5BE001 - Entrepreneurial Creativity: Tesla's Automotive Innovation

This report examines Tesla's impact on the automotive sector through the lens of entrepreneurial creativity and innovation. It discusses the impact of innovation, focusing on Tesla's role in introducing electric vehicles and related technologies. The report differentiates between radical and incr...Read More

Entrepreneurial creativity
and innovation

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
The impact of innovation in the automotive sector.....................................................................1
Discuss the difference between radical and incremental innovation and its impact on
automotive sector........................................................................................................................3
Key changes in automotive sector which have been brought on by innovation.........................4
CONCLUSION ...............................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Entrepreneurial is an extraction of creativity or the values to being exploit the knowledge
in more appropriate manner so as to create more opportunities for that growth and development
of the business. It means to get share and generate the new ideas freely and also get learn from
the failures by which the learning and growth both get measured in systematic manner (Bartnik,
2018). An entrepreneur is the one who has the creative and innovative ideas and understanding
about some specific topic and with this have make a positive change within the marketplace and
it helps to gain the better accessibility and profit in the competitive market. This report is based
on the Tesla as it is an American electric vehicle and a clean energy company and having the
specialisation in battery energy storage, electric vehicle manufacturing as from home to grid
scale. The report is consist of the impact of innovation in the automotive sector, difference
between the radical and incremental innovation along with the key changes in the automotive
sector.
MAIN BODY
The impact of innovation in the automotive sector
Innovation is an act through which the new ideas get implemented within the working
norm of the business through which the effective solutions get meet in terms of the requirement
of the existing market (Tesla's Innovations Are Transforming The Auto Industry. 2016). The
automotive sector brings the random changes and have implement the new technology as for to
provide the improved and better services to the customers and it is more based on the
information centric technologies as like artificial intelligence, internet of things (IoT), block-
chain etc. Tesla also get better impact of innovation that brings the supportive change as in the
working performance and standards and are as explained below as:
Autonomous vehicle: The self driving innovation in business reduces the need of the
drivers and provide the last mile deliveries and decreases the downtime that make the public
transportation comparatively safe. In this Tesla bring equipped the advanced technologies as like
the AL enhanced vision in computer that identify the obstacles that comes in the route (Ciriello,
2018). The vehicle of Tesla is not yet completely autonomous it is more based on autopilot
system as it is most advance technology on the roads. Moreover Tesla planned to develop the
“shared fleet” with the mobile application with this individual could add up the car at the app
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than the income get generate but it reduces the cost of ownership as most of the cars are only use
by the owners only.
Connectivity: Tesla introduces the product as cybertruck or roadster 2.0 and in this the
critics are divisive about this innovation in Elon Musk but the public pays the support through
which Tesla get the pre-order of 200,000 vehicles in advance and have shifted towards the
electric vehicle and achieve constant growth in terms of revenue and have become the long term
shareholder (Cisneros, 2018). In this Tesla claims that their vehicles accelerate speedy as
compared to other productions and it make their core model vehicles as S, X, 3, Y and with this
have accomplish the goals of to be commercialise the idea and bring effective innovation in the
marketplace.
Taking Lofty Market Cap in Future: Tesla reaches to the effective profitability in this
Musk has stated the longest path of development and success as with the S and X model and
after that produces more of the cars that are affordable as like Model 3. Tesla always overlooks
towards to make the money and largest market share as well that drives the sustainability. In
addition the gigs-battery also get introduce that decreases the per unit cost to about 20% and
make the double increment in terms of volume.
Pushing for impossible: The greatest asset of Tesla is its premium innovation and
leadership and with this have hit the ambitious timelines (Zanchi, 2018). To overcome from the
financial instability Musk announced about the scheduling of Model 3 and in the 2018 gain the
aggressive sales by shipping the massive amount of production to the different countries as it is
the one that revving the presence of existing model. In addition Tesla become the ample electric
battery factory by developing the Model 3 sedans and with that they have get along the leader of
innovation in the automotive sector. Furthermore, Tesla realise and pursue unprecedented
innovation with Sample X by hitting the roadblock within the certain period of time.
