Innovation Strategy for Volvo: A Lean Startup Approach

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MGMT20132: Innovation and Sustainable Business Development
Assessment 1: Individual report: innovation strategy
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Executive Summary
In present report, innovation is being promoted by business firm like Volvo. Through having a
proper consideration of innovation practice the development measures can be valued accurately.
Application of standards in regard to sustainable values is also necessary because it facilitates to
meet the objective. Lean Startup is also a practice that is being adopted by Volvo to have
accurate working in regard to innovation. Issues can be resolved accurately to meet the
objectives.
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Table of Contents
Introduction......................................................................................................................................4
Volvo Overview...............................................................................................................................4
Understanding of lean start-up.........................................................................................................4
Defining important concept.............................................................................................................5
Innovation strategy......................................................................................................................5
Organization environment...........................................................................................................5
Innovation strategy......................................................................................................................6
Innovation capabilities.................................................................................................................6
Value creation..............................................................................................................................7
Significance of innovation strategy for Volvo.................................................................................7
Impact of lean Startup......................................................................................................................8
Swot of lean startup.....................................................................................................................8
Business canvas model................................................................................................................9
Recommendation for innovation strategy......................................................................................10
Recommendation for strategic alignment......................................................................................10
Conclusion.....................................................................................................................................10
References......................................................................................................................................11
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Introduction
Innovation is being considered by every business firm as a critical aspect because it facilitates in
meeting the objectives and leads to an impressive level of success. The current trend in the
market is to have proper use of lean startup so that long term development can be valued. In
order to have a better understanding of the innovation promotion the Volvo is considered as an
organization (Levinthal & Contigiani, 2018). The study will provide information in regard to the
lean startup as an innovation trend. Different factors associated with the practice will also be
measured accurately.
Volvo Overview
Volvo is considered as a Swedish multinational manufacturing firm that operates its business
majorly from Gothenburg. The company offers a wide range of products in the market such as
car, truck, buses and construction equipment. It has been witnessed that the company is also well
known for its impressive supplies in marine, industrial drive and financial services. Volvo holds
an improved brand image in the market. It is also a key reason that recent years the growth rate
of the company has also been advanced (Harms, 2015). The company was founded in the year
1927 and current CEO of the brand is Martin Lundstedt. A business firm is also focused towards
continuous improvement in the innovative values so that a better competitive advantage can be
gained.
Understanding of lean start-up
Lean Startup is considered as an approach that allows having a building of base for new
businesses according to consideration of an entrepreneur's belief. In this, diverse factors are
being referred by businesses to ensure that practice application is accurate. Classification of key
factors can be as investigate, experiment, test and iterate. It facilitates in the effective
development of a project that means the Volvo can also have access to the practice to have
innovation development in terms of car, truck, buses and construction equipment (Frederiksen &
Brem, 2017).
Defining important concept
Innovation strategy
Innovation strategy is considered as a plan that allows promoting business accomplishments and
leading to an impressive level of success. An innovation technique is a game-plan to make a bit
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of the general business or favourable circumstances through a thing and association progression.
When looking at strategy through an occupations to-be-done purpose of combination, it may be
seen that an unbelievable framework should decisively illuminate which work administrator,
business, and territory to focus on accomplishing the most improvement (Mansoori et al. 2019).
By having an adequate consideration of the innovation strategy the business success rate can be
improved. Formation of the innovation strategy is also beneficial to gain a competitive advantage
and ensure that targets are being met. Also, innovation strategy is being framed in different
manners as per the type of innovation. It indicates that innovation can be classified in a different
way such as product, service, operation, customer support, etc (Ghezzi & Cavallo, 2018). It has
been witnessed that by having an accurate working in regard to the innovation promotion the
strategy needs to be properly. Growth prospects can also be promoted in an adequate manner so
that long term sustainability can be well maintained.
Innovation must be promoted by the business firm to have the promotion of better values.
Through proper selection of innovation strategy the Volvo can have accurate working in order to
accomplish objectives. Innovation is the creation and change of new learning into new things,
system, or associations that address advance issues. Everything considered, progression makes
new affiliations and is the central wellspring of progress in business and industry (Mansoori,
2017). Classification of key innovation aspects that can be referred by Volvo is as incremental
innovation, disruptive, architectural and radical innovation.
Organization environment
Organization environment is also needed to be reviewed by a business firm like Volvo. It is
essential for Volvo to bring innovation and implement the trend by having an analysis of
environmental conditions. Corrective measures must be reviewed so that issues can be overcome.
If the business is not considering the environmental values during application then the outcome
might be faced in a negative manner. The environment is an external factor to the connection,
and a brief inspiration of changes execution in the business (Seggie et al. 2017). By having a
proper understanding of the different situation the innovation can be implemented accurately.
