Innovation and Sustainable Business Development

Running Head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Topic: Innovation and Sustainable Business Development
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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Table of Contents
Introduction......................................................................................................................................3
Core Concept of Lean Startup.........................................................................................................3
Background of the Company and Its Innovation Trend..................................................................5
Analyze the Impact of Lean Startup Innovation Trend on the Organization..................................6
Recommendations............................................................................................................................8
Conclusion.......................................................................................................................................9
References......................................................................................................................................10

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
Introduction
Innovative strategies help a business organization to run their business operation
successfully and also attain the desired success within a specific time. Moreover, with the help of
innovative strategies, a company can be able to compete with their market competitors and also
improve their customer based. In this particular study, IKEA, a furniture manufacturing
company, has been taken into consideration. The core concept of the lean startup has been also
discussed in the paper to understand the impact of innovative strategies on an organization. After
that, the study provides a brief background of the company and also discusses their innovative
strategies. Lastly, the paper critically analyzes the impact of lean startup methods on the
organizational performance of IKEA.
Core Concept of Lean Startup
Innovation is one of the important aspect, which has created a significant impact on the
business performance of an organization. Cooper & Vlaskovits (2013), claimed that innovation
brings an opportunity for a business organization to expand its business entity. Lean startup is a
method, which is utilized by a business organization when the company introduces a new
product in the current competitive market. With the help of the lean startup method, an
organization can be able to launch customer-centric products within its operating market to meet
its customer needs and demands. On the other hand, it can be asserted that it is considered as an
approach, which helps an organization to conduct investigation and experiment programme in

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INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
order to develop new innovative products for their target market customers to meet their
increasing demands.
Simultaneously, in the early 2000s, the core concept of lean startup was developed and
the concept was implemented in the business around 2010. Moreover, lean startup is also known
as lean manufacturing. According to, Blank (2013), it can be said that lean startup has created a
positive impact on the overall business performance of an organization and it provides
opportunities for every business organization to implement appropriate innovative ideas within
their organization to expand their business entity. In addition to this, by utilizing the lean startup
principles, the manufacturing department of an organization can be able to understand their
target market customer’s demands, which will help them to redesign their department to
manufacture customer-centric product for their target market customers. Moreover, it can also be
asserted that the lean manufacturing process also helps an organization to minimize their wastage
in its product life cycle. According to sources, it can be argued that lean startup based
organization mainly hires employees, who have the much of ability to learn and work quickly,
where traditional business organization mainly employs employees based on their ability,
qualification, and experiences. The aim of this method is to determine the problems of product
manufacturing section and after that, the method should provide certain measures to address the
problems. After addressing all the issues of the manufacturing department, with the help of this
method producer has produced a very small amount of new product for launching and then
accumulate feedbacks from their potential customers, which help an organization to make
appropriate strategies for improving their business performance (Frederiksen & Brem, 2017).
Therefore, it can be asserted that lean startup is considered as a less expensive method of final
product testing and it also reduces the failure rate of a new product.