Business Innovation and Future Trends for TESLA Company

This report provides a detailed analysis of innovation management within TESLA, an electric vehicle and clean energy company. It begins with an introduction to innovation and its management, followed by an examination of the future of the auto-mobile industry beyond 2020, focusing on trends like connectivity, autonomous driving, shared mobility, and electric vehicles. The report then evaluates the innovation requirements within TESLA, utilizing the 7S framework to assess strategy, structure, systems, staff, style, skills, and shared values. Finally, it explores the future innovation capabilities of the organization, including the development of an innovation roadmap, and provides insights into how TESLA can maintain its competitive edge through continuous innovation. The report highlights the importance of online sales channels, supply chain resilience, and aligning organizational principles with innovation efforts to foster a dynamic and customer-centric approach.

Managing innovation in
business
Table of Contents
INTRODUCTION...........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 1.......................................................................................................................................1
The future of an industry beyond 20202.....................................................................................1
TASK 2............................................................................................................................................3

Requirements of innovation within the organisation..................................................................3
TASK 3 ...........................................................................................................................................5
Future innovation capabilities of an organisation.......................................................................5
CONCLUSION ...............................................................................................................................9
REFERENCES..............................................................................................................................10

Executive summary: Below report is based on the TESLA that is an auto-mobile
company and deals in the electric car and clean energy. This analyse provides the
outcome about the background and the future of auto-mobile industry beyond the 2020
this will summarize the innovation in both products as well as organisations.
Furthermore, it evaluates the requirements of the innovation in this company TESLA has
has been explained with the help of 7S framework of innovation. And provides the
outcomes about the future innovation capability of the organisation and innovation
roadmap for the company.
INTRODUCTION
Innovation is referring to the process of application of new idea that is perceived by an
individual or a group of individuals in order to implement the changes in the existing products
and services. That provides the better quality and experience to the customers to make the
outcome productive and profitable (Biemans, 2018). With the introduction of innovation,
managing it is also an essential aspect to implement that effectively within the organisation.
Innovation management is described as the handling all the activities that is related to the
introduction of something new. There are several varieties of different kinds of innovation that
managers plan to execute in the organisation that provide support in to making profitability,
productivity and brand image of a company. For the this factors there many aspects that has be in
view before developing or implementing the innovation ideas and this includes capabilities,
organisational structure, organisation culture and the existing strategies that influence the
decision making that is related to the introduction of something new. It can be in the product or
services, production process or in a supply or marketing chain.
This report is based on the TESLA which is an American based auto mobile company
and deals in an electrical vehicle and clean energy this is founded in July 2003 by engineer’s
martin Eberhard and marc trepanning as TESLA motors. With that this study includes the future
of an industry beyond the 2020, innovation requirements in the organisation. Furthermore it also
includes the capabilities of the organisation to build the innovation within the organisation
(Ratten and Usmanij, 2020).
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MAIN BODY
TASK 1
The future of an industry beyond 2020
Auto-mobile industry is full of the advance technology and machinery, where the future
of the industry is also related with the advance technology such as artificial intelligence, robotics
and internet of things (IOT). The auto-mobile industry has already made the certain steps
towards the growth and development. But as the environment is dynamic so there always a need
arises for the changes and innovation in the products or can be in the ways of working to
generate the best and effective outcomes. There are some innovations and trends that can change
the future of the auto-mobile industry (Van Lancker, Wauters and Van Huylenbroeck, 2016).
Innovation in the products Connectivity: Future is consisting of many opportunities, changes and innovation that can
be taken into the consideration in the business to enhance the performance. One of major
trend that can reshape the future of auto-mobile sector is the internet connectivity in the
cars which becomes the essential aspect in today's life. By this car can communicate with
other devices. This can be the biggest innovation in the cars that can be implemented. Autonomous: As it has been believing that human beings are prone to make mistakes and
this is for lot of research and development is focused and dedicated towards the
manufacturing of autonomous car. With the fast enhancement in the technology,
autonomous cars will be seen soon on the streets (Archibald, and Archibald, 2016). Shared: As per the survey conducted by the Assurant, in which 66% of respondents said
that best thing that can come is autonomous vehicles. That will provide the service on
demand whenever needed by the customers. This provides an advantage of saving as in
the future people as people would not have to invest the money into owning a car. Electric: Now cars are running with petrol and diesel and it is the fact that fossil fuels are
not good for the environment as well as for the living beings. Along with these rising
prices of fuels put a lot of pressure on the customers pockets. To solve this problem auto-
mobile companies has come up with the idea of e-vehicles. This has been already
developed but still there some issues such as running out of battery. That will be solved
soon and will going introduced these cars in the market.
