Innovation and Communication in Tesla: A Case Study

This case study explores the role of innovation and communication in Tesla, a leading automotive organization. It discusses the importance of organizational vision, culture, leadership styles, and teamwork in driving innovation. The study also highlights the 4Ps of innovation, the need for an innovation funnel, and the concept of frugal innovation. It further evaluates different tools for knowledge development and protection in organizations.

INNOVATION AND
COMMUNICATION

Table of Contents
INTRODUCTION...........................................................................................................................1
LO1..................................................................................................................................................1
P1) ...............................................................................................................................................1
P2)................................................................................................................................................3
LO2..................................................................................................................................................4
P3) ...............................................................................................................................................4
P4)................................................................................................................................................6
LO3..................................................................................................................................................6
P5) ...............................................................................................................................................6
P6) ...............................................................................................................................................8
LO4..................................................................................................................................................9
P7) ...............................................................................................................................................9
CONCLUSION .............................................................................................................................10
REFRENCES.................................................................................................................................11

INTRODUCTION
Innovation plays an vital role in organization as it gives businesses an advantage in penetrating
the markets process faster and it offers a better communication to the growing markets. Thus, it
can bring higher opportunities, and especially in highly developed countries. Tesla is an
American automotive organization baesd on in Palo Alto, California, it was founded in year
2003. The company is specialized in making electric cars. Tesla also sells Power wall, mega
pack and power-pack batteries (Žižka and et.al., 2018). The company provides premium quality
cars yo the consumers. It offers cars to different segments but the higher segment cars are most
purchased by the people. The report will highlight the requirement of creative and innovative
ideas to the organization. The study explains how organizational vision, culture, leadership styles
and team work helps in bringing innovation and commercialization. Further, the study will 4Ps
of innovation and need of innovation funnel for analysing and shaping innovative ideas.
Moreover, the study will highlight development in frugal innovation with various examples. It
also lays emphasis on need of funnel and new product development (NPD) processing for
innovation. It also describes the innovation business case and different sources to generate
funding for business operations. Moreover, The study also evaluates different tools which an
organization can use to develop and protect knowledge in organization.
LO1
P1)
Innovation Invention
Innovation is the process to modify the
invention with new ideas and process to
develop the product better.
Invention is creating or developing something
new. Which is developed for the first time. If
its useful then it gets patent on it from the
governmental procedure(Weberg and et.al.,
2019)
Innovation is necessary in every field to make
the things better and modify the products with
time according to the need. For example
smartphones are already present but there it
comes with new features, developers modify
Invention of the products change the daily life
of humans, creates a history. Such as
Smartphones, first Smartphone was invented
that is IPhone. So it gives a revolution in the
industry and make changes in humans life.

something new daily, and implement on them.
Tesla Motors established in 2003 and
continuously working till now. Tesla is leading
name in the innovation field. It's CEO Elon
Musk is crazy about their idea and just full of
passion to develop something new and
innovate the previous product(Thayer,
Petruzzelli and McClurg, 2018).
Tesla company was develop to manufacture the
electric cars, its first electric car was launched
in 2008 and then its works on it to make it
better.
Innovation is main motive to Elon Musk as
working CEO of the company, he does not
satisfy with the products. His crazy new ideas,
motivates the company's employee to think
something new, when Tesla's first electric
sports car is launched in 2008, after that the
company worked to find and innovate in
automobile industry, like it develops the
Autopilot cars and make innovations on them.
The company's valuation reached to $56
billions in 2017. So The innovations give
benefit to the company and make the most
valuable automaker in United States.
Inventions of Tesla in various field like
establishing the Gigafactory for evolution of
the batteries for its electric cars. So that cost of
the batteries minimized upto 30%. Also
working on developing the batteries for your
home to give power at minimum cost. And
save energy. Supercharger station, Elon Musk
firstly find the solution for charging the electric
cars when you are not at home. So he
developed the supercharger station to charge
the cars. Snake robotic charger which is not yet
launched but it charges the cars automatically.
Tesla invented the Autopilot cars in 2015. And
expand its market share upto $15 billions.
Tesla is innovating the things except the motor
cars only, its changing the thinking towards the
saving energy by promoting renewable energy
capture & their storage. It also consider the
climatic change, to have less pollution , it is
just of its innovative way to save the earth from
pollution. Also shifted to Automatic technology
as cars can be drive on Autopilot mode.
As inventing something new take decades of
time. But in super fast change in
time,innovation is needed. And Tesla is
innovating the things(Vecchiato, 2017).

