Innovation Management and Sustainable Performance

This assignment delves into the world of innovation management and its relation to sustainable performance. It covers a range of topics, including design creativity, strategic technology partnering capabilities, and energy recovery systems. The assignments provided are from various academic sources and cover research papers, journals, and books. It is essential for students to understand how innovation can lead to sustainable growth and development.

MANAGING
AND
INNOVATION
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Table of Contents
INTRODUCTION...........................................................................................................................3
MAIN BODY...................................................................................................................................3
1. Introduction of Toyota and BMW company......................................................................3
2. Map and Critique the innovation space of Toyota and BMW setting out existing practices.5
3. Identify and Critique the innovation capability of Toyota Motors and BMW Group........8
4. Innovation Management of Toyota using Tidd and Bessant's 4 step model. ..................10
5. Recommendations to improve the innovation strategy and innovation management in
Toyota...................................................................................................................................11
CONCLUSION..............................................................................................................................13
REFERENCES..............................................................................................................................14
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INTRODUCTION
Innovation is very important to the continuing success of the organisation. It is process
that involves multiple activities in order to uncover the new ways to do things. Innovation
created values for which customer pays and it also satisfies the expectation and needs of
customers. It is very important for company' survival, economic growth and development as well
as success of company. In addition to this, it is also very important that company should support
the culture of innovation as well as make employees feel worth for the company. It will boost
employees to create quality of ideas in return. Thus, in order to achieve success, it is very
important that company should manage innovation (Akampumuza & et.al., (2017).
In this present report, Toyota and BMW company will be chosen for assessment. Both
the organisations are leading in the area of innovation and invention. Toyota is a multinational
automotive manufacture company. Its headquarters are located in Toyota, Aichi and Japan. It is
sixth largest company across the world. It was founded in 1937 by Kiichiro Toyoda. On the other
hand, BMW AG is a German multinational automotive company. Its headquarters are located in
Munich and Germany. It is one of the twelfth largest producer of motor vehicles across the
world. Company was founded in 1919 by Karl Rapp. This present report will discuss the
innovations done by both the companies.
MAIN BODY
1. Introduction of Toyota and BMW company.
Toyota Motor which has the original name is known as Japanese Toyota Jidosha KK,
Japanese parent company of the Toyota Group. In 1937, Toyota was founded by Kicchiro
Toyoda. In 2008, Toyota become one of the largest automobiles manufacturer across the world
by its volume. The major operations of Toyota is in the city of Toyota which is located in Aichi
Japan. Toyota has faced many ups and downs in its nearly 80 years of history. At present
company is operating in global in 28 counties with 53 overseas manufacturing companies. The
vehicles of Toyota are sold in more than 170 nations as well as regions (Analytis, Sadler &
Cutkosky, (2015). In 2016, the list of Forbes, Toyota is the world largest organisation across the
world by revenue, asserts, profit and market values of different organisations. There are 369,124
employees are working in the company. The main products of Toyota motors are automobiles,
commercial vehicles, engines and luxury vehicles.
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In terms of innovation also, Toyota is leading in the world. Toyota is the first company
that had s launch hybrid car on the roads. In addition to this, In 2011, Toyota Motor Corporation
has started a program that builds robots which provide solution to some life's irritation as well as
misfortune. Toyota has invented a robot which is known as Human Support Robot (HSR). The
main purpose of this innovation is to improve the quality of people. In addition to this, Toyota
also innovate a robot which are designed to help in the rehabilitation of injured patients in
hospitals (Birkinshaw, Zimmermann & Raisch (2016). They are called Walk Training Assist as
well as Balance Training Assist robots. It is also one of the best innovation that are very helpful
for the people.
Another innovation in the cars which is integrated safety technology. This feature is one
of the most useful and most preferable innovation for the customers. It is designed to avoid a
crash autonomously. It is the system of pre-collision with Steer Aid usage radar sensing to spot
pedestrians a swell as other hazards whether day or night. In order to ensure safer motorways,
Automated Highway Driving Assist (AHDA) was developed. In addition to this, in safety sense,
Toyota is contributing huge amount of investment such as Lane Departure Alert, Auto High
Beams, Dynamic Radar Cruse Control. Lane Departure System is a camera that help drivers to
stay at his own lane (Budde, Alkemade & Hekkert, (2015). Camera detects the lane marking in
the raids.
