Fluent Essays

Competencies In this project, you will demonstrate your mastery of the following competency: Evaluate creative and innovative organizational structures Recommend alternative innovations to solve an internal or market need Implement creative and innovative processes within an organization Scenario You work as a middle manager for one of the top U.S. producers of luxury and mass-market automobiles and trucks. The chief technology officer (CTO) of the company from the course scenario has been watching new technology developments that the company could integrate into its vehicles to enhance the usefulness of and access to the data acquired by the many digital sensors that have been integrated into vehicle subsystems over the past 20–30 years. The technology trend of particular interest is the internet of things (IoT)—the interconnection of embedded devices, such as sensors and computers, over the internet. By taking advantage of this trend, the CTO believes the company can seize an opportunity to provide better service and predictive maintenance to its customers, improving customer satisfaction and adding additional revenue streams. Based on briefings by the CTO, senior management has decided to implement IoT in its product line. Your CTO has asked you to lead a cross-functional team to take this initiative forward. Your first task is to make a recommendation for how the company should approach this business problem. Do you recommend using incremental or discontinuous (that is, slow or fast) innovation? Specifically: Should the company... Design a completely new product line, based on the new technology (discontinuous innovation)            or Add new technology features into one model and then incrementally into the broader product line (incremental innovation) The recommendation you and your team make is an important first step in pursuing this new technology. In Milestone One, you and your team defined what that innovation looked like: would it be disruptive (new product line) or incremental (new features in one existing product)?  In Milestone Two, you developed a strategy plan and a high-level business model. You’ve shared these with various stakeholders, and they are in agreement with your assessment of how best to get to market with this IoT innovation, which will allow the company to be competitive.  Now, the CTO has asked you to come up with a proposed organizational structure that will support the innovation implementation. In this way, you will be assisting in making the innovation sustainable for the company from the course scenario. Companies that are innovative must make sure they have structured the organization in a way that supports innovation, and a key component of innovation is keeping track of what their customers want in terms of products and services. Directions Complete each of the three parts of this project. Use your slides from Milestone One, your document from Milestone Two, and feedback on Milestone One and Milestone Two to complete the first two parts of your presentation. You can use the resources in the Supporting Materials section (below) for any other information you will need to complete your project. Part One: Innovation Approach In this section, share your revised slides from Milestone One and make your recommendation for the innovation approach you think the company should pursue. Ensure this section includes the following information:  Explain potential risks and benefits for options A and B. Overview (1 slide): Present the business problem and options A and B. Option A (1–2 slides): Explain at least two potential risks and benefits for option A. Option B (1–2 slides): Explain at least two potential risks and benefits for option B. Compare your competition’s products and services. Competitors: (3–4 slides): Evaluate the competitors’ current products and services. What are your competitors' current products and services? Are your competitors expanding in the current market? Explain how this impacts their market strength. Analyze your company’s capability to pursue the innovation. Complete a partial gap analysis (2 slides): Does the company own the technology, or does it need to be purchased? How is the technology currently being used in today’s products and services? What type of technology is available to purchase? Recommend the innovation approach your company should pursue. Innovation Approach (2 slides): Explain which innovation approach you are recommending and why. Consider the different stakeholders (research and development [R&D], marketing, finance) while communicating your recommendations. Include a description of the incremental or discontinuous product that you are recommending for R&D. Include the sales forecasts for marketing. Include a financial snapshot for finance. Part Two: Strategic Plan In this section, share your revised paper from Milestone Two, which provides an overview of your competitors’ position in the marketplace, the available and future marketplace, and a plan for how to address a change in business conditions. Ensure this section includes the following information. Analyze the competitors’ relative strengths in the marketplace. Use Power BI to create charts on the growth rates.  What is the growth rate of each competitor?  How much of the market does each competitor now own? Do you see a trend of gaining or losing market share?  Determine each competitor’s market strength by looking at the financials for each competitor.  Explain how your company’s market share compares to your competitors’. Use Power BI to create charts on your and your competitors’ market share. Is your company gaining or losing 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 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 CAGR for IoT-connected cars and light trucks? 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 you? Describe the steps your company needs to take from concept outline to launch. 