Introduction to Artificial Intelligence and its Significance for Modern Organizations
The artificial intelligence based process can be named as the intelligence of the machines. The research that has been conducted with respect to the process of artificial intelligence is considered a significant part of the computer science based study. The study that has been conducted by different researchers based on the usage of artificial intelligence in various organizational processes has been able to play an important role in the achievement of different goals. The objectives that have been set by the organization can thereby be achieved with the help of proper implementation of artificial intelligence (McKinseyGlobalInstitute, 2018).
The scope which has been developed by the process of artificial intelligence has played a significant role in increasing the needs for high intelligence levels in the processes of an organization. The effect of artificial intelligence has also faced some criticism. This concept of artificial intelligence had been developed in 1956. The implementation of artificial intelligence based processes have thereby been an important part of the successful operations of the modern organizations (McKinseyGlobalInstitute, 2018).
The organization which has been considered for the analysis in the report is Woolworths. The study will thereby be based on the ways by which the company is able to implement artificial intelligence in its different processes.
Woolworths Group Limited is an Australian organization which has an extensive interest in the retail based operations in the country. The major operations of Woolworths arte mainly based in New Zealand and Australia. Woolworths has acquired the second position in the retail industry in terms of the revenues. Woolworths Group is also considered to be the largest retailer based on takeaway based operations of liquor. The organization had experienced some major losses in the year 2016 (Woolworths.com.au, 2018). The first store of Woolworths had been established in Sydney. The company has further been able to implement many innovative operations in the stores all over Australia and New Zealand. The usage of cash registers was also an important part of the ways by which the company has been able to implement various innovative activities in an effective manner. The organization had started its growth in the year 1920 with the stores in Perth and Brisbane. Woolworths was further able to open its stores all over New Zealand and Australia. The implementation of artificial intelligence will play an important role in the ways by which Woolworths can operate and improve its operations in the stores in an effective manner (Woolworths.com.au, 2018).
The organizational environment related concept is based on the ways by which various forces and institutions which can affect the companies and the performance in the industry. The operations and different resources of the company will thereby be affected in such a manner which can further affect the ways by which Woolworths can operate. The organizational environment is able to affect the strategies that are developed by the modern organizations in a huge manner. Different parts of the organizational environment can thereby include the external and the internal factors (Alvarez & Barney, 2017).
Overview of Woolworths and Its Operations
The various activities that are related to high levels of innovation can act as a driver of different strategies that are developed by the organizations in 21st century. The different innovation related trends are further related to the understanding of needs of the companies. The proper implementation of innovation is based on the trends that are a part of the external environment (Amabile & Pratt, 2016).
The strategy based on the innovation in different modern organizations is related to the growth in the share of a companies in the market. The development of appropriate solutions thereby holds huge importance in this case. The strategies related to innovation are thereby developed by the organization with the help of the proper improvement of services and products that are offered to the customers (Anderson, Poto?nik & Zhou, 2014).
The investment levels of the companies in the modern business environment which can enable the implementation of different innovative methods which can be further named as innovation based capabilities. The process that is used for the development of different organizations is related to various stages that include engagement to implementation related process (Baporikar, 2015).
Implementation of the innovation based activities will play a major role in successful operations of different modern organizations in 21st century. The innovation has been able to play an important role in creation of the sustainability related operations of the companies. The idea is thereby based on the process of disruptive innovation. The process that is used for the mastering of innovation plays a major role in the role that is played by the executives in various industries. The ways of improving the internal business based processes has been a major part of the innovation related implementation (Cropley & Cropley, 2015).
The concepts that have been explained are linked with each other in a huge manner. The development of an environment is also based on the role that is played by the organization in the implementation of innovation. The trend based on innovation can thereby be followed in an effective manner with proper analysis of different environmental factors. The capabilities of the companies related to innovation are also a major part of the proper operations of different companies in the industry (DaSilva, 2018). The development of value thereby plays a major role in operations of different organizations. The various innovation related factors of different organizations are thereby linked in such a manner which is able to affect different organizations. The environment in which the company that operates is an important part of the implementation of the innovation (Davenport & Ronanki, 2018).
The process of alignment of the innovation related strategies with corporate strategy of the company is able to play a major role in the proper operations of organizations. The modern companies thereby need to align different strategies which have been developed in their operations with the innovation based strategies. The success of the innovation initiatives thereby depends on the proper alignment with different corporate strategies of the company (FiveFifty, 2018). The different innovation based initiatives that have been implemented by the companies are mainly performed with the help of middle level managers. The innovative inputs that are provided by the managers play the most important role in the proper implementation and usage of the innovative initiatives. The usage of three step approach is important for the implementation of innovation based strategies (Funk, 2014). The steps of this approach are as follows,
- The different strategic objectives of an organization can be fulfilled with the help of proper alignment with innovation related strategies.
- The challenges based on the innovation in the company can be recognised in the second step of this approach Vogel & Fischler-Strasak, 2014).
- The last step is thereby based on effective generation of different ideas and ways which can be used by innovation professionals to implement various ideas in an effective manner (Hameed & Counsell, 2014).
