Managing Innovation in Business

This report explores the concept of managing innovation in business, with a focus on the automotive industry. It examines the case of General Motors and their innovation performance. The report also provides an analysis of the industry in 2016 and discusses the potential for future growth.

Managing Innovation in
Business

Executive Summary
The following report summarizes different topics such as technology characterization,
General Motors overview as selected for technology research. Sector analysis with all the
technologies which have been made in previous years. The thorough study of the automotive
industry was carried out with the assistance of the five powers of SWOT, PEST and Porter.
Industry assessment in which invention literature and privileges in 2016 were also addressed in
this project report.

Contents
INTRODUCTION.......................................................................................................................................3
THE ORGANISATION AND INDUSTRY REVIEW................................................................................3
Overview of the organisation and industry evaluation with its history....................................................3
Existing innovation performance and capabilities of General Motors.....................................................5
Industry in 2016.......................................................................................................................................7
CONCLUSION...........................................................................................................................................8
REFERENCES............................................................................................................................................9

INTRODUCTION
Innovation relates to a procedure of creating a new services and products to make it more
effective or attaching certain new functions to current product. That would motivate more
adequately meet the requirements through which person's requirement and expectations are met.
Maintaining developments in their activities is very necessary for all companies so that company
can be properly run (Sengoku, 2015). The main goal of this task is to establish awareness and
outstanding leadership of invention. The main aim of this report is to examine technology
definition in the automotive sector and how it could be effectively implemented. It also outlines
Industry 2023's potential and the requisite needs for organizational progress up to and beyond
2023. In contrast to this, General Motors also includes potential engineering resources to
establish engineering in its automobiles.
THE ORGANISATION AND INDUSTRY REVIEW
Overview of the organisation and industry evaluation with its history
General motors have been one of the global industrial companies, whose goal seems to be
to build creativity in their goods and services. It operates in the automotive sector, in more than
37 nations, designing, producing and selling automobiles and industrial pieces. It provides key
electric-mobile branded stuff such as Chevrolet, Cadillac, Buick etc. but all have highly
innovative technology in it. This organization is also called the prime illustration of creativity,
because it often provides innovative offerings in the industry to draw existing customers' interest
and retention. General Motors (GM) is a Detroit-based American international company that
designs, produces, stores, and transmits car and automobile components and providing financial
resources with regional head office in the Woodward Center in Detroit. It was established as a
corporation by William C. Durant on 16 September 1908. The business is the biggest American
automotive producer which is one of the biggest in the world by 2019, General Motors was listed
13 in the Foundation 500 list of the biggest companies in the United States by total revenue.
There are mentioned some innovation of General motors’ such as:
Innovations Description

Automatic
Transmissio
n
On the Chevy truck of 1940, GM launched the first such automatic gearbox,
called the Hydra-Matic. It's convenience for use and usability was widely
worshipped and the design was quickly embraced by each and every car maker.
Air bags Another GM-invented innovation that is still being used nowadays. The
"adjustable strap protection device," originally known as the airbag, was the
very first form of cushioned safety system to increase production, first launched
by Cadillac, Buick, and Oldsmobile in 1970.
Extend
range
electric
vehicles
GM didn't design the electric vehicle, however when it implemented the first
such Chevrolet Volt back in 2010, it spawned a new section recognized as the
Long range Electric Vehicle (EREV). EREVs function in 2 respects: EV (engine
off) function and increased range (engine on) fashion;
On star Launched almost 20 years earlier (1996), OnStar has developed into a major
computer network in the automotive market. Better then 7 million people are
currently using OnStar to help with emergency treatment, protection, mapping,
diagnosis, and communication. And still, in-car Wi-Fi used by most of the
companies.
The company wants to do innovation in United Kingdom so for this require focusing on various
aspects that impact on the innovation in direct manner. Chevrolet Bolt will be the first accessible
longer distance autonomous vehicle in the world. GM will deliver at least 20 zero-emission
automobiles into international markets by 2023. Many of the cars will be marketed in United
Kingdom. Buick Enspire Design is the newest electrical smart connectivity representation by
GM. There have been different kinds of internally and externally factors that can impact its
business activities and also impact its defense capabilities (Miller and et. al., 2016). With the aid
of PEST assessment, all the causes can be analyzed and these are as continues to follow:
Political factor: these types of variables are specifically related to financial laws and
legislations that businesses need to obey. Therefore, because General Motors conducts its
business in this country, if UK regulatory bodies enforce a requirement to maintain minimal

