A Comprehensive Report: Innovation and Change at Jaguar Land Rover

This report provides a comprehensive analysis of innovation and change management at Jaguar Land Rover. It begins with an introduction to change management and innovation, followed by a background on Jaguar Land Rover Ltd. The report then delves into the challenges and opportunities the company faces in the automotive industry, emphasizing the importance of effective innovation management. It examines organizational cultural barriers and enablers, highlighting how culture impacts innovation. The report also evaluates the strengths and weaknesses of Jaguar Land Rover's innovation management structure, identifies current sources of ideas and technologies, and provides a critical evaluation of the company's current approach to innovation. It addresses innovation problems and suggests feasible solutions, outlines a proposed innovation strategy, and concludes with a summary of key findings and recommendations, supported by references.

Innovation and Change
Management
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TABLE OF CONTENTS
INTRODUCTION................................................................................................................................3
BACKGROUND..................................................................................................................................3
CHALLENGES AND OPPORTUNITIES...........................................................................................3
ORGANIZATIONAL CULTURAL BARRIERS AND ENABLERS.................................................4
STRENGTHS AND WEAKNESSES of innovation management structure.......................................5
CURRENT SOURCE OF IDEAS AND TECHNOLOGIES...............................................................6
CRITICAL EVALUATION OF THE CURRENT APPROACH.........................................................6
INNOVATION PROBLEM AND THEIR FEASIBLE ADDRESSAL................................................7
INNOVATION STRATEGY................................................................................................................8
CONCLUSION....................................................................................................................................9
REFERENCES...................................................................................................................................10
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INTRODUCTION
Change management is considered as a managerial activity that is performed by organization to
manage modifications and development conditions in appropriate manner. In other aspect, it can be
referred as controlled identification and implementation of required changes within organization work
style. On the other side, innovation is process of developing new ways and methods that can be used to
manage change in significant manner (Euchner, 2013). Innovation is also considered as procedure of
translating an idea in service that provides better value to the customers as well as organization.
Current study will focus on work culture of Jaguar in order to understand the conceptualization
of change management and innovation. It will focus on various challenges and opportunities that
company can have during the innovation. It will also provide information regarding organizational
cultural barriers and enablers to innovation. Furthermore, it will also focus on various innovative
approaches that can be used by management to develop work effectiveness.
BACKGROUND
Jaguar Land Rover Ltd. is British multinational auto-mobile manufacturing firm that operates
its business from Whitley Coventry, UK. Company is subsidiary firm of Indian auto-mobile which is
named as Tata Motors. Company is refereed as key participator in UK auto-mobile sector and focuses
on effective design of its products. In the support of this, it can be said that the organization
manufacture and sale vehicles under name of Jaguar, Range Rover and Land Rover. Moreover,
business firm was founded in year 2002 (Jaguar Land Rover, 2016). Jaguar Land Rover Ltd. is also
contributing in a great context by introducing a wide range of innovative and well designed cars in the
market. Organization always looks forward to bring number of innovation and uniqueness in its
products and services. The key auto-mobile products that company provides in the market are
classified as Jaguar XE, XF, XJ, F-type and F-pace.
Organization working is totally controlled by its parent company in order to maintain the
quality of products and services. Company is expanding its business in China, North America and
Europe so that its market share can be improved in international market. Jaguar Land Rover Ltd. is also
looking forward to improve its product line by introducing various luxury vehicles. Due to unique
features, design and enhanced comfort level in the product the company is targeting its customers in
easy manner (Chiaroni, 2011).
CHALLENGES AND OPPORTUNITIES
As per the current market scenario the auto-mobile sector is fast moving industry that is having
number of changes in its operational activities. It means in order to have better application of change
and attain sustainability it is necessary for management of Jaguar Land Rover Ltd. to focus on effective
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innovative management practice. It has been identified that any significant transformation within
organization may create number of issues (Rohleder, 2013). This clearly indicates that the management
of Jaguar Land Rover Ltd. must have improved level of information regarding employee’s needs
because it helps in design of strategies and change management activities implementation. In respect to
this, it can be said that during the innovation employee’s needs and customer’s expectations
identification is one of critical issue. If business firm is not having changes and innovation according to
employees needs and customers expectations then management may face some failure issues (Garud,
2011). Another key issue can be regarding identification of environmental and market conditions
because avoidance of these factors can also influence change management process.
