Innovation Management Assignment 2

Oliver Wyman’s “Car Innovation 2015” 

   “Stagnation means regression” to innovation management in the automotive industry. All of the auto executives whom Oliver Wyman interviewed in the course of the study were convinced that innovation was one of the most important success factors to maintaining a strong competitive position in the auto market. Innovation is also a key to resolving most of the global challenges that the industry faces. Without innovations by the auto industry, the entire concept of individual mobility is put at risk.

Will the long duration of innovation worth it?

   Long-range plan to innovation strategies are linked to each of these megatrends. Take the aging society. It is likely to have a powerful effect on fashion cycles, technology penetration and even societal ideals. In ten years, the average customer will be significantly older than today and will have a very different set of needs. In order to succeed, technologies must be both easy to use and easy to understand by older consumers. 

   The ongoing specialization in engineering and manufacturing will cause technological product differentiation among manufacturers to continuously decrease. Creative ways of innovation is a necessary technique to better control the increasing complexity of cars. Car manufacturers will focus their innovation efforts on module interfaces and on modules’ brand-defining features (for example, security for Volvo, comfort for Mercedes-Benz, reliability for Toyota), and will outsource the safety issues to suppliers.

   In the majority of markets, the average new-car buyer is 40 years old. By 2015, that age is expected to increase by four years. Developing cars for this target group does not mean building “old-age cars.” It means equipping cars with design and handling features that the target group will find useful, exciting and desirable that is without sacrificing the model’s overall statement. A car designed for an older target group might feature:

• Ergonomically designed boarding, loading and seating solutions
• Visual aids for better night and rain vision
• Easy-to-use functions even for complicated devices
• Timeless design features
• Speed and special attention recommendation displays
• Side and rear-view cameras
• Customized mobility services

   The cars is also be invented for megacities. In 2015, 40 percent of the world population will live in cities with more than one million residents, 17 percent will live in megacities with more than five million residents. The cruising speed in these cities will average not more than six miles per hour while the typical driver will use his or her car three hours a day. Car design for this environment will take a very different approach from that of current vehicles. Some new focal points will be:

• Easy switching between relaxation and driving positions
• Emphasis on passenger entertainment and information systems
• Automation of stop-and-go traffic situations
• Tinted mirror of passengers from outside viewers
• Protection of passengers from attacks
• Effective smog protection and air conditioning

References
http://www.oliverwyman.com/automotive.htm
http://en.wikipedia.org/wiki/Oliver_Wyman