Managing Innovation in Business - Future of Automotive Industry and Innovation Requirements for Mercedes Benz

This report evaluates the future of the automotive industry, innovation requirements for Mercedes Benz, and building future innovation capabilities for the organization. It discusses the need for digitalization, advanced technology, connected cars, digital supply chain, smart manufacturing, autonomous vehicles, vehicle connectivity, electrification, artificial intelligence, blockchain, and 3D printing. The report also highlights the importance of predictive vehicle technology and self-driving technology.

Managing Innovation in
Business

Table of Contents
Executive Summary ........................................................................................................................1
INTRODUCTION...........................................................................................................................1
TASK...............................................................................................................................................2
The Future of the Industry 2022 and Beyond .........................................................................2
The Organisations Innovation Requirements 2022 and Beyond..............................................3
Building the Future Innovation Capabilities for the Organisation...........................................4
CONCLUSION................................................................................................................................9
REFERENCES..............................................................................................................................11

Executive Summary
Management of the innovation process is essential in each and every industry but if its an
automotive industry then this become more important to make proper alignment and evaluation
in the process of innovation. Mercedes Benz is the car manufacturing company produces luxury
cars they makes continuous innovation in their car models but making the organisation future
ready in terms of innovation is the aim of this report. This report evaluate the three important
terms in the sector of innovation which helps the company to generate technological
development in organisation . It evaluate future of the automotive industry, how organisation
innovate products in near future and what are the capabilities of the Mercedes Bens in terms of
innovation.
INTRODUCTION
Innovation management is a concept of managing innovation in an organisation from its
initial procedure to its final stage. Innovation management is the crucial process as its helps in
making business stand out in the respective market. By encouraging innovation an organisation
can discover new range of products, helps in making reduction in costs and enhances the
development process. Organisation that not focuses on the innovation brings outdated product
and services in the market. Innovation management is very important aspect in the industries as
businesses need to maintain balance not too much innovation and not lacking in innovation. In
order to overcome challenges and adapt change there is a need to implement innovation in the
organisation in accordance to the requirement and capability(Coccia, Roshani and Mosleh,
2022) . This report is being made in the context Mercedes Benz which is a luxury vehicle
company offering premium vehicle and services all over the world. The aim of this report is to
highlight the future of innovation industry , what an organisation need to maintain innovation as
per the market and it also evaluates the future innovation capabilities of the Mercedes Benz. The
purpose of this report is to explain how an organisation should manage the innovation in the
working structure which gives them effective results and success.
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TASK
The Future of the Industry 2022 and Beyond
The company Mercedes Benz believes that innovation is the constant process and an
organisation should create an working environment which influences changes in the working
structure through innovation. The company have achieved a remarkable brand image because of
its innovation structure till now(Eftekhari, 2019) . They have applied certain tools and
procedures which analyse the needs and demands of the customers and reviews the feedbacks
from different platforms. Mercedes Benz invest huge amount in the innovation process in order
to achieve organisational objectives. The vehicle industry is moving too fast in terms of
innovation and technology as the customers and the environment is being demanding some
changes in the automotive industry. With the vast technological advancements it is been
analysed that consumer behaviour is altering and being more demanding. However with the rapid
growth there is need to also monitor the environmental effects that an automotive industries
made on the environment on different levels. The traditional business models are more focused
towards the designing, manufacturing, financing vehicles. But in the current scenarios the things
have been changes and the industry is turning towards more sustainability and innovative
products that is more environment friendly. Mercedes Benz have changes their operations and
innovation process after the pandemic. The company is being more focused towards products
that saves energy and generate less heat in the environment. Some of the changes and innovation
is discussed below:
 Digitalization in the automotive sector- Digitalization is the need of the future in the
automotive industries from autonomous driving to sharing the models of mobility , there
is a need to make the cars and vehicles more customized which allows new models to
be more user friendly and more developed.
 Adoption of advanced technology- Making constant innovation in the cars is a framework
which is adopted by each and every car manufactures but some times it creates more
complex difficulties. Making improvement in the efficiency of the vehicle is proven very
beneficial in terms of future aspects (Faems, 2020) . The car industries need to make
changes that serves for the environment as well as saves money and time.
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 Connected cars- The automotive industry should adopt and manufacture the cars that are
able to meet the changing mobility by becoming even more connected with the
intelligence.
 Digital supply chain and smart manufacturing- The future of the automotive industry are
more challenging as the competitors are making constant innovation and tries to reach to
the customers as fast as company can. Having digital supply chain and smart
manufacturing makes the procedure more convenient and flexible (Fraga-Lamas and
Fernández-Caramés, 2019) . How a company is making interaction with the customers
is very much important for the future success.