Using various measures in regard to sustainable development is critical because it also facilitates
in promotion of innovation (Gutbrod & Münch, 2018).
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Innovation strategy
There are a few key steps that need to need to be referred by the manager of Volvo to have
innovation promotion in practice. Initially the problem must be understood accurately so that key
factors can be evaluated. It will allow having proper defining of the solution so that the issue in
the product development process can be targeted accurately. It helps in dealing with the problem
and provides effective product development (Yang et al. 2019). After this, the creation of the
MVP is also necessary to consider by the Volvo because it also facilitates in defining the solution
so that accurate working can be promoted. It has been witnessed that minimum viable product
can also be developed accurately in order to meet the reliability. At last the experiment and
measure are also factors that a manager must promote to have product development. It will
facilitate to have accurate development of measures so that innovation can be promoted. The
product must be tested and experimented properly in a loop so that values can be well maintained
(Rasmussen & Tanev, 2015).
Innovation capabilities
Innovation also promotes sustainable development with a motive to impress the values. It has
been witnessed that the cost of practice and product can be cut down if innovation is being
employed properly. Work productivity is also value or benefit that is being prompted by
innovation (Bieraugel, 2015). Along with this, it can be said that innovation facilitates to
improve the standard working and offer reliable work practice.
Value creation
Value creation is also being promoted adequately by having an application of innovation.
Considering the key measures accurately the innovation practice is being promoted by an entity
so that long term sustainability can be well maintained. By having a proper reference of the value
creation practice the support to innovation can be improved properly. Value creation is the basic
motivation behind any business substance (Edison et al. 2015). Making a spurring power for
clients helps sell things and associations, while making a driving force for money related
authorities, as growths in stock cost, verifies the future transparency of speculation money to
support activities.
Significance of innovation strategy for Volvo
Importance of innovation strategy is also necessary to consider properly so that long term
sustainable values can be promoted. It has been witnessed that innovation strategy also helps in
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implementing the key values and ensure that values are being well maintained. A business firm
can have easy growth and values so that sustainable values can be accurate. Achieving growth
values is also a critical factor that needs to be reviewed adequately by the business firm.
Innovation allows performing the activities in an accurate manner and leading the business firm
to an impressive level of success. Getting into the idea of business is also a critical factor that
needs to be promoted properly so that long term values can be well maintained (Boyd, 2017). By
having an adequate consideration of innovation strategy the new business model can be
developed. It is also significant to have sustainable development. Increase value also benefits
that is being promoted adequately to have sustainable opportunities. Changes in practice can also
be promoted accurately and facilitate to accomplish the objective.
Innovation is related with making new regard people are tense to use and pay for, in any case
improvement structure is the game-plan for dealing with for example showing, exercises, cash
and R&D to help the attracted target and achieving it. To clear up, the advance methodology isn't
about advancement techniques, for instance, setting up an idea test, yet effectively about
mapping coalition's focal objective, vision and prodding power for portrayed customer advance
(Wang et al. 2016).
Impact of lean Startup
Impact of lean startup is also necessary to consider properly so that accurate development and
standards can be implemented. It has been witnessed that Volvo can have constant evolve that
will benefit the entity in accurate working. The issue regarding the debt can also be controlled
that means the financial practice can be promoted properly by having consideration of lean
startup. Using lean startup innovation the issue and problems within the practice can also be
identified in an accurate manner (Gutbrod & Münch, 2018). It facilitates to meet the standard
and work process is being valued accurately. By resolving the problem the business firm can
easily have accurate working in terms of development.
It has been witnessed that by having proper consideration of the lean startup the better prevention
in regard to stucking at work can be promoted. Issues can be resolved accurately so that
sustainable values can be advanced. Positive culture also is improved accurately so that
sustainable values can be well maintained. Building culture is also a critical practice that has
facilitated to accomplish the standards (Boyd, 2017). Overall practice in terms of innovation can
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be advanced accurately so that key measures can be valued. Efficient working is also needed to
be promoted accurately so that sustainable values can be well maintained.
Swot of lean startup
Strength
 Company can have innovative practice
in terms of operation
 Time consumption of activities will be
balanced
Weakness
 Financial issues might be faced due to
high investment on lean startup
Opportunities
 Business can have improvement in
practice
 Issues in terms of work productivity
can be resolved
 New standards and operations can be
introduced
Threats
 Innovation in terms of technology
might affect the application
 Changes in trends may also force to
bring transformation
Business canvas model
The business model is the blueprint through which an alliance makes and gets the client driving
force to develop its focal points. Plans of movement should be returned to and changed by the
changing business conditions. There is a need for them to be adaptable to the market plans and
ecological powers (Seggie et al. 2017).