Auto High Beams- This is also one of the best technology which has stopped many
accidents. This system uses the camera in order to detect the coming vehicles coming on the road
and it automatically balances the high and low beams. Pedestrian Detection helps to detect
pedestrian under the certain conditions. It is the system that alerts the drivers if any pedestrian in
on the way. In addition to this, one of the best innovation is the safety system of Toyota is its
Dynamic Radar Cruise Control which observe the speed as well as the distance of the vehicle
and it also adjusts the speed in accordance with the situations.
Wireless EV Charging is the recent innovation of Toyota (Cano-Kollmann & et.al.,
(2018). This is advance technology that allows cars to be charged by parking in coalition with a
coil set into the surface of the ground. In this charging, there is no need of connectors and cables.
But this innovation is developed for hybrid cars or electric cars.
BMW AG- Bayerische Motern Werke AG engages in the manufacturing as well as sale
of automobiles and motorcycles. It is German Automobile. Motorcycle sand engine producer
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which was founded in 1916. Its headquarters are located in Munich, Bavaria by Karl Rapp. In
BMW Group 123,932 employees are employed in automotive segments whereas 3506
employees are employed in the segments of motorcycles. BMW Group has 30 production
location in 14 countries (Chen & Midler, (2016). There are three popular brands of BMW which
are BMW, MINI and Rolls- Royce Motor Cars. In the Forbes list, BMW has the best employers
in 2018 and it has top multinational performance in 2017. In 2017 the revenue of the company in
€98.678 billion.
In the area of Innovation., BMW is achieving the great heights of success. They are
moving the people ahead. The main focus of BMW Group is to optimised the processes of
countless production as well as developed innovative technologies. For this they are producing
vehicles that run from the power of electricity along with hybrid electric vehicles. They are also
focusing on the interior designing of cars as the interiors designing of BMW is very beautiful. It
cannot be beat by any other company. Automatic car parking is one of the best as well as
unbeatable innovation in the world (Egger, (2015). It is the system that park the car in safer way.
It solves many issues of space in urban area. With this system, user cab park as well as retrieve
their vehicle without driving. It allows the vehicle to be stand in smaller area that reduces the
need for huge ramps, stairs as well as driver lanes. This innovation is very effective for the
owners of commercial offices as well as for drivers.
In addition to this, connectivity is also one of the best innovation that allows drivers to be
in connection with the surrounding as well as other traffics such as news, weather, google local
search and many other information (Egger, (2015). With the help of this technology, drivers can
access any news or information about his destination traffic and other news easily. On the other
hand, they are moving customers more on comfort, safety as well as efficiency by innovating to
autonomous driving in new models.
2. Map and Critique the innovation space of Toyota and BMW setting out existing practices.
With the globalisation, innovation has become the key to achieve success. Company's are
investing huge amount of fund and resources on innovation only because it makes the product
and services entirely different as well as it also raise the profitability of the organisation. In terms
of Toyota and BMW, both are leading in the world by launching new ideas and thoughts in there
models. Innovation Space is the scope of change (Gabriel-Buenaventura & Azzopardi, (2015). In
simple words, innovation space means the area where company can bring advancement and
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innovation in the features. There are two dimensions which defined the innovation space are
measure of the breadth as well as impact of innovation. This innovation space admit that the term
innovation is utilized to depict many activities as well as events that are contrary in importance
but which are genuinely innovative. The behaviour of innovation along with the activities are
essentially different depending on where they lie in the space. If company does not recognize
these differences can lead to striking mistake in order to create, develop as well as exploit
innovations as they arise (Kilubi (2016). There are four areas where organisation have scope for
innovation which are as follows-
 Incremental Change- new attribute, function, version or configuration.
 Institutional Change- alternative solutions to known needs or issues.
 Enabling Change- ability to do something new or differently.
 Transformational Change- a cardinal as well as qualitative change in the way
people pass there time.
The focus of Toyota and BMW-
 Focus on operations- Serving existing markets and focusing on best practices.
