9-1 Project Innovation Approach Adam Knapp

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Southern New Hampshire University *

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580

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Business

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Apr 3, 2024

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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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