Innovation Management and Strategies

The provided study highlights the importance of innovation for companies and industries. It showcases how Toyota became a top company in the automotive industry due to its innovative strategies, including 3D printing trends and digital innovation management. The assignment discusses various references from books, journals, and online sources that emphasize the significance of innovation in managing customer loyalty, cost-effectiveness, and competitive advantage.

Managing Innovation in
Business

EXECUTIVE SUMMARY
This report has described about how business manages innovation in order to grow and
develop in different countries. Moreover, it has been described that how innovation is benefiting
auto-mobile sector. In the first section it has given an overview about auto mobile sector and
Toyota overview. It includes how Toyota implemented innovation in their process and procedure
and how it was useful for them to grow and expand in different countries. In past history Toyota,
it has introduced the engine innovation, ingenious vehicle with this it adapted and implemented
new changes and described how Toyota satisfied their existing and new customers. It described
that how exiting innovation of Toyota made remarkable success in auto-mobile sector and
benefit it as well.
Further, in report it has been discussed about existing performance of Toyota and what
capabilities of innovation it contains through which they can expand in different markets.
Furthermore, it has shown such as electric air compression, wireless electric vehicle, partner
robot programs, the wing lit, fuel sell vehicle, auto mobile driving technology and so on.
At last this report has given an overview about automobile industry in 2018. What are the
innovation it will bring, how it will transform growth and development of organisations
operating within industry, etc. Then, conclusion and recommendations are discussed in the end.

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY ..................................................................................................................................1
The Organisation & Industry Overview......................................................................................1
The Organisations existing Innovation Performance and Capabilities.......................................2
The Automotive Industry in 2018...............................................................................................5
CONCLUSION ...............................................................................................................................6
REFERENCES ...............................................................................................................................7

