Toyota Innovation Analysis: Future Prospects and Building Capabilities

Running head: TOYOTA INNOVATION ANALYSIS
TOYOTA INNOVATION ANALYSIS
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1TOYOTA INNOVATION ANALYSIS
Executive Summary
This report aims to discuss the innovation procedure that the highly celebrated automobile
company Toyota Motor Corporation can involve. This report has applied an evaluative
approach to a huge range of business information as well as appropriate methodologies to
identify the chief drivers of innovation in the business of Toyota corporation. This report has
analysed the present situation of this company based on which it has predicted the future
prospect that Toyota company can face within 2020 and beyond. This organisation can
innovate the product and maintain a sustainable growth if identify the innovation
requirements. The future innovation capabilities of the company have focussed on the
disruptive and incremental models of innovation. This will help the managers of the company
to effectively motivate the employees and share their knowledge. By means of making the
employees a part in the innovation process, the management of Toyota Motor Corporation
can be soaring high in the domestic as well as global market. Through its environmental
analyse this report has illustrated how this particular organisation and its leaders can plan
successfully then only prepare for both process as well as product innovation. This report has
critically discussed the essence of organisational knowledge, method of knowledge transfer
as well as cross-functional co-operation to analyse or assess innovation ability. In addition to
this, the report has effectively engaged in proper identification of new product and identified
the key activities required for its successful development. This report finally concludes with
the building future capabilities of the firm.

2TOYOTA INNOVATION ANALYSIS
Table of contents
Executive Summary...................................................................................................................1
Introduction:...............................................................................................................................3
The Future of Toyota 2020 and Beyond:...................................................................................3
Innovation Requirements for Toyota:........................................................................................5
Building the Future Innovation Capabilities for the Organisation.............................................6
Conclusion..................................................................................................................................9
References:...............................................................................................................................10
Appendices:..............................................................................................................................12

3TOYOTA INNOVATION ANALYSIS
Introduction:
The aim of this report is to develop an innovation road map to prepare the innovation
process of a highly celebrated automobile company Toyota Motor Corporation. The
operational environment of this particular company has shown a sharp growth in the near
future and beyond as the chief aim of this company is to develop itself through innovation.
The report is placed in the context of recommendations from coursework 1 on areas that
Toyota need to innovate or improve on for the future. In this study the performance
management practices for developing the team has been suggested for improving the level of
productivity of the company. On the other hand, effective organizational culture is required to
get developed for managing the political and economic situation of the company. The key
recommendations are as follows
 Performance management practices
 Development in organizational culture
 Introduction of team management strategies
 Introduction of modern technology
This report has also discussed the methods of process innovation which encompasses the
complete innovation process of the company. This report has analysed the future prospects of
Toyota till 2020 and beyond, its scopes of innovation and ways to build future innovation
capabilities of the organisation.
The Future of the Industry from 2020 and Beyond:
The global sales of the passenger cars have exceeded 78.6 million in 2017. The
United States as well as China are the largest automobile markets in the world as they have
highest production in this industry as well as sales. This is due to the fact that the needs of the
customers are continuously in caressing so also the technological support. Beside the brand
like Ford, other companies such as Toyota, Volkswagen, and Daimler have been gaining
huge profit and become the major automobile makers in 2018. There are two main trends that
will be shaping the innovation trend of the recent automobile industry beyond 2020. The
future cars will be autonomous, connected, shared and electrified in short, these cars will be
will be more flexible and more individual for the users. The cars will be more effective n
future as these will be more focused on the users. The technical savvy young generation will
play key role in this transformation of automotive industry.
For the company like Toyota, it is mandatory to utilise technology at its best. It needs
to understand the demand of the new generation customers hence can launch new driverless
cars. This is the reason why the company needs to invest the best technology, human and
financial resource into this invention. This company has been serving the demands of the
global customers with changing times and places. In this technologically advanced society
where the customers are compactly dependent on the services associated with internet and
prefer to communicate digitally (Al Ariss and Sidani 2016). This trend will be increasing
therefore, the company needs to team up and launch open platform infotainment systems to
connect the popular mobile operating systems. This will enable the app developers to adapt