Innovation Management Report: Strategies for Toyota's Innovation

This report provides a comprehensive analysis of Toyota's innovation management practices, focusing on its operations within the Australian automotive industry. It begins by exploring the development of innovative environments, identifying opportunities such as innovative thinking, environmental consciousness, and waste minimization. The report then delves into leading innovative environments, examining a specific problem related to communication speed within the logistics division and proposing solutions through participative leadership and strategic communication. Furthermore, it examines the creation of a culture of innovation, addressing cultural barriers and gaps in the system, and emphasizes the importance of stakeholder engagement and resource allocation. Finally, the report addresses the maintenance of an innovative environment, highlighting the importance of continuous assessment and improvement. The methodology employed includes communication strategies to engage stakeholders and detailed documentation of the problem-solving process. Overall, the report underscores the significance of innovation for Toyota's sustainability and competitive advantage in the automotive industry.

Running head: INNOVATION MANAGEMENT
Innovation management
Name of the Student
Name of the University
Author Notes:

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Table of Contents
Activity 1: Developing Innovative Environments...........................................................................2
Introduction..................................................................................................................................2
Opportunities...............................................................................................................................2
Rationale......................................................................................................................................3
Methodology................................................................................................................................4
Activity 2: Leading Innovative Environments................................................................................5
Nature of Problem........................................................................................................................5
Stakeholders.................................................................................................................................5
Organisational Structure..............................................................................................................6
Leadership style...........................................................................................................................6
The strategy.................................................................................................................................6
Steps in problem identification....................................................................................................7
Drivers of the issue......................................................................................................................7
Documentation.............................................................................................................................8
Activity 3: Creating a culture of innovation....................................................................................8
Cultural barriers...........................................................................................................................9
Gaps in the system.......................................................................................................................9
Stakeholder engagement............................................................................................................10
Resources...................................................................................................................................11

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Feedback from stakeholders......................................................................................................11
Activity 4: Maintaining an Innovative Environment.....................................................................12
Gaps in assessment....................................................................................................................13
REFERENCES..............................................................................................................................15

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Activity 1: Developing Innovative Environments
Introduction
Regardless of the nature of operations of a company, it can be said that innovation is the
key to sustainability of a company in the modern business environment. Innovation is the process
that is characterised by challenging the regular nature of operations that is being carried by firms
while they are operating in an industry (Frankenberger et al. 2013). With the help of innovation,
firms can challenge the process through which they can develop an addition to their competency
in gaining competitive advantage in the industry that they are operating in. Toyota has been
identified as a company that has incorporated considerable amount of innovation while they are
operating in the Australian automotive industry (Simão and Lisboa 2017). Furthermore, the
company has been able to shape the nature of the industry that they are operating in which is
ultimately aimed at gaining sustainability in operations. Innovation and creative thinking are
activities that help in bolstering the abilities of a company in terms of development of the core
competencies of the company (Zacher and Rosing 2015). The aim of this activity sheet is to
promote the idea behind the proposed innovative product from Toyota.
Opportunities
The opportunities that are present in front of an organisation, determines the feasibility of
the solutions that the companies can adopt in order to gain sustainability in the nature of
operations that have been adopted by the company while they are operating in an industry
regardless of the nature of the industry. The main scope of strategies that have been adopted by
Toyota while they operate in the global automotive industry. Innovation and creativity is deemed
to be a strategy that has been responsible for the viability of operations of the company