Innovation in the organisation
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 radically focus online: According to the today's scenario customers are more focused
and engage with the business in every industry using online sales channels. As per these
changes now auto mobile industry will also going to adopt the online sales channels for
the promotion and selling and for many other operations.
 Build resilience into the supply chain: The COVID-19 pandemic outbreak revealed that
complexity into the global supply chain. Source of supply chain of automobile is
interdependent on the countries. And global lock-down breaks the link between the
countries and disruption has been increased (Kerzner, 2019). Because of this now leaders
have enhance their skills of sense of urgency over a supply chain resilience, several
manufactures are now focusing on to maintaining suitable backups as like local sourcing
and in-sourcing. Along with this now in future for making the supply chain resilient after
pandemic for this companies are focusing on to the specific areas.
TASK 2
Requirements of innovation within the organisation
Innovation maintain the relevance of an organisation. As world and its environment is dynamic a
complex which changing constantly. And in order to keep the business relevant and profitable it
is necessary to execute the innovations with the regular period of time. This factor is need to
adopt in the operations that support in to meet the new realities of the environment in which a
business operates its activities with the aim of gaining profit. In context to TESLA, which is an
auto-mobile industry that is stable in the market only because of the innovation and technologies
in their products. There are various aspects and factors which can be taken in the consideration
while introducing the idea of doing something new (Alexander, and Joe, eds., 2019). creative development: Innovation provides the development into the operations of the
business as well to the organisation as whole. With this TESLA can achieve the growth at
a marketplace by knowing how to be creative. This provides the learning of business
skills that helps to make the things better through creativeness. Managers and leaders of
TESLA is consist of this skills that help in find out the new ways and opportunities and
gives the potential for the new market along with this also keep up with the current trends
(Lundberg, and. et. al. 2017).
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 Reinforce the brand: Developing branding is the most popular aspect in the
organisational leadership. The process of information reveals the information that helps
the leader to learn the more ways to be more effective and creative. That enhance the
performance, profitability and along with this it reinforces the brand at a marketplace.
There are various frameworks that is used to make the internal capability effective of an
organisation. For this 7S framework has been developed that is used in the organisation to meet
its objectives. And its identifying which factor needs to be balanced as to align the changes in the
organisation for the effective outcomes.
7S Explanation
Strategy It is referring to the defined action plans which needs to be used while
performing the operations to meet the desired objective. TESLA business
strategy is mainly focused on to the electric cars that is driven by the
company's mission whi8ch is to accelerate the world transition in to the
sustainable energy (Poblete and Spulber, 2017).
Structure It is can be defining as the design of the organisation which is need to follow
by the employees interaction with each other. TESLA organisational structure
is more close to the divisional structure as it is consist of the wide ranges of
division such as energy, engineering and production and also HR and
communication, legal and finance, sales etc. for which divisional structure is
suitable to get the effective performance outcomes.
System This is referring to the information system of business in which company has
invested to fulfil the objectives. There are wide range of system that is
essentials for the TESLA long term growth perspective. Such as recruitment
and selection system, team development and orientation system, transaction
processing system etc. that is needed to improve as according the need of
internal situations and conditions. So that they can reduce the factors that can
affect the performance of company.
Staff Staff is referring to the workers and employees that are recruit by the
company to perform the task. TESLA is having the wide range of staff as it
manages the various activities and divisional departments and consist of
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different set of skills and abilities. Along with the innovation in any factor of
a company it also required the workforce with the suitable skills and abilities
(Guerra Guerra, ed., 2018).
