Corporate Innovation and Entrepreneurship

This assignment explores the concepts of corporate innovation and entrepreneurship with a focus on Webasto, a top supplier in the automotive industry. It discusses the challenges and opportunities for promoting organizational creativity, the development of entrepreneurship, and the perspectives of influential theorists. It also delves into Webasto's approach to corporate innovation and the characteristics of its climate and culture.

Corporate InnovationCorporate Innovation
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EntrepreneurshipEntrepreneurship

Executive Summary
Corporate innovation is formulated for satisfying needs within a sustained time frame
which may also compromise transformative approach for execution of inventions and ideas for
attaining tangible improvisations. The crucial aspect innovation is creativity which is reason
behind transformation process along with challenges related with problem that is to be solved.
Entrepreneurship denotes willingness and capacity for developing, organising as well as
management of business venture along with risks through which profit can be attained. Basically,
it involves the act for creation of business while building as well as scaling them for generation
of profit. But it seems limited thus it can also be denoted as transformation of world by solving
bigger problems such as creation of innovative product, social alterations or delivering of new
life changing perspective.
To acknowledge the concept of corporate innovation and entrepreneurship Webasto is
taken into consideration. They are the top 100 suppliers within automotive industry and delivers
products like battery systems, charging solutions, cooling, heating and roof system. Through the
usage innovations and technologies they bring in their quality products which revolve around
vehicles. In 2017, they have brought in the innovative product portfolio within Auto Shanghai.
There recent creativity involves e-solutions and services in context of charging solutions &
battery systems. For this, they are making use of different models like cross functional model,
product lifecycle and many others. To illustrate the working environment handy's culture is
being utilised, innovation matrix is depicted for bringing in innovation and theory of
achievement is illustrated with respect to entrepreneurship.

Table of Contents
Executive Summary.........................................................................................................................2
Introduction......................................................................................................................................1
Acknowledge challenges and opportunities for promotion of organisational creativity.............1
Development of entrepreneurship................................................................................................2
Perspectives of influential contemporary theorists, models and contributors.............................3
Webasto's approach for corporate innovation..............................................................................4
Characteristics of Webasto's climate as well as culture...............................................................4
Key dimensions related with lead user methodologies................................................................5
Success of Webasto.....................................................................................................................5
Changes required.........................................................................................................................5
Conclusion.......................................................................................................................................6
References........................................................................................................................................7