For example, Jaguar Land Rover Ltd is looking forward to bring new car in the market but they
have not identified customer's needs in appropriate manner. It may create gap between product features
and customer’s expectations then it will influence business in negative manner. Moreover, with an
assistance of innovative change in the work culture and product the business can also attain various
benefits. It allows management to improve employee’s capabilities in an appropriate manner (Bahemia,
2014). Employee’s morale can also be improved by allowing them to share innovative ideas about
product and services. Innovation brings uniqueness in the product and its features. It means Jaguar
Land Rover Ltd can have better market share by attracting more and more customers through
uniqueness in the product and its features. In order to provide better support to uniqueness the number
of technological innovation can also be taken into account which also impacts the overall performance
in positive manner (Mithas and Arora, 2015).
ORGANIZATIONAL CULTURAL BARRIERS AND ENABLERS
Innovation is a key to success for Jaguar Land Rover but there are many constraints such as
organizational culture and enablers which create a barrier in a way to success. Organizational culture
basically defined as the shared assumptions, values and beliefs which are considered to be the accurate
way acting on the problems and opportunities faced by the company. In other words, it is a philosophy
which guides an organizations policy towards employees & customers. Thus, Jaguar has the
organizational culture which is not good (Hayes, 2014). As there are employees belonging from diverse
culture thus, there is less consensus of every employee. In this way, organizational culture has created
barriers along the way to bring innovation by the company. Therefore, firm has to face the failure in the
market because of the internal conflict due to the cultural differences. This basically brings innovation
in its products. Further, the enabler refers to as the people or some employees of an organization who
encourages negative behaviour in other employees. These kinds of people are present at all levels of
hierarchy and they stop the positive people to bring into new ideas in the organization. Further, they
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criticize for every idea and discourage others to introduce and implement the innovations (Chiaroni,
Chiesa and Frattini, 2011). This creates hurdles in bringing up the innovation by the firm, Jaguar.
STRENGTHS AND WEAKNESSES OF INNOVATION MANAGEMENT
STRUCTURE
The innovative management structure of Jaguar land Rover is a Multi-divisional Structure
which has president, CEO and divisional heads, that is, three levels management (Brown and Osborne,
2012). This structure has several strengths and weaknesses which are described below:
Strengths
 The innovation management structure is comprised of all the skilled employees who have
experience of diverse field.
 This multidisciplinary team generates the innovative ideas through brainstorming as free
culture has been provided to them by the organization (Langley and et.al, 2013). Thus, it helps
in generating most creative ideas which helps in bringing utmost innovation in the market.
 All the members of this team have a close connection which assists in identifying the
responsibilities by each of them. This kind of structure has helped the Jaguar to compete at a global level as all the divisional
head are a part of this management structure. Therefore, environment can be assessed by them
by taking report from each of the members and accordingly innovation is brought into the
market (Jones, 2010).
Weaknesses
 There are many enablers in the team which discourages and criticizes the creative ideas of
others and also they stop others from presenting the ideas which lead to the innovation.
 The multidisciplinary team is comprised of people who belong from diverse culture. Thus, this
is a biggest weakness in the innovation management structure. It is because, the cultural
differences is high and this way people resist to work together as they does not get understand
the values, norms and other cultural aspect of each other (Naranjo-Valencia, Jiménez-Jiménez
and Sanz-Valle, 2011).
 Further, another constraint is the lack of financial resources as company has spent huge amount
in bringing the latest innovation. Thus, the funding of the team does not happen which leads to
the resistance by the team to devote time for ideas without the resources.
 Lastly, the ego is also one of the weakness which leads to the failure of the management
structure. The president of the company does not feel comfortable to work with the lower level
management which leads to the conflict among the team (Gambardella and McGahan, 2010).
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CURRENT SOURCE OF IDEAS AND TECHNOLOGIES
In order to bring innovation, company needs to source large pool of ideas and also the
technologies so that new innovation can be brought in the market. Presently, company recruit the new
ideas by conducting brainstorming session where multidisciplinary teams are allowed to discuss the
creative ideas. This way company generate new ideas. Further, company also hire experts by
consulting several other innovation companies (Walker, Damanpour and Devece, 2011). The expert
provides various ideas and those ideas are evaluated by the innovation management structure and the
best suitable idea gets selected and is implemented. This helps in bringing innovative product in the
market. However, to produce such innovative product, high-end technologies are required which are
sourced from the biggest companies who produce such technologies. Thus, Jaguar sources such
technology from Germany so that best cars could be launched in the market. Along with that, company
also recruit some other technologies from USA as they provide quality products. Beside these
requirement, firm also requires skilled and capabler human resources in order to make the innovate
product and can market them in a most innovative manner (Menguc and Auh, 2010). For this aspect,
company recruit such resource from biggest car companies so that they have the best experience in this
field. Furthermore, company provides attractive packages to them so that they get attracted towards
this organization and remains motivated. Furthermore, company also recruits fresh talent from the top
engineering colleges so that latest ideas can be generated by them. This is how Jaguar source ideas,
technology and human resource for the purpose of innovation activities.
