Report on Airbus's Innovative Value Proposition: MGMT20132, Semester 1

This report provides an in-depth analysis of Airbus's value proposition, focusing on the development of innovative and sustainable business practices within the aviation industry. The report begins with an executive summary and introduction outlining the research's background and perspectives, specifically addressing the company's shift towards renewable and affordable energy solutions. It delves into the value proposition itself, examining its mission, values, and initial assets, and assessing its competitive advantage and positioning within the market. The report utilizes the Disciplined Entrepreneurship Canvas to structure the analysis and assesses the technical and financial feasibility of the proposed innovations, including the use of AI and partnerships with other companies. The analysis considers customer desirability, highlighting the need for clean energy solutions in aviation. The conclusion reiterates the importance of the value proposition. The report highlights the importance of innovation and sustainability in the aviation sector.

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Running head: MANAGEMENT
MGMT20132 Innovation and sustainable business development
Name of the student
Name of the university
Assessment Number
Author Note:

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Executive Summary
The following report has been prepared on the basis of the innovative and sustainable
business development. The report is based on Airbus Company which is one of the largest
aviation companies of the globe. The report starts with a general introduction which provides
the background of the research as well as the different perspectives of the research. The study
then moves into the value proposition part of the new innovative product that supports the
creation of a renewable and affordable energy. The report has provided the financial,
technical and commercial feasibility of the new innovation which is important for the value
proposition. Overall the report provides a transparent view of the innovative process
undertaken by Airbus.

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Table of Contents
Introduction................................................................................................................................4
Value Proposition.......................................................................................................................4
Disciplined Entrepreneurship Canvas........................................................................................4
Purpose of the value proposition............................................................................................4
Mission...................................................................................................................................5
Passion....................................................................................................................................5
Values.....................................................................................................................................5
Initial Assets...........................................................................................................................6
Competitive Advantage..........................................................................................................6
Competitive Positioning.........................................................................................................6
Value Creation.......................................................................................................................7
Customer Desirability............................................................................................................8
Figure No 1: Innovation Sweet Spot......................................................................................9
Technical Feasibility............................................................................................................10
Financial Viability................................................................................................................10
Selection of the innovative tools and techniques.................................................................10
Figure No 2: Scheduled Wingtip Propulsion Architecture of an ATR 72 Aircraft.............11
Conclusion................................................................................................................................11
References................................................................................................................................12

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Introduction
The following report is based on a value proposition model of an established business
organization. The value proposition is said to be the promise delivered by an organization to
its customers for the delivery of a certain product or service. It is important for the
management of the business organizations to provide a proper and effective value for the
customers in order to ensure maximum satisfaction. The report here has selected Airbus as
the company. Airbus is a European multinational company which is one of the largest
aviation and aerospace corporations of the globe (airbus.com, 2019). The report here has
proposed a value proposition of the company in line with the sustainability trend program of
United Nations.
Value Proposition
Value Proposition refers to the value that the management of the company proposes
as well as promises to deliver the customers if they want to buy the product. The declaration
of the intent or the business statement helps the management of the business to present the
brand of the company to the customers.
The report here highlights the value proposition of the organization where the
organization has selected affordable clean energy. The management of Airbus has
concentrated on the research to deliver clean and affordable energy (airbus.com, 2019). The
target of the company is to produce the future innovative products that can be easily run on
the following platform.
Disciplined Entrepreneurship Canvas
Purpose of the value proposition
The value proposition of a particular product of a company is one of the most
important elements of the overall marketing strategies. According to, Bowman (2016) the

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value proposition of the company will involve the different prospects of the business and the
competitors. The value proposed by the management of the company for the product will also
entail the different benefits of the product in a clear and transparent manner.
Mission
The mission of the new value proposition program will be to ensure the
implementation and use of the clean and affordable energy in the future products of the
organization (airbus.com, 2019). The mission of the organization is to ensure that the
research and development wing of the company works towards the development of the clean
and renewable energy based products that will be able to address the problems with the
wastage of energy and other issues.
Passion
The rise in the levels of global techniques that will be able to address the pollution
and the global warming in the world has forced the management of the business organizations
to implement different kinds of new techniques that will be able to answer the business
demands of the organizations and will also help them to ensure business sustainability.
According to, Bowman (2016) there is an absence of any form of development without the
fuelling of an engine of solid and growth. Energy is one of the most critical elements of the
business as because it helps the management to ensure the success of the business in a
sustainable manner.
Values
The value proposed by the business organization is unique in nature as because the
aviation industry is currently in need of clean and affordable energy. The flights produced by
the company generally runs on conventional fuel which is the largest source of air pollution.
The management of Airbus has focused on the creation of low cost, renewable energy in

