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.
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:
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.
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.
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.
|Markets and Competitors||Annual Cars & Light Trucks Revenue in 2020 (billions) TAM||Market share percentage for cars and trucks now||Projected CAGR over the next 10 years||Projected revenues in 2030 (billions)||Market share percentage for cars and trucks in 2030||Global Market for Connected Cars & Light Trucks (billions) TAM||Market share percentage for connected cars and trucks now||CAGR over next 10 years||Projected Conencted Car Revenues (billions) in 2030||Market share percentage for connected cars and trucks in 2030|
|Global||$ 3,227.70||100%||4.10%||$ 4,810.0||100%||53.9||100%||25.20%||$ 510.07||100%|
|Your Company||$ 187.10||5.80%||3.10%||$ 254.2||5.28%||3.83||7.10%||10.20%||$ 10.11||1.98%|
|BMW||$ 126.10||3.91%||3.70%||$ 181.5||3.77%||1.62||3.00%||25.50%||$ 15.67||3.07%|
|Toyota||$ 275.40||8.53%||3.90%||$ 404.5||8.41%||4.80||8.90%||24.80%||$ 43.97||8.62%|
|VW||$ 282.90||8.76%||4.30%||$ 433.1||9.00%||8.36||15.50%||23.20%||$ 67.30||13.19%|
|Note for student: Projected Global revenue for in-car connected services by 2030: $81.1 Billion|
|Company||Number of Sensors and Computers by 2025||Functionality Emphasis||Current Connected Services||5–10 Year Product Plans||Existing Partnerships|
|Your Company||65 sensors/30 computers||vehicle control, systems maintenance, entertainment, navigation, 5G||navigation, emergency services, service status||fully integrated information system, assisted driving, expanded service information, semi-autonomous vehicle within 10 years||Toyota, Waymo|
|BMW||125 sensors/50 computers||vehicle control/safety, IFTTT-customized applications and IoT connectivity, LTE||navigation, emergency services, smart house connectivity||fully integrated information system, semi-autonomous driving, connection to traffic information systems, introduction of fully autonomous driving early 2030s||Daimler|
|Toyota||100 sensors/40 computers||vehicle control, social media, safety, entertainment, navigation, 5G||navigation, emergency services, social media||fully integrated information system; semi-autonomous driving; connection to traffic information systems, expanded social media, and communications; consumer services; maintenance; fully autonomous vehicle early 2030s||Microsoft, Ford|
|VW||90 sensors/35 computers||vehicle control, maintenance, in-car consumer experience||navigation, emergency services, consumer orders, maintenance status||fully integrated information system; semi-autonomous driving; connection to traffic information systems; connectivity with smart home; fully autonomous vehicle early 2030s||Microsoft|
|in billions USD|
|1 Euro = 1.21 USD|
|1 Yen = 0.0094 USD||0.0092|
|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|