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A PROJECT REPORT ON “Inventing or innovation is better in Automobile”

Submitted to Mr. V.K Srivatsav (Academic Coordinator) Date: 14/08/09

Submitted by Koteswara Rao .V MBA/08/67

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CERTIFICATE
This is to certify the project work entitled “Inventing or innovation is better in Automobile “has been successfully carried out by Mr .Koteswara Rao. V of MBA III Trimester,

Place: Date

(Signature) Rohit C Kalaskar

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DECLARATION

I Mr. Koteswara Rao .V student of MBA III trimester HET’s Institute of management studies , Hubli thank my institution for giving me an opportunity to undergo my project work.

I hereby conform that this project report on “Inventing or innovation is better automobile” has been undertaken by me during the said period as a part of my academic curriculum. I further declare that this project report is the result of my own efforts and has not been submitted earlier to any other college for any other degree.

PLACE: HUBLI Date: 14/0809

Koteswara Rao.V

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ACKNOWLEDGEMENT

It is my great privilege to express my sincere thanks to Institute of Management Studies Hubli for providing us with all facilities to do this project. Who energized us with encouragement and inspiration in the completion of the project work? I am very much grateful to Mr. Rohit C Kalaskar who is in charge for this project and his excellence guidance encouragement and timely suggestions, while rising out work this project successfully.

Koteswara Rao. V

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Index
Chapter 1 1. Introduction &Design of the study 2. Statement of the study 3. Objectives of the study 4. Need for the study 5. Methodology a. size of the sample b. sampling design c. sampling technique 6. Data collection 7. Hypothesis 8. geographical area of study 9. Data analysis 10. Limitations Chapter 2 An over view of the study Chapter 3 Opinion of the study Chapter 4 Findings and conclusion

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CHAPTER-1 Executive summary
Invention is discovering something new or novel. Innovation is taking that invention and making it into a commercially viable product/service/business Invention is only a subset of innovation that’s generally science-based research or focused on product design and results in patentable inventions. National employment, power, wealth, and well-being depend more on the deployment of innovations than on the invention itself. The primary challenges associated with innovation process management include difficulty identifying and investing in the best ideas for the correct market with the right resources, a lack of coordination, and challenges measuring innovation. Organizations often do not have structured innovation processes in place to drive transparency, metrics development, or cross-functional collaboration. The problem definition of this project is to justify inventions or innovation is better in automobile sector The main objective of this project is to justify innovation is better in automobile and other objectives are to know why some innovations fail in the market and what factors makes the customers to accept innovations in automobile. Primary data have been collected from survey and the secondary data have been collected from internet. I have used SPSS software to analyze the data what i collected from the survey. Innovations fail because OEMs and suppliers know too little about customer requirements and do not pay adequate attention to innovation marketing. Innovation very important in automobile, without innovation automobile cannot move further. Indian automobile industry is developing with a tremendous speed. The automobile sector in India has the ability to win and retain customers through innovative product designing, adopting a digital environment and developing product strategies and initiatives. This is possible by taking into account criteria such as usability and experience, adding value to products and trying to reduce design constraints in a maximum possible way. 74% of the INSTITUTE OF MANAGEMENT STUDIES

respondents said that security & safety makes to accept innovation.72% of the respondents said that comfort makes to accept innovation .54%of the respondents said that performance &dynamics makes to accept innovation.64%of the respondents are said that flexibility &space makes to accept innovations. 50% of the respondents said that simplicity makes to accept innovations. 40% of the respondents said that emission makes to accept innovation. 70% of the respondents said that cost makes to accept innovation. 56% of the respondents said that design and feel makes to accept innovation.

Introduction:
Invention is discovering something new or novel. Innovation is taking that invention and making it into a commercially viable product/service/business. The automobile industry in India the tenth largest in the world with an annual production of approximately 2 million units is expected to become one of the major global automotive industries in the coming years. A number of domestic companies produce automobiles in India and the growing presence of multinational investment, too, has led to an increase in overall growth. Innovations are essential for automobile industry, the automobile sector in India has the ability to win and retain customers through innovative product designing, adopting a digital environment and developing product strategies and initiatives. This is possible by taking into account criteria such as usability and experience, adding value to products and trying to reduce design constraints in a maximum possible way. Our intelligent transformation strategy creates the effective combination of people and technology, which all other innovation approaches depend upon. We successfully implement changes in vehicle electronics systems and software with our Automotive Electronics approach, while our Enterprise Value Networks approach masters challenges posed by collaboration between producers and suppliers. Our customers implement crosssector product development with the help of Engineering Collaboration. Whatever the future brings, with us you stay one step ahead of the competition. Inventions and innovations both are important in automobile.