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order to address the following problems (airbus.com, 2019). Airbus Corporation proposes to
create the next generation aircrafts that will be based on electric or other forms of renewable
energy platforms.
Initial Assets
The major changes that are to be made by the management of the organization
includes the likes of the financial assets. According to, Chalvatzis & Ioannidis (2017) the
financial assets are needed to be managed and prepared in the most formal way to address the
different issues that may arise due to problems in the innovation process.
Competitive Advantage
According to, Chuck et al. (2016) it is important for the management of Airbus to
ensure the success of the business by having a competitive advantage in the market. Ensuring
a successful competitive advantage can help Airbus to surpass its nearest rival Boeing in the
aviation market. The management of Airbus has to invest heavily on the research and
creation of new models of aircraft that will be able to address the sustainable developmental
plan of UN where the company can produce new and better energy sources and use them in a
strategic manner (Davis et al. 2018). The use of clean and affordable fuels in the aviation
system will give Airbus an upper hand in addressing the problems of the air pollution and
will help the company to gain a suitable competitive advantage.
Competitive Positioning
The most critical aspect of the Airbus brand is to set a standard for the products
delivered. The products of the company are designed and presented in such a manner that it is
able to leave a mark for itself in the business world (Finger, Götten, Braun & Bil, 2018). The
competitive positioning strategy will be employed by the company after a thorough study of
the market profile where the demand for the new innovation and the stages of the growth will

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be identified and justified. The company will analyse the customers of the new innovation
and then move forward by implementing the positioning strategy of the product in the
market.
Initial market
The initial market for the new products is quite attractive as there has been a rise of
demand from the contemporary as well as the traditional aviation companies to switch to
aircrafts driven by renewable fuel (Geiß & Voit-Nitschmann, 2017). The switchover to the
renewable fuel can help the management of the business to gain a healthy available market
that will be able to address the different kinds of the issues.
According to, (Gielen, Boshell & Saygin, 2016) the main customers of the new
innovative aircrafts will be the largest leading aviation companies of the globe. This includes
the largest customer of Airbus till date, Emirates, Etihad Airways, Delta Airways and many
more similar leading airlines of the world. The management of these companies have started
a detailed research on how to be more environment friendly and the plan clearly supports the
innovative business plan of Airbus.
Value Creation
The research and development wing of Airbus will have to undertake different kinds
of market surveys and depend on the results to actually present the world with a new
innovation based on clean and affordable energy (Karakoc et al. 2016). The aim of the
management of Airbus is to present the globe with a clean and affordable source of energy
that will be able to drive the future aircrafts built by the company.
The new innovative aircrafts to be produced by the Airbus Company will be based on
an electric platform and will not use any conventional fuel. The company also has plans to
build aircrafts that run on other renewable fuel. It is important for the management of the

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Airbus to focus on building a sustainable business product that will be successful
commercially.
The new product will help the management of Airbus provide a solid platform to lead
the aviation industry to a new revolution and dump the use of the conventional fuels to steer
the aircrafts. The company has focused on the creation of a new and cleaner source of energy
to run aircrafts. The new aircrafts will provide a high value proposition to the customers as
because such aircrafts will require an ultra-low maintenance cost and will also help the
management of the aircraft corporations to support the environmental causes in a sustainable
manner (Madavan et al. 2016).
Customer Desirability
Innovation is a process which involves a number of different steps or processes. This
includes the combination of desirability, feasibility and viability. The combination of these
three items forms a chain of innovation that helps the organization to undertake a successful
innovation process. The innovation chain thus consists of;
a. A desirable business solution that is really needed by the customer of the business
b. A feasible and structural solution that is generally build on the strengths of the
present capabilities of the business organization in carrying out the business
operations in a structured manner
c. Profitable business solution that is capable of presenting a sustainable business
model

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Figure No 1: Innovation Sweet Spot
Source: (Santis, 2017)
The very first process is customer desirability. Customer desirability is basically the
major reason for undertaking the creation of the new business solutions. The rising levels of
air pollution from the use of the conventional aircraft fuels and the environmental concerns
have compelled the management of Airbus to research and invest on a sustainable business
solution that will be able to address the different problems (Sürer & Arat, 2017). The
management of the company has started working on a new aircraft that will be based on a
clean, renewable as well as an affordable energy platform. There is a high desirability among
the aviation companies for a new commercial aircraft based on a contemporary energy
platform. Thus the desirability of the customers will be testing whether the innovation is
solving the right problem of the customers.
It is important for the management of Airbus to build on the core operational strengths
of the company in order to meet the new requirements of the customers (Sürer & Arat, 2017).
The customer service department of Airbus will assess the different areas related to

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technology, financial, branding, partnership and other different perspectives related to
business feasibility.
Technical Feasibility
Airbus will include a modern technology based on Artificial Intelligence that will be
capable of ensuring the success of the organization in a proper and systematic manner. The
technology will help the management to ensure business success. The management has to
appoint a number of strong experts who will be able to address the different technological
challenges. The most important reason for the appointment of experts will be the technical
feasibility (Teske, Morris & Nagrath, 2017). The technical expertise of the new organization
will ensure the success of the new product.
Financial Viability
The management of Airbus will have to ensure a strong financial support for the new
project. The presence of a strong financial backup can ensure the success of the organization
in a proper and efficient manner. The management of Airbus has combined with Dassualt
Aviation of France in order to provide further technical expertise and financial backing for
the new project (dassault-aviation.com/en/, 2019). The presence of the financial viability of
the business will help the management to ensure business success.
Selection of the innovative tools and techniques
The major target for the modern day aviation companies is to reduce emissions caused
from conventional fuels and drive the future of the aircraft system through electric based
transportation system or other forms of the renewable energy system in a proper and efficient
manner (Teske, Morris & Nagrath, 2017). The new forms of the technology will help Airbus
address the different kinds of the environmental concerns caused by the modern day business
systems. The Airbus has created the VOLTAIR plane which is just a similar prototype before

