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Impact of Innovation and Technology on Kainos Group

University: Anglia Ruskin University London

  • Unit No: 5
  • Level: Post Graduate/University
  • Pages: 11 / Words 2757
  • Paper Type: Assignment
  • Course Code: MGT501
  • Downloads: 384
Question :

This assessment will cover certain questions which are like:

  1. Explain the impact of innovation and also the technological advancement for profit and growth.
  2. What is corporate social responsibility in Kainos Plc?
Answer :
Organization Selected : Kainos Group plc


The business environment is termed as the sum total of all the internal and external factors that affect business operations. Analyzing the business environment helps to scan the changes that are taking place in the day-to-day operations. Accessing a business environment helps to improve business performance by early adaptation of changes that are taking place through innovation and technological improvident. In this project report to elaborate on the concept of the business environment, Kainos Group plc is considered. It is a public limited organization that deals in the software industry (Bah and Fang, 2015). Headquarters are situated in Northern Ireland since 1986 and key people in the company are John Lillywhite and Brendan Mooney. The project report contains the impact of innovation and technology on sales, profit, and growth of the organization. Together with this importance of CSR is defined for businesses.


Impact of innovation and technology on sales, profit and growth of Kainos PLC

Innovation generally refers to changing processes or creating more effective processes, products and ideas. Innovation means changing business model and adapting all the environmental changes in the organisation so that better products and services can be introduced. Technology introduction through innovation has become part of personal and professional life of each individual. Innovation and technology changes leads to globalization and leads to success of an organisation. Kainos PLC develops information technology solutions for businesses and organisations particularly in the public, healthcare and financial service sector. Working in an industry which is based on technology and innovation it is very important for managers of Kainos PLC to become adoptive with business environment.

Kainos PLC is positively affected by innovation and technological changes that takes place in the business environment (Clarke, Li and Xu, 2016). As in the present time innovation leads Kainos PLC to develop software as per the requirements of a business organisation based on their personal preference. Innovation and technological changes drive focus of Kainos PLC towards software development and for this new and experienced workforce who are capable to meet changes are hired in the organisation. New features are added in the process of software development that helps testing of software development in automated manner. Through this innovative change operations of Kainos PLC are performed quickly and consistently validate the new functionality. Adaptation of innovation in the organisation and implementing them with technological development helps Kainos PLC to launch their Kainos Smart automated testing platform. This automated system helps in containing tests that are essential in the process of software development for various business organisations by Kainos PLC. Innovation helps Kainos PLC to become one of its kind organisation in the industry as Kainos PLC is the only automated testing tool on the market that is designed exclusively for use with workday (Eling, and Schaper, 2017). Innovation and technological development in the business environment leads to enhance markets boundaries for Kainos PLC to DACH, US, Benelux and now to Nordics. Using one of the best innovative method with latest technology helps Kainos PLC to serve its large number of consumers with computer software that are customised for them and enhance their performance.

Innovation helps a business to grow at national and international level. Successful exploitation of new ideas if crucial for every business that leads to improve business processes and products served in the market. Innovation leads to enhance efficiency and most importantly improve profits of business organisations. Innovation and technological development possess positive impact on sales made by Kainos PLC. As software for business organisations are developed so that each activity can be performed in well defined manner. When innovation is introduced then more effective and productive goods and services are provided by business organisations. Existing and targeted consumers are served with best products which they desire for and that leads to enhance sales. More and more amount of sales leads to widen the market share captured by Kainos PLC. As this software organisation possess a automation system wh9ich is one of its kind and this features through innovation make the organisation to have a global presence. Expanding business to international level helps Kainos PLC to grab new markets and attracts consumers across the boundaries (Fabuš, 2017). This will help to generate more and more sales in the national and international market. So, it can be said that when innovation and technology will be implemented in the Kainos PLC in required manner as per Mantke demand then in that case it will add more and more sales for Kainos PLC.

