Integration of Innovation

Integration of Innovation

To:

From:

Subject: Integration of Innovation

Date: 5^th January 2022

Greetings

Is it real?

Organizations in public and private sectors focus on enhancing the safety of passengers through proper infrastructure and manufacturing cars that can withstand the most intense impact without injuring the passengers, as well as installing safety features such as safety belts and airbags to protect the occupants in a car in case an accident occurs. Therefore, there is a need to incorporate the Internet of Things that enables drivers to monitor everything that happens around the car. The technology would be ideal for minimizing road accidents, particularly those that occur due to blind spots.

The rise of autonomous cars increases the market size for connected cars because people are now looking for vehicles equipped with augmented reality that can relay feeds from exterior cameras to guide the driver when reversing the vehicle and eliminating blind spots while increasing visibility all around the car (Iqbal, 2020). By 2019, the company’s market for connected cars was projected to create a market share of $3.83 billion globally, with an anticipated growth of 10.2% annually. This indicates that by 2030, the company will have a market share of more than $10 billion locally and more than $500 billion globally.

The product can be made because other companies, such as BMW, have manufactured cars with an augmented vision to give drivers all-around visibility by removing blind spots. Volvo cars also use connected vehicle technology to provide reliable, safe, and engaging mobility (Ericsson, 2021). The company has maintained continuous improvement in the manufacturing of connected vehicles by partnering with Ericsson. The final product will satisfy the market because it will focus on filling the gaps that have been left by other car manufacturers who are manufacturing connected cars. The company may, however, be unable to meet demand because the technology is new, and the market share continues to increase by 10.2% annually.

Can we win?

The product will have a competitive advantage because it will include unique features that are not yet so prevalent in the market. The product also offers value for money by guaranteeing safe mobility. Additionally, the product will gain a competitive advantage because it will be the only one offering 5G signal connectivity, entertainment, continuous updates and maintenance, and adequate mobility and functionality. However, we need to maintain continuous innovation to generate new ideas because our competitors will respond by producing better products that address our product’s limitations. Competitors may also react by reducing their vehicles’ prices to retain existing customers and attract new ones. We, however, have an advantage because we have invested in research and development. We, therefore, conduct regular market research in different markets, thus enabling us to understand the market properly.

Is it worth doing?

The product will be profitable at an acceptable risk because it will enable us to grow our market share and generate more revenue by increasing the price of our cars due to the added value. The product will also increase the efficiency of our vehicles, thus increasing their demand (Nell, 2012). Besides the financial benefits the product will yield, it will also create a good image for our company and improve our reputation as an innovative company that uses technology to enhance customer experience. Therefore, launching the product makes strategic sense because it yields both short-term and long-term benefits. The product also fits our company’s overall growth strategy because it will enable us to increase the market share and improve our position in the automotive industry. The company’s senior management will create a foundation for the successful development and launch of the product by providing all the resources required because the product will improve the company’s overall performance.

Conclusion

IoT and connected cars are strategically important to our company because customers are currently looking for cars installed with new technology features that improve safety, entertainment, and mobility. Therefore, the company would have to ensure that the proposed connectivity features not only focus on all-around visibility but also factor in the entertainment aspect. Competitors may also change their development plan to include the parts we install, which is why we also need to ensure that our features are unique based on quality and accessibility. We also intend to accelerate the development of connected cars to help the company grow by creating a solid competitive advantage.

References

Ericsson. (2021, 2nd December). A partnership built on innovation & trust – Volvo. Ericsson – Helping to shape a world of communication. https://www.ericsson.com/en/cases/2017/partnerships-built-on-innovation

Iqbal, A. (2020). Obstacle detection and track detection in autonomous cars. Autonomous Vehicle and Smart Traffic. https://doi.org/10.5772/intechopen.89917

Nell, K. S. (2012). Demand-led versus supply-led growth transitions. Journal of Post Keynesian Economics, 34(4), 713-748. https://doi.org/10.2753/pke0160-3477340406

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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 researching new technology developments that the company could integrate into its vehicles to enhance their usefulness and access to sensor data. Such data is 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 to the CTO is the Internet of Things (IoT), the interconnection of embedded devices such as sensors and computers over the Internet to share data. For automobiles, the trend points to creating connected cars.

Prompt

Senior management has decided to explore IoT for the company’s trucks and cars. Your task is to create an internal memo explaining that the company should integrate IoT into its product line using the RWW (real, win, worth it) screening tool from the Module One resources and the information from the CTO Brief, Comparative Growth Data, Comparative Operating Statistics, and Comparative Product Plans documents. Consider the following:

Discuss the feasibility of the product line (refer to RWW screening tool question number one: Is it real?).

• • • Is there a need or desire for the product?
    • Is the size of the potential market adequate?
    • Can the product actually be made?
    • Will the final product satisfy the market?

Discuss the ability of the company to win market share (refer to RWW screening tool question number two: Can we win?).

• • • Will your company’s products have a competitive advantage?
    • How will your competitors respond?
    • Can your company understand the market properly?

Discuss the potential benefits to the company of producing this product (refer to RWW screening tool question number three: Is it worth doing?).

• • • Will the product be profitable at an acceptable risk?
    • Does launching the product make strategic sense?
    • Does the product fit your company’s overall growth strategy?
    • Will your company’s senior management support this project?

Based on the answers to the questions above, explain the reasons why IoT and connected cars are strategically crucial to the company.

• • • Consider the evolving customer needs and desires; how would they impact the company’s product plan?
    • What do you think competitors will do (if anything) in response to changes in your company’s development plan?
  • Do you think that accelerating the development of connected cars will help grow the company?