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Overview Using the recommendation that you provided in Milestone One, you will develop a strategy to implement the innovation and get ahead in the marketplace. Scenario You work as a middle manager for one of the top U.S. producers of luxury and mass-market automobiles and trucks. You are now leading a cross-functional team to move forward with the company initiative. To remain a viable competitor and meet the demands of consumers’ desire for technology, the company’s chief technology officer (CTO) has decided to implement the internet of things (IoT) into its product line. In Milestone One, you and your cross-functional team looked at risks and benefits of each innovation option, competitors in the market, and the company’s internal capability for moving forward with the innovation. After doing this analysis, you presented your recommendation to various stakeholders about how to proceed. You chose one of the following: Design a completely new product line, based on the recent technology (discontinuous innovation)          or Add recent technology features into one model and then incrementally into the broader product line (incremental innovation) The CTO has accepted your recommendation. Now you are ready to develop a strategy for taking the innovation to market. In order to develop a strategy, you will need to look at your competitors’ relative strengths in the current marketplace, to understand how the company compares to your competitors, and to identify the total market and the market’s annual growth rate. Finally, you also need to share your thoughts on how to respond to changes in business conditions. Although no one can predict what is going to happen, it is important to think about how flexible your plan is in order to meet unexpected conditions. Prompt Using the recommendation you provided in Milestone One, develop a strategic plan to implement the innovation and gain competitive advantage. Use the Sales Forecast, Comparative Growth Data and Comparative Operating Statistics to complete this milestone. Strategic Plan Analyze the competitors’ relative strengths in the marketplace. Write a short paragraph describing the growth rate of each competitor. You will get the solution from the comparative growth data sheet. How much of the market does each competitor now own? Do you see a trend of gaining or losing market share? Present your findings using Power BI.Perform your analysis for the cars and trucks category. Create pie charts using columns C and F from the comparative growth Excel sheet in Power BI. Perform your analysis for the connected cars and trucks category. Create pie charts using columns H and K from the comparative growth Excel sheet in Power BI. Determine each competitor’s financial strength by looking at their comparative operating data. Explain how your company’s market share compares to your competitors’. Is your company gaining or losing market share? Expand on the analysis done in Task 1 above and explain the major factors behind the change in market share. What is your company’s growth potential in the industry? How do your company’s financials look compared to your competitors’? Identify future potential total available market (TAM) and growth for each chosen product/service and technology. What is the TAM for cars and light trucks? What is the TAM for IoT-connected cars and light trucks? What is the projected compound annual growth rate (CAGR) for cars and light trucks? What is the projected CAGR for IoT-connected cars and light trucks? Identify the fastest-growing competitor. Identify ways to adjust if business conditions change. What can you do if your customers are slow to respond (buy) the innovation? What can you do if one competitor is overtaking all the others, including your company? Describe the steps your company needs to take from concept outline to launch. Consider your learning from the previous two modules to ensure the steps are easy to understand for your team. What is the size of development that will be required? Will you require additional capital and personnel? How would you approach determining the timeline from the beginning of development until initial product