Innovation and Risk Management Analysis: Tesla Motors Report

This report delves into the strategic innovation and risk management processes of Tesla Motors, focusing on their entry into the UK electric vehicle market. It examines the application of the 7 Dimensions of Strategic Innovation Model, analyzing each dimension's role in facilitating growth and success. The report explores the background of Tesla Motors, its location near London Bridge, and its target consumer base. It details the managed innovation process, strategic alignment, industry foresight, consumer insight, core technologies, organizational readiness, and disciplined implementation. The analysis emphasizes the importance of market research, risk management, and adapting to the external business environment. The report concludes with recommendations for Tesla Motors to enhance its innovation processes and address potential challenges, highlighting the need for a structured and disciplined approach to innovation, especially in a larger and more complex organization. The report emphasizes the necessity of risk assessment and the importance of human resources in managing innovation within the company. This report is contributed by a student and available on Desklib, a platform providing AI-powered study tools.

INNOVATION AND RISK MANAGEMENT
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Table of Contents
Introduction ........................................................................................................................................4
Background of the organization.......................................................................................................4
7 Dimensions of Strategic Innovation Model ......................................................................................4
Conclusion ...........................................................................................................................................8
References............................................................................................................................................9
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Illustration Index
Illustration 1: 7 Dimensions of Strategic Innovation Model ...............................................................5
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INTRODUCTION
Strategic Innovation is the creation of growth strategies, new product categories and new
value for customers where in business entity established develops cohesive set of practices that
inspire people to look beyond the broad range of possibilities (A Framework for Strategic
Innovation, 2015). The present research study has been emphasizing on strategic innovation and
risk management process of (Tesla Motors) which is starting its new business in the area of electric
vehicles sector and which have all types of electric services to the consumers. The business has
established itself as a part of electric service provider to consumers of UK. The company has been
opened nearby London Bridge and the subsequent place is selected because it is a populous
destination where large number of public is available for adventurous aspects. The study has been
discussing 7 dimensions framework of innovation and how it aids the subsequent entity in
facilitating suitable electric services for the ultimate service users. Furthermore, researcher has also
discussed risk management procedure of the company.
Background of the organization
Tesla Motors is one such company which is located nearby the popular destination of
London as a new entity and the company has been providing all sorts of electrical services to the
consumers. Chief emphasis has also been given on location of the company so that customers can
get convenient services related to household and office work purposes. Similarly, the business has
also targeted those entities who delivers repairing and maintenance services to the vehicle
department.
7 DIMENSIONS OF STRATEGIC INNOVATION MODEL
The strategic innovation framework weaves together seven dimensions to produce a
portfolio of outcomes that helps the business entity to facilitate growth and success (Chin, Yeung
and Pun, 2006). A managed innovation process lies at the creative core of the approach and it
facilitates the interplay among external perspectives and organization's internal capabilities.
Strategic innovation process is designed so as to manage and create strategic alignment in the
process of creativity and growth management. The model covers the sequence of activities from the
beginning of an initiative through implementation (Walden, Carlsson and Liu, 2000). It has also
been observed that the process combines both unconventional and traditional elements as it includes
the usual analysis procedure. The model is segregated into two modes of thinking such as divergent
and convergent (Gray, 2011). Divergent mode lies at the heart of the strategic innovation approach
and it also considered as open ended approach. The chief dimensions of the model are discussed in
the below mentioned section.
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Managed Innovation Process
It combines non- traditional and traditional approaches to business strategy and it also
locates at the creative core of the approach. Moreover, it also covers varied actions from the
beginning of any initiative (Cowan and Anthony, 2008). This usually happens at the time of
managing innovation process. It also contains market trends, competitive analysis and usual
customer; however the business can look rapidly beyond these aspects. Similarly, the traditional
future planning can be found through this perspective. Hence, this can be particularly used at the
time when Tesla Motors will add new services in the existing service line (Fitzsimmons and
Fitzsimmons, 2000). Since, the business is entering with new entity; therefore it needs to emphasize
on the model so that innovation and creativity can be facilitated on higher extent. Tesla Motors
needs to firstly analyze on concept of innovation where in changes could be facilitated in new
product service, new business model and new market. The business is chiefly required to focus on
existing organizational procedure so that the scope of new things can be found out (A Framework
for Strategic Innovation, 2015). The overall concept of innovation will be managed in appropriate
manner if Tesla Motors will include various categories of services.
Strategic Alignment
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Illustration 1: 7 Dimensions of Strategic Innovation Model
(Source: 7 Dimensions of Strategic Innovation, 2001)