It gives benefits in various ways to the
company, it stand in world's top 10 company in
2019. Tesla is promoting its technology openly,
it is not afraid to share their technology or
patents. It brings huge revolution for other
companies to work with Tesla(Fabiæ, Zekiæ
and Samarzija, 2016).
P2)
Tesla is American automobile energy industry which is based on Alto, Palo, California. It
is specialized in the manufacturing of electric car, through its manufacturing of solar panel.
The vision of the company to make more car industries 21st century through world transition for
electric cars and it is mainly focus on the renewable energy. Tesla organization want to produce
an questionably of innovative products it include the variety of electric cars that can fulfill the
expectation of the customer Like Model S is one of the quickest ans safest car on the road(Helfat
and Raubitschek, 2018). Organization also committed that it is an world- changing
technology.As creating of a idea is objective of innovation & where the invention can help
actualization for an innovation and decode for an new thinking. As commercialize is procedure
for all aggregate invention and innovation, communication and marketing to buyer.
Organization culture, it encomposses the area for a future objective & goal of Firm. For
example- vision of Tesla to focus on renewable of energy. And try to bring new innovative cars
in the business market, for that the form require new thinking and ideas about existing products
and than only it is possible to invent the new ideas than only finally commercialize product in the
business market It is source through which the organization can launch new innovative of
products in market, So vision of organization have large impact on the process of
innovation(Quirke, 2017).
Leadership also one type of method that organize the Tesla company according to the
firm vision and goal and becoming the success & predetermine behavior and norms of the firm.
The Tesla organization using the democratic leadership, In this leadership, Leader involve all the
employee in the decision making which help the leader to get many new ideas from other
employees and finally he analyses the good ideas which is more beneficial for the organization.

Like wise it take the decision and also guide the workforce according to the achievement of the
vision of the company and also it gather various ideas from the employees which is helpful for
the innovation of the products and help in the development of business in the business market.
Organization culture is an total value, attitudes and norms of the workforce & that are
mainly preserve by the Tesla company and also the process of how the work are to be done in the
company(Fabiæ, Zekiæ and Samarzija, 2016). As the culture of the organization which is
shaped by the countries attitude and values. And difference in the culture of the organization may
have impact on the process of the commercialization and innovation of an service and product
For example Tesla company is very aggressive to meet the goal and vision of the company to
become more compelling car industry in 21st century world transition for car. So organization
culture support or help in shape the process of commercialization and innovation.
LO2
P3)
Innovation are classified into 4Ps of innovation
Product of innovation-
It is subsequent and creation for the introduction of the service and good that to improve
the existing version products or for the new items. Product innovation helps in expansion for the
new products and it helps the company for more innovative ideas that can help in the
organization for getting more ideas from the product innovation. Whereas successful products
has differentiate and create an competitive merits for the seller, as consumer view such products
are superior and unique. That's why innovation of an effectively expand and grow into larger
business(Vecchiato, 2017).
Innovation process-
It is introduction of a new way of do something, which support the Tesco organization to
remain competitive and the meet of an consumer demand. Process innovation is done when
firm solves an existing issues or existing performance of business procedure in various source
that generate which is greatly beneficial to those who perform an procedure an rely on procedure
or both. For example- introduction of completing the new sequence for an existing production
steps that can speed the Tesla company innovation by 100% and also ot save the organization
time(Thayer, Petruzzelli and McClurg, 2018).
Position of innovation-

