Managing Innovation in Business ( Pass Criteria )

This project summarises innovative practices which are undertaken by managers of Aston Martin for making their business operations successful. It also demonstrates an understanding regarding automobile industry and their future innovative capabilities in order to access existing competitive advantage of Aston Martin. This report aims to develop an innovation road map while assessing innovative capabilities of an organisation.

Managing Innovation in
Business ( Pass Criteria )

EXECUTIVE SUMMARY
This project summarises innovative practices which are undertaken by managers of Aston
Martin for making their business operations successful. This project report also demonstrates an
understanding regarding automobile industry and their future innovative capabilities in order to
access existing competitive advantage of Aston Martin. This also highlights innovative
capabilities of Aston Martin which assists them in bringing innovation in an effective manner.

Contents
EXECUTIVE SUMMARY.............................................................................................................2
Contents...........................................................................................................................................3
INTRODUCTION...........................................................................................................................4
MAIN BODY..................................................................................................................................4
Ascertaining the future of industry in 2022 and beyond.............................................................4
Innovative requirements of organisation in 2022 and beyond.....................................................6
Evaluation of future innovative capabilities for the organisation..............................................11
Discuss the Use of Knowledge Transfer through Cross-Functional Co-operation...................18
Gantt Chart.................................................................................................................................19
CONCLUSION..............................................................................................................................20
REFRENCES.................................................................................................................................21

INTRODUCTION
Managing innovation encompasses varied activities that are essentially required for
introducing a new product, process and service (Biemans, 2018) . It comprises of idea
development, strategy formulation, prioritization of tasks in an effective manner. Capabilities is a
broader concept which defines the abilities as well as resources which are needed by an
organisation for managing innovative practices. In order to manage innovative practices in a
strategic manner, it is needful for organisations to critically access their structure, process and
infrastructure of an establishment. It is important for organisational managers to work in a team
for bringing more innovative practices in order to prioritizing varied tasks as per the dynamic
environment. In order to better understand of innovation management, Aston Martin is is taken
into consideration. Aston Martin in an UK based manufacturer corporation which essentially
deals in luxury sports cars as well as grand tourers.
This project report demonstrates an understanding on how leaders convince their
employees for accepting the changes that came due to innovative practices. It also perform a
critical evaluation in relation to significance of organisational knowledge for assessing their
innovation capabilities as well as blockages that can hamper their planning. This report aims to
develop an innovation road map while assessing innovative capabilities of an organisation.
MAIN BODY
Ascertaining the future of industry in 2022 and beyond
From past few years, automobile industry has seen a drastic changes and planning to
move from conventional engined to automated and electrical vehicles. Apart from automation,
they are delving into sustainable practices in order to attract more customers towards their
brands. It has become imperative for organisations in automotive industry to develop electric
cars for reducing the carbon emission in a strategic manner (Bonesso, Cortellazzo and Gerli,
2020). Automobile industry focuses on adopting technological variations as well as sustainable
practices because of increased air pollution as well as rise in prices of fossil fuels. In order to
adopt technological disruptive models, automobile industry have also initiated to adopt artificial
intelligence in order to develop their operations successfully. With the help of this, organisations
have improved their practices like vehicle inspection as well as manage their fleets in an
effective manner.

Aston Martin has also planned to introduce a range of electric cars by 2025. They are also
planning to launch their new models with the feature of electrified powertrain by 2026 (Aston
Martin Is Going Electric, Launching Its First EV in 2025. 2022).
In 2022, UK automobile industry has been facing issues related to income squeeze,
supply problems in chips and rise in interest rates. Officials of Society of Motor Manufacturer
and Traders, United Kingdom has said in one of their statement that they are forecasting an
increase of 15% in their sales revenue but it was below 18% as compared to period of corona
pandemic (UK auto industry cuts 2022 sales forecast due to income squeeze. 2022). Apart from
sales unit, production level of organisations operating in automobile industry has significantly
decreased.
It has been assessed that in March 2022, production is decreased by 28.5% as per
statistics report (UK - Automotive Production volume, 2022. 2022). After raising from global
pandemic, production in automobile industry is still suffering from tremendous losses. Even
recovery in this sector has not began till yet, companies face problems like escalating energy cost
and high prices in supply of chip. It is needed to take urgent action in order to transfer focus of
companies towards electrified vehicles. Varied actions needed to be taken for safeguarding
differential jobs as well as livelihood of people working in automobile industry of UK. Graph for
showing car production at UK in 2022 is as follows:

