Description
Overview
In the highly competitive automotive market, it is critical to keep up with current technology to stay in or get ahead in the marketplace. To remain competitive, companies must innovate and integrate new technologies within their product lines and services.
Scenario
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 monitoring new technology developments that the company could integrate into its vehicles to enhance the usefulness of and improve access to the data acquired by the many digital sensors integrated into vehicle subsystems over the past 20 to 30 years. The technology trend of particular interest is the internet of things (IoT)—the interconnection of embedded devices, such as sensors and computers, over the internet. By taking advantage of this trend, the CTO believes the company can seize an opportunity to provide better service and predictive maintenance to its customers, improving customer satisfaction and adding additional revenue streams.
Based on briefings by the CTO and your Module One memo, senior management has decided to implement IoT into its product line. Your CTO has asked you to lead a cross-functional team to take this initiative forward. Your first task is to create a presentation that will include your recommendation for how the company should approach this business problem: should you use incremental or discontinuous innovation?
Specifically, should the company:
Design a completely new product line, based on the new technology (discontinuous innovation)
or
Add new technology features first into one model and then incrementally into the broader product line (incremental innovation)
The recommendation you and your team will make is an important first step in pursuing this new technology. Your presentation and recommendations will be reviewed by senior management. Until senior management approves your approach to this innovation, your cross-functional team will not have a budget and will not be able to start work on the innovation. You should utilize your work from the Module Two presentation and data analysis when making and justifying your recommendation in this first milestone. In Milestone Two, you will subsequently develop a go-to-market strategy. For your project in Module Nine, you will compile your work from Milestones One and Two, and include a proposed organizational structure to best integrate, produce, and market the new technology.
Prompt
Create a PowerPoint presentation to make a recommendation for how the company should pursue the IoT technology to remain competitive: either by discontinuous or incremental innovation. To make your recommendation, you will need to identify how the evolving IoT (sensor) technology fits into the company’s products and services and determine potential risks and benefits. You will also need to look at your competitors to see what they are doing. Finally, you need to analyze the company’s capability (resources) for pursuing the innovation. Use the information and data from the CTO Brief, Comparative Growth Data, Comparative Operating Statistics, and Comparative Product Plans to complete this milestone.
Explain potential risks and benefits for options A and B.
Overview (1 slide): Present the business problem and options A and B.
Option A (1–2 slides): Explain at least two potential risks and benefits for option A.
Option B (1–2 slides): Explain at least two potential risks and benefits for option B.
Compare your competition’s products and services.
Competitors (3–4 slides): Evaluate the competitors’ current products and services.
What are your competitors’ current products and services?
Are your competitors expanding in the current market? Explain how this impacts their market strength.
Analyze your company’s capability to pursue the innovation.
Complete a partial gap analysis (2 slides):
Does your company own the technology, or does it need to be purchased?
How is the technology currently being used in today’s products and services?
What type of technology is available to purchase?
Recommend the innovation approach your company should pursue.
Innovation approach (2 slides): Explain which innovation approach you are recommending and why.
Consider the different stakeholders—research and development (R&D), marketing, finance—when communicating your recommendations.
Include a description of the incremental or discontinuous product that you are recommending for R&D.
Include the sales forecasts for marketing.
Include a financial snapshot for finance.
What to Submit
Submit a 10- to 13-slide PowerPoint presentation with detailed speaker notes that highlight the important points you want to emphasize to senior management. If you include references, they should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations.
Unformatted Attachment Preview
in billions USD
Your Company
VW
BMW
Revenue
Operating Income
Net Income
187.1
5.7
0.9
282.9
20.5
16.1
126.1
9
6.1
Assets
Liabilities
Equity
310
270.2
39.9
590.6
443.2
147.4
275.9
203.4
72.5
Number Employees
190,000
304,174
133,778
Notes:
1 Euro = 1.21 USD
1 Yen = 0.0094 USD
0.0092
references:
Full Speed Ahead To The Future. 2019 Annual Report”. Volkswagen Group. 17 March 2020. Retrieved 17 March 2020.
converstion rages via Morningstar
Annual Report 2019″ (PDF). BMW Group. Retrieved 19 March 2020.
Toyota Annual Report 2020″ (PDF). Toyota Motor Corporation. May 12, 2020.
Ford Motor Company 2019 Annual Report (Form 10-K)”(PDF). sec.gov. U.S. Securities and Exchange Commission.
January 2020. Note: numbers disguised by multiplying by 1.12 except for operating income multiplied
by 10 and net income multiplied by20
Toyota
0. Retrieved 17 March 2020.
Exchange Commission.
e multiplied
275.4
22.5
19.7
484.7
293.9
190.8
359,542
Company
Number of Sensors and
Computers by 2025
Your Company
65 sensors/30 computers
BMW
125 sensors/50 computers
Toyota
100 sensors/40 computers
VW
90 sensors/35 computers
References:
https://medium.com/@water.street/autonomous-vehicle-partnerships-how-tech-companies-and-automakers-are-collaborat
https://techcrunch.com/2019/07/04/bmw-and-daimler-partner-on-autonomous-driving-first-results-of-team-up-in-market-b
Functionality Emphasis
Current Connected
Services
5–10 Year Product Plans
vehicle control, systems
maintenance, entertainment,
navigation, 5G
fully integrated information
navigation,
system, assisted driving, expanded
emergency services,
service information, semiservice status
autonomous vehicle within 10
years
vehicle control/safety, IFTTTcustomized applications and IoT
connectivity, LTE
fully integrated information
navigation,
system, semi-autonomous driving,
emergency services,
connection to traffic information
smart house
systems, introduction of fully
connectivity
autonomous driving early 2030s
fully integrated information
system; semi-autonomous driving;
navigation,
connection to traffic information
vehicle control, social media, safety,
emergency services, systems, expanded social media,
entertainment, navigation, 5G
social media
and communications; consumer
services; maintenance; fully
autonomous vehicle early 2030s
fully integrated information
navigation,
system; semi-autonomous driving;
vehicle control, maintenance, in-car emergency services, connection to traffic information
consumer experience
consumer orders, systems; connectivity with smart
maintenance status home; fully autonomous vehicle
early 2030s
artnerships-how-tech-companies-and-automakers-are-collaborating-to-innovate-cf44bc9e85a
ner-on-autonomous-driving-first-results-of-team-up-in-market-by-2024/
Existing
Partnerships
Toyota, Waymo
Daimler
Microsoft, Ford
Microsoft
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