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? Part Three: Organizational Structure and Culture Report Based on your analysis of the organization’s structure and culture, share recommendations for changing its structure and culture to be more conducive to innovation. Describe the current organizational structure’s impact on innovation. How does your company’s organizational structure support innovation? How effective is the current structure in addressing changes in market demand? Recommend changes to the current organizational structure. How does the new structure support innovation? How will your recommended changes make the enterprise more responsive to market demand? Explain how organizational changes support a culture of innovation. In what ways does the current culture work against innovation? How does the new structure support a culture of innovation? What to Submit To complete this project, you must submit the following three items: I. Innovation Approach Presentation Submit a 10- to 13-slide PowerPoint presentation with detailed speaker notes that highlight the important points you want to emphasize to senior management on your recommendation for an innovation approach. Use the feedback you received on Milestone One to revise your original presentation. If you include references, they should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations. II. Strategic Plan Report Submit a Word document of 5–8 pages, devoting 1 page to each critical element described above in Part 2 along with an introduction and a short executive summary. Use the feedback you received on Milestone Two to revise your original report. Sources should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations. III. Organizational Structure and Culture Report   Submit a 5- to 8-page Word document using 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations.  Supporting Materials The following resources support your work on the project: CTO Brief Use this to understand the importance of connected cars to your company and its product offerings. This resource also describes incremental innovation and discontinuous innovation options.  Comparative Product Plans Use this to understand the current product offerings of your company and three of its competitors.  Comparative Growth Data This provides current market share and revenue data for your company and three of its competitors. Projections for 2030 are also provided.  Comparative Operating Statistics This provides financial data including net income and assets for your company and three of its competitors.  Organization Overview This describes the organizational structure and some aspects of the culture of your company. 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 2 Milestone Two: Strategic plan ALEXANDER APANYIN MBA 580 6-1 MILESTONE 2 STRATEGIC PLAN Strategic Plan Innovation is one of the keys to growing a business and expanding its seriousness to be remembered for the essential arranging measure. It can assist with further developing efficiency, lessen costs and become more beneficial. Since little to medium sized organizations typically aren't as equipped for profiting from economies of scale similarly that enormous organizations can, the capacity to advance turns out to be considerably more significant. In organizations where nobody is exclusively answerable for it, development may not be treated as a main concern. Another motivation behind why more modest organizations might choose not to focus on development is that they frequently have less assets available to them contrasted with enormous partnerships with isolated advancement units and labs. As Etheridge (2014) asserts idea of development is regularly depicted as questionable in light of the fact that it's hard to tell ahead of time which thoughts will be the most productive. Additionally, these benefits can require a long time to be acknowledged, which is the reason organizations with restricted assets choose to put resources into drives that are seen safer and create quicker outcomes (Etheridge, 2014). Nonetheless, on the off chance that we take a gander at new businesses, we can see that ideation and execution don't need to cost a fortune. In this, I'll shed some light on the best way to accomplish an upper hand through development without accomplishing a lot of work. Make advancement a piece of methodology and cycles Development can't and ought to not be rethought. All things being equal, it ought to begin inside the organization. Little or fair-sized associations frequently enhance by rolling out little improvements to work on their tasks. Organizations that can make development a ceaseless practice by incorporating it into the genuine methods of working have a vastly improved shot at succeeding now and later on (Etheridge, 2014). Albeit adjusting development to the organization's design probably won't be the most straightforward of errands, focusing on the accompanying viewpoints can assist with making advancement a piece of your procedure and methods of working: Choose essential objectives. Incorporating development with the procedure and cycles starts with characterizing the drawn-out objectives and breaking them into more modest ones (Glenn, 2021). When the organization realizes what to accomplish over the long haul, it's significantly simpler to adjust transient development objectives to help that vision. Build measures. To make things run as expected by and by, consistent joining into the methods of working is the key. The most ideal approach to do that is to assemble a cycle for overseeing thoughts (Glenn, 2021). A legitimate thought the board interaction ought to incorporate every one of the stages from thought age to improvement and execution. It should uphold your current business measures and just spotlight on what's fundamental. Measure methodically. The most ideal approach to urge wanted conduct is to gauge it. Start straightforward and select a couple of supporting measurements on the organization and individual level (Glenn, 2021). Adjusting the development measurements to the higher perspective is extraordinary compared to other approaches to guarantee the organization is really doing what's necessary of the right things. Rather than periodic development crusades, continually estimating the organization's advancement will assist with making development a ceaseless practice. Put the right instruments set up. Utilizing