Managing Innovation in Business

This report discusses the importance of managing innovation in business for growth and development. It focuses on the case of Tesla and its innovation history, existing performance and capabilities, and the industry in 2016.

MANAGING INNOVATION
IN BUSINESS

EXECUTIVE SUMMARY
Innovation in business is essential for growth & development. In this report how business
manages the innovation id discussed. In the main body part chosen firm; Tesla and its innovation is
history is being presented with its existing innovation performance & capabilities and the industry
in 2016. Tesla has been well known for its electric vehicles across the globe. With new ideas as well
as implementing new strategies in business assist them to create innovation in business sector. It is
stretching its product line such as model S has increased their sales and revenue at larger scale. By
going through this report, investigator will be able to understand the brief concept of innovation.
Many firms are developing their research & development department to make new changes in
industry but it requires skills as well as high level of expertise to understand the concept. Further, it
is also necessary to be aware about market changing trends so that decisions making is done
accordingly. By conducting proper market research, it becomes easy to prepare planning for new
changes in the enterprise.

Table of Contents
EXECUTIVE SUMMARY..................................................................................................................2
INTRODUCTION................................................................................................................................4
The organisation & industry overview............................................................................................4
Organisation & its Innovation history..............................................................................................4
Organisation existing performance & capabilities...........................................................................5
The industry in 2016........................................................................................................................6
CONCLUSION....................................................................................................................................8
REFERENCES.....................................................................................................................................9
Books & Journal:.............................................................................................................................9

INTRODUCTION
In this competitive world, business sector is rising at rapid level and competition is booming
up. In market there are two types of organisation one which introduces the change & create
innovation whereas other who remains static focuses on profit. Tesla, an automobile industry
headquartered in California. Organisation deals in variety of products, equipment, vehicles etc. It
has many competitors in market such as Ford motor, Honda Motor etc. This report includes
organisation and industry review, innovation history, existing innovation performance & capabilities
and industry in 2016. Automobile industry is consistently changing when it comes to innovation and
which makes important to manage innovation in business. Main purpose of conducting this report is
to assist entities how to manage and create changes in business through innovation.
The organisation & industry overview
Automobile industry has changed drastically with changing time period. Tesla has been a
well-established EV producing car in the market which provides good quality to its customers as
well as solves their problems in effective manner. Thus, being innovative is the key measure success
point of Tesla (Tidd, 2018).
Organisation & its Innovation history
Tesla, a multinational corporation was established in 2003 and founded by Elon Musk.
Organisation deals with automobile vehicles products and services and increasing their range of
business. The first car which launched by firm was Roadster and to market their product they made
history by sending the prototype of roadster into space. This creates a sensation at that time because
without spending a dim on advertising they did marketing for their product at wider level. With
changing time & demand as well as need of people enterprise is developing and improving their
mode of doing business to deal with market situation as well as competition in effective manner.
They created electric vehicles to safe the society and environment from being polluted. For example
their model S is the most used electric car in U.S market. In automobile industry they are
revolutionising the sector so that people life become more easy & secure when it comes to driving.
(Biemans, 2018).
Moreover, many other competitors also were giving tough competition to the
company such as Toyota, BMW, etc. Tesla invests most of its capital and funding in their research
and department unit. With motive of consistently changing innovation, firm is becoming more
advanced as well as innovator in the sector. There are many cars which have been launched in the
market such as roadster, Model S, Y Model X etc. & still to be continued in process of
manufacturing the cars. Also, they have developed their supercharging station across the globe by

