Gloria Jeans is one of the largest coffee selling company in Australia, its major competitor in the market is Starbucks coffee. In order to stay competitive and stay ahead of its competitors Gloria Jeans is considering implementing on the adaption of new innovation technology that will result in selling more of its coffee online, as customers will be able to buy their product/coffee while they are on their way to Gloria Jeans.
In implementing such system, this report will highlight some of the basic concerns that the company needs to take into consideration, that comprise of risks, cost consideration and what tools and techniques will be beneficial for the company. The new innovation model for Gloria jeans will be completely new and different and in order to make it successful proper training of staff will be required.
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Executive Summary
Gloria Jeans is one of the largest coffee selling company in Australia, its major
competitor in the market is Starbucks coffee. In order to stay competitive and stay
ahead of its competitors Gloria Jeans is considering implementing on the adaption of
new innovation technology that will result in selling more of its coffee online, as
customers will be able to buy their product/coffee while they are on their way to Gloria
Jeans.
In implementing such system, this report will highlight some of the basic concerns
that the company needs to take into consideration, that comprise of risks, cost
consideration and what tools and techniques will be beneficial for the company. The
new innovation model for Gloria jeans will be completely new and different and in
order to make it successful proper training of staff will be required.
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Table of Contents
Background................................................................................................................................................................................................................4
Implementation of new Innovation............................................................................................................................................................5
Organizational Procedures...............................................................................................................................................................................5
Website Layout and Design..............................................................................................................................................................................6
App Development:................................................................................................................................................................................................6
Considerations for the Future.........................................................................................................................................................................7
Cost Considerations..............................................................................................................................................................................................8
Initial Costs..............................................................................................................................................................................................................8
Cost associated with training and skills development.........................................................................................................................8
Hiring expertise ...............................................................................................................................................................................................8
Assessing existing website accessibility.....................................................................................................................................................8
On-Going Costs.................................................................................................................................................................................................8
Additional development....................................................................................................................................................................................9
Decreasing Costs..............................................................................................................................................................................................9
Incorporating accessibility from the beginning.................................................................................................................................9
RISK MANAGEMENT............................................................................................................................................................................................9
Conclusions and recommendations.........................................................................................................................................................10
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Background
Gloria Jean’s Coffees is among the privately owned and operated Australian
company, the company started its operation in Australia in 1996, Gloria Jean’s
Coffees has experienced exponential growth, resulted in becoming the largest
specialty coffee retailer and one of the fastest growing franchise organisations in
Australia and worldwide.
Since January 2005, Gloria Jeans has held the international master franchise brand
along with roasting rights globally. The coffee company has more than 881 coffee
houses in 39 countries including over 466 in Australia, Gloria Jean’s Coffees sells
hand crafted espresso coffee drinks, signature espresso based cold drinks, a range
of blended and estate whole bean coffees and specialty teas, along with pastries and
coffee accessories.
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Implementation of new Innovation
For any organization to be effective it needs to focus on the organization's objectives
and motivations. Creating the overall value and outcomes of digital innovation are
more important for organizations like Gloria Jeans than another, based on its particular
situation.
For Gloria jeans their objectives and motivations vary as compare to other
organizations/competitors in the market mainly because of what they has to offer. A
proper customized digital innovation system for Gloria Jeans will be based on
completely different content and style, and incorporate different aspects with different
emphasis, focused on the core values of Gloria Jeans.
Organizational Procedures
For companies like Gloria Jeans, specially when operating on global levels involve
almost the same amount of managerial and political issues, that ultimately requires
the same amount of consideration and coordination from all departments (Desouza,
2009).
Innovation for any organization constitutes part of the system that produces it. The
overall system is itself 'organization' or 'organizing', along with the ability of an
organization like Gloria Jeans to innovate would be a pre-condition for the successful
utilization of inventive resources and new technologies.
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Website Layout and Design
In order to be able to successfully implement the use of digital technology and sell the
coffee to its customer over the internet, Gloria Jeans will definitely need a completely
new structure of its website (Desouza, 2009). The design and layout of the website will
be highly based on what system/technology will be used by the company so that it will
be easier for the customers to access and order coffee online. For this particular
reason the supply chain needs to be revised to make it more efficient and effective so
that customers wont have any issues or complaints, who opt for ordering coffee
beans, cocoa and tea from online store of Gloria Jean’s.
App Development:
To catch up with the growing number of smart phone and tablet buyers, Gloria
Jeans also need to develop an application for such market. Majority of the people
who visit Gloria Jeans or who will ordering coffee online are mostly in a rush (Desouza,
2009). With the help of digital innovation such as electronic data interchange can
prove to be very useful for enhancing the efficiency and effectiveness of Gloria Jean’s
supply chain.
Through the application of latest digital innovations, the overall wastages and
leakages in the supply chain of Gloria Jean’s can be minimized on a large scale. This
will eventually result in lowering the overall costs and will provide cost leadership to
the coffee chain among its competitors (Skarzynski, P., Gibson, R., 2008). At the same
time it can then transfer part of the cost savings to the customers in the form of lower
prices, which at present no other competitor, is doing.Real time electronic data
interchange can make the collaboration with suppliers and other supply chain
partners of Gloria Jean’s in more efficient way. The supply chain can be monitored
right up to the stage of delivery at the door of the customers. For such target market,
by providing an App will make it easier for them to order their coffee through an
application and by the time they’ll reach the store it will be ready to deliver.
