Innovation Analysis: General Theory & Electric Car Development Report

This report delves into the concept of innovation, defining it as the process of improving products to enhance consumer experiences and create value within a system. It emphasizes the crucial role of innovation in driving organizational growth and market sustainability. The report introduces the General Theory of Innovation (GTI), detailing its principles and implications, particularly in the context of electric car development. It analyzes the historical, current, and prospective advancements in electric cars, drawing examples from the Toyota corporation, and highlights how the GTI principles can be applied to foster innovation, predict future trends, and achieve competitive advantages. The report underscores the importance of strategic innovation and efficient product development, emphasizing the need for businesses to adapt and evolve to meet market demands and customer expectations. The report also discusses the strengths of the GTI, including cost reduction, risk mitigation, and the ability to analyze and solve system-related problems. The report concludes by underscoring the importance of innovation in strategic management.

MANAGING
INNOVATION

Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
PART 1.......................................................................................................................................1
PART 2.......................................................................................................................................4
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Innovation refers to the improvements and developments in a product which can be used
by the consumers for making their life comfortable and easy. Another definition is that, it is the
process of creating values for changing the composition of various variables of a system.
Innovation starts with a unique idea which further converted into the product. The innovation is
the basic requirement for any firm in order to achieve growth and sustainability in the
marketplace. Innovation plays a very crucial role in the development of the organisations and
their products. It is helpful for introducing a improved or new product to the market and to the
customers for making their life easy. Businesses which are using innovation for their product
development tends to have high growth and employs more people to their firm. It allows the
organisations to grab more customers and to increase their market share in the industry. Business
with innovative products grows faster then the other business who are using innovative products
very less. This report will discuss the innovation and its General Theory of Innovation along with
the application of using the theory for the past, present and future developments of electric cars.
MAIN BODY
PART 1
The General Theory of Innovation is taken in this report for analysing the historic and
future development of Electric cars in the auto-mobile market which has been introduced by the
Toyota corporation. The General Theory of Innovation was given by Greg Yezersky. This theory
was created for understanding the various causes of success and e work aimed at creating a
theory concerned with understanding the causes related to the end of man made systems and the
emergence of the machines. This theory was improved by Dr. Noel Leon Rovira in 2005. This
theory was based on several principles which will be discussed further. First principle is that all
the artificial systems such as goods, services needs to evolve with time regardless of their
complex structure and nature (Azis and Osada, 2013). Second principle states that the process of
improvement always has a logical and systematic way regardless of its identified irregularity.
Third principle states that the variation in the logical improvements will create problems for
future innovations. Fourth principle states that by following the logical way of evolution process,
Successful innovations can be developed upon the demand of market and customers. Fifth
principle states that the described logical way is helpful for solving the problems effectively and
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efficiently along with the accurate prediction of the changes in future time. Sixth principle states
that innovation is reducing the costs and risks of the organisations for improving the performance
and results. Last principle states that the every theory can be learned and taught to individuals for
creating the on demand innovative products.
All these principles of General Theory of Innovation are extensively used for creating
new and innovative business products which were tested to determine the needs and demand of
the product. These principles has proved their effectiveness without any issues and doubts.
Various companies and organisations are benefited from this theory and are successfully
providing their innovative products all over the world. General Theory of Innovation is the one
and only theory for predicting the broad range of applications. This theory concluded that the
systems does not evolve randomly and the cycle of evolution is regulated by the natural laws
which does not depend upon the will and desires of humans.
There are various implications of GTI which can arise during the innovation process.
First implication is that the nature of the challenges faced in the product development varies with
the path provided by the Natural laws of evolution. By determining the nature of problem,
products can be improved with efficiency and also the solution can be provided based on the
behaviour and cause of the problems (Biemans, 2018). Second implication is that the nature of
success is determined by following the laws properly. The laws of evolution needs to be
followed properly for succeeding in the market. The organisations follow these laws intuitively
but not in a systematic manner so, it leads to mixed results. GTI articulated the different
evolutionary laws and proposed a set of tools and methods for working with efficiency and
effectively within the limits of the laws. Third implication is capability for forecasting the future
of evolution.
