Innovation and Sustainable Business Development
Added on 2023-02-01
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Running head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Student’s Name
University Name
Author note
INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Student’s Name
University Name
Author note
1INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Executive summary
The purpose of this assignment is to analyze the impact of lean start-up movement in the
selected company that is IKEA. It introduces the IKEA and provides brief description of the
innovation trend that was initiated by the company. It states the ways in which the company
has gained its competitive position in the market. It describes the selected innovation trend in
the organization that is its eco-friendly kitchen. It analyzes and describes the organizational
environment, the innovation trend in the organization, the innovation strategy of the
company, the innovation capabilities, the value creation and value capture techniques of the
company. Further, it analyzes the impact of the innovation trend on the company analyzing
its opportunity and threats with the use of business model canvas by Osterwalder and
Pigneur. It recommends the ways in which the company can organize its innovation
activities, the additional innovation capabilities that should be adopted by the company, the
required innovation initiative and the ways to ensure that it creates and captures value from
the innovation. it also recommends the ways in which the company can better ensure strategic
alignment with the innovation trend. Lastly, it concludes that the business organization has
been highly successful by its continuous innovation and achieving customer satisfaction.
Executive summary
The purpose of this assignment is to analyze the impact of lean start-up movement in the
selected company that is IKEA. It introduces the IKEA and provides brief description of the
innovation trend that was initiated by the company. It states the ways in which the company
has gained its competitive position in the market. It describes the selected innovation trend in
the organization that is its eco-friendly kitchen. It analyzes and describes the organizational
environment, the innovation trend in the organization, the innovation strategy of the
company, the innovation capabilities, the value creation and value capture techniques of the
company. Further, it analyzes the impact of the innovation trend on the company analyzing
its opportunity and threats with the use of business model canvas by Osterwalder and
Pigneur. It recommends the ways in which the company can organize its innovation
activities, the additional innovation capabilities that should be adopted by the company, the
required innovation initiative and the ways to ensure that it creates and captures value from
the innovation. it also recommends the ways in which the company can better ensure strategic
alignment with the innovation trend. Lastly, it concludes that the business organization has
been highly successful by its continuous innovation and achieving customer satisfaction.
2INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Table of Contents
1. Impact of advances of the lean start-up business................................................................3
2. Introduction to IKEA and its innovation............................................................................3
3. Concept of innovation at IKEA..........................................................................................4
4. Importance of innovation strategy and alignment with organization.....................................5
5. Impact of innovation trend on IKEA.....................................................................................6
6. Recommendations how the organization’s innovation strategy responds innovation trend. .7
7. Recommendations to ensure strategic alignment to address the innovation trend.................9
Conclusion..................................................................................................................................9
References................................................................................................................................11
Table of Contents
1. Impact of advances of the lean start-up business................................................................3
2. Introduction to IKEA and its innovation............................................................................3
3. Concept of innovation at IKEA..........................................................................................4
4. Importance of innovation strategy and alignment with organization.....................................5
5. Impact of innovation trend on IKEA.....................................................................................6
6. Recommendations how the organization’s innovation strategy responds innovation trend. .7
7. Recommendations to ensure strategic alignment to address the innovation trend.................9
Conclusion..................................................................................................................................9
References................................................................................................................................11
3INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
1. Impact of advances of the lean start-up business
The lean approach reduces the constraints of the business operations and helps the new
start up business ventures to launch the products and services and by analyzing the wants and
needs of the customers at a faster rate rather than using the traditional methods. In other
words, it makes the business start-up and launching of new products less risky (Rasmussen &
Tanev, 2015). This methodology helps to break down the barriers of the start up formation or
launch a new product. The lean start-up is a paradigm shift and business development
strategy introduced by Steve Blank. The movement consists of many efficient ways and
techniques to reduce the risk of business failure and it is an approach to launch new products
in the market, and it is tested and validated by scientific experimentation (Patz, 2013). The
lean start up has impacted IKEA in establishing management practices that sustain innovation
in the organization. It has transformed the working culture of IKEA and has driven a long
term growth. It has impacted the organization in a positive way, it has helped the company to
prevent being struck on one idea and helped the company to implement new ideas and
innovation, and the risk has been reduced. It has helped the company to fend off risk in a
volatile market. Lean methodology has well worked with IKEA as it has continuous focus on
improving its products. The company is best known for its innovation purpose.
2. Introduction to IKEA and its innovation
IKEA is a Swedish company based in Netherlands; it is a multinational corporation that
pioneered the idea of selling affordable furniture’s. The company has around 400 stores all
across the world. IKEA introduces around 2500 new products every year for its customers.
Upon facing stiff competition from other online stores and retail company like Amazon,
Floyd, it has adapted to new technologies (Goffin, & Mitchell, 2016). The company has
1. Impact of advances of the lean start-up business
The lean approach reduces the constraints of the business operations and helps the new
start up business ventures to launch the products and services and by analyzing the wants and
needs of the customers at a faster rate rather than using the traditional methods. In other
words, it makes the business start-up and launching of new products less risky (Rasmussen &
Tanev, 2015). This methodology helps to break down the barriers of the start up formation or
launch a new product. The lean start-up is a paradigm shift and business development
strategy introduced by Steve Blank. The movement consists of many efficient ways and
techniques to reduce the risk of business failure and it is an approach to launch new products
in the market, and it is tested and validated by scientific experimentation (Patz, 2013). The
lean start up has impacted IKEA in establishing management practices that sustain innovation
in the organization. It has transformed the working culture of IKEA and has driven a long
term growth. It has impacted the organization in a positive way, it has helped the company to
prevent being struck on one idea and helped the company to implement new ideas and
innovation, and the risk has been reduced. It has helped the company to fend off risk in a
volatile market. Lean methodology has well worked with IKEA as it has continuous focus on
improving its products. The company is best known for its innovation purpose.
2. Introduction to IKEA and its innovation
IKEA is a Swedish company based in Netherlands; it is a multinational corporation that
pioneered the idea of selling affordable furniture’s. The company has around 400 stores all
across the world. IKEA introduces around 2500 new products every year for its customers.
Upon facing stiff competition from other online stores and retail company like Amazon,
Floyd, it has adapted to new technologies (Goffin, & Mitchell, 2016). The company has
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