Illustration 1: Automobile production volume, 2022
(Source: UK - Automotive Production volume, 2022. 2022)
In UK, car production volume has fallen in a significant manner due to issues related to
disturbances in global supply chain. Closure of Honda's plants at Swindon in last year has been
considered as significant factor which has contributed in steep reduction in relation to number of
cars exported to United States. War situation in Ukraine also effects operations in automobile
industry. As factories are struggling for differential parts like wiring system that came from that
region. Increase in energy cost is also a topic of concern for organisations operating in
automobile industry (Brem, Tidd,nd Daim, 2019). Car industry has been relies more on
efficiency in order to streamline their systems. Organisations procure varied parts for assembling
their products in an effective manner from all over the globe. Due to global pandemic, supply
chain get disrupted in a huge manner which led to stop the transportation of several parts like
computer chips which are essentially needed.

Innovative requirements of organisation in 2022 and beyond
Innovation does not be practised in a vaccum, it essentially require organisations to
involve in varied practices initiating from hiring people till encouraging them for experimenting
new ideas and innovative practices (Brem, Tidd and Daim, 2019). It is imperative for companies
to recruit curious and enthusiastic personnel who values innovative practices and bring new ideas
on a constant manner. It is imperative for managers of Aston Martin to follow a culture which
reward failures in order to adopt innovative practices in a strategic manner. For adopting
innovative practices in their operations, they have to take care of their capabilities, structures,
strategies and culture.
It is important to assess varied innovative capabilities poses by an individual or team as
innovation heavily relies on this. It is imperative for top management of Aston Martin to
ascertain technical as well as practical skills of their employees in order to get access to new
ideas in relation to innovative practices.
In recent years Aston Marin has taken steps to improve its business strategy for
constructing a more innovative future. Aston Martin recently came into strategic technological
partnership with Mercedes Ben which will provide the company access to resources for
improving its technological advantages. Mercedes and Aston Martin have worked together for
nearly a decade and this partnership has provided both the companies resources, both financial
and technological to keep introducing innovative auto-mobile products and attain profitability.

Figure 1Mercedes-Benz EQA All-Wheel-Drive Powertrains: All You Need To Know
(Source: Mercedes-Benz EQA All-Wheel-Drive Powertrains: All You Need To Know, 2021)
This new agreement with Mercedes Benz will provide the company access to Mercedes’
next-generation hybrid and electric powertrains as well as other vehicle components and
systems. The technological components available to Aston Martin include certain engines and
powertrains as well as powertrain software, E/E architecture and various other components.
Image of Mercedes Benz power train is provided above. In exchange of the technology Mercedes
Benz will be getting additional share in Aston Martin over the next few years as technology
packages are made available to Aston Martin (Aston Martin And Mercedes Expand Partnership,
Will Give British Firm Access To Hybrid And EV Powertrains, 2020). This deal will have
positive impact on innovation at Aston Martin beyond 2022 and will support the company in
developing technologically advanced premium vehicles.
Organisational culture of Aston Martin enables them to acquire varied capabilities in
relation to human resources. Strategy in relation to innovative practices is considered as making
deliberate choices among feasible options. Innovation is considered as means of attaining

strategic objectives. In order to better understand of innovation requirements in relevance with
Aston Martin, pentathlon model is taken into consideration.
Pentathlon innovation model can be understood as a strategic framework which is used
by organisations in generating ideas and strategies related to innovative practices (Criscuolo,
Haas, Ter Wal and Salter, 2018). It also talks about implementation, prioritisation and selection
of a feasible choice for brining innovative products or ventures.
Figure 2: An analysis of innovation frameworks with a focus on Pentathlon Framework for
government and public sector applications
(Source: An analysis of innovation frameworks with a focus on Pentathlon Framework for
government and public sector applications, 2021)
Ideas- This refers to thoughts of an individual which they want to transform into reality.
This is considered as first phase of innovation as at first instance ideas are developed in regards
to defined problems (Griesar, Bessant and Bernschneider‐Reif, 2018). In regards to Aston Martin
they are planning to launch their electric vehicles. In coming years. They want to develop cars
which is manufactured on the principle of combination of high performance as well as luxury at
one instance. Their are also planning to repeat their history by producing those cars comprises of
aerodynamic innovative practices as well as elegant designs.