Change in the context where service and products are to be introduce. It is related to own
perception. It is an promotion and psychological process in Tesla company that affects the
aspects of the innovation. Let look at the electric car and examine what consumer have
perception about the car. And about the business or employee or subcontractors. Today in Global
market position or status is every thing. So it also helps the organization for more providing
innovative ideas which help the Tesla organization to achieve the vision of the
company(Weberg and et.al., 2019).
Paradigm innovation-
It is one of particular innovation way. Where it concern the changes in the source of
something is done in Tesla company. It can be anything. For an electric car, it may be the source
the products are to be sold from cash or on-line payment. It helps the Tesla company for the
innovation of the products as it provide the new ideas for an specific source of an innovation that
can shoe the new way for the innovation and can shape the innovation for more better way than
the simple innovation.
Innovation Funnel
It is one of the tools that helps the Tesla company and its individuals for an innovate
successfully( Carayannis and Meissner, 2017). Where value of invitational funnel that to
create various ideas as possible and a big pirtion that can converted and refined into development
plans of the concrete. Where the lot of ideas is their and the best ideas can remain at last, this
innovation funnel is excellent tools for the priorities ideas that can ensure the best that can fully
advanced projects and developed and other innovation can launched.
Where the idea of the innovative funnel get originates from the world sales. The idea take
lot on the potential consumer for to qualify that make deal as Tesla company and it takes many
brainstorming and ideas sessions that evaluate whether the new service or product can be
profitable. Also the management process of the innovation funnel demand that each idea of the
innovation funnel are to be carefully screened and try to compare to an several criteria, rules, and
filters. It help in the company while making the innovative products as it have lot of ideas which
it take from various customer and by providing the best idea among this lot of ideas that help in
making innovative ideas(Brüggemann and et.al., 2016).

P4)
Frugal innovation is procedure to teduce cost and complexity of production and goods.
That refers to an drducting the enwanted features from the car or goods to sell in developing
nations. For the development of the frugal innovations here the procedure are to be used that
consist of four phases that are(Aalbers and Dolfsma, 2015).
Identify existing frugal innovation- As there are lot of business and market service that
are labeled as frugal innovation. Where firstly identification an existing frugal innovation
through an internet and print media and try to analyses according to frugal innovation. Business
and market service models that found and try to confirm all criteria. For example it identify the
unnecessary things from the car that are not much necessary.
Problem deduction- In this phase determine the issues were transferred an list Besides
an obvious issues such as variation in income, other issues are to be identify such as unique
family structures. As after the gathering of all the issues from all selected frugal innovation,
Result are to be categorized and collected. In total six issues are to be identified that are
education, culture, environment, regulation, infrastructure and finance. It can help out the Tesla
organization for the various solution of the problems(Igarashi and Okada, 2015).
Solution pattern deduction- In this phase the solution that is identified are to be
abstracted until describe the value of the solution. As the number of time the pattern occurred
that had no influence. By this the Tesla company can get the best solution out of it from the
various solution that can help the organization in the commercialization.
Deduction in the solution pattern system- In this phase the target of the statement about
correlation among solution pattern and frugal innovation & issues areas. Such correlation are to
be visualized with help of MDM (Multiple domain matrix). Where the description of pattern
system are somewhat an unconventional, but it shows the dependencies among pattern in
“normal” description network. Where the pattern system gives an important input in
development of the frugal innovation.
LO3
P5)
The funnel is also called sales funnel. It refers to the buying process that companies
leads consumers through when buying an products. The sales funnels offers advance framework

