Innovation and Sustainable Development Report 2022

RUNNING HEAD: INNOVATION AND SUSTAINABLE DEVELOPMENT
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Innovation and Sustainable Development
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Executive Summary
This report highlights the importance of innovation in the business and practices that
aims at development of a value proposition in Tesla. Value proposition is an important element
in innovation and the report give insight on the models or framework that helps in cresting a
value proposition of a company. The disciplined entrepreneurship canvas and value proposition
canvas is used to understand the structure and elements of Tesla and how Tesla create value for
its targeted customers. Further, the report is followed by tools and techniques of innovation that
can be implemented by the companies to boost up the creativity level of employees and
management. These tools are brain storming, attribute listing, focus groups and so on. At last,
reflection is given on my personal innovation capabilities and the strengths and weaknesses that
identified during the study.

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Table of Contents
Introduction......................................................................................................................................3
Value Proposition............................................................................................................................3
Tesla Disciplined Entrepreneurship Canvas................................................................................4
Tesla Value Proposition Canvas..................................................................................................5
Critical Analysis..............................................................................................................................6
Innovation tools and techniques......................................................................................................7
Reflection.........................................................................................................................................7
Conclusion.......................................................................................................................................8
References........................................................................................................................................9

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Introduction
Innovation is a process that ensure or generation of new ideas and implementation of it in
order gain profits and to solve a problem in the society. Idea generation takes place by
identifying the problem and finding innovative solutions to solve that problem this process is
considered as innovation (Oeij, Rus & Pot, 2017). Success of innovation depend on the value
created from the new idea or product so due to that value proposition comes into existence as
without creating the value there is no innovation. The value proposition is an important aspect
for successful innovation and if innovation has high perceived value to the customer than it
automatically leads to increase in sales of the product (Payne, Frow & Eggert, 2017). This report
highlights the importance of cresting a value preposition and different frameworks such as
disciplined entrepreneurship canvas and value proposition canvas can be used in creating a value
proposition.
Value Proposition
Value proposition is considered as the creation of value in a product so that it can satisfy
the needs of the customers or it is taken as the sum total of offering that is delivered to customers
at the time of interaction with them either through products or by an organization (Lindic &
Marques, 2011). The concept of value proposition can be implemented at different levels in an
organization with the help of various frameworks one of the frameworks is value proposition
canvas and disciplined entrepreneurship canvas and an organization in order to build value
proposition choose any framework that best fit the organization. Creation of value can be done
through six elements that are target market, value, offering, prioritizing benefits, proof and
differentiation (Vorbach, Muller & Poandl, 2019). Let us understand this will the help of its
implication in practical world with understanding the value proposition framework of Tesla.
“Tesla is an American automobile manufacturing based in California and founded in 2003. In
automobile sector tesla is doing very well under the vision of Elon Musk as he transforms the
tesla as a technology company and an independent automaker that offers electronic cars at
affordable price”. The company is leading in the automobile sector by offering valuable products
to their customers. Developing vale proposition depend on the which customers segment is

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targeting by the company, which needs of customers are going to be meet, and setting the price
for this valuable offering so that customers can get valuable products and company gets profits.
Tesla Disciplined Entrepreneurship Canvas
A disciplined entrepreneurship canvas is related to analyzing or questioning the existence
of the company and the value they offer to the customers. There are various elements that are
studied under this model that includes reason of existing, initial market, value creation,
competitive advantage, customer acquisition, product unit economies, sales, overall economies,
design and build and scaling (Sheehan & Bruni, 2015). In this report focus is on the four
elements that are discussed below with connecting it to Tesla.
Tesla focuses on three main areas that are recharging flexibility, long range and high
performance its mission is to develop electric vehicles of the best design and without any
performance issue. “Tesla’s mission is to accelerate the world’s transition to sustainable energy”.
Further, vision of Tesla is “to create the most compelling car company of the 21st century by
driving the world’s transition to electric vehicles.” Tesla mission and vision is connected with
the company’s products that indicate that company is driving towards achieving it (Lugano,
Kurillova & Hudak, 2018).
Tesla shifts its target market in recent years and focuses on primary and secondary
market. Firstly, primary level include older upper middle class males ($100,000 and $350,000)
who have keen interest in buying luxury cars with high value of safety. Secondary market
includes the demographics that are not able to afford luxury cars that are young males of
prestigious universities that are the potential buyers who might buy luxury cars in near future.
Introduction of new models by Tesla shifted its target market to family oriented segment that
include young women and children and young adults of both the genders in middle income group
(Chen & Perez, 2018).
Competitive advantage of Tesla is its innovation and focus on sustainability, as every
single model or product manufacture by company has some unique feature as its focus on solar
roof products and solar energy storage distinguishes the company from the fine players in the
market or from its competitors. Tesla present itself or positioned itself as the clean energy
company and valuable product company that offer products with warranty and safety policies to

