Innovation at Tesla: Analyzing Products, Services, and Impact

This report provides a comprehensive analysis of Tesla's innovative products and services within the automotive industry. It begins with an overview of Tesla's background, highlighting its focus on energy-efficient electric cars and direct distribution models. The report then delves into the specific innovations made by Tesla, such as the introduction of electric vehicles, advancements in battery technology, and the implementation of AI in car software. It examines the success of these innovations and their positive impact on society, including contributions to climate change mitigation and job creation. The report also explores relevant theories and models like Design Thinking and SWOT analysis, demonstrating their application in Tesla's innovation process. Finally, it extracts key lessons from Tesla's approach to innovation, emphasizing the importance of long-term vision and technological advancements. The report concludes by summarizing Tesla's successful implementation of innovation and its positive impact on sustainable development.

Innovation at Tesla
SystemJP
January 1, 2020

INNOVATION 1
Table of Contents
Introduction................................................................................................................................2
Organisation Background...........................................................................................................2
Innovations made by the organisation........................................................................................2
Success of the innovation and its impact on society..................................................................2
Theories and models..................................................................................................................3
Key Lessons from Tesla’s innovation........................................................................................4
Conclusion..................................................................................................................................4
References..................................................................................................................................5

INNOVATION 2
Introduction
The organisations are required to focus upon the innovation, to meet the changing
needs and requirements of the customers and to compete within the industry. The innovation
can be done in the manufacturing process or by introducing a new product within the
industry. The report is focused on analysing the innovative products and services offered by
Tesla and its impact within the society.
Organisation Background
Tesla is an American organisation dealing in the automobile industry. The
organisation focuses on the production of energy-efficient electric cars, and battery-related
products. The organisation focuses on improving its products on a continuous basis so that
they can provide their customers with a competitive product also can contribute towards the
climatic change. Tesla is focused on the production of the energy-efficient cars and also
towards the direct distribution of the cars to the customers, through the online platform or
through company-owned stores, so that the middlemen can be eliminated and a satisfactory
service can be provided to the customers. In the fourth quarter of 2019 Tesla recorded a
revenue of US$ 24.57 billion, and has a workforce of approximately, 48,016 employees
(Tesla).
Innovations made by the organisation
Tesla is considered as an organisation who has brought the shift from the use of fuel
cars towards the use of electric vehicles within the market. The launching of energy-efficient
vehicles within the industry is the major innovation done by Tesla within the industry. Tesla
focused on optimising the software and the hardware that is being used within the automobile
industry so that the performance of the battery-operated cars can be improved along with
investing in the mass production so that the innovation can be made available to the
customers within the industry effectively (Furr and Dyer).
Tesla along with focusing on battery or energy-efficient cars, it is also focusing on
promoting AI within the car’s software so that the customer experience can be improved. The
innovation made by Tesla also includes the superchargers installed by the organisation, to
eliminate the issue of the car charging. Tesla is among the world most innovative companies
with its focus on bringing such innovations within the industry (Booth).

INNOVATION 3
Success of the innovation by Tesla and its impact on society
The innovations made by Tesla has proved successful and in the list of the most
innovative companies, Tesla is the lone car manufacturer in top 10 list issues by Boston
Consultancy Group (Alvarez). The factor behind the success of the innovations made by
Tesla is the changing customer’s needs and requirements within the industry and changing
rules and regulations regarding safety and vehicle emissions. Along with the changing
industry requirements Tesla focused on customer satisfaction and provided with competitive
services within the industry which helped in achieving success within the industry (Zucchi).
Tesla is influencing the society in many ways, through the introduction of electric cars
within the industry the organisation is contributing towards the mitigating the impact of
climate change by reducing emissions within the industry. Also, with the development of the
organisation and the expansion of its business Tesla is creating job opportunities within the
society. Also, Tesla effort towards the production of battery cars and using solar power for
the energy generation the society is adopting such innovations and contributing towards
sustainable development (Dyer and Gregersen).
Theories and models
Design thinking is an effective process through which an organisation can implement
innovation within the organisation. The Design Thinking includes steps such as; empathize,
define, ideate, prototype and test, Tesla can effectively adapted the design thinking model in
the innovation process within the organisation, as through the steps defined within the model
Tesla can develop strategies and can design a proper plan through which the innovation can
be introduced within the industry along with ensuring the success of the product within the
industry (Glen, Suciu and Baughn).
SWOT Analysis helps in effectively analysing the business strengths and weakness
and the future opportunities and threats, analysing such factors help the organisation in
developing policies through which it can effectively lead towards achieving the goals and
objectives of the organisation. Tesla being operating in the automobile industry; it is required
that the organisation focus on its internal strength and weakness so that it can provide its
customer with innovative products and service. Tesla brand image and its product line are its
strengths, whereas the organisation lower revenue and manufacturing complications are the
weakness of the organisation. Tesla has opportunities to innovate its products and improve
the production efficiency, along with entering the global markets and nations, the competition