The Organisations Innovation Requirements 2022 and Beyond
Mercedes Benz focuses in enhancing the experience of their customers through providing
customized features in the cars with great customer experience. They have implemented
strategies that make the ahead of their competition and provide memorable customer experience.
The company have invested large amount in enhancing the features of the car which not only
make the driving flexible but also controls pollutions which is most likely to make impact in the
environment. Mercedes Benz have customized the services and features in the car in accordance
to the demands and expectations of the customers and by analysing the competition in detail. In
order to make differentiation in the services Mercedes Benz have applied the strategies that
target and attract customers effectively(Hidalgo and Herrera, 2020) . The company have the
unique selling point as they have most advanced and luxurious cars that are performance
oriented in all over the world. The company is being pumping innovation and technology on the
vehicles in accordance to the need of today's generation and with respect to environment. After
successful implementation of the innovation still there are some aspects which a company needs
to adopt in their services and technology. Some of the innovative techniques are discussed
below:
 Autonomous vehicle- A car that have autonomous features reduces the requirements of
the drivers. There are multiple advantages of the autonomous vehicle which Mercedes
Benz should applied in their cars. Having advanced recognition technology make
reduction in the route obstacles and enhances the vision in driving. It also beneficial in
terms of more friendly towards traffic rules and regulations which as a result includes
less accidents.
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 Vehicle connectivity- It is describes as the vehicle that have separate digital identity that
makes it different from other vehicle. It comprises different benefits of as the tracking
being easy in case of insurance, fleet management, driver safety and many more. This
vehicle connectivity also helps in connecting data from the vehicle very easily and it also
connects roadways which manages traffic related challenges(Hussain and Zeadally,
2018) . In respect to the Mercedes Benz they have already adopt this innovation and
technological development in the cars.
 Electrification- As it is been widely known that depleting fossil fuel caused harm to the
environment and there has been urgent need to adopt electric cars . But in respect to
adopt electric cars there is need to work more on it as there are issue in electric car such
as high prices, poor battery, difficult charging infrastructure and the energy based
charging grids. Mercedes Benz have to address these issues in order to develop the cars
with future requirements.
 Artificial intelligence- It involves the machine learning with deep computer vision .
Implementing features with robotic automation provides multiple benefits such as it
provides or improves the safety of the drivers , enhances the services such as vehicle
innovation and insurance(Hutchinson, 2020) . Mercedes Benz have to implement such
features in their cars that helps its drivers to act accordingly. The AI enables automotive
industries to apply solutions of complex structure of the vehicles. There has been greater
requirement of innovation in the current scenario as people are getting more aware
about the technical advancement in automotive industry.
 Blockchain- It involves the multiple application in the industry which comprises having
secure network for better connectivity, sharing solutions of mobility, sharing of vehicle
data and many more. Blockchain is very effective in verifying supply chain of the raw
materials and sourced them from trusted sources. There is much requirement for this
innovation in the automotive industry as it make sure that raw materials the company
uses is trusted and have no chances of any fraud.
 3D printing- It is the very important aspect in the innovation requirement in 2022 as it
helps the automotive industry in 3 ways (Olabi, Wilberforce and Abdelkareem, 2021) .
Firstly it provides access to fast prototyping with the 3D models that enables design and
testing of the production, secondly it makes the work of the manufactures easier by
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printing spare in respect to match the requirements and lastly it helps in manufacturing
the composite materials and makes it more durable. Mercedes Benz should make
changes in their production and manufacturing in order to make the processing easier
and effective.
Building the Future Innovation Capabilities for the Organisation
Innovation is proven as the essential part in any organisation in order to maintain the brand
image in the market. Different organisations can use different technologies in resources and
innovation. Mercedes Benz have acquired large market area which makes in implementation of
the innovation quickly by covering large section. Automotive industry majorly focuses in
making innovation in making driving easy , providing more safety features and giving some
extra features apart from driving (Purnomo, Suryana and Sari, 2018) . These innovative
techniques now demands more change and development in the features. Existing innovation
capabilities of the Mercedes Benz are their developed engines, anti-locking brakes , fuel
injections and many more. But in order to make company more capable to deal with future
environment there is a need to implement or adopt more innovation and environment friendly
innovation. Some of the future requirements in the Mercedes Benz are discussed below:
 The new customers- In the upcoming years customers are more discussed towards
fulfilling their requirements with the cars instead of connecting to them emotionally. As
most of the people are mobilists who just want to make their work done by moving from
1 point to another. The growing patterns in the cars will bring natural customers for its
best mobility services. The new patterns in the cars demands specific uses in order to
regain the importance. The expectations of the uses is that cars re being damage
resistance and works properly in low maintenance which makes them used by multiple
users. He new customers demands some extra features in the cars which includes parking
assistance, massage seats and many more. Mercedes Benz should provides these features
in their cars in order to make cars more durable and effective in their basic services.
