Aston Martin: Managing Innovation and Future Industry Outlook 2022

This report provides an overview of Aston Martin's innovative practices, focusing on their strategies for success in the automotive industry. It assesses the future of the industry in 2022 and beyond, highlighting the innovative requirements and capabilities of the organization, including their plans for electric vehicles and strategic technological partnerships. The report also discusses knowledge transfer through cross-functional cooperation and evaluates Aston Martin's future innovative capabilities, emphasizing the importance of adapting to technological advancements and sustainable practices. By examining these aspects, the report offers insights into how Aston Martin aims to maintain its competitive advantage and achieve profitable growth in a dynamic market environment.

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