Profitability through innovation and technological development is affected in positive manner when consumers are served with goods and services they demanded. Kainos PLC through innovation and technological changes become successful to adopt a system in which tastes that are required for software development is conducted in automated manner. This features helps to generate customised software requited by number of business organisations to operate in most profitable manner. Satisfying consumers more effectively and providing services across national boundaries will help to generate more and more profits for Kainos PLC by making more and more sales. When size of operations in Kainos PLC is enhanced then in that case it will leads to generate financial benefits through economies of scale. Operating cost of organisation will be charged on number of operations and this will minimise cost and eventually profits will be improved (Georgescu and Popescul, 2015).

When growth of an organisation is considered in relation to adaptation of innovation and technological improvement chances for getting positive growth is more. Adopting both the tools will maximise profitability of business so that each activity can be accomplished in more profitable manner. One of the most innovative program was launched by Kainos PLC for students of university. In this “Earn as you learn” initiative is launched. Students are provided an opportunity to make contribution towards business innovation of organisation which their ideas and earnings will be provided to them on the basis of their learnings. When innovation is done for an organisation then in that case growth in the internal business environment takes place as many opportunities is available with business. Kainos PLC with introduction of innovation becomes one of its kind and this becomes the greatest strength to enjoy sustainability. Innovation also helps in competing with other businesses in more effective manner so that competitive advantage can be enjoyed and business can grow at national and international level.

Economic development is referred to enhancement of standard of living of individuals belongs to a particular nation. When innovation is introduced then it leads to provide more better goods and services that improves quality of life that each individual was enjoying in UK. When innovation will be made then it will not impact to a particular group the whole economic development in UK will take place. More and more amount of economic development is a result of innovation that is supported and accepted by citizens residing in UK.

Innovation helps to become successful and generate profitability when it is implemented in the most appropriate manner in any industry (Hamilton and Webster, 2018). While adopting innovation and technological development in Kainos PLC it must be considered that it is done on a valid idea. Only valuing options will be considered for innovation and that idea must be analysed in detailed manner. Innovation must be introduced on the basis of priorities that a business organisation wants in achieve in long or short run. Kainos PLC must consider its idea of innovation very critically as dealing in software development industry can make an innovation obsolete in small time duration. 

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Corporate social responsibility and its importance for Kainos PLC

Corporate Social Responsibility is a self-regulating business model that helps a company to become socially accountable for all the acts performed while providing offered goods and services to large number of company (Kozubíková, Homolka and Kristalas, 2017). This is one of the important business practice that helps to met with standards set by society for a business to be accomplish. The overall aim is to create a positive impact on society as a whole while maximising the creation of shared value for the owners of the business, its employees, shareholders and stakeholders. Operations of Kainos PLC will be performed in such manner so that exception of general public for the organisation for social benefit will be accomplished. Their are several benefits that Kainos PLC will enjoy while contributing towards CSR. Some of the importance of CSR for Kainos PLC is defined as follows-

To improve public image: Generating a good public image is very crucial for business organisations as it will provide success and sustainability in the competitive market. Consumers decision to buy goods and services offered by Kainos PLC will highly depends on the public image possessed by company.

Increase brand awareness and recognition: In order to achieve CSR business organisations contributes their finances for social welfare. This act when performed by Kainos PLC in national and international markets the brand awareness and recognisance among general public will improve.

Competitive advantage: This is one of the most important advantage that a business organisation enjoys while contributing for CSR. By embracing CSR Kainos PLC will stand out of the competition in the industry (Okeyo, Gathungu and Peter, 2016). This organisation will be considered as socially responsible and all the activities for generating revenues also considers social responsibility as their priority to achieve.

Improve customers engagement: When Kainos PLC is contributing towards social welfare and a system which leads to sustainable development is followed by the business then it must be introduced to society at large. For this companies make post on social media channels and make all the efforts so that society at large get aware with their contribution. This will help in enhancing consumers engagement with brand and its operations.

Create employee engagement: Similar to customer engagement, organisation must ensures that employees in the organisation must be aware regarding CSR. Individuals while working in an organisation must ensure that organisation in which they are working is responsible towards society as this will improve their productivity to give full contribution. Human rights, social welfare, equality all attracts talented employees to join and remain with Kainos PLC (Prajogo, 2016).

Benefits for employees: When CSR is followed by a business organisation then in that case it leads to contribution towards positive attitude of employees. All the workforce will be embrace with CSR and will volunteer personal and professional growth while performing various business activities.