Sales: The revolutionary aspect of Tesla as with the direct to consumer sales model and
with this the customer directly purchase the vehicles without any interference of third part as like
the dealers or licensee that aid to make the positive impact on the profitability of the business
(Ferreira, 2020).
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Discuss the difference between radical and incremental innovation and its impact on automotive
sector
The radical innovation is basically an invention that destroy the existing model of the
business and have blows or replace the current working system with the completely new one.
Whereas, the incremental innovation is the one in which the improvement get induces in a serial
manner that is made up to make the changes and improvisation in existing products and services.
BASIS Radical innovation Incremental innovation
Focus In this the features and cost of the
existing product will get improvised.
In this the completely new services
get developed.
Business model It is more known as the detailed
planning
In this the planning get performed
as per the learning (Hughes, 2018).
Process In is more formal process that is highly
controlled by the management.
It is an informal process that allows
the flexibility or good fortune.
Resources The industry make the effective and
standardised utilisation of the
resources.
In this the creative execution get
implemented.
In order to induces the innovation within the business there are many decision that has
been taken by the Tesla and in that different challenges also get faced by the business as by
selecting the type of innovation as both are having the positive and negative impact in the
profitability and productivity of the business. The radical innovation in the automotive sector as
like the usage of combustion engine in which the new technologies, processes get create and
include the development of entire working system, services that is never existed before and in the
incremental innovation it changes the overall system and expand the capacity of the business.
In incremental innovation the Tesla maintain the focus on to create the new services as it
grow the profit and sales of existing products and also used to protect the business model along
with reduces the risk as well as compared to the radical innovation (Jovanović, 2018). It helps
the Tesla to be in lead in the competitive market as it is easy to sell the new idea as compared to
the expanded services. Thus the affordability also get matters as in this to develop the surround
that is more effectual with the certain infrastructure and capital improvement.
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The radical innovation is quite complicated as it induce more risk and difficulty so as to
implement the changes but also used to pioneer the innovation for longest term. As the new
market generate the new ideas in terms of development with this the capturing value of the
industry also get more matured and flexible.
Key changes in automotive sector which have been brought on by innovation
The vehicle performance get developed with the innovation and with this there are some
relevant key changes in the automotive sector that get engaged through the innovation and are as
explained below as:
Autopilot: It has been released by the Tesla in 2015 with the caution for the drivers “be
quite careful” as it is the first time that semi-autonomous technology get offered in the
commercial vehicle (Lee, 2020). It is the fully autonomous vehicle and helps to keep the car in
the lane as with the management of speed and distance. It has been fussed as an experiment in
silicon valley with this Elon Musk develop the strategic planning to provide the better automated
system that get easily operated by the customers. In addition Tesla shifted the vision towards
start-up mobile-ye that embarked systematic path towards automation. After this Musk announce
that Tesla make the equipments that makes the vehicle driverless.
Electrification: It is the innovation that is equally influential as with the Model X and S
with this the sales and profit of the business get improvised and embraced by the rivals. As
Tesla releases the mass market EV, chevy bolts as with this the car has been run more than 215
miles as per charge. As the times passes in the year 2040 almost 54% of the cars are worked
electrically as per the environment welfare and most of the country ban the selling and
purchasing of fossil fuel burning.
Design: As most of the electric vehicle are of similar in shape and have a synonymous
look and feature as of Model S along with the capacity as well. But still the electric cars are
infancy as the sales are just 1% comparative to others and half of the population are also be
unaware about the production and selling of electric cars that eclipsed with the availability of
charging stations (Lin, 2019). In this Tesla work to make the cars that more cool and desirable
and get compared the services by which the customer make concern about the manufactured
product and have replace the centre cluster instrument with the touchscreen tablet of 17 inch that
aid the in car technology which it being more beneficial for the inducement of technology.
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Software: It has been done with the ominous approach of Tesla as they have that ability
to update and upgrade the software in their vehicles and it makes them more vulnerable and
obsolescence while keeping the things as per the air updates. There are a few cars that are have
deliver the OTA firmware updates and Tesla provides that in the Model S (Pandit, 2018). They
have generate the ample opportunities by making the integrated in house capabilities and have
develop the willingness that reduces the probability of risk and issues that make the positive
difference in hacking.