 New technology, new gadgets- The existing functions in the cars are very common and
the new technology and innovation will bring new changes in the cars. There is
evaluating demands of the electric cars and the reason behind it is environmental
concerns. But these are the minor factors that a buyer concerns while buying a car as
customers are more focused towards their loss and profits. Electric car are not taking
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much of the market area because of the existences of fuel cars. For the requirement of
the better environment there is requirement of complete ban on the fuel cars. In the
upcoming years car manufactures are likely to produce cars that adds fuel cells in inter
combustion and have battery powered engines. Mercedes Benz should adopt new
technology in the organisation which foster more environment friendly features.
 Advanced structure of the cars- Having advance technology and growing demands will
influence the manufacturers to develop more and more features that makes the work easy
and more flexible for the its customers. The automotive industry in the upcoming years
should change the structure of the cars in order to make them more sustainable. The path
of the auto-makers in developing their services includes self-driving vehicles and
electrically powered vehicles (Ramli and Soelton, 2018) . In order to make advanced
structure of the vehicles there is need to make alliance with the specialist technology
firms. The foremost reason behind the partnership is huge cost burdens that occur in the
development. Mercedes Benz are making constant development in the structure of the
cars in accordance to the requirement and customer's expectations.
 More fuel efficient rides- In order to make changes in the cars to deal with future
expectations , there is a need to adopt changes that regulates fuel efficiency . This can be
maintain by the organisation by releasing range of electric and hybrid vehicles that
covers miles with only a single charge. Mercedes Benz is the brand that produces
luxuries cars and producing electric cars with the more affordability makes more profit
in the company. It is been analysed that the selling of the electric cars surge nearby 2030
in multiple countries.
 Predictive vehicle technology- Artificial intelligence and the machine learning have a
crucial role in the automotive industry as it enhances the personalised experience and the
driving experiences. More and more manufacture are in the automotive industry
implementing the data and algorithms in order to make automate process in the vehicle .
Vehicles are connecting more with the artificial intelligence which can establish connect
with smartphones , take voice commands and altering their interface(Sharma, Kumar and
Park, 2018) . Predictive technology in the vehicles works more as the sensors which
provides information to the owners about the needs and service requirements of the
vehicles. Mercedes Benz should build predictive technology in the vehicles which helps
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in estimating the performance and informs users about the upcoming safety problems .
This innovation in the industry is very important in order to minimize the risks.
 Self driving technology- Its the innovation which is much needed in the upcoming years
while some companies are already testing self driving technology on roads on the other
hand some companies are still managing the adoption process in these cars. There are
huge number of cars that are semi-autonomous in respect to comply with driver assisted
technologies. Self- driving technology includes automatic braking sensors, mapping
technologies that checks the blind spots, sensors in motorway lane, cameras in the front
and back of the cars, self parking technologies and many more. These functions includes
huge benefits for the company as well as for the customers. Mercedes Benz have to
adopt these technologies in their vehicle in order to stand out on the market with that it
also make the vehicle future ready (Singh and Gaur, 2018). These self driving technology
makes the company capable to deal with the upcoming threats in the automotive
industries with that it generates more and more profits for the organisation.
 Providing car as the service- It refers to the providing car for the rental service in the
upcoming years. As it can be analysed that auto-mobile industries generates more
pollution in the environment and it is not possible for every individual to carry a
individual cars in order to control the dangerous impact on the environment. This
services allows drivers to engage in the ride sharing services. The device owner can hail a
vehicle with driverless technology. The important thing about this innovation is that it
does not need any license of drivers in order to get the access and the owner can serve the
vehicle as the driverless sharing services. Mercedes Benz id the luxury brand and it does
not possible for the company to allows their cars on the rental services but introducing
new range which provides these services will prove to be very beneficial in the future. It
is been predicted that driverless cars are on the horizon are are expected to start near
2025. This in ovation helps in making reduction in mobility services costs with that it
also offers the next alternative which is human driver.
In respect to generate innovation in the organisation there is a need to develop a plan which
develops the process and procedures to make innovation in the company . This procedure can be
done through detail analysis about the capabilities of the Mercedes Benz and their future goals
with respect to market and customers demands. Mercedes Benz have to develop the models
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which establish base for the innovation in the organisation(Sperling, 2018). There are some
factors that organisation need to evaluate or consider in order to make innovation in the services
of the company.
 Innovation interaction model- Mercedes Benz have to investigate and recognize the
innovation practice through making interactions with different companies of the same
fields. As these companies identified as very crucial in order to reset the innovation
model. Company should also take help from the external agents which provides
information about the sources of innovation , local sciences and the technological
changes for the company.