INNOVATION 4
within the industry and the price factor contributes towards the major threat to the industry
(Gürel and Tat).
Key Lessons from Tesla’s innovation
 Tesla’s innovation within the industry proves that the industry takes time to adapt the
innovation, but with the time and the efforts of the organisation, the innovation can be
proved successful within the industry.
 Focus on long term vision and establish long-term goals and objectives. As to make
the innovation successful, the organisation is required to ignore the short-term losses
or the negative impact on the organisation.
 Innovation has its own value, as with the introduction of a new product within the
industry the organisation needs to decide upon the ways through which it can
effectively explain its innovative product and can attract the customers within the
industry.
 The utilisation of the effective and advance technological changes within the industry.
As the organisation can achieve success within the industry if it would be able to
provide its customers with innovative as well as competitive products (Chen and
Perez).
Conclusion
Tesla has effectively focused on implementing innovation within the organisation as a
result, it has achieved success within the industry and has established an effective and
satisfied customer base within the industry. Tesla has focused on the development of the
energy-efficient cars through which it can effectively contribute towards sustainable
development and the development of the society, by creating job opportunities for society.
Tesla’s innovation process explains that businesses within the industry are required to focus
upon the long-term goals rather than focusing on the losses incurred in the short-term.

INNOVATION 5
References
Alvarez, Simon. Tesla is one of the world’s Most Innovative Companies, says noted
consulting firm. 28 March 2019. https://www.teslarati.com/tesla-most-innovative-
companies-in-2019-ranking/. 05 March 2020.
Booth, David. Motor Mouth: Four innovations that set Tesla apart from the rest. 04 january
2019. https://driving.ca/tesla/auto-news/news/motor-mouth-four-innovations-that-set-
tesla-apart-from-the-rest. 05 March 2020.
Chen, Yurong and Yannick Perez. "Business Model Design: Lessons Learned from Tesla
Motors." Conference Paper (2015).
Dyer, Jeff and Hal Gregersen. Tesla's Innovations Are Transforming The Auto Industry. 24
August 2016. https://www.forbes.com/sites/innovatorsdna/2016/08/24/teslas-
innovations-are-transforming-the-auto-industry/#3552bdfd19f7. 05 March 2020.
Furr, Nathan and Jeff Dyer. Lessons from Tesla’s Approach to Innovation. 12 February 2020.
https://hbr.org/2020/02/lessons-from-teslas-approach-to-innovation. 05 March 2020.
Glen, Roy, et al. "Teaching design thinking in business schools." The International Journal
of Management Education (2015): 182-192.
Gürel, Emet and Merba Tat. "SWOT Analysis: A Theoretical Review ." The Journal of
International Social Research (2017): 994-1006.
Tesla. About Tesla. 2020. 05 March 2020. <https://www.tesla.com/about>.
Zucchi, Kristina. What Makes Tesla's Business Model Different? 21 September 2019. 05
March 2020. <https://www.investopedia.com/articles/active-trading/072115/what-
makes-teslas-business-model-different.asp>.