Role of Organizational Environment in the Implementation of Innovation
The implementation of the artificial intelligence based activities in Woolworths will play an important role in the improvement of its operations and revenues as well. The different strengths and the weaknesses of the organization are important for deciding different threats that are faced and the opportunities that are provided to the organization as well.
Strengths – The leadership based position that has been created by the company is a major strength that has been developed by Woolworths. The two key players who are able to affect the retail industry of Australia are Woolworths and Coles. Around 80% of the total shares in the market has been captured by Woolworths. The company has also been able to penetrate different areas of the market segments in an effective manner with the help of various products (Vogel & Fischler-Strasak, 2014). The strengths that have been developed by the organization can play an important role in the implementation of artificial intelligence in the operations of Woolworths. The customer tracking based activities of the company can thereby be improved in an effective manner with the help of proper implementation of artificial intelligence (Jarle Gressgård et al., 2014).
Weaknesses – Woolworths has been targeting various segments of the market with the help of its products. This has thereby caused a confused positioning based issue for the company. The aggressive price wars which take place in Australian retail industry can affect the operations of Woolworths in an effective manner. The implementation of artificial intelligence in the stores will help in the reduction of time that is taken for providing the services to customers. This will be an important advantage of the proper usage of artificial intelligence for the operations in the retail industry (Marvel, Davis & Sproul, 2016).
Opportunities – The booming Australian retail industry has been able to provide huge opportunities for the operations of Woolworths which can increase the levels of profitability in an effective manner. The in-store services which are provided to the customers can play an important role in creating the loyal customer base of Woolworths in the retail industry. The organization will thereby be able to operate in a profitable manner with the help of proper usage of the opportunities that are provided by the industry (McKinseyGlobalInstitute, 2018). The artificial intelligence based shopping assistants can also act as an important part of the strategy that has been created by the company. The innovation based activities have always been an important part of the successful operations of Woolworths. However, the implementation of artificial intelligence will be able to increase the levels of profitability in an effective manner (Mendes et al., 2016).
Threats – The levels of competition in the industry is a major threat that is posed towards the company. The online retail based organizations have also played a major role in the competition based levels of the company. The usage of artificial intelligence can thereby help the company to decrease the levels of competition in the market. Woolworths needs to change the operations towards service oriented types from the product oriented types. The services provided to customers in the stores can play an important role in the development of loyal base of the customers (Palacios-Marqués, Merigó & Soto-Acosta, 2015).
Importance of Innovation and Its Relation to Organizational Growth
Woolworths is already quite active in its innovation activities which can be improved with the help of implementation of different innovative approaches in its services. The additional levels of innovation based capabilities of Woolworths can be developed in order to the develop the activities and services in an effective manner. The artificial intelligence based innovation initiatives can be pursued in an effective manner with the help of its capabilities. Woolworths can thereby capture the value which is provided by innovation implementation in the organization. The most important value is the ways by which the customer base of the company can be developed in the retail industry (Sung & Choi, 2014).
The alignment of the corporate strategy of Woolworths with the innovative strategies which can play a major role in the proper application of different strategies. The innovation based implementations of the company will thereby play an important role in increasing the profitability of Woolworths. The innovation activities can thereby be integrated within the corporate strategy of the company.
Conclusion
The report can be concluded by stating that the implementation of artificial intelligence can play a role in the development of the company. Woolworths will be able to increase its profitability with help of usage of artificial intelligence in the stores of the company. The customers can also be served in an effective manner with the help of in-store application of artificial intelligence. The implementation of innovation thereby plays a major role in the operations of Woolworths in the Australian retail industry.
References
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Amabile, T. M., & Pratt, M. G. (2016). The dynamic componential model of creativity and innovation in organizations: Making progress, making meaning. Research in Organizational Behavior, 36, 157-183.
Anderson, N., Poto?nik, K., & Zhou, J. (2014). Innovation and creativity in organizations: A state-of-the-science review, prospective commentary, and guiding framework. Journal of management, 40(5), 1297-1333.
Baporikar, N. (2015). Drivers of Innovation. In Knowledge Management for Competitive Advantage During Economic Crisis (pp. 250-270). IGI Global.
Cropley, D. H., & Cropley, A. J. (2015). The psychology of innovation in organizations. Cambridge University Press.
DaSilva, C. M. (2018, July). Business Model Innovation In Dynamic Environments: A Process Model For Entrepreneurship. In Academy of Management Proceedings(Vol. 2018, No. 1, p. 12032). Briarcliff Manor, NY 10510: Academy of Management.
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Palacios-Marqués, D., Merigó, J. M., & Soto-Acosta, P. (2015). Online social networks as an enabler of innovation in organizations. Management Decision, 53(9), 1906-1920.
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Vogel, P., & Fischler-Strasak, U. (2014). Fostering sustainable innovation within organizations. In Sustainable entrepreneurship (pp. 191-205). Springer, Berlin, Heidelberg.
Woolworths.com.au. (2018). Retrieved from https://www.woolworths.com.au/
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