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MGMT20132: Innovation And Sustainable Business Development
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In today's day and age, technology is rapidly improving and ever-changing. It has great impact on business operation the regardless of size, nature, scale, and money. In this report, an innovation trend and its uses are discussed in context of a Tesla. The selected trend is "Artificial Intelligence which is the emerging technology and has a great potential in the future. The value proposition model and the recommendations for the company were detailed out in the report along with some assumptions.
Artificial Intelligence is the advancement in the computer science field that focuses on development of new and innovative & intelligent machines that works like human and carry out operations automatically.Tesla is an energy and automotive company which is headquartered in Palo Alto, California. The company specialises in producing electric cars, solar panel, and energy storage devices. It also deals in space technology. The company has high potential for the AI and the technology also looks promising for the company. In this report, the innovation tools are also discussed along with the value preposition. For that purpose, Entrepreneurship canvass model and value proposition model are explained in detail. In addition to this, the recommendations for the company were detailed out in the report along with some assumptions.
Problem to be Resolved
Tesla is aiming at improving the efficiency and reducing the errors and faults in the manufacturing and assembly line. At present, the company is undergoing poor employee performance and large number of faults.
In manufacturing and assembly plant, many of the errors and faults take place due to human ignorance and lack of focus. The AI can help in improving the current process of the organisation. Poor efficiency and faults have impacted the productivity and profits of the company in the past few years. AI-based machines can improve the speed of the manufacturing and assembly process (Goorer, et.al, 2017).
Portfolio of the Solutions for the Problems
- Smart-Connected Products
- Artificial Intelligence
- 5G-based communication technology
Solution Selection Analysis
Out of all the solution proposed above, AI is the most suitable option that would surely be helping the organisation in improving the company's efficiency. By making use of the technology, the company can standardised its operations in assembly plant and in manufacturing units. Once the standards are defined in the system, the AI-based machines can carry out operations in accordance with the defined procedure. This would reduce the chances of error and thus contribute in the business profits and revenue (Toro-JarriÌn, et.al, 2016). The standardised operations can improve the operation pace and reduce the errors.
Competitive Advantage of the Technology
With the usage of AI in the matter of Tesla, different business openings will be gotten by the organization which will take into account the successful use of time and cost empowering the organization to pick up the upper hand (Anandan, 2018). As through AI, the best business choices can be made taking into account the addition in the organization's deals and income.
Value Proposition Canvas
Tesla is aiming at gaining some insights into robotics and automation technology that helps the company in improving its efficiency and bottom line. The customers will also be benefitted by the new and improved production line. In addition to this, the innovation can help in improving the portfolio of the company (Joyce&Paquin, 2016).
- Key Partners:It comprises various partners that supplies car components, developers, suppliers, space agencies, government bodies, automotive firms, AI-based software developers.
- Key Activities:Development, designing,support services, post-sales, R&D, innovation, clean energy production, and marketing (Krishnaswamy, et.al, 2016).
- Value Proposition:the value proposition of Tesla is to develop the modern automotive that are eco-friendly, cost-effective, and innovative. In addition to this, the mission of the company is to become the leader in the production of the clean-energy.
- Customer Relationship:In order to maintain the customer relationship, Tesla is adopting the strategy of providing good customer services. In addition, the customer satisfaction of the company is very high and Tesla is growing based on word of mouth (Carson, et.al, 2016).
- Customer Segment:The target customers of Tesla comprise those who look for eco-friendly, high-performance, luxurious cars, and latest technology. Business executives, wealthy people, tech-savvy, etc., are some major customer segment.
- Channels:At present, the company offers its products in the market through authorised service centre or dealers. In addition to this, customers can also order Tesla's products from the company's websites.
- Key Resources:the company has over 45000 employee in different countries including the US and China. In addition to this, production units, assembly plants, network, and suppliers, and distributors are the part of the key resources for the company. In addition to this, the company has high market value and goodwill.
- Cost Structure:It comprises different components, taxes, manufacturing costs, contract, logistics, production cost, labour cost, etc. In addition to this, compensation and employee benefits of the company.
- Revenue Stream:The revenue for the company comes from various sources, such as rental, licensing, bank interest, sponsors, sell of cars and other products, financing and insurance.
Disciplined Entrepreneurship Canvas
The first and foremost element of this canvas is Raison d'Etre, which elaborates the reason for the conducting business. The vision of Tesla is to acquire the top position in the automotive market. The mission of the company is to provide improved services and solutions in the field of transportation and clean energy.
The next is competitive advantagethat this technology will provide to Tesla and make its position in the market better than ever. With its innovative abilities, the company has gained humungous growth within a short span of time. Artificial Intelligence would help in the growth of the company by helping the company to launch new product line (Anandan, 2018). This way the company can be able to capture the large market share and new customers in both local and global market. (Bickersteth, et.al, 2018)
The third one is customer acquisition and Tesla is acquiring customers in the international market through customer satisfaction by offering innovative product that suits to the needs of the customers. The tech-savvy people and business class or elite class people would love to purchase (Porter&Heppelmann, 2014).