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Design of the study
The design of the study determines the steps to be followed to conduct the study and the important topics, which are to be covered in the study. This research is carried out as per the steps of market research process. To meet the objectives primary research is undertaken. A detailed design of the study is considered necessary in order to compare the actual theory with that observed in picture.

Statement of the problem:
The statement of the problem is to justify Inventing or innovation is better in Automobile

Objectives
1. To justify invention or innovation is better in automobile 2. To know what factors makes the customers to accept innovations in automobile 3. To know why innovations fail in the eye of customers

Needs of the study:
• • • • By doing this research we will get market exposure along with knowledge This market exposure will be helpful to know how we have to work for an organization in the present market scenario. This project will give an idea to know how we have to do the projects for organizations. This project makes me able to know the importance of the innovations in automobile

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Methodology:
Primary data have been collected from the survey and the secondary have been collected from the internet I have been collected the primary data by using questionnaire as a tool

Size of the sample
Hear the size of sample is consider with the how many customers do approach the sample size is (60)

Sampling design
For this project, I met the respondents who are having their own

Sampling techniques
Here I used two types of sampling techniques for data collection and analysis of the data Exploratory method Descriptive method

Data collection
Survey Method, which consisted of distributing questionnaire to the respondents who are having own car and asking them to fill the form. Secondary data collected from internet were used. Measurement technique: Distribution of Questionnaires and analyzing has done by using SPSS software

Geographical Area
This geographical area is concerned to the where I conducted serve to analyze which is the best-medicated brand in the twin city’s. I conducted survey in Hubli city, areas like Gokul road, CBT, Navanagar, Sirur park circle and some automobile show rooms in Hubli

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Data analysis
Here I used SPSS software to analyze the data what I collected from the respondents . What factors makes you to accept the innovations in automobile
Is security & safety makes to accept innovation Frequency Percent Valid it does it does not neutral Total 37 5 8 50 74.0 10.0 16.0 100.0

Valid Cumulativ Percent e Percent 74.0 74.0 10.0 84.0 16.0 100.0 100.0

Is security&safty makes to accept innovation
nuetral it does not

it does

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Is comfort makes to accept innovation Frequency Percent Valid it does it does not neutral Total 36 7 7 50 72.0 14.0 14.0 100.0

Valid Cumulativ Percent e Percent 72.0 72.0 14.0 86.0 14.0 100.0 100.0

Is comfort makes to accept innovation
nuetral it does not

it does

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Is performance & dynamics makes to accept innovation Frequency Percent Valid Cumulativ Percent e Percent Valid it does 28 56.0 56.0 56.0 it does not 10 20.0 20.0 76.0 neutral 12 24.0 24.0 100.0 Total 50 100.0 100.0

Is performance&dynamics makes to accept innovation
nuetral

it does

it does not

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Is flexibility & space makes to accept innovation Frequency Percent Valid it does it does not neutral Total 32 9 9 50 64.0 18.0 18.0 100.0

Valid Cumulativ Percent e Percent 64.0 64.0 18.0 82.0 18.0 100.0 100.0

Is flexibility&space makes to accept innovation
neutral

it does not it does

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Is design & feel makes to accept innovation Frequency Percent Valid it does it does not neutral Total 28 7 15 50 56.0 14.0 30.0 100.0

Valid Cumulativ Percent e Percent 56.0 56.0 14.0 70.0 30.0 100.0 100.0

Is design&fell makes to accept innovation
nuetral

it does

it does not

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Is simplicity makes to accept innovation Frequency Percent Valid it does it does not neutral Total 25 10 15 50 50.0 20.0 30.0 100.0

Valid Cumulativ Percent e Percent 50.0 50.0 20.0 70.0 30.0 100.0 100.0

Is simplicity makes toaccept innovation
nuetral

it does

it does not

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Is emmisi on makes to accept innovation Frequency Percent Valid it does it does not neutral Total 20 14 16 50 40.0 28.0 32.0 100.0

Valid Cumulativ Percent e Percent 40.0 40.0 28.0 68.0 32.0 100.0 100.0

Is emmisi on makes to accept innovation

nuetal it does

it does not

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Is cost makes to accept innovation Frequency Valid it does it does not neutral Total 35 3 12 50

