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Innovation is the process of generating a new idea which is used by business entities in order to attain predetermined goals such as profit maximisation and customers satisfaction. If an organisation is willing to make innovation in its existing products than various resources such as skilled workers, finance etc. are required for this purpose (Altuna and et.al., 2015). Main purpose of innovation is to acquire large market share so that business can be operated in an appropriate manner. Proper research is required to make modifications in the products because if organisations are not having accurate information of market then it is not possible to successfully launch the innovation. Effective planning and strategies are also the main requirements of innovation process.
Main aim of this report is to determine the importance of innovation for an organisation to achieve all its organisational objectives. The business entity which is taken in this assignment is Tesla Inc. which is an automotive company and operating its business all around the world. In this report various topics are discussed including future of automotive industry 2020 and beyond, Tesla Inc.'s innovation requirements 2020 and beyond etc. Future innovation capabilities of Tesla Inc. are also covered in this project report.
The Future Of The Industry 2020 And Beyond
Automotive industry is the largest sector in the world which is contributing a large amount in the national income of different countries. There are various types of products like cars, buses, trucks and other motor vehicles which are manufactured by companies operating in this sector. Auto-mobile industry was established in the year of 1860 and since then this sector is running successfully. It is involved in developing, designing, marketing and manufacturing activities of auto-mobiles. Enhancement of this industry is continuously increasing and developing the economy of the countries (Archibald and Archibald, 2016). There are various companies in this sectors which are operating their business in UK and other countries. It includes Bentley, Land Rover, Lotus Cars, Rolls Royce, Lagonda, Aston Martin etc. Some of the innovations which are planned by the companies of this industry are mentioned as follows:
Bentley is an automotive company which is manufacturing luxury cars and it was founded in year 1919. This organisation is known for its designer cars. The company has collaborated with Royal College of Arts and asked the students of second year to give suggestions to Bentley in order to make innovation in future. Concept of a few students are selected by the company that are going to be used in future as innovation. The organisation has planned to manufacture a car in future which will have a special device and is going to be added that can filter the undesirable and stressful noise. This will be very beneficial for the health of passengers of cars and they will have a good experience of ride (Biemans, 2018). Another idea which is going to be implemented by Bentley in future is manufacturing and launching driverless cars in smart cities and the car will be called autonomous cars (Future innovation of Bentley, 2018). A first person view design for the car is as follows:
Source: Autonomous Car by Bentley, 2018
Rolls Royce is a luxury car brand which is known for its innovative techniques that are used to make specific modification in its cars. The organisation is planning to launch a tailor made car which will be based upon the specification of clients. The car will be manufactured according to the demand of the customers and it is mainly for famous and rich personalities. The directors of this company has decided a name for the car which is Rolls Royce 103 EX (Tailor made cars by Rolls Royce, 2017). A 3 dimensional design for this car is presented as follows:
Source: Tailor made car of Rolls Royce, 2017
Lotus cars is a sport cars manufacturing company which is operating its business activities all around the world. The organisation is planning for an innovation which is going to be launch in market in the year of 2020. The company has planned to change the stereotyped material of the car body and will use carbon fiber (Future innovation of Lotus Cars, 2017). This will be considered as an innovation idea as none of the other companies has used such material to manufacture a car. A car which is made from carbon fiber is designed as follows:
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All the above described innovations are going to be introduced by companies operating in auto mobile sector and will take this sector to the next level. These innovations are very beneficial for this sector because it will increase overall profitability of automotive sector (Carayannis, Sindakis and Walter, 2015). It will also result in overall enhancement and technological advancement of automotive sector. As Tesla is also an automotive company hence these innovations will also be beneficial for the company as it will motivate the directors to be more creative and competitive in the market.
The Organisation's Innovation Requirements 2020 And Beyond
Tesla Inc. is a car manufacturing company which is supplying its manufactured cars all around the world. This organisation was founded in year of 2003 by Mr Martin Eberhard, Marc Tarpenning, Elon Musk and Ian Wright. The organisation's future is ambitious as it has planned to launch various innovations in future so that profits of the company can be increased and market share can be enhanced (Euchner and Ganguly, 2014). The company is better known for its innovations. This organisation has planned to launch various new innovations till 2020 and beyond. Some of them are described below:
Electronic pick up truck:
The directors of this company has announced that their electronic pick up trucks are going to be launched in the market in the mid of year 2019. The trucks will be based on rechargeable batteries rather than petrol or diesel. As it is a new concept hence it can result in enhanced profitability and market share of the company. The main objective of the company behind this innovation is to replace the engines with electronic power trains (Electric pick up truck, 2018). It will be very beneficial for the customers as their cost of using petrol and diesel will be reduced. As it is a new product hence it will advantageous for the automotive industry because it will enhance market area captured by the sector. A design which is presented by Elon Musk for the pick up truck is presented as follows:
Source: Electric pick up truck, 2018
Tesla Inc. has also announced to build a supercharging network all around the world. For this purpose the organisation is going to launch supercharges with innovative technique in which capacity of chargers will be increased. The main purpose behind this process innovation is to turn Tesla into an energy organisation. As Tesla has already announced to launch electronic cars and trucks and the directors of this company want that energy and power for the charging should be produced by the company itself. Innovation in the charging system is going to be made by enhancing the capacity to charge an electric vehicle (Foss and Saebi, 2015). These superchargers are very beneficial for the users because the number for the charging points will be increased after building the network. The supercharging network is also beneficial for the automotive industry as it will help to expand the business of whole industry.