launch? Guidelines for Submission Strategic Plan Submit a Word document of 5 pages, devoting 1 page to each critical element described above. Include a graphic using Power BI for competitors’ relative strengths (p. 1). Place the graphic at the top of the page with bullets underneath. Sources should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations. Power BI on VDI Access VDI using the VDI log-in process. Open Power BI in VDI and access the MBA 580 Comparative Growth Excel sheet. Save your charts as images in the OneDrive folder on VDI. Follow the MBA 580 Power BI User Manual for completing these steps. MBA 580 Power BI User Manual Introduction 1 Accessing Power BI via the VDI 1 Importing Files to Power BI 2 Working on the Module Six Milestone Two Assignment 4 Creating a Pie Chart 4 Exporting Files from Power BI 8 Uploading Image Files to OneDrive 10 Introduction Power BI is a tool that enables its users to visualize data and present it in a manner that is easy to understand and analyze. Accessing Power BI via the VDI 1. Open the virtual desktop interface (VDI) on your machine. 2. On the VDI home screen, select Power BI Desktop. The Power BI homepage is displayed. Importing Files to Power BI Once Power BI opens, close out of any message windows that may pop up. On the Power BI homepage, to select the type of file you want to import: 1. Go to File, then choose Get Data, and then choose Text/CSV. Note: For the steps to access Power BI via the VDI, refer to Accessing Power BI via the VDI. The Open window is displayed. 2. Go to Desktop, then click on Business Analytics Course Content Folder, and then choose MBA-580. Select the CSV file to be imported and click Open. The preview window with the data set content is displayed. 3. Click Load. The data is imported in Power BI. You can now perform your analysis. Working on the Module Six Milestone Two Assignment In MBA 580, you will access Power BI using the VDI in the Module Six Milestone Two assignment. In this assignment, you will create four pie charts and perform your analysis. Creating a Pie Chart 1. Access Power BI and import the required CSV file. Note: To learn the process for importing files into Power BI, refer Importing Files to Power BI. 2. In the right pane, under Visualizations, click the pie chart icon. In the center pane, the pie chart placeholder is displayed. Note: To view the name of the icon, place your cursor over the icon. For example, to view the name pie chart, place your cursor over the following icon. 3. Using the resizing tool, resize the pie chart placeholder so that it fits the screen. The placeholder is resized. You can now move ahead and plot the pie chart per the required attributes. 4. To add an attribute, in the right pane, under Fields, drag an attribute and place it under Visualizations in Legend, Details, Values, or Tooltips. For example, let’s move the attributes Markets and Competitors and Market share percentage for cars and trucks now from Fields to Legend and Values in Visualizations. This will provide us with the pie chart for analyzing the existing market share of cars and trucks category for the companies VW, Toyota, BMW, and your car company. The fields are then displayed in the boxes under the Legend and Values, under Visualizations. 5. After moving the two attributes, the pie chart is displayed in the center pane. Similarly, plot the pie chart for market share percentage for cars and trucks in 2030 and compare the two pie charts displaying the market share percentage for cars and trucks now and the market share percentage for cars and trucks in 2030. Later, plot the pie charts for market share percentage for connected cars and trucks now and market share percentage for connected cars and trucks in 2030. On plotting the pie charts, compare them and write your analysis. Exporting Files from Power BI Note: We cannot export an individual file from Power BI in the VDI. All graphs can be exported all at once. You can later take the screenshots from the downloaded file to add to your assignments. 1. In the upper left corner of the virtual desktop interface (VDI) screen, click File. 2. In the displayed list, select Export and then Export to PDF. 3. The charts are opened in one PDF document. 