INTRODUCTION
Innovation in business means applying new ideas or using new process or producing
products by new procedures or improvement in existing process or changing business model.
Innovation can take business to new heights level or it can also sink the business (Goffin and
Mitchell, 2016). Toyota is a public and multinational manufacturing company in automotive
industry, whose headquarter is Toyota City, Aichi, Japan. This was founded on 28th August 1937
by Kiichiro Toyoda. The Report will highlight the history innovation of Toyota and its currently
innovative performance and capabilities. This report will also tell about the automotive industry.
MAIN BODY
The Organisation & Industry Overview
TOYOTA's HISTORY – Toyota's story started in 1933 when production of Toyota
auto-mobiles was started. In 1935, Toyota produced its first car A1 and first truck G1. In 1936,
Toyota launched a new car model AA, which is cheaper than Ford's car. With car, Toyota started
producing trucks and buses. With time passing, Toyota gain success in producing trucks and
buses rather than cars.
In 1947, Toyota launched new car Model SA, which gave Toyota a little success. After SA
model, Toyota came with model SF and model RH. In that time Model RH started considering as
powerful model for Toyota as it gave a huge success to Toyota.
By 1955, Toyota had become a known name. In the same year, Toyota diversified their business
line adding the production of jeep. After launching so many models and increasing the numbers
of producing capabilities, now Toyota was all set to expand its business into international
markets (History Of Toyota, 1995-2019).
In 1957, Toyota began to expand its business in America. In 1959, company expanded in Brazil.
In 1960, company establishes itself in Thailand with the new research and development
technology which help the firm to get success globally. In 1973, when oil crisis occurred, there
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was a huge demand for Small car, which Toyota fulfilled by providing the good looking and
qualitative products. By the end of 1970s, Toyota made a global presence in the world for being
exporter and producer.
In the starting of 1980, Toyota received its first Japanese Quality Award. In 1982 Toyota Motor
Company merged with Toyota Motor Sales Company and became TOYOTA MOTOR
CORPORATION. After two years, in 1984, Toyota did joint venture with New United Motor
Manufacturing, Inc. (NUMMI). By now Toyota had the troubled in Luxury Market. But at the
end of 1980, Toyota launched its luxury car LEXUS, which became popular in luxury market.
By the starting of 1990s, Toyota gained extremely popularity for reliability and low-cost
maintenance vehicles. After that, Youngsters went crazy for Toyota because company launched
MR2 model. Also, Toyota expand its business in India.
In 2002, company entered into France market by Joint venture with French motoring companies
Peugeot and Citroen. In 2003, Company entered into North America market. Currently Toyota is
considering one of most profitable company in top 10 companies (Balakrishnan, 2015).
TOYOTA's INNOVATION HISTORY – It can be understood by following points
which is mentioned below -
 ENGINE INNOVATION – The company introduced S-type, P-Type and D-type diesel
engine, which helped the firm to produce qualitative models.
 A MERGER – In 1982, the merger between TOYOTA MOTOR COMPANY and
TOYOTA MOTOR SALES was happened. After merger it became one company,
TOYOTA MOTOR CORPORATION. This merger gave company a huge success.
 INGENIOUS VEHICLES - Toyota made ingenious vehicles like Camry, RAV4, 4-
Runner, RX, etc. which is love by customers so much.
 ADOPTS NEW CHANGES – The firm imagined the demand for small cars and
changing environment due to pollution. Toyota accepted both changes and launched new
model which fulfilled the demand of customers and environment friendly cars such as
hybrid cars (Biemans, 2018).
The Organisations existing Innovation Performance and Capabilities
TOYOTA's EXISTING INNOVATION PERFORMANCE – The innovative
performance done by Toyota are as follows -
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 ELECTRIC AIR COMPRESSOR – Air compressor is a device being used in vehicle for
converting the power into energy stored in compressed air. Toyota invent electric air
compressor which will also work when vehicle's engines are stopped. It is done by
company to use the fuel efficiently and continuously using of AC in vehicles
comfortability without wasting fuel at idle time. Some of Electric Air Compressor are
ES14, ESB20, ESB27, ESBG27 etc.
 PARTNER ROBOTS PROGRAMME – Robot is an electronic machine who is looking
like human and even doing work like human. It is made for the help of human. Toyota is
running Partner Robot Programme since 2011. Behind this programme, Toyota has
purpose of improving the quality of human’s life. Robot made by the company will help
inpatient rehabilitation and people who lives in home.
 INTEGRATED SAFETY TECHNOLOGY – Integrated Safety Technology is invented
for reduction in accidents and provide safety to the people. In this area, Toyota follow
Integrated Three Part Initiative which basically focus on PEOPLE, VEHICLES and
TRAFFIC ENVIRONMENT. Behind this initiative, Toyota's aim is to reduce the cause
of traffic accidents. For this, Toyota gives Traffic safety education to people, makes the
safer vehicle by analysing the data from accidents research and helps the government in
creation of safe traffic environment.
 WIRELESS ELECTRIC VEHICLE CHARGING – Toyota has developed wireless
charging system for electric vehicle that use electronic power, currently it is testing by
the company itself. This innovation allows the electric vehicle to be charged without
wires or plugs in the ground floor or parking lot. It is designed by company to reduce the
any loss in power due to heights differences in coils.
 I-ROAD – Toyota I-Road is an electric three-wheeled mobility vehicle. Behind the
production of I-Road, company's main aim is to provide the flexibility in mobility, reduce
the space of road, helmet – free driving and unique design of vehicle (Betancourt,
Mooney and Ross, 2018).
 THE WINGLET – Toyota winglet has been developed and officially launched in 2008.
Since then Toyota winglet personal mobility concept has been defined and innovated. It
is developed by Toyota to providing ageing population to restrain from walk. It is
lightweight in nature, easy to carry and electronic charging system.
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 FUEL CELL VEHICLES – A fuel cell vehicle is a kind of electric vehicle which uses
fuel cell. Fuel cell is a electronic device which converts the fuel into electronic with the
help of different batteries. These batteries are using in the fuel cell vehicle. Behind the
construction of this kind of electric vehicle, Toyota has the following purpose like no
need of oil or gas, easy maintenance of these vehicles and environment friendly. Toyota
MIRAI is a fuel cell vehicle (Lilja and et.al., 2017).
 TOYOTA SAFETY SENSE – To provide safer and convenient vehicle, Toyota come up
with new technology, TOYOTA SAFETY SENSE. Toyota safety sense is a bundle of
features. That features keeps driver and passenger safe from any harms. It includes
following sensor like - Clearance Sonar, Back Guide Monitor, Intelligent Clearance
Sonar, Intelligent Parking Assist and Panoramic View Monitor.
 AUTOMATED DRIVING TECHNOLOGY – Automated driving system is a system