Figure 3: ASRON MARTIN VALAHLLA
(ASRON MARTIN VALAHLLA, 2022)
The Aston Martin Valhalla is upcoming model of Aston Martin which is driver focused
mid-engine hybrid car. This innovative model brings together technological excellence and
engineering skills together to create a high powered electric hybrid vehicle which can reach top
speed. The most advanced, responsive and highest performing V8 engine will be available in
Aston Martin Valhalla, revving to 7200rpm and developing 750PS (ASRON MARTIN
VALAHLLA, 2022). This supercar will help Aston Martin the future innovative demand for a
hybrid supercar and will ensure that the company continues its legacy of introducing innovative
vehicles with excellent power.
Selection and prioritization- Next stage in the process of Pentathlon framework is
selection of ideas that are formulated in previous stage. It is the need to hour to manufacture
electrical cars due to change in people's perception and choices which want to purchase products
from those brands who have adopted sustainable practices in their operations (Guerra Guerra,
2018). Managers of Aston Martin have selected to manufacture electrified cars through their
experienced external hires. They are also investing in making their ERP infrastructure for
effectiveness. They are also making strategic alignment for making their footprint operations
operational. It is important for Aston Martin to choose proper prioritization of their selected
ideas. It is considered as a very significant aspect which as wrong decisions can hamper

organisation position and image. Selection of wrong ideas can lead to waste of resources, time
and efforts of an establishment.
In order to support security of its future innovation Aston Martin has invested in AI by
using SentinelOne a endpoint security platform which is driven by Artificial Intelligence. The
technological infrastructure of the respective company includes Windows, Mac and Linux, as
well as in the cloud, alongside high-spec computer-aided design and engineering (CAD, CAE)
and design production workstations (Aston Martin swaps out legacy antivirus for AI-driven
service, 2022). In order to protect this, the usage of AI is beneficial as it will help the company
reduce cyber security threats creating a safe environment for digital innovation in the future. The
image of SntinelOne is provided below.
Figure 4: Singularity XDR
(Source: Singularity XDR, 2022)
Implementation- This is considered as a last stage of Pentathlon framework and involves
proper execution of selected ideas. This is performed on the basis of stimulating future products
of an organisation. It is imperative for managers of Aston Martin to implement their idea of
manufacturing electrified vehicles. Apart from this they are also focusing restoring their prices
position in order to gain profitable growth.
Evaluation of future innovative capabilities for the organisation
Innovative capabilities refers to ability of firm for identifying new ideas as well as turn
them into new products or services in order to create a value to their customers (Kavadias and
Hutchison-Krupat, 2020). It is considered beneficial for organisations in managing their
disruptive innovations in a effective manner. It is important for organisations to renew their
culture with a shared vision and dedicated leadership styles. In relation to understand the

innovative capabilities of Aston Martin through their innovation history of their first successful
car titled 'Atom'. Varied lessons that needs to be understand from innovation history for building
future are as follows:
Lead with vision- Atom was principally based on vision of owner of Aston Martin which
majorly consisted of increase sophistication practices, providing high-speed and cross-
continental comfort. This has been considered as progressive leadership traits which encourages
experimentation. Atom is a significant innovation by Aston Martín and a step forward in the
production of supercars.
Figure 5: Four innovation lessons from the Aston Martin Atom
(Four innovation lessons from the Aston Martin Atom, 2017)
Pioneering holistic design- Design of Atom has enabled agile development as well as
rapid iteration that needs to be followed by business leaders in order to be successful. Managers
of Aston Martin have made a strong design but a simple one. In addition to this, the Vanquish
Vision concept being developed at Aston Martin showcases that the company will make further
improvements in its ability to introduce innovative holistic designs in the automobile industry.
Vanquish Vision Concept will feature a twin-turbocharged version of Aston Martin’s new V6:
the engine which sill support aerodynamic efficiency of the vehicle (VANQUISH VISION
CONCEPT, 2022). This concept design is appropriate for preparation of Aston Martin into the
future of supercars because it focuses on improving the weight, packaging and output of the
vehicle.

