The purpose of this thesis is to examine the potential impact of High Voltage Direct Current (HVDC) innovations on the power industry. A short historical review is provided on the so-called ‘War of the Currents’, which has placed alternating current (AC) as the dominant platform for power transmission. The revival of DC in high voltage transmission is here examined as a reverse salient, as various indicators show that the role of HVDC in the power industry seems to be constantly growing. In this thesis the potential of HVDC to drive industrial change is put to question, and an effort is made to define that change; questions are being addressed such as ‘how likely is HVDC to gain a more important role in power transmission, and what may that role be?’ and ‘how may the power market look like after a wider implementation of HVDC in power systems?’. The competition between ABB and Siemens (and at a lower level Alstom), market leaders in HVDC technologies, is analyzed with specific regard to the pursuit of inventing a HVDC circuit breaker; a technological leap that has been considered necessary for overcoming a number of obstacles to creating a DC grid. As of November 2012, ABB has developed the world’s first HVDC circuit breaker, acknowledged as a technological breakthrough. An attempt is being made to evaluate the impact of this innovation in terms of enhancing ABB’s entrepreneurial activity and granting the company with a competitive edge. Furthermore, the vision of developing DC grids – and thus R&D investments for the invention of a HVDC circuit breaker – is approached as a case of climate change being a main driving force for innovation, since this novel invention promises to make easier the integration of more renewable energy sources in power systems. This co-evolution of environment policy and innovation strategy is examined under the scope of Erik Dahmén’s theory of development blocks. Finally, ABB’s recent innovation is considered a disturbance in the system capable of bringing implications on the market that are here interpreted as a case of creative destruction, based upon Schumpeter’s terminology. In the conclusion section possible threats for Siemens and Alstom are also realized, and the need for them is questioned to go through changes in order to remain competitive, a situation that is here regarded as a case of transformation pressure.

Why do some large organizations succeed during transformations and others do not? This thesis aims to contribute and expand the discussion of how product development capabilities could enable success during transformations. To investigate the problem, a qualitative case study was performed at a large transport and truck incumbent, Scania CV AB. The transport and truck industry is currently pressured to transform, both from a competitive and sustainability perspective. In order to become more adaptable to change, the thesis identified the importance of clearly applying ambidexterity as a strategy to cope with challenges that the transformation implies. However, when applying ambidexterity, interface challenges between exploitation and exploration occur. Success during transformations is mainly dependent on the management to handle those interface challenges properly. This thesis identified two main managerial practices that could benefit incumbents in the transport and truck industry to become more adaptable during a transformation phase. Firstly, a clear strategy of how to manage innovations over time could support large incumbents to leverage innovations for optimal experimentation, scalability, and later profit. Secondly, clear organizational alignment between functions to enhance communication and prioritization especially between exploitative and explorative business activities could support large incumbents to leverage radical innovations within the organization. This thesis argues that implementing structural ambidexterity combined with a clear and streamlined innovation transfer process in three distinct horizons for mature, growth, and future businesses will increase adaptability during transformation pressure. As the main area of future research, this thesis proposes to further investigate the opportunities of an open innovation strategy that leverages partnerships for co-creation in an increasingly interconnected transport ecosystem. / Hur kommer det sig att vissa företag lyckas under industriell förändring och andra inte? Syftet med denna uppsats är att bidra till, och utvidga, diskussionen om hur kapabiliteter inom produktutveckling kan främja en lyckad transformation. För att undersöka problemet genomfördes en kvalitativ fallstudie på ett etablerat företag inom transport och lastbilsindustrin, Scania CV AB. Transportindustrin är för närvarande under stor press, både från ett konkurrens- och hållbarhetsperspektiv. Denna studie visar att, för att bli mer adaptiv och hantera förändring, är det av yttersta vikt att implementera en tydlig strategi för en tvehänt (ambidextrous) organisation. En av de största utmaningarna vid en sådan implementation är dock de starka spänningar som uppstår i gränssnitten mellan det operationella och det utforskande inom organisationen. Hur de hanterar dessa utmaningar från ett ledarskapsperspektiv, kommer därav vara en av de främsta faktorerna till om företaget lyckas anpassa sig till förändring. I studien har två grundläggande principer för ledarskap identifierats, vilka kan hjälpa etablerade företag inom transport- och lastbilsindustrin att bli mer adaptiva under förändring. För det första, en tydlig strategi för att hantera innovation över tid, kan stötta ett etablerat företag att optimera innovation, skalbarhet och vinst. För det andra, en tydlig organisations- och ledarskapsinriktning som lyfter kommunikation och underlättar prioritering mellan förvaltande och utforskande aktiviteter och avdelningar. Denna studie argumenterar för strukturell separering av organisationen, kombinerat med en process för att överföra innovationer. Detta kan åstadkommas genom en uppdelning på tre horisonter; mognad, tillväxt och framtid, vilket kommer att öka företagets anpassningsförmåga under förändring. Denna studie har avgränsats till att inte närmare undersöka hur partnerskap kan hanteras i det allt mer sammankopplade transportsystemet. Detta är dock identifierat som ett möjligt behov av att närmare undersöka hur strategier för open innovation kan främja partnerskap och samproduktion inom området.