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Innovation For Woolworths Business Operations


Task: You are required to write a 2000-word report for a novel business proposal you have developed. The business proposal must build upon your novel value proposition developed in assessment 1 for the existing business or organisation selected in assessment 1. You must use appropriate headings to structure the body of the report.
Your report must demonstrate:
1. Logical and persuasive articulation of: business model description; value proposition development; business operations development; supply chain development; competitive advantage; financial value capture and strategic fit (this includes elements 5 to 10 in the disciplined entrepreneurship canvas and elements 3 to 9 in the business model canvas). 40%
2. Logical and persuasive argumentation in regard to how assumptions and uncertainties related to: customer desirability; technical feasibility; and financial viability have been addressed to date and how they will be addressed in the future as described in a phased development plan. 16%
3. Logical and persuasive argumentation for the selection of the innovation tools and techniques used to support the report findings and recommendations. These must be beyond the tools and techniques used in assessment 1. Minimum five (5) additional tools and techniques must be selected from the provided list of tools and techniques. 6%
4. Logical and persuasive application of the selected innovation tools and techniques used to support the report findings and recommendations. These must be different to the tools and techniques used in assessment 1. Minimum five (5) additional tools and techniques must be applied from the provided list of tools and techniques. 8%
5. Candid and critical self-reflection about assessment 2 tasks including: a reflection on the development of personal innovation capabilities and practices; identification of own personal strengths and weaknesses; supported with suggestions for self-improvement. 10%
6. Clear flow of thought throughout the report with: a convincing executive summary; clear and succinct purpose described in the introduction; relevant structure and content within the body of the report; and a clear and succinct conclusion. 6%
7. Critical review skills and integration of relevant academic and professional literature. A minimum of ten (10) academic and professional references must be used. 4%
8. Appropriate in-text referencing and reference list. Adherence to CQUniversity APA reference style. 4%
9. Clarity of expression, grammar and spelling. Appropriate report format with good use of bullet points, illustrations and figures. Within ±10% of the word limit for report, excluding references and appendices: 2000 words. 6%


Executive Summary
The report aims at highlighting the use of a novel value proposition in order to develop digital price tags and discusses about Woolworths business operations. The report illustrates the benefits and drawbacks resulting in operations from incorporation of the innovative idea. The report also highlights the major issues faced by Woolworths in terms of security features and technical issues which need to be resolved in order to ensure seamless Woolworths business operations. The report also highlights the manner in which electronic shelves can scale retail Woolworths business operations through seamless integration of operations.

1: Introduction
It is essential for small- and large-scale organizations to develop a novel proposition canvas in order to highlight the attributes involved in the process of launching a new product or service. Woolworths is one of the largest retail supermarket stores in Australia and engages in dealing with a wide variety of products. In order to increase and enhance the level of customer satisfaction and also ensure provision of high-quality food a novel value proposition can be developed. The proposed value proposition is the incorporation of IOT in retail Woolworths business operations. This can help in customer satisfaction by ensuring the availability of self-checkout systems. The IOT application can also ensure installation of digital sensors throughout the supply chain in order to ensure tracking of fresh produce. The IOT application can be integrated with ultra sound based drying technology to ensure drying of food with less consumption power. The subsequent installation of digital sensors can help in tracking the expiry of the food and ensuring its fresh availability to customers. (, 2020). The report highlights the novel value proposition canvas that can be used to illustrate the importance of this concept.

2: Description of the business model
As opined by Jackson et al., (2016), the business model canvas encompasses nine critical elements which entails aspects such as the key resources, prime partners, the structure associated with cost, value proposition, relationship with customers, channels of operation and segments of customers.

It is essential to understand the relevance of IOT implementation in improving the degree of connectivity among customers. The use of ultrasound drying technology can use sound waves at low temperature to produce dry food products with a relatively small amount of energy. The advent of the digital price sensors associated with IOT can impact the retail Woolworths business operations and its relevance can be highlighted in the form of a table:

Model elements


Key resources

The key resources required for the creation of a digital sensor associated with IOT includes application development software for integrating services related to inventory tracking and management of ledger. The use of ultrasound based drying food through IOT application can help in recording the stocking of fresh produced food into warehouses and its distribution. IOT implementation for ensuring self-service checkouts and e-marketing for customers can also help in integration of activities and improvement of Woolworths business operations.

Prime partners

Woolworths can enter into a strategic form of alliance with IT consultant firms. It can also engage in strategic alliance with engineering firms which can help in manufacturing of the ultrasound based drying technology.