Figure 6: VANQUISH VISION CONCEPT
(Source: VANQUISH VISION CONCEPT, 2022)
Use of advanced technology- Atom is manufactured by overlooking some terms which is
essentially powered managers of Aston Martin like its light weight, aerodynamic aluminium and
multi-tubular space. It was built by using ground-breaking advanced technology which led Aston
Martin to gain huge success. In today;s world, marketers tried to relies on quick wins as well as
want high returns on their investment. This led them to create test and iterate prototypes which is
considered as a practice that improved designs but does not make changes in customer
experiences.
V12 speedster which is a limited edition car to be launched by Aston Martin is a suitable
example of advanced technology being utilized to provide consumers best quality auto-mobile
experience. ZF 8-Speed automatic transmission with a limited-slip differential driving the rear
wheels are some of the advanced technological features of this limited edition supercar. The new
technology being used in this model supports its high speed providing the V12 ability to
accelerate to 62mph (100km/h) in 3.5 seconds on the way to a limited top speed of 186mph
(300km/h) top speed (V12 SPEEDSTER, 2022).

Figure 7: V12 SPEEDSTER
(Source: V12 SPEEDSTER, 2022)
Flexibility is key- At that time, Atom was struck in unexpected consequences which leads
them to extended period in relation to product testing. Due to lack of shortage of resources,
owner of Aston Martin has decided to sell their company. Onset of war have surely dealigned
their team but they make changes in their approach and move to its testing and refinement
practices in an effective manner.
This innovative product has led Aston Martin to gain huge success and this makes them
able to secure competitive advantage. These practices has been an innovation lessons for Aston
Martin and other related companies for assessing the future capabilities.
Future capabilities of Aston Martin is looking like a shining star as they have opened
their new development centre at UK. This new innovative practices led Aston Martin to develop
models of next generation which essentially includes AMG- powered models. This new
development area has several tracks whereby they can easily check their products in a secured
and easy manner (Likar, 2021).
Engagement with stakeholders
Aston Martin is committed to make their organisation a great place for varied
stakeholders including employees, customers, shareholders and many more. In order to recover
from covid pandemic, managers of Aston Martin have began a programme they are planning to
right size their organisation in alignment of business plan in order to put their resources at right
place. They have adopted open, transparent as well as two way communication channels in order
to interact with their people who are considered as vital for their business operations (Mao,

2021). They also have started a people committee whereby a group of senior executives ensure to
get a talented pipeline of motivated workforce.
This committee meet and review initiatives and innovative practices of their employees in
order to assess their talents and competencies which provides them opportunities of promotion.
Managers of Aston Martin focuses on function of diversity which is principally based on fairness
as well as respect. This principle drives creativity and innovation in organisation which led them
to grow and develop their diverse workforce. It is important for them to grow diverse culture in
relation to employees in their organisation. This practice led them to better equip diverse needs
of their customers in a strategic manner (Lind, 2017).
Figure 8: Britishvolt and Aston Martin partner to develop high performance battery technology
(Source: Britishvolt and Aston Martin partner to develop high performance battery
technology, 2022)
Aston Martin wants to adopt sustainable practices in their operations in an effective
manner so that it can help the firm move towards a green future. Sustainability plays a key role
in achieving long term success because it helps the company built its image as environmentally