4. Take a screenshot of the chart pages and save it in the VDI. Once the screenshots are taken, you can upload them to OneDrive. Uploading Image Files to OneDrive 1. In the VDI, open the OneDrive-SNHU application. The Google Chrome browser is opened and the OneDrive login page is displayed. 2. Enter your SNHU login ID email and click Next. The Password page is displayed. 3. Enter your SNHU password and click Sign in. The OneDrive user homepage is displayed. 4. In the top pane, click + New. 5. In the displayed list, click Folder. The Create a Folder dialog box is displayed. 6. Enter a name for the folder and click Create. The new folder is created and displayed in OneDrive. 7. Open the new folder. 8. In the top pane, click Upload. 9. In the displayed options, select Files. The Open window is displayed. 10. Navigate to the saved graphs image files. Select them and click Open. The image files are uploaded to OneDrive. A success message indicating successful upload of the files is displayed. 2 Sales Growth of Whole Market Year 0 1 2 3 4 5 6 7 8 9 10 Your Company 187.1 192.9001 198.8800031 205.0452831961 211.4016869752 217.9551392714 224.7117485888 231.6778127951 238.8598249917 246.2644795665 254.2 BMW 126.1 130.7657 135.6040309 140.6213800433 145.8243711049 151.2198728358 156.8150081307 162.6171634315 168.6339984785 174.8734564222 181.5 Toyota 275.4 286.1406 297.3000834 308.8947866526 320.9416833321 333.458408982 346.4632869323 359.9753551227 374.0143939724 388.6009553374 404.5 VW 282.9 295.0647 307.7524821 320.9858388303 334.7882299 349.1841237857 364.1990411085 379.8595998762 396.1935626708 413.2298858657 433.1 Sales Growth of the Whole Market Your Company 187.1 192.90009999999998 198.88000309999995 205.04528319609994 211.40168697517902 217.95513927140956 224.71174858882324 231.67781279507673 238.85982499172408 246.26447956646751 254.2 BMW 126.1 130.76569999999998 135.60403089999997 140.62138004329995 145.82437110490204 151.21987283578341 156.81500813070738 162.61716343154353 168.63399847851062 174.8734564222155 181.5 Toyota 275.39999999999998 286.14059999999995 297.30008339999995 308.89478665259992 320.9416833320513 333.45840898200129 346.4632869322993 359.97535512265893 374.01439397244258 388.60095533736779 404.5 VW 282.89999999999998 295.06469999999996 307.75248209999995 320.98583883029994 334.78822990000282 349.18412378570292 364.19904110848813 379.85959987615308 396.19356267082765 413.22988586567322 433.1 Sales Growth Connected Veh. Mar Year 0 1 2 3 4 5 6 7 8 9 10 Your Company 3.8 4.1876 4.6147352 5.0854381904 5.6041528858 6.1757764802 6.8057056812 7.4998876606 8.264876202 9.1078935746 10.11 BMW 1.6 2.008 2.52004 3.1626502 3.969126001 4.9812531313 6.2514726797 7.8455982131 9.8462257574 12.3570133255 15.67 Toyota 4.8 5.9904 7.4760192 9.3300719616 11.6439298081 14.5316244005 18.1354672518 22.6330631302 28.2460627865 35.2510863576 43.97 VW 8.4 10.3488 12.7497216 15.7076570112 19.3518334378 23.8414587954 29.3726772359 36.1871383546 44.5825544529 54.925707086 67.3 Sales Growth Connected Vehicle Market Your Company 3.8 4.1875999999999998 4.6147352000000001 5.0854381904000006 5.6041528858208007 6.1757764801745232 6.8057056811523253 7.499887660629863 8.2648762020141096 9.1078935746195491 10.11 BMW 1.6 2.008 2.5200399999999998 3.1626501999999994 3.9691260009999989 4.9812531312549986 6.2514726797250226 7.8455982130549025 9.8462257573839018 12.357013325516796 15.67 Toyota 4.8 5.9904000000000002 7.4760192000000005 9.3300719615999999 11.6439298080768 14.531624400479847 18.13546725179885 22.633063130244967 28.246062786545718 35.251086357609054 43.97 VW 8.4 10.348800000000001 12.749721600000001 15.7076570112 19.351833437798401 23.841458795367629 29.372677235892919 36.187138354620075 44.582554452891934 54.925707085962863 67.3 Option A for Innovation Year 0 1 2 3 4 5 6 7 8 9 10 Sales Traditional 183.3 188.7125 194.2652679 199.9598450057 205.7975340894 211.7793627912 217.9060429077 224.1779251344 230.5949487897 237.1565859918 244.09 Sales Connected 3.8 4.1876 5.2345 5.768419 7.21052375 9.0131546875 11.2664433594 14.0830541992 17.603817749 22.0047721863 27.5059652328 Total Sales 187.1 192.9001 199.4997679 205.7282640057 213.0080578394 220.7925174787 