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Considerations for the Future
In majority of the cases it is almost always significantly easier, more effective, and less
expensive to incorporate accessibility early in website development or redesign or in
the implementation of technological innovation, rather than changing the whole layout
later. The overall usability of the new digital innovation the Gloria Jeans is willing to
adapt, will have a high impact on its acceptance from the customers. Based on the
feedback provided by the customers on the service they get, will eventually lead to the
overall improvements in the product quality and its customer service (Skarzynski, P.,
Gibson, R., 2008).
Customers of Gloria Jeans will be encouraged to provide feedback through the newly
design website, in stores and through other applications customer will be asked to
give their feedback so that the overall service can be improved (Buxton, B, 2009).
The new software applications created for the customers will be user friendly and will
be marketed and promoted through various marketing mediums, so that more and
more customers can access online store of Gloria Jean’s from mobile devices like
Apple i-Phone and Samsung Galaxy Tab.Gloria Jeans need to make sure that its
staff has the rite skills and knowledge, WHO will work for the company
For Gloria Jeans it is important to develop and update guidelines, standards and
other technical information.In order to be able to promote the development and
training of educational material and encourage the staff and customers to use them.
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Cost Considerations
While accessibility is incorporated from the beginning of the new innovation design,
the overall cost consideration is an important aspect to be considered.
Initial Costs
In the process of incorporating accessibility, there are initial investments that need to
be made by Gloria Jeans in acquiring knowledge, establishing processes, and
increased development and testing time.
Cost associated with training and skills development
For Gloria Jeans providing training and skills development will be based on the cost of
training, whereas in the process skills development there is initially an increase in
development and testing time because using new skills is often slower (Buxton, B,
2009). In addition to training of the staff organizations like Gloria Jeans that move to
different technologies in an effort to improve accessibility might incur training costs on
the new technologies.
Hiring expertise
Another important aspect in cost consideration is the hiring of consultants or other
employees with accessibility expertise.
Assessing existing website accessibility
In the process of fixing an existing site, assessing (auditing or evaluating) existing
website for many companies accessibility is a common initial cost. The assessment
cost for Gloria jeans would be either a direct expense or a personnel cost mainly
based on how the service will be used. Making accessibility improvements in the
current website of Gloria Jeans might prove to be a bit more costly as compare to if
they company decide to completely re-design their service while incorporating the new
innovation.
On-Going Costs
While most of the costs of digital innovation will be associated with initial accessibility
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efforts, there are some on-going costs to making the new system easy to use and
implement on:
Additional development
Once Gloria Jeans experienced in accessibility, the other costs might be associated
with providing transcripts for podcasts and captions for multimedia.
Decreasing Costs
The benefits of innovation occur in all aspects of the profit/loss statement: innovators
drive additional sales volume, achieve price premiums and reduce costs through
process improvements.
There are several things Gloria Jeans can do to in order to decrease the cost of
implementing accessibility, including the following:
Incorporating accessibility from the beginning
Incorporating the user friendliness of the new innovation from the beginning of
development or redesign process is almost always significantly easier, less expensive,
and more effective than making improvements later on.
RISK MANAGEMENT
Risk management is the process of identifying potential hazards or weaknesses in
the operating environments of companies contribute to the risk profile of an
organization and have negative effects on its capability to achieve business
objectives, but these weaknesses are but one component of assessing risks (Frigo,
Mark L 2012). The major target of assessing controllable and non-controllable risk is
to avoid those risks and achieve the desire results such as profits and so forth.
Risk management is one of the important development and establishment tools for all
organization these days. Every type of organization whether it is public or private plan
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for likely and unlikely risks and tries to avoid these risks through all types of available
resources in hand (Frigo, Mark L 2012). The major risks for Gloria Jeans are of three
types like strategic, operational, and cost associated risks. Public organizations have
strong plans for operational and strategic risks such as financial loss, property
damage and incompletion of a project.
Conclusions and recommendations
In order to be able to successfully implement and adapt the new innovation in the
existing system and procedure of Gloria Jeans’s coffee selling concept, the company
needs to consider a lot of aspects that are directly and indirectly associate with the
company success.
Since the company is trying to sell its coffee online, it needs to redesign or restructure its
website and make it more user friendly while minimizing the cost and also has to
introduce some new apps for smart phone users. If Gloria jeans is able to efficiently use
its new innovation system than the chances for success would be very high.
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Reference:
Buxton, B. “Innovation calls for I-shaped people”, BusinessWeek Online, 15/7/2009
Braganza, Awazu, Desouza, 2009, “Sustaining Innovation is Challenger for Incumbents”, Research
Technology Management, pg 46-56
Shen, H., Wang, L., Qiang, X., Li, Y., Xunfeng, L., “Toward a Framework of Innovation Management
in Logistics Firms: A Systems Perspective”, Systems Research and Behavioural Science, 2009, pg
297-309)
Skarzynski, P., Gibson, R., 2008, “Innovation To The Core”, Harvard Business Press.
Frigo, Mark L 2012, "What Is Strategic Risk Management?" Markfrigo.com. N.p., Apr. 2011. Web