where decision making and operation of auto-mobile is done by machinery and electronic
device rather than humans. It is adopted by Toyota because the firm thinks that
automated driving technologies will benefit for all the people, reduces the number of
accidents, enjoying driving to fullest and smooth mobility for societies. It will also give
benefits to senior citizens and those people who needs extra help/supports. Toyota Lexus
Co-Drive introduced which is automated driving vehicle (Palm, Lilja and Wiklund,
2016).
TOYOTA's CAPABILITIES -
1. Toyota has Brand Equity. After a long way, Toyota has been able to create a brand image
in the mind of customers by providing various unique design, reliability, qualitative,
safer, convenient and low cost vehicles in comparison of another company (Singh and
Gaur, 2018).
2. Toyota is Leading Company in Automotive industry. Because Toyota had always
adopted changes quickly. Also, Company invested in technologies and research &
development to make products advance, unique, customer friendly and environment
friendly. In short, it has rapid innovation capability. This all lead company to grow its
market shares.
3. Toyota has Diversified Products Range with different costumer segment, which has
sedans, SUVs, sports vehicles, hatchbacks, minivans, station wagon, trucks and buses.
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Also, Toyota produces Lexus which is premium cars, hybrid cars and automated vehicles
too.
4. After come a long way, currently Toyota have enough human, financial, material and
non-material Resources which helps the company to do something new and innovate and
also expand the business continuously.
5. Toyota has success in marketing and promotional strategies which help the company to
gain recognition and mark the global presence (Chen and et.al., 2019).
The Automotive Industry in 2018
Without Automotive, World cannot be imagined. Automotive means the things which is
related to motor vehicles. Automotive industry has various organizations and companies who
involve in the designing, manufacturing, selling, supplying and marketing of the vehicles. The
industry started in year 1860. It is highly competitive industry and dominated by Japan, South
Korea, Europe and US.
In 2018, Toyota is 2nd largest manufacturing companies. Also, Toyota ranks at 6th position
out of top 50 companies by revenue. In Japan's big three in Automotive industry, Toyota's name
come first. Toyota become largest car company in 2018 in all over the world.
From past few years, Automotive industry has changed a lot. Now Automotive
companies are investing in technologies so that they can beat their competitors and provide their
customers best and advanced vehicles. There are so many trends happen in 2018 which affect
and change the industry (Matzler and et.al., 2015). These trends are as follows -
1. Ride Sharing - Now a days, people are concerning about petrol and environment
pollution. To reduce the usage of petrol and level of pollution, people start sharing their
vehicle with those whose path or destination are same. This lead to reduction in
pollution, space of roads, accidents and save their money.
2. Increasing Demand for Electric Vehicles – There are rapidly change in the demand for
electric vehicles because electric vehicles are lightweight, cheap as compare to petrol
vehicles, fuel free, stylish and environmentally friendly. These all features are attracting
people to buy those vehicles.
3. Automated Driving Vehicles – These are vehicles which is manufacture by driving sense
machines and artificial intelligence. This technology drive the vehicles without any
human assistance. Automotive companies have started manufacturing and testing these
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vehicles so that it can be launch in near future for customers (Top Trends in the
Automotive Industry 2018, 2019).
4. Increasing popularity of Crossover – Today's generation needs fuel and cost
effectiveness vehicles which is fulfil by Crossover. Moreover, it provides customers
comfort in the driving which also become a major factor in popularity of Crossover.
5. Automotive Infotainment – Automotive companies are teaming up with software
companies to launch infotainment system which provide connection between vehicles
and mobile software like IOS and Android. Basically, companies are all set to provide
in-vehicle infotainment (IVI) which provide customers amazing features like by using
mobile phones, customers can see the level of fuel in vehicles etc.
6. Robotic Technology – A major trend which is happening in 2018 is Vehicles are
producing by Robots instead of Human. These robots are experts in production of
vehicles. They are controlled by computers which is handle by company. These robots
can walk, work, talk and solve the problems like a human do.
7. Three Dimensional (3D) Printing Trend – Companies are using 3D technologies to make
prototype/model of vehicle design and fit so that it can be easy for company to
manufacture vehicle without any confusions or mistakes (Nambisan and et.al., 2017).
CONCLUSION
From the above study, it has been summarized that Innovation become an important
aspect for any company and industry. Toyota became popular in short time period because of its
innovation strategies. Without innovation, Toyota could not become top company in Automotive
industry. To attract customers, to retain customers, to create strong customer loyalty, to produce
cost effective products, to deal with changes happening outside the company and to compete
with competitors, it was necessary for Toyota to be innovative. Not only company, also
automotive industry had to become innovative so that customers can be satisfied and can use
advanced vehicles.
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REFERENCES
Books and Journals
Balakrishnan, N., 2015. Toyota production system. In Dependability in Medicine and Neurology.
(pp. 239-260). Springer, Cham.
Betancourt, P., Mooney, J. and Ross, J.W., 2018. Digital Innovation at Toyota Motor North
America: Revamping the Role of IT.
Biemans, W., 2018. Managing innovation within networks. Routledge.
Chen, J. and et.al., 2019. The Routledge Companion to Innovation Management. Routledge.
Goffin, K. and Mitchell, R., 2016. Innovation management: effective strategy and
implementation. Macmillan International Higher Education.
Lilja, J. and et.al., 2017. Is innovation the future of quality management? Searching for signs of
quality and innovation management merging. International Journal of Quality and
Service Sciences. 9(3/4). pp.232-240.
Matzler, K. and et.al., 2015. The impact of family ownership, management, and governance on
innovation. Journal of Product Innovation Management. 32(3). pp.319-333.
Nambisan, S. and et.al., 2017. Digital innovation management: Reinventing innovation
management research in a digital world. Mis Quarterly. 41(1).
Palm, K., Lilja, J. and Wiklund, H., 2016. The challenge of integrating innovation and quality
management practice. Total Quality Management & Business Excellence. 27(1-2). pp.34-
47.
Singh, S.K. and Gaur, S.S., 2018. Entrepreneurship and innovation management in emerging
economies. Management Decision. 56(1). pp.2-5.
Online
History Of Toyota. 1995-2019. [ONLINE]. Available through: <https://www.toyota-
global.com/company/history_of_toyota/>
Top Trends in the Automotive Industry 2018. 2019. [ONLINE]. Available through:
<https://www.infinitiresearch.com/thoughts/top-trends-automotive-industry-2018>
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