Memo: Integration of Innovation

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 can communicate with each other by predicting impact and avoiding collisions. 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. The shared $53.9 billion global markets for 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 Company’s current growth rate in adding connectivity stands at 10.2% annually. It is a reasonable estimate but still lower than the overall industry. There is a need to increase the growth in the area 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 the Company provides are the ones that offer a 5G signal connectivity, maintenance of the system, and navigation in terms of functionality. However, the suite of functions can be compared to other competitors but still an advantage. If the proposed growth rate is anything to go by, then it will be possible to be right on truck with features offered by competitors in their vehicles, such as internet connectivity, in the next ten years.

Competitor’s Response

Competitors are expected to aggressively respond to any competition to outdo the operation taking place and the products that have been offered. Therefore, the 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 understand better the needs of the consumers and offer products that will meet the demands and gain the needed competitive advantage.

Understanding the Market

The market is well understood since the car buying population is vocal enough on what they desire for the delivered products. Also, the triumph and failures of the competitors based on their innovation will be made public. In addition to the Company’s long heritage 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 associated with embarking on implementing the new innovative technology into the product that is already in existence (Heizer and Render, 2014). The fact remains that if 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 implement 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 the most effective approaches are used in the process.  

Current Overall Growth vs. what is needed

The current vehicle technology implementation plan requires a growth rate of 3.1% annually. Since there is rapid growth in the market and acceleration taking place in advance, the implementation plan needs to be adopted faster 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 a laborious process for the first time. Most of the members are from a lengthy background where the focus is on the traditional auto industry, characterized by a period when the internet was not even invented. However, the stakeholders are in 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 adapt the vehicles to match the utility level. The technology that is being adopted will lead to changes in the future where there will be new developments. In the process, the consumers’ expectations towards the technology will be affected. Therefore, the plan and development need to remain fluid and be read for any changes that might occur.

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 be allocated towards the pursuit. The outcomes will make the Company’s operations always be ahead of the rest.

How Developing will help our Company

The investigation that was carried out in pursuit of massive connected vehicles will result in a propriety technology that will lead to additional revenue through licensing the usage. More so, the new technology developed can be applied in other industries. Therefore, it will be possible to grow the Company into new industries and markets that will 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.