Technological innovation is one of important issues for automobiles industry. In recent years, innovation has always been used in improving automobile’s efficiency, function and designs. To improve efficiency, automakers combine alternative energy with new technologies into new automobile design, including gas-electric hybrids, fuel cells and biomass fuel sources, like methane. Most of major automobile manufacturers including Ford, GM, Honda, and Toyota, etc., are introducing new hybrid models to save energy consuming cost. Automakers are bringing us a series of pleasantly surprised products with bold innovation. Engineers are committed to development of advanced technology, not only to improve fuel economy, and ensure safety, but also to meet the drivers’ satisfaction on the pursuit of driving pleasure. For example, at the latest New York 2012 International Auto Show, some smart and innovative cars have broken through the traditional automotive field, and will be put into the market recently. The flying car, the Transition, with two 27 feet long wings, looks similar with normal cars when the wings are in folded position. It can drive up to 70 miles per hour at the time of driving on road with normal traffic. As an aircraft, it has an ability of flying 130 miles per hour, and travelling at an altitude of 3500 to 8000 foot, with a fly range 489 miles. (Kolawale) Another example is BMW’s Mini Cooper Yachtsman, which is a kind of amphibious Mini car. Although it is not the first amphibious Mini, it is another great innovation for its new features. (Spira) These peculiar design and multifunctional vehicles represents the newest technology and innovation, and will play an important role in changing future auto industry and people’s lifestyle.
Managerial Innovation is another important issue faced by automobile industries. With the globalization of auto industry, automakers are facing a challenge of delivering global products in the international market. Under this challenge, automobile companies need to speed up products innovation and structure management, and effectively handle market overcapacity problems. (Howell) The auto industry executives should create the mechanism of accelerating innovation, and integrating technology development with business strategy. The role of the Research and Development (R&D) Center becomes an important section for innovation to start. For example, General Motors (GM) uses a portfolio approach in innovation programs and research projects. During GM’s innovation process, different R&D Center’s science labs have different missions, such as developing new propulsion technology, supporting the development of new materials, designing computer-aid system, and so on. (“GM R&D Center organization”) How to apply R&D innovation management is becoming important in auto industry.
Innovation is an inexhaustible motive power to promote the development
of human society continuously. In the same way, innovation is the key to
succeed and to maintain sustainable development for automobile companies. Under
the background of globalization, automobile industries are facing the challenge
in technological and managerial innovation. Automakers need to improve
self-innovation capacity and expand international cooperation with others. The practicing
managers need to deepen the systemic reform, improve the innovative
consciousness, and organically combine technology innovation with management
innovation.
References:
1. Howell, Larry. Innovation
in the automobile industry: A new era. N.p., n.d. Web. 8 Jul 2012.
<http://pubs.acs.org/subscribe/archive/ci/30/i11/html/11howell.html>.
2. Kolawole, Emi. The flying
car: Are we there yet?. N.p., n.d. Web. 8 Jul 2012.
<http://www.washingtonpost.com/blogs/innovations/post/the-flying-car-are-we-there-yet/2012/04/03/gIQAUQoptS_blog.html>.
3. Spira, Jonathan. BMW
Launches Amphibious Mini Cooper Yachtsman. N.p., n.d. Web. 8 Jul 2012.
<http://www.frequentbusinesstraveler.com/2012/04/bmw-launches-amphibious-mini-cooper-yachtsman/>.
It is an interesting article sure. I had not read about "Transition" and amphibious Mini Cooper Yachtsman.
ReplyDeleteCertainly lot needs to be achieved when it comes to alternate fuel. The price of available alternate fuel is so high that it wont generate enough demand until gas prices are very competitive. And hence the organizations wont spend much on the R&D to create efficiencies.
Yes, surely interesting. I am dreaming of having such multifunctional vehicles to give me more driving pleasures. Actually, automobile industry has too many words to say about innovation, including technical and managerial innovation. Say, like you mentioned increasing gas price, which is also mentioned in my article, auto engineers are making efforts to find an economic energy or alternative energy sources transferred from expensive fossil fuels. This is a trend for auto industry's sustainable development. Thus, they must spend much on the efforts of R&D innovation management.
DeleteGreat Article. Those are some interesting vehicles they are developing. Wow who would've thought we would see a flying car or another amphibious car. In my opinion the automotive industry players must be cautious as to when to launch such unique vehicles into the market. While it may be able to find a niche in the market, it may also alienate its core consumer base. While innovation may be part of corporate renewal, it maust not lost focus of its current units. The funding for the innovation will come from the current units, so also spending into R&D in those current units will allow the firm to invest in ideas such as the flying car. This is such an interesting post, I remember being young and thinking about flying cars like in the jetsons, to think we are getting closer to this is quite exciting.
ReplyDeleteYes, Innovation is bringing customers more inspiring experience and bold expectation, but I don’t think it right for companies to just focus on current units. Of course, Innovation doesn’t mean to lose current things but expect something new. However, any innovation may give up some obsolete things with bold actions from management. More importantly, innovation management must be taken in a proactive method. Human society is advancing because of innovation in a such way.
DeleteI think that innovation is definitely a key component to a company and their sustainability. That being said, I do believe that a company can overdue it. The thing with innovation is that the market needs to be ready for it and willing to pay for it. If there is no demand than that research has been in vain. These cars would be cool but I don't think that they are practical. The flying car can possibly cause a nightmare for the FAA and the boat car would be limited. It is important for companies to always be innovative and look to the future, but not over dream.
ReplyDeleteHi Mark, I do understand your points. Not only do the companies need innovation, but government departments need innovation to adapt to the increasing requirements of society. I think innovation is kind of systems engineering. We need innovation in both technology level and management level. It needs the efforts of all parties to improve and reform. Yes, it is not kind of dream or mirage.
DeleteInteresting article Raymond! Innovation is great at a certain point. Drawback of such big technological innovation are targeting market. For example Terrafugia transition- flying car which cost 200 - 250K, may be very useful for people who drive long distances. But how many of them can afford it? Even if the innovation is great and if there is no market for it, it is more likely that this innovation will not be successful.
ReplyDeleteI don’t think this innovation exists with the drawback of target market, but fill out the blank of the target market. From the market reaction to the debut of Terrafugia's Transition, the company said it has already accepted 100 orders although it will cost $279,000. Of course, such innovation products are restricted to cost, price and other objective conditions, may not become popular as general consuming products, but will have part of consumer groups. It needs a process for Technology innovation and to become popular in the market.
Deletenice
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