Management of Technology and Innovation Term Project

18.12.2014
STUDENT NAME: MESUT SARITEMUR
STUDENT ID: 507132003

INNOVATION STRATEGY IN CAR INDUSTRY HYBRID ELECTRIC CARS

Company Name:MSG
Product: G-Car (Hybrid Car Electric/Gasoline)
Company Profile
MSG is a world-leading car manufacturing comapany established in 1952. MSG is based in
Bursa, Turkey and has over100,000 employees. Operating income for 2014 was $6.545
Billion.
Current Automobile Market
Automotive industry is a key industrial sector for a stable economy. Its development has
growing tendency mainly in R&D activities, growing numbers of innovations and strong
focus on scholar research activities. R&D is one of the major characteristic features of
advanced and modern economy, country, innovative orientation and human resources
development. The global recession continues to thwart economic recovery as it is plagued by
high unemployment, weak wage gains, and a tight credit market. These factors put
tremendous restraint on consumer spending. In US analysts predict a V-shaped growth pattern
for the automotive sector globally. Yet, despite market-imposed capacity constraints,
anticipated production is expected to increase from 41 million units in 2020 to 45.5.
Automakers have had to cut costs and redevelop their strategy, the automotive industry
remains a significant contributor to the United States economy and has began to climb back
from the difficult challenges they have faced in recent years. High oil prices caused many
consumers to shift away from high fuel dependent vehicles like SUVs that automakers have
been producing to lighter and more compact cars. Sales dropped dramatically as more and
more people preferred the smaller and more fuel efficient Japanese cars to the more high
powered American ones.
As fuel prices remain high and there is greater concern for the environment, more energy
efficient cars are increasing in demand. Moreover automakers are required to quickly release
more energy efficient vehicles to the market. This increasing popularity for hybrid and electric
cars are going to affect the industry in big ways as it will create a new market for businesses
to cater to these new forms of vehicles. The green movement has hit the automotive industry
as all car manufacturers are focusing their attention on producing more environmentally
friendly and fuel efficient vehicles. Evidence from innovation theory and auto-industry
history suggests that the market share for hybrids is about to accelerate sharply.
What is G-Car?
G- Car can be defined as a vehicle that includes both a petrol or diesel engine and a electric
motor. It basically combines electric motors with internal combustion engines. G-Car offers
better fuel consumption than equivalentconventional cars because the energy normally lost as

Management of Technology and Innovation Term Project

18.12.2014
STUDENT NAME: MESUT SARITEMUR
STUDENT ID: 507132003

heat during braking can be captured and reused to assist the engine and there is scope to plug
hybrid cars into power points at night and recharge the battery from mains electricity, which is
cheaper and has less environmental impact than energy from fossil fuels. The major
disadvantage with hybrid cars is they require complex systems to integrate the engine and the
secondary propulsion system. This complexity has formed the basis of many hybrid car patent
applications.
Market Research
New Trends in Auto Market

more cost conscious,

accelerated deep strucural changes in automotive industry,
emergence of new business models characterized by alliances with players from other
industries to support development of new technologies,
low cost of labour in emerging markets,
sources of new customers, new demands in the global markets, developing supplier
networks
Internet as a sales channel for cars,

Market is divided into;

Rapidly growth in emerging economies BRIC + Malaysia, Argentina, Mexico,

Turkey, Thailand, Iran and Indonesia,
Lower-growth economies about 100 nations,
The mature economies.

Market Conditions

car producers will need to more incorporate suppliers, assemblers, distributors from
around the world into their value chains and design products and processes,
car producers will need to develop speedier innovations, with locally inspired
solutions to local problems,
wider range of customers,
increasing challenges in consumer demand: for information, enviro responsibility,
safety,entertainment, economy,
technology development more intelligent cars,
globalization,integration,collaboration,
multiplex workforce, interdependent ecosystem
increasing demand for customization
cost-intensive R&D work ( luxury demand in emerging markets.

As we see the current market trend and condisionts we can say that success is based on
innovation strategy and innovation management.

Management of Technology and Innovation Term Project

18.12.2014
STUDENT NAME: MESUT SARITEMUR
STUDENT ID: 507132003

What is The Problem in Automobile Secter? Problem Definition

Growing concerns about energy security, climate change and pollution are motivating
governments everywhere to introduce strong measures that favour innovation in clean
technologies such as hybrid cars, renewable green energy. This situation leads big
manufacurers for open innovation in order to improve hybrid technology.
Value Matrix
Value
COST

Less fuel Safe to

cost
drive

Importence by
customer

MSG

Tesla

Toyota

Orgaznization

High
Performanc
e

Good
driving
experienc
e

Long
lasting
batery

Easy to
park

Ford

Honda

Management of Technology and Innovation Term Project

18.12.2014
STUDENT NAME: MESUT SARITEMUR
STUDENT ID: 507132003

Attribute Matrix
Attribute

Benefit

Lower
depreciatio
n

COST

Electric
Motor

Duel
Battery

Light
Materials

Advanced
Aerodynamic
s

Compact

Fuel
efficiency

10

10

Higher retail
value

10

Lower CO2
emmision

10

Quiet at all
speeds

Safer to drive

Subsystem and Technology Options

Attribute

Subsystem

ELECTRC
MOTOR

Fluid Power
Hybrid

BATTERY

Technology Options

Sub-Options

Parallel
Hybrid

Petro-air
Hybrid

Series Hybrid

PetroHydraulic

Single
Battery

Plug-in

Duel Battery

Stand alone

Management of Technology and Innovation Term Project

18.12.2014
STUDENT NAME: MESUT SARITEMUR
STUDENT ID: 507132003

DIFFERANTIAL

Selected Acquisition Method and Innovation Strategy

At this market conditions and trends it is better to apply open innovation and its coupled
process by establishingR&D collaborations with major companies. That way, we can manage
to further develop our innovative technologies. Our innovation strategy will be to apply
product innovation to come up with consistently show superior design, combined with strong
technical leadership, that makes a clear recipe for customer needs.

Radical Product Innovation Open Innovation

Hight R&D Expenses
High unceartinity and High Risk
High Profitability
Innovation Starts from R&D
R&D Manufacturing Marketing Distribution
Social Determenistic School we get information from customer directly and apply
open innovation.