarket Retailer. Main purpose of this report is to cover past, present and future innovation capabilities and activities of given firm through conducting innovation audit.

Company Overview

ASDA is globally renowned British supermarket retail merchant, since 1965. It is founded by Fred and Peter Asquith.  Besides its core supermarkets, the organization also deals in providing number of other services including financial and mobile services. In 1999, it become a subsidiary of Walmart which is an American retail giant. Today, ASDA falls in the category of most -well and reputed brands of UK. Currently, it operates in more than 25 countries with over 642 stores all across the world.

Innovation Audit

Before we undertake the innovation journey of ASDA, it is better to know from where we are starting. Thus, an accurate and genuine assessment of company's innovation, creativity and agility capacity is necessary. An innovation audit take a glance at various issues to perceive what is functioning well and what is obstructing development or innovation in the business. The primary objective of this audit is to identify the exact strength and weakness of company's innovation practices & processes and also to discover best possible ways to improve overall performance. Five key aspects of innovation audit are discussed below:-

  1. Innovation Strategy: It include to what extent the innovation strategy is effective, clear and communicated (Seebode, Jeanrenaud and Bessant, 2012). But before developing strategy, it is important to identify what key problems were overlook by company and how it can be solved through embedding innovation.


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.


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


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.

  1. Idea Generation: It define the extent to which there is positive and collaborative approach towardsdeveloping customer-centered ideas (Lundstedt and Colglazier, 2013). This means idea generated by firm must provide high level of satisfaction to customers.


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.  


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. 


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. 

Simultaneously it allow customer to collect online order as well as take returns. In future when customers visit ASDA store, they can simply scan a product barcode sent to their smartphones at the Parcel Tower  and gets it order within 60 seconds. In-fact for capturing high market share, company has decided to provide its service to third party partners as well such as Decathlon, Missguided and Asos. By implementing this service, ASDA aims to increase its per day customer visits by 40 million by 2019.

Prioritisation: It define the extent to which most suitable ideas are selected for implementation (Tschirky and et. al., 2010). There are many ideas generated by company but selecting most appropriate and suitable among them is a challenging task.


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.


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 buy