by which company can make analyses the business and assist in identifying the areas of
improvement. The shape of sales funnel is like an pyramid, which is similar to the funnels of the
real world (Collet and et.al., 2015). The width of the size of each part reflects the audience size,
top of the funnel is broadest and the very bottom part is smallest one. This type of funnel is
important for organisation as it assist the following: Awareness, interest, sales/conversations.
NDP is the method of bringing an original goods manufacturing ideas to the market. The
NDP can be broken into five stages which are generation of ideas, research, planning, costing,
sourcing and prototyping.
Role and importance of new product development processing- As discussed above this
development practice gives idea and methods of manufacturing an new product according to the
needs and requirements of the customers.
Long term goal- It assist in developing long term goal for the TESLA. As company is making an
initiative to make electric cars. By new product development they get ideas and methods of
manufacturing an unique product. It assist in making long term goal for the company, as Tesla's
goal is to offer fully automatic electric cars to the customers (Cooke, 2016).
Generating value for customer- NPD helps the company to generate value for the customers. As
the Tesla is making and electric cars it is valuable for the customers. It creates value for
customers as it maintenance cost is less and it is cheaper than the other cars. It offers better
comfort and advanced features to the consumers with more safety features.
Continuous existence for company- By offering new and advance products to consumers the
company is successfully leading in the market. NPD helps Tesla in facing effective competition
in the market as the company keeps on changing its working style and makes initiative to offer
unique products to the customers (Engel, Hamirani and Saklatvala, 2016). It assist in increasing
organization's productivity and helps the organization to sustain in the market.
Importance to society- New products and services are very important for society, As Tesla is
offering electric cars so it is important to society as people get new advance products and it is
very beneficial for the environment also. New and innovative goods assist in increasing the
living standard of people and provided with chance to improved their lives.
Assist in increasing brand reputation- By offering advanced and new products to the consumers
the goodwill of the company is increased. The organization provided premium quality products
and services to the buyers. Tesla is the first company who is making in initiative to manufacture

and offer fully automatic electrics cars to the consumers. In this way NPD assist in increasing the
brand image of TESLA (Hanna and et.al., 2015).
P6)
The innovative business case can include the following steps. It is given below:
Product and service: The company is making an electric car with excellent for and finish and as
the company is known for its quality so Tesla is making a car with superior quality (Hanna and
et.al., 2015). Tesla is using advanced suspension in the cars which is designed as black art, shock
rebound characteristics and suspension geometry and the suspension spring rates are infinitely
variable and interdependent.
Market service: Tesla is an engineering company. The company keeps on doing new
innovations, the company is focusing on making an vehicles with an aluminum structure. The
company is making an initiative to make advanced electric cars. This initiative was taken by a lot
of companies but they are unable to make an car with aluminum body.
Situational analysis: Tesla's is focusing on making good quality batteries, as lithium ion
batteries. The company in future will become worlds most advanced battery manufacturer. Tesla
always used to take challenges by always keeps on making new innovations in the working style.
Strength: Tesla is involved in selling out the most innovative and creative products, goods and
services. They also provide high quality cars which satisfied needs and wants of consumers
Weakness: Tesla has the weakness that they are not engaged in investing much in research and
development department. They are also not involved in motivating workers in order to achieve
its aim and objectives.
Opportunities: Tesla also have the opportunity to expand its market in new areas where they
have not explored.
Threats: Tesla has a huge threat from its competitors, they must have engaged in comping up
with new and creative methods in order to gain competitive edge.
Competitive advantage: In order to get competitive advantage firm must have engaged in
providing high quality product. For monitoring company’s progress firm can engaged in using
various tools such as KPI, benchmarking. In this firm can involve in monitoring performance.