providing discounts and offers on credit. Main objective of Tesla is to change the way of
innovation & technology and produce more advanced tools in automobile industry. With aiming of
this enity is able to cope up with its rivals, competitors in effective manner. Also, company
motivates other small business to adopt the innovation in thier buisiness so that everyone is able to
use technology with a new hope. Effort, manpower and resources has been used in firm to achive
the desired goals & objectives. Organisational structure is well managed & employees in enitity are
always ready to take the risk & accepts the change with peace as well as mutual consideration.
Organisation existing performance & capabilities
In business, it is important to analyse the performance as well as progress level of firm so
that decision making is done in proper manner. In relevance with Tesla, they have now become
leading manufacturers worldwide. Performance management is necessary for every enterprise so
that strong & weak areas for improvement are examined appropriately. Thus, when it was
established in 2003, roadster was first electric car which was launched around the globe. In 2008 &
2012 around 3000 roadster units were sold in market. Furthermore, they also have extend their
product line such by introducing Model S, X which has given a rise in their sales as well as profit
revenue. It is as the roadster and other models of Tesla were expensive and cost was high, to
enhance their profitability they introduced Model S which is at affordable price. With this model
their market as well as customer base gets strong. This is most featured electric cars such as
autopilot, supercharge, build quality etc. Elon Musk is the true engineer and innovator who have
vision of changing the world. Also, many electric cars has been introduced by companies such Kia,
Toyota, etc. but amongst them Tesla is has become the global leader in EV. In 2012 as the roadster
was discontinued form being manufactured in the next year they delivered market model S, Tesla
SUV etc. Recently, it was declared by Tesla that they will be introducing new roadster in 2021 and
also mention that it will be the fastest EV in the world covering 0-60 in 1.9 seconds. Performance
level of chosen firm is increasing at rapid level as in 2019 company sold units reached between
37000 to 39000. This makes them the leading manufacturers and suppliers in the market. Also, it is
also have been considered that Tesla model 3 has reach to the high profitability by selling units
approximately 80 per cent sales volume by products. It is becoming clear existing performance of
firm is rising & with new technologies as well as ideas they are all set to roll out in the market in
future as well. To improve their performance of business they delivering quality of service as well
as making their priority to the customers (Mousavi, 2018).
They are maintaining their performance by keep involving in providing sustainable transport
to the market. By providing good after sale service & updating their technology as well as staff on
regular basis. Also to measure the performance of corporation, Key performance indicators has are

used by firm under which goals and objectives are achieved in proper manner or not are defined.
KPI’s assist entity to examine as well as evaluate profit and loss, balance sheet, charts, graphs etc.
This makes them aware about their firm position, growth & overall development. With help of key
performance indicators, it becomes easy for enterprise to maintain their uniformity & take effective
decision making process. It is crucial so that problems & conflicts do not arise in near future. It is
not easy to perform KPI & requires high level of expertise to adopt the procedure (Ingle, 2016).
The above picture depicts the performance review of TESLA (1.1)
From the above picture (1.1), it is stated that performance of Tesla has been rising fat rapid
scale and more new products as well as service they are making they business more strong and
unique in the market. Through this KPI’s it also allows enterprise to make improvements where
they are lacking. There are various types of indicators such as ARR, CRR etc. are used by entities
accordingly (Kloppenborg, 2017).
After a brief analysis of above it is stated that existing performance of Tesla is stable and
improving more to acquire market with good ratios. Further, to measure the performance &
progress level of business key performance indicators are used by entity to measure the growth &
financial statistics of business. It is responsibility of manager of firm to make ensures that
everything is done in appropriate manner. Performance & capabilities of chosen organisation is
becoming more strong & dynamic which has raised their goodwill in market. Hence, more new
products and technology is in the way of Tesla with unique approaches.

