Different Types of Innovation & Technology on Lloyds Bank

TASK 1

1. Demonstration of different types of innovation and technology and the way in which they have impact upon economic progress of the country

Definition of innovation and technology:

The process which is followed by individuals or organisations for the purpose of making modification in the existing products and services is known as innovation. In other words, it can be defined as the uniqueness which is made in different items by business entities after alteration. With the help of it higher profits could be generated by enterprises as it results in attraction of customers. Innovation is focused by organisations for the purpose of satisfying needs of clients and meeting their expectations (Dubickis and Gaile-Sarkane, 2015). In order to remain competitive in the market it is very important for companies to make innovation so that value in the market could be created and long term sustainability could be acquired. With the help of it, business entities can report to all the internal and external factors appropriately and identify the opportunity which can help to reach long term goals.

Technology can be defined as the process of using scientific knowledge for the purpose of finding answers for critical issues that are affecting functionality of a business. It is used by organisations for the purpose of accomplishing difficult tasks successfully in less time. In order to differentiate in the market it is very important for all the enterprises to make sure that they are able to gather detailed information of technologies that are emerging in the market. It changes frequently therefore companies are suggested to conduct market research on continuous basis so that detailed information about the changes could be gathered.

Example of contribution of innovation in the economic growth:

The application of innovative ideas is known as innovation which improves the way in which goods and services are delivered to the customers. With the help of it, business entities contribute in the economic growth because it allows then to perform their operational activities in unique manner (Mostaghel, 2016). In earlier years coal engines were used to run the trains but with the changes in time steam engines were introduced which revolutionised the transport in the railways. Due to this the economy in those years was boosted massively as it has enhanced standard of living of all the individuals. In current era, information technology is the major innovation which is leading countries towards growth. Innovation is considered as the key of growth of UK's economy. One of the main example of the contribution of it in the growth of economy is Perceptual robotics which is leading around 1.3 million projects in UK with Autonomous surface vehicles. For the purpose of launching innovations in the market total contribution which is made in research and development activities is increased by 2.4% of GDP in year 2019 (Contribution of innovation in economic growth of UK, 2019).

The way in which organisations use new technologies in their operations:

Now a days most of the organisations are using new technologies for the purpose of executing operational activities so that the time taken by them could be decreased, productivity could be enhanced and competitive advantage in the industry could be increased (Phillips, 2018). There are various types of technologies which are used by companies in different sectors such as manufacturing, service etc. CAD (Computer Aided Design) is a latest technique which is used by companies for the purpose of linking two difficult components of deign at higher level so that it can help to deliver the higher level of productivity. For the purpose of ensuring the higher level of accuracy in machines, Computerised Numerically Controlled Machines in CAM (Computer Aided manufacturing system) are used as precision is very important in operating machines.

2. Practical illustration of the way in which innovation and technology have impacts the operations, sales and profits of the organisation

Overview of the company: Lloyd Bank Plc is retail & commercial bank which has various branches across the England and Wales. It has traditional consider as Big Four clearing banks which founded in 1765 by John Taylor and Sampson Lloyd. Bank's headquarter situated in Gresham Street, London, United Kingdom. They provide banking or insurance solutions to the citizens of England or Wales. There parent company is Lloyd Banking Group and it's subsidiary company is Lloyd Bank International Limited. There are around 45,856 people employed in this organization and they generate £17.5 billion operating income or net income around £16.6 billion (Annual report of Lloyd banking Group, 2019).

Comparison of sales and profit of the company before and after the new technologies:

The banking group planned to use core banking technology from google inspired UK fintech. The organisation have explored the use of a cloud based banking platform so that all the IT services could be managed by it properly (Ritala, Kraus and Bouncken, 2016). The top level executives of the organisation have announced it in year 2016 which means it will be implemented by them in 2017. Total amount which was invested by the enterprise in it was around 3 billion pounds. There are huge differences were analysed in the sales and profits of the organisation between year 2016 and 2017. It shows that before applying the technology the financial performance of the organisation was stable which was enhanced after using the new innovation (Technology used by Lloyd Banking Group. 2019). Difference between its profits and sales could be analysed with the help of following table:

From the above table it has been analysed that before implementing the latest technology profits for the organisation were 2514 million pounds and when technology was implemented then an increment of 1033 pounds in the profits is analysed with the help of income statement. With the help of technology sales of the banking group is also increased from 9274 to 10912. It shows that the use of innovation has helped the entity to reach its long term business goals. With the help of the new technology the management of the organisation have formulated such strategies which has led it towards long term success (Yu and et.al., 2014).