the right apparatuses helps in overseeing development when the realizes what to accomplish, and having an unmistakable cycle for it. To have the option to viably accumulate and foster novel thoughts, contemplate whether your current apparatuses can assist you with accomplishing your objectives (Glenn, 2021). If not, search for an appropriate arrangement that meets your necessities. Make a supportive of development culture Having procedures, cycles, and devices is incredible, however these by themselves will not get development going. The capacity to develop a mentality of development and shape your way of life to help advancement is pretty much as significant as the right instruments and cycles (Bryson & Alston, 2015). Culture is the aggregate manner by which things complete in your organization. While making a culture helpful for development, you should think about the accompanying angles: Communicate mission. Ensuring representatives know what should be finished by imparting mission and assumptions unmistakably (Bryson & Alston, 2015). Rather than saying: "We should do this", clarify the thinking behind the choices and attempt to inspire workers by causing them to feel what they do is a significant piece of the master plan. Zeroing in on engaging individuals and considering them responsible for their work and choices. Clarify and build up qualities. Shared qualities are the main thrust behind any culture. In any case, an organization's ideal qualities are frequently unique contrasted with the qualities practically speaking, which is the reason the organization needs to move toward them basically. Are these really the qualities expected to build up it (Bryson & Alston, 2015). Remember that when encouraging a culture of development, conveying aggregate qualities isn't sufficient if individual qualities aren't lined up with them. In this way, attempting to enlist for social fit and focus on characteristics that affect the whole workplace. Improving on abilities. While recruiting for social fit, don't disregard relationship building abilities. Without important abilities, executing thoughts turns into a test (Bryson & Alston, 2015). Ensuring having gifted individuals on all levels of the association, as a talented labor force can truly assist an association with improving and develop. Empowering learning and supporting nonstop close to home improvement help the organization's operability. Innovation is tied in with working on a business. It's significant on the grounds that it can assist the association with turning out to be more aggressive and key (Bryson & Alston, 2015). The previously mentioned angles make a decent beginning stage in case it is searching for approaches to expand advancement inside your group or the whole association. The most ideal approach to begin is by explaining the objectives and imparting them obviously to every individual who will be associated with the cycle (Bryson & Alston, 2015). When the organization has known what it needs to accomplish with advancement, executing the arrangement practically speaking starts. Incorporating development into the organization's methods of working is frequently the simple aspect. Social change, in any case, is the thing that requires some investment and requires consistent support and advancement. As it is seen in the sales forecast for the connected vehicles, the number of vehicles that can be sold based on my company comes the third. KORKMAZ (2020) explains that competitive strength to my market virtues is weak compared to those of my competitors. The market is only favorable to my company if and only if the assets is added and reducing the number of liabilities that could accrue to the company. As KORKMAZ (2020) assert growth rate for the competitors varies steadily from one another depending on their mode of production. BMW is depicted to decrease in the projected 10 years to come. This is a lose in the market share, this might be due to the reasons that, their products are dropping in the quantity and the competition to it does varies significantly. On Toyota company, depicted on the market share for the connected cars and the trucks it is clear that this Toyota company is undergoing changes that would yield good results to the company. This is the positive good results that reflects on the positive growth rate to the company (KORKMAZ, 2020). VW company in comparison with Toyota have significant market share, VW has bigger growth rate compared to all the companies in the marketplace. This might be as a result of quality output that the company is producing timely. Based on the market share, VW owns the bigger market as compared to the rest of the companies, Toyota follows closely and my company comes third and BMW closes amongst other companies. As in comparison to my company, these competitors are gaining the market share and winning most of it (KORKMAZ, 2020). My company is significantly losing in the market might be due to insignificant number of inputs employed. The pie charts demonstrate this figure1 and figure2. The number of connected cars and trucks now on my company is high compared to 2030, this is an indication that am losing the market share as the time goes by, BMW is slightly increasing their market share meaning that they are winning some of its customers as the time goes (KORKMAZ, 2020). Toyota company has its number of connected cars and trucks relatively depreciating and finally VW is the leader in the market though there is a decrease in the number of connected vehicles in the year 2030. All these competitors have relative number of employees in relationship with their assets, net income varies according to their standards of accommodating the current market. These competitors have much operating income as compared to my company and this is a reason why I won’t continue with positive result further. Financially speaking, VW is stronger mi the market hence the main reason it is the leader and followed by Toyota and BMW then my company comes last in the market. My market share is depreciating as compared to those of the competitors. My company is losing shares as a result of: methods of production and poor-quality