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The document discusses the concept of innovation, defining it as the continuous process of transforming creative ideas into valuable solutions that can lead to economic growth and social progress. It outlines various types of innovation, including incremental and disruptive innovation, and emphasizes the importance of implementing innovative solutions for business adaptability and competitive advantage. Additionally, it highlights the challenges companies face in innovation and the benefits of collaborative R&D in enhancing innovation through shared knowledge and resources.

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0% found this document useful (0 votes)
11 views17 pages

Sana 123

The document discusses the concept of innovation, defining it as the continuous process of transforming creative ideas into valuable solutions that can lead to economic growth and social progress. It outlines various types of innovation, including incremental and disruptive innovation, and emphasizes the importance of implementing innovative solutions for business adaptability and competitive advantage. Additionally, it highlights the challenges companies face in innovation and the benefits of collaborative R&D in enhancing innovation through shared knowledge and resources.

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ISMA, Informācijas sistēmu menedžmenta augstskola

Innovation Activity
Riga, Fall 2025

Professor: Viedocents S. Paramonovs

Group- 2130Z

Student name: Navjot Kaur


Innovation is defined as the process of bringing about new ideas, methods, products, services,
or solutions that have a significant positive impact and value. It involves transforming
creative concepts into tangible outcomes that improve efficiency, and effectiveness, or
address unmet needs.

Innovation is not limited to technological advancements and encompasses novel approaches to


problem-solving, processes, organizational practices,. At its core, innovation involves
challenging the status quo, thinking outside the box, and taking calculated risks to drive
progress and achieve breakthrough outcomes.
Innovation is driven by a combination of factors, including curiosity, creativity, and the desire
for improvement. It requires a mindset that embraces change, welcomes ideation, and
encourages experimentation. Innovation can occur in various contexts, such as business,
science, technology, social sectors, or public services. It can lead to economic growth, social
progress, improved quality of life, and sustainable development. (Jain, 2023)