Style This is an approach that is adopted by the leaders and managers which is used
while interacting with the employees, customers and suppliers. Leaders in
TESLA use an autocratic leadership styles in which a leader is has the control
over all the decisions and includes quite input form the group members. As
this is a large organisation and this will suit it the most so that it reduces the
confusions and disruption from the operations
Skills Skills are associated with employees of an organisation which are used while
performing the activities and provide support in to achieve the goals and
objectives effectively. TESLA employees are associated with the skills such
as interpersonal, informational and decisional skills that are required the most
for the effective management and it is also consist of the technical skills as it
is an auto-mobile company to accomplish the goals and objectives.
Shared values It can define as a central piece of the whole 7S framework. This is based on
the concept of deciding the objectives that is to be achieved. TESLA has the
objective to remain as relevant in the market for the longer period.
TASK 3
Future innovation capabilities of an organisation and innovation roadmap
For the future capabilities, an organisation is needed to build the roadmaps that shows the
innovation capabilities and also develop an approach that will be used by the executives,
managers and employees within the company (Mandal, 2019). Along with having the complexity
of various business units and essential corporate function in mind. The road map has also made
the easy for the core team in actual makes the thing happen and compliment them in action. For
making the road map there are several factors on which this is based and help in to build
corporate innovation capabilities this is discussed below in context to the TESLA.
 Every organisation has set a guidelines principle that has to be followed by the each and
every employee while working within the organisation. As same Tesla is also consisting
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of some guidelines that must be incorporated in a innovation roadmap. As because there
is no longer separation in the organisational principles and innovation efforts. Along with
this innovation efforts provides a transformation to the company to become more
transparent and faster in adopting changes as per he is changing environments and also
according to the customers’ requirements (Tiwari and Buse, 2020).
 Before making innovation roadmaps, leaders and managers as itself that an organisation
needs to pursue innovation like this. This provide support to the TESLA in identify the
objectives for the efforts that being done by the leaders for creating roadmap of an
organisation and these objectives could be:
-To develop better product and services to become the faster at a marketplace.
- This can be made to gain the competitive advantages.
- To transform the company in order to face the challenges in an effective manner in the dynamic
environment.
- Formulate a modern function of the organisation with the strategic role that provides the way to
achieve the desired goals.
- To become the recognized, strong and desirable company among the competitors.
From the above objective’s leaders of TESLA has to prioritize them while having in the
mind these are moving targets that has to be achieve in the future with the help of innovation
roadmap (Kelliher, Kearney and Harrington, 2018).
 For the accomplishment of objectives, leader must identify the key area that are relevant
to the objectives. There are so many key areas available for the core team on which they
can work and that can give a better overview to initial the work. And key area can be
consisting of an organisation itself, infrastructure of innovation management system and
product, services and process etc. this will provide the direction to the leaders of the
Tesla in to work towards the ojectives.
 It is the basic mistake of the organisation; they create the pool of projects while not create
the pool of human resources who make the thing happen and make the things in the
action. Here it needs a different type of people for the different projects that it also
consists of different development phases. In order to support this TESLA should focus
and need to find out the employees, train and develop them for the short, mid and long-
term perspective.
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Tesla has successfully adopted the electric vehicle in the market, but the biggest hurdle is
faced by the electric car is lack of running as they need to be charged at the certain period of
time. For this TESLA can make the future innovation in the electric car with the long range in a
single charge and replacement them with the conventional vehicles in the market by electric
vehicles. For this company need to do the market research to analyse the current status of the
electric vehicle technology and for this prepare a roadmap that how it going to be achieve to
being a pioneer in the auto-mobile industry. In addition to this, to implement the innovation a
Tesla need to develop the action plan along with the roadmap.
An action plan refers to the checklist for the steps or the task that a company need to
complete in order to achieve the goals in effective manner and with the perfection. This includes
the budgeting, forecasting and monitoring of the plan that need to put in action for the
accomplishment of goals.
External environment – PESTEL analysis
PESTEL analysis refers to the framework that is used as tool to analyse the external
environment or macro environment in which company exist (Tan, 2020). Changes in the external
environment has the direct impact on the company's productivity and profitability over which
company has no control. Business can only adopt it or react on it to take them as an effective
way. There are 6 factors discussed below in context to Tesla:
Political factor These factors are related to the political stability of the country. Tesla
perform its operations in a developed which is UK in which the political
parties perform its operations with stability. Moreover, Tesla is benefited
from the range of aids which are being provided by the UK government to
the company for their growth and development. It includes certain aspects
such as Government rules and regulations which makes the organisation to
run their business operation effectively and efficiently.
