Innovation Strategies for Product Improvement

This assignment examines how organizations leverage different innovation ideas to improve their products and satisfy customer demands. The report emphasizes the importance of innovation in driving product development and enhancing customer loyalty. It delves into various ways organizations can innovate their offerings to attract customers and outlines the essential requirements for successful innovation. Furthermore, the report highlights the significance of historical context in shaping present and future innovation strategies.

INNOVATION WITHIN
BUSINESS AND ITS
ENVIRONMENT

Executive summary
Innovation means to change, alter the ideas and make a new idea is a innovation.
Innovation is done to modify the product and makes new. It create a new value of the product for
which the customer is ready to buy and pay for it. It increase the cost of the product. Innovation
is done by every organization. It is to be done in accordance with customer needs and wants
towards that product. The organization will modify the product according to the past sales of that
product. In every organization the past performance of the product reflects the present and future.
This report contain about the Rolls-Royce as a organization. It include its history and innovation.
There are different capabilities of the organization. It shows the future of industries in 2020 and
beyond it. The requirements which are needed by the organization in 2020 for innovation and
capabilities. To build the organization the future innovation are require and maintain the gap
between the present and future innovation.
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TABLE OF CONTENTS
INTRODUCTION...........................................................................................................................4
The organization and industry overview..........................................................................................4
The Organization and its innovation history................................................................................4
The Organizations existing innovation Performance and Capabilities........................................5
The Industry in 2016....................................................................................................................6
The future of the industry 2020 and beyond................................................................................6
The organizations innovation Requirements 2020 and Beyond..................................................7
Closing the innovation Gap.............................................................................................................8
Building the Future innovation Capabilities for the Organization..............................................8
Conclusion.......................................................................................................................................8
references.......................................................................................................................................10
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INTRODUCTION
Innovation is necessary in every business. The term innovation means to change the ideas
or to alters the idea from time to time. It create the value of goods and services for which
customer is ready to pay for it. Innovation reflects the economic cost of product. The products
that are developed after innovation are capable of satisfying the needs of customer. Innovation
helps the business as it attracts customers and enhances the goodwill. To develop the
organization at a grand level, innovation is required. The present report is about Rolls-Royce
Motors. It throws light on the history of the organization. It includes the past innovation of the
company and their performance and what are the impact of that innovation on present as well as
future. Report contain information about the future of industry in 2020 and the requirements that
are needed for innovation in 2020.
THE ORGANIZATION AND INDUSTRY OVERVIEW
The Organization and its innovation history
Rolls-Royce is the produce by BMW which is the subsidiary of it. Rolls-Royce Motors
was created in 1973 during the DE-merger of the Rolls-Royce car from the nationalised Rolls-
Royce Limited. Vickers has acquired the company in 1980 and sold to Volkswagen in 1998. The
leading contender is BMW who already supplied the internal combustion engines and other
components for Rolls-Royce and Bentley cars. Rolls-Royce has made many innovation which
helps to lead in the market. Company has made the innovation according to their customer needs.
It has innovates different models which is up to the satisfaction level of customer. It create the
model Ghost which is to be the same but it increases the level of comfort in each model that is
best part for the company. The Rolls-Royce Ghost is one of the luxury saloon from Rolls-Royce
Motor Cars. Company has create many strategy for innovation to give their best to customer.
Rolls-Royce has awarded their engineers for the innovation. The organization introduces changes
in each and every part of its model. For example, it brings changes in symbol, size of the cars,
headlights etc. It is an indication that the company is innovating its product from time to time
and increases the goodwill and the satisfy the need of the customer (Windahl, 2015). Innovation
done by Rolls-Royce is one of best example for the automobiles industry. It uses the technology
which helps them to innovate their ideas into reality. Technology and innovation are the heart of
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Rolls-Royce. They spend around £1.2 billion gross in research and development and filed for
600 patents. They always look to the customer needs and alters the ideas according to them.
The Organizations existing innovation Performance and Capabilities
The Capabilities of Rolls-Royce is very much strong whether it is related with
manufacturing, health management and technologies. Company is specialist in the design and the
development of high reliability. Company is using engine health management to track the health
of thousand of employs who are working in their company. Rolls-Royce has a huge presence in
UK. It generates annual sales of around £5.7 billion and the three-quarters of which comes from
exports (Masanell, and Ricart, 2010). That means the company are directly responsible for 2
percent of total UK goods exports. Moreover,company is responsible for approximately £6 in
every £1,000 of GDP generated in the UK. Performance of the company is always good from the
beginning which satisfy the needs of the customer.