Five characteristics of innovation


Continuous process :Innovation is not a one-time event but an ongoing, continuous process.
It involves consistently refining, improving, and adapting products, services, or processes to
meet changing customer needs, technological advances, and market conditions. This
continuous cycle allows organizations to stay competitive and relevant over time by evolving
their offerings instead of just relying on a single breakthrough. (Tidd, 2018)
Example:
Apple’s development of the iPhone is a great example of innovation as a continuous process.
Since the launch of the first iPhone in 2007, Apple has released multiple versions with
incremental improvements—better cameras, faster processors, new software features—
demonstrating ongoing innovation rather than a one-time invention.
Incremental Innovation: Incremental innovation involves making small, gradual
improvements to existing products, services, or processes. It focuses on enhancing efficiency,
features, or usability without altering the core structure. (Tidd, 2018)
Example:
Upgrading smartphone features such as better battery life, improved camera quality, or software
updates in each new iPhone or Samsung Galaxy model.
Radical Innovation:Radical innovation introduces fundamental changes that often replace
existing products or technologies. It creates new markets or reshapes industries by introducing
entirely new concepts. (Christensen, 1997)
Example:
IBM:
International Business Machines Corporation (IBM) holds a central position in the history of
personal computers. The introduction of the IBM Personal Computer (IBM PC) in 1981 set a
standard for both business and home computing. IBM’s strategic choice of open architecture
and third-party components significantly contributed to the broad acceptance of IBM-
compatible PCs.
Breakthrough innovation : Breakthrough innovation is sometimes used interchangeably
with disruptive innovation, while others define it as a distinct and noteworthy technological
advancement that significantly impacts the efficiency or cost of a particular product, service,
or process. Entrepreneurs navigate the intricacies of the innovation process and craft a roadmap
through strategic innovation strategy; they draw inspiration from diverse innovation
examples, embracing the challenge of breakthrough innovation and exploring avenues such
as adjacent innovation and radical innovation. This journey is guided by the careful
orchestration of the innovation lifecycle and the artistry of prototyping, all while uncovering
the well-guarded innovation secrets that propel transformative ideas into reality.
(https://digitalleadership.com, 2023)
Example:
Dyson Breakthrough Innovation
Dyson, the household name synonymous with cutting-edge vacuum technology, stands as a
testament to breakthrough innovation using new technology. From bagless vacuum cleaners
to bladeless fans, Dyson’s commitment to pushing technological boundaries has transformed
mundane household products into sleek, efficient, and groundbreaking solutions.
Relative advantages:The potential audience needs to see how your innovation improves from
previous generation products according to their current situation. Improvements can be made
in one or many of these areas:
• Alliance of multiple functions into one tool
• Better service
• Decreased need for equipment and supplies
• Improved interface
• Increased customizability, longevity
• Empowerment of users
• Reduced user effort, environmental impact
• Increased productivity
• Saving of time, money, space, and storage (https://www.fullestop.com/, 2023)
A simple example of innovation is typewriters being replaced by computer word-processing
programs. The relative advantage was obvious; these word programs didn’t require any extra
physical other than a personal computer; reduced the need for ink; documents could be edited
easily and files could be saved and transported to other computers using PDs, and disks. Soon,
typewriters were cleared out of offices replacing these computer word-processing programs.
Differentiate between incremental innovation and disruptive innovation. Give an example
of each and explain their impacts on industries.
Incremental innovation focuses on continually making existing products or services more
competitive by focusing on reducing costs and improving or adding features. Thanks to its low
level of uncertainty and risk it is by far the most popular form of innovation. It’s hard to go
wrong with incremental innovation.
One of the best incremental innovation examples is Google’s Gmail, the world’s most popular
email service. When first launched, Gmail had few features, but did one thing very well. It
delivered emails quickly, without lots of confusing ads. As time passed, Google introduced
many additional features and improved its service, making it faster and better. Since then, the
company has successfully emulated this method numerous times with their other products,
from Google Maps to the Chrome internet browser. Google rushes to get a simple product to
market in order to quickly stake out market share in emerging industries, then gradually
improves their offering, making it the best in the field.
But there are still dangers with incremental innovation – especially if this is your only method.
Take the business failure case study of Kodak, for example. Kodak led the photography
industry for years with incremental, yet steady improvements to traditional film. When the
disruptive innovation of digital imaging was introduced, it revolutionized the way people
captured, stored and used images – making Kodak obsolete. Had the company been willing to
invest time and effort in more disruptive innovations, perhaps it would have remained an
industry contender.
This brings us to disruptive innovation. It explores new technologies and as such is
characterized by a high level of risk and uncertainty. Ironically, disruptive innovation often
depends on incremental improvements, refinements modifications in complementary
technologies. Due to the high risk factor, smaller companies or start-ups usually play important
roles in disruptive innovation. On the positive side, you sometimes don’t need to compete for
market share with disruptive innovation, rather you branch off and create your own market.
And the eventual pay-off can often be spectacular – much greater than with incremental
innovation. The Uber example, provided above, is an excellent case of a disruptive innovation
strategy that paid off big.
Since it’s generally a complex, lengthy process, with big ups and downs, the criteria used to
evaluate a radical idea should not be the same as those applied to incremental innovations.
Whereas incremental innovation examples often have a formal, phase-gate development
model, disruptive innovation usually requires an informal, flexible model, especially in the
early stages, due to the many uncertainties. Viewing ideas associated with high uncertainty
from the perspective of mainstream business and traditional trajectories either gives a false
sense of security or leads to prematurely rejecting good ideas. You can switch to a more formal
model in the later stages, after these uncertainties have been minimized.
Summarize in your own formulation of the innovation
Innovation is the continuous process of turning creative ideas into practical solutions that bring
value. It can involve small improvements to existing products or services (incremental
innovation), or it can bring about entirely new ways of doing things that disrupt industries
(disruptive innovation). At its core, innovation is about progress—solving problems, meeting
changing needs, and creating better outcomes for businesses, customers, and society.