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the customers (Biloshapka, Osiyevskyy & Meyer, 2016). This leads to reliability of the brand
and that strong brand image helps in to boost up the sales and ensure customer loyalty towards
the brand.
“Tesla remains a flawless exemplification of value proposition. Tesla focuses heavily on
the car buying experience, allowing for customization and limit mass production”. The value
proposition that company create through focusing on the car buying experience of customers, by
limiting mass production and by allowing for customization (Massa, Ludeke & Bocken, 2016).
Tesla sells electronic cars directly to the customers that help the company to gain better control
on cost of inventory and maintaining and strengthen the Tesla brand image in the market. All this
steps by the company helps in creating a unique buying experience to the customers of Tesla that
cannot be offered by other companies. In a nutshell, Tesla disciplined entrepreneurship canvas
highlights all the areas that are important in the value creation and innovation and how this
company excels in the industry and maintains the value proposition (Williams, 2012).
Tesla Value Proposition Canvas
Value proposition canvas consists of two side right and left side. Tesla value proposition
is given below that indicates the potential customers of the electric car. The diagram explains the
jobs to be done by the company that mean what Tesla is going to deliver its customers through
its product offering (Osterwalder & Pigneur, 2010). The main aspect in this segment is image of
success and commute to work. Further, future things to be done are to prepare the model that
cover long distance. The pains segment of the value proposition in relation to Tesla is that there
is shortage of charging stations in the country and customers faced lots of problems in searching
the charging point in a parking spot. Customer is afraid of dead battery of the car while driving
and this is the pain element from customer’s point of view. Gains in the electric car are design
and models offer by the company due to that customer perceived high value from the cars and
others gains include high battery and safe travels plus seating capacity that company provided in
its various advanced models (Perkins & Murmann, 2018). Left side of the canvas focuses on
product and services offered by the customers this indicate that Tesla examined their customers
very well and produced goods as per their demand so that they get the highest value as Tesla

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offer eight years of battery warranty and has an extraordinary design that includes a 17 inch
screen that make its models advanced and helps company to gain competitive advantage. It can
be said that value proposition canvas of Tesla is the best fit because company knows very well
who their customers are and what are their wants and needs (Fournier, 2017).

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Source: (Osterwalder, Pigneur, Bernarda & Smith, 2015)
Critical Analysis
Innovation process also includes testing of ideas using three elements that are feasibility,
viability and desirability. Desirability checks whether all the problems that are faced by the
customers are addressed by the company or not or the innovation that is done by the company is
solving the customer problem in a right way or not (Mahdavimazedh & Stackhouse, 2019). From
the above analysis it is said that Tesla fulfill the needs and wants of the customers and also
solved the problems that customer face and offer environmental friendly cars to solve the
problem of charging. A feasibility check helps in measuring the capabilities related to operations
in a new solution. This includes analysis of strengths and weaknesses that a company in order to
implement the idea or innovation. If company has caliber and potential to build the capabilities
than it helps in boosting up the ideas and strengthen the customer service, financials capability,
technology and partnership( Muller, 2012). Tesla has strong brand image and company can build
its core capabilities and strengthen its brand image by designing an autonomous car. Viability
checks the long term sustainability of the idea or innovation that indicate whether a business
hzhHh
Gain Creators
Products &
Services
Pain Relievers
High Tech
Feel
Autonomous
Car
Focus on
Design &
Style
Performance
5 + 2 Seats
Charging
Network
Charging
45-90
KM/H
UPPER MIDDLE CLASS MALE $100K + INCOME
Gains
Pains
Jobs to Be
Done
High
Safety
Performance
Personal
Mobility
Occasio
nal Long
Distance
Commute
to work
Range
Gains
Design
Fear of
Dead
Battery
Lack of
Charging
Stations

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model of company fits with customers demand and needs, the main step that tesla can take is to
build infrastructure for supporting the driving of electronic car or to supports car drivers who go
for longer trips this shows that electric car not only fit into trends but will lead in the market
(Weinstein, 2016).
Innovation tools and techniques
Some of the innovation tools and techniques that are used to boost up the creativity level
and to solve the problems are attribute listing, brain writing, Osborn Checklist, brainstorming,
systematic inventive thinking, random input, personal analogy and excursion techniques (Massa
& Tucci, 2013). All these tools and techniques boost innovation or help in cresting various
solutions of a problem. Attribute listing is a technique that is used to examine the impact of
problem in all the possible aspects. Brain writing is noting down the ideas by encouraging others
to think possible ways to solve a problem further this ensure active participation. Application of
all these tools and techniques is such that the companies use brain storming and focus groups
frequently to solve the problem or to find an innovative solution (Hidalgo & Albors, 2008). Tesla
use brainstorming and focus group as the major tool for innovation and encourage its employees
to share ideas. From the above analysis it is know that value proposition and study of target
market is important aspect in the process of innovation and with the help of tools and techniques
of innovation a proper way is find out to reach the target market as done by the Tesla. Company
analyzed its target market and developed new ideas through continuous brainstorming,
encouraging its employees to share ideas and by experts groups (Walrave, Talmar, Romme &
Verbong, 2018).
Reflection
In this section I am going to conclude my findings and innovativeness level that I excel
while working on this assessment. I understand that innovation is a systematic process that
includes identifying problems, fining innovative solutions and then analyzing the various
alternatives to select the best one. During this I get to know my strengths and weaknesses as I
possess good problem solving and analytical skills because I can easily analyze the customer
demand in the market and can think out of the box to find different alternatives. Further, I also

