Innov Strat Assignment Week 6
Innovation Approach Terrell McGhee SNHU Instructor’s Name MBA-580 4/10/22
The global automobile industry has become so competitive as firms are engrossed in cut throat competition in trying to gain competitive advantage. This competition is more manifested in the R&D as firm are adopting the highest end technology in the manufacturing of the vehicles and responding to the industry towards which are leaning towards safe driving and autonomous vehicle
Business Problem
Business Problem
The automobile industry has gravitated toward the internet of things Technology (ioT). This has been facilitated by key innovation options such as discontinuance and incremental innovation. Therefore firms in the industry must settle one of the innovation options to drive its growth and market clout.
Internet of Things has increasing become an important component in the automobile industry as firms gravitates toward more advanced safe driving and EVs. The IoT provides internet connectivity enabling a more integrated driving( Atiqur, 2021). Its also ideal in the achievement of safer driving and the actualization of autonomous vehicles.
3
Potential Risks and benefits of Option A Incremental innovation
A competitor may introduce a breakthrough
Potential changes in the customers demand
Continued addition of sensors to improve vehicle functionality
Upgrading the company’s model through use of ioT
Potential risks and benefits of option B discontinuance innovation
Completely new models are expensive
Embracing a completely new technology is riskier
Takes long for new technology to get market acceptance
The company takes leadership position in the market
Introduction of the state of the art models in the market
Competitors’ products and services
BMW cars are connected to the information services
BMW cars contains driver assist functions such as car parking
BMW to produce full range of autonomous driving machine
Toyota has integrated social media in Japan
Toyota has 5G wireless
Cont, Competitors products and services
The increased addition of technology by BMW has given it a competitive edge
The planned integration of social media by Toyota in UK and USA will expand its market
Volkswagen through partnership with Microsoft is position to increase market grip.
The technology for our company
Our company cars have sensors and computers
Driver apps for keyless start and OnStar
Connectivity to detect accidents and alert the first responders
Technology available for purchase
Increasing a radical innovative design
Introducing incremental improvement
Launching of the autonomous vehicle
Recommendation on Innovative approach
I recommend the application of the incremental innovation
The approach is not costly because it is build on what the company already has developed
The approach will not need much marketing because the customers have already been used to closely similar approach
Cont, sales forecast and financial snapshot
Anticipated sales growth by 3.1%, one mark below the industry expected growth
14.8% growth in the connected car
Projected increase in the profit margin as a result of anticipated increase in sales revenue
References
Atiqur, R. (2021). Automated smart car parking system for smart cities demand employs internet of things technology. Int J Inf & Commun Technol ISSN, 2252(8776), 8776.
https://www.academia.edu/download/65636062/20320_38023_1_PB.pdf