It involves key external stakeholders in the improvement of shared vision which is
developed by the senior leadership team of Tesla Motors (Brantingham and et.al., 2000). The entire
management and employees should support each other while introducing new things to the
organization. Strategic alignment can be managed through cross-functional participation included in
the innovation procedure (Chin, Yeung and Pun, 2006). Cross-functional teams needs to be included
in entire processes of the organization and there in all the key stakeholders should be engaged.
Hence, in such respect all the participants must contribute in strategic processes so that new things
can be involved. Tesla Motors must have to prepare suitable aims and objectives and that should be
communicated to all the employees (Chenhall, 2005). Tesla Motors have to emphasize on internal
and external alignment so that the core competency of the business can be accelerated. This is also
useful in terms of differentiating the business with that to other business entities.
Industry Foresight
The model also facilitates a top down approach which analyzes and enables drivers that
helps the industry to continuously grow and prosper more (Cowan and Anthony, 2008). With the
help of such model, Tesla Motors will be able to comprehend all the forces that drives changes in
the business entity in terms of technologies, potential dislocation and competitive dynamic and
converging trends. While establishing the business, it is vital for Tesla Motors to accentuate on
emerging market trends so as to meet the needs of customers regrading vehicle services. Tesla
Motors is also required to focus on new services so that customers can be persuaded towards
business products and services. Besides this, Tesla Motors should concentrate on competitors and
all other business entities so that to facilitate product differentiation aspects (Edquist, 2011). While
establishing the business, Tesla Motors should develop several strategies so that customer base can
be encouraged for longer span.
Consumer Insight
It is an apparent fact that Tesla Motors has been working as a electric service provider where
in effective electrical services are available for customers and repairing entities. Similarly, the
business should focus on needs and preferences of customers so that appropriate services can be
brought to market place at respective time frame. Tesla Motors must meet demand through
recognizing the demands of clients and through supplying proper electrical services to them
(Fitzsimmons and Fitzsimmons, 2000). In such respect, Tesla Motors can also stress upon tangible
and intangible services because that highly helps the business entity to increase customer loyalty
aspects. Consumers are the key stakeholders of Tesla Motors which assists the entity to lay
emphasis on acquiring more profit and success. Consumers are also considered as the key
stakeholders of the business which helps the entity to remain in the market place for longer time
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span (Cowan and Anthony, 2008).
Core Technologies and Competencies
Every business entity in the contemporary scenario knows the importance of technological
aspects; therefore on that basis, changes should be made to organizational practices. Here, in Tesla
Motors should leverage and extend corporate corporate assets so that business value can be
augmented on higher extent (Gassmann, 2006). Thus, according to such facet, Tesla Motors should
consider the ways through which organizational competencies can be enhanced. Moreover, there
should be appropriate advancement in asset management where in the business entity should
contribute more in encouraging the value of all the assets and properties. At the same time, Tesla
Motors should also emphasize on developing internal capability of the business where in concern
should be given towards all the organizational resources. Internal capability of the business can be
enhanced in the case if employees will get sufficient amount of benefits from the organization
(Gray, 2011). From many research studies, it has been observed that internal capability of business
encourages probabilities of growth and success; therefore this could also assist Tesla Motors to
utilize all the resources in optimum manner.
Organizational Readiness
Organizational readiness depicts the ability of Tesla Motors to take action in the business
services as per the newly implemented changes. Business should always get ready to accept
changes and new things in the organization, because it accelerates the probabilities of success and
growth aspects. Moreover, with the help of organizational competency, Tesla Motors will be able to
retain its position in external business environment (Risks associated with product development,
2012). Organizational readiness also depicts that business is able to opt all the changes exist in the
external market place. Each and every process related to innovation should be managed in
appropriate manner according to the market conditions. Tesla Motors should inhibit and drive its
ability to implement new strategies and ideas in the business processes and according to that, the
business should act accordingly. Further, focus should also be there regarding political, financial,
cultural and operational demand that follows all the business processes. With a specific time period,
Tesla Motors should emphasize on external environment so that business can acquire its position in
competitive market place (Fitzsimmons and Fitzsimmons, 2000).
In such stage, Tesla Motors should also get ready to opt for cultural changes which refers to
the mindset and norms that allows individuals and teams to think in diverse way (Simons, 2013). It
also includes factors such as leader's style of operating business services, employee profiles and
corporate values. Further, there should be some changes in existing processes of Tesla Motors so
that the management can effectively achieve all the aims and objectives. Structural readiness should
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exist there which refers to changes in organizational structure and technologies for more innovation
and flexibility.
Disciplined Implementation
Apparently, changes are considered as effective for business processes where in the entire
path should be managed from inspiration stage to impact stage (The 7 Dimensions of Innovation,
2007). The capacity of Tesla Motors for discipline implementation and effectiveness will limit and
enable the success. It can manage the path from inspiration to business influence. Every process
related to organizational change value should emphasize on disciplined implementation for the
purpose of building the competency level. All the dimensions should be managed in such a way so
that it can assist Tesla Motors to augment the opportunities of growth and success. This is highly
useful in terms of managing organizational growth and success. Changes will produce suitable
outcomes only when they are implemented in prominent manner. Hence, afterwards facilitating
innovation in the business processes, Tesla Motors should develop such culture so that people can
get ready to opt the subsequent change in existing business practice (Tushman and Anderson, 2004).
This is a core process for facilitating ongoing sustainable innovation and competitive edge.
The work of strategic innovation often has profound implications in terms of operational,
structural and business process change (Vison and et.al., 2004). This is typically the stage where
more risks generates; hence Tesla Motors is required to accentuate on proper risk assessment so that
better outcomes can be acquired. Therefore, this is the stage where the innovation process transition
from ambiguous and exploratory to concrete and operational. Concluding, it can be said that at the
end of divergent phase, Tesla Motors will have to develop varied strategies. Human resources of the
business will have to pay more efforts in this area so that all the challenges related to organizational
innovation processes can be minimized. All the dimensions of the innovation framework aids in
enhancing size and complexity of the organization. In terms of suggestion, it is pertinent for Tesla
Motors to consider organization's size and structure and its impact on collaboration among
organizational processes (Walden, Carlsson and Liu, 2000). Moreover, it is also clear that the larger
and more complex the organization, the more structured and disciplined the approach to innovation
will be.
CONCLUSION
While establishing new business firm, it is mandatory to conduct market research so that
associated challenges and risks can be managed adequately. Concluding the research study it can be
said that Tesla Motors should focus on risk management aspects and for that every area of business
should be focused upon. The model should be adequately implemented in the business process and
along with that, employees should be involved in creative processes for more growth and prosperity.
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Moreover, the study is useful for all the business entities that aims to establish the business in new
market place with new conceptual framework.
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