Problem-Solving Techniques
- Explain the SCAMPER technique and how it can be applied to improve an existing
product or service.
SCAMPER is a creative thinking and problem-solving tool designed to help individuals or
teams enhance or reinvent existing products, services, or processes. The technique prompts
innovative ideas through seven strategies:

Letter Meaning Description

Replace components, materials, or processes with


S Substitute
alternatives.

C Combine Merge two or more functions or ideas into one.

A Adapt Adjust a product for a different purpose or market.

Modify
M Alter the size, shape, or other attributes.
(Magnify/Minimize)

P Put to Another Use Find a new function for the existing product or idea.

E Eliminate Remove unnecessary elements or simplify.


Letter Meaning Description

R Reverse/Rearrange Change the order, layout, or process flow.

Application Example: Improving a Takeaway Food Container


• Substitute plastic with eco-friendly materials.
• Combine the container with built-in compartments for sauces.
• Adapt the design to serve both hot and cold meals.
• Modify the lid for better insulation and spill-proof sealing.
• Put to Another Use as a reusable lunch box.
• Eliminate extra packaging to reduce waste.
• Rearrange the compartment layout for improved space efficiency.
SCAMPER encourages systematic innovation by focusing on what can be changed or
reimagined in an existing idea. (Michalko, 2006)

- Discuss why is it critical for leading companies to elaborate and implement innovative
solutions?
It is critical for leading companies to elaborate and implement innovative solutions for the
following reasons:
1. It allows adaptability: The recent COVID-19 pandemic disrupted business on a
monumental scale. Routine operations were rendered obsolete over the course of a few
months. Many businesses still sustain negative results from this world shift because
they’ve stuck to the status quo. Innovation is often necessary for companies to adapt
and overcome the challenges of change.
2. It fosters growth: Stagnation can be extremely detrimental to your business. Achieving
organizational and economic growth through innovation is key to staying afloat in
today’s highly competitive world.
3. It separates businesses from their competition: Most industries are populated with
multiple competitors offering similar products or services. Innovation can distinguish
your business from others. (Boyles, 2022)
4. Respond to Market Changes:Customer needs and technologies evolve quickly.
Companies that innovate are better positioned to meet these changes and avoid
becoming obsolete.
5. Enhance Efficiency and Profitability:Process innovations reduce costs, improve
quality, and streamline operations—ultimately improving margins and productivity.
6. Foster Customer Loyalty and Market Expansion:Offering improved, customer-
focused solutions fosters loyalty and opens doors to new markets and customer
segments.
7. Attract and Retain Talent:Innovative environments appeal to top talent, encouraging
creativity and engagement within the workforce. (Tidd, 2018)

Innovation in Practice

Identify and explain three challenges businesses face when implementing innovative
solutions.

Impractical expectations for innovation: Imposing unreasonable expectations makes


individuals lose confidence. As a result, innovative outputs suffer. Sometimes, in innovation,
we sensationalize, overestimate, and overpromise an idea that generates an expectation
threshold that is difficult to meet.

For others, the problem often comes from the fact that under-promising may not help your team
obtain the traction you need among investors to secure a suitable investment to push your
innovation project through.While it’s a delicate, tricky choice between over- and under-
promising, being honest about the project’s possible risks — and preparing to meet them in
case — is a great countermeasure.

Unempowered innovation teams:Some innovation managers are concerned that innovation


would divert the attention of their workforce from their daily tasks and responsibilities.As a
result, some employees don’t feel equipped nor motivated to participate in the exploration of
new ideas or even in discussions related to the company’s innovation activities.Because of this,
they develop less regard for innovation objectives, which could possibly make them feel that
innovation should be the least of the organization’s priorities.

Lack of innovation strategies:Creating a coherent innovation plan is critical, just like any
other organizational endeavor. An innovation strategy directs the course of innovation, as well
as its practical execution. Without one, efforts to innovate risk becoming misaligned.A
considerable percentage of some corporate innovation projects appear to have been established
haphazardly without a defined innovation strategy in existence. Because of this, such projects
will only pique the attention of top management at first.However, because such efforts are not
tightly tied to company strategy, vital financing will soon run dry. It would then become
difficult to sustain the resources devoted to these projects unless its commercial benefit (ROI)
is demonstrated. (https://www.acceptmission.com, 2022)

Describe how collaboration within extended R&D enhances innovation. Provide a


relevant example.

