Innovation and Idea Generation in Tesla: A Critical Analysis

This report explores the innovation and idea generation process in Tesla, Inc. and its impact on the automotive sector. It provides a critical analysis of Tesla's products and services, including the Autopilot mode in Model S and Model X. The report also offers recommendations for continuous innovation and growth in the company.

Innovation and idea
generation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
Background of Tesla:..................................................................................................................1
Literature review.........................................................................................................................1
Critical analysis of the product, service or process of Tesla:......................................................3
Recommendations and Justification............................................................................................5
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8
Online references:.......................................................................................................................8

INTRODUCTION
Innovation and idea generation is a creative process that encompasses development,
communication, generation of new thoughts and and concepts which become the basis of
innovation strategy(Blank, and Naveh, 2019). Innovation and creative idea in business helps
business to grab new opportunity and growth of the company in the competitive global
environment. Idea generation is process that develop with the problem generation. It also provide
better growth and effective productivity in the business. This report is based on Tesla, Inc,
company is American multinational electric vehicle and clean energy company located in Palo
Alto, California. This report include information about theory of innovation and idea generation
to product process or services development idea innovation. Also this include proposal for an
innovative product, process or services for organisation and an implementation of plan.
MAIN BODY
Background of Tesla:
Tesla is American brand of electric vehicle and clean energy company, current product of
company is electric cars, battery energy storage from home to grid scale, solar roof tiles and solar
panels and many more products and services. Organization ranked world's best selling plug in
and battery electrics passenger of car manufacturer in 2019. Tesla was founded in 2003 as Tesla
motors and the CEO of the company is Elon Musk. According to the CEO of the company Elon
Musk, the main motive of Tesla is to help expedite the move to the sustainable environment and
transportation energy obtained through electric vehicles and solar power. Tesla began to start the
production of their first car model, the Roadster, in 2009, this was followed by the model Model
S sedan in 2012, the model X SUV in 2015 and the high volume model 3 sedan in 2017. the
model 3 sedan is worlds all time best selling electric car with more than 800,000 delivered cars
through December 2020. with the largest manufacturing of electric cars Tesla build its brand
image in the mind of its target customers.
Literature review.
Innovation and idea generation in product and services:
As per the viewpoint of AF Bureau, 2020, ideas is the key to innovation and creativeness,
idea generation is the first step of product development. To innovation or introduce new product
and services in the market company needs to look at the feasible product options that can be
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executed. Looking at current issues and problems company can produce or introduce product and
services in order to provide solution of those problems and issues in the market. Different
organisations have their own idea generation process that helps them to understand about the
market demand and growth of the product in the market. But there are three main steps of idea
generation that company can choose or select of new product development or idea innovation. It
starts with the identification of problem or the question, identification of problems and questions
helps in better research about the innovation and product generation within an organisation. After
reorganization of problem the next step is to understand about the solution and innovation idea
that comes up with solution. In product and services company needs to know about the choice
and demand of the target customers from the particular industry. New product development in
the firm based on the various demand of customers or the problems face by the people in the
market.
Proposal plan for new product development:
As per the point of view of Steven C., 2020, The long term competitiveness of company
is depends on ultimate success of product development and capabilities of product and services
in the market. New product development helps in the new market formation, creating new idea,
creating new industry, and reviewing the organisation. It also helps in the development of new
customers base in the industry for the better growth and success. The first step in the
development of significant project plan is to define and map different types of development
projects, defining project could provide company insight about useful information about how the
resources should be allocated. In this two classification is included first is degree of change in
product and second is degree of change in production process. High change in product and
services requires high resources requires. There is also five types of requires unique combination
of development of resources and management style. Thus, new product or services development
needs huge planning and research in order to gain competitive advantages.
Importance of innovation and idea generation in business:
As per the viewpoint of Siyana Sokolova, 2020, In order to thrive and evolve business the
continuous generation and implementation of new idea and innovation is important. The first
thing business needs to do is promote the idea generation in order to build the culture of
innovation within organisation. It is essential for businesses to have right tool and resource that
helps in better functioning of new idea and innovation in business. The employees and staff
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members of organisation needs to focus innovative ideas that promote more innovation in the
organisation. Innovation and creativeness in business always leads organisation towards the path
of success. Creative exploring helps in better growth and increase the level of effectiveness in
productivity.