Percent 70.0 6.0 24.0 100.0

Valid Cumulativ Percent e Percent 70.0 70.0 6.0 76.0 24.0 100.0 100.0

Is cost makes to accept innovation
nuetral

it does not

it does

Limitations
1. The main limitation of this project is to get all the data from the internet 2. The respondents were not having adequate knowledge about innovations and inventions

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CHAPTER 2 Overview
Invention is discovering something new or novel. Innovation is taking that invention and making it into a commercially viable product/service/business. Innovations are the fuel of the automotive industry. They serve to differentiate brands, adapt cars to changing customer preferences, provide answers to global challenges and so ensure the continued success of the industry. In the face of ever stricter emissions limits and increasingly scarce commodities, the entire concept of individual mobility is at risk. It will take innovative and affordable technologies, especially with regard to drive systems and materials, to realize the full growth potential of 100 million motor vehicles by the year 2020. The primary challenges associated with innovation process management include difficulty identifying and investing in the best ideas for the correct market with the right resources, a lack of coordination, and challenges measuring innovation. Organizations often do not have structured innovation processes in place to drive transparency, metrics development, or cross-functional collaboration. A closer look at R&D spending by both OEMs and suppliers shows that around 40 percent of all investments go into innovations that never make it into the car or are never produced in sufficient numbers due to a lack of market acceptance. Of the remaining 60 percent, 20 percent is for necessary serial development. Another 20 percent is for innovations that fulfill legal requirements but do not add to a product’s distinctiveness. Usually, these innovations do not pay off either. That leaves only a small remainder of 20 percent that represents profitable innovation investment. And more and more technologies are fiercely fighting over this sweet spot.

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Only around ten percent of the automotive technologies under development at the moment have the potential to become blockbuster innovations. These technologies combine the two most relevant categories: The first category, market potential, consists of functional purpose, customer acceptance, regulation compliance and price level. The other category, a high degree of innovation, creates technological differentiation in the market, better intellectual property protection, high margins and a long harvest period. Automotive companies must increasingly focus their innovation efforts on a very limited number of promising projects. In order not to place their bets blindly, they have to carefully assess the potential and risks of the technologies they want to explore and regularly reassess them. Existing technologies, as well as technologies under development, always face the possibility of being pushed aside by alternative developments. In order to assess the technological and market potential of a given technology, its respective car module must be analyzed in terms of the key technologies being used, current trends and future innovations. The chances and risks of a given technology are also influenced by the different market structures, competitors and business models in each segment. Innovation cycles are constantly shortening while development costs are rising due to the higher complexity. All too often innovations fail because OEMs and suppliers know too little about customer requirements and do not pay adequate attention to innovation marketing. Only about one out of six innovations offered is actually purchased. Different customer groups have different perceptions of the benefits of automotive innovations. To a large extent, the success of innovative features also depends on regional differences: Asian car buyers, for example, are much more interested in infotainment electronics than their American counterparts. Most car buyers have only a limited budget for optional equipment, but their price sensitivity is largely unknown to OEMs. The customers’ limitations and differences in knowledge, desire and budget lead to a very low order rate

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for new car features. Once a new function has been bought, however, customers are very content with it.

In the future, OEMs and suppliers must test the chances for success of their innovations much more thoroughly. They need to know in advance what innovations are desirable to which groups of customers of which brand. And they need to develop models that explain which innovation can succeed against which traditional function within the total features portfolio. In industrialized countries, the price of the average new car has risen by 100 percent over the past 20 years while average income has increased only by 50 percent – and the gap between new car prices and incomes has continued to grow from year to year. The reason for this development is the increasing technological complexity that drives development and manufacturing costs, and the growing number of functions needed to differentiate the brands. This trend cannot continue much longer. Otherwise, customers could go back to smaller cars, a development that is not in the interest of the industry. Therefore, cost innovation is a central goal in the automotive industry, just as important as the traditional differentiation of functional innovations is. The heads of R&D at OEMs and suppliers have already embraced this new imperative. But it is difficult to change an innovation culture in an industry that is fascinated with functional enrichment. The solution to cost-saving lies in a series of issues that the automotive industry must tackle simultaneously: The use of new and more cost-efficient materials needs to be explored in order to cut material and processing costs. Flexible manufacturing concepts will enable utilization of assembly plants to be improved. Future software will have to work in several models. Intelligently devised bundles of optional extras can reduce the number of possible configurations and eliminate expensive complexity from manufacturing processes.

