Innovation and Commercialisation: A Case Study of Tesla's Sources of Innovation and Frugal Innovation

Innovation and
Commercialization

TABLE OF CONTENT
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
Information about TESLA and its commercial potential.............................................................3
Difference between invention and innovation ............................................................................3
Tesla sources of Innovation.........................................................................................................4
Innovativeness of Tesla in context to leadership, organisational culture and teamwork............5
4 P's of Innovation that appraise in value of innovation funnel and frugal innovation...............6
Importance of commercial funnel and NDP in organisation.......................................................7
Innovation case study...................................................................................................................9
Different tools used by Tesla develop, retain and protect knowledge and intellectual property. 9
CONCLUSION..............................................................................................................................10
REFERENCES..............................................................................................................................11

INTRODUCTION
Innovation is a practical transformation of an idea. Which can be product and services,
start-up concept anything that an individual want to establish in a market and make a growth.
Basically innovation commercialisation is new concept that aim to develop a feasible amount of
growth development idea for an innovation (Edwards-Schachter, 2018). Tesla has turn towards
to auto industry electric vehicles for a new innovation and new product development for their
customer and to growth in the market. This report determine Tesla innovation and their
organisational vision, leadership style, and new concept of innovation in the company.
MAIN BODY
Information about TESLA and its commercial potential
Tesla is an electric vehicle manufacturer and clean energy public company. It was
established at San Carlos, California in 2003. The company designs, create and manufactures the
electric vehicles such as cars and energy generation products like solar panels, solar roof tiles
etc. The mission is to accelerate the world's transition to sustainable energy. The company's
mission is accelerated the globe transformation to sustainable energy and to prove that the
electric vehicles can be better and quicker than petrol cars. Tesla's business model is based on
direct sales and service. The company's future and real potential is a software as service business
and stated as leader in autonomous driving technology. The company's cars not only able to set
mileage records but also their fast-charging sustainable batteries.
Difference between invention and innovation
Basis of comparison Invention Innovation
Meaning Invention means creation of
new idea or product in the
market for the first time.
It means making alterations or
implementation of idea in the
existing products.

Concept It is about creating or
designing of a new product.
This is a process of adding
value to active products.
Concerned with Unique product Mixture or combination of
products
Skills Requires scientific skills Requires technical skills and
marketing knowledge
Process Invention can be autonomous
or induced
It is usually induced
Motive The motive is generally with
non-economic
Economic motive
Occurrence When new idea clicks by
scientist
By understanding the need and
requirements of consumers in
existing product
Tesla sources of Innovation
Tesla is the worlds most valuable auto manufacturer. It is working on various innovations
to change the future of the auto-mobile and energy sector. The company has innovate with the
idea of electric vehicle, vehicle design, solar roofs, user interfaces, battery packs, EV chargers
and many more. It is committed to world-changing technology like its line of fast charging
sustainable batteries. The company is a master of building and using innovation capital to win
support for the ideas. Tesla ecosystem strategy also considers the level of individual components
for its products. This also leads in building out a charging network for its cars across the country.
The company's strategy is by the headline grabbing moves like launching the Cyber truck or the
Roadster through which company claims will improve faster than any production car ever made
in the past years. Tesla also uses Lotus manufacturing plants to produce its vehicles. The
company has taken the advantage of Lotus supply chain to push its electric vehicles into the
market. The partnership between both the companies provide a basis for sharing technology
between the two.