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regardless of the country that they are operating in (Fontaine 2013). There are various
opportunities that have been presented in front if the company can help them in terms of gaining
sustainability in operations while they are operating in the Australian Automotive industry.
Following are the opportunities that have been presented while the company operates in
Australia;
i. Innovative thinking: Not only the companies but also the consumer community in the
country have been able to incorporate a considerable amount of innovative thinking. It
has been found that they appreciate innovative technology and the affiliation of the latter
towards innovative forms of technology is deemed to be rising.
ii. Environment Consciousness: While the companies operate in the industry, they are seen
to pay due importance to the environment. The consumer community is also influenced
by the companies who are ensuring that there exists considerable amount of sustainable
motive towards the conservation of the environment.
iii. Waste minimisation: Be in organisations or the consumer community, it has been found
that both have been influenced by a considerable amount of affiliation towards the
minimisation of wastage while the latter carry out operations regardless of the nature of
the latter. Waste accumulation is considered one of the biggest challenges that are being
faced by the organisations and individuals in the modern business organisations. Thus,
minimisation of wastes is one of the biggest issues that needs to be faced by organisations
while they are operating in the industry that is deemed to be highly competitive in nature.
Rationale
According to the business model of the company, the main motive of the company is
characterised by sustainability in operations while they are operating in the industry. Innovative

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ideas are creative thinking is appreciated while the company operates in the industry. Thus, the
rationale behind the development of the newly implemented motive of the company is
characterised by the development of further innovation and the incorporation of the same in the
operational activities of the company. Hence, it can be said that they newly implemented motive
of the company that is also characterised by innovation is deemed to get the nod of approval
from the part of the diverse groups of stakeholders associated to the organisation. The latter is
deemed to the reason through which the company is perceived to be able to gain favourable
outcomes in operations.
Methodology
Communication is deemed to be one of the most favourable technique that can be used in
terms of justifying the rational of the company’s new motive. The aim of the company is to gain
approval from the stakeholders who would be effected as a result of the operations of the
company. Thus, the method to be applied by the company in order to engage all the stakeholders
is through communication. The shareholders would be informed regarding the new idea through
emails, all the members of the management of the company would be informed through
meetings, board room meetings is the chosen mode of communication that applies to the board of
directors and the investors of the company. The legislative requirements are to be fulfilled
through declarations that would inform all the regulatory and legislative bodies. One of the main
groups of stakeholders that is the consumer community would be informed and engaged through
the online communities. The social media pages of the company will be the medium through
which the consumer community would be informed about the idea that the company has been
able to develop. The existing customers would be informed through push mail and text messages.
Thus, carrying out the latter effectively is likely to engage the consumer community.

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Activity 2: Leading Innovative Environments
Nature of Problem
It has been brought to the concern of then management that there has been difficulties in
maintaining the speeds associated with the operations of the logistics divisions of Toyota. The
main issues that has been detected is the slow nature of the process associated with the
development of the activities associated with the operations of the logistics division. It has been
found that the main problem that is being faced by officials in the logistics division is regarding
identifying emails that are urgent and responding to them on urgent basis. As a result of the slow
nature of the process, it has been found that the supplier relations are becoming unfavourable
with the passing of everyday. The same has been brought to the attention of the top management
through the general manager of the logistics division. Thus, the top management needs to cater to
this issues by developing an innovative idea that will help in mitigation of the issue associated
with the slow nature of the process. Furthermore, resolution to this problem will help in solving
the issues associated with the unfavourable relations with the suppliers.
Stakeholders
The stakeholder associated with the effectiveness of the solution are deemed to be viable
for the operations of the company. The workforce of the logistics division, the management of
the division, the suppliers, the management and the top level officials of the company are the
stakeholder associated with the development of the issue. Furthermore, sustaining the problem
could harm the smooth nature of performance of the company in the long run.

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Organisational Structure
The structure of the logistics division of the company is hierarchical and the nature of
communication is either upward or downward. Thus the slow nature of communication is
affecting the nature of operations of the company with an unfavourable culture that is
characterised by filtration of information which results in the development of conflicts.
Leadership style
The style of leadership is an aspect that determines the viability of operations of the
employees of the organisation (Strom, Sears and Kelly 2014). Furthermore, it affects the nature
of the culture of the organisation. The issue that has resulted in the development of unfavourable
relations with the suppliers and the slow nature of the process can be solved by effectively
mitigating the issue through effective leadership. Participative leadership is the style of
leadership that would be required in terms of gaining favourable outcomes (Iqbal, Anwar and
Haider 2015). There needs to be incorporation of communication that will help in mitigation of
the issue that has been highlighted in the aforementioned sections. The latter is a process which
is likely to work favourably in terms of engaging the efforts of the employees
The strategy
The aim of the management is to mitigate the issue that has been detected. The latter
problem can be solved effectively by ensuring that there is communication regarding the
problem to every team of the logistics division of the company. Meetings will be held with every
floor manager of the said division including the representatives. The problem that has been
identified can be solved through development of an idea that will help in terms of detecting the
urgency of the emails. The emails can be effectively solved through the developments in
meetings. The main action that will be carried out in the meeting will be to put emphasis on the

