Soumi answered on
Aug 13 2020
Running Head: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 1
INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT 2
REPORT TITLE: INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
BUSINESS NAME: LEGO
UNIT NUMBER AND NAME: MGMT20132 INNOVATION AND SUSTAINABLE BUSINESS DEVELOPMENT
ASSESSMENT NUMBER: _____________________
GROUP STUDENT NAME: ____________________
The report discusses the organisational innovation strategy in context of Lego: toys manufacturing company and Robotic Automation as the innovation trend. It explores how the innovation strategy ensures strategic alignment within organisations and analyses possible impact of Robotic Automation on Lego using SWOT strategy tool. The biggest learning Lego had from the debacle in early 2000s was that employing any innovation strategy would not work. For success, it must remain close to its core product and evolve culture of innovation in the organisation.
Table of Contents
Executive Summary 2
Background of the company— LEGO 4
Innovation Trend: Robotic Automation 4
1. Organisation Environment and Innovation Trends 5
2. Their Relation with Innovation Strategy, Capabilities, Innovation Value-Creation and Capture 6
3. Innovation Strategy Alignment with Organisation 6
4. Analysing Impact of Robotic Automation on Lego through SWOT 7
5. Organising Innovation Strategy 10
6. Recommendations to best ensure Strategic Alignment for addressing Innovation Trend 10
The present study discusses the scope of Robotic automation as an innovation trend in the Lego company, and how it has contributed to leverage the innovation outlook in the organisation, with so much success that Lego, which once filed for the bankruptcy in early 2000s, became the Fo
es most valuable company by 2015.
Background of the company— LEGO
Lego Group is the Danish-based company, one of the biggest toys manufacturers, especially interlocking plastic
icks. It was founded in 1932 by Ole Christiansen. The word ‘Lego’ comes from a
eviation of Danish word “LEg GOdt”, which means “play well”. Since 1932 Lego group has been emphasising on high quality and safety, which is evident from their motto ‘Only the best is good enough’. Lego products has been based on the philosophy of development and learning through play. Lego
icks systems are positioned as the game, which has the potential to enhance creativity, as the
icks can be a
anged and rea
anged in innumerable combinations. All of Lego products are environmentally checked, so that they their disposal do not cause damage to the environment (Peacock, 2016).
Today, Lego group is called as the ‘Apple’ of toys industry and in 2015 was nominated by Fo
es as one of the most powerful
ands in the world. Lego sells at the rate of 7 boxes every second and there are more Lego “mini-figures” than there are real people in this world. From the state of bankruptcy in 2004 to the most powerful
and in 2015, Lego has redefined itself by rewriting the rules of innovation.
Innovation Trend: Robotic Automation
The factories of the future are changing with flexible, cheaper and capable technologies accelerating the development of fully automated production facilities. More robots are being used by the companies than real workers. For example, in Philips plant in the Netherlands, robots’ workers outnumbered production workers by about 15 to 1. This tendency of the modern production facility to phase out human workers is because of following benefits: firstly, it improves the quality and production efficiency. Secondly, robots can be used for dangerous and dirty jobs and it is cheaper to employ a robot than employing human workers, thus automation saves the cost for the organisation in the long-run (Eesley, Hsu & Roberts, 2014).
1. Organisation Environment and Innovation Trends
Every organisation follows their own working style, which is based on the forces or institutions su
ounding them. It includes all the internal and external environmental factors. Some of these external factors include: competitors, governmental policies, regulatory agencies, customers, suppliers, economic conditions, public opinion among others. The internal environment consists of factors, entities within the organisation, examples include, organisation’s culture, vision and mission statement, and leadership style (Walker, 2014).
In the 21st century, innovation has become the key ingredient for the firms to succeed and score above the competitors. The most innovation trends mean what are the new developments in the field of research and innovation. Some of the innovation trends include Augmented reality, Robotics, Internet-of-things, Artificial intelligence, Blockchain among others. Amidst all the innovation trends around, it is important for the firms to define their own innovation strategy and not blindly follow others.
As suggested by Gassmann, Frankenberger and Csik (2016), every organisation must follow certain guidelines— firstly, they should understand what innovation means in their environment because innovation is a collaborative process and not the result of lone individual. Secondly, it is important to focus on building the culture of innovation in an organisation’s...