Critical analysis of the product, service or process of Tesla:
Innovation and idea generation in product development helps organisation in better
growth and achievement of competitive edges in the industry. In the context of Tesla, company
focused on making innovative product and services for the better growth and innovation in
automotive sector(Cramer-Petersen, Christensen, and Ahmed-Kristensen, 2019). Organisation
wants to create an entire sustainable energy ecosystem, they also focus on unique set of energy,
power-wall, power pack, and solar roof. The main motive is to provide sustainable ecosystem by
the various products and services. The main goal of company is to provide safest factories in the
world, Tesla is taking productive approach to ensure the safety. Innovation in the new vehicles of
the company attract customers towards the brand and its products and services. Company launch
its cars with more innovativeness that provide better growth and success to the company.
Autopilot mode of Tesla has hue impact on its brand image and growth in the automotive sector.
Model S and Model X, cars of Tesla introduce Autopilot mode that was the biggest innovation in
the automotive industry, CEO of company introduce these models of cars in the market that was
huge change and innovation in the industry.
Autopilot mode on Model S and Model X:
This innovation and idea generation made huge impact on the mind set of the customers
and increase the level of innovativeness in automotive sector(Gama, Frishammar, and Parida,
2019). Autopilot mode in model S and model X can be engage on the most of the highways, this
is an advanced driver assistance system feature offered by the company. Model S and Model X
has various features such as lane centring, self parking, traffic aware cruise, automatic lane
changes, semi autonomous navigation on limited assess free ways and the ability to summon the
car from parking spot or garage. The car require constant supervision from the driver. Tesla also
clam about their innovative features in the car that it reduce accidents caused by the driver
negligence and fatigue from long term driving. In October 2020, the autopilot mode of the
company ranked first in the “performance and capabilities” and “ease to use” category. As an
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upgrade to the base autopilot capabilities company is looking forward to introduce full self
driving cars in the future. This strategy of Tesla could assist company towards better growth and
opportunities to build better future in the automotive sector.
Schumpeter's innovation Theory of Trade cycle:
The innovation theory refers to the any new policy that business person adopt in order to
enhance business and its production, or increase the demand of product and services(Huesig,
and Endres, 2019). The first category include all those activities that reduce overall cost
production and increase the level of productivity in the company. This include production of new
machinery or product that helps business to attract more customers and increase the level of
customer base. This helps businesses to increase the effectiveness in their pre existing product
and services also this include more profitability and growth of the company. In first stage
business person ensure that they reduce the cost of production and increase the level of
profitability(Kuczmarski, and Kuczmarski, 2019). This can enhance the growth of company in
competitive environment, also increase innovation in the organisation helps to gain better
productivity and and over all growth. Innovation and idea generation increase the level of
effectiveness in the business also introduce the level of growth within business.
In the second stage of innovation it includes the activities that helps business to increase
the demand of the product and services. Such as introduction of new quality and of new products
and services, it also include finding new sources of raw, new variety of product etc. innovation
theory helps business to gain more profitability, it also increase the level of effectiveness in
various product and services of the company. Various activities that provide better growth and
innovation to the company helps in effectiveness and profitability. Finding new source of raw
material and innovation in the company enhance its productivity.
 Innovation of new product: In the context of Tesla, this stage company used for the
improvement in the the market and development of product and services(Lee, Hallak,
and Sardeshmukh, 2019). In this stage Model X and Model S of Tesla reflect innovation
for better competitive advantages and growth of the company. Organisation introduce this
models in industry with the innovative feature of Autopilot mode in the cars, this feature
helps company to increase the level of productivity and growth in the business. The
technical innovation in the car make huge impact on the mind of customers and increase
the level of profitability of business. The self control car is a best strategy that enhance
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the market growth and customers base of the company. With innovative features Model S
and Model X is build for the utility and performance, it increase the efficiency and
effectiveness. Tesla always focused on the innovation and new idea generation within its
business. Effective growth of the company is based on the better growth and innovation
of the product and services. Thus, this Car models of Tesla helps company to gain better
competitive advantages and growth in the market.
Strength of Model X and Model S:
This models of Tesla make an huge impact on the automotive sector, with navigate on
autopilot mode cars can engage on most highways. This feature of Tesla cars improve existing
functionality in order to make cars more capable over time. Current feature of cars require active
driver supervision(Liang, Shu, and Farh, 2019). This model strengthen the business of receptive
company, also help to gain competitive edges in the market. With the innovation and advance
features company also focus on providing more sustainable environment and ecosystem to the
world. Sustainable cars makes huge impact on the profitability, it attract more customers towards
the brand. High quality of these models provide effective functioning and satisfaction to the
customers. It helps the business of Tesla to grow in the competitive market and increase the level
of customers base. Thus, these innovative models of Tesla assist company towards the better
growth and innovation in the market. It also enhance the capability of business to grow
internationally. Enhancement of innovativeness increase the level of profitability in the business.
