BMW's Innovation Strategy and Performance: A Business Report

This report provides an in-depth analysis of BMW's innovation strategy, performance, and history. It begins with an executive summary and an introduction defining innovation and its importance for BMW, a leading international car manufacturer. The report explores BMW's origins, its transformation from an airplane engine company to a luxury vehicle manufacturer, and its historical innovations, including engine advancements and pioneering car models like the BMW Turbo and the BMW E1, as well as their strategic approach. The report also examines BMW's existing innovation capabilities, including digital innovation, open innovation, and product development. It further analyzes the company's performance in 2016, its industry position, and future plans, including the BMW VISION NEXT 100. The report concludes by summarizing key findings and referencing relevant sources.

MANAGING INNOVATION
IN BUSINESS

EXECUTIVE SUMMARY
The report is based on BMW which leading company and they manufacture and deliver
different cars and motorcycle to the customers. Innovation is the plan which helps in growing the
market share and gain profit through different offering effective goods and services in better
manner. It will assist in creating best possible solutions as an innovation strategy that is used by
BMW Company in order to gain high income and profitability.

Table of Contents
EXECUTIVE SUMMARY.................................................................................................................................2
INTRODUCTION...........................................................................................................................................4
Organization and its Innovation History ..................................................................................................4
Organizations existing Innovation Performance and Capabilities............................................................5
Industry in 2016 ......................................................................................................................................7
CONCLUSION...............................................................................................................................................8
REFERENCES................................................................................................................................................9

INTRODUCTION
Innovation defined as new idea, creative thoughts, new imaginations in the form of
method and device. It is coherent and substantiated logic which help in developing and making
such choices while innovation is a complex 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.
There are various products and services which are offered by BMW company such as engines,
cars and motorcycle. The assignment covers analysis of whole innovation history of an
organization and what are the future innovation plan of the company. Along with this, evaluate
respective company existing innovation performance and examine their 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 (Innovation History of BMW. 2015). 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 (The History and Future of BMW. 2015.). After this, the brand was
noticed as a whole and the rest is considered as history now. 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”. BMW Strategic
Approach is that where they leverage innovative technologies, digitalization and sustainability to
deliver unique experience to customer.

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 in all its products they produced so that they can easily gain
attention of large number of customers. 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, the company launched first 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 the year of 1972 which is
considered as first car that had ground breaking vehicle safety innovation, radar distance sensors
and many other unique features. 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 known 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 which 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 activities 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 BMW, technology changes and they need requirement for innovation which represent
major concerns for an organization with the help of product development and consumers’
engagement functions and activities. They are mainly implemented open innovative applications
which increasing and its values are creating in better manner. BMW use digitalized innovation
because they are used effective sources and method in order to establishing the direct
communication with their consumers. With the help of innovative performance, they are
attracting large number of people 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.
BMW group using digital technology in order to optimize the production procedures
which enables single person customer wishes and developing production or manufacture in more
flexible way. The assistance system and process simply complex and it is difficult for producing
and innovative light weight robots operator without safety guard which can assist in reducing
employees work pressure (BMW Future Plans. 2015). 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.
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. They are developing and
formulating appropriate strategies that can help them in gaining higher income and revenue.
BMW is no stranger to innovation, their brand has been laid out a plan for their next 100

vehicles. They are developing and creating the BMW VISION NEXT 100 for future time period.
In future, they are analyze some opportunities in advancement of technology and also
continuously provide drivers which help in making road. BMW future strategy mainly focus on
company's long term success and safeguarding its independence. The BMW group has set
ambitious interim target and set appropriate goal. During this time period, the company plans for
enhancing the deliveries in the motorcycle business with 50 percent to 150000 units per annum
(Analysis: BMW Group sets a course for the future. 2015).
Industry in 2020
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. Industry 2020, BMW series has made is official debut at the Paris Motor Show.
This core model in the BMW lineup which is known internally under the specific code name
G20. BMW 3 series are marked by more sharply which is defined, sculpted like. The car look is
just that evolutionary and it is not revolutionary alteration (2020 BMW 3 SERIES. 2015). In this
year, company achieved new records in terms of revenues and earnings. 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 (Future plans 2020. 2017). 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 burden. 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
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.
Biemans, W., 2018. Managing innovation within networks. Routledge.
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.
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.
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.
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.
Trevino, L.K. and Nelson, K.A., 2016. Managing business ethics: Straight talk about how to do
it right. John Wiley & Sons.
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.
Online
Innovation History of BMW. 2015. [Online]. Available through:
<https://www.cleverism.com/the-history-of-bmw/>.
The History and Future of BMW. 2015. [Online]. Available through:
<https://www.bmwblog.com/2015/05/02/the-history-and-future-of-bmw/>.
BMW Future Plans. 2015. [Online]. Available through:
<https://blog.bmwofcincinnatinorth.com/2018/03/23/bmws-future-plans/>.
Analysis: BMW Group sets a course for the future. 2015. [Online]. Available through:
<https://www.reliableplant.com/Read/29141/workforce-retention-employees>.

2020 BMW 3 SERIES. 2015. [Online]. Available through: <https://www.auto123.com/en/news/bmw-2020-3-
series-world-premiere-paris/65175/?folder=industry>.
Future plans 2020. 2017. [Online]. Available through:
<https://auto.economictimes.indiatimes.com/news/industry/bmw-group-records-best-ever-sales-in-
2016-for-6th-straight-year/56438431>.