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get to know about my weak areas as I am not able to contribute in team but if work individually I
deliver my best. Through this I developed my creativity level and understand the importance of
innovation in the success of nay business. The innovation comes from value proposition and it
comes from the satisfaction of the customers.
Conclusion
Innovation is a process that leads to new imagination and new ideas or solving the
problem in a better way. It can be concluded from the above analysis and study that value
proposition plays an important role in facilitating innovation in the business. Value proposition is
the value that a business or company promises to deliver to the customer so that their wants and
desires fulfilled or their problems can be solved or that product that make their life easier. The
concept and framework of value proposition is best explained by using the example of Tesla as
how the company properly analyzed its target market and developed innovative products that
satisfy their needs. The innovation done by the company helps Tesla to build a strong brand
image and to create value for the customers. Further many tools and techniques used to ensure
that innovation and creativity can be boosted in the companies. Tesla is an electric car
manufacture and use brainstorming and other techniques to ensure creativity level at its best.

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References
Biloshapka, V., Osiyevskyy, O., & Meyer, M. (2016). The value matrix: a tool for assessing the
future of a business model. Strategy & Leadership, 44(4), 41-48.
Chen, Y., & Perez, Y. (2018). Business model design: lessons learned from Tesla Motors.
In Towards a Sustainable Economy (pp. 53-69). Springer, Cham.
Fournier, G. (2017). The New Mobility Paradigm. Transformation of Value Chain and Value
Proposition Through Innovations. In The Automobile Revolution (pp. 21-47). Springer,
Cham.
Hidalgo, A., & Albors, J. (2008). Innovation management techniques and tools: a review from
theory and practice. R&d Management, 38(2), 113-127.
Lindič, J., & Marques da Silva, C. (2011). Value proposition as a catalyst for a customer focused
innovation. Management Decision, 49(10), 1694-1708.
Lugano, G., Kurillova, Z., Hudák, M., & Pourhashem, G. (2018, May). Beyond Travel Time
Savings: Conceptualizing and Modelling the Individual Value Proposition of
Mobility. In The 4th Conference on Sustainable Urban Mobility (pp. 714-721).
Springer, Cham.
Mahdavimazdeh, H., Falkenberg, L., & Stackhouse, M. (2019). The Innovation value canvas: A
Guide to defining value proposition and target customers. International Journal of
Innovation Management.
Massa, L., & Tucci, C. L. (2013). Business model innovation. The Oxford handbook of
innovation management, 20(18), 420-441.
Massa, L., Lüdeke-Freund, F., & Bocken, N. (2016). business models for shared value. Network
for Business Sustainability.

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Müller, M. (2012). Design-driven innovation for sustainability: A new method for developing a
sustainable value proposition. International Journal of Innovation Science, 4(1), 11-24.
Oeij, P., Rus, D., & Pot, F. D. (Eds.). (2017). Workplace innovation: Theory, research and
practice. Springer.
Osterwalder, A., & Pigneur, Y. (2010). Business model generation: a handbook for visionaries,
game changers, and challengers. John Wiley & Sons.
Osterwalder, A., Pigneur, Y., Bernarda, G., & Smith, A. (2015). Value proposition design.
Campus Verlag.
Payne, A., Frow, P., & Eggert, A. (2017). The customer value proposition: evolution,
development, and application in marketing. Journal of the Academy of Marketing
Science, 45(4), 467-489.
Perkins, G., & Murmann, J. P. (2018). What does the success of Tesla mean for the future
dynamics in the global automobile sector?. Management and Organization
Review, 14(3), 471-480.
Sheehan, N. T., & Bruni-Bossio, V. (2015). Strategic value curve analysis: Diagnosing and
improving customer value propositions. Business Horizons, 58(3), 317-324.
Walrave, B., Talmar, M., Podoynitsyna, K. S., Romme, A. G. L., & Verbong, G. P. (2018). A
multi-level perspective on innovation ecosystems for path-breaking
innovation. Technological Forecasting and Social Change, 136, 103-113.
Weinstein, A. (2016). Superior customer value: Strategies for winning and retaining customers.
CRC Press.
Williams, B. (2012). Second life for plug-in vehicle batteries: effect of grid energy storage value
on battery lease payments. Transportation Research Record, 2287(1), 64-71.

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