 Focus on Expansion- Developing new technologies and market and focus on
growth.
Innovation space also present that innovation can be utilized both fundamental and
incremental improvement. For example- Toyota is innovating in its interior designing which is
not effective as BMW whereas BMW Group is focusing on increasing its mileage and fuel
efficient as it is not good as compare to Toyota (Lin, (2018). It is very important for both the
organisation to invest in innovations on continuous basis in order to sustain in the market.
There are two types of innovation space which are as follows-
 Physical Innovation Space
 Virtual Innovation Space
Physical Innovation Space- It is the type of innovation space which is actually rich as
well as multifaceted space that includes both meeting and individual workspace. It required to be
considered far more widely as compare to traditional spaces like workplace or meeting rooms.
On the other hand, it is also very important that in the company their should be an informal space
such as water cooler, rest area where employee gathers (Otani & Yamada, (2017). In order to
bring productivity in the performance of employees it is very important that company should
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provide them comfortable or luxury chairs, natural lights, colour because white walls or old
furniture leads to laziness in their work. It is all about the informal space. In addition to this, it is
also important that company should have informal spaces like coffee station, canteens etc. These
are the internal spaces which is very important to fill. Thus, it is also given positive impact on the
mind of customers. Thus, Toyota and BMW should bring improvement in the showrooms in
order to raise the productivity and performance of the company (Slack & Brandon-Jones, A.
(2018).
Virtual Innovation Space-It is a type of innovation which have critical space for
innovation as it effectively enables scale as well as engagement of employees across the
boundaries and time zones of company. Whereas, physical space can foster deep engagement as
well as is really very useful for seeking alignment, team building and decision making. The
virtual space executed tow very essential tasks which are related to organisation innovation
(Studeny & et.al., (2017). By collecting the ideas as well as opportunities in the business
environment company can bring the best innovation.
Innovation Space 4P's Model
There are four categories included in this model which are product innovation, process
innovation, position innovation and paradigm innovation. In order to fill the space of innovation,
Innovation Space 4P's model is one of the best tool for analysis.
Product Innovation- This is the type of innovation which describes everything which is
included in the products and services offered by the company. It is very important that company
should focus on their existing products they are offering and bring changes in the existing
products. For example- Toyota and BMW should bring changes in their existing vehicles rather
than on launching of new models (Suarez, Utterback, Von Gruben & Kang, (2018).
Process Innovation- This is the type of innovation which includes the ways as well as
changes which products and services are created or delivered. The best focus of the company
should be on the customers. Toyota and BMW both companies should focus on the needs and
expectations of customers. Like- The decisions of Toyota Motors to manufacture the cars for
medium class people is the best decisions of company. For example- the series of ETIOS is the
best car with best feature and for medium class of people. Similarly, BMW Group also have
scope to enrich the mileage capacity so that customers are more attracted to buy the cars.
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Position Innovation- This is the third P in this model which are focused in order to
frame as well as communicated with the goods and services. The position innovation is directly
related with the product and process innovation (Studeny & et.al., (2017). For example- The
models launched by BMW and Toyota has now become perceived fashion and fame for
customers.
Paradigm Innovation- It is the last step in the innovation space model. Basically, it is
the change in the primary mental models what limited company does. It is somewhat specific
category of innovation. It is somewhat radical change. For example, hybrid cars manufactured by
the Toyota is the greatest innovation as it is radical change in the history of vehicles.
In case of Toyota Motors and BMW Group, both have many scopes and opportunities for
bringing innovation (Egger, (2015). It is very important that they should identify the space and
then go for innovation. In case of Toyota Motors, they are focussing on fuel efficiency and
hybrid and self-driving cars. But they have space of innovation as they can bring innovation in
their interior designing such as the area of comforts and luxury. The interior designing of BMW
is very attractive and beautifully design. On the other hand, BMW Group is also bringing
innovation on continuous basis. The designing of cars and there features are very attractive and
beautiful. But the cars they are manufacturing are not affordable to medium class people. Thus,
company should manufacture the cars for medium class group so that they can raise the
profitability of company (Budde, Alkemade & Hekkert, (2015). Moreover, the capacity of
mileage of BMW is not up to the mark, vehicle made by them are not fuel efficient. Thus, they
should have innovation space in the area of mileage capacity or fuel efficient. These are areas
where company can bring innovation by filling the space of innovation.
