Corporate Entrepreneurship and Innovation

This report had discussed the issues already identified in Atlassian corporation Plc and mainly deals with the challenges faced in innovation for the organization. Atlassian had been facing issues with their key performance indicators as they were not well defined and only focused on revenue and profit. On the other hand, growth of the organization had been significantly low in the past few years. In order to provide suitable options to the organization, the report had discussed various innovation concepts, models and approaches.

Running head: CORPORATE ENTREPRENEURSHIP AND INNOVATION
Corporate entrepreneurship and innovation
Name of the student
Name of the university
Author note

1CORPORATE ENTREPRENEURSHIP AND INNOVATION
Executive summary
This report had discussed the issues already identified in Atlassian corporation Plc and
mainly deals with the challenges faced in innovation for the organization. Atlassian had been
facing issues with their key performance indicators as they were not well defined and only
focused on revenue and profit. On the other hand, growth of the organization had been
significantly low in the past few years. In order to provide suitable options to the
organization, the report had discussed various innovation concepts, models and approaches.
These concepts, models and approaches had been helpful in identifying the strategies that
could be implemented for developing sustainable competitive advantage. The report had
recommended the organization to include innovation as a factor into their key performance
indicator. This would facilitate in measuring the progress of the organization in terms of
innovation. The report had also suggested the use of radical sustainability and blue ocean
strategies as considerable options for addressing the issues.

2CORPORATE ENTREPRENEURSHIP AND INNOVATION
Table of Contents
Introduction................................................................................................................................3
Issues faced by the organization................................................................................................3
Interventions (solutions and approaches)...................................................................................4
Organizational culture and disruptive innovation..................................................................4
Radical and incremental innovation.......................................................................................5
Blue ocean strategy................................................................................................................7
Business model innovation....................................................................................................7
Recommendation........................................................................................................................8
Conclusion..................................................................................................................................9
References................................................................................................................................11

3CORPORATE ENTREPRENEURSHIP AND INNOVATION
INTRODUCTION
This report is a continuation previous assignment where the different issues faced by
Atlassian was identified while dealing with entrepreneurship and innovation. Atlassian, is one
of the software companies in Australia and this will focus on the issues faced by the
organization and develop relevant solutions by innovation and entrepreneurship models and
theories. The report will also provide relevant recommendation based on the solutions and
approaches to effective strategies. These strategies will facilitate the organization to develop
sustainable competitive advantage in the market.
Atlassian corporation Plc deals with the development of enterprise software
development. The company mainly caters to content managers, project managers and
software developers. Jira is one of its well-known products which has been developed for
issue tracking purposes (Atlassian 2019). Innovation is one of the most challenging aspect of
any organization as with advancement of technology and modernization, there is rapid
change in the needs and wants of the consumers. The companies have to continuously
innovative to make sure that they are addressing the current trend in the market.
ISSUES FACED BY THE ORGANIZATION
Atlassian has been facing challenges in corporate innovation as they have been
growing and expanding their operational business. The company has been facing challenges
managing its growth effectively. The recent growth of the organization has been very slow as
it has been difficult to balance between the corporate strategy of the organization and
adapting to the change in the external environment through innovation. The company has
been making acquisitions which is another challenge as it is essential to develop a business
strategy to align the acquired start-ups with the business strategy of Atlassian. Moreover,
there is lack of clarity in the key performance indicators developed by the organization. The

4CORPORATE ENTREPRENEURSHIP AND INNOVATION
organization has been facing issues in managing their short-term performance after they had
gone through with their initial public offering in the year of 2015. There has been immense
pressure on the managers as the investors are more interested in quarterly reports. Moreover,
the key performance indicators are only based on revenue and profit margin. This means that
the stakeholders are only considering revenue and profit margin as the performance indicator
which could cause problems for the organizations. The short-term orientation of the company
would cause issues in long term growth of the organization. The other competitors in the
market are focusing on making huge investments so that they can maintain their sustainability
through long term innovation. This would definitely restrict the innovation capacity of the
organization and there will be difficulty in making progress, in terms of technological
innovations.
INTERVENTIONS (SOLUTIONS AND APPROACHES)
Creativity and innovation are one of the major factors driving success of different
organizations. The issues and challenges faced by the organization has already been
discussed in the above point. This part of the report discusses about the approaches and
solutions that the organization should implement to make the organization more oriented
towards long-term sustainability and innovation.
Organizational culture and disruptive innovation
The first point that needs to be considered is the culture of the organization. It is
essential to develop an organizational culture that promotes innovation. The culture of any
organization varies depending upon their values but it is critical to promote people and
employees that are innovation enablers within the organization (Yeh and Walter 2017). There
are different types of innovation, an organization can pursue and disruptive innovation is one
of the most effective way of competing with industry giants. Disruptive innovative facilitates