conscious firm. In order to improve its sustainability the company has partnered with Britishvolt,
to produce next generation of cell and battery technology (Britishvolt and Aston Martin partner
to develop high performance battery technology, 2022). This collaboration will result in creation
of a suitable battery which can power high performance electric vehicle. Aston Martin will be
able to leap bounds ahead in terms of innovation with the success of this collaboration and
creation of efficient battery for supercars.
They also make good relations with their dealers who supplies them raw inputs to
them. They also use customer reporting system in order to track performance of their dealers.
They continue to become a sustainable luxury automotive organisation which strives for efficient
economic growth. Its important that businesses integrate innovation in organizational culture so
that every business activity promotes innovation at the firm. These practices led Aston Martin to
encourage their employees to formulate innovative practices in an effective manner.
Organisation culture
Organisation culture can be explained as internal values as well as behaviours that are
govern by employees in an establishment (Öberg, 2017). It majorly encompasses way of
thinking, underlying beliefs and future expectations. Organisational culture of Aston Martin is
developed in a way whereby employees are provided enough scope for bringing innovative
products. In order to better understand about organisational culture, Handy's cultural model is
taken into consideration.
Handy's cultural model can be described as strategic framework which essentially delves
into differential cultural practices that are adopted at varied establishments (Ratten and Usmanij,
2020).

Figure 9: Blog 1: Can cultures be managed within organisations?
(Source: Blog 1: Can cultures be managed within organisations?, 2019)
Varied elements that are covered in Handy's culture model in relevance with Aston Martin are as
follows:
Power culture- Under this culture, a proper hierarchy level is followed and a proper
chain of command is adopted in regards with employees (Vanhaverbeke, 2017). Under this
culture practice, decisions are taken in a swift manner as autonomy laid to some people who are
at high authority. Tasks are executed in a quick manner as powers are directed in a straight
motion. Managers of Aston Martin are practising their operations in this type of culture but with
some modifications. They have hierarchal level of chain but delegation of powers are shared
among their employees. These type of culture is suitable for bring innovative practices.
Role Culture- Under this culture, tasks and responsibilities are shared by managers as per
their qualifications and experiences (Zumba and Et. Al., 2017). Through this specialist tasks can

be performed by employees. These type of organisations are considered as risk-adverse and are
slow to react with dynamic environment. This type of culture is not practised in Aston Martin as
they encourage their employees to adapt external changes and bring innovative practices.
Task culture- Under this teams are formed for solving specified problems or issues,
every team member is asked to contribute their individual efforts in attaining organisational
goals. It depends on a mix of people in a team which make perfect contributions in governance
practices. Through this, Aston Martin can adopt innovative practices in their products and
services as teams are bing made for each function.
Person culture- Under this culture, managers puts them ahead as compared to
organisation. They want to achieve their personal interests as compared to organisational
objectives. This type of culture is not suited for bringing innovative practices. In relation with
Aston Martin, this culture is not adopted as they provide an environment of diversity as well as
inclusion to their employees.
Discuss the Use of Knowledge Transfer through Cross-Functional Co-operation.
Cross functional co-operation is important for creating innovative environment at the
company because it brings together experts from different backgrounds to deliver innovative
results at the firm (Laurent and Leicht, 2019). The finance department and R&D department at
Aston Martin successfully deliver innovative products by ensuring that the lifeblood of the
company which are its financial resources are effectively used for sustaining innovation. In case
of the partnership with Mercedes its is because of the collaboration between finance and R&D
department that the firm is able to acquire new technological resources which support innovation
by strategically offering its shares to Mercedes.
In addition to this the cross-functional co-operation between Human resource function
and IT function also supports innovation at the company. Innovation requires presence of highly
skilled employees (Ambrose, Matthews and Rutherford, 2018). In context of Aston Martin, the
HR function collaborates and co-operates with IT function to ensure that candidates with
innovative mind-set are recruited at various positions specifically related to IT and R&D. This
co-operation is further supported as IT function helps safeguard employee data from cyber-
attack. In this case Aston Martin is able to construct a safe and skilled workforce through cross
functional co-operation.

Gantt Chart
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Idea
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Idea
Review and
Evaluation
Proof of
Concept
background
Prototype
Testing
Full Roll
Out and
Implementa
tion
Adoption
and Benefit
realisation
The above provided Gantt chart provide steps for the next two years which will help
Aston Martin come up with innovative products and attain profitability through unique product
portfolio. These detailed and time bound steps help breakdown the task of introducing innovative
products so that it can be attained quickly.