CRITICAL EVALUATION OF THE CURRENT APPROACH
As per the viewpoint of Mithas and Arora (2015) it has been assessed that jaguar Land Rover is
following the classical approach of innovation and change management. Thus, company requires
adopting the modern approach so that it can get immense success in the market. Further, the firm must
include more skilled employees in the organization so that more creative ideas can be generated.
Moreover, it has been criticized by the Rohleder (2013) that company has to focus more upon this
activity so that this is a key to success. For this aspect, company requires to bring bets innovation in the
market. Further, company can take backward integration and can produce some of the technologies in
the same organization so that they can bring innovation as per their own method. This will be
completely unique. Furthermore, Jaguar must train the employees internally so that enablers can be
removed accordingly. This will help in removing the barriers of the innovation. Along with that,
company should also train the employees and remove the cultural differences.
However, Menguc and Auh (2010) argued that, current approach followed by the company is
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effective because it helps in saving the time and this way more products can be launched. This will
further help in earning maximum revenue and ultimately profitability can be increased. Along with
that, backward integration may lead to heavy cost which may lead to losses for company.
INNOVATION PROBLEM AND THEIR FEASIBLE ADDRESSAL
Jaguar Land Rover Ltd caters to escalate its customer base by launching new car in the market
with the latest technology and innovative designs. With any innovation brought by any company in the
market there are some problems associated. With the effective addressal of challenges, it can be
managed effectively.
1. Lucrative Idea: In order to bring sustained innovation, it is imperative for Jaguar Rover Land
Ltd to come up with a lucrative idea with complete analysis of all the factors influencing the
sale or product. In the auto-mobile industry, with every new product customer seeks originality
in design and technology (Euchner, 2013). Hence, if launching is done with intimate research
and demand, it will accrue benefit in the form of increased sales and profit.
2. Competency with the available resources: Every innovation requires large investments,
targeted markets and production essentials. Hence, in order to proceed success of the product,
Jaguar Rover Land Ltd is required to scrutinize the finances available, production requirements,
procurement and supply. Innovation supplemented with these factors leads to success of idea in
the desired manner.
3. Leveraging customer base: Established businesses like Jaguar rover land Ltd leverage their
existing customer base to earn profitability and sales maximization. New design in auto-mobile
industry brings considerable amount of risk with the possibility of folding on either side that is
escalating customer count or switching of existing to the other brand (Hayes, 2014). It can be
feasible handled by introducing the product by seeking customer's opinions and views through
different platforms such as utilizing virtual environment.
4. Precise predictability: Innovation brought by any organization is subject to risk for the
organization due to heavy capital requirements and development times. It can be dealt by
creating precise predictive insights and close assessment of responsiveness from the customers.
This ensures the low degree of failure.
In order to assess the problems in context of innovation, concept of 6 thinking hats has been
applied. These are discussed underneath:
1. White hat: This signifies neutrality. Main context of Jaguar rover land Ltd. is to offer creative
and advanced product so that ultimate needs of customers can be met. For this, company
emphasizes over lucrative idea from varied individuals.
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2. Red Hat: This hat signifies emotions. In context of Jaguar rover land Ltd, emotion aspect is
fulfilled by leveraging customer base. Further, company offers tailored interior of car as well
that makes a significant impact on the emotions of customers.
3. Black Hat: It refers to caution and danger that needs to be focused while addressing the needs
of customers. In this regard, firm emphasizes on health and safety of customers and for the
same, varied equipment and driving tests are done.
4. Yellow Hat: This reflects innovation and creativity in order to boost the chance of sustainability.
Jaguar develops highly advanced and lucrative cars that cater the attention of different
customers. This helps company in meeting varied needs of customers.
5. Green Hat: In this aspect, exploration of new areas is done with a motive to sustain in the
market. Hybrid cars by Jaguar rover land Ltd helps in developing new revenue stream.
6. Blue Hat: Here, process control is focused so that each activity can be completed as per the
requirement.
INNOVATION STRATEGY
Innovation in the systematic and planned way leads to the success of the thought and idea
generated by the businesses (Goetsch and Davis, 2014). It is processed by with effectual interplay of
external growth possibilities with the existing capabilities of the organization. Jaguar with the
established team of designers and engineers are capable to introduce new car in the market. Adopting
insightful and resourceful framework will benefit the Jaguar Roven Land Ltd. With certain set of
activities it can be processed in the following manner (Chiaroni, Chiesa and Frattini, 2011).
