9-1 Project Innovation Approach Adam Knapp
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9-1 Project: Innovation Approach
Adam Knapp
SNHU MBA 580: Innovation and Strategy for High-Performance Organizations Dr. Charlene Spann
11/12/2023
Business Problem: Risk of losing market share
•
Per the CTO brief, the business problem we are facing; significant opportunity to improve our customer satisfaction and increase our repair and parts revenue streams by alerting customers to needed maintenance before an expensive breakdown occurs on the road. •
Goal: Due to changes within the market, a redesigned vehicle has become a need, not a want. To stay competitive within the market, we must be ready to launch a new IoT connected vehicle, in the same timeline as our competitors. Two options to reach this goal:
•
A. Introducing a radical innovative design in several years.
•
B. Introducing incremental improvements faster than we have in the past and improving our current models each year.
Option A: Launch a brand-new vehicle concept (discontinuous innovation)
Risks
•
Much more expensive alternative.
•
CTO mentions that it could cost as much as $6 billion to do a major redesign and equip with high end technology.
•
Do we have the resources to allocate to this project?
•
Will pulling resources from our already developed vehicles cause us to fall behind, not only on the redesign, but with our current models as well?
Benefits
•
Give our customers all the connectedness they desire in one vehicle.
•
Rather than making small incremental changes, this new redesign will take all customer wants into mind. •
Higher cost of vehicle
•
Once this newly designed vehicle is marketed and launched, we will be able to price it based off the market conditions for IoT connected cars.
Option B: Upgrade current models with the new IoT innovations Risks
•
Are these upgrades what the customer truly wants?
•
With our competitors developing major redesigns, will our customers be happy with incremental changes?
•
Are the upgrades we are adding/developing the upgrades our customers truly desire?
•
How will we make sure we are giving our customers what they truly want?
Benefits
•
Resources
•
We already have the necessary resources in place to develop and market with our current models of connected cars.
•
Develop and push to the market faster.
•
We can make the incremental upgrades and launch the new IoT in our connected cars faster than it would be to build a new design.
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