Collaborative R&D involves partnering with external entities such as universities, research
institutions, and other companies. The main goal is to share knowledge, expertise, and
resources. The point is that many startups face resource constraints that don’t allow them to
access cutting-edge technologies. Meanwhile, effective collaboration allows businesses to
solve these challenges. Collaborative R&D prioritizes innovation and involves collective work
on the most promising ideas. After all, it offers a venture excellent opportunities to integrate
external inputs into the startup’s innovation processes.

Open Innovation is a practice that is based on collaborative R&D. In this case, a particular
innovation is not limited to a single company working on it. Instead of leaving ingenious ideas
behind closed doors, R&D specialists share them with external stakeholders. The main goal
here is creating a comprehensive community working on a particular innovation. Ideally, the
number of stakeholders contributing to the development of this innovation should grow over
time. For sure, such an approach brings startups many viable benefits:

A broader talent scope. One of the main advantages of implementing open innovation through
collaborative R&D is the ability to tap into a broader pool of knowledge and expertise. Most
startups operate with limited resources, which also limits their opportunities to tackle complex
R&D challenges. By partnering with external entities, startups can leverage specialized
knowledge and technological capabilities. In many cases, it goes about collaboration with
universities and research institutions. These entities can provide many talented specialists
willing to provide fresh input into the project. Collaborating with these institutions allows
startups to stay abreast of the latest developments in their field. In addition, open innovation
allows startups to access advanced research facilities. Finally, there is a priceless opportunity
to get insights from leading researchers and academics.
Cost savings. Collaborative R&D can significantly reduce the financial burden associated with
innovation. In many cases, R&D is an expensive endeavor. It requires hiring skilled
professionals, expensive equipment, and advanced technologies. Many startups cannot
overcome this barrier. As a result, they implement their ideas only partially or even leave them
unimplemented. By engaging in collaborative R&D, startups can share these costs with their
partners. In addition, they can use the equipment and talent of partner companies or institutions.
This factor makes such an approach more feasible for the most ambitious projects.
Furthermore, external partners may bring their own funding to the table, such as grants from
government agencies or investments from venture capital firms.

Accelerated innovation. One of the primary goals of open innovation is technological


progress. Collaborative research and development practices spur the development of new ideas.
In a traditional closed innovation model, the development of new products or technologies can
be slow due to the time required to build the necessary expertise and infrastructure internally.
Collaborative R&D engineering makes this process much faster. The point is in the number of
stakeholders contributing to the project. For example, a startup developing a new medical
device might collaborate with a university research lab. The lab will provide the necessary
equipment and expertise in biomedical engineering. As a result, the startup will have an
opportunity to bring its product to market more quickly. In rapidly developing industries, such
as healthcare, this speed can be a decisive factor in gaining a competitive edge.

Risk mitigation. Risk mitigation is a major benefit of open innovation. Collaboration allows
startups to manage uncertainties in research and development (R&D) projects. By working
with external partners, organizations can share the financial and technological risks. This
teamwork allows them to pool resources and expertise, improving project quality and reducing
the chance of failure. Partners bring different strengths that can fill gaps in the organization’s
knowledge or capabilities. There is also a significant benefit of shared responsibility. It means
that setbacks are less damaging because no single entity takes complete responsibility. In
addition, multiple perspectives can be useful for identifying and addressing risks early. Overall,
open innovation’s collaborative approach creates great opportunities for excellent risk
management.

Strategic partnerships. Open innovation fosters the development of strategic partnerships that
can lead to long-term collaborations and mutual benefits. Such a partnership is not limited to a
single project. On the contrary, it can expand over time, building the basis for many new ideas.
A successful collaboration allows both companies or institutions involved to increase their
visibility in the market. In some cases, such collaborations even lead to the emergence of great
corporations. Such cases are very frequent in the domain of video games. Larger companies
often partner with small and ambitious studios to help them grow and release new games
throughout the decades.

