Lean Startup Innovation at Hewlett-Packard: A Report

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INNOVATION AND SUSTAINABLE BUSINESS
DEVELOPMENT
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Executive summary
Lean startup is a new innovation trend that aims at creating innovative and exquisite products to
deliver improved services to the customer. In the report, there will be a discussion about the
impact of new innovation trend lean startup on the Hewlett-Packard Company. HP makes
manufactures computer and other electronic appliances. It is a very famous company and it
operates in the global market. The company is using this innovation trend to provide better
services and to create value.
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Contents
Executive summary.........................................................................................................................2
Introduction......................................................................................................................................4
Select a business impacted by the advances of 'design thinking' movement as described in the
paper by Liedtka (2018) or impacted by the advances of 'lean start-ups' movement as described
in the paper by Blank (2013)...........................................................................................................5
Succinctly introduce the selected organisation and selected innovation trend................................6
Analysis of the impact lean start upon Hewlett Packard Enterprise..............................................10
Recommendations for organisation innovation strategy to respond to innovation.......................12
How the organisation’s innovation strategy best responds to the innovation trend..................12
How the organisation best ensures strategic alignment to address the innovation trend:.........12
What innovative initiatives should it pursue?............................................................................12
How should the organisation ensure that it creates and captures value from the innovation?. .12
Conclusion.....................................................................................................................................13
References......................................................................................................................................14
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Introduction
In this study, the new and emerging term “Lean Start-up" will be discussed. This term means
when new business houses want to build new businesses then this method provides them
adequate methods after understating the need of the customer. In this study, choosing the
company is "Hewlett-Packard". HP makes the computer and other electronic devices; it was
founded in the year 1939 by William Hewlett and David Packard. This company makes over
10,000 different products including from computer systems to electronic devices. There will be a
discussion about the term "Lean Start-up" movement. The relationship among the innovation
capability, innovation value, etc. will be discussed.
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Select a business impacted by the advances of 'design thinking' movement as described in
the paper by Liedtka (2018) or impacted by the advances of 'lean start-ups' movement as
described in the paper by Blank (2013).
Lean Start-up provides a systematic and scientific approach to the Hewlett Packard (HP) in
managing and creating design products, to reach in the hands of the customer as early as
possible. Does this lean start-ups succour the HP in learning how to steer? How to turn? Etc. In
HP this is considered as the principle approach for the new product advancement. The lean start-
ups succours the HP with the positive impacts as described below:
 Reduce uncertainty - After using this approach, HP becomes able to understand that at
the time of high uncertainty they should keep their ideas rough and provide them shape
only for being able to test the underlying assumptions.
 Smart working – Every business houses need to go from the circumstances where they
need to ask from themselves that how they can build a certain product? By adopting the
lean start-ups methodology, HP understands that instead of asking "How this product will
build?" they should ask "Why they should build this product?" If HP is getting a
satisfying answer then they should move further (De, et. al., 2018).
 Develop an MVP – It stands for the minimum viable product which means new product
or business should have features that can satisfy early adopters. The MVP helps the HP in
accomplishing their objective during the period of time.
 Scientific approach – Lean start-ups provides the scientific principles and methods that
can be adopted by the management of HP. These principles have the guidelines and
framework which can provide adequate information that is essential for the market
survival of the company (Ekpe, et. al., 2018).
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Succinctly introduce the selected organisation and selected innovation trend.
Selected organisation
The selected company is "Hewlett Packard (HP)" and the selected trend is "Lean Start UP". The
company is known for making computer hardware; the software provides IT services and IT
consulting. The headquarters of the company is situated in California. The product line of HP
includes digital cameras, computers, laptops, tabs, printers, etc. HP and Printing group together
creates and sales products like inkjet and laser printers, Design jet and Scitex large format
printers, HP sPaM, etc. Now, let's talk about management style. HP adopts their own made
management style which known as “The HP way”, this strategy always give attention on creating
affordable quality products, effective pricing strategy, this strategy follows proper environment
ethics with the welfare of humanity and they also believe in the teamwork. In this strategy, they
encourage innovation and flexibility with uncompromising integrity (Collis, 2016).
Selected innovation trend
Lean Start-up works on the assumption that when the new or start-up companies decide to invest
their time for building new products to fulfil the need of early customers, by doing this they can
reduce the present market risk. This trend can eliminate unfair or meaningless practices so the
value producing practice enhances during the period of time. In this, customer feedback is
considered as the mirror because the customer may tell us about the features that are not required
and it ensures that the company is no longer investing their scarce resources in meaningless
features. Lean start-ups basically use two processes that are performance indicators and a
continuous development process.
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Succinctly define the following concepts and their relationships: the organisational
environment, innovation trend, innovation strategy, innovation capabilities, innovation
value creation and capture.
The organisational environment includes internal and external factors which affect the
organisation. Internal factors are shareholder, employees and the respective board of director of
the organisation.
External factors of the organisation are political, social, technology and legal. Both elements are
entirely responsible for affecting the current business. Innovative strategies or approaches are
promoting the business towards high growth (Jia, 2017).
Lean start-up is the kind of methodology in which large organisation offers to be work with them
and proves the innovative ideas in the market. In traditional method people have excellent, but
they can’t get the proper platform. So, large organisation move forward and help those
entrepreneurs who have innovative ideas and provide something unique to the public.