229.172486267 238.2609793337 248.1987665387 259.1613581781 271.5959652328 Gross Margin Traditional 27.495 28.306875 29.139790185 29.9939767509 30.8696301134 31.7669044187 32.6859064362 33.6266887702 34.5892423185 35.5734878988 36.6135 Gross Margin Connected 0.798 0.879396 1.099245 1.21136799 1.5142099875 1.8927624844 2.3659531055 2.9574413818 3.6968017273 4.6210021591 5.7762526989 Total Gross Margin 28.293 29.186271 30.239035185 31.2053447409 32.3838401009 33.6596669031 35.0518595416 36.584130152 38.2860440458 40.1944900579 42.3897526989 R&D and Capital Costs 4.1 4.133 1.16699 1.2019997 1.238059691 1.2752014817 1.3134575262 1.352861252 1.3934470895 1.4352505022 1.4783080173 Notes: Your company grows connected cars at 10.2%/year for 2 years, then grows connected cars at 25%/year. Your company grows traditional cars at industry growth rate of 4.1 %/year. Margin for connected cars: 21%. Margin for traditional cars: 15%. Numbers shown in billions. There are two additional R&D costs for this option in year 0 and year 1. Option B for Innovation Year 0 1 2 3 4 5 6 7 8 9 10 Sales Traditional 183.3 188.7125 194.2652679 199.9598450057 205.7975340894 211.7793627912 217.9060429077 224.1779251344 230.5949487897 237.1565859918 244.09 Sales Connected 3.8 4.1876 4.6147352 5.0854381904 5.6041528858 6.1757764802 6.8057056812 7.4998876606 8.264876202 9.1078935746 10.11 Total Sales 187.1 192.9001 198.8800031 205.0452831961 211.4016869752 217.9551392714 224.7117485888 231.6778127951 238.8598249917 246.2644795665 254.2 Gross Margin Traditional 27.495 28.306875 29.139790185 29.9939767509 30.8696301134 31.7669044187 32.6859064362 33.6266887702 34.5892423185 35.5734878988 36.6135 Gross Margin Connected 0.798 0.879396 0.969094392 1.06794202 1.176872106 1.2969130608 1.429198193 1.5749764087 1.7356240024 1.9126576507 2.1231 Total Gross Margin 28.293 29.186271 30.108884577 31.0619187708 32.0465022194 33.0638174795 34.1151046292 35.2016651789 36.3248663209 37.4861455494 38.7366 R&D and Capital Costs 1.1 1.133 1.16699 1.2019997 1.238059691 1.2752014817 1.3134575262 1.352861252 1.3934470895 1.4352505022 1.4783080173 Notes: Your company grows connected cars at 10.2%/year. Your company grows traditional cars at industry growth rate of 4.1 %/year. Margin for connected cars: 21%. Margin for traditional cars: 15%. R&D and Capital Costs grow at a rate of 3%. in Markets and Competitors Annual Cars & Light Trucks Revenue in 2020 (billions) TAM Market share percentage for cars and trucks now Projected CAGR over the next 10 years Projected revenues in 2030 (billions) Market share percentage for cars and trucks in 2030 Global Market for Connected Cars & Light Trucks (billions) TAM Market share percentage for connected cars and trucks now CAGR over next 10 years Projected Conencted Car Revenues (billions) in 2030 Market share percentage for connected cars and trucks in 2030 Global $ 3,227.70 100% 4.10% $ 4,810.0 100% 53.9 100% 25.20% $ 510.07 100% Your Company $ 187.10 5.80% 3.10% $ 254.2 5.28% 3.83 7.10% 10.20% $ 10.11 1.98% BMW $ 126.10 3.91% 3.70% $ 181.5 3.77% 1.62 3.00% 25.50% $ 15.67 3.07% Toyota $ 275.40 8.53% 3.90% $ 404.5 8.41% 4.80 8.90% 24.80% $ 43.97 8.62% VW $ 282.90 8.76% 4.30% $ 433.1 9.00% 8.36 15.50% 23.20% $ 67.30 13.19% Note for student: Projected Global revenue for in-car connected services by 2030: $81.1 Billion in in billions USD Your Company VW BMW Toyota Revenue 187.1 282.9 126.1 275.4 Operating Income 5.7 20.5 9 22.5 Net Income 0.9 16.1 6.1 19.7 Assets 310 590.6 275.9 484.7 Liabilities 270.2 443.2 203.4 293.9 Equity 39.9 147.4 72.5 190.8 Number Employees 190,000 304,174 133,778 359,542 Notes: 1 Euro = 1.21 USD 1 Yen = 0.0094 USD 0.0092 references: Full Speed Ahead To The Future. 2019 Annual Report". Volkswagen Group. 