Evolves Renewable Company: Innovation Report and Analysis

This report provides a detailed analysis of managing and developing innovation within the renewable energy sector, specifically focusing on Evolves Renewable Company. It begins with an introduction to the importance of innovation in addressing energy storage challenges, particularly in Australia. The report explores the company's market strategy, including SWOT and PEST analyses, and assesses its growth potential within a competitive environment. It covers marketing and distribution strategies, financial data, and cash flow projections. Furthermore, the report highlights the company's sustainable competitive advantages, management potential, and the importance of IP protection. The analysis includes a review of the company's business plan, external advisors, and competitive advantages, concluding with an income statement and a discussion of grants and other support. The report emphasizes the significance of high-temperature electrolysis as a key innovative solution for energy storage and the potential for market expansion in various countries.

Managing and
developing innovation

INTRODUCTION
 Managing and developing innovation is considered to be one of the most effective
measure which in turn helps in effectively responding to the internal and external
innovation capabilities.
 This study will analyse target market and customers. Furthermore, it also helps in
determining total market potential, market size, trends and customers.
 Lastly, this study helps in competitive analysis and focus on finance forecast.

Problem statement and concept description
 Electrical and Renewable energy sector works for the purpose of development of energy through use of renewable sources which
are not depleting in nature.
 In terms of the contribution of renewable sources towards the generation of electricity, Australia is around about 21.3% of the total
amount which is generated in that nation.
 The major issue faced in the nation is related to the storage of electricity generated with the help of renewable resources.
 The impact of the same is direct over the nation in terms of its capacity to use 100% renewable sources of power generation.
 The aspect which help in removal of this issue is about the development of new kind of batteries and storage system that have
power to store large amount of energy.
 Innovation is the only medium that can help get rid of this issue.
 The basic innovative idea that help to improve the storage includes the use of technology of high temperature electrolysis which
provides an opportunity in conversion of electricity into hydrogen and storage of same in that manner.

Market Strategy
Competitive environment is referred to as the dynamic external system which in turn tends
to compete with the operations of the business.
SWOT analysis
 Strength: Evolves renewable company tends to focus on carrying out business
operations by effectively adapting to new and advanced technology. This helps in being
ahead of its competitors and attain competitive position.
 Weakness: Low cell capacity of the productivity and low profitability of the hydrogen
electrolysis business is the major weakness.

Cont..
PEST analysis
 Political factor: Change in the government policies such as foreign trade policy, labour
laws, environmental laws, trade restrictions, political stability and instability, etc. are
the major influencer in the market for the company to function.
 Economic factor: Variation in inflation rate, disposable income, economic growth,
interest rate, exchange rate, financial incapabilities, etc. are the major influencer in the
market for the company to function.

Cont..
Management Potential
In order to achieve the project it is really important that management should have high potential. This
potential includes the effective development of strategy, minimizing the risk associated with the innovation
and the business. Management should also have the potential to meet the requirement of the project like
team, financial, etc.
Growth potential
This concept have high growth potential specially in present and future resources are getting more and more
and more scarce. But with the help of this technology it can help the people across the world to overcome
the energy challenge. This will increase the potential of storing huge amount of renewable source of energy.

Cont..
Clear market entry
 Evolves renewable company will start its business operations in Alternative Way, Nimbin,
New South Wales 2480, Australia. It is one of the growing sector who tends to focus on
meeting the target of 23.5% and 33 terrawatt hours in the year 2020. Australia tends to
constitute for 14% of Australia's electricity mix. The company has huge scope for potential
expansion of the business in UK, Denmark, Sweden, Germany, Costa Rica, Iceland, etc. they
are one of the top leading countries who has the potential and tends to have leading way in
renewable energy. This in turn helps in effectively expanding their business operations in
several countries. It has been evaluated that, Evolves renewable company has one of the
growing market for higher sustainable growth.

Marketing and distribution
Marketing Strategy
 Company should market it products through social media as it is one of the best way to
market its products to targets customers.
 Another marketing strategy which can be used can be digital marketing.
Distribution Strategy
 Company should choose intensive distribution strategy, as it will help the company to
maximize the sale of its products in the market.

Financial Data
 Clearly articulated selling proposition & strategy: Evolves renewable company has
come up with unique innovative idea which is to increase the potential of storing
renewable energy. This can be a USP for this concept as this increases the storage
capacity of energy.
 Deep IP: In order to protect this idea company can Trade Mark this innovative idea
from getting copied by its competitors in the market. This also helps in identification of
the product in the market and gets distinguished from its competitors.