This theory is important for any organisation to introduce their new and innovative
product to the market by understanding the laws of evolution and the historical analysis of
evolutionary process. The principles of this theory can be used for development of innovative
products which can improve the growth and profits of the organisation. These innovative
development and improvements are needed by any organisation to gain an upper competitive
edge and to provide the customers with efficient products for the betterment of the society. This
theory will help the organisations and innovators to deliver efficient and effective products to the
market.
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This theory was developed by the Greg Yezersky for the purpose of introducing
innovative products so that the challenges and problems of the people can be eliminated in the
future (Brunswicker and Vanhaverbeke, 2015). This theory is successful in serving its purpose as
this theory is used by the various organisations and innovators for delivering the promised goods
and services to their end users. The main aim behind the development of this theory is to
understand the various laws of evolution which can effect the products and services in meeting
the expected outcomes. This theory works on 7 principles which should be followed properly for
attaining the expected results for which the product has been developed.
The strengths of this theory are that firms can charge good prices on the successfully
developed products before the competitors introduce their own products to the market. Through
this theory, firms can develop their own innovative products which is good for reputation of the
firm. When companies can place their products first in the market, people tend to purchase them
easily which will increase the revenue of the firms (Tajeddini and Trueman, 2012). By this
theory, analysis and solutions of systems-related problems can be provided for the further
development of the products. It is also helpful for doing the complex projects while facing the
problem of system. All the necessary tools, methods and principles which are used for providing
the analysis and solution of problems are effective and also helpful for achieving the
organisational goals. It is also helpful for forecasting the precise future of evolution process by
combining the knowledge of system and evolutionary laws. Existence of various natural Laws of
the cycle of evolution enables the formation of objective criteria which is used for evaluating the
efficiency of proposed innovations. This theory states the compliance of system with the
evolutionary laws which comprise of the foundation for evaluating the innovation. This theory
also states that the innovation in strategic management is most essential than the innovation in
other area of business process like product and process innovation. The on-demand beginning of
these innovations is the centre of this theory which includes the analysis of systems while
focusing on the strategy and products offered by the organisation in the market.
Concept and Product Development is the first step required for developing an effective
innovative product in the market (Dawson and Andriopoulos, 2014). A concept must be
developed and implemented for effective and efficient product. Proper analysis must be done for
the implemented concept for determining the effectiveness in meeting the needs and demands of
the customers in the market. This phase also includes the utilisation of technology and the
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resources for developing the effective product. This concept can also be termed as blueprint for
carrying out the various process and activities by the management to execute the different
operations of the product development. The concept must be made in such as way so that the
products can stand in the market with their own features otherwise it can lead to downfall of
product in the market (Dodgson, 2018). There are different elements which must be taken care of
before creating a successful plan for product or service. By a effective concept, the product can
be helpful for the company to get a competitive edge in the market and improve their market
share.
PART 2
Past, present and future of electric cars: Innovators continuously tries to explore new
areas for developing a new and innovative product which is never done by any firm or company
till now and not in upcoming future. This is a notable visual aspect in which they tries to develop
new types of auto-mobiles which can be handled with efficiency and ease. The companies are
introducing electric cars in the auto mobile sector based on the first principle of General Theory
which is products must be evolved with time to increase their functionality and features. This
electric car is introduced for reducing the oil costs and consumption of natural resources. People
had noticed from last several decades that cars needs fuel which is extracted from the natural
resources (Freeman, 2013). These natural resources are depleting very rapidly and there is a need
for introducing new and efficient fuel which can be used in the cars and automobiles. So, People
comes with an innovative idea of introducing electric cars to the market. From these cars, fuel
which is extracted from natural resources can be saved and instead electricity will be used in the
place of fuel which is economically cheap and also natural friendly. This idea was developed
keeping in mind the first principle of GTI.
