1-3 Memo: Integration of Innovation
Is it real?
Need and Desire for Connected vehicles
Safety and convenience is the desire of most people. The connected cars with have the ability to communicate with each other through making a prediction on impact and avoiding collusions. The needed maintenance and repairs will have been warned (Javadian, Babu and Talari, 2013). Also, the navigation and operation of the vehicles will have been made easy.
Potential Market Size
The potential market size is massive. At the moment the shared of the $53.9 billion global market for the connected cars stands at $3.83 billion. Based on the projected trends, it is expected that the connected cars and trucks in the next ten years will stand at 10.2%. Therefore, by 2030, the potential market size is estimated to be worth $510.07 billion in the global market.
Satisfying the Market
The current growth rate of the company in terms of adding connectivity stands at 10.2% annually. It is a good estimate but still lower than that of the overall industry. There is a need to increase on the growth in the area so as to meet the set growth target (Javadian, Babu and Talari, 2013). In the process, it will be possible to satisfy the market that the products will be offered.
Can we win?
Our Competitive Advantage
At the moment the vehicles that are provided by the company are the ones that offer a 5G signal connectivity, maintenance of the system and the navigation in terms of the functionality. However, the suite of functions can be compared to other competitors but still acts as an advantage. If the proposed growth rate is anything to go by, then in the next ten years, it will be possible to be right on truck with features offered by competitors in their vehicles such as internet connectivity.
Competitor’s Response
Competitors are expected to aggressively respond to any competition with the intention of outdoing the operation taking place and the products that have been offered. Therefore, majority of the capital needs to be allocated towards safeguarding the research and development of the company (Javadian, Babu and Talari, 2013). A key intention is to better understand the needs of the consumers and offer a products that will meet the demands and gain the needed competitive advantage.
Understanding the Market
The market us well understood since the car buying population is vocal enough on what they desire on the products being delivered. Also, the triumph and failures of the competitors based on their innovation will be made public. In addition to the long heritage of the company towards automobile marketing, it is believed that there will be no problems with the adoption and understanding of the new market.
Is it Worth Doing?
Acceptable Risk
There is a risk that is associated with embarking on the implementation of the new innovative technology into the product that is already in existence (Heizer and Render, 2014). The fact remains that is there is a failure in per-taking the market, the risk associated will be much greater.
Strategic Sense in Launching
If that is the case, then it makes total sense to have an implementation of an aggressive innovation program. The focus will be more on the department for connected vehicles which will immediately become and remain competitive in the market if there is use of the most effective approaches in the process.
Current Overall Growth vs. what is needed
The current vehicle technology implementation plan requires a growth rate of 3.1% on an annual basis. Since there is a rapid growth in the market and acceleration that is taking place in advance, the implementation plan needs to be adopted at a much faster rate if the intention is to gain the needed competitive advantage and remain relevant in the market while facing competition from other companies.
Senior Management Support
The support to be offered might be an uphill process for the first time. That is because most of the members are from a long background where the focus is on traditional auto industry which is characterized by a period where the internet was not even invented. However, the stakeholders are in the different positions because of their intelligence, savvy for business and a better understanding of technological needs.
Importance of Connected Cars to Our Company
Evolving Customers’ Needs and Desires
As the base for the consumers becomes more immersed, there is a need to adopt the vehicles to as to match the utility level. The technology that is being adopted at the moment will lead to changes in the future where there will be new developments. In the process, the expectations of the consumers towards the technology will be affected. Therefore, the plan and development needs to remain fluid and be read for any of the changes that might take place.
Competitors Response to our New Growth Plan
Competitors will be able to respond to the plan for growth through increasing on their own to levels that will surpass what has been set (Heizer and Render, 2014). It will be inevitable to create a new space for the industry where more resources will have to be allocated towards the pursuit. The outcomes will make the operations of the company to always be ahead of the rest.
How Developing will help our Company
The investigation that was carried out in pursuit of a massive connected vehicles will result into a propriety technology that will lead into an additional revenue through the licensing of the usage. More so, the new technology that has been developed can be applicable in other industries. Therefore, it will be possible to grow the company into new industries and markets that will be go beyond the production of vehicles.
References
Heizer, J. & Render, B., (2014). Operations Management. 11th ed. Pearson Education.
Javadian, A., Babu, N., & Talari, F. (2013). Just-in-Time manufacturing system: From introduction to implement. International Journal of Economics, Business and Finance, 1(2), 7-25.
Leave a Reply