 Sources of innovation- In respect to generate innovation and making company future
ready thee is a need to evaluate the range of innovation and hoe the company can adopt
these with relevant resources. Mercedes Benz have to identified the potential sources of
innovation which can be used in the process of innovation. There are different sources
from which a company can foster innovation in their services. This innovation can be
done through considering different factors such as local competitors by collaborative
strategy, buyers needs, local suppliers, technology and the development centres and many
more. The company has to run a marketing and business administration program with the
research institutions in respect enable innovation in the cars.
 Different conditions of innovation- Introducing innovation in the organisation can be
implemented through research and with the consent of the existence stakeholders of the
company. The stakeholders involves directors of the company, managers, engineers and
the technicians who plays major part in stimulating innovation in the business(Sultanova,
Maliashova and Bezrukov, 2019). These entities plan and apply the knowledge exchange
and also influence other contributors to participate in the process of decision making.
They also stimulate the people to implement improvements in the products and services.
Mercedes Benz have to identify the conditions of the innovation with their stakeholders
in order to innovate ion the right direction.
 Human resource to conduct innovation- There has been major role of human power in
every aspect of innovation. Taking helps from the experts by offering financial support to
them is what companies do to foster innovation in the organisation. Mercedes Benz have
to aligned the company objectives to make innovation with students of different
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technical institution which helps in developing researches in the field of automotive
industry. This also helps in generating information about multiple important
technological aspects of the organisation.
 Innovation management and technological change in the organisation- Its not enough to
just implement or establish innovation in the organisation but it also important to manage
the process or after process innovation in the company. Managing technological change
in the organisation results in more coordinating activities in the company , it also makes
adopting processes easy as company subsidiary may develop new products which needs
specific management. Mercedes Benz have to manage their innovation process in
accordance to the requirement which also helps the workforce to adopt technical changes
effectively.
 Social networks and the capital development in the organisation- Maintaining or
upgrading social networks plays very important role in innovation and technical
upgradation. It is widely known that innovation needs capital investment which is
possible by maintaining good professional relationships universities and the research
centres and with various funding agencies. In the process of making innovation
capabilities in the automotive industry it is necessary to have large social networks which
allows the company to get technical updates. With that having access to the capital
investment is also necessary to get instant and constant support for different initiative.
Mercedes Benz have tie-ups with multiple funding agencies and banks which helps in
getting monetary support for innovation.
CONCLUSION
From the above report it is concluded that management in the process of innovation is very
crucial in order to sustain in the competition. It is the procedure of managing a company in
regards to its innovation process. Innovation processes starts from initial process of building idea
and ends with the implementation of the plan. This report is been prepare in order to evaluate
the innovation procedures of the Mercedes Benz and how the company build its capabilities for
future innovation development. It initially evaluates the future of the automotive industry in the
year 2022 and beyond it. It includes various factors of innovation that are Digitalization in the
automotive sector, Adoption of advanced technology, Connected cars and Digital supply chain
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and smart manufacturing. Digitalization in the automotive sector includes implementing the
features in the cars that are more user friendly and have advanced features which provides
flexibility to the user. Connected cars are defines as the new technology that have the features
which allows the interlinking of the documents and other essential things with the carts models
which make recognisation and procedure easy. Another demonstration is the innovation
requirements in the Mercedes Benz in the future which indicates hoe the company follows path
in order to establish innovation in near future. It includes some factors that are Autonomous
vehicle, Vehicle connectivity, Electrification, Artificial intelligence, Blockchain and 3D printing.
These are the feature which is required in future innovation process. Further in this report it
evaluates the innovation capabilities of the Mercedes Benz that are The new customers, New
technology, new gadgets, Advanced structure of the cars, More fuel efficient rides, Predictive
vehicle technology, Self driving technology and Providing car as the service. Innovation in the
organisation needs detail homework in the respective fields which includes analysis of sources of
innovation, Innovation interaction model, Different conditions of innovation, Human resource to
conduct innovation, Innovation management and technological change in the organisation and
Social networks and the capital development in the organisation.
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REFERENCES
Books and Journals
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363.
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an advanced and cyber-resilient automotive industry. IEEE access, 7, pp.17578-17598.
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approach to the ICT services sector. Technological Forecasting and Social Change, 161,
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challenges. IEEE Communications Surveys & Tutorials, 21(2), pp.1275-1313.
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automotive industry and future perspective. Energy, 214, p.118955.
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innovation management to business performance of business units of multiplay provider In
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Ramli, Y. and Soelton, M., 2018. Implementing innovation management on market
attractiveness and unique resources to enhance business performance on organic fertilizer
industries in Indonesia. Academy of Strategic Management Journal, 17(2), pp.1-12.
Sharma, P.K., Kumar, N. and Park, J.H., 2018. Blockchain-based distributed framework for
automotive industry in a smart city. IEEE Transactions on Industrial Informatics, 15(7),
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