Managing Innovation at BMW: A Comprehensive Business Report

This report provides an in-depth analysis of BMW's innovation journey, from its origins to its current standing as a leading automotive manufacturer. It explores BMW's history, highlighting key innovations such as advancements in engine technology, early adoption of safety features, and the development of electric vehicles. The report examines BMW's existing innovation performance and capabilities, emphasizing how innovation is integrated into its business strategy to increase market share and customer engagement. It also discusses BMW's performance in 2016, including revenue growth, sales figures, and investments in new technologies. The report concludes by emphasizing the importance of innovation for BMW's continued success in the automotive industry, including strategic approaches like digitalization, sustainability, and the use of technological features across different car models. This detailed analysis provides valuable insights into BMW's innovative practices and their impact on the automotive industry.

MANAGING INNOVATION
IN BUSINESS

EXECUTIVE SUMMARY
The report is based on BMW Company which leading company that are manufacture and
deliver different cars and motorcycle to the country people. Innovation is the plan which helps in
growing the market share and gain profit through different goods and services in better manner.
It will assist in creating the solutions as an innovation strategy is used by BMW Company in
order to gain attention of large number of customers in all over the world.

Table of Contents
EXECUTIVE SUMMARY.........................................................................................................................2
INTRODUCTION.......................................................................................................................................4
Organization and its Innovation History..................................................................................................4
Organizations existing Innovation Performance and Capabilities............................................................4
Industry in 2016.......................................................................................................................................6
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................7

INTRODUCTION
Innovation defined as the conflated with strategy and policies for making business more
powerful and famous. It is coherent and substantiated logic which help in developing and making
such choices while innovation is a messy business that are create solutions to essential problems.
It is required for company is to manage innovation activities and functions within the business
concerns that can be used for gaining high income and profitability in proper manner (Souto,
2015). The report is based on BMW Company which is international car manufacturing company
and deals in variety of innovative cars supplied to their customers in all over the world. The main
purpose of this assignment is to analyze the innovation history of the organization which is
described here. It can be determined organization existing innovation performance and examine
the capabilities in better manner.
Organization and its Innovation History
The organization BMW was originated with three other companies namely Rapp
Motorenwerke and Bayerische Flugzeugwerke in Bavaria. The company is now known as BMW
i.e. Bayerische Motoren Werke. From over the last 100 years, BMW has transformed themselves
from a struggling airplane engine company to a highly luxury vehicle manufacturing company.
This organization has also focused on social issues and is also a biggest sponsor of professional
golf. It was said that back in 1970’s, the Americans didn’t knew about this brand called as BMW
so in order to increase awareness about the brand, the company participated in various kinds of
racing games like ‘states with the 3.0 CSL’ and they continued to win those races. After this, the
brand was noticed as a whole and the rest is considered as history now (Carayannis, Sindakis
and Walter, 2015). From that time itself, this brand is considered as the forefront of technology
and innovation. One thing that they never changed was their driving experience they give to their
customers. The vision of company is that they consider themselves as no. 1 and promotes
“INDIVIDUAL PREMIUM MOBILITY”. Their Strategic Approach is that they leverage
innovative technologies, digitalization and sustainability to deliver unique customer experience.
INNOVATION HISTORY
It can be strongly said that after the formation of company, innovation is considered as
one of the main success factors of the company. Talking about technologies and mobility, the

company is able to make sure that they are giving their best and develop the company in all the
areas. The company was innovative was innovative in all its products they produced. This
process started from 17 June 1919, the test pilot reached an altitude of 9760 meters into the
aircraft which was powered by BMW. It created a new world altitude record. After this, on 28
September 1963, company launched first r BMW R 32 under their brand. On 1st October 1928,
company bought Dixi Automobile Werke who product was Dixi 3/15 which later on became
BMW’s First production car (Van Lancker, Wauters and Van Huylenbroeck, 2016).
It is required to be noticed that the BMW Turbo launched in 1972 is considered as the
first car that had ground breaking vehicle safety innovation, radar distance sensors and many
other unique features as well which were very uncommon at that time. Another innovation they
did was that the software which is used in cars like BMW 7 Series has more than double the no.
of lines of software codes that are used in Windows 7. The company also launched a car named
as BMW E1. It is regarded as world’s first real fully modern electric car. It was launched in 1991
(Brunswicker and Vanhaverbeke, 2015). The BMW X 5 models is considered as one of the best
sports activity model. It also helped a lot in making the brand success. In 1935, BMW R 12 and
BMW R 17 got the title of World’s First Hydraulic Front work. Even the BMW Tower which
was prepared in 1973 is considered as one of the best innovative forms of civil engineering. It is
also listed as a monument.
Organizations existing Innovation Performance and Capabilities
Innovation is the plan which helps in growing the market share and gain profit through
different goods and services in better manner. It will assist in creating the solutions as an
innovation strategy is used by BMW Company in order to gain attention of large number of
customers in all over the world. The business operation is effectively run the whole organization
operations and functions in order to reach with set goals and targets in effective manner. BMW is
the leading production and manufacturer company of different innovative cars and motorcycle in
Europe which headquarter in Munich. The company mainly operates its business operations and
functions in Europe and America. Apart from this, the company also provides information
technology and financial services or facilities to their customers. Innovation is the main aspect of
this organization that are helpful in gaining attention of large number of people towards different
cars and motor cycle (Andersson, Forsgren and Holm, 2015).