Rolls-Royce has innovate many ideas which are in real form in their models. They
always alter their ideas and implement them into real. They always changes their views which
makes their product good. Company has made many models such as Ghost, Dawn, Wraith,
Phantom, Ghost Series II and Ghost Series II Extended Wheelbase etc which are at the comfort
level of customer. They makes different innovation in each model. Cutting edge innovation is
one of the innovation which make Rolls-Royce a world leading engineering company. It is using
different programs for innovation (Harris, and et.al.,2013). Main focus of that program are on
three areas which are Test and measurement, repair and inspection, servicing technologies, novel
designs and manufacture of large components and tools. According to company 2015 is the
biggest year of innovation. Engineers and technical capabilities are very much strong to
implement the ideas in the models of Rolls-Royce.
Company operates under their Quality management system such as Rolls-Royce global
policy, quality handbook, ISO 9001 (certified by Bureau Veritas UK), ISO 14001 (certified by
Bureau Veritas UK) and ISO 18001 (certified by Bureau Veritas UK) etc. which makes the
management better to work. Each and every system of the company is using the technologies.
The starting price of Rolls-Royce is $200,000 which makes difficult for the customer to buy it.
Models of the Rolls-Royce represent best in luxury and quality (Makkonen, and Johnston, 2014).
Performance of the company is leading towards sustainable business which helps the industry to
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achieve the Aerospace and Defense industry in the Dow Jones Sustainability Index 2015. Past
performance of the company indicates the present situation. Overall three of the things are very
much important to become one of the leading company in the market.
The Industry in 2016
There is lots of changes in the automobiles industry in year 2016 because the demand and
supply are increasing so much that create a huge competition among the automobiles industry in
the market. It is not clear that how much changes in coming years but it makes sure that
automakers and suppliers are no more longer to have a luxury sitting out of transformation. The
main challenges to the automobiles company in the global market are uneven (Ries, 2016).
Recent trends in automobiles industry are (Auto Industry Trends. 2016).
 Hybrids will remain a big hit
 Control of infotainment system will connected with home
 You don't have to park the car anymore
 Apple and Google will invade your car
 Vehicles will talk to each other and many more feature.
It increases the availability of data and information to the driver in coming years. In the
years ahead, the automobile companies makes so much changes that makes easier to the
customer. First experience of driving will be so much comfortable that makes an control over the
vehicle with a function such as self-braking, self- parking, automatic accident-avoidance features
and many more which makes the customer very comfort. If the automakers want to improve the
performance they have to take the risk in the product development. Automobiles company
having a positive impact but for sure with an positive impact there is a negative impact on the
global (Hamilton, and Webster, 2012). For example- if the automobile are increasing day by day
then it may causes the pollution which effects the environment. Before preparing any
automobiles the company has to take care of each and everything.
The future of the industry 2020 and beyond
In today's scenario, as a way the automobile are increasing the future of the automobiles
industry will be vast. As per the requirement of the people in the market. The automobiles
industry will be change by 2020 in three ways. The three ways are-
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 Electric vehicles- The people have to use electric vehicles in coming year because due to
shortage in production of fuel the people have to use electric vehicle in future. It will be
the future of automobiles in coming year (Mustak, 2014).
 Autonomous cars- In this the automobiles industry will use the technologies to run a
vehicle. The industry will make the car which is full of technologies. The semi-
autonomous safety technology will also used to safe from the accident (Rottmer, 2011).
Different technology has been inserted in the car in coming year by the industries.
 Vehicle-to-vehicle connectivity- In coming year there may be a up gradation in the
automobile industry that there will be vehicle-to-vehicle connectivity between two cars.
It is the situation of year 2020 which will also increase beyond this year. There must be an
continues growth in the automobiles industry. This the paper forecast that by 2020 the UK will
produced 2 millions vehicles in a year, which is compared to its current annual total of 1.5
million (Brines, and et.al., 2013). By 2020 the UK source is expected to increase from the level
of 41% to 50%. this situation will be increases beyond the year 2020. This will surely happened
in coming years that the automobiles industries will rapidly grow and can become one of the
leading industries in the global.