This trend follows some steps as follows:
1) Identifying the issues faced by ordinary people. If an individual find and identify the solution,
then it requires a platform.
2) Apply for those organisation which gives offers to the lean start-up. Like HP offers various
entrepreneurs who have such innovative in which they come with the small product of its
imagination.
3) After accepting the creative ideas from the large organisation. Individual must iterate its
experiment until it does not optimise its platform.
Innovation strategy: It is a kind of proposal for the expansion and improvements in the
business. It is developed for increasing the performance of the organisation and implements
some new experiment over the company. The HP innovation strategy is to satisfy its customer
demand and encourage them to use its product (Packard, 2018). Policies must be the frame in the
right way by which helps the organisation to increase more revenue and remove the barriers in its
success.
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Innovation capability: It is the capability to introduce or launch something new in the existing
market where some other strategy already there. HP is the leading information technology
company. It is always starting some innovative ideas which are better than previous. Its product
is highly demanding in the market. Its product is according to customer demand and nee. Its
capabilities are increases due to the constant growth of the company.
Innovation Value Creation: The first aim of the business is to start creating value, and it will
create by the help of providing service to the customer .Information should be share among
shareholders like the price of stock prices, the investment fund for the future operations (Maron,
et. al., 2015).
Capture: Every record must be captured in the form of image or documentation.
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Succinctly describe how the creation of an innovation strategy ensures strategic alignment
within organisations and why it is important.
Innovation strategy develops the organisation in creating the product as per the requirement of
the customer or user. It ensures that strategy alignment keeps the organisation protected from the
external environment (Voegtlin & Scherer, 2017). Strategy alignment is the method in which
innovation strategy links with the objectives and the goal of the organisation.
Importance of innovation strategy
Generate more revenue: After the implementation of the innovation strategy, HP company
increases its annual revenue. Lean startup innovation trends enhance the brand image of the
organisation because rarely an organisation adopt this kind of innovation because it requires a lot
of investment and strategies (Hervas-Oliver, et. al., 2014).
Expansion of business: As the lean startup, HP company work with the numerous entrepreneur
who develops new products. This strategy boosts the organisation to improves its marketing
platform and enhances brand images.HP company is already a multinational country, but after
the implementation of these innovative ideas, its growth is continuously progressing.
Providing excellent quality services: As HP company execute its innovate ideas that means its
creativity will increase. One innovative design creates various creative approaches. There is a
possibility that the company will collaborate in the future and optimises their creativity in their
own business (Wijethilake, 2018).
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Analysis of the impact lean start upon Hewlett Packard Enterprise
Lean startup to provide an approach or tool to create and manage the startup. The lean start up
method teaches how to manage and runthe start up. It helps in business acceleration. It focuses
on the development of new businesses that focuses on the experiment, investigation in the
products and services. The lean startup includes three steps. These are as follows:
1. Provide a solution to the problems
2. Creation of minimum viable product
3. Measurement and experiment
The impact of lean startup resulted in the creation of new technologies and unskilled employees.
It helps the business organisation to compete in the global market and increase productivity. The
lean startup is an innovation strategy for the expansion of the business. It impacted the company
positively and resulted in higher profits (Burgelman, et. al., 2016).
Swot analyses
To analyse the impact swot analyses will be used. Swot stands for strength, weakness,
opportunities and threat. The swot analysis enables an organisation to identify or discover new
opportunites with minimising the threats.
Strength: Weakness:
 Strengthis the inbuiltcapacity of a
company that it can apply to get a
competitive benefit over other firms.
 Hewlett Packard by the innovation
trend lean startup is getting an
advantageand making plenty of
profits.
 The company through the innovation
trend increased productivity.
 Weakness is the inbuilt disability of a
company. Every company should try
to overcome weaknesses so that other
companies gain the advantage.
 Lean startup is not a weakness for the
Hewlett Packard as the company is
using this trend to provide better
services to its customers.
Opportunities: Threat:
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 the innovation trend lean startup is an
opportunity for the company as
Hewlett Packard relies on delivering
the services according to the
requirements of the customers.
 With the help of this innovation trend,
there are various opportunities
available in the market. opportunity is
the favourable situation for a
company in the market.
 The threat is hazard prevailing in the
marketplace such as the bargaining
power of suppliers, new sellers,
bargaining power of customers and so
on. By conducting research on the
market conditions, Hewlett Packard
can decrease or minimise the danger.
 Lean start uptrend is not a threat to
the company as the objective of the
company aims at providing a high
quality of services.
Business model canvas
Key Partners
 Asian TV
brand
 Dealers.
 Suppliers.
Key Activities
 Manufacturin
g
 Production of
electric
appliances.
Value
Proposition
 Brand
identification
.
 Better quality
of services.
Customer
Relationships
 A superior
level of
satisfaction
Customer
Segments
 Every
segment as
it constructs
electric
appliances.
Key Resources
 storehouse
 industrial
infrastructure
Channels
 Agencies.
 Stores.
 Intermediaries
.
Cost Structure
 High investment into new techniques.
 Investment in environmental responsive
practices.
Revenue Streams
 Online payment
 Cash on delivery
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