Enhanced flexibility. Flexibility is another crucial benefit of collaborative R&D efforts. The
point is that open innovation allows organizations to adapt swiftly to changing market
conditions and technological advancements. Businesses can quickly incorporate new ideas,
technologies, and processes without the need for extensive internal development. Fresh inputs
from partners allow companies to pivot and respond to emerging opportunities more efficiently.
For example, if a new technology emerges that can enhance a product or process, a company
practicing open innovation can partner with the technology’s developers. As a result, such
businesses can even become pioneers in integrating new technologies. This adaptability helps
maintain a competitive edge and ensures that the organization remains relevant in a rapidly
evolving market.

A culture of continuous improvement. Open innovation fosters a culture of continuous


improvement and learning. It encourages teams to remain open to new concepts and
methodologies. As a result, there emerge perfect conditions for creating and implementing new
ideas. The openness of this approach reduces the rigidity often associated with traditional R&D
approaches. Cross-company and cross-department communication helps businesses build more
complete perspectives on innovation. This includes both its implementations and associated
challenges. (MELNICHUK, 2024)

Example: A good example of the value of partnering is Novartis’s recently approved CAR-T
therapy that was developed in collaboration with the University of Pennsylvania. With these
and other successes, alliances are a necessity in the current market because the high cost of
innovation means firms want to spread the risk through partnering. Besides risk, innovation
requires an entrepreneurial culture that is far easier to grow and foster at an agile, smaller firm
than it is at a large, global firm that may be risk adverse and focused on cost-cutting.Partnering
also is crucial for clinical trial operations involving outsourcing to universities, research
hospitals, and CROs. While operating costs may be lowered, risks can potentially be increased,
leading to costly regulatory and legal fines if partners are not carefully chosen and managed.
While collaboration for innovation or cost-saving can be effective, there are a number of
challenges that need to be overcome to ensure a partnership or alliance will be effective. In
fact, these challenges are so strong that 60% of overall business strategic alliances fail,
according to a recent CMO Council report. Failing partnerships cause employee stress and
burnout. Great managers recognize the double-edged sword of alliances that are both critical
to success and a danger with the potential for serious harm. The result of not assessing soft
factors and choosing a poor partner negatively impacts firms in three critical areas: delayed or
lost revenue, financial losses due to fines or lawsuits, and reputational damage

Section B: Business Case


IKEA, a well-known European company, focusing on its current state, product/process relevant
to innovation, and the type of innovation it implements
Today, you can find a lot of successful innovation case studies, but you can learn best from
IKEA. Here’s why. Founded in Sweden in 1943, IKEA is a Swedish company that designs and
sells ready-to-assemble furniture and home accessories. It is known for its modern architectural
designs, as well as its attention to continuous product development, operational details, and
cost control.It operates more than 350 stores in around 50 countries which makes it the world’s
largest furniture retailer. In the 2014 fiscal year, the company generated a global revenue which
exceeded 31 billion USD

Figure 1: Traingle of Innovation Success.


IKEA is undoubtedly one of the world leaders in business innovation. It carries innovation deep
within its philosophy, constantly looking for ways to improve or come up with new service
propositions. The interest in its customer buying habits helps this company constantly improve
its levels of innovation. This is how IKEA managed to stay on top of innovation and continue
changing and adapting even after 70 years on the market.
IKEA excels in 3 basic aspects of innovation:
1. Communication
IKEA communicates widely about its innovation strategy, both with employees and customers.
It innovates with its core strength in mind – offering something appealing to everyone at a low
price, while maintaining good quality. It saves on costs through transportation and assembly
with its flat packaging.
2. Openness to new ideas and approaches to innovation
IKEA partners virtually everyone in developing its innovation strategy – from top management
to internal innovation experts. This is how it manages to apply innovation in everything it does,
not only in product development. In fact, IKEA is very popular for its innovative ways of
promotion and marketing. Popup advertising, popup lounge, storage balconies, and a moving
showroom are only some of the many innovations by IKEA.
3. Innovation management
IKEA has a well-defined organisational and governance structure to manage innovation.
Although innovation exists within every pore of the organisation, the founder Ingvar Kamprad
drives the entire innovation culture. All the changes related to innovation come directly from
the top management. Furthermore, IKEA has operative key performance indicators that
measure the innovation achievements and milestones. It has a well-established value system to
support innovation. (Shepherd, 2015)
Propose a hypothetical innovative solution - describe the idea in detail
Clearly define the innovation type and justify why it applies.
Choose one type of innovation from the following:
Incremental Innovation
Radical Innovation
Disruptive Innovation