Cost structure

As suggested by Di Vaio & Varriale (2018), the inception of introducing the digital price sensors of IOT entails fixed costs subsumed in the manufacturing of micro processing sensor applications which can automate the process of scanning and updating of ledgers upon product purchase. It also entails variable costs involved in management of the ERP systems.

Key activities

The use of ultrasound based drying technology can help in production of food with a far lesser degree of energy. It’s relative integrity with IOT can ensure that the food stays preserved for a long duration of time and is made available to the customers as fresh produce.

The process of electronic shelf labelling helps in automated updating of ledger when a product is moved due to the presence of the digitalised price sensor.

The key activities involve undertaking appropriate ERP management in order to integrate the process of efficiency in Woolworths business operations.

Proposition of value

The ultrasound based drying technology is of highly proposed value as it would entail production of fresh food with a low consumption of energy. IOT based digital sensors can then be installed in the supply chain to understand the shelf value of the food and ensure its fresh supply.

As opined by Peano et al., (2017), the increased value of the product is revealed by the fact that it allows automated stock updating of goods and other essential information in subsequent books of accounts.

Customer relationships

The use of IOT can help in improving connectivity of customers by ensuring their availability on an all in one platform through application tracking and mobile devices.

Self-service checkouts can also help in improving customer service.


The inception of IOT across the ultra sound based drying system and digital price sensors can benefit the Woolworths business operations and supply chain management of Woolworths by taking into account factors such as seamless tracking of stocks to analyse the products which need to be replenished (, 2020). It can help in production and supply of fresh food products.

Segments of customers

The seamless IOT system and self-checkouts would help in the process of integration of activities in a smooth manner to ensure efficient retail Woolworths business operations.

Streams of revenue

The ultrasound based drying system can help in the process of production of healthy food. IOT based digital sensors across supply chain and ensure its fresh supply across customers and increase revenue through better goodwill.

Table 1: Business value proposition
(Source: Created by author)

The business model canvas has illustrated the manner in which ultrasound based drying systems can help in production of fresh food. Integration of the system with IOT and installation of digital sensors can help in estimating the shelf value of the food.

The business model canvas suitably illustrates the manner in which digital sensors can track the fresh produce of supply chain. The IOT can also help in ensuring that self-service checkouts help in improving the degree of connectivity.

Development of entrepreneurships canvas

Reason of existence

To incorporate product differentiation through provision of fresh products

Competitive advantage

Provision of fresh products

Acquisition of customers

Building goodwill by supplying fresh products

Overall economics

Cost competitive advantage due to IOT implementation

Designing and building

Production of fresh food through low consumption of energy and ensuring its fresh supply


Purchasers of fresh food

Value creation

Production and supply of fresh food products

Making money

Reducing cost of Woolworths business operations


Increasing sales through market goodwill of fresh products production and supply

Table 2: Entrepreneurship canvas
(Source: Created by author)

As stated by Hitt et al., (2016), it also helps in keeping track and management of real time inventory. Since Woolworths is one of the largest supermarkets in Australia, it can reap immense benefits from incorporating the use of this innovation.

3: Development of value proposition
The value proposition canvas can be used to illustrate the use of the ultrasound based drying technology and digital sensors as a suitable innovation in the retail industry. The value proposition takes into account two major components which are the value map and the profile of the customers.

The proposition model for the development of the digital price tag has been illustrated below:

Value map

Profile of customers

Creators of gain

IOT can seamlessly integrate the process of fresh production of food and its supply. The ultrasound system would help in producing the food at low consumption of energy and installation of digital sensors would help in tracking the shelf life of the product.

Gains of customers

IOT application can also help customers by ensuring a smooth degree of connectivity.

Relievers of pain

The electronic shelf in appropriation with the digital sensor of IOT can also act as pain relievers as it would reduce the burden on the Woolworths business operations department to ensure timely stock replenishment and keep a record of stock outs.

Pain relievers

IOT can enable customer to use self-checkout systems and it can also ensure seamless connectivity across customer groups through online applications and devices.

Products and services

The ultrasound based drying technology can help in production of fresh quality food with comparatively low consumption of energy.

The digital sensors can be applied across all consumer durable products to ensure smooth Woolworths business operations.