workers of a defined number, GM's owners must hire new workers so that they can comply with
all the legislation.
Economical Factor: UK economy is deemed a healthy society whereby activities can be
properly performed. Yet this sustainability may be affected by unemployment or level of
depreciation that negatively affects consumer buying power. As the bargaining power declines
then it can impact General motor's revenue
Social Factor: All these variables rely on consumer behavior and understanding that
involves intelligence level, race, age etc. If General motors is unable to sell consumers appealing
goods, its profitability will be decreased and revenues will be diminished because revenues are
diminished.
Technological: Tesla Inc. is using modern and creative innovations in its cars and now
consumers are being comfortable with innovation for times, which would help the company
reach a wide consumer market and earn higher income. That use of computer technology has
been successful for the business, as the UK's park district is very much interested in new
technologies
Existing innovation performance and capabilities of General Motors
Invention can be described as the resource needed to gain competitive edge in the
marketplace, as it may help improve functional performance. General engines in the execution of
companies in the automotive industry where there is very intense competition. The organization
is known as the most creative business in its field, because it adds new forms of creative
approaches to maximize its profit growth (Mazzarol and et. al., 2014).
Over the past century, businesses working in such business as General Motors have
experienced extraordinary or dramatic changes in the automotive field. Many developments and
technological advances, such as methodological cycle, V2 G, truck pinch hitting, automobile as
the HUB design and more, are described as key trends in the 2020 and even beyond automotive
industry. Hence, the Vision of Production 2020 in the Automobile industry seems to be
continually evolving with all its staying strength. Today's cars have technologies such as drive-
by-wire electrical equipment used in goods from prominent marketed firms such as General
Motors, Volkswagen, Ford Motor, and Toyota Motor Company.

SWOT assessment is quite useful to recognize the technologies in a much more efficient
way and is a mixture of four various components that are strengths, limitations, opportunities and
challenges. Those are all as obeys:
Strength: GE has the main industry places in the world's most important car industries,
North America and China. GE trades in China via numerous jVs and operated Chinese
companies that manufacture GE China's largest international car manufacturer by revenue. GM's
heavy presence in these big markets helps cement world market dominance. Business has a
globally competitive range of products underneath the names of Chevrolet, Buick, Cadillac,
GMC and Opel, with branches and JV around the planet. In geographically dispersed areas the
large variety of goods is available. General Motors is one of America's traditional "big three" car
brands, including Ford and Chrysler too. Following the default and restructuring of the group in
2009, the group stayed the biggest automobile producer in the U.S., holding more than 17.3 per
cent of share of the market (Ismail, Nor and Sidek, 2015).
Weakness: GM has recalled an amount of cars in the near history due to faulty
components or faults there after selling. For example, in 2016 and 2014 GE withdrawn 5,000
Chevrolet Silverado 1500 minivans worldwide for faults with respect to spark keys. Brand
recalling impacts GE's perception of the company and influences GE's sales negatively. GE
actually has significantly public pension funds (FY 2015: $10.4 billion). The business's public
pension commitments are rising and thereby affecting the overall financial status.
Opportunity: In the past decade, the international automobile sector has presented steady
growth, and is obligated to follow a similar trend ahead. GM is supposed to profit from the
development, as one of the world's leading automotive manufacturers. Considering increasing
concern regarding lowering carbon emissions and thereby being ecologically friendly, market for
Hybrid Electric Vehicles (HEV) is projected to rise at a significant rate. GM is expected to
benefit from this request as it decides to invest in improving plug-in technologies for hybrid
electric vehicles.
Threat: GM is the target of heavy competition in all its categories from several famous
brands. Strong competition is negatively impacting GM's market share and its margins. His rivals
include Volvo, Honda Motor, Hyundai Motor, Nissan Motor, Volkswagen etc. The automotive