From the above discussion it has been analysed that by using latest technology an organisation can contribute in the economic growth and enhance its sales and profits because it results in ease of work and completion of it in less time. With the help of them, the complexities for employees and customers could also be reduced as it guide them to deal with difficulties properly.

TASK 2

1. Evaluation of Importance of Corporate Social Responsibility

Corporate Social Responsibility refers to an appropriate and necessary area of practice for an organisation, which covers the responsibilities of the company in context of society and the community. Furthermore, it could be defined as the practice adopted by the organisations to satisfy several social expectations from the company in relation to several ethical, legal as well as commercial aspects (Marin, Martín and Rubio, 2017).

CSR has become an integral part of the organisations within the UK. However it affects each and every sector of the business environment, an appropriate and effective impact of the same is witnessed within the Banking Sector. Moreover, a brief history is associated with organisations implementing Corporate Social Responsibility within their practices. For instance, during 1990s, there were not much use of Credit or Debit cards and most of the transactions within the banks and the financial sector saw an active role of cash money. However, in adherence to their safety, facilitation of credit cards, loans as well as other credible sources became quite appropriately available for the ordinary people as part of the CSR. An active role within the same was played by banks like Barclays PLC and Lloyds Bank. Due to such ethical and necessary practices, purchasing power of the people took a big hit and it appropriately and effectively responded towards the changing market conditions (Demirel and Kesidou, 2019).

In this context, Corporate Governance has a bigger role to play, which refers to the practices, that companies engage in to appropriately satisfy the social expectations of each of the stakeholders associated with the company. For instance, there are several responsibilities of Board of Directors of Lloyds Bank towards the stakeholders as part of their corporate governance. Some of these responsibilities are briefly explained below:

• Risk Management: This is the responsibility of the Board towards the employees, which requires the firm to appropriate apply strategies and contingency plans to protect their employees against any sort of fraud or risk.
• Audits: This responsibility within the company is associated with the government. The firm is required to ensure auditing of its operations and functions to ensure that the infrastructure and functioning of the firm are very much ethical and upon effective grounds.
• Protection of Stockholders: Another responsibility of the bank is associated with representing the interests of stockholders. Hence, in relation to this, the board has the responsibilities towards the people to provide them personal incentives so that their interest is protected.

Furthermore, in today's era, where there is a high level of customer awareness and importance of ethics in the business environment, it is crucial for the banks within the country to understand the importance of CSR in their regular business practices. Hence, in this context, the importance of CSR is reflected within Lloyds Bank through several pointers that are stated below:

• Brand Image: This importance is related to appropriate and effective brand image. CSR is an important aspect for business environment, which requires the companies to act appropriately to satisfy the same. Hence, CSR is important for the bank to help them build a stronger market image in the UK as well as the world (Li, Li and Chan, 2019).
• Competitive Advantage: Another aspect reflecting importance of CSR in the business is related to the fact that it would help the firm in satisfying each and every stakeholder associated with its operations and hence, this could help in enhancing the competitive advantage within the marketplace.
• Customer Engagement: CSR would be helping the firm in building trust within the company and hence, remaining associated with the firm and its operations for a longer period of time.

Related service - Assignment Writing Service UK

2. Explanations of Archie Carroll's Pyramid of CSR

There are several models and theories that have been developed and are associated with Corporate Social Responsibility. These models help the companies in implementing this aspect in an appropriate manner to fulfil the expectations of the company within the marketplace.

