Innovation and Business Sustainability Levels

Running head: INNOVATION AND BUSINESS SUSTAINABILITY LEVELS
INNOVATION AND BUSINESS SUSTAINABILITY LEVELS
Name of the Student
Name of the University
Author Note

INNOVATION AND BUSINESS SUSTAINABILITY LEVELS1
Table of Contents
Task 1.............................................................................................................................2
1. Selection of the organization..................................................................................2
2. About the organization and the selected innovation trend.....................................2
3. Definition of organizational environment, innovation trend, innovation strategy,
innovation capabilities, innovation value creation and capture.............................................3
4. Description of the ways by which creation of innovation strategy can be aligned
with strategies.........................................................................................................................4
Task 2.............................................................................................................................5
5. Analysis of the selected innovation trend on Ikea.................................................5
Business model canvas of Ikea......................................................................................5
6. Recommendations based on innovation response by Ikea.....................................7
7. Recommendation of best strategic alignment to address innovation trend............8
References....................................................................................................................10

INNOVATION AND BUSINESS SUSTAINABILITY LEVELS2
Task 1
1. Selection of the organization
The selected company for analysis in the report is Ikea and the innovation based trend
that has been considered for analysis of proper alignment with strategies of the organization
is design thinking. The proper implementation of the innovation based trend is based on the
ways by which new and innovative designs can be implemented by the organizations in order
to fulfil the changing requirements of customers (Arnold, 2017). The market risks that are
being faced by the organizations can also be reduced with the support that is provided by
implementation of design thinking. Design thinking is considered to be a significant aspect
that is able to affect the revenues and processes of modern organizations in a huge way
(Carlgren, Rauth & Elmquist, 2016).
2. About the organization and the selected innovation trend
Ikea is a multinational group that aims at designing and selling the ready-to-assemble
kitchen and home based appliances and different types of home accessories as well. Ikea has
developed its position as the largest retailer of furniture based products in the world since the
year 2008 (Ikea.com. 2019). The company was founded in the year 1943 by Ingvar Kamprad
who was a 17-year old carpenter. The founder of the organization was listed as one of
topmost ten richest people in the world in the year 2015. The organization is famous in the
industry for developing different types of modernist designs for the furniture and appliances
(Ikea.com. 2019).
Design thinking is mainly based on the strategic, cognitive and the practical processes
that are implemented in order to develop effective concepts that can help in the improvement
of services and products that are offered to the consumers (Liedtka & Ogilvie, 2011). The
perceptions have thereby been criticised for the simplification of different design based

INNOVATION AND BUSINESS SUSTAINABILITY LEVELS3
processes that can be implemented in the modern organizations. The major aspects that are
related to the development and implementation of design thinking include, context analysis,
framing and finding of the problems, development of the solutions and ideas (Liedtka &
Ogilvie, 2011).
3. Definition of organizational environment, innovation trend, innovation strategy,
innovation capabilities, innovation value creation and capture
Organizational environment – The environment in which an organization operates is
related to the methods by which the forces are able to affect their revenues and profitability
levels as well. The significant factors that are based on the external environment have an
impact on the organizations and the operations that are not controllable and are not within the
boundaries of the company as well (Bocken, Rana & Short, 2015).
Innovation trend – Innovation has been defined as the new concept or idea and
creative thoughts which are considered to be helpful for effective formation of the new
processes. The growth of better solutions is also considered to be a significant aspect that is
able to affect the requirements and the needs of the consumers. The trend related to
innovation is considered to be a significant aspect that is able to influence the external
environment. The proper fulfilment of customer requirements is also based on the application
of innovation (Shapira, Ketchie & Nehe, 2017).
Innovation strategy – The strategy based on innovation is mainly defined as the
approach that can be applied by the organizations for the purpose of addressing the variations
that have taken place in the exterior environment and the different innovation based trends
that exist in the market as well. The processes that are implemented by organizations in order
to maintain organizational operations are related to innovation based strategies (Geissdoerfer
et al., 2017).