Customer issue mitigation

Customers would have seamless access to the information about their products containing the price tag. The scanning of QR code by the scanner can also help in earnings discount vouchers existing on products. This can create a pleasant shopping experience

Areas of improvement

It is essential for Woolworths to take into account the cost and benefit of installing the Ultrasound based drying technology and implementing IOT to ensure fresh production and supply of food. Woolworths needs to take into account various aspects such as the security issues from implementation of the electronic shelf and digital sensors. It should also take into account factors such as provision of training to employees so that they can work with the upgraded concepts of inventory management and other essential applications.

Table 3: Value proposition model
(Source: Created by author)

The value proposition model has highlighted the benefits of introducing the product to both customers as well as the business entity. The selected company can increase the efficiency of Woolworths business operations and also scale up business activities by introducing this renewed concept.

4: Development of Woolworths business operations
Resources required
It is essential for Woolworths to take into account the resources which are required for development of the software application and implementation of digital sensors and IOT. As opined by Amarakoon, Weerawardena & Verreynne (2018), it is essential to deploy a pool of talented human resources who are skilled in IT applications and outsource this particular project. It is also important to take into account the importance of developing inventory management software which can calibrate the enterprise resource operations under Woolworths business operations.

Which capabilities are required for Woolworths business operations?
The capabilities required for incorporation of the digital price tag and electronic shelves by Woolworths involve involvement of skilled labourers in the field of IT and technology. As opined by G?ód (2019), it also encompasses the fact that the management of the organization should also be more acquainted with the use of technological devices in the field of resource management. It is also essential for Woolworths to maintain team of efficient production to ensure hassle free Woolworths business operations of the ultrasound based drying system. The IT team would be responsible for using IOT applications to install digital sensors across the supply chain in order to ensure fresh production and supply of food products.

5: Development of supply chain
The supply chain operations model in order to develop the IOT for usage involves the following requirements:

As suggested by Goffin et al., (2019), since the digital price tag development is an IT project, its supply chain process involved mainly factors such as R&D, selection of suppliers and sales and marketing.



Research and development

The aspect of research and development plays a prominent role in ensuring that the digital tags are developed after understanding the system analytics and profile of the IOT for integrating the activities of the food production system and its supply.

Testing of concept

Any IOT based product which is at the stage of development, requires concept testing. This involves identification of costs involved in unit process operations for development of the application. The inception of the ultrasound based drying technology can be used to ensure that fresh goods are produced and supplied.

Selection of suppliers

The suppliers of the product in this case, involves a firm to which the project has been outsourced in order to ensure its completion and subsequent implementation.

Sales and marketing

The implementation of IOT would ensure a seamless shopping experience for the customers and they would be highly satisfied


The IOT can integrate the concept of Woolworths business operations and inventory management by taking into account factors such as automatic updating of inventory and also highlighting the key factors such as ledger handling and seamless stock alert notifications.

Table 4: Development of supply chain
(Source: Created by author)

The supply chain management model outlines the steps required for development of the fresh products through the use of ultra sound based drying system and its incorporation in the retail Woolworths business operations.

6: Development of financial value capture
It is important for Woolworths to take into consideration facts that the IOT application and the ultrasound based drying system would not cause direct monetary benefit to the retail Woolworths business operations. The drying system can help in production of fresh food and this can increase the long-term goodwill of the organization. However, it can help in increasing the efficiency of Woolworths business operations and also raise revenue by reducing the degree of overheads. Electronic shelf labels can also help in monitoring and manipulation of the margin by avoiding flash sales which may lead to wastage.

As opined by Aulet (2017), it can also lead to financial benefits for the store by overcoming the cost associated with printing of labels which are subsumed in the cost of logistic operations. It also helps in improving the business goodwill through application of augmented reality concepts.

7: Competitive advantage
The SWOT analysis can provide a brief overview of the strengths, weakness, opportunities and threats of Woolworths from incorporating the system of digital price tags:

Seamless inventory management

Ease in supply chain management and Woolworths business operations

Lack of acquaintance with the technology

High cost of implementation

Easy management of activities of large scale organizations

Easy and smooth degree of operations

Security threats

High cost of resource management

Table 5: SWOT analysis
(Source: Created by author)

The SWOT analysis helps in highlighting the key aspect of strengths and opportunities that can result for Woolworths from implementation of the IOT and use of ultrasound based drying technology in the production of food. The weakness and threats are revealed in the form of high cost of implementation and threats arising from security features.

8: Strategic fit
The model has a strategic fit as it can ensure proper production of hygienic food and ensure its smooth distribution across supply chain outlets. As suggested by Osterwalder & Pigneur (2010), the organization uses an effective ERP software system that helps in keeping a record of the inventory profile and also taking into account the system management programs and applications.