sector is worldwide affected by the multiple environmental and safety rules and regulations.
Businesses have to conform strictly to these regulations which raise their costs of enforcement.
It is quite necessary for the holder of General Motors to act accordingly to continually
conduct his company in the marketplace.
Industry in 2016
Automotive industry in a wide sector contributing a considerable amount to the nation's
GDP (Gross Domestic Products). During 2016 multiple highs and lows in the automotive
industry were reported. Auto mobile corporations' businesses were impacted, and their
productivity was reduced. America has a special bond with the automotive industry, as it is the
world's leading supplier of vehicles. This sector contributes to economic growth.
For the automotive industry, the starting of 2016 was not successful as the time
progressed by improvements in circumstances and organizations began to overcome all the
difficulties and re-establish ourselves. Owing to the social shifts, General Motors also impacted
and also gained as Model S's sales were very high in 2016. A suitable system for analyzing the
automotive industry in level of detail is the five-force model of the porter. The model's all five
powers are as obeys:
Threat of substitute: When a new company's product serves the interests of a
comparable client in various manner, profits in the sector endures. Services such as Dropbox and
Google Drive replace physical devices for example. A replacement company's product is highly
threatened if it provides a business model which is different in nature from the sector's current
products.
Threat of new entrance: New entrants in automakers-Major brings advancement, new
ways of thinking, and puts more pressure on General Motors Company via reduced business
model, cost reduction, and consumer current value proposals. General Motors Business must
deal with all of these problems and construct efficient obstacles to protect its technological edge.
Existing rivalry: If the competition among an industry's established players is severe it
will press down costs and reduce the sector's total competitiveness. General Motors Company is

functioning in a fiercely competitive automotive supplier-major industry. This rivalry takes toll
on the organization’s overall long-term productivity.
Bargaining power of customers: Consumers are often very challenging. They choose to
purchase the best scientific products by having to pay as low a cost as necessary. In the longer
term, that put some pressure on the competitiveness of the General Motors Business. The lower
and more strong the client base is of General Motors Business the greater the consumers'
negotiating strength and the greater their willingness to pursue rising deals and deals.
Bargaining power of suppliers: Most of all, the Car Producers-Big Manufacturing firms
purchase their raw resources from various distributors. Providers in leading position that
decreased the profit earnings that General Motors Business can receive. Strong suppliers in the
Consumer products industry use their bargaining leverage to secure higher costs from the Car
Manufacturing firms-Big market. The net effect of higher vendor negotiating power is that it
reduces the Car Producers-Big overall productivity.
CONCLUSION
It has been analyzed from the above-mentioned operation study that developments are a
notion in which a new theory is initiated on the market so that organizations can obtain huge
market share. New businesses are emerging on the marketplace in the automotive industry and
the demand is rising in the same industry. It is quite critical that the businesses have sufficient
and adequate competition knowledge so that successful plans can be developed. Industry
analyzes can be performed with the aid of the five powers of SWOT, PEST and Porter.

REFERENCES
Books and Journal
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commercialisation?. Technology Analysis & Strategic Management. 26(7). pp.717-731.
Hang Do, T., and et. al., 2014. Predicting anticipated rent from innovation commercialisation in
SMEs. European Journal of Innovation Management. 17(2). pp.183-208.
Greenaway, D. and Rudd, C. D. eds., 2014. The Business Growth Benefits of Higher Education.
Palgrave Macmillan.
Dincer, I., 2017. Importance of research, innovation and commercialisation for technological
success. International Journal of Research, Innovation and Commercialisation. 1(1).
pp.8-22.
Collet, C., Hine, D. and du Plessis, K., 2015. Employability skills: perspectives from a
knowledge-intensive industry. Education+ Training. 57(5). pp.532-559.
Chun, D., Chung, Y. and Bang, S., 2015. Impact of firm size and industry type on R&D
efficiency throughout innovation and commercialisation stages: evidence from Korean
manufacturing firms. Technology Analysis & Strategic Management. 27(8). pp.895-909.
Ahn, J. M., Minshall, T. and Mortara, L., 2015. Open innovation: a new classification and its
impact on firm performance in innovative SMEs.
Online
Innovation of General Motors. 2020. [Online]. Available through:
<https://www.wallacechev.com/blog/six-innovations-you-didnt-know-general-motors-invented/>
SWOT analysis of General Motors. 2019. [Online]. Available through:
< https://www.marketing91.com/swot-analysis-general-motors/>