Cont..
Cash Flow
 The funds will be granted by the venture
capitalist, loans through bank, etc. in order to
carry out the business.
 It helps in managing finances with the help of
trade credit, debentures, equity capital, factoring,
etc.
 It helps in effectively carrying out businesses
operations smoothly.

Cont..
 Relevant in domestic & international markets: For this concept entire globe is the relevant market for
Evolves renewable company. But it should mainly focus on the countries where is there is a need of such type
of technology which can be beneficial for both company and for the customers. Countries like Pakistan, India,
Bangladesh, etc.
 Existing customer traction: For this product there could be various customer tractions which can result in the
growth of this technology. One of the major traction can be the investors who are willing to invest in such type
of business. Another factor can use of social media for generating awareness.
 Clear channel to market: There are various through which Evolves renewable company can market its
product or technology to other countries. But the most effective strategy is selling through intermediaries such
as wholesalers and retailers as company cannot go for direct selling to Asian countries.

Cont..
 Driving team, people we can work with
 In formulation of High temperature Electrolysis different kind of materials can be use includes
solid oxide electrolyze cell which is essential in the nature to develop electrodes and electrolyte.
 Along with the usage of Yttria-stabilized zirconia (YSZ) electrolytes, hydrogen electrodes &
cobalt oxygen electrodes.
 The different number of skills requires in the development of the same includes reasoning and
thinking along with core physics principles, use of AI and robotics and related to investigation
of new sources of generating power.

Income statement
Particulars Amount
Revenue 750000
Less Expenses
Wages 14000
Rent 15000
Transportation 60000
Utilities 15000
Procurement Costs 16000
Net Income 630000

Growth Potential and Sustainability
 Sustainable competitive advantage: Sustainable competitive advantage can be understood as
company assets, attributes or abilities which are difficult to duplicate or exceed ,providing a
superior long term position to it over the competitors. A competitive advantage distinguishes
company from its competitors in terms of higher prices, more customers and brand loyalty.
 High growth potential: High growth potential is an organization ability to generate larger
profits, expand the production levels. In Evolves Renewable company business growth
potential depends heavily on the leadership skills, expectations for success and the
quantitative, qualitative measures used to determine the expansion.
 Personal Characteristics: Personal characteristics are the management capabilities which
concerns with human resource of company, the best way to utilize their potentialities for
effective growth. Evolve renewable company lays a lot of importance on relationship between
employers and employees, personal growth maintain good relations within the company for
the coordination in management.

Cont.
 High skill/competence of management::High skill competencies are management capability which refers to
skills that lead to superior performance in the market growth of company. Evolve renewable company lays
importance in increasing technological competence in the workforce, encourages collaboration by which the
services in providing renewable energies meet the expectations of people.
 Trust, comfort and fit with investeeThe management capability to establish trust, comfort levels and present a
position of stable investment with great returns in future for the potential investors in the marketplace. Evolve
renewable company should work on improving its technological levels to enhance the energy levels of electricity
storage in its batteries to attract new investors from the market.
 Industry experience of Owner / CEO incl. good track record: The CEO of a company holds a massive role to
lead his teams at the workforce in a good direction by his leadership skills. The CEO of Evolve renewable
company should utilize his industrial experience to bring innovative changes in technology up-gradation for all
its products so that large amount of electricity can be generated for longer time.
 Displays persistence, energy, sense of proportion and innovation: This factor explains the drawback in usage
of technology and how the energy in use needs up-gradation and technology innovation to meet the expectations
of users. Evolve renewable company needs to indulge in technology of high temperature electrolysis which
keeps the electricity stored for longer periods.

Cont.
 Leadership capability to meet future needs: A good leader guides his team effectively to reach
the business goals in a company. Evolve renewable company leaders should motivate the
workforce to meet the customers expectations effectively by improving their energy levels to store
electricity and using new way for long term storage is essential for company for its business
growth.
 Effective communicator: Effective communicators are of crucial importance for the bushiness
growth in company. Evolve renewable company workforce should be effective communicators to
reach the company goals, provide better work quality in all products. Proper communication in all
levels of management should be there and focus on the storage of electricity in all products.
 The opportunity provides a personal fulfilment for investor: Investors look for good financial
profits in return for their investments done in company. Evolve renewable company should keep
this factor in mind so that investors are happy with the business growth, the qualitative aspects of
its services and thus believe in fulfilment by their investments done in company.