Introduction
Innovation refers to a creative thoughts, new idea and imaginations in the form of
methods or devices. This enables firms to sustain growth along with improvisations in a
consistent and continuous basis (Amore, Schneider, Žaldokas, 2013). Corporate innovation
denotes the process that is liable for transformation of new inventions as well as ideas into
services, process and products which renders tangible benefits. Entrepreneurship refers to
process that is associated with formulation of design, launch and executing new business
operations. The individuals who are liable for creation of these businesses are referred to as
entrepreneur. Corporate innovation and entrepreneurship acts simultaneously as creativity leads
to enhancement within operations of firm (Bierwerth and et. al, 2015). This assignment is based
on Webasto which was founded in 1901 and are partnered with automotive manufacturers for
producing roof, cooling and heating systems. This assignment comprises of acknowledgement to
certain models as well as theories related with innovation and entrepreneurship.
Acknowledge challenges and opportunities for promotion of organisational creativity.
The process associated with transformation of invention or idea within a service or goods
which are liable for creation of values for which customers can make payments is referred to as
innovation (Bruton and et. al, 2015). While bringing in new product, Webasto aims at bringing
creativity within their products so that they can reach maximum of their potential customers.
This innovation within their services leads them to have strong position in market. To remain
competitive within the market, firm have to provide their customers with unique services which
are not provided by others but while doing this there may occur certain challenges and even may
provide firm with opportunities for growth (Schneider and Spieth, 2013). These aspects have
been provided beneath:
Challenges: Within the market, there exist strong competitors and to stay strong as well
as consistent they have acknowledge different situations which prevails within. Webasto
furnishes their services in different countries. Therefore, it is important for them address certain
aspect like political stability, tariffs which are applied on automotive products, economic
conditions, technology and legal aspects (Chang and et. al, 2015). An instance can be taken into
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consideration firms are opting for digitalisation and if Webasto is making use of traditional
methods then there growth will be slow. For such kind of challenges, it is important to
understand all aspects and impact they can create on operations of firm. The other challenge is to
be competitive and this is only possible when there is new innovation but while bringing in new
product it is necessary to understand needs of the probable customers so that there can be a profit
margin (Fabrizio, 2014).
Opportunities: By viewing the challenges, this leads to creativity like when sales are
declining, Webasto can opt for bringing something new so that situations can be met easily. An
instance can be taken with respect to this (Chemmanur, Chatterji and Fulghieri, 2013). An
instance can be taken with respect to this Webasto, like they have opted to provide their
customers with high quality battery systems along with charging solution. The difference with
respect to other is that they made use of cross functional model which provided interaction in
between among devices like on cold days the heat generated by high voltage heaters of Webasto
can be utilised for specified temperature control of the batteries provided by them (Haar and
White, 2013). With respect to this, supply of power is made sure by solar roof or wallbox. This is
the creativity which is being rendered by firm to stand different within market. It leads them to
grab attention of individuals as battery life will be maintained (Chen and et. al, 2014). For
ensuring certain aspects related with how the opportunities can be utilised, firm has opted for
innovation matrix.
Innovation matrix denotes visualisation which is liable for incorporating different aspects
related with creativity or innovations (Innovation Matrix, 2019). Entrepreneur of Webasto needs
to spend maximum of time within carrying out business activities along with minimal number of
innovation and emphasis has to be laid on improvisation of day to day operations (Corbett and et.
al., 2013). It denotes the first block of matrix.
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(Source: Innovation Matrix, 2019)
The other block is evolve which will lead the employees of organisation to identify
opportunities through which business can grow as well as ways n which tasks can be organised.
Third block involves strategic improvements along with innovative ideas are validated, evaluated
and investigated (Dentchev and et. al, 2016). The last block involves transforming business, as
Webasto has acknowledged different perspectives, now they have to be addressed. Here, they get
into new ways of working or bringing something innovative in market.
Development of entrepreneurship
The process associated with creation of new enterprise as well as bearing risks which
comes along with them and gives a view of making the profit is referred to as entrepreneurship.
Development entrepreneurship denotes enhancement of assets by appropriate applications and
learning in a systematic manner (Ederer and Manso2013). Basically, it implies improvements
which can be made within skills of an individual. An instance can be taken with respect to
Webasto like analytical skills are crucial so that different situations can be understood by
dissimilar perspectives which lead to creativity within handling distinct aspects. Time
management, learning, communication and team work are important skills which must be
possessed by an entrepreneur (Foxall, 2014). This can be understood by taking an instance like
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Illustration 1: Innovation Matrix

there come a new business with fresh innovations, the existent entrepreneur needs to be quick
with whatever new they are about to bring to have affirmative impact. It is only possible when
decisions are made on time; knowledge is being possessed in respect to market and team is
required to work on the specified idea but for this collaboration is also needed (He and Tian,
2018). For development of entrepreneurship, Webasto has opted to make use of theory of need of
achievement.
David C McClelland has given the theory of need of achievement which was reflected on
economic growth along with factors which creates an impact on them (Hornsby and et. al,
2013). With respect to entrepreneur of Webasto they have to identify the values as well as
motives for exploiting the opportunities and making use of them for having appropriate vantage
from them (Hsu and et. al, 2014). Rationale behind this is that emphasis is laid on innovative
perspective within an entrepreneurial role.
(Source: Acquired needs theory – need for achievement, power & affiliation, 2017)
Theory implies a desire for doing well not for others but for self satisfaction as it will lead
to attain the individual goals (Johnson, 2016). For an instance, entrepreneur of Webasto wants to
acknowledge the changing trends as well as demands of their customers they furnished
standardised interface within their vehicles by providing different options for roof (Acquired
needs theory – need for achievement, power & affiliation. 2017). This was innovative and also
led to development of entrepreneurship in terms of skills.
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Illustration 2: Theory of need of achievement

