Furthermore according to the findings a radical

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Furthermore, according to the findings, a radical innovation process might have anowner or conductor who knows the organization well and has a high level ofentrepreneurship skills. Such findings had an important implication to the VTEC Innovation
65Jam. It was hard to see if VTEC can own the full process since Volvo Technology has been abusiness unit among the Volvo Group function. One solution was if VTEC can take care ofthe discovery phase and after that the idea will be transferred to people in charge ofproducer, advocate or enabler model (Picture 37). Then it is crucial to see whether thetransfer can be done smoothly in situations that a business unit has not initiated it (notdemand driven). Consequently, in situation that the owner of the whole process will not beVTEC, it was found highly critical that Jams focus on a Market pull (demand driven)approach rather than technology push. That means creating an internal demand in VolvoGroup for radical innovation supply by understanding the unmet elements of potentialcustomers need. This method can later not only safeguard the transfer of ideas to otherbusiness units or areas in Volvo Group, but also affect the final commercial success ofradical innovations in the market.As a final point, sometime after the creation of a new line of business, firms shouldconsider either spin the new line of business off or integrate it into their organization whilebalancing the new business identity with integration already addressed. Such highlydepends on the firm’s corporate and business strategy asO’Connor et al., (2008) stated.Consequently, a firm like Volvo Group should consider a corporate business strategy toguide the mission of the group toward both operational excellence and new businesscreation (radical innovation).6.1 Discussion:Here, some reflection regarding radical innovation that might have theoretical andmanagerial reflections is going to be discussed.First of all, firms should believe that that radical innovation is alearning journeyratherthan a production event. It means that during the process of radical innovation firms mighthappen to learn a lot of new things that they were not aware of before. Therefore, it ishighly critical that firms employ right performance measurements metrics or KPIs: tomeasure the learning that occurs during their journey rather than the output (a newproduct or service). For instance, Davila et al., (2006) has proposed theInput, Throughputand Outputframework that can assist firms in measuring their process rather than outputs.Secondly, as it was argued in the introduction of this paper, radical innovation hasbecome a must for sustaining thelarge firm’s competitive advantages. However,understanding the capacity of a firm for radical innovationwill play a key role whetherideas with potential to be radical or not can turn into innovation. To determine that, humanresource and finance or budgeting departments’ role is crucial, since these two units are

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Term
Fall
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Tags
Volvo, Innovation Jams

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