The forth one is the initial market of the company that include stakeholders, such as government, customers with unique demand, innovative minds, business organisation looking for clean-energy sources and power storage devices (Bickersteth, et.al, 2018).
- Customer Desirability:It is assumed that with the implementation of the AI in Tesla's operations, the company can be able to serve its patrons more effectively. The cars can be made more secure as the AI can increase the safety of the driver while they are driving. It can guide them and can control the cars when driver is not mentally attentive or physically unwell (Porter&Heppelmann, 2014).
- Technical Feasibility:It is assumed that AI is compatible with other features of the automobile. From braking system to its controls, AI-based technology can control the whole car.
- Financial Viability:AI-based cars may be a bit more expensive than the traditional cars but its benefits can outclass the increased cost. The company's prime customers are elite class people and it is assumed that the increased cost may not bother them that much.
Innovations Tools for Implementing AI in Tesla
- Total Quality Management:the TQM tool will help in improving the working process of the company and reduce the number of errors. The detection of source of errors can be done and strategies can be formulated to eliminate such sources.
- Zero-based Budgeting:Through this tool, Tesla can be able to make the budget of all the expenses that will occur in the process of implementing AI in the operations. The process of Tesla would begin from zero budget. The company is very much focused in executing the AI implementation in a more disciplined manner.
- Digital Transformation:this tool helps in coordinating computerized innovation in the diverse business territories for working and conveying the estimation of clients. The fulfilment of clients will be improved, decreased dangers, ceaseless improvement, process streamlining. The adaptability and proficiency will be improved through this. The bottlenecks of the association will dispense with through this instrument and the effectiveness of the business that can be hurt will likewise be evacuated through this
- Core Competencies:AI is going to be a game changing technology for Tesla and this will surely be providing an edge to the company in the international market and make it a leader in the market. The company can improve its core competencies with it.
- Benchmarking:While comparing or setting up the benchmark for the AI-based automotive, the company can be able to compare this technology with the traditional or current technology being used in the company. This would help in identifying the areas of improvement.
- Price Optimisation Model:This model would help Tesla in deciding the cost of developing an AI-based automotive vehicle in comparison to a traditional fuel-based car. This would decide the customer attention that can be grabbed by an AI-based car.
- Customer Relationship Management:
- Strategic Planning: With the help of this technique, the company can be able to clarify, identify, and detail out its goals and objectives. This way the AI-based technology can be put in the prime mission statement of the company.
Recommendations for Tesla Regarding the Selected Trend
It is advised to Tesla that it should provide customers to test for all the possible negative outcomes of implementing the AI technology in its cars and business operations. All the possible failure scenarios should be understood and a strategy to tackle them must be prepared. The AI should be equipped with upgrades that should be available to users on regular basis (Yin& Wang, 2012). In addition to this, the information of the user should also be protected through a firewall system that would make sure that no breach occurs. In addition to this, implementing AI in the communication system can also improve the efficiency information flow can take place in an effective manner.
This assessment helped me in improving some of my knowledge and skills. The first and foremost is the researching skills. Prior to this assessment, I have done only a few work where I need to read research articles and build argument. While working on this report, I got to learn about the same. In addition to this, I came to know many things and applications where AI can be used. I figured out that I am weak at writing reports as I was not able to prepare a proper structure. I have mentioned about eight tools that might support the innovation trend and I learned about their applicability (Litman, 2017). During this task, I become more acquainted with about my shortcoming and qualities and I figure I will be better ready to achieve my future ventures by utilizing the qualities (Yin& Wang, 2012). It will likewise help me in my future vocation. I find that I come up short on the initiative abilities yet I have awesome relational abilities so for chipping away at my administration aptitudes I will attempt to pick up learning from my instructors and seniors.
In this report, it was determined that technology is the backbone of every modern business. Majority of operations are based on technological innovations. In the document, many new innovation tools were discussed that could be used for implementing the Artificial Technology in Tesla. This won't just settle on the brisk choices in the organization however will likewise utilize cost and time for the smooth working of activities of the organization. The dialog is made in the report seeing different apparatuses, for example total quality management, benchmarking,advanced change, zero-based planning and a lot more and every one of these devices will help Tesla in the compelling usage of the AI.
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- Porter, M. E., &Heppelmann, J. E. (2014). How smart, connected products are transforming competition.Harvard Business Review, 92(11), 64-88.https://www.gospi.fr/IMG/pdf/porter-2014-hbr_how-smart-connected-products-are-transforming-competitionhbr-2014.pdf
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- Yin, Z., & Wang, Y. (2012). ABS Simulation System of Automobile Based on Virtual Technology. Applied Mechanics and Materials,229-231, 1831-1834. DOI: 10.4028/www.scientific.net/AMM.229-231.1831