Perspectives of influential contemporary theorists, models and contributors
Different individuals have different perspectives in context of innovation &
entrepreneurship; some of these have been illustrated in this section:
Theory of social change: As per Max Weber, entrepreneurial growth depends on ethical
value system of society. This illustrates that religion creates a strong impact in ways services are
being delivered by entrepreneur (Kohler, 2016). For an example growth of industry depends on
acquisition of money and rationalised technology. As per this theory, the development depends
on the communities as well as religious beliefs and emphasis was on accomplishment of both
spiritual needs and hard work for attaining individual goals (Kuratko, Hornsby and Covin, 2014).
Theory of social behaviour: According to Kunkel, there is a economic, political and
social structure which drives in entrepreneurs (Karimi and Walter,2016). Like if within market
strong competitors exist in retail sector then hardly people will opt for going within this sector,
as existent brand has made their strong positioning within the market (Kuratko and Audretsch,
2013). Along with this, if economy of country is not good then also entrepreneur will think to
render their services.
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An instance can be taken into account with respect to Webasto, they have brought in the
premium class roof system for their customers with highest quality along with various
configuration options (Kuratko, Covin and Hornsby, 2014). This was carried out to acknowledge
needs of society.
Webasto's approach for corporate innovation
The basic methodology which is being followed by entrepreneur of Webasto is continual
improvement within their products as well as processes along with enhancement within design of
their products, usage of latest technologies and creation of new products (Maclean, Harvey and
Gordon, 2013). This is evident from the products which they furnish within market. An instance
can be taken to understand this aspect like Webasto in shanghai has brought in convertible roof
for luxury compact class SUV in which entrepreneur provided with an off road drive and open
air compact vehicle. They rendered their customers with feeling of premium standards. The
entrepreneur aims at addressing needs of their consumers by bringing in innovations in services
that are furnished to them (Osburg and Schmidpeter, 2013).
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Illustration 3: Process of Behaviour Change Framework