5CORPORATE ENTREPRENEURSHIP AND INNOVATION
in developing new value network for the organization in an existing market. Disruptive
innovation provides lower performance in terms of monetary value, profit and revenue
generation. This facilitates in developing a blue ocean of organization using disruptive
technology as they are the only one catering to the needs of the new sets of consumers.
This could be very easily understood through examples such as transistor radio which
was initially used only by travellers. The product took time to grow as the quality of sound
were not up to the mark when compared to the Analog radios. However, with improvement in
the technology, it took over the market, making the analog radios obsolete. On the contrary,
sustaining innovation is another option for the company where they need to continuously
improve their existing products (Coccia 2018). However, in terms of software technology
companies it is essential to use disruptive innovation as the technology is progressing at a
rapid rate and majority of the companies are looking for new features and technologies that
would help them gain competitive advantage in the market. Innovation can either be
incremental and radical, and either of them can provide competitive advantage.
Radical and incremental innovation
Radical innovations are those technological innovations that completely disrupts the
market as they are completely new. It affects the overall business model of organizations and
creates a new model (Coccia 2017). However, radical innovations are few in numbers and it
is difficult to develop technology that is complete new and requires years of investment.
Salesforce is one fine example of radical invention where they developed the cloud model for
software delivery. This was the creation of Software as a service platform which has
transformed the CRM technology. However, this consist of high risk as in majority of the
occasions, companies fail to innovative based on the ideas (Sheng and Chien 2016). On the
other incremental innovation, improves the technology gradually which can be considered as

6CORPORATE ENTREPRENEURSHIP AND INNOVATION
agile methodology where continuous improvements are being made. These types of
innovations are cost effective and offers less amount of risk for the companies.
In case of Atlassian, both these type of innovation strategies could be effective.
However, the management of the board needs to convince the internal stakeholders such as
the investors to judge on the long-term performance of the organization. Atlassian is a huge
organization and they can afford to use both these types of innovation pattern to develop their
software technologies (Forés and Camisón 2016). The diagram shows the different types of
innovation matrix which can facilitate in understanding the technologies needed by the
organizations to make improvement to innovation model with the organization. The
stakeholders are concerned about the short-term growth, profitability and revenue generation.
Therefore, radical sustaining is one of the suitable options that Atlassian can use to constantly
improve on their existing products that would provide short term increase in sales and at the
same time would facilitate in making the existing products disruptive with continuous
improvements (Myllylä 2018).

7CORPORATE ENTREPRENEURSHIP AND INNOVATION
Figure 1: Disruptive vs incremental
(Source: Myllylä 2018 )
Blue ocean strategy
Blue ocean strategy has been often linked with innovation and it deals with
development of new market segment that is uncontested. However, unlike disruptive
innovation, it does not need to displace the existing technologies. Blue ocean strategy does
not require displacement as it focuses on creating their own market space (Dvorak and
Razova 2018). Therefore, instead of looking for solutions that are cheaper and better than the
existing software in the market, it is essential to redefine the problem which creates a market
for new products by keeping the existing products. In case of Atlassian, it would be more
beneficial to use the blue ocean strategy to develop their own market segment using their
level of expertise in software development (Agnihotri 2016). This can be better illustrated
through an example, Apple introduced iTunes that enabled the consumers to download music
legally at reasonable prices. This helped them in providing a different solution to the already
existing problem of accessing music at cheaper prices. Similarly, it can be used as a way of
providing new solutions to existing problems in a different way which could develop an
uncontested market and cause the market to disrupt.
Business model innovation
The development of a new business model is one of the major issues of the business
entity. Atlassian has been acquiring various scale organizations and it is essential to align
those subsidiaries to that of the main organization. The business model canvas is one of the
most effective ways of pivoting the existing business models and testing the new models.
This also helps in identifying the potential gaps in the market and within the organization to
develop a business solution (Christensen, Bartman and Van Bever 2016). Initially, the

