Aston Martin's Innovation Strategy
Added on 2020-01-21
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INNOVATION AND RISKMANAGEMENT
Innovation comprises of an organization’s response towards the trends and competition.It is the ability of a firm to make most out of what they possess.As per the views of Chesbrough(2013), innovation is a method that transforms an idea into product and service. It is a procedureof translating an idea into element that creates value. It is essential to consider innovationbecause it helps in the accomplishment of objectives. It also provides a better opportunity toorganization and enhances customer satisfaction level as well (Chesbrough, 2013).This essay ismainly focused on the innovation and risk management of Aston Martin Car which is a highlyinnovative firm. For this aspect, Aston Martin has to do risk management in an appropriate manner so thatcompany would reduce the risk of failure and will attain growth in automobile industry. In asimilar manner, firm should make appropriate and credible process design which would aid tomitigate the risk of failure (Drucker, 2014). Further, this firm is adopting good leadershipsupport in order to reduce the employee resistance and also, to implement the actions effectually.But, along with that, organization must ensure that there are sufficient and efficient resourcesthat are available to them while doing innovation (Huizingh, 2011). Furthermore, Chesbrough,(2013) has also contended that company’s management must define roles and responsibilities toevery employee to avoid ambiguity at the time of implementation. Most importantly, Astonmartin is also focusing on Strategic Implementation Approach which helps in making strategicplanning (Chesbrough, 2013). Lastly, communication process is also effective so that everyemployee would remain aware about the changes being made and that also facilitates inreduction of resistance. Asper the structured study, it has been identified that business organization isovercoming with number of issues by effective focus on seven dimensions of innovation.Beverland (2005) has asserted that the model is considered beneficial to manage risk inappropriate manner and leads business at impressive level of success. Company has focused onseven dimensions of innovation in an appropriate manner to accomplish goals and objectives in adesired form. Management of Aston Martin has ensured that their innovation process is wellmanaged and thereby, they are addressing the first dimension of innovation. In traditionalapproach, organization was focused on innovation which was guided by its vision, mission andgoals. Similarly, in non-traditional approach, innovation has been considered as a critical factor2
(Beverland, 2005). For example, future visioning techniques are used by Aston Martin whichconstitute the non-traditional approach to business strategy. In this regard, the company carriesout consumer insight research to find out their preferences. However, it can be critically analysedthat in order to adopt this non-traditional approach to innovation, exhaustive research needs to becarried out by Aston Martin. Also, the data gathered should be reliable (Verganti, 2013). It isonly then that innovation could be brought about within the organization. Another example ofimplementation of this dimension of innovation is that Aston Martin has industry foresight. Itidentifies the trends in the industry and understands them. It launched the model DB11 with abold exterior that was the current trend in the industry (Discover DB11, 2016). In this respect,business firm has established a common strategy that covers traditional as well as non-traditionalapproach. It has provided an ability to work in the most suitable manner in order to accomplishgoals (Camisón, 2012). As per the views of Gupta and Malhotra (2013), management also needs to focus on correctalignment of strategic aspects so that better support can be provided to innovation activities.With an improved alignment of activities according to key business needs, the management ofAston martin is easily avoiding risk during development of innovative products and services(Gupta and Malhotra, 2013). In respect to industry foresight, it has been referred that thedetermination of emerging trends is also essential. In other aspect, Drucker, (2014) has statedthat the management of Aston Martin must have real information about the key trends of automobile sector. It assists in the development of innovative products and emerging trends(Tadajewski, 2012). For example, many new emerging trends of auto-mobile industry is thatconsumer demand is shifting more towards the SUV. Thus, Aston Martin has planned to adoptthis trend (Chesbrough, 2013). This suggests the necessity for the company to have deepknowledge about the industry trends. Tadajewski (2012) has also contended that the customer insight is also one of significant factorthat leads business to impressive level of success and provides effective development ofinnovative products (IForsman, 2011). With an improved analysis of customer needs, business3
organization is focused towards the development of innovative products in an optimistic manner(Verganti, 2013). Organization is considering the dimension of strategic alignment as a critical aspect foreffective management of innovation. In order to provide better support to innovation, businessentity focuses on various activities that enhance performance ability. Company provides trainingto employees so that innovative ideas can be generated more effectively at the time of renderingservices. In this way, Aston Martin brings about internal alignment. This helps in ensuring thatthe internal team of organization will bring forward innovation initiative. For example, a cross-functional core team is formulated at Aston Martin. This comprises of energetic change agents,future leader5s and visionary members of the workforce (Tadajewski, 2012). Brain stormingactivities have boosted the skills of workforce and motivate them to present innovative ideas inan appropriate manner (Gupta and Malhotra, 2013). On the contrary, while taking the brainstorming session, it is not necessary that employees could come with the innovative ideas and italso does not guarantee that employees will get motivated or not.In order to meet the dimensions of “standards of industry foresight” and “customerinsight”, business firm has focused on number of activities that effectively analyze the market aswell as customer needs (Chan, 2011). Investment on market research activities has increased inorder to understand the market trends and customer expectations. Various online surveys haveorganized by the organization to communicate with customers and identify key issues thatimpact their perception in a negative manner. Various industrial conferences have been attendedby the top level managers to determine key trends and accomplish goals effectively. It can becritically analyzed that, for carrying out surveys and industrial conferences, Aston Martin has toincur heavy cost for this. This in turn would not give monetary returns to the company.Therefore, organization's profitability may decline (Chesbrough, 2013). Core technologies and competencies are also critical aspect for the organization and itmay influence the operational activities in diverse manner. It is all about levering and extendingcorporate assets so that goals can be accomplished in desired time period. Verganti (2013) hasalso critically said that every business organization is focusing on activities which ensure thattheir professional and competency factors are continuously improving. In addition to this,management of Aston Martin needs to focus on continuous development of various technological4
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