3. Identify and Critique the innovation capability of Toyota Motors and BMW Group.
Toyota and BMW Group are one of the leading organisations across the world in terms of
profitability as well as in the filed of innovation. They invest huge amount of fund on innovation
and on in research and development. They both give tough competitions in the market.
Innovation Archetypes is the original model of a person, ideal afters each others are patterned,
copied, emulated recognised by all. There are four types of innovation which are as follows-
Innovation Doer- The practitioners of innovation are the innovation doers. Company
who bring innovation on regular basis are called as Innovation Doer (Analytis, Sadler &
Cutkosky, (2015). These practitioners are on the front lines as well as feel both motivated and
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accountable to bring new along with useful ideas. They do not fear to bring innovation as they
implement the ideas as soon as possible. In addition to this, systematic approaches may or may
not be used by them. Situation are being approached by them with natural inclination in order to
change the position instead of preserve it.
Innovation Watcher- The people who have deep interest or compulsion with inn ovation
developed by others. They are hypnotized by freshness. In terms of organisations, there are some
companies who have deep interest on the innovation made by others (Chen & Midler, (2016).
They use the particular innovative service or product, read and search about it and after they also
report or study on it. They wonder at what others make over but stop brief of serious innovation
on themselves. Moreover, they also study useful insights about the innovators as well as
innovations. By searching and studying on the innovation done by others, they also find and
discover the issues and problems or shortcomings in the particular innovation and then generate
new ideas.
Innovation Preacher- The people who raise there voice and inspire or encourage others
of the need to bring innovations. They form the case for change as well as innovations. These are
the people or company who relate the innovation to daily lives and along with international
economy. Both hope and fear are developed by them. Hope or expectation is terms what can be
developed through innovation as well as fear from the outcomes of not innovating from being
discontinuous.
Innovation Teacher- These are the teachers who teach and guide methods as well as
processes of innovation. In order to create new ideas, they guide the entire process and methods
of innovation. Company or people become innovator by the teaching of the tutors. They teach all
the methods of innovation as well as entire procedure of innovation is very detailed manner.
In the case of Toyota Motors, they are the Innovation Does, Innovation Preacher and
Innovation Watcher (Analytis, Sadler & Cutkosky, (2015). They bring innovation on regular
basis as they invent huge amount of fund and resources on bringing innovation in order to satisfy
the needs and expectation of customers. In addition to this, The innovation bring by company in
safety senses are incredible and outstanding. They are on the front lines as well as feel both
motivated and accountable to bring new along with useful ideas for customers. They also help in
reducing the accidents on roads by very innovative safety senses such as Automated Highway
Driving Assist, Dynamic Radar Cruise Control, Auto High Beams and Pedestrian Detection.
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Since the operation and till now the innovation of Toyota has not been stopped. In addition to
this, Toyota is also Innovation watcher as they have deep interest on the innovation done by
others. They observe others and bring more improvement in hybrid cars. Moreover, Toyota is
also an Innovation Preacher as they encourage there employees and others to adopt innovation as
it is very essential for the smooth flow of the process of innovations.
In case of BMW Group, they are also the Innovation Does and Innovation Watcher. In
the area of luxury and comfort BMW is on the top list. The interior designing of BMW is ever
changing and it is completely new in every models (Egger, (2015). The customers are highly
satisfied with the services and products of BMW company. In addition to this, BMW is also an
Innovation Watcher as they have deep interest on the innovation done by others. They observe
others that what other are doing and then they bring changes as per the study and report of others
innovation.
4. Innovation Management of Toyota using Tidd and Bessant's 4 step model.
Innovation is the most essential and effective process task, it is the long lasting and
effective managing growth and development leading goals. However, attempts to systematically
draw on the concepts, theories in order to meet out the best developing makes effective manner.