Fully autonomous cars:
Musk who is the founder of Tesla Inc. has promised to make all the cars autonomous before 2020. This will be a huge innovation in auto mobile sector. The organisation have announced to add auto pilot hardware in all its cars. This innovation will reduce the load of the driver to drive the car. The organisation has given a name to this autonomy business project which is Tesla Level 5 autonomous driving (Future innovation of Tesla Inc., 2018). Such type of cars will enhance the standard of living of the users of fully autonomous cars. This innovation is also very beneficial for the automotive industry because it will result in technological enhancement of the whole sector.
All the above described innovations are very beneficial for Tesla as well as automotive industry because it will help the organisation to be more competitive in the market and increase its profits. When the innovations will be launched in the market this will enhance the profitability of whole automotive sector. The innovations are planned to provide good experience to the customers of Tesla. The organisation is continuously making innovation in its existing products for the purpose of capturing large market area. The innovations will help the automotive industry to be more profitable as compare to other sectors.
From the above Gantt chart it can be analysed that first of all the organisation is going to focus on Electronic pick up truck, then supercharging network and at last fully autonomous innovation. All of them are going to be completed in a specific time period which is decided by the directors.
Finding The Future Innovation Capabilities For The Organisation
Tesla Inc. has announced to launch different types of innovations in up coming period. These innovations are electric pick up trucks, fully autonomous cars and supercharging network. All the new ideas will be very beneficial for the organisation and the automotive sector. The organisation required to focus on one concept at a time so that it can be introduced in the market successfully and result in increased profits and sales of the company. A road map for Tesla Inc. which is required to be followed for the proper implementation of innovative ideas is elaborated below:
The organisation should focus on its innovation of “Electronic pick up truck” because it will help to capture larger market share (Gassmann and Schweitzer, 2014).
Electric pick up truck innovation is suggested to Tesla Inc. because it will help to increase its profits and sales with a higher percentage as it is a product which has not yet been introduced by any other organisation. Another reason for this suggestion is that it will help to broaden the market area of Tesla Inc. by targeting logistic sector.
Impact of changes:
When a new innovation is launched by a company than it is very important to analyse the possible impacts so that appropriate strategies can be formulated to attain success. As Tesla Inc. is going to introduce electric pick up trucks in the market then it is very important for the organisation to determine the impact of the new innovation. Following are some points that can be considered by Tesla Inc. to analyse impacts of changes:
- Research and development: While an organisation is launching a new product in the market than it is very important to gather appropriate information regarding customer's choices, preferences and market conditions. All such type of data is collected by the research and development department of the organisation (Salerno and et.al., 2017). Tesla Inc. is going to launch new electric pick up trucks in the market for the purpose of capturing large market area. For this purpose the research and development department of the company is required to conduct a research and collect essential information. This will help to formulate appropriate strategies to successfully launch new electric pick up trucks. Proper and effective research will result positively for Tesla because it will guide the directors and other executives to make plans so that large number of customers can be attracted toward the new electric pick up truck.
- Required resources: Tesla Inc. is going to introduce electric pick up trucks in the market in order to broaden its market area. As it is a new products hence various resources are required by the company. These resources are classified as intangible and tangible resources. Intangible resources includes all the intellectual property rights like patent, copyright, trademark and trade secrets. Goodwill is also considered as the intangible resource for a company. Tangible resources includes technically skilled employees, funds and other. If the organisation is not having sufficient resources than it is not possible to manufacture and successfully launch a new product in the market. The directors should arrange all the resources because it is the main requirements of an innovative product.