The industry in 2016
New products, ideas, services, equipment and many more were introduced and developed by
Tesla in the year 2016. In this year, Model S was in trending and emerging in the industry because
of its remarkable features & horsepower as well as engine (Shokrollahi, 2017). But sales and
performance of Tesla vehicle was not up to the mark. Rationale for this was that many deliveries of
car were not delivered to customers not because they were still in transit process. Around 6,450 cars
were in process of transit because it autopilot feature was taking time to get in touch with final
product & which slower the sales & revenue of firm drastically. Because entity mentioned that the
transit cars will be delivered to customer within the first quarter of year 2017. In 2016, Goodwill as
well as creditability of corporation affected at wider & broader level. But it was also founded that
production scale of vehicle was more than 64 per cent if compared to 2015 production rate. But due
to delay of these deliveries, it becomes difficult to reach to the sale point of business. Also, 2015,
2016 & 2017 year was most crucial year for the company because sale & production units of
vehicle were booming (Müller, 2018).
After a brief analysis of above paragraph, it is seen that changes are bound to happen in
business so, to run business smoothly and effectively it is crucial to be adjustable according to the
market situation. This is important for dealing with uncertainty of market & to survive for longer
period of time. Thus, it assist firm in implementing of new tactics as well strategies which are used
in further process as well as business. Also, by using market research information regarding product
& entity is known which is helpful for analysis, statistics, evaluating the result etc. Hence, effective
tools and measures are to be used so that analysis of all the year is done properly (Pieroni, 2019).

CONCLUSION
After a brief analysis of above report it is concluded that managing innovation in business
plat vital role because proper measures and decisions has to be taken in the process. Without
managing as well monitoring, it is not possible for entity to grow focus on overall development of
business. Key performance indicators are included to measure the performance & progress level of
firm so that decisions making is done in effective manner. They are to be used by superior
authorities so that problems and issues do not arise in near future. Analysing & examining
performance of corporation is necessary so that where the business us lacking is improved
appropriately. This report gives a brief overview about the automobile industry & innovation in the
sector. Hence, for success growth & development it is essential to be innovative and unique in this
competitive world.

REFERENCES
Books & Journal:
Tidd, 2018.Managing innovation: integrating technological, market and organizational change.
John Wiley & Sons.
Biemans, 2018.Managing innovation within networks(Vol. 7). Routledge.
Mousavi, 2018. Dynamic capabilities and organizational routines for managing innovation towards
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Ingle, 2016. Tesla autopilot: semi autonomous driving, an uptick for future autonomy.International
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Kloppenborg, 2017. 7 Tesla MRI for visualisation of small cerebral vessels.Nederlands tijdschrift
voor geneeskunde,161, pp.D552-D552.
Shokrollahi, 2017, June. Measuring the temperature increase of an ultrasonic motor in a 3-tesla
magnetic resonance imaging system. In Actuators(Vol. 6, No. 2, p. 20). Multidisciplinary
Digital Publishing Institute.
Müller, 2018. Fortune favors the prepared: How SMEs approach business model innovations in
Industry 4.0.Technological Forecasting and Social Change,132, pp.2-17.
Pieroni, 2019. Business model innovation for circular economy and sustainability: A review of
approaches.Journal of cleaner production,215, pp.198-216.
Zuber, 2019. The Tesla Turbine–A Comprehensive Review. Journal of Advanced Research in Fluid
Mechanics and Thermal Sciences,62(1), pp.122-137.
Ji, F. 2019. Investigation on performance and implementation of Tesla turbine in engine waste heat
recovery.Energy conversion and management,179, pp.326-338.
Stašák, 2018. Key performance indicators versus business process metrics.International Journal of
Advanced Operations Management,10(2), pp.130-154.
Sofiyabadi, 2016. Key performance indicators measurement in service business: a fuzzy VIKOR
approach.Total Quality Management & Business Excellence,27(9-10), pp.1028-1042.
Volodymyr, 2019. Selection of criteria for key performance indicators by the matrix

method.International Journal of Mechanical Engineering and Technology,10(1).
Hussain, 2018. Corporate governance and sustainability performance: Analysis of triple bottom line
performance.Journal of Business Ethics,149(2), pp.411-432.
Luchi, 2018.Method and system for it resources performance analysis. U.S. Patent 10,031,829.
Žemgulienė, 2018. Structured literature review on business process performance analysis and
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