Enhancement of organisational growth is important aspect of business to grow in competitive
environment.
Thus, both the model of the company increase the level of profitability and enhance its growth in
the market.
Recommendations and Justification
From the above information it can be understand that innovation and idea generation is an
important aspect of business that provide better growth and high level of profitability. All the
innovativeness in the business increase the level of growth and profitability. Tesla is well
established organisation that focus on innovativeness with more sustainable vehicles and
services, this is the main reason way company is successful. Product and services of Tesla has
command on the innovation and development in the market. Company focused on providing
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better customer experience and growth in the market. It can be recommended to the company
that continuous innovation in their business can help them to grow and increase the level of
profitability. Company should focus on particular segment of market that helps them to reach to
the potential customers and increase the level of production in the company. The main strength
of Tesla is their innovation and new idea generation with time and it can helps them to enhance
the customers, company can introduce their cars in new market segment where the autopilot
mode is unique and innovative. Tesla should focus on the reduction of production cost so that it
can help them to gain more profitability and growth in the market. This step of innovativeness
helps business to increase the level of profit and growth in competitive market.
It also can recommended to the organisation, the Model X and Model S is not totally self
automotive, and this could impact on its effective functioning in the future. Company should
focus on manufacturing the cars that can perform without any supervision of driver. This cars
could helps the company to increase the level of effectiveness and innovation in the automotive
sector. Introducing innovativeness in the market could provide company better growth and
success. Company can also introduce Hybrid vehicles that can work with both electricity and
fuel. This could be a huge advantage for the company to innovate and increase the level of
effectiveness in business. Hybrid cars can help the customers in better functioning and
effectiveness in the market. Thus, company is well established and developed and make huge
impact on the innovation in automotive sector. This also provide company enhance its level of
profitability and growth in the company. There are various functions that provide better growth
to the company and increase the level of effectiveness in the business.
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CONCLUSION
From the above information it can be conclude innovation and idea generation helps
business to increase the level of profitability and growth in the market. Innovative product and
services increase the level of customer satisfaction. Schumpeter's innovation Theory helps
business to understand about the various way of innovation and new idea generation. Theory
helps businesses to understand about the needs and wants of new product innovation. Innovative
product and services increase the level of profitability of business, it also enhance the capabilities
and growth in pre existing market. New ideas generation in product and services increase the
level of market growth and increase high level of customers base in the market. Innovative
product and services strengthen business enhance the capabilities to attract more customers
towards the brand.
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REFERENCES
Books and Journals
Blank, T.H. and Naveh, E., 2019. Asymmetric association of resources: Conditions under which
the separation and integration of idea generation and implementation support product
innovation. IEEE Transactions on Engineering Management.
Cramer-Petersen, C.L., Christensen, B.T. and Ahmed-Kristensen, S., 2019. Empirically
analysing design reasoning patterns: Abductive-deductive reasoning patterns dominate
design idea generation. Design Studies, 60, pp.39-70.
Gama, F., Frishammar, J. and Parida, V., 2019. Idea generation and open innovation in SMEs:
When does market‐based collaboration pay off most?. Creativity and innovation
management, 28(1), pp.113-123.
Huesig, S. and Endres, H., 2019. Exploring the digital innovation process: The role of
functionality for the adoption of innovation management software by innovation
managers. European Journal of Innovation Management.
Kuczmarski, S. and Kuczmarski, T., 2019. How rewards fuel or fail innovation. Strategic HR
Review.
Lee, C., Hallak, R. and Sardeshmukh, S.R., 2019. Creativity and innovation in the restaurant
sector: Supply-side processes and barriers to implementation. Tourism Management
Perspectives, 31, pp.54-62.
Liang, J., Shu, R. and Farh, C.I., 2019. Differential implications of team member promotive and
prohibitive voice on innovation performance in research and development project teams: A
dialectic perspective. Journal of Organizational Behavior, 40(1), pp.91-104.
O’Reilly, C. and Binns, A.J., 2019. The three stages of disruptive innovation: idea generation,
incubation, and scaling. California Management Review, 61(3), pp.49-71.
Taylor, D., King, R. and Smith, D., 2019. Management controls, heterarchy and innovation: a
case study of a start-up company. Accounting, Auditing & Accountability Journal.
Yu, J. and Liu, C., 2020. The impact of employee participation in online innovation communities
on idea quality. Kybernetes.
Online references:
AF Bureau, 2020,Innovation and idea generation in product and services. Available through:
<https://hbr.org/1992/03/creating-project-plans-to-focus-product-development>
Steven C., 2020,Proposal plan for new product development. Available
through:<https://www.viima.com/blog/idea-generation>
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