MBA 580 1.3 Memo 1
MBA 580 Milestone One
Jennifer Ta
Southern New Hampshire University
MBA-580 Innovation and Strategy for High-Performance Organizations
Dr. John Horne
MBA 580 1.3 Memo 2
This memorandum reviews the company’s evaluation of integrating the Internet of Things
(IoT) also known as the fourth industrial revolution into our product line using the Real, Win,
Worth it (RWW) screening tool. We will review the feasibility, market potential, benefits, and
strategic importance of IoT. The incremental innovation recommendation involves enhancing an
existing product by adding sensors, computers, and IoT capabilities.
Is this product real? IoT is a network of connected devices facilitating communication
between devices and the cloud, projected to grow 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). To leverage this growing market and
maintain our position, implementing IoT is crucial. Our projected market share percentage in
connected vehicles by 2030 is only projected to be 1.98% - the lowest share in comparison to our
competitors (Comparative Growth Analysis, 2024). In 2025, our company will integrate 60
sensors and 30 computers in each connected vehicle to assimilate to the transforming market.
Our company will allocate resources and capabilities to sustain this competitive advantage to
meet criteria with the addition of IoT capabilities.
Can we win? In order to answer this, we must complete an external analysis on the
market and our competitors. Competitors may respond by catering to high end or niche markets.
In contrast, our strategy is to manufacture standardized low priced IoT vehicles. Our company
already possesses the knowledge, resources, and capabilities in IoT, providing a competitive
advantage. Our company will become more proficient in manufacturing IoT before selecting a
specific market segment to compete in.
MBA 580 1.3 Memo 3
Is it worth doing? We will take advantage of our existing partnerships with Toyota and Waymo to
decrease our risk. Based off the projection lunching an IoT product line would be an investment with
substantial profit. Also, integration of IoT provides the opportunity to innovate and align with our growth
strategy. Senior management supports and understands the importance of the fourth industrial revolution.
According to Investopedia, “There are quite a few examples of famous market-leading companies that
failed to innovate and were forced to declare bankruptcy as a result of not reading their markets right.”
(Thangavelu, P., 2020). As part of our business strategy, we must acclimate to our customer’s evolving
desires and technological changes. Our competitors will most likely attempt to make similar connected
cars at lower prices. However, according to our chief technology officer the IoT market is expected to
grow to over $510 billion by 2030 (MBA 580 Chief Technology Officer (CTO) Brief, 2024) Accelerating
the development of connected cars will increase our market share and technical knowledge of IoT.
MBA 580 1.3 Memo 4
References
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-
isprojected-to-grow-from-usd-20-321-million-in-2020-to-usd-25-719-million-by-2025--
at-a-cagrof-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
Comparative Growth Data (2024) Snhu.edu. Available at:
https://learn.snhu.edu/content/enforced/1679097-MBA-580-11486.202457-1/Course
%20Documents/MBA%20580%20Comparative%20Growth%20Data.xlsx?ou=1679097
(Accessed: 4 August 2024).
Thangavelu, P. (2020)JCompanies That Went Bankrupt From Innovation Lag,JInvestopedia.
Available at: https://www.investopedia.com/articles/investing/072115/companies-went-
bankrupt-innovation-lag.asp.
MBA 580 Chief Technology Officer (CTO) Brief (2024) Snhu.edu. Available at:
https://learn.snhu.edu/content/enforced/1679097-MBA-580-11486.202457-1/Course
%20Documents/MBA%20580%20CTO%20Brief.pdf?ou=1679097 (Accessed: 4 August
2024).
