Comprehensive Innovation Report: Evolves Renewable Company (SEB711)

This report provides a comprehensive analysis of managing and developing innovation, focusing on the case of Evolves Renewable Company. The report begins with an introduction to innovation and its importance, followed by an analysis of the company's adoption of high-temperature electrolysis technology. It then delves into market analysis, including market size, trends, and potential customers, followed by a competitive analysis using SWOT and PEST frameworks. The report includes financial forecasts, such as a profitability statement and cash flow analysis, and concludes with a break-even analysis to determine the company's profitability threshold. The report emphasizes the renewable energy sector, the company's potential for expansion, and the importance of financial management for sustainable growth. The analysis highlights the company's strengths, weaknesses, opportunities, and threats, as well as the impact of political, economic, social, and technological factors. The report also includes a conclusion summarizing the key findings and the overall impact of innovation management.

Managing and Developing
Innovation (SEB711)

TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................1
SECTION 1 & 2...............................................................................................................................1
SECTION 3 & 4...............................................................................................................................1
SECTION 5......................................................................................................................................2
SECTION 5 /6/7..............................................................................................................................2
SECTION 8......................................................................................................................................3
SECTION 9 & 10.............................................................................................................................4
SECTION 10....................................................................................................................................6
SECTION 11: CONCLUSION........................................................................................................7
REFERENCES................................................................................................................................8

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 (Tidd and Bessant, 2018). 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.
SECTION 1 & 2
Innovation is considered to be one of the effective measure which in turn helps in
bringing in new idea and concept which in turn helps in carrying sever al business solutions. Use
of advanced technology of high temperature electrolysis is the innovation technique which has
been adopted by the Electrical and Renewable energy company named Evolves renewable
company (Biemans, 2018). It tends to provide an opportunity to effectively convert electricity
into hydrogen. This helps in storing electricity in the mode of Hydrogen which in turn is re-
electrified. Innovation of technology is important because it is useful in storage of electricity in
high quantity as compared to the pumped hydro or batteries and CAES. Adapting to such
innovative technology of High temperature Electrolysis tends to have the efficiency of
approximately 90%. It is also useful in various other purpose like use of hydrogen, feedstock in
chemicals, supply of electric power to isolated sites or small islands.
SECTION 3 & 4
Market and customers: The market size of the customers are very prominent. It tends to
have great market which helps in targeting large number of customers from across the globe
towards this hydrogen technology which in turn helps in saving or storing electricity.
Market size: It tends to have one of the biggest market size as it is one of the most
innovative technology which is in demand (Prange and Schlegelmilch, 2018).
Market trend: High temperature electrolysis is considered to be one of the leading role as
it results in the rise in the Electrical and Renewable energy sector by the end of the 2050. It tends
to seek for increase in the green house emission and also tends to focus on using renewable
energy.
Future market: The future market of the high temperature electrolysis technology is
considered to be very high. It will tend to focus on developing new electrolysis technologies
1

which in turn helps in storing electricity (Ellis, 2018). This technology tends to have increase
demand which in turn helps in green environment practice.
SECTION 5
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
(Midler, 2019). This in turn help 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.
SECTION 5 /6/7
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 (Tiwari and Buse, 2020).
Opportunity: Taking key advantage of the strong suppliers and warehouses helps in
reaching isolated island. This leads to high business growth.
Threat: Already existing rivalry competitors is considered to be one of the major threat to
Evolves renewable company.
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.
2

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.
Social factor: Change in the trends, knowledge of the populations and organizational
image plays a key role which influence the operations of the company (Pongsathornwiwat,
Jeenananta and Huynh, 2016, September).
Technological factor: Complying with emerging technologies, effective distribution of
the goods and services, etc. are one of the key factors which influence business operations.
SECTION 8
Profitability statement
Particular
s
Jan
uar
y
Feb
rua
ry
M
ar
ch
Ap
ril
Ma
y
Jun
e
Jul
y
Au
gus
t
Sept
emb
er
Oct
obe
r
Nov
emb
er
Dec
emb
er
Sales
revenue
300
00
306
00
31
21
2
318
36
324
73
331
22
337
85
344
61
3515
0
358
53
3657
0
3730
1
L
es
s: Material
750
0
765
0
78
03
795
9.0
6
811
8.2
41
828
0.6
06
844
6.2
18
861
5.1
43
8787
.445
896
3.1
94
9142
.458
9325
.307
L
es
s: Labour
450
0
450
0
45
00
450
0
450
0
450
0
450
0
450
0 4500
450
0 4500 4500
L
es
s:
Other
expenses
600
0
612
0
62
42.
4
636
7.2
48
649
4.5
93
662
4.4
85
675
6.9
75
689
2.1
14
7029
.956
717
0.5
55
7313
.967
7460
.246
L
es
s:
Administra
tion
expenses
500
0
500
0
50
00
500
0
500
0
500
0
500
0
500
0 5000
500
0 5000 5000
Total
expenses
230
00
232
70
23
54
5
238
26
241
13
244
05
247
03
250
07
2531
7
256
34
2595
6
2628
6
Net profit
700
0
733
0
76
67
801
0
836
0
871
7
908
2
945
3 9832
102
19
1061
3
1101
6
Interpretation: The net profit in Jan is estimated to be 7000 and 11016 in December.
This leads top higher profitability for the business. Increase in the net profit indicates that, the
company has been reducing its expenses and tends to focus on increasing its revenue for higher
3