The use of IOT and digital sensors would help in notifying the organization about stock outs and produce purchase alerts in order to ensure replenishment of the inventory. The high degree of compatibility of the digital price tag with the ERP software of Woolworths can help in ensuring seamless execution of Woolworths business operations.

9: Uncertainty
A business entity operates in an environment which entails a high degree of uncertainty. It is essential for Woolworths to take into account the factors which can raise issues in the novel value proposition of introducing the IOT. As proposed by Osterwalder et al., (2014), it is essential for the organization to take into account the technical glitches which can result in faulty Woolworths business operations. This can also lead to improper notification of stock outs and purchase alerts. Technical glitches may also be accompanied in the form of failure in updating of inventory accounts and subsequent sales and purchase ledgers.

The uncertainty in Woolworths business operations also arises from security issues which is prominent in terms of data breach or leakage of confidential information. This can cost Woolworth heavily and would also create long term operational issues.

10: Development plan to address the uncertainties
It is essential for the organization to develop a plan that can address the security issues as well as the technical in competencies

  • It is essential to check and regularly upgrade the ultrasound drying food machine at various intervals to ensure that there is no existence of malfunction.
  • It is also essential to take into account the seamless integration of IOT based products in order to ensure its availability in a fresh state.

11: Innovation tools and techniques
The most profound tool of innovation which can be used in this regard entails the process of digitalised update of inventory ledger balances. As stated by G?ód (2019), it also takes into account factors such as the process of inventory updates. The innovation also lies in incorporation of IOT and installation of digital sensors across food products produced by the ultrasound based drying machine can ensure efficient retail Woolworths business operations and would also ensure a high degree of inventory management.

12: Critical analysis
I feel that introduction of the IOT can lead to seamless Woolworths business operations by ensuring that there is a proper calibration between the activities of purchases and order placements. I feel that ultrasound-based food production technology can help in producing fresh food. I also feel that appropriate inventory management can ensure stock alerts and timely replenishment of goods which would encourage a high degree of efficiency.

13: Conclusions and Recommendations
From the above study it can be concluded that the novel value proposition of introducing the IOT can create a leap in Woolworths business operations. However, it is recommended that the organization takes into account the various aspects of security features and other essential components such as technical glitches and jargons which can lead to inefficient Woolworths business operations. It is also essential to ensure system check of the ultrasound food drying machine in order to enable smooth functioning. It is also recommended that Woolworths takes into account aspects such as the regular updating of ERP systems.

Amarakoon, U., Weerawardena, J., & Verreynne, M. L. (2018). Learning capabilities, human resource management innovation and competitive advantage. Woolworths business operations The International Journal of Human Resource Management, 29(10), 1736-1766. Retrieved from:

Aulet, B. (2017). Disciplined entrepreneurship workbook. Hoboken, New Jersey: Wiley.

Di Vaio, A., & Varriale, L. (2018). Management innovation for environmental sustainability in seaports: Managerial accounting instruments and training for competitive green ports beyond the regulations. Sustainability, 10(3), 783. Retrieved from:

G?ód, W. (2019). Organizational structure, environment and management innovation. Global Journal of Business, Economics and Management: Current Issues, 9(3), 134-142. Retrieved from:

Goffin, K., Åhlström, P., Bianchi, M., & Richtnér, A. (2019). Perspective: State?of?the?art: The quality of case study research in innovation management. Journal of Product Innovation Management, 36(5), 586-615. Retrieved from:

Hitt, M. A., Xu, K., & Carnes, C. M. (2016). Resource based theory in operations management research. Woolworths business operations Journal of Operations Management, 41, 77-94. Retrieved from:

Jackson, S. A., Gopalakrishna-Remani, V., Mishra, R., & Napier, R. (2016). Examining the impact of design for environment and the mediating effect of quality management innovation on firm performance. International Journal of Production Economics, 173, 142-152. Retrieved from:

Osterwalder, A., & Pigneur, Y. (2010). Business model generation. Hoboken, New Jersey: Wiley.

Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2014). Value proposition design. Hoboken, New Jersey: Wiley.

Peano, C., Girgenti, V., Baudino, C., & Giuggioli, N. R. (2017). Blueberry supply chain in Italy: Management, innovation and sustainability. Sustainability, 9(2), 261. Retrieved from: , (2020), Woolworths Australia, Woolworths business operations Retrieved from: [Retrieved on 15th May, 2020]


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