- Requirement of technical skills: If Tesla is willing to successfully introduce its new electric pick up trucks than the managers needs to hire skilled employees with technical skills. It is very important to recruit and select such individuals for the company who have good knowledge and experience of working in the same field. Effective technical skills can help to manufacture such products that can grab attention of customers. As the new trucks are different from other trucks that are manufactured by other companies hence the employees needs to work hard. To perform all the tasks related to the manufacturing process of pick up trucks technical knowledge and skills are the major requirements. These are very important as work can be performed more effectively if workers are technically skilled. Employees with such skills are more confident and this confidence will motivate them to fulfil all their responsibilities properly (Schaltegger and Wagner, 2017).
- Legal aspects and compliance: A particular act for all the business companies is being established by the government which is intellectual property right act and it restricts the companies not to copy the concept of innovation of other organisations. As Tesla Inc. is going to launch a new electric pick up truck in the market in future hence the directors should make sure that organisation is not copying the idea of any other company. Main responsibility of top executives of Tesla Inc. is patent their idea of electric trucks as it is a new idea and patent is required to make sure that other companies will not use this innovative idea.
- Cost of change:As Tesla Inc. is going to launch new electric pick up trucks than the main requirement for this launch is monetary resources because it is not possible to manufacture a product without sufficient funds. The directors of the company are suggested to gather funds (Souto, 2015). An estimation of total cost that may take place for the launch is as follows:
New staff members
Research and development
Total estimated cost including cost of material, staff, marketing and other activities is 2882500. The directors of the company are suggested to arrange this amount for the new innovation.
In this step the research and development department of Tesla Inc. will analyse the feasibility of the new electric pick up truck. In this stage of road map various aspects are determined that the new innovation is beneficial for the organisation or not, it will help to increase profits or not and it can survive in the market or not. All the members of research and development department test the product to assure that it is manufactured according to the requirements of customers. All the analysed factors are recorded in a report and this report is presented in front of the top executives for their approval. It is required to implement the new innovation (Talukder, 2016).
A feasibility report is generated by the research and development department of the company and it is presented in front of the top executives for their approval so that innovation can be implemented. Board of directors analyse the report and than identify the errors or problems in the report. If there is no mistake in the report than approval of directors will approve the project and their permission will be granted to implement the plan of innovation. The report is presented in a formal business meeting in which managers, board of directors and other top executives are invited to analyse the overall report of the new business report. The report is approved by them than the innovation is implemented in order to achieve organisational goals.
Application of new innovation:
When the directors approve feasibility report than the plan for the innovation is implemented so that all the objectives that are related to the innovation can be attained. As Tesla Inc. is going to launch a new electric pick up truck in the market and if the feasibility report is approved by the directors than the innovation will be implemented. The idea of electric pick up truck is very unique hence it will attract large number of clients for the company and the business will be enhanced. This will increase profits and sales of Tesla Inc. with a higher percentage. In application process various activities are performed by the company. It includes marketing, promotions, manufacturing and other functional activities (Wu, Lii and Wang, 2015).
Review of the impact of the new innovation:
When a change is implemented in by a company than the impacts of the changes are also analysed because it helps to assess that implemented plan has worked for the company or not. When the new electric pick up trucks will be launched by Tesla Inc. in the market than research and development department will review its impacts. Various aspects will be analysed by the division including its overall performance and the result of the innovation that it is able to increase profits for the company or not.
All the above described steps are required to be followed by Tesla Inc. while launching its new electric pick up trucks to give shape to the organisation. As Tesla is known for its innovative nature hence it is very important for the company to make such innovation which is easy to adopt by all its customers. If its is not adopted by the clients than company may have to face high losses. The above described road map is required to be followed in order to successfully launch the new innovation in the market. If the organisation is not able to implement road map than it is not possible to achieve all the goals.
From the above project report it has been analysed that for all the business entities it is very important to manage the innovations because it can help to successfully run the business. If the business entities are not able to manage the innovation than it can affect their profitability and market share. There are various that are continuously launching in the auto mobile industry in order to increase profits. A proper market research is very important to successfully launch a business project. If a business entity is not able to collect appropriate information of the market than it is not possible to successfully establish the business. As Tesla Inc. is car manufacturing company who is operating its business all around the world and it is known for its innovation.
The organisation is going to launch various new innovations in up coming period all of them are very beneficial for the Tesla as well as automotive industry because it will result in increased profits for both of them. A detailed road map is being formulated for the organisation which is required to be followed in order to appropriately introduce new innovations in the market. The road map include various steps like suggestions, reason for the suggestion, impact of the changes, required tangible and intangible resources, feasibility analysis, application of the innovative plan etc. Tesla Inc. is planning to launch various innovation in up coming years that includes electric pick up trucks, supercharging network and fully autonomous cars etc. to launch all the innovations successfully the organisation is required to follow all the steps of of the road map so that all the objectives related to the new business project can be launched in the market.
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