In every business organization, technology changes and requirement for innovation
represents the major concerns for the organizational with the help of product development and
consumers’ engagement functions and activities. It is required for firm is to implement the open
innovation applications which increasing and value are creating in better manner. BMW use
digitalized innovation because the main sources and method for establishing the direct
communication with the consumers. With the help of innovative performance, they are attracting
large number of customers towards their cars and other vehicles. In order to reaching with
organizational growth, profitability and identification, the firm needs to ensure about importance
of innovative practices and the requirement of internal changes.
The BMW group is using digital technology in order to optimize the production
procedures which enables of single person customer wishes and developing production in more
flexible manner (Trevino and Nelson, 2016). The assistance system and process simply complex
and difficult of producing and innovative light weight robots operator without safety guard
which can assist in reducing employees work pressure. They are using 3D data and information
which allow for better and appropriate design, while matrix codes ensure an efficient supply of
different parts to plants and machines. The BMW Company sets new trends in production
technology and sustainability as an innovation leader with intelligent material mix where
technological shift towards digital applications and resource efficient manufactured. At the same
time, flexibility and continuous optimization of value chains ensure the competitive advantages
in better manner.
BMW is also identified as its abilities to spread design features among their product lines.
It is regularly moves technological features from high end luxury automobiles in less costly
vehicles. They are performing innovative activities which include changes in car features, add
new machines that increase the speed of car and make policies that can be useful for customers.
In current time period, BMW has vehicles that will measure for identifying and analyzing the
cars and motorcycle. The company is manufacturing cars with additional and new type of
features for make position in the market place against their competitors (Biemans, 2018). They
are developing and formulating appropriate strategies that can help them in gaining higher
income and revenue. Along with this, it is required for firm is to focus on current innovative
performance which is helpful in attracting customers whether they are domestic as well as

international level. Innovation performance and capabilities is essential for making and
maintaining business operations and functions in better manner. This will assist in gaining
customers in order to reaching with desired goals and targets effectively. They are developing
and making appropriate innovative activities which help employees motivated and encouraged
towards manufacturing different or unique type of cars and motorcycles and offer discounts to
their customers.
Industry in 2016
BMW has always produced goods and services ion an highly innovative manner and thus
they have changes the look to the future. They are currently working in 14 countries and have a
global sale network. It can be said that the company developed a lot in 2016. As per the reports
published in Munich, BMW saw 2.2% growth in their revenues and had a total income of
€94,163 million. The company also registered sales of 23, 67,603 cars in 2016 which saw of 15%
from the previous year (Frow and et. Al., 2015). They even sold 100,000 units if electrified
vehicles as well. As per the statements given by the president of BMW, it was that 2016 was not
an easy year for BMW group. 2016 was special for the company because this was their first year
after completing 100 years. In this year, company achieved new records in terms of revenues and
earnings. It is also required to be known that in 2016, the company sold more than 2 million
vehicles for the first time within a single year. Their MINI Clubman and MINI Convertibles is
considered as one of the biggest growth drivers. Their car Rolls Royce gave the second best sales
performance in the history of 113 years. More than 4000 Rolls Royce cars were sold in that year.
In this year, The company continues to invest in innovative technologies and also their
production network in order to ensure sustainability in future. They also employed the workforce
of 124,729 all over the world. It was done by them with the motive of recruiting more technically
sound people so that more innovative products can be produced by the company. The positive
thing in all this was in spite of Brexit, the spending of consumers in UK did not deteriorate. Also
Despite of political and economic uncertainties, the deliveries to the customers increased by
5.3%.
The company also saw a massive growth in Europe and Asia as BMW surpassed the one
million targets of sales of BMW, MINI and Rolls Royce vehicles. A statement came from the
officials of the company which said that with the addition of new models company was able to

increase their sales and achieve highest position in the market. It was delightful that Brexit didn’t
impact the company in any wrong way as otherwise it could have caused huge loss to the
company (Saebi and Foss, 2015). The company will continue to innovate their products and
services in the entire manner they can. Now, the company is coming up with latest techniques in
their cars which are making them more unique in the market like Automated Car Parking,
Autonomous driving, connectivity as well. With all these developments, company has the power
to change thinking of people towards vehicles.
CONCLUSION
From the above described report, it can be analyzed that technology changes and
requirement for innovation represents the major concerns for the organizational with the help of
product development and consumer’s engagement functions and activities. The assistance system
and process simply complex and difficult of producing and innovative light weight robots
operator without safety guard which can assist in reducing employees work pressure. The
company is manufacturing cars with additional and new type of features for make position in the
market place against their competitors.

REFERENCES
Books and journals
Biemans, W., 2018. Managing innovation within networks. Routledge.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
Andersson, U., Forsgren, M. and Holm, U., 2015. Balancing subsidiary influence in the
federative MNC: A business network view. In Knowledge, Networks and Power (pp. 393-420).
Palgrave Macmillan, London.
Souto, J.E., 2015. Business model innovation and business concept innovation as the context of
incremental innovation and radical innovation. Tourism Management. 51. pp.142-155.
Carayannis, E.G., Sindakis, S. and Walter, C., 2015. Business model innovation as lever of
organizational sustainability. The Journal of Technology Transfer. 40(1). pp.85-104.
Van Lancker, J., Wauters, E. and Van Huylenbroeck, G., 2016. Managing innovation in the
bioeconomy: An open innovation perspective. Biomass and Bioenergy. 90. pp.60-69.
Brunswicker, S. and Vanhaverbeke, W., 2015. Open innovation in small and medium‐sized
enterprises (SMEs): External knowledge sourcing strategies and internal organizational
facilitators. Journal of Small Business Management. 53(4). pp.1241-1263.
Frow, P. and et. Al., 2015. Managing co‐creation design: A strategic approach to
innovation. British Journal of Management. 26(3). pp.463-483.
Saebi, T. and Foss, N.J., 2015. Business models for open innovation: Matching heterogeneous
open innovation strategies with business model dimensions. European Management
Journal. 33(3). pp.201-213.