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the major innovation process (airbus.com, 2019). It is important for the management of the
company to produce the new aircraft that will be able to address the different kinds of the
business concerns.
The different innovative tools and techniques are as follows;
a. Budgetary control- The control of the budget will help Airbus attain a sustainable
innovation.
b. Standard basis of costing- The standard basis of costing will help attain the
sustainable business features.
c. Value Analysis- The analysis of the business value is important for the new
innovation. The better the proposition of the value, the better will be the business
success.
d. Cost Analysis- The analysis of the business cost will help the business to ensure a
successful cost analysis.
e. Planning and Control- The planning and control of the business management will
ensure business success.
f. Simplification- The more the process of the innovation is simple, the more is the rate
of the business success.
g. Analysis of contribution- The analysis of the innovation will help analyse the
contribution of the innovation to the future.
h. Evaluation of the operations- The proper and systematic evaluation of the operations
will help in the success of the business management in a proper and effective business
manner.
The major transformational changes will involve changes in the propulsion system of
the aircrafts that will bring significant changes to the aerodynamic arrangement of the

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business. It is important for the management of the business to concentrate on different areas
that can produce different challenges accordingly (Santis, 2017). The changes in the
propulsion components and the changes in the fuel system will certainly help to bring in a
new revolution in the aviation market.
Figure No 2: Scheduled Wingtip Propulsion Architecture of an ATR 72 Aircraft
Source: (airbus.com, 2019)
Conclusion
The changes in the new system and the use of the innovative tools and techniques to
revolutionise the new system is sure to change the aviation industry in a positive manner. The
following report has presented a transparent picture of the innovative business process that
will be important for the success of the business organization.

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References
Airbus Home. (2019). Retrieved 23 August 2019, from https://www.airbus.com/
Baroutaji, A., Wilberforce, T., Ramadan, M., & Olabi, A. G. (2019). Comprehensive
investigation on hydrogen and fuel cell technology in the aviation and aerospace
sectors. Renewable and Sustainable Energy Reviews, 106, 31-40.
Bowman, C. L. (2016). Visions of the future: Hybrid electric aircraft propulsion.
Chalvatzis, K. J., & Ioannidis, A. (2017). Energy supply security in the EU: Benchmarking
diversity and dependence of primary energy. Applied energy, 207, 465-476.
Chuck, C. (Ed.). (2016). Biofuels for aviation: feedstocks, technology and implementation.
Academic Press.
Chuck, C. J., McManus, M., Allen, M. J., Singh, S., & Chuck, C. J. (2016). Biofuels for
Aviation. Feedstocks, Technology and Implementation, 1st ed, United Kingdom,
Press Publication, 3-14.
Dassault Aviation, a major player to aeronautics. (2019). Retrieved 23 August 2019, from
https://www.dassault-aviation.com/en/
Davis, S. J., Lewis, N. S., Shaner, M., Aggarwal, S., Arent, D., Azevedo, I. L., ... & Clack, C.
T. (2018). Net-zero emissions energy systems. Science, 360(6396), eaas9793.
Finger, D. F., Götten, F., Braun, C., & Bil, C. (2018). Initial Sizing for a Family of Hybrid-
Electric VTOL General Aviation Aircraft. 67. Deutscher Luft-und Raumfahrtkongress
DLRK 2018.
Geiß, I., & Voit-Nitschmann, R. (2017). Sizing of the energy storage system of hybrid-
electric aircraft in general aviation. CEAS Aeronautical Journal, 8(1), 53-65.

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Gielen, D., Boshell, F., & Saygin, D. (2016). Climate and energy challenges for materials
science. Nature materials, 15(2), 117.
Karakoc, T. H., Ozerdem, M. B., Sogut, M. Z., Colpan, C. O., Altuntas, O., & Açıkkalp, E.
(Eds.). (2016). Sustainable Aviation: Energy and Environmental Issues. Springer.
Madavan, N., Heidmann, J., Bowman, C., Kascak, P., Jankovsky, A., & Jansen, R. (2016,
April). A NASA perspective on electric propulsion technologies for commercial
aviation. In Proceedings of the Workshop on Technology Roadmap for Large Electric
Machines, Urbana-Champaign, IL, USA (pp. 5-6).
Santis, A. (2017). Integration of Renewable Energy through Prosuming.
Sürer, M. G., & Arat, H. T. (2017). State of art of hydrogen usage as a fuel on
aviation. European Mechanical Science, 2(1), 20-30.
Teske, S., Morris, T., & Nagrath, K. (2017). 100% Renewable Energy for Tanzania–Access
to renewable and affordable energy for all within one generation (full report).