products from the company. Poor marketing again could be the main reason that led to this (KORKMAZ, 2020). My company’s growth potential is negative because as it is in the reflection for 2030 it is seen to depreciate. This company’s financial books as compared to the competitors have major insignificancies and cannot relate well with the operations. Total available market for VW, Toyota, BMW and my company for the future is certain based on the statistics, VW is good company that would hold its customers positively followed with Toyota significantly. BMW and my company almost share the same cohort. Total available market for cars and trucks is around a quarter of the global market, this shows that globally there is need for more cars and trucks. TAM for IOT-connected cars and light trucks is relatively a third of the global market, hence showing that there is need for more production of IOT related vehicles (KORKMAZ, 2020). Projected compound annual growth rate (CAGR) for cars and light trucks shows VW increasing followed by Toyota, BMW and my company at last. Projected CAGR for IoT-connected cars and light trucks shows BMW surpassing the global market demand followed by Toyota closely and there which is closely followed by VW and finally my company. Fast growing competitor is VW as it is shown in this comparative growth data. These companies have not to run away from technological changes but to embrace it, this will foster their business and hence keeping them relevant in the market. Exploring their market niche will enable the companies to understand the customers needs and as a result will bring positive improvement to their organizations. For customers not responding faster, the company offering the products need to act immediately and respond to the current industry trend in the market rather than compelling to do away with it (KORKMAZ, 2020). Focus on new markets; Once the market is established, move forward and expand into new business areas. BMW, for example, flooded one of the companies looking for, I may decide to switch to a new area of ​​business. A new line of business can lead to faster and better development, but rest assured that your company is prepared for other markets first. The following steps the company needs to take from concept outline to launch include: Develop ideas for new products. Thinking of new elements is an innovative task that requires a certain angle. Organizations use a variety of internal and external sources to find ideas about new elements. A SWOT investigation can show quality in existing articles which could be the reason for new articles or market openings. The path to the thinking stage in old age is to examine the potential outcomes and realize that most of them do not lead to the elements they were intended to present. Check product ideas. In this early phase, there is not much to think about the item and its market opportunity. The notion of elements which do not conform to the general purpose of the association must, however, be rejected at this point. At this early stage, the thoughts of the article can be easily verified by some kind of internal evaluation. The representative can evaluate the thought of the item, as demonstrated, for example, by a series of actions; those with low scores were eliminated and undoubtedly the highest position advanced. Develop and test ideas. The ad tries to get the spot idea as precise as possible to get an accurate response from the target buyer. These answers can then be used to study bottom lines, ad mix, and audits. New devices are available that innovate to improve items, helping to quickly develop models that can be tested with potential buyers (KORKMAZ, 2020). While test ideas can include real-item models, the initial test results are much more solid. Idea testing helps organizations avoid investing resources in misunderstood ideas, while also helping them get and retain exclusive thoughts on articles. Business case analysis. Before organizations are interested in running an event, they must be sure that there is an adequate return on investment. The cost and expense demonstration plan are part of the business expertise, but the full scope of the investigation covers all income, expenses, and other business implications of the item. Technical development and marketing. Measures of professional progress vary widely, resulting from the type of position. For articles with confusing prefabricated dimensions, there are laboratory steps to define and similar complex steps to promote assembly systems (KORKMAZ, 2020). There may be a new cycle that offers help, requires new display options or a new hardware transfer. While special improvements are in progress, the presentation office is trying to pursue the most ideal combination of advertising with initial products among the target customers. Test marketing and validation. This test is the final stage before commercialization; The goal is to examine every factor in the advertising plan, including item components. The testing of an item is initiated entirely by the manufacturer: the person selects samples from individuals, provides the test item to the buyer, and motivates the buyer to show interest. Launch. Advertising factories are meant to bring articles to market. This phase marks the beginning of the item's life cycle. Evaluation. This market information leads to other thinking models of improvements and changes that can be made across all components of the ad mix. The size of the development to be affected here will depend on the effort that the company has on availing the necessary resources. Capital runs the business to the required level, adding capital to the business will improve its production to the next level (KORKMAZ, 2020). Personnel to affect the productions need to be more than the available for faster production. Rapid prototyping and rapid tools offer manufacturers the opportunity to facilitate the item improvement process. In this case I can use innovation to create scale models of sections and articles. In addition, you create the necessary tools for the elements at the same time, which further speeds up the interaction. Working with a full-fledged designer who creates a strategic plan for assembly offers the opportunity to accelerate the production of goods without losing quality. References Bryson, J. M., & Alston, F. K. (2015). undefined. John Wiley & Sons. Etheridge, D. (2014). Sharing your workbook with others. Excel® Data Analysis, 256-275.  