Hypothetical Innovative Solution: “IKEA Modular Smart Home Kit”


Innovation Idea Description:IKEA Modular Smart Home Kit is a plug-and-play system that
allows customers to turn any space—apartment, office, or rental unit—into a smart, functional,
and affordable home environment. The product includes:
Modular Smart Furniture:Flat-pack furniture embedded with IoT sensors and voice
assistants (e.g., a table that tracks your posture or a sofa that adjusts lighting/temperature).
Plug-and-Play Smart Hub:Central control unit compatible with major platforms (Google,
Alexa, Apple HomeKit).
Energy & Water Monitoring Tools:Smart fixtures that measure consumption and suggest
savings (great for rentals or shared housing).
DIY Installation & IKEA App Integration:Use IKEA’s AR app to plan, scan, and activate
the smart setup with no professional installation required.
Subscription Upgrade Model:Customers can subscribe to add new functions (e.g., sleep
quality tracking or home security features).
Target Users:
• Urban millennials and Gen Z
• Students, renters, or young professionals
• Budget-conscious individuals looking for smart living solutions without construction
or complex setups
Innovation Type: Disruptive Innovation

Criteria Explanation

Offers smart home features at an affordable price, unlike premium


Low-cost entry point
competitors.

Accessible to new Targets users (e.g., renters, students) traditionally excluded from
markets smart home tech.

Simplified user DIY installation, modular setup, and AR integration eliminate


experience complexity.

Could shift smart home adoption from luxury homeowners to mass


Market transformation
consumers.

Disruptive innovation, as defined by Clayton Christensen, refers to an innovation that creates


a new market and value network, eventually disrupting and displacing existing market-leading
firms or products. This idea fits because it challenges high-end smart home systems by offering
a simpler, cheaper, and more accessible alternative. (Christensen, The Innovator’s Dilemma,
1997)
How IKEA could implement the “Modular Smart Home Kit” innovation, along with
benefits, challenges, mitigation strategies, and the overall transformation it brings. References
are included for credibility.
How IKEA Could Implement the Innovation
a) Required Resources
• R&D Investment:
o Develop IoT-enabled modular furniture components.
o Software development for the smart hub and mobile app (AR features, control
interface).
• Technology Infrastructure:
o Cloud computing for data storage and processing.
o Integration with existing smart home ecosystems (Google Home, Alexa, Apple
HomeKit).
• Manufacturing:
o Adapt flat-pack production lines to embed electronics.
o Quality control for tech components and furniture durability.
• Human Capital:
o Hire or collaborate with specialists in IoT, software engineering, UX/UI design,
and smart manufacturing.
• Customer Support:
o Train staff and create digital help resources for installation and troubleshooting.
b) Partnerships
• Technology Companies:
o Collaborate with IoT hardware providers (e.g., Qualcomm, Texas Instruments).
o Partner with voice assistant platforms for seamless integration.
• Startups and Innovators:
o Work with startups specializing in smart home tech or AR apps for innovation
acceleration.
• Universities and Research Institutions:
o Collaborate on R&D for sustainable smart materials and energy efficiency.
• Logistics Providers:
o Coordinate with supply chain and delivery partners to handle new tech
components safely and efficiently. (Tidd J. &., 2018)
Potential Benefits
a) Competitive Advantage
• First-mover in affordable smart modular furniture segment.
• Appeals to a new customer base: tech-savvy urban renters and young professionals.
• Strengthens IKEA’s brand as a technology-forward and sustainable company.
b) Sustainability
• Modular design promotes reuse and easy upgrades rather than full replacement.
• Energy monitoring features encourage efficient resource use.
• Aligns with IKEA’s climate-positive goals by 2030.
c) Enhanced Customer Experience
• Simplifies smart home adoption via easy installation and modular upgrades.
• Personalized living environments via IoT data insights (lighting, comfort, energy).
• Engages customers with IKEA’s digital ecosystem (app, AR planning). (Report, 2023)
Foreseeable Challenges and Mitigation Strategies