Related Service- Understanding Business Environment of M&S

Archie Carroll’s (1991) CSR model

Archie Carroll’s (1991) CSR model is a simple framework that helps to argue how and why an organisation should meet their social responsibilities. One of the most important feature of this model is that CSR is built on the foundation of profits and for every organisation profits must come first. After this business organisation must ensures that operations must comply with all laws and regulations. When several options are available to a business organisation then option which helps in meeting ethical duties must be selected so that each individual will get benefited (Archie Carroll’s CSR model, 2019). InArchie Carroll’s (1991) CSR model a pyramid is established and all the responsibilities in form of their priority is mentioned. The pyramid in this model shows four responsibilities that are as follows-


  • As per this responsibility business organisation must possess profits as their primary concern.
  • Profitability is the only way through which a business can sustain in long run in a society.


  • Business organisation needs to obey laws and regulations imposed for profitability. For example- health and safety regulations at workplace, competition law and employment law.


  • This reflects the responsibilities to act morally and ethically.
  • With this responsibility social welfare held as primary concern.


  • At this stage responsibilities to give back to society.
  •  Various charities and donations are made by businesses for social welfare.


Archie Carrolls CSR model 2019

Archie Carroll’s (1991) CSR model while applicable to Kainos PLC then operations that provides monetary benefits to the organisation must be conducted on priority basis. For example- innovative software facilities must be introduced on continuous basis so that more and more revenues can be generated in long run. While operating in UK and at other international platform each business organisation must ensures that laws and regulations that are established for businesses must be followed. Together with this specific application of any regulating on software development business or IT businesses must be considered by managers or operators of Kainos PLC. After completion of these two steps in the models operations of Kainos PLC must be ethical so that society at large can be benefited with ethical behaviour used in operations. For example- when new innovation is introduced in the organisation then employees working in Kainos PLC will be trained to adopt the changes rather then removal form their post.

At the last stage Philanthropic stage is achieved in which Kainos PLC make financial contribution form profits to social welfare related to employees, environment, society and governance. This organisation with an intention to promote IT profession encourages schools and universities and students involved in IT sector (Reyes, Roberts and Xu, 2017). Local schools in UK, various universities and IT education at workplace is given primary concern and large amount of financial support is made in this respect. CSR Hub Generates Consensus Ratings on 17989 companies form 141 countries and Kainos PLC is ranked at 73 position. This ranking reflects that contribution of organisation towards CSR is remarkable. The organisation is ranked at 21 for employees CSR contribution and 49 for implementing governance. When whole scenario is considered then it can be said that Kainos PLC is one of the leading organisation in software development industry which is contributing a considerable amount social responsibility. All these efforts by organisation will help in gaining good market image and attain sustainability by fighting with all the available competition in the market.

You may also like to read about - Impact of Changes in the Business Environment on Tesco and Activity

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From the above project report it has been concluded that innovation is one of the important tool that helps each business organisation to sustain in the competitive market. Innovation requires technological development and when both the tools are present the it becomes beneficial for a business to gain competitive advantage. Innovation and technological development when made as per taste and preference of consumers then it leads to enhancement of sales, profit and growth of business. Businesses are operated in society and each business organisation to sustain for long run and to establish good market must make contribution towards CSR. Different models will be used to make the CSR strategy more effective.


  • Bah, E. H. and Fang, L., 2015. Impact of the business environment on output and productivity in Africa. Journal of Development Economics. 114. pp.159-171.
  • Clarke, G., Li, Y. and Xu, L. C., 2016. Business environment, economic agglomeration and job creation around the world. Applied Economics. 48(33). pp.3088-3103.
  • Eling, M. and Schaper, P., 2017. Under pressure: how the business environment affects productivity and efficiency of European life insurance companies. European Journal of Operational Research. 258(3). pp.1082-1094.
  • Fabuš, M., 2017. Current development of business environment in Slovakia and Czech Republic.
  • Georgescu, M. and Popescul, D., 2015. Social Media–the new paradigm of collaboration and communication for business environment. Procedia Economics and Finance. 20. pp.277-282.
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