https://doi.org/10.1002/9781118983935.ch13 Glenn, M. (2021). An Org Dev'l approach to strategic planning: A springboard to success. KORKMAZ, G. (2020). The moderating effect of internal audit in strategic planning implementation success. Istanbul Management Journal, 57-84.  https://doi.org/10.26650/imj.2020.88.0003 Market share percentage for connected cars and trucks now 1 7.1001855287569568E-2 3.0000000000000002E-2 8.899814471243042 1E-2 0.15500927643784787 Market share percentage for connected cars and trucks in 2030 1 1.9820808908581174E-2 3.0721273550689123E-2 8.6203854372929198E-2 0.13194267453486777 Market share percentage for cars and trucks now 1 5.7966973386622052E-2 3.9068067044644793E-2 8.5323914861976019E-2 8.7647550887628961E-2 Market share percentage for cars and trucks in 2030 1 5.2848232848232847E-2 3.7733887733887736E-2 8.40956340956341E-2 9.0041580041580041E-2 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 Comparative Product Plans Company Number of Sensors and Computers by 2025 Functionality Emphasis Current Connected Services 5–10 Year Product Plans Existing Partnerships Your Company 65 sensors/30 computers vehicle control, systems maintenance, entertainment, navigation, 5G navigation, emergency services, service status fully integrated information system, assisted driving, expanded service information, semi-autonomous vehicle within 10 years Toyota, Waymo BMW 125 sensors/50 computers vehicle control/safety, IFTTT-customized applications and IoT connectivity, LTE navigation, emergency services, smart house connectivity fully integrated information system, semi-autonomous driving, connection to traffic information systems, introduction of fully autonomous driving early 2030s Daimler Toyota 100 sensors/40 computers vehicle control, social media, safety, entertainment, navigation, 5G navigation, emergency services, social media 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 Microsoft, Ford VW 90 sensors/35 computers vehicle control, maintenance, in-car consumer experience navigation, emergency services, consumer orders, maintenance status fully integrated information system; semi-autonomous driving; connection to traffic information systems; connectivity with smart home; fully autonomous vehicle early 2030s Microsoft References: https://medium.com/@water.street/autonomous-vehicle-partnerships-how-tech-companies-and-automakers-are-collaborating-to-innovate-cf44bc9e85a https://techcrunch.com/2019/07/04/bmw-and-daimler-partner-on-autonomous-driving-first-results-of-team-up-in-market-by-2024/ IoT Technology in Automotive Industry Alexander, Apanyin SNHU MBA 580: 3-1 MILESTONE ONE, Innovation Approach 2021/08/15 Introduction Internet of Things (IoT) devices in automobiles evaluate engine performance, air temperature and measure physical health indicators. IoT not only transforms the car sector, but it also sparks a power struggle between automakers as incumbent players on the one hand and software developers on the other. Predictive maintenance is based on the use of IoT connection technologies that gather data on the performance of various parts, send it to the cloud in real time, and assess the risks of a car's hardware or software malfunctioning. Automatic updates for connected automobiles can help with IoT traffic management by improving navigation accuracy using real-time traffic data. Millions of drivers will benefit from flexible map updates, 3D mapping, and a slew of other advanced driving aid capabilities. With a few clicks, users of IoT devices can now analyze engine performance, manage air temperature, and measure physical health indicators. IoT devices provide well documented information concerning the matter in the hand. 2 Overview The automobile market is dominated by several number of carmakers. The market is unique as business action of one car manufacturer significantly influences the operation of other players. Manufacturers use marketing and advertising as crucial tools for competition, but it is critical to keep up with current technology to stay in or get ahead in the marketplace (Koch, & Windsperger, 2017). Option A: Discontinuous innovation (A new product is introduced that is completely different from the old one, resulting in a substantial shift in consumer behavior.) Option B: Incremental Innovation (Is a set of minor enhancements or updates to a company's existing goods, services, processes, or techniques). The phrase 'automotive IoT' refers to the incorporation of IoT technology into automotive systems in order to develop new applications and solutions that can make vehicles smarter and more intelligent, allowing for safer, more efficient, and comfortable driving. Semi-autonomous automobiles with IoT infusion make on-the-fly choices while partially regulating vehicle operations to avoid accidents and reduce the driver's workload. Cars are outfitted with IoT systems, in addition to various proximity sensors and cameras, to eliminate human error and make driving more comfortable and safe. 3 Option A: Discontinuous innovation Benefits: Widens organization’s product mix Creates new markets for the products Build on new information, resources, and skills, and necessitate institutional reform to keep up with market demands Risk: Uncertainty of the demand for innovative goods and services Resistance to change. Lengthy development times Not enough customer insight Excessive perceived economic risks In the case of discontinuous innovation, a new product is introduced that is radically different from the previous one, resulting in a major shift in consumer habits. For example, disposable sanitizing tissues to be used on the body instead of a shower or bath. Discontinuous products include advanced features that do not exist in present products and cannot be reached by technological extension. The benefit(s) of the product as perceived and experienced by the customer or user are referred to in the Product Capability dimension. 