People used the horses in historic times for travelling. The horses are animals so they
needs rider and also the primary needs of survival. So innovators in late 18th century developed
the idea of cars. The old cars are fuel consuming and also the features in these cars are not very
good. They consume excessive fuel and hence needs to be improved so that the natural resources
can be preserved for the future generations. In the initial days when the cars were introduced to
the consumers, these doesn't have any features such as automatic gear, windscreen, high speed
which were developed with the time and requirements of the consumers (Frow and et. al., 2015).
Slowly, automatic gears, wind shields, alloy wheels and compact engines came into existence
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and provided a smooth experience to the consumers. The needs for more improvements arises
which leads to innovative changes in the cars. These cars in their initial days were expensive and
also consumes more fuel which forced the innovators to build a new and improved version of the
cars which will consume less fuel and also are comfortable to travel. Such cars developed with
time and further the need for saving the natural resources will arise. Then the concept of electric
cars came into existence based on the second principle which states that the process of
improvement always has a logical and systematic way regardless of its identified irregularity. So
the companies started to think logically for saving these natural resources for the upcoming
generations. The electric cars was introduced in 1912 by Charles Kettering. He introduced the
electric starter engine which sealed the fate of electric vehicles (Isaksen and Akkermans, 2011).
For the upcoming 5o years, no new innovations were made for the electric cars. By the 1960's,
the air pollution started to rise which lead to the making upgrades in the electric cars. By 1970,
The fuel crises started to rise which also results in taking interest in the new innovation for the
up-gradation of the cars. By the end of 20th century, various companies started their R&D
activities for building and improving the electric cars for the feasibility and features which are
required by the customers for making their travel comfortable and affordable.
Companies such as Tesla, Toyota started their own production plant for effectively
developing the electric cars in order to improve their fuel efficiency, costs and to sustain the
natural resources. The modern cars comes with unfavourable gas emission, no power
regeneration, noise and air pollution etc. which consumes the power even if the vehicle is
standing still and also generates more amount of heat. So, the requirement of electric vehicles is
more in 21st century due to rapidly extraction of natural resources for converting them into fuel.
On the other hand, electric cars comes with zero emission, power Regeneration, low noise
pollution and instant start and direct drive (Jones, 2013). These features are developed based on
the fourth principle of GTI and attracts more customers due to their features, reliability and low
use of sustainable resources.
The electric cars are now developed on the basis of fifth principle of GTI which states
that the evolutionary logic is helpful for solving the problems effectively and efficiently and also
predict the accurate changes in future. In this modern world, the electric cars are developed
keeping in mind of the needs and requirements of people. These cars are reliable and easy to use
as well as also consumes electricity which is cheaper than the fuel. Through these cars, the
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problem of excessive extraction of natural resources can be reduced and the produced cars can be
effective and efficient for use by the consumers. The modern cars comes with features such as
multimedia system, automated air bags and gear system, sunroof etc. which attract more
customers towards the products (Landsperger and Spieth, 2011). These cars are manufactured so
that the demand of fuel efficient products can be met and also to ensure that affordable cars can
be provided to the customers. However, in electric cars the speed is not much due to the engine
types and motor used. The electric cars used DC motors in initial period which can leads to
excessive heat and also leads to self destruction. So, AC motors are used in present time due to
limitations of DC motors and advantages of AC motors. These cars have potential to grow due to
various environment, economic and technological factors.
The future scope of electric cars is very broad due to their important features. People are
moving their mindsets towards the electric cars as they are environment friendly and also
economically affordable. These cars are helpful for reducing the pollution and protection of
sustainable resources. The future cars will be build based on the last principle of GTI which is
that innovation can be taught or learned according to the demand. Popularity of electric vehicles
is growing rapidly in the world as they are clean and efficient. For example: Tesla is a company
who produces electric cars only and also they are providing charging points instead of petrol
pumps to the customers so that the consumers can reach their destination without worrying about
the issue of charging (Pynnönen, Hallikas and Ritala, 2012). Companies are thinking to provide
features such as GPS navigation, auto driver, and sensor start to the future electric cars so that
the problems in handling the cars can be reduced and even also to provides the fuel efficiency for
travelling to much distant locations after charging the car for some time. Through these features,
the future of electric cars is very bright in the market and they can perform better in the
upcoming time.