Challenge Mitigation Strategy

High initial R&D and Start with pilot programs in select markets; use phased
production costs rollouts to manage costs.

Offer extensive tutorials, customer support, and incentivize


Technology adoption barriers
early adopters.

Partner with specialized tech suppliers; invest in robust


Supply chain complexity
logistics and quality control.

Privacy and data security Implement strong data encryption and transparent privacy
concerns policies; comply with GDPR.

Integration with diverse Develop open APIs and partnerships for cross-platform
smart ecosystems compatibility.

How It Transforms IKEA’s Offering


• From Furniture Seller to Smart Living Provider:
Transitions IKEA from a traditional furniture retailer to a technology-enabled
lifestyle brand.
• Expands Market Reach:
Attracts tech-conscious younger demographics and renters, expanding IKEA’s
consumer base.
• Strengthens Sustainability Position:
Supports IKEA’s vision for circular economy and climate-positive impact through
modularity and resource efficiency.
• Differentiates Customer Experience:
Combines physical products with digital services, creating a connected and
personalized home ecosystem.
• Creates New Revenue Streams:
Subscription services for software updates, premium features, and modular upgrades.
(Christensen C. M., 2016)
Bibliography
Jain, N. (2023, July 15). https://ideascale.com. Retrieved from https://ideascale.com:
https://ideascale.com/blog/what-is-innovation/
Tidd, J. &. (2018). Integrating Technological, Market and Organizational Change (6th ed.).
Managing Innovation.
Christensen, C. M. (1997). The Innovator’s Dilemma:. : When New Technologies Cause Great
Firms to Fail. Harvard Business Review Press.
https://digitalleadership.com. ( 2023, December 28). Retrieved from
https://digitalleadership.com: https://digitalleadership.com/glossary/breakthrough-
innovation-definition/
https://www.fullestop.com/. (2023, June 01). Retrieved from https://www.fullestop.com/:
https://www.fullestop.com/blog/characteristics-innovation
Michalko, M. (2006). A Handbook of Creative-Thinking Techniques. Ten Speed Press.
Thinkertoys:.
Boyles, M. (2022, March 08). https://online.hbs.edu/. Retrieved from
https://online.hbs.edu/: https://online.hbs.edu/blog/post/importance-of-innovation-
in-business
https://www.acceptmission.com. (2022, March 22). Retrieved from
https://www.acceptmission.com/: https://www.acceptmission.com/blog/challenges-
of-innovation/
MELNICHUK, A. (2024, July 15). https://ncube.com. Retrieved from https://ncube.com:
https://ncube.com/guide-to-open-innovation-how-collaborative-rd-can-drive-
breakthroughs-in-your-startup
Shepherd, P. (2015, November 14). https://paulshepherd.co. Retrieved from
https://paulshepherd.co: https://paulshepherd.co/successful-innovation-case-study/
Christensen, C. M. (1997). The Innovator’s Dilemma. When New Technologies Cause Great
Firms to Fail.
Tidd, J. &. (2018). Integrating Technological, Market and Organizational Change. Wiley.
Managing Innovation:.
Report, I. S. (2023). Innovations for a Circular Future. IKEA.com. Innovations for a Circular
Future.
Christensen, C. M. (2016). Competing Against Luck. The Story of Innovation and Customer
Choice. HarperBusiness.

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