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topics of the meetings. It can be said that the subject line of the mails will help in identifying the
nature of mail. Thus will help in terms of effective mitigation of the issue that would help in
speeding the process that is associated with the speed of the process in the said field. The
strategy that should be adopted by the company should be characterised by smooth flow of
communication to every responsible stakeholder. This will help in ensuring the viability of
operations of the company.
Steps in problem identification
Following are the steps that needs to be carried out while the operation is being carried out
(Hesse et al. 2015);
i. Identification of the issue
ii. Determination of the scope of the issues
iii. Analysis of the factors responsible for the issue
iv. Identification of stakeholders affected by the issue.
v. Evaluation of the problem in terms of identified issue.
vi. Development of a resolution plan
vii. Catering to the needs for Risk management
viii. Evaluation of alternative criteria for justification of the issue.
ix. Implementation of the plan that has been adopted.
x. Monitoring the response that has been taken by the company.
Drivers of the issue
Following are the drivers of the issues that has been detected;
i. Communication

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ii. Speed of information interchange
iii. Speed of service
iv. Issue handling on the basis of Urgency
v. Nature of relation with the suppliers
Documentation
The issues has been identified after it was brought in attention of the management. From
that step onwards, till the last step, it has been ensured that the process of identification of the
risk, development of the solution, implementation and evaluation of the same along with
development of a rationale for the strategy has been effectively documented. The latter helps in
ensuring the fact that all the operations and activities in the process has been effectively
monitored and documented. The process of documentation is carried out in order to determine
the viability of similar issues if they occur again. The same process can be followed which will
determine that a resolution can be offered directly without any waste of time.
Activity 3: Creating a culture of innovation
The culture of an organisation is one of the most crucial factors that determines the
effectiveness of operations associated to the company (Dries 2013). The culture of an
organisation is necessary for the nature of communication that exists in the organisation (Hogan
and Coote 2014). Furthermore, the latter also influences the nature of motivation in the company
as a result of which the effectiveness of operations of the company is catered to effectively.
Innovation is the key to sustainability of organisations in the long run. Following are the barriers
that determine the effectiveness of operations of the company in terms of gaining the stature of
multiculturalism by stating the barriers that hinder the effectiveness of the latter;

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Cultural barriers
As a result of the difference in cultural belonging of the individuals associated with an
organisation, there might be issues that are faced in the daily operations of the latter. Difference
in cultures results in difference of norms and decision making strategies of individuals (Hogan
and Coote 2014). The main barrier that can be encountered by the individuals concerns the
process of communication. With difference in cultural belonging the difference in language is
evident (Norbury and Sparks 2013). However, it can be said that with the use of a common
language, the differences can be overcome which will help the organisation in terms of
generation of activities that engage the people of the organisation. Training programs in a
common language and employee engagement activities can help in the mitigation of the said
solution. This will help in the promotion of innovation and help in terms of development of
effectiveness in operations of the company.
Gaps in the system
It has been found that some sections of the population believe that there is a considerable
amount of favouritism that takes place in the organisation. However, the latter should be
informed the scope of the organisational policies. Along with the development of activities on
behalf of the organisation, it should be educate to the varied group of stakeholders that diversity
and inclusion is on top of the priorities of the organisation. This would supposedly be effective in
terms of development of the factors associated to negative perceptions that a section of the
population have regarding the said organisation. As a result of the said perception that exist
regarding the viability of the company, it has been found out that younger population of the
consumer community can be engaged by promotional social media campaigns that talk about the
nature of operations of the company. Furthermore, uploading videos on You-tube regarding the