4 Option B: Incremental Innovation Benefits: Modifies the functionality of existing products and services, Protects current business models Increase product diversification, reduce risk and sell into existing markets. . Risks: Time risk, Uncertainty of the demand for innovative goods and services. Averse culture Ineffective marketing and communication Inability to adequately measure performance The term "incremental innovation" refers to a succession of tiny enhancements made to an established product or service by a corporation. In general, these low-cost enhancements enable a company separate itself from the competitors while expanding on present offers. 5 Competitors BMW BMW has significant connectivity of cars to information services The functionality include driver-assist functions, such as auto-parking, and lane-keeping. BMW will have a full suite of connectivity within 12 years. Toyota Toyota is subject to 5G wireless availability Navigation and emergency services provided by the devices Volkswagen VW partnered with Microsoft with emphasis on vehicle control, maintenance and in-care consumer experience. In terms of return on investment, the auto business is very competitive, and it is classified as an oligopoly market. Because there are competing cars on the market from other dealerships, the location of the demand curve is determined by the pricing established by other enterprises for other models. Despite the fact that dealerships have some market strength, the retail market for vehicles is still very competitive. 6 Competitors Expansion BMW, Toyota and VW has expanded by entering and operating in emerging markets around the globe. The emerging markets include China, India and Brazil (Fortune Business Insight, 2021) The market for automobiles has grown with companies complying to it with highest standards of vehicles and the evolving market demand. Automobile manufacturers' attention has switched from fuel economy, performance, driver safety, and vehicle stability to extra features like vehicle networking and electrification of functions (Bentley, 2017). The global automobile business is constantly changing as new models and designs change the shape and performance of autos. Nonetheless, few periods in automobile history have matched the current rate of development. 7 Company’s Capability to Pursue the Innovation The company is able to pursue IoT technology as it has a set of coherent, mutually reinforced behaviors at achieving competitive goals. The company will set strategies that promote alignment among diverse groups in the industry. With clarified objectives and priorities , he company’s effort specify marketing, operations, finance and Research and development useful for pursuing the innovation. The global automobile business is constantly changing as new models and designs change the shape and performance of autos. Nonetheless, few periods in automobile history have matched the current rate of development. 8 Partial Gap Analysis The company does not have the technology Currently, the company has a small market share but with innovated products it will compete in the rapidly growing market (Fortune Business Insight, 2021). The company has sensors and computers with apps that detect accidents and alert first responders. Its growth depends on leadership to foster customer satisfaction and increase repair and parts revenue streams by alerting them when they need maintenance before an expensive breakdown (Bentley, 2017). The global automobile business is constantly changing as new models and designs change the shape and performance of autos. Nonetheless, few periods in automobile history have matched the current rate of development. 9 Available Technology Real-time vehicle telematics Vehicle telematics technology allows monitoring of movement, location, status and behavior of a vehicle within a fleet. Connecting the telematics devices with IoT devices for the company’s vehicles will provide real-time insights on vehicle state, driver health and optimization of transportation (Koch, & Windsperger, 2017). Vehicle tracking system in real time based on ARM7 GPS and GSM technology. A reliable vehicle tracking system is in place to track the travel of any equipped vehicle from any location at any time. A telematics system contains a vehicle tracking device installed in a vehicle that permits telemetry data to be sent, received, and stored. Location, speed, idling time, harsh acceleration or braking, fuel consumption, and vehicle issues are examples of telematics data that can be collected. 10 Recommendation The company will use an incremental innovation approach. The company already has technology applied to its products. The use of incremental innovation approach is because it will save costs and differentiate itself from competitors. The approach as well, will base on research done is about customer demands hence will help in improving their market position and build a bigger audience that gravitates to the new and improved product features. Incremental innovation refers to a series of minor enhancements or modifications to a company's existing products, services, processes, or procedures. Changes implemented through incremental innovation are typically aimed at enhancing the development efficiency, productivity, and competitive differentiation of an existing product. 