In this paper you need to develop the new managing effective outcomes. It brings effective
management output goals and best effective. In order to generate the new innovation target and
make the best outcome results, it helps to identify the best outcome results and better
developing outcomes (Analytis, Sadler & Cutkosky, (2015). Apart from that, it is the another
most productive nature in order to doing the best product outcome goals. Toyota can adopt this
process in order to manage the innovation within the company to beat the needs of the
customers. In order to follows this model of innovation management company should needs to
considered this following goals and objectives.
Search : In order to meet out the managing successful business growth in order to meet
out the customer needs and wants. Searching is become the best planning source or process to
measure the best product outcome goals and take the best outcome results and growth. After
making it helps to sustained the effective product outcomes. Toyota is the well known brand who
has been launched their luxurious products only for their prime members. After searching into
the new level it has been find out that, it makes the long term challenge and effective learning
goals to make the best outcome results and growth (Birkinshaw, Zimmermann & Raisch (2016).
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Toyota has been find out that, they should need to focus on the middle class family also to full
fill their needs and wants effectively. Apart from that, it makes the new effective process to full
fill the needs of customers. New search of Toyota in order to meet out the best productive goals
and effective. In order to keep the best outcome result and make the leading. It affects the long
term goals and best outcome results,
Select : It is the next process to come, in order to meet out the results and effective
working conditions. In this next process of model defines the reason of selection the new
innovation process (Egger, (2015). Selection process helps to evaluate the all over channel of
effective distribution in order to meet out the result and effective process. In order to meet out
the new effective and leading material goals and effective management goals. Effective line
making and best original.
Implement : It is the another process that affect the business environment in order to
meet out the goals of the company. Implementing process is the last second process to allocate
the planning all strategic plan into action. It gives better outcomes and long term result to make
the better appearance. Toyota makes affordable cars and products for this middle class
customers.
Capture is the last process to determine the outcomes and result of new innovation in order to
make their best effective outcomes. Apart from that, it brings new managing effective business
targets to ensure the better result services.
5. Recommendations to improve the innovation strategy and innovation management in Toyota.
It is fact that sustained innovation's comes from developing a collective sense of purpose
from unleashing the creativity of the people across the organisation (Gabriel-Buenaventura &
Azzopardi, (2015). It is recommended that Toyota should do following adjustment in the
strategies of company which are as follows-
Increase the investment in idea generations- Toyota should increase the investment in
the idea generations as innovation requires huge amount of investment and resources. The
investment made by Toyota is good but in order to beat the competitors it is very important that
company should raise there investment.
Develop deep understanding of customers- Toyota should invent fund in market
research so that the actual needs and expectation of customers can be discover and company will
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make changes according to the same. Toyota has started building cars for middle class people
which s best strategy of Toyota Motors.
Create highly diverse team- Toyota should create a highly diverse team in order to
address or solve all the issues. They should encourage them to develop new and innovative ideas.
Toyota should give them access so that they develop methods as well as experience.
Dedicate Additional Sources for innovation- It is also recommended that, Toyota should
put additional sources for innovation like calling experts for Research and Development,
organising training and development programmes for employees.
Provide rewards and Incentives for Innovation- This is also one of the best method to
improve the strategies of innovation as Toyota should provide rewards and incentives to
employees for boosting innovation ideas (Egger, (2015). By providing rewards and incentives,
employees are highly motivated and they will give more time on researching and discovering
new ideas.
Develop the culture of continuous development- Continuous development is the best
culture that foster innovation. Toyota should develop the culture of continuous improvement so
that employees at all level become highly innovative and skilled.
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CONCLUSION
From the above report it is concluded that innovation is very important to the continuing
success of the organisation. It is process that involves multiple activities in order to bring out the
new ways to do things. It also creates values for which customer pays and it also satisfies the
expectation and needs of customers. Moreover, this report also map and critique the innovation
space of Toyota and BMW company. Tidd and Bessant's 4 step model was also illustrated in
this essay. Innovation capabilities of organisation was also summarized in this assignment.
Further, recommendations was also given to Toyota for bringing improvement in innovation
strategies.
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REFERENCES
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Lin, H. (2018). How Does Management Innovation Affect Performance of an Organization?.
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Otani, S., & Yamada, S. (2017). An analysis of automobile companies’ intensity targets for CO2
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