The organizations innovation Requirements 2020 and Beyond
If the automobiles industries are increasing day day they need the different ideas, views
and altering them from time to time. For this the organization will need different innovation
ideas to make the product different from other industry (Wetherly, 2011). The organization
requires-
 Technology for new research and development
 Improves the research, training and developments or research infrastructure
 Growth in a sectors like advanced manufacturing, materials, information technology and
communication technology
 Increase in research of private investment
this above all are the need of industries in coming year. The innovation must be unique other
than the industries. Using of different technology is also one of the innovation. The organization
will have to use more technology as compare to today to make product more effective. Beyond
the year 2020 the industries will need more faster technologies then the today's year. They have
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to create the new invention, ideas if the automobile sector are increasing as such. Industries will
be in need of different innovation terms beyond the year 2020. the industries has to regenerate
their plants, have to create new material, changes in the infrastructure and changes in policy and
create a new policy.
CLOSING THE INNOVATION GAP
Building the Future innovation Capabilities for the Organization
The automobile industries has to fulfill the innovation gap between the present and
future. It can be fulfilled by building the capabilities in the organization. By using the today
capabilities, the innovation can be brought about by the organization. Closing of innovation gap
is the key to survival of manufacturing industry. They helps the industry in future. The industries
have to save the innovation ideas for the future else build the innovation in future. Different
policy has to made to implements the capabilities. There are different capabilities such as engine
health management, technologies and manufacturing (Rottmer, 2011). These different
capabilities will help to fulfill the gap between the present and future innovation. If the
organization has using different innovation in the product in present then the organization has to
used that innovation by looking forward to future innovation.
The organization has to build the strong capabilities which can meet out with the gap
between present and future. The organization has to use different ways of technology for every
new innovation. Build of strong capabilities will help the organization (Brines, and et.al., 2013).
The organization has to create a strong transfer network between the employs so that the can
easily communicate to each other. In a organization there is proper safety system, navigation and
communication system.
CONCLUSION
As studied the whole report the conclusion is that how the organization is using different
innovation ideas to improve their product and satisfy the needs of the customer. Innovation helps
the organization in increasing the product and goodwill. There are different ways through which
the organization can innovate their products and attract the customer towards their product.
There are many requirement to the organization for innovation. The past history of the
organization reflects the present and future. There should be gap between present and future
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innovation. To maintain the gap between the innovation the organization has to build the proper
capabilities for future.
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REFERENCES
Journals
Windahl, C., 2015. Understanding solutions as technology-driven business innovations. Journal
of Business & Industrial Marketing. 30(3/4). pp.378-393.
Masanell, R. C. and Ricart, J. R., 2010. Competitiveness: business model reconfiguration for
innovation and internationalization. Management Research: Journal of the
Iberoamerican Academy of Management. 8(2). pp.123-149.
Harris, R. and et.al., 2013. Levels of innovation within SMEs in peripheral regions: the role of
business improvement initiatives. Journal of Small Business and Enterprise
Development. 20(1). pp.102-124.
Brines, S. and et.al., 2013. SME family business innovation: exploring new combinations.
Journal of Family Business Management. Vol. 3(2). pp.117-135.
Mustak, M., 2014. Service innovation in networks: a systematic review and implications for
business-to-business service innovation research. Journal of Business & Industrial
Marketing. 29(2). pp.151-163.
Makkonen, H. S. and Johnston, J. W. 2014. Innovation adoption and diffusion in business-to-
business marketing. Journal of Business & Industrial Marketing. 29(4). pp.324-331.
Books
Ries, E., 2016. The Lean Startup. Bentang Pustaka.
Hamilton, L. and Webster, P., 2012. The International Business Environment. OUP Oxford.
Rottmer, N., 2011. Innovation Performance and Clusters: A Dynamic Capability Perspective on
Regional Technology Clusters. Springer Science & Business Media.
Wetherly, P., 2011. The Business Environment: Themes and Issues. OUP Oxford.
Online
Auto Industry Trends. 2016. [Online]. Available through:
<http://www.strategyand.pwc.com/perspectives/2016-auto-industry-trends>. [Accessed
on 20 May].
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