Key Partners
 Sharehol
ders
 Stakehol
ders like
investors,
employee
s, etc
Key Activities
 Identificati
on of team
 Analysis of
problem
 Generating
idea to
resolve
issue
 Applicatio
Value Proposition
 Work
productivity
improvement
 Cost control
 Innovative
involvement
in practice
 Standard
working
Customer Relationships
 Better support
can be offered to
customers
 Customer
relation
operation
standard can be
advanced.
Customer
Segments
Demographic
and
geographic
segmentation
can be
considered to
promote
practice
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n of
standards
and testing
promotion
 Time
allocation on
activities
improvement
Key Resources
Funds
Human resource
Channels
 Offline and
stores will be
setup
 Online booking
can be made on
stores
 Company
website
Cost Structure
Competitive pricing structure will be promoted adequately to
maintain standards.
Revenue Streams
 Commission
 Sales
 Rent of equipments to other
parties
 Hosting workshops
Recommendation for innovation strategy
Ways to organise innovation activities
 Company should frame team with support of external parties to have accurate
development and application of innovation activities. Role allocation must be accurate to
have better organizing.
Additional innovation capabilities
 Sharing of the idea must be accurate in order to meet the objective and promote
innovation. Flexible working need to be promoted in practice as additional capability.
Commitment must be accurate to have development of standards of innovation.
Innovation initiatives
 It is recommended that idea must be generated with a motive to promote sustainability. It
will assist in meeting the standards accurately so that long term values can be well
maintained.
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Ensure captures value
 It is suggested that team is having a consideration of objective properly so hat innovation
can provide better values. Monitoring process and steps will be employed.
Recommendation for strategic alignment
It is also suggested that building an effective team is also critical so that accurate working can be
promoted. It also provides an identification of key measures so that positive values can be
attained. Along with this, flexibility needs to be improved because it allows maintaining the
standards in an ethical manner. It reduces the risk factor in the application of standard and work
credibility.
Conclusion
As per the above study, it can be concluded that lean startup is being adopted by Volvo to have
continuous improvement in the practice. Lean startup is considered as a methodology that
permits having the working of the base for new organizations as indicated by the thought of a
business person's conviction. In this, different elements are being eluded by organizations to
guarantee that training application is precise. Volvo can have the application of innovation
strategy to meet the standards and promote the working.
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References
Bieraugel, M. (2015). Managing library innovation using the lean startup method. Library
Management, 36(4/5), 351-361.
Boyd, G. (2017). The Impact of Lean Startup Theory Upon Local Business Entrepreneurs.
Edison, H., Wang, X., & Abrahamsson, P. (2015, May). The lean startup: why large software
companies should care. In Scientific Workshop Proceedings of the XP2015 (p. 2). ACM.
Frederiksen, D. L., & Brem, A. (2017). How do entrepreneurs think they create value? A
scientific reflection of Eric Ries’ Lean Startup approach. International Entrepreneurship
and Management Journal, 13(1), 169-189.
Ghezzi, A., & Cavallo, A. (2018). Agile business model innovation in digital entrepreneurship:
lean startup approaches — Journal of Business Research.
Gutbrod, M., & Münch, J. (2018). Teaching lean startup principles: An empirical study on
assumption prioritization. In Proceedings of the International Workshop on Software-
intensive Business: Start-ups, Ecosystems and Platforms (Vol. 2018, pp. 245-253).
Harms, R. (2015). Self-regulated learning, team learning and project performance in
entrepreneurship education: Learning in a lean startup environment. Technological
forecasting and social change, 100, 21-28.
Levinthal, D., & Contigiani, A. (2018). Situating the Construct of Lean Startup:
Adjacent'Conversations' and Possible Future Directions.
Mansoori, Y. (2017). Enacting the lean startup methodology: The role of vicarious and
experiential learning processes. International Journal of Entrepreneurial Behavior &
Research, 23(5), 812-838.
Mansoori, Y., Karlsson, T., & Lundqvist, M. (2019). The influence of the lean startup
methodology on entrepreneur-coach relationships in the context of a startup
accelerator. Technovation.
Rasmussen, E. S., & Tanev, S. (2015). The emergence of the lean global startup as a new type of
firm. Technology Innovation Management Review, 5(11).
Seggie, S. H., Soyer, E., & Pauwels, K. H. (2017). Combining big data and lean startup methods
for business model evolution. AMS Review, 7(3-4), 154-169.
Singh, B. (2016). The Lean Startup: How Today's Entrepreneurs Use Continuous Innovation to
Create Radically Successful Businesses.
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Wang, X., Khanna, D., & Abrahamsson, P. (2016). Teaching lean startup at university: an
experience report. In International Workshop on Software Startups (IWSS) co-located with
22nd ICE/IEEE International Technology Management Conference.
Yang, X., Sun, S. L., & Zhao, X. (2019). Search and execution: examining the entrepreneurial
cognitions behind the lean startup model. Small Business Economics, 52(3), 667-679.
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