Economical factor These factors are related to the economic condition of the country. People
in UK have high disposable income which helps the organisation to
generate higher amount of sales lead for earning revenue. If Tesla
introduces something new in the market they have potential customers
available in the market who can buy their products and services with their
disposable income which helps the organisation to generate large amount
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of revenue for the organisation (Alexander and Joe, eds., 2019).
Social factor These factors are related to the societal factors such as population growth
rate, age distribution etc. which aids the organisation to plan their
marketing strategies for the purpose of targeting their customers. The
society consists of people from various group of people such as upper
middle-class people which can be the customers for the company
Technological
factor
These factors are related to the technological advancement and the research
and development activities which are being exercised in the economy. In a
development country such as UK, there is a availability of advance
technology for the companies to utilise which helps the organisation to
increase the quality and quantity of the products along with the
minimization of cost an maximization of the profits for the organisation.
Companies like Tesla are facing the major issue of obsolete of the
technology which is being utilised in the company as due to fast
advancement of the technology, the obsolete of the technology also gets
fast which increases the expense of the company.
Environmental
factor
These factors are concerned with the rules and regulation of the
Government which are being laid down on safety of the environment. All
the companies which are functioning in the business environment have to
follow these rules and regulations for the smooth functioning of the
business so that any kind of penalty will not get imposed on the
company(Tsaih and Han, Eds., 2016). Tesla has a separate system
developed for the dropping of industrial waste so that it will not harm the
environment.
Legal factor These factors are related to the legal aspects of the business environment
which mainly includes the licensing, patents, trademark etc. All the
companies should follow the legal compliance of the Government so that
no complications will arise in the functioning of the business. Tesla has
separate legal team assigned which includes those personnel’s who are
well trained for dealing with the legal issues which happens with the
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functioning of the business. These personnel must deal with certain legal
issues so that the barrier would not develop in the operations of the
business.
The external factors impact the Tesla on a wider base which may lead to creation of
opportunities and threats for the organisation and the organisation has to grab the opportunities
and overcome the threats which are coming in front of the management so that the organisation
will be able to generate high amount of profits and revenue out of it (Öberg, 2017). Tesla must
make sure that these factors will benefit the organisation as a whole and would not build any
hurdle in the expansion of the business. Therefore, it is being essential for the company like
Tesla to take care of the factors related to the external environment.
CONCLUSION
From the above analysis it has been concluded that innovation is refers to the application of new
ideas that is perceived by the individual or group of individual for introducing something new in
the product or in the ways of working. As with the dynamic environment it is important to
managing changes and innovation in the business to remain relevant and profitable in the
marketplace. Along with this technology is changing rapidly that will enhance the future of the
auto mobile industry in terms of innovative products or changes in the internal operations. It is
important for the company to adopt the changes as in a way of innovation that help the company
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to remain profitable. It is required that support the TESLA in many ways such as it developed the
creativity in the employees and reinforce the brand with their effective performance as this factor
provides the competitive advantages to the organisation. with this 7S are also discussed with the
preceptive of the TESLA that is used to identify the area that is to be developed in the
organisation. Moreover, it also explained the future innovation capabilities of the organisation
that is been identify through building roadmaps. As there is wide scope available in the future for
the auto mobile industry.
REFERENCES
Books and Journals
Biemans, W., 2018. Managing innovation within networks (Vol. 7). Routledge.
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.
Archibald, R.D. and Archibald, S., 2016. Leading and Managing Innovation: What Every
Executive Team Must Know about Project, Program, and Portfolio Management. CRC
Press.
Kerzner, H., 2019. Innovation Project Management: Methods, Case Studies, and Tools for
Managing Innovation Projects. John Wiley & Sons.
Alexander, B. and Joe, T. eds., 2019. Managing Innovation: What Do We Know About
Innovation Success Factors? (Vol. 33). World Scientific.
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