CONCLUSION
From the above mentioned information, it has been concluded that innovative
management is considered as a crucial aspect whereby varied innovative practices are developed
and implemented in an effective manner. It is imperative for organisational managers to bring
constant innovations which led them to secure competitive advantage. Innovation practices are
considered as beneficial for establishments as it can boost their productivity level and enhance
their brand image in public. It also help in retaining customers for a long period of time as they
want differential types of varieties in products and services on a regular basis. Innovative
capabilities can be understood as ability of establishments in bringing innovations so as to
enhance their operations and processes in a strategic manner. It is imperative for organisational
managers to make strong engagement with their varied stakeholders which help them in building
their brand image positive as well as delves innovative practices. Organisational culture can be
described as underlying assumptions, beliefs and values that in a combined manner governs the
behaviour of employees while working at workplace. Handy's culture model is used by
establishments in defining varied culture models which are used in differential organisational
setting. Innovative capabilities can be understood as ability of an establishment which
encourages them to think of new ideas and convert them into innovative products in order to gain
competitive advantage. Innovation management help organisations in detecting non-viable ideas
which help in better implementation of plans at earlier stages. It also aid organisations in
attaining greater monetary efficiency in relation through creative and innovative teams.
Innovative practices also help in keeping employees enthusiastic and energetic which further aid
in increasing retention rates. Innovative practices help organisations in boosting their
productivity and securing competitive advantage. It is also helpful in gaining customer loyalty as
well as retention.

REFRENCES
Books & Journals:
Biemans, W. G., 2018. Managing innovation within networks. Routledge.
Bonesso, S., Cortellazzo, L. and Gerli, F., 2020. Managing Innovation Through a Competency-
Based Approach. In Behavioral Competencies for Innovation (pp. 69-78). Palgrave
Pivot, Cham.
Laurent, J. and Leicht, R. M., 2019. Practices for designing cross-functional teams for integrated
project delivery. Journal of Construction Engineering and Management, 145(3)..
p.05019001.
Ambrose, S. C., Matthews, L. M. and Rutherford, B .N., 2018. Cross-functional teams and social
identity theory: A study of sales and operations planning (S&OP). Journal of Business
Research, 92. pp.270-278.
Brem, A., Tidd, J. and Daim, T. U. eds., 2019. Managing Innovation: Internationalization of
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Brem, A., Tidd, J. and Daim, T. U. eds., 2019. Managing Innovation: Understanding and
Motivating Crowds (Vol. 32). World Scientific.
Criscuolo, P., Haas, M., Ter Wal, A.L. and Salter, A., 2018, July. Managing Innovation in a
Multi-Divisional Firm: Mobility across Divisions and Manager Performance.
In Academy of Management Proceedings (Vol. 2018, No. 1, p. 11989). Briarcliff Manor,
NY 10510: Academy of Management.
Griesar, K., Bessant, J. and Bernschneider‐Reif, S., 2018. The Recipe for Corporate Longevity:
From the Perspective of “Managing Innovation”. Angewandte Chemie International
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Guerra Guerra, A. ed., 2018. Organizational transformation and managing innovation in the
fourth industrial revolution. IGI Global.
Kavadias, S. and Hutchison-Krupat, J., 2020. A framework for managing innovation. In Pushing
the Boundaries: Frontiers in Impactful OR/OM Research (pp. 202-228). INFORMS.
Likar, B., 2021. Managing Innovation in Smart Industries. In Engines of Economic
Prosperity (pp. 21-36). Palgrave Macmillan, Cham.
Lind, J., 2017. The role of accounting for managing innovation processes when relationships
matter. IMP Journal.
Mao, Y., 2021. Managing innovation: The role of collateral. Journal of Accounting and
Economics, 72(1), p.101419.
Öberg, C., 2017. How Innovation Impacts Artistic Creativity—Managing Innovation In The
Advertising Sector. In The Role of Creativity in the Management of Innovation: State of
the Art and Future Research Outlook (pp. 73-95).
Ratten, V. and Usmanij, P., 2020. Entrepreneurship and organizational change: managing
innovation and creative capabilities. In Entrepreneurship and organizational change (pp.
1-6). Springer, Cham.
Vanhaverbeke, W., 2017. Managing open innovation in SMEs. Cambridge University Press.
Zumba, M. F. and Et. Al., 2017, June. Social media as a key tool in managing innovation un
organizations. In 2017 12th Iberian Conference on Information Systems and
Technologies (CISTI) (pp. 1-5). IEEE.
Online:

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