Innovation and its Impact on IKEA

Running head: INNOVATION
Innovation

INNOVATION 2
Table of Contents
Introduction............................................................................................................... 3
Introduction of company and its innovation trend................................................................3
Different concept of innovation and relationship between them...............................................3
Importance of innovation strategy in strategic alignment........................................................5
Impact of the lean start-up on IKEA.................................................................................5
Business model canvas................................................................................................. 6
Role of organization’s innovation strategy in innovation trend.................................................7
Ways to organising innovation activities........................................................................8
Additional innovation capabilities................................................................................9
Ways to ensure organisation creates and captures value from the innovation............................9
Organization ensures strategic alignment...........................................................................9
Conclusion.............................................................................................................. 10
References.............................................................................................................. 11

INNOVATION 3
Introduction
This report provides a description of the Ikea and innovation trend. It also describes the
different aspects and their relationship with them. It also demonstrates the business canvas
model and strategy used for implementing innovation.
Introduction of company and its innovation trend
IKEA is a private and world’s largest furniture retailers and global home product company
that sells and designs the ready to assemble furniture like home accessories and appliances.
This company was established in the year of 1943. The key mission of IKEA is to provide the
wider category of home furnishing products with affordable price, good design, and
functions, and durability that the bulk of individual can afford for purchasing them (Blank,
2013).
The Lean Startup social technology is an innovative trend that manages and creates the
startups and provides the desired products to the hand of the customer promptly. It is a
methodology that is used to create the businesses and selling the products in shortening
product development cycles. It also promptly identify when the proposed business model is
viable. It can be addressed through adopting the integration of iterative product releases,
hypothesis-driven experimentation as well as validate the learning (Cooper, &Vlaskovits,
2013).
Different concept of innovation and relationship between them
The organizational environment
An organizational environment is the integration of factors that is surrounding a company and
it may influence the operation, resources, and performance. It involves all the aspects that are
presented in the external environment of company’s boundaries and can have the potential for
influencing the portion of the company (Osterwalder, &Pigneur, 2010).
Innovation trend

INNOVATION 4
Innovation is defined as the creative thoughts, new ideas as well as, new imaginations in the
form of device. Along with this, innovation is demonstrated as the use of feasible solutions
that attain the new needs, existing market requirements together with, accomplish the
unarticulated requirements. A trend is a potential growth in upcoming times that would be for
longer-term, creates a lasting impact, and changes something (Gobble, 2017).
Innovation strategy
An innovation strategy is illustrated as the plan for increasing market profits and share by
making innovation in product and service development. While, company addresses the
solution then, innovation strategy demonstrates the product enhancement and disruptive
innovation approach is effective (Ojasalo, &Ojasalo, 2018).
Innovation capability
Innovation capability is the competency of the company for transforming the ideas into
something new that carries the economic value. Along with this, innovation capability has a
favorable impact on products and service innovation, process innovation, marketing
innovation and, organizational innovation (Steiber, &Alänge, 2016).
Innovation value creation and capture
Under the innovation system, value creation is defined as the collaborative procedure as well
as, activities for generating the value for consumers and other stakeholders. Along with this,
value capture is defined as an individual firm level that actualizes the profit taking and the
ways that the company can use to get competitive benefits and to reap associated profits
(Stampfl, 2016).
The integrating strategy is used in IKEAto keep the positioning in relation to gaining the
sustainable competitive benefits. It also makes the choices regarding which products and
services will deliver in industry, and distributing the resources for attaining the competitive