Grants and Other supports
 IP protection: The company is highly needed to protect their intellectual property by registering patents,
copyrights, and trade mark etc. IP protection is very necessary for the company to create a safe zone for
confidential information and ideas.
 Business not solely dependent on the abilities of owner: Each people within business environment
play major role in the achievement of final goals. From top-level management to the low-level
management every person has their own work-abilities. Everyone's input is necessary in the growth the
company. The abilities of owner are not enough to gain high success in the market.
 Business plan is completed and applied: During preparation of the business plan, the company need
take help from various business consultants which has huge knowledge of different market segments.
Consultation is very necessary for knowing future impacts of the business plan on the company. Then try
to make business plan much effective for applying.
 External advisers: External advisers are basically consultants of business which give productive advise
to the businesses. In which the company also need to take specific advise from the external people or
consultancy institutions. These advices are helpful for the company to avoid such negative aspects from
the work environment.

Competitor and competitive advantage
 Good product no market: In case when the company provides good product in the market, but if there are
no customers for that particular product. Then the company will face loss issue in their business
environment. To avoid this type of issues the company need to produce products according the customer's
needs and demands. With this attempt this situation will convert into good product, large market.
 Single product only: Provide single product only to the customers. In this situation the management of the
Evolves Renewable company need to use effective marketing strategies for selling it. These strategies are
useful in the gaining too much attention of the people on that particular one product.
 No clear exit strategy: While start any activity in the company, the manager compulsorily need to make an
exit strategy. This strategy will help to the company to smoothly exist from any of the future business
situations. Exit strategy basically provide specific way to the company which help in systematically exist
from any business situation.
 Not enough growth potential: : In case if the company feel there are not enough growth potential, then it
needs to choose their plan B for put business on a progressive path. The company is highly needed to make
plan B also to deal with this type of situations. This new plan B will provide specific guidance to the
management to turn this situation into enough growth potential.

Assumptions
 Capability of management & people: The management and people or employees need to be much
capable at their workplace. Mainly the management need to focus on maintain their capability in the
company, because if once the management become productive and capable at their role then their
employees automatically become effective and capable at their workplace. The reason behind is, a
good management always provide productive guidance to their employees for work, and this guidance
improves their people's capabilities within company.
 Gut feeling not right: To deal with this situation the management of the Evolves Renewable company
need to develop and employ some strategies in their organization. In this case it needs to hire some
highly qualified people in the company which has extra ordinary knowledge of this industry. These
people will provide specific ways to the management which put company on a progressive path.
 Poor IP protection: : The company highly need focus on protect their intellectual property, otherwise
this IP will be stolen by competitors. Poor IP protection is too risky for the Evolves Renewable
company, in which their top-level management need discuss on this topic for create a safe zone for
their intellectual property.

Cont..
 Unrealistic expectations about valuation, terms & conditions: In the company's business operations,
the management need to think logical about each condition. There are various terms and conditions are
the company need to follow in their operations. In which the manager need to properly understand the
valuation factor, and also need to regulate various terms and conditions in logical manner.
 Due diligence failed: To face this type of conditions in the business, the management need to create a
pre-plan for perfectly deal with such conditions, like; “Due diligence failed'
 environmental, social and governance (ESG) issues: These issues also highly affect to the company.
In which the company is responsible to properly follow all guidelines of the ESC to avoid such issue
related to this.
 Non-financial issues: The Evolves Renewable company also need to consider their non-financial
issues. For example; many times skilful employees are not retained in the company, in this case the
management need to create a favourable work environment for them. So, they never quit their job.
 Stranded assets: The company need to use some business terminologies for their stranded assets. It
needs to systematically deal with stranded assents to avoid loss factor within business environment.

Breakeven
 The break even analysis helps in determining at which stage company
will be profitable.
 The BEP is estimated to be 8333. It means if the company is selling
8333 value of units then company is in a position of no profit no loss.
 Any value more than 8333 is considered to be the profit for the
company
ROI
 Company is expecting to generate revenue after selling more than
8333 value of units.

Distribution and supply strategy and exit
strategy
Distribution and supply strategy
 Company should adopt intensive distribution strategy in which company can sell its
products to as many outlets as possible.
Clear and attractive exit within the right time
 If Evolves renewable company analyses that there is no growth potential growth in the
market and my result in the loss of the business so it is the time where it should make
an exit in a market. One of the best exit strategy is selling business in open market.

CONCLUSION
 This study concludes that, managing and development innovation is an effective tool as
it helps company and industry to use their creativity in order to effectively introduce
new process, ideas and products.
 It helps in carrying competitive analysis and helps in analyzing future trend of energy
renewable sector.

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