Creating foundation: Fundamentally, it is imperative to create the framework with the
combination of conventional assets and modern approaches to procure desired results.
Precise Foresight: By analysing the trends on the quantitative and qualitative grounds will
benefit the launching of new car. It refers to the articulation of economic scenario, present condition of
auto-mobile industry and projected results and inculcating them in the plan.
Customer Insight: It is essential to understand the customer's needs and preferences before
launching the innovation (Hotho and Champion, 2011). Seeking customer belonging different
demographic groups will help in making effectual decisions.
Assets and technologies: By leveraging the available resources by the company and its
established position in the market, company can make the innovation beneficial. It refers to the
arrangements of capital and other manufacturing equipments along with other essentials.
Organizational readiness: On the grounds of organization, it is imperative to keep it proactive
for all the possibilities (Brown and Osborne, 2012). That is innovation is required to be complemented
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with the contingency plan which means in the case failure of one idea, another idea is available to
compensate it.
Effective implementation: After the strategic formulation and creation of framework wit
respect to the launch of new car with the latest technology and design, effective implementation is the
crucial part. It refers to the transformation of idea into action going through the systematic path.
CONCLUSION
As per the study conducted on innovation and change management, it has been concluded that
it is highly require by the company to ring innovation as this is the key to get success and development
in the marketplace. Furthermore, Jaguar Land Rover introduces many changes and innovation in the
car manufacturing industry which helps in creating more demand for the cars. Moreover, there are
many challenges and opportunities faced by the company while bringing innovation. Among them
organizational culture and enablers are the biggest barrier. Further, the innovation management
structure is quite good but there are internal conflict get arises within the team. In addition to this, it
has been argued by the authors about the effectiveness of the current approach of the company.
Furthermore, by using creative thinking key innovation problems have been addressed and new
strategy have been developed and implemented thereon.
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REFERENCES
Books and Journals
Bahemia, H., 2014. January. Implementation of an open innovation strategy for a radical innovation
project at Jaguar. Academy of Management. 20(1). pp. 13-67.
Brown, K. and Osborne, S. P., 2012. Managing change and innovation in public service organizations.
Routledge.
Chiaroni, D., 2011. The Open Innovation Journey: How firms dynamically implement the emerging
innovation management paradigm. Technovation. 31(1). pp.34-43.
Chiaroni, D., Chiesa, V. and Frattini, F., 2011. The Open Innovation Journey: How firms dynamically
implement the emerging innovation management paradigm. Technovation. 31(1). pp.34-43.
Euchner, J., 2013. Innovation is change management. Research Technology Management. 56(4). pp.10-
30.
Gambardella, A. and McGahan, A. M., 2010. Business-model innovation: General purpose
technologies and their implications for industry structure. Long range planning. 43(2). pp.262-
271.
Garud, R., 2011. Complexity arrangements for sustained innovation: Lessons from 3M Corporation.
Organization Studies. 32(6). pp.737-767.
Goetsch, D.L. and Davis, S.B., 2014. Quality management for organizational excellence. Pearson.
Hayes, J., 2014. The theory and practice of change management. Palgrave Macmillan.
Hotho, S. and Champion, K., 2011. Small businesses in the new creative industries: innovation as a
people management challenge. Management Decision. 49(1). pp.29-54.
Jones, G.R., 2010. Organizational theory, design, and change. Upper Saddle River: Pearson.
Langley, A. N. N., Smallman, C., Tsoukas, H. and Van de Ven, A. H., 2013. Process studies of change
in organization and management: unveiling temporality, activity, and flow. Academy of
Management Journal. 56(1). pp.1-13.
Menguc, B. and Auh, S., 2010. Development and return on execution of product innovation
capabilities: The role of organizational structure. Industrial marketing management. 39(5).
pp.820-831.
Mithas, S. and Arora, R., 2015. Lessons from Tata's Corporate Innovation Strategy. IT Professional.
17(2). pp.2-6.
Naranjo-Valencia, J. C., Jiménez-Jiménez, D. and Sanz-Valle, R., 2011. Innovation or imitation? The
role of organizational culture. Management Decision. 49(1). pp.55-72.
Rohleder, C., 2013. Requirements engineering in business analytics for innovation and product
lifecycle management. Springer International Publishing. pp.51-58.
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Walker, R.M., Damanpour, F. and Devece, C.A., 2011. Management innovation and organizational
performance: The mediating effect of performance management. Journal of Public
Administration Research and Theory. 21(2). pp.367-386.
Online
Jaguar Land Rover. 2016. [Online]. <Available Through: http://www.jaguarlandrover.com/gl/en/>.
[Accessed on: 26 February, 2016].
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