17 March 2020. Retrieved 17 March 2020. converstion rages via Morningstar Annual Report 2019" (PDF). BMW Group. Retrieved 19 March 2020. Toyota Annual Report 2020" (PDF). Toyota Motor Corporation. May 12, 2020. Ford Motor Company 2019 Annual Report (Form 10-K)"(PDF). sec.gov. U.S. Securities and Exchange Commission. January 2020. Note: numbers disguised by multiplying by 1.12 except for operating income multiplied by 10 and net income multiplied by20 Incremental or Discontinuous Innovation MBA 580 By: Johnathon Blake Davis Option A and B Business problem: Connected cars will become of greater demand in the future. Option A: Incremental Innovation Option B: Discontinuous Innovation Option A Two benefits of option A: Increase product diversification Protect the current business model Two risks of option A: Lack of coordination Time risk/reward related to demand Option B Two benefits of option B: - Securing the competitive advantage Increased market share/profitability Two risks of option B: Unknown demand of the new product Production cost that could potentially outweigh profit Competitors BMW: navigation, emergency services, smart house connectivity Functionality emphasis: vehicle control/safety, IFTTT-customized applications and IoT connectivity, LTE Toyota: navigation, emergency services, social media Functionality emphasis: vehicle control, social media, safety, entertainment, navigation, 5G Volkswagen: navigation, emergency services, consumer orders, maintenance status Functionality emphasis: vehicle control, maintenance, in-car consumer experience Competitors BMW: Projection of fully autonomous vehicles in the next 12 years. -5-10-year plan: fully integrated information system, semi-autonomous driving, connection to traffic information systems, introduction of fully autonomous driving early 2030s Toyota: Social media in Japan and expectation of of implementing in US markets with 5G capability. -5-10-year plan: fully integrated information system; semi-autonomous driving; connection to traffic information systems, expanded social media, and communications; consumer services; maintenance; fully autonomous vehicle early 2030s Volkswagen: Same forecast as us. They have partnered with Microsoft to try and ease ahead of competition. -5-10-year plan: fully integrated information system; semi-autonomous driving; connection to traffic information systems; connectivity with smart home; fully autonomous vehicle early 2030s Partial Gap Analysis We have some connectivity regarding the technology – driver apps, OnStar, detect accidents, and alert first responders. Most of the technology will need to be purchased to gain market share. The 10 best automotive technologies of 2021: Advanced driver assistance, emergency braking, mobile app connection, teen driver, exit warnings, wireless charging, 360-degree camera, video rearview mirror, stole vehicle software, blind-spot monitor (https://www.kbb.com/awards/best-car-technologies/) Partial Gap Analysis Available for purchase: Wireless charging 360-degree camera Video rearview mirror Navigation Wireless Bluetooth connectivity Parking sensors Push to start button Vehicle start from remote key Apple Carplay Innovation Approach The Incremental Innovation approach would be the best option for the company moving forward. Reason 1: Introducing a new product into the automotive industry isn’t a good idea. Reason 2: The reward outweighs the risk. Sales forecast/financial snapshot Sales: Gross Margin: Option A - Sales Sales Traditional 183.29999999999998 188.71249999999998 194.26526789999994 199.95984500569995 205.79753408935821 211.77936279123503 217.90604290767092 224.17792513444687 230.59494878970997 237.15658599184798 244.08999999999997 Sales Connected 3.8 4.1 875999999999998 5.2344999999999997 5.7684189999999997 7.2105237500000001 9.0131546875000002 11.266443359375 14.083054199218751 17.603817749023438 22.004772186279297 27.505965232849121 Option A - Gross Margin Gross Margin Traditional 27.494999999999997 28.306874999999994 29.139790184999988 29.993976750854991 30.86963011340373 31.766904418685254 32.685906436150638 33.626688770167029 34.589242318456492 35.573487898777195 36.613499999999995 Gross Margin Connected 0.79799999999999993 0.87939599999999996 1.0992449999999998 1.2113679899999998 1.5142099874999999 1.892762484 3749999 2.3659531054687499 2.9574413818359373 3.6968017272949218 4.6210021591186523 5.7762526988983156 References January 1, 2021. KBB Editors. https://www.kbb.com/awards/best-car-technologies/ Carroll, Andrew. Oct 23, 2019. https://innotechtoday.com/top-10-connected-car-features/ Hard, Andew. Nov 19, 2017. https://www.digitaltrends.com/cars/10-car-technologies-to-be-thankful-for/