One such model for the organisation in this context is Archie Carroll's CSR Pyramid, which contains several responsibilities that a firm must undertake in order to ensure effectiveness. Hence, in context with Lloyds Bank, this model is appropriately implemented below:

(Source: Carroll's CSR Pyramid, 2019)

• Economic Responsibilities:

One of the most appropriate foundations of the company is associated with profit, which should be the first consideration of the company. However, usually profit is not considered to be a primal aspect within the CSR practices, still the firm requires to fulfil its responsibility, as its only way which the company could appropriately and effectively sustain in the business environment. In terms of Lloyds Bank, the firm could satisfy this responsibility by ensuring improvisation in its operations such as cash flow and interests schemes. Moreover, the firm could also provide the customers with appropriate private incentives which would enhance their engagement within the company (Kim, Chang and Kim, 2018).

• Legal Responsibilities:

Another parameter of this model is the legal responsibilities which a firm must adhere in relation to fulfil their duties towards the law and regulatory environment of the market it operates in. This aspect is also referred to as “codified ethics”, which articulates several fair practices which the company must adhere to. There are several ways in which Lloyds Bank could achieve these objectives. For instance, the firm must adhere to Equality Act, 2010, which ensures high level of diversity within the organisation and promotion of equal practices. Another appropriate act is related to Financial Services Act, 2016, which underlines several strategies and operations that are associated with lawful provision of financial services. In addition, the firm must also formulate policies in factor of these acts and must ensure compliance within the same through aspects like audits.

• Ethical Responsibilities:

As the name suggests, this spectrum of the model is associated with working morally and ethically. Adopting and adhering to such practices is very important to support the legal responsibilities. Moreover, this is directly associated with the expectations of society from the company, which enhances the scope of operations and practices as compared to the laws and regulations. Lloyds Bank could undertake practices such as inclusion of moral and ethical norms related to its practices such as wages, incentives and interests provided to customers. Furthermore, they could also promote ethical considerations in terms of triple bottom line, which supports practices in relation to social, environmental and financial aspects. This would promote the practices of the firm associated with people, planet as well as profit, which would satisfy its ethical responsibilities (Amos, 2017).

• Philanthropic Responsibilities:

This includes several forms in which the company voluntarily helps the society. This is a way of contributing to the society to give something back as a gesture of gratitude. For this purpose, the organisation could undertake several activities such as providing donations, gift certain monetary resources and ensure high development of community.

Hence, this factor appropriately explains the notion that the firm must abide by, in order to appropriately and effectively enhance the business practices towards achieving higher organisational goals and objectives (Haque, 2018).

CONCLUSION

From the above project report it has been concluded that innovation and technology are two main elements which should be focused by all the business entities for the purpose of reaching their long term business goals. With the help of them large number of customers could be attracted by providing them innovative services. If a new technology is adopted by enterprises then it may contribute in the enhancement of profits and sales of upcoming years. Corporate social responsibility is also an element which should be focused by companies for the purpose of establishing a positive market image and enhance employee engagement. In order to make sure that all the responsibilities for the development of society are performed by the organisation or not, Archie Carroll's Model could be implemented by them. There are various elements of it which are Economic, Legal, Ethical and Philanthropic.

REFERENCES

• Amos, G. J., 2017. Corporate social responsibility, innovation and leadership: Exploring the compatible territories. Journal of Developing Country Studies. 7(2). pp.149-160.
• Bocquet, R. and et. al., 2019. Strategic CSR for innovation in SMEs: Does diversity matter?. Long Range Planning, 52(6), p.101913.
• Demirel, P. and Kesidou, E., 2019. Sustainability‐oriented capabilities for eco‐innovation: Meeting the regulatory, technology, and market demands. Business Strategy and the Environment.
• Dubickis, M. and Gaile-Sarkane, E., 2015. Perspectives on innovation and technology transfer. Procedia-Social and Behavioral Sciences. 213. pp.965-970.
• Haque, H., 2018. Corporate Social Responsibility (CSR) Driven Innovation & Opportunities for Sustainable International Business. International Journal of Business and Social Research. 8(3). pp.12-18.

UPTO50%

Avail The Benefit Today!

To View this & another 50000+ free

Enter Email

Submit