With the help of General theory of Innovation, new upgrades in the electric cars can be
made using the above discussed principles. These principles must be followed wisely and
properly for obtaining the sustainability in the market of electric cars (Lundstedt and Colglazier,
2013). By following these principles, compact and flexible cars can be made which can handle
themselves in case of an accident or problems. These cars are now coming with features such as
self diagnose through which they can detect their problems and issues and then convey these to
the repairing centre. Through this, the repair timing can be reduced. These cars are upgraded in
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such a way with which they can control their steering wheel based on the sensor movements and
infrared rays through which the driver can loose the steering in case of some urgent work. The
auto pilot is a major feature in these cars which attracts the customers easily.
The concept of electric car is very innovative as the requirement for electric cars is very
high due to the excessive use and extraction of natural resources for converting them into fuel.
The GTI will help the innovators and companies to develop a unique and innovative product
which can serve the customers efficiently and effectively. With the use of various principle of
GTI, the continuous evolution process for developing the products can be understandable.
Through these principle, firms and innovators can bring the required efficiency in the products
(Owen, Bessant and Heintz, 2013). In order to bring energy efficient electric cars to the market,
this theory is of much importance for the organisations. With the help of this theory, efficient
cars can be developed for the consumers which will provide them a smooth experience and also
to protect the environment and natural resources. Many features and improvements are still
needed in the electric cars so that the people can buy them without any hesitation. These
improvements can be implemented and developed with the proper use of General Theory of
Innovation and its principles. Also, with the proper understanding of laws of evolution and
evolutionary process, the improvements can be made possible.
CONCLUSION
It has been concluded that the innovation is very crucial for any organisation. With
innovative products, a firm can achieve their desired goals easily and in a effective manner.
Innovative products are also helpful for getting an upper edge over other competitors of the firm.
The general theory of innovation is very helpful for organisations to introduce their products in
the market by analysing the evolutionary process and to understand the various laws of
evolution. The principles of GTI has been discussed with the future and historic developments of
electric cars along with the strengths, importance and implications of the General Theory of
Innovation.
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REFERENCES
Books and Journals
Azis, Y. and Osada, H., 2013. Managing innovation using design for six sigma (DFSS) approach
in healthcare service organizations. International Journal of Innovation and
Technology Management. 10(03). p.1340010.
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.
Dawson, P. and Andriopoulos, C., 2014. Managing change, creativity and innovation. Sage.
Dodgson, M., 2018. Technological collaboration in industry: strategy, policy and
internationalization in innovation. Routledge.
Freeman, C., 2013. Economics of industrial innovation. Routledge.
Frow, P., and et. al., 2015. Managing co‐creation design: A strategic approach to innovation.
British Journal of Management. 26(3). pp.463-483.
Isaksen, S.G. and Akkermans, H.J., 2011. Creative climate: A leadership lever for innovation.
The Journal of Creative Behavior. 45(3). pp.161-187.
Jones, G.R., 2013. Organizational theory, design, and change. Upper Saddle River,
Landsperger, J. and Spieth, P., 2011. Managing innovation networks in the industrial goods
sector. International Journal of Innovation Management. 15(06). pp.1209-1241.
Lundstedt, S.B. and Colglazier, E.W. Eds., 2013. Managing Innovation: the social dimensions of
creativity, invention and technology. Elsevier.
Owen, R., Bessant, J. and Heintz, M. eds., 2013. Responsible innovation: Managing the
responsible emergence of science and innovation in society. John Wiley & Sons.
Pynnönen, M., Hallikas, J. and Ritala, P., 2012. Managing customer-driven business model
innovation. International Journal of Innovation Management. 16(04). p.1250022.
Tajeddini, K. and Trueman, M., 2012. Managing Swiss Hospitality: How cultural antecedents of
innovation and customer-oriented value systems can influence performance in the
hotel industry. International Journal of Hospitality Management. 31(4). pp.1119-
1129.
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