11 Recommendation Cont’d The company automotive customer are well tuned to global markets and products and will expect improved quality of products. Customers may readily move from one brand to another due to the large number of models and variants available, as well as the lack of difference among items within the same price range. As a result, the company's main priority is maintaining client loyalty (Bentley, 2017). Electric vehicles, connected automobiles, mobility fleet sharing, onboard sensors, new business models, and always-on connectivity are all part of the automotive industry's race to a new world, driven by sustainability and changing customer behavior. The global automotive industry is undergoing revolutionary change and adoption of technology changes the market dynamics. For instance, the market size are expected to improve despite the decline from $87.40 Billion in 2019 to $90.21 Billion in 2020 (Fortune Business Insights, 2021) References Fortune Business Insights. (2021). Automotive Finance Market Size, Trends | Industry Report [2028]. Fortunebusinessinsights.com. https://www.fortunebusinessinsights.com/industry-reports/automotive-finance-market-100122 ‌Bentley, G. (2017). The automotive industry: change and challenge for the RDAs. In Regional Development Agencies and Business Change (pp. 145-170). Routledge. Koch, T., & Windsperger, J. (2017). Seeing through the network: Competitive advantage in the digital economy. Journal of Organization Design, 6(1), 1-30. MBA 580 Chief Technology Officer (CTO) Brief Over the past three decades, sensors have been increasingly integrated into automobiles. Currently, a typical car has 50–100 sensors (Tyler, 2016), and this is expected to grow to as many as 200 over the next few years. These sensors measure everything from oil levels to the distance from the car in front. These sensors currently connect (Computers in Your Car, 2018). These computer systems can warn of a collision or an engine problem and communicate the condition to the driver (e.g., turn on the check engine light). Increasingly, these computers are connected wirelessly via the internet to other computers, like the user’s phone for things like remote starting, and to the manufacturer to help generate predictive maintenance recommendations. The commercial term currently used for this is connected cars. Technically, this is part of the internet of things (IoT) concept—where devices from refrigerators to door locks are connected via the internet for convenient access by the user from phones, computers, and personal automobiles. Currently, and in the immediate future, connected cars will help the driver navigate, find the cheapest gas station, locate the nearest Starbucks or parking lot with open spaces, and allow friends on social media to know when their friend will arrive. As more semi-autonomous driving features are added over the next few years, these wireless computers will also talk to other cars to help predict their next move and communicate to road sensors to monitor conditions (Gossett, 2019). Eventually, enough information will be provided to and from the connected car that autonomous driving will become commonplace. It is estimated that the market for IoT-connected cars will grow from $54 billion in 2019 to over $510 billion by 2030 at a 25% compound annual growth rate (CAGR) (Meola, 2020). This compares with an overall industry growth of 4.1% (The Global Automotive Motors Market Size Is Projected to Grow from USD 20,321 Million in 2020 to USD 25,719 Million by 2025, at a CAGR of 4.8%, 2020). Our company is marketing some connected car capability—but we are not the leader. We need to innovate so that our products can be competitive in the rapidly growing market. Our cars have sensors and computers, and our technology expertise is competitive. We have some connectivity—driver apps for keyless start and OnStar (The Benefits of OnStar | Keeping You Safe and Secure, n.d.) connectivity to detect accidents and alert first responders. Our growth and ultimate health as an enterprise depends on us taking the leadership or, at least, keeping up with the leaders. Furthermore, there is significant opportunity to improve our customer satisfaction and increase our repair and parts revenue streams by alerting customers to needed maintenance before an expensive breakdown occurs on the road. With our current technology implementation plan, however, we expect to grow at 3.1%, about 1% less than the industry. Our growth projection for connected cars is 10.2%—less than the industry at large. We must speed up our innovation or risk losing market share. Here is what we estimate our competitors are doing and how fast they are adding technology. The leader among existing auto manufacturers is BMW. BMW cars have significant connectivity to information services now. Some driver-assist functions, such as auto-parking and lane-keeping, have been in BMW models for several years. Market research suggests that BMW will have a full suite of information connectivity in their cars within several years and that the company will begin producing fully autonomous driving machines within 12 years. Toyota has fully integrated social media in Japan and expects to implement it in European and U.S. markets, subject to 5G wireless availability. Volkswagen is about where we are—but has partnered with Microsoft to jump ahead. Competitors from outside the traditional automobile manufacturers are also indicating that they intend to enter the connected car market with disruptive technologies. Apple, for example, is aiming for a fully autonomous delivery vehicle by the mid-2020s and an autonomous passenger car within a decade. Our goal is to launch an autonomous vehicle following quickly after BMW, our main luxury competitor. However, we have a long way to go. We are considering two ways to get there: A) Introducing incremental improvements faster than we have in the past and improving our current models each year or B) introducing a radical innovative design in several years. Option B does not forestall us from continuing to introduce incremental improvements in the interim. Our approach will depend on your analysis of our capabilities to innovate. How can we get the technology being researched in our lab ready—how can we develop it, produce it, and take it to market? What technology do we already have, and what will we need to acquire? What are our competitors doing, and are there weaknesses we can exploit? The two paths we can take are incremental innovation, or discontinuous or radical innovation. What do I mean by this?  