The car industry has constantly provided us the consumer with a wide range of choices and varieties to suit our needs, but with the vast amount of competition how do car manufacturers attract our attention. Unique designs, impressive technology, price and customer service are all the areas consumers look for in a car, to meet these demands car manufactures need to constantly come up with new ideas to stay ahead of other competitors, introducing creative ideas which are better than what was in use previously is innovation. Innovation can also be implemented internally as it can help manufacturers be more efficient and reduce costs before products are released. Depending on resources and stature, each manufacturer will manage innovation differently, this project will outline how different manufactures manage innovation analysing each approach. To manage innovation manufactures need to identify and analyse the risks involved, this report will identify the risks involved and preventative measures manufactures will take to reduce risk.
This project looked at global trends in the automotive industry and outlined why innovation is so important. Literature research on innovation was undertaken to give a better understanding on innovation and outlining the different types. Innovation risks were looked at covering the major factors involved when a manufacturer makes the choice to innovate. This was followed by looking at different types of risk management techniques and how they aid manufacturers when making decisions. Case studies were analysed showing how innovation plays a major role in business operation and how it was managed by two of the main car manufacturers in the world. Innovation plays a major part in the car design and manufacturing industry and cannot be ignored as it can have a major impact on a manufactures performance so it is important to identify an effective approach to innovation management.
This project has shown the importance of innovation and why it is still not implemented by every manufacturer even though the benefits are known. It has also suggested an effective approach to managing innovation for different types of manufacturers.
I would like to give special thanks to my project tutor Dr David Pearce who has helped and guided me throughout this project, not only has he served as my supervisor but also encouraged and challenged me constantly in order to meet deadlines and make this project possible.
Aims and Objectives
Global Trends in the car industry
Trends in the UK car market
Comparisons between the current UK and worldwide car market
Innovation management literature
Scope of innovation management
The need for innovation in the car industry
Risks involved when innovating
Risk management techniques
Innovation management case studies
Toyota in 2004: Managing innovation in the new millennium
BMW’s Innovation Strategies
Analysis of innovation management
An effective approach to innovation management
Included within this introduction is the background that describes the problem to the project which leads into the project aims and objectives outlining what is to be achieved at the end of the report. A project structure will follow outlining the structure of the project and what the projects consists of.
1.1 Project Background
Companies spend vast amount of money in order to be innovative the market place as it can transform businesses...