Digitalisation across the value chain: It is the factor that affected the ecosystem of the
automotive sector as more of the data make the effective connectivity that helps to explore the
different opportunities to the consumers and with this Tesla induces the different technologies as
like robotics that emphasis the workplace in substantial manner (Shahab, 2019). It has been used
to manage all the working nuances that helps to reduces the risk with more suitability. The
infrastructure of the company also leverage the connectivity with the supplier and the customers
through which the access also get developed and helps to drive the innovation with effectiveness
and progressively. There is the limited success that get induce to make the sustainable stream of
revenue. In this the company make the efficient relationship with the customers that drive more
success and in this growth get maintain by ride-hailing, car sharing market and ride sharing as
well.
It has the better impact on the working behaviours and nature of the business and while
working in parallel with the technology it make easy standard and reduces the production cost
and increases the profitability ration of the business (Rachinger, 2019). In addition in has been
used to grab the attention of the customers with this the automotive sector become more vital and
with have attain the constructive development on continuous basis.
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CONCLUSION
It has been concluded from the above report that the entrepreneurial is a form of in which
the entrepreneur make the adequate implementation of all the ideas and knowledge through
which the success get maintain with more perfection and in this innovation and creativity is the
basic prospect and with this the business have try to make the selective changes that helps to
maintain the lead in the competitive market. There are a lot of impact of innovation in the
automotive sector that make the certain easiness for the customer and helps to drive the
systematic success.
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REFERENCES
Books and Journals
Bartnik, R. and et. al., 2018. Introduction to innovation in the East Asian automotive industry:
Exploring the interplay between product architectures, firm strategies, and national
innovation systems.
Ciriello, R.F. And et. al., 2018. Digital innovation. Business & Information Systems Engineering.
60(6). pp.563-569.
Cisneros, J.R.A. And et. al., 2018, October. Innovation Strategy to Automotive Sector Through a
Software Development Perspective. In 2018 6th International Conference in Software
Engineering Research and Innovation (CONISOFT) (pp. 132-138). IEEE.
Ferreira, J., Coelho, A. and Moutinho, L., 2020. Dynamic capabilities, creativity and innovation
capability and their impact on competitive advantage and firm performance: The
moderating role of entrepreneurial orientation. Technovation. 92. p.102061.
Hughes, D.J. And et. al., 2018. Leadership, creativity, and innovation: A critical review and
practical recommendations. The Leadership Quarterly. 29(5). pp.549-569.
Jovanović, I. And et. al., 2018. Entrepreneurial personality traits and SMEs profitability in
transition economy. Serbian Journal of Management. 13(1). pp.89-104.
Lee, A. and et. al., 2020. Leadership, creativity and innovation: A meta-analytic review.
European Journal of Work and Organizational Psychology. 29(1). pp.1-35.
Lin, W.L. And et. al., 2019. Does firm size matter? Evidence on the impact of the green
innovation strategy on corporate financial performance in the automotive sector.
Journal of Cleaner Production. 229. pp.974-988.
Pandit, D. and et. al., 2018. Disruptive innovation and dynamic capabilities in emerging
economies: Evidence from the Indian automotive sector. Technological Forecasting
and Social Change. 129. pp.323-329.
Rachinger, M. and et. al., 2019. Digitalization and its influence on business model innovation.
Journal of Manufacturing Technology Management.
Shahab, Y. and et. al., 2019. Entrepreneurial self-efficacy and intention: do entrepreneurial
creativity and education matter?. International Journal of Entrepreneurial Behavior &
Research.
Zanchi, L. and et. al., 2018. Analysis of the main elements affecting social LCA applications:
challenges for the automotive sector. The International Journal of Life Cycle
Assessment. 23(3). pp.519-535.
ONLINE
Tesla's Innovations Are Transforming The Auto Industry. 2016. [Online] Available through:
<https://www.forbes.com/sites/innovatorsdna/2016/08/24/teslas-innovations-are-
transforming-the-auto-industry/#7c087d3819f7>.
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