Incremental innovation. The automobile is a mature technology—the modern automobile is over a century old and it has been changing and adapting over that time. Our company does incremental innovation as well as our major competitors and the costs are built into our way of doing business. Given how we build automobiles today, we can continue to add sensors, computers, and IoT capabilities each model year just by upgrading modules. There are risks, though: 1) Could changes in the market impact what customers demand? A faster competitor or a new entrant could produce a breakthrough in automobiles that makes everything else obsolete. It has happened in other mature industries—could it happen here? 2) Are we missing significant new opportunities (e.g., market growth overall or opportunities in integrated maintenance, service revenues and parts, or a high-margin business) that we do not control now?  Discontinuous or radical innovation. This would be more expensive—a completely new model is expensive—as much as $6 billion (Viswanathan, 2013). A major redesign and recent technology integration are also riskier to develop—we might fail—and it would take longer to get to market. We might require enough of our existing resources that we could fall behind with our current models, but it also might provide insight in incremental changes to current models while we developed a major new product line. It is a lot to think about. That said, we could take the leadership position ourselves in the growing market and better protect ourselves from competitors. If we took this path, we would first introduce a new high-end model and, as we brought costs down, rapidly deploy it across our whole product line, using this innovation process to accelerate our ability to innovate. References: Tyler, N. (2016, December 14). Demand for automotive sensors is booming. Newelectronics.Co.Uk. https://www.newelectronics.co.uk/electronics-technology/automotive-sensors-market-is- booming/149323/#:%7E:text=Currently%2C%20each%20vehicle%20has%20from,car%20based% 20on%20current%20trends Computers in your car. (2018, January 24). AAMCO Colorado. https://www.aamcocolorado.com/computers-in-your- car/#:%7E:text=Your%20Car’s%20Computer,controls%20to%20meet%20emissions%20standard s Gossett, S. (2019, August 13). IoT in vehicles: A brief overview. Built In. https://builtin.com/internet- things/iot-in-vehicles Meola, A. (2020, March 10). How 5G & IoT technologies are driving the connected smart vehicle industry. Business Insider. https://www.businessinsider.com/iot-connected-smart- cars?international=true&r=US&IR=T The global automotive motors market size is projected to grow from USD 20,321 million in 2020 to USD 25,719 million by 2025, at a CAGR of 4.8%. (2020, August 17). PR Newswire. https://www.prnewswire.com/news-releases/the-global-automotive-motors-market-size-is- projected-to-grow-from-usd-20-321-million-in-2020-to-usd-25-719-million-by-2025--at-a-cagr- of-4-8-301113089.html#:%7E:text=%2F%3Futm_source%3DPRN- ,The%20global%20automotive%20motors%20market%20size%20is%20projected%20to%20gro w,at%20a%20CAGR%20of%204.8%25.&text=The%20growing%20adoption%20of%20these,dem and%20for%20safety%20and%20convenience The benefits of OnStar | Keeping you safe and secure. (n.d.). OnStar. https://www.onstar.com/us/en/why-onstar/ Viswanathan, B. (2013, May 7). Why are cars not getting cheap even with better economies of scale? Forbes. https://www.forbes.com/sites/quora/2013/05/07/why-are-cars-not-getting-cheap- even-with-better-economies-of-scale/?sh=3ad2b1045ad9 MBA 580 Organization Overview (Processes, Structure, Culture) Your company manufactures and distributes automobiles across six continents. The structure is very complex and it is difficult to accurately count the levels of hierarchy. The company operates under a tall matrixed structure design. Tall structures can be cumbersome, and decision makers are often those farthest from the customer. Communication can be slow and difficult, also slowing down decision-making speed. The specialized functions and organizations, often referred to as centers of excellence or centers of expertise (COE), allow for deep knowledge and expertise. Your company has many functional COEs where increased structure, governance, and control allow for resource and process efficiencies. Resources are centralized, reducing duplication of effort across the organization. These efficiencies can, however, result in rigid, inflexible processes. In addition, COEs can create functional silos or reduced cross- functional coordination and lack of connectedness, where each function is striving toward its own unique objectives. Your company follows a centralized and standardized approach where enterprise-wide decisions are often made centrally and at the top of the hierarchy. This centralization makes it easier to implement common policies and practices, prevents parts of the organization from becoming too independent, and capitalizes on specialization. Matrixed organizations are often associated with this specialized COE structure. Rather than having permanent cross-functional teams or organizations working on specific projects or product launches, matrixed organizations pull teams together from the various functional departments. Specialists are pulled from functional areas to work on a specific project or product design. In essence, they report to two managers at the same time and may work on multiple projects simultaneously. Although the project manager, who is on the same leadership level as the functional vice president (VP), supervises the project, the true management authority still resides with the VP. Specialists supporting specific product launches generally remain “seated” with their functional team but meet regularly with their product team to advance the project. They may be fully dedicated to the project or still work on other unrelated projects. Finally, product teams are pulled together at the enterprise level and are not region-specific. Although they may produce differentiated projects for unique regions, their primary focus is on enterprise-wide initiatives. Organization Structure Chart Product A Product B Product C Functional VPs: Project Manager Project Manager Project Manager Design Technology Hardware Electronic Systems Safety Engineering Sustainability Quality Strategy Finance Procurement Marketing Specialists are pulled from functional area to work on specific project or product design. In essence, they report to two managers at the same time and may work on multiple projects simultaneously.