3 Horizon of growth: Websto has brought in within the market electric heater as for high
growth segment, the high-voltage heater with a concept of energy mobility in which they have
opted to furnish 10kW heating capacities (Osburg, 2013). Within Websto, there has been a
robust growth in terns of increased number of sales which have been occurred in China 10
around 900 million euros which denotes that a single automotive market worldwide has reached
to top spot. There continuous opportunities for growth within the markets of China, thus Websto
can proceed to enhance there production network (Phillips and et. al, 2015).
This implies firm needs to make use of innovative approaches through which they will be
able to grow more within the market as well as set benchmark within ever growing segment. For
this they imply 7 Drunker's innovation model which will aid them to identify what is expected by
people and why they need to bring in specified product basically a rationale will be provided for
acknowledging bringing in something new within the global market (Rexhepi, Kurtishi and
Bexheti, 2013).
Characteristics of Webasto's climate as well as culture
The entrepreneur has made use of handy’s model which provides an insight into the culture
and environment which prevails within working premises of Webasto. It is illustrated here: there
exist assorted cultures which can be utilised by firm depending upon the tasks they have to carry
out (Sahut and Peris-Ortiz, 2014). Power culture denotes that there is a central entity that is liable
for everything but the major loophole in this is that for every aspect or formulation of decision
that authority has to be approached but affirmative conclusions can be formulated. Within role
culture authorities have given specified responsibilities within a highly structured environment,
there exist hierarchical bureaucracy which makes decisions to be time consuming and possible
delay within services (Soriano and Huarng, 2013). Task culture denotes depending upon the
project teams is formulated and they are liable for formulating decisions with respect to this. This
culture is being followed within Webasto as each individual can give their viewpoint which leads
them to have innovative solution to specified situation. Last aspect in this is person culture,
where each individual takes them as a superior which leads to higher conflicts and disputes as
well as it becomes difficult to have mutual understanding with respect to different perspectives
(Spieth, Schneckenberg and Ricart, 2014).
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Key dimensions related with lead user methodologies
In 1980’s Professor Eric gave the term which is dependent on empirical realisation related
with innovation that it is not initiated by the firms but send users acts as a force behind
development. The term was named as lead user method (Turró, Urbano and Peris-Ortiz, 2014).
Webasto acknowledge the requirements of market in terms of what they are being given and
what ‘they needs. This aids entrepreneur to bring innovation within the services furnished by
them. the major attribute of lead user method is that it is an open innovation approach for
development of services, processes and products which are customer oriented, geared as well as
close to market (Wagner, 2017). Creativity is attained by knowing what customers need, it gives
the rough idea about what has to be done but proper planning things are being implemented.
Success of Webasto
The ways in which operations are being carried out and extent up to which needs of
customers are addressed leads to success or failure of a firm (Wu and Huarng, 2015). In context
of Webasto, they have been bringing in various innovations to accomplish the demands of their
customers like innovative roof system along with solutions, high voltage heater for electric &
hybrid vehicles, convertible roof for SUV and fresh e-solution as well as services for business
unit (Wei and Ling, 2015). They are being carried out acknowledge what customers expect from
them and when there demands are accomplished beyond their expectations then it definitely
creates an affirmative impact on the ways in which services are delivered (Prabhu and Jain,
2015). Apart from this, they wait for new innovations which will be brought in by the Webasto.
This leads them to ladder of a success.
Changes required
Though the firm is bringing in innovation within automotive field but as technology is
evolving they have the opportunity for bringing in more enhanced innovations (Martín-Rojas,
García-Morales and Bolívar-Ramos, 2013). The instance can be taken to understand this aspect,
like Webasto has been brought the SUV with open roof for premium customers but if same
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services are being provided to a normal person then they can cover a huge market share as out of
100 individuals there will be around 5 premium customers and rest will be normal. So the ratio
of profit as well as sales will be high (Nicolopoulou and et. al, 2016). Apart from this, there has
to be a situational leadership so that depending upon the situation prevailing within the market
alterations can be carried out. This will not hamper the performance of employees of Webasto all
off a sudden they will be open to this environment (George, McGahan and Prabhu, 2012). Along
with this, each individual must be given the option to speak as this might lead them to have
innovative approach for dealing with certain conditions. The major issue which can be faced by
Webasto is that whether people will accept the what is brought by them and what should be
brought in to captivate huge population towards services which are being delivered by them
(García-Morales, Bolívar-Ramos and Martín-Rojas, 2014). The different theories will provide
them with how things have to be carried out but it is necessary to analyse the market which will
enable them to know actual requirements of their market and accordingly bring in there own
innovation. Furthermore, it is also recommended that they must see what there competitors are
bringing in within the market so that they do not manufacture the same product or services
(Bhardwaj and Malhotra, 2013). This will lead them to bring in more innovative products which
will satisfy needs of the market in an impelling manner.
Conclusion
From above it can be concluded that corporate innovation & entrepreneurship are identical
terms as entrepreneurship denotes bringing in something new and that is being carried out by the
innovative ideas or transforming an idea into a reality. For this, entrepreneur can make use of
different models, techniques and approaches which will enable them to ensure that requirements
of customers as well as employees are addressed in an appropriate manner. Furthermore, culture
which prevails within working environment is liable for creating affirmative or pessimistic
impact on the ways in which services are delivered.
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