8CORPORATE ENTREPRENEURSHIP AND INNOVATION
feasibility of the business model needs to be evaluated to check whether it is appropriate in
achieving the effective solution or not. This will facilitate in developing new revenue streams
by developing new ways of adding value to the products and the organization as a whole.
Atlassian needs to evaluate its existing business model to identify the way value is created
thorough existing product line and the target consumers (Foss and Saebi 2017). Then, the
current model has to be challenged and assumptions have to be reconsidered to highlight a
different dimension that has not been considered in the research. This will facilitate in
developing a new business model which will add a different value to the products.
The above models, approaches and concepts have clearly depicted the way
organizations can be made more innovative. The importance and relevance of innovation in
modern has been understood in the modern organizations as all these theories are aiming to
create new value for the organization through different methods. These methods are essential
for modern business entities to develop sustainable competitive advantage.
RECOMMENDATION
The evaluation of the different model, approaches and concepts have highlighted
diverse ways of solving the prevalent issues in Atlassian. The report has developed following
recommendations to deal with the current issues within the company:
 Organization can use disruptive innovation to displace the existing products and
software with something radical. Disruptive innovative will facilitate in developing a
long-term orientation within the organization. The company should use incremental
disruption where they can gain competitive advantage by gradually developing
superior products.
 The current KPI of the organization is focused on short term orientation where only
profit and revenue are being considered. However, innovation capability, progress and

9CORPORATE ENTREPRENEURSHIP AND INNOVATION
market orientation also need to be measured continuously to check the increase in
efficiency of the overall business model.
 The organization should also focus on developing a new business model by using
business model canvas. This will facilitate in developing an innovative model that
would be significant with the current demand in the market. The company should use
continuous integration of process innovation to make sure that there is increase in
efficiency of the overall organization. This would increase the growth rate and market
share of the organization and will significantly deal with the slow growth
 Developing a blue ocean is another strategy which would help in improving the
growth of the organization. Blue ocean is not easy to develop but the organization
needs to use their skilled workforce to address problems in different ways at diverse
levels. Blue ocean will also reduce the competition in the market as new target
segment will be developed. However, executing and developing Blue ocean and
disruptive innovation is quite tough and time consuming.
 In order to convince the share holders about the capability of the organization, radical
sustainability can be used where significant improvement in the existing products
would move the organization towards innovation.
CONCLUSION
Thus, it can be concluded from the report that the organization has been facing issues
with their growth and key performance indicators. In terms of innovation, the stakeholders
have been focused on improving short term revenue and profit which causes issues for long
term sustainability of the organization. The report had discussed the different approaches,
concepts and models of innovation which can be used by the organization to improve the
innovation in the business model. The evaluation of the different concepts shows that radical
sustaining is one of the most suitable ways of improving the growth rate and developing

10CORPORATE ENTREPRENEURSHIP AND INNOVATION
sustainable competitive advantage for the organization. The report also recommended the use
of business canvas model to develop innovative business model so that continuous
improvement can be made. The organization should also need to develop other key
performance indicators that would measure the innovative level of the organization, market
orientation and gap identification.

11CORPORATE ENTREPRENEURSHIP AND INNOVATION
REFERENCES
Agnihotri, A., 2016. Extending boundaries of blue ocean strategy. Journal of Strategic
Marketing, 24(6), pp.519-528.
Atlassian, 2019. Atlassian | Software Development And Collaboration Tools. [online]
Atlassian. Available at: <https://www.atlassian.com> [Accessed 8 February 2019].
Christensen, C.M., Bartman, T. and Van Bever, D., 2016. The hard truth about business
model innovation. MIT Sloan Management Review, 58(1), p.31.
Coccia, M., 2017. Sources of technological innovation: Radical and incremental innovation
problem-driven to support competitive advantage of firms. Technology Analysis & Strategic
Management, 29(9), pp.1048-1061.
Coccia, M., 2018. Disruptive firms and industrial change.
Dvorak, J. and Razova, I., 2018. Empirical Validation of Blue Ocean Strategy Sustainability
in an International Environment. Foundations of Management, 10(1), pp.143-162.
Forés, B. and Camisón, C., 2016. Does incremental and radical innovation performance
depend on different types of knowledge accumulation capabilities and organizational
size?. Journal of Business Research, 69(2), pp.831-848.
Foss, N.J. and Saebi, T., 2017. Fifteen years of research on business model innovation: How
far have we come, and where should we go?. Journal of Management, 43(1), pp.200-227.

12CORPORATE ENTREPRENEURSHIP AND INNOVATION
Myllylä, J., 2018. Key Innovation Management Models And Theories. [online] Viima.com.
Available at: <https://www.viima.com/blog/innovation-management-models> [Accessed 8
February 2019].
Sheng, M.L. and Chien, I., 2016. Rethinking organizational learning orientation on radical
and incremental innovation in high-tech firms. Journal of Business Research, 69(6), pp.2302-
2308.
Yeh, S.T. and Walter, Z., 2017. Determinants of service innovation in academic libraries
through the lens of disruptive innovation. College & Research Libraries, 77(6).