Marketing strategy: Company can make use of various promotional channels such as social
media marketing so that they can reach out large number of consumers.
Risk: Company can also face various risks such as financial risk, technical risk. So they must
involve in developing strategies related to overcoming of risk.
Sources of raising funding-
There are various sources of raising funds. As without the availability of funds the business
operations can not be carried out. The various ways by which funds can be accessed by the
company are as follows-
Banks- Banks are the institutions which provides facilities like depositing and withdrawing the
money. Banks provides different types of loans. Tesla is planning to take loan from the banks for
completing its innovation process. The advantage of bank loan is that it is the cheapest option as
compare to over drafts and credit cards (Huang, Farrukh and Shi, 2018). The interest rate of the
bank loans range from 7 to 10 percent so that's why company is planing to taking loan for
making new innovation. The another reason for choosing the bank loan is that it provides
flexibility in making making returns.
Investors- Tesla is doing an innovation fir that purpose the money is required, the company can
raise the funds from the investors as investors are the persons who makes investment in business
and charges amount of interest on the invested amount. Investors utilize investments so that their
money can be raised and provide income during retirement (Momaya and Lalwani, 2017). Tesla
can raise funds through investors but the main problem in that is that the company has to search
for investors and offer the high rates of interest on their payments. Raising money from investors
is more costly for Tesla as compare to other funding sources.
Initial public offering- An initial public offerings refers to the process of offering shares. On
this the company offers its shares to the market and generates capital from that b(Kim and Rhee,
2018). Interested users who want to make investment and feel satisfied with the shares values
makes investments. IPO allows the Tesla to attract the top talent as it can offer stock options.
Tesla can also raise the funds from this and the main advantage of this is that the fast money is
raised.

LO4
P7)
There are various tools which Tesla can use to protect and devlop, knowledge and intellectual
property. The different types of tools are as follows-
Copyright- Copyright is the right to the products made by the owners.. Without the copyright
the owner can not make changes or reproduce original work. Copyright gives legal evidence of
ownership. As if somebody tries to make any changes in the work they will be panalised for
that. If any business wants to reproduce the work done by some other person they can do it, but
they have to pay the amount asked by the original manufacturer or creator (Plewa and et.al.,
2016). Copyright registration is not very compulsory for protection, but it may provide many
and advantages to company. an business Tesla can also make their innovative ideas and practices
registered under copyright act so that their ideas and procedures get secured, thus leading to
business productivity.
Trademark- Trademark is an types of intellectual property which consists a recognizable sign,
design and expression which gives an identification of products and services differentiation it
from the products of other sources. Also trademark used to give identification to the services
offered and it is called service marks. The advantage of trademark is that it grants the permission
to use registered trademark symbol. It acts as a bar to the registration of another confusing mark.
Tesla can make use of trade marks as it will help the company in distinguishing its products from
the others (Momaya and Lalwani, 2017). As trademarks allows the business to prevent other
competitor from using the the similar or confusingly trade mark. So it will give Tesla a
significant advantage over different competitors in market area.
Patents- Patents are rights granted for innovation and invention, which gives permission to
patent owners to use or license to use another invention and design.
. This benefited Tesla as the company gets protection from the pre determined interval of time,
allowing to deal with the competitor. Tesla can make patent as their ideas and innovative
techniques will not be copied by others. Patents may also serve as a barrier as it stops other
competitors from entering in the market. Competitors can also be considered as risks of patent
infringement bigger than the potential benefits. So in this way Patents can be useful for Tesla
company (Mohalajeng and Kroon, 2016).

CONCLUSION
The study summarized that innovation is very necessary to keep the business activities up
to date. Innovation helps the organization in facing effective competition in the market. It assist
in improving overall productivity of the organization. Consistently making innovation and
offering high quality products to the consumers assist in improving brand recognition and
goodwill of the organization. The study also concludes that there are various sources through
which funds can be generated by the company, as there are banks which provides loan facilities
to the people so company can raise funds from banks. There are other sources also like investors,
investors make investment in the company and asks for the interest on their invested money.
Further, the study concludes that there are different tools by which the innovative ideas,
knowledge and products design etc, can be made secure so that it can not be copied by others
such as copyright, copyright protects the product or idea to be copied by other persons. Once the
company has registered its product under copyright act it makes it secure and no other person can
do any changes in that.

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