Innovation in the UK Retail Sector - Nesta
Innovation in the UK Retail Sector - Nesta
Innovation in the UK Retail Sector - Nesta
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<strong>Innovation</strong> <strong>in</strong> <strong>the</strong> <strong>UK</strong> <strong>Retail</strong> <strong>Sector</strong><br />
Academy likely to prioritise specialised ICT or technical development <strong>in</strong>-post, nor<br />
especially strategic leadership issues. These are important gaps, s<strong>in</strong>ce out respondents<br />
observed that <strong>in</strong>novation <strong>in</strong> retail<strong>in</strong>g is often h<strong>in</strong>dered by:<br />
“…on occasion a lack of technical skills, but often a lack of leadership skills to drive/demand <strong>in</strong>novation<br />
and tie everyth<strong>in</strong>g toge<strong>the</strong>r.”<br />
8.30 On <strong>the</strong> ground locally, wider activity is currently tak<strong>in</strong>g place on <strong>the</strong> skills agenda, but<br />
only part of this activity is relevant to <strong>in</strong>novation-specific skills. This <strong>in</strong>cludes <strong>the</strong><br />
<strong>in</strong>tegration of <strong>the</strong> Tra<strong>in</strong> to Ga<strong>in</strong> skills brok<strong>in</strong>g service with Bus<strong>in</strong>ess L<strong>in</strong>k’s Information,<br />
Diagnosis and Brokerage (IDB) service, managed by <strong>the</strong> Regional Development<br />
Agencies; <strong>the</strong> Qualification and Curriculum Authority’s current consultation on <strong>the</strong><br />
accreditation of employers’ own ‘<strong>in</strong>-house’ tra<strong>in</strong><strong>in</strong>g; and specific work around <strong>in</strong>novation<br />
be<strong>in</strong>g undertaken <strong>in</strong> <strong>the</strong> regions by <strong>the</strong> Regional Development Agencies and Higher<br />
Education Institutions (although <strong>the</strong> relationships and clusters established here have<br />
aga<strong>in</strong> been ma<strong>in</strong>ly <strong>in</strong> respect of <strong>the</strong> science & technology base 29 ). However, feedback<br />
from retailers suggests a degree of dissatisfaction with <strong>the</strong> priority accorded to <strong>the</strong> sector<br />
by Bus<strong>in</strong>ess L<strong>in</strong>k amongst its many responsibilities.<br />
8.31 Many of <strong>the</strong> k<strong>in</strong>ds of specialist skills required to support retail <strong>in</strong>novation are as likely to<br />
come from o<strong>the</strong>r sector skills councils as from Skillsmart. These <strong>in</strong>clude:<br />
• e-skills <strong>UK</strong> (ICT and telecoms skills);<br />
• Skills for Logistics (freight logistics and wholesal<strong>in</strong>g <strong>in</strong>dustry);<br />
• Skillset (broadcast, film, video, <strong>in</strong>teractive media and photo imag<strong>in</strong>g);<br />
• SummitSkills (build<strong>in</strong>g services eng<strong>in</strong>eer<strong>in</strong>g); and<br />
• Skillfast <strong>UK</strong> (fashion and textiles)<br />
8.32 Dur<strong>in</strong>g 2007, <strong>the</strong> 25 <strong>Sector</strong> Skills Councils established <strong>the</strong> Alliance of <strong>Sector</strong> Skills<br />
Councils (TASSC), whose purpose is to support <strong>the</strong> SSCs <strong>in</strong> achiev<strong>in</strong>g <strong>the</strong>ir collective<br />
agenda, <strong>in</strong>clud<strong>in</strong>g tak<strong>in</strong>g greater responsibility for <strong>the</strong>ir own collective action and<br />
performance. The Alliance sees <strong>the</strong> l<strong>in</strong>k between <strong>in</strong>novation and <strong>the</strong> expressed shortage<br />
<strong>in</strong> technical skills as shared <strong>in</strong> common by a number of sectors and is encourag<strong>in</strong>g <strong>the</strong><br />
SSCs, where appropriate, to work collaboratively to address <strong>the</strong>se needs.<br />
8.33 The Leitch Review of Skills made some helpful observations <strong>in</strong> this area. It noted <strong>the</strong><br />
<strong>in</strong>creas<strong>in</strong>g specialisation of skills as new ways of produc<strong>in</strong>g goods and services (such as ecommerce)<br />
evolved. It po<strong>in</strong>ted to retail<strong>in</strong>g as be<strong>in</strong>g a sector where specialisation was<br />
accelerat<strong>in</strong>g. For example, e-skills <strong>UK</strong> has drawn attention to <strong>the</strong> lack of e-bus<strong>in</strong>ess skills<br />
(ra<strong>the</strong>r than just professional ICT skills) which are needed to address <strong>the</strong> longer term<br />
development needs of firms. In many ways <strong>the</strong>se are cross-discipl<strong>in</strong>ary skills: compris<strong>in</strong>g<br />
bus<strong>in</strong>ess, creative and technical skills partially learned <strong>in</strong>: ‘bus<strong>in</strong>ess studies, commerce,<br />
multimedia, multimedia, <strong>in</strong>formation systems, f<strong>in</strong>e art, librarianship, journalism, film<br />
studies, photography …’ (Expert Group on Future Skills Needs 2001). As <strong>the</strong> retail<br />
sector grapples with a multi-channel future, <strong>in</strong>novation will <strong>in</strong>creas<strong>in</strong>gly be driven by a<br />
range of overlapp<strong>in</strong>g skill sets. This is particularly <strong>the</strong> case given that <strong>in</strong>novation with<strong>in</strong><br />
<strong>the</strong> service sector is as likely to span firms and whole value cha<strong>in</strong>s as well as channels to<br />
market. But outsourc<strong>in</strong>g <strong>the</strong> problem or rely<strong>in</strong>g upon <strong>the</strong> expertise with<strong>in</strong> supplier<br />
29 See for example <strong>the</strong> discussion of <strong>the</strong> creation of ‘science cities’ <strong>in</strong> RDA National Secretariat, (2006), ‘Br<strong>in</strong>g<strong>in</strong>g Regional Prosperity’, Regional<br />
Insight, Sept/Oct.<br />
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