profitability of the business. It also indicates, company is very efficient in converting its sales
into profit.
SECTION 9 & 10
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.
4

Particulars
Jan
uar
y
Feb
ruar
y
Ma
rch
Ap
ril
Ma
y
Jun
e
Jul
y
Au
gus
t
Septe
mber
Oct
obe
r
Nove
mbe
r
Dece
mbe
r
Cash
inflows
Opening
cash inflow
500
00
5700
0
64
33
0
719
96.
6
800
06.5
3
883
66.6
6
970
84
106
166
1156
19
125
451
1356
70
1462
84
Sales
revenue
300
00
3060
0
31
21
2
318
36
324
73
331
22
337
85
344
61
3515
0
358
53
3657
0
3730
1
Total cash
inflows
800
00
8760
0
95
54
2
103
833
112
479
121
489
130
869
140
626
1507
69
161
304
1722
40
1835
85
Cash
outflows
Material
750
0 7650
78
03
795
9
811
8
828
1
844
6
861
5 8787
896
3 9142 9325
Labor
450
0 4500
45
00
450
0
450
0
450
0
450
0
450
0 4500
450
0 4500 4500
Other
expenses
600
0 6120
62
42
636
7
649
5
662
4
675
7
689
2 7030
717
1 7314 7460
Administrat
ion
expenses
500
0 5000
50
00
500
0
500
0
500
0
500
0
500
0 5000
500
0 5000 5000
Total cash
outflows
230
00
2327
0
23
54
5
238
26
241
13
244
05
247
03
250
07
2531
7
256
34
2595
6
2628
6
Cash
deficit /
surplus or
closing
cash
balance
570
00
6433
0
71
99
7
800
07
883
67
970
84
106
166
115
619
1254
51
135
670
1462
84
1572
99

Interpretation: There has been increasing trend of cash inflows into the business from
5700 in Jan to 157299 in December. Surplus cash flow indicates that, the company is performing
we ll and the company maintain enough cash to carry out day to day operations of the business.
SECTION 10
Break-Even analysis
Particulars Formula Figures
Selling price per unit 1500
Variable cost per unit 600
Contribution per unit
Selling price per
unit - variable cost
per unit 900
Fixed cost 5000
BEP (in units)
Fixed cost /
contribution per
unit 6
BEP (in value or monetary terms)
BEP (in units) *
selling price per
unit 8333

Interpretation: 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.
SECTION 11: 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 analysing future trend
of energy renewable sector.

REFERENCES
Books and Journals
Biemans, W., 2018. Managing innovation within networks. Routledge.
Ellis, S., 2018. Developing an Innovative Model for Managing Student Engagement.
Midler, C., 2019. Crossing the Valley of Death: Managing the When, What, and How of
Innovative Development Projects. Project Management Journal. 50(4). pp.447-459.
Pongsathornwiwat, N., Jeenananta, C. and Huynh, V.N., 2016, September. Managing knowledge
management competency by integrating with collaborative behavior into improving
hospitality innovation capability. In 2016 IEEE International Conference on Management
of Innovation and Technology (ICMIT) (pp. 214-219). IEEE.
Prange, C. and Schlegelmilch, B.B., 2018. Managing innovation dilemmas: The cube
solution. Business Horizons.61(2). pp.309-322.
Tidd, J. and Bessant, J.R., 2018. Managing innovation: integrating technological, market and
organizational change. John Wiley & Sons.
Tiwari, R. and Buse, S., 2020. Key Issues in Managing Innovation in a Global and Digital
World: An Introduction to the Festschrift in Honor of Cornelius Herstatt. In Managing
Innovation in a Global and Digital World (pp. 1-13). Springer Gabler, Wiesbaden.