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At the same time, development costs must be lowered. All big automotive companies have launched R&D off shoring initiatives to lower engineering costs and help fuel localized development. Module approaches will reduce R&D costs per unit and enable companies to cope with a larger variety and shorter cycles of models. New design and test-bed software will also help lower the real-world costs of developing automotive components. These are just a few examples of the many initiatives needed to keep cars affordable for the broad public. Cost innovations and lower R&D costs will play a crucial. The first step for R&D optimization is to evaluate the future market potential of all ongoing innovation projects, to define the threats they face from other technologies in the same area and to model price scenarios. If other technologies are needed as helping or enabling technologies, will they be available and what is their market potential? For example, a battery management system for fuel-cell and electric cars needs available technologies in place to have a market. Which regional markets will be likely to embrace the technology?

The success factors of innovations are follows Technological vision: Top performers constantly scan their environment for long term trends in the market and in technologies. They develop a long-term innovation vision and stick to it, no matter what the short-term trends are. Customer knowledge: Understanding customer preferences enables companies to better focus their innovation efforts on relevant issues. Customer research needs both a regional and a socio-demographic approach to be of value.

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Strategy match: Successful OEMs and suppliers match their R&D strategies at a very early stage, and very closely with the respective target OEM or supplier partner. This is especially true when the car architecture is affected, i.e. with module innovations The following companies are top 10 Indian automobile companies who are having no. of innovations in their carrier. Competence focus: The best innovators closely match their R&D competencies with their R&D strategy. OEMs and bigger suppliers with a diversified product range must continuously recalibrate their competencies to their strategic R&D targets. Strategic partners: With their increasing complexity, R&D networks are becoming a crucial success factor. Currently, it is mostly OEMs that are forming such networks. In the future, supplier-supplier and supplier-institution collaborations will increase Investment focus: R&D funding must be independent of current business needs. In the past, short-term changes in the R&D focus have often led to long-term problems. Catching up with past R&D cuts has often proven to be extremely expensive. Trend focus: Relying on mega trends contributes significantly to the soundness of R&D investments, as these trends are highly predictable. Interpreting these trends in terms of a company’s own business model is a main conceptual challenge for automotive companies. Cost focus: Leaders in innovation always have a strong cost focus, with respect to R&D efficiency and effectiveness. Regardless whether it is a single component or an entire car, the reduction of unit costs is the center of their innovation efforts. Outside-in strategy: Top performers concentrate on innovations that the market needs and end low-value projects early. Processes that strengthen this ability are

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a common understanding of innovation aims within the company and a standard quality process.

People involvement: Companies that involve people from all levels in their R&D are much more successful innovators. The keys to employee involvement are easy and motivating communications, low hurdles for submission of ideas, and efficient and transparent filters for the incoming ideas. The top automobile companies in India are 1. TATA motors Ltd 2. Bajaj Auto Ltd 3. Maruti Udyog 4. Toyota kirloskar 5. Ashok Leyland 6. Mahindra Group 7. Hero motors 8. Hyundai Motors 9. Yamaha Motors 10. Honda Siel cars Ltd

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CHAPTER-3 Opinion of the study
Inventions and innovations, both are essential in automobile sector. Automotive companies must increasingly focus their innovation efforts on a very limited number of promising projects. In order not to place their bets blindly, they have to carefully assess the potential and risks of the technologies they want to explore and regularly reassess them. Innovations are getting fail because OEMs and suppliers know too little about customer requirements and do not pay adequate attention to innovation marketing. Some successful factors made the customer to accept innovations in automobile sector.

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CHAPTER-4

Findings
Innovations fail because OEMs and suppliers know too little about customer requirements and do not pay adequate attention to innovation marketing. 74% of the respondents said that security & safety makes to accept innovation.72% of the respondents said that comfort makes to accept innovation .54%of the respondents said that performance &dynamics makes to accept innovation.64%of the respondents are said that flexibility &space makes to accept innovations. 50% of the respondents said that simplicity makes to accept innovations. 40% of the respondents said that emission makes to accept innovation. 70% of the respondents said that cost makes to accept innovation. 56% of the respondents said that design and feel makes to accept innovation. Invention and innovation, both are interrelated to each other. Invention is discovering something new or novel. Innovation is taking that invention and making it into a commercially viable product/service/business. Without inventions and innovation, the automobile industry can not develop further.

Suggestions

 Increase customer orientation and marketing focus on R&D  Generate a diverse innovation product & services portfolio  Improve R&D effectiveness and efficiency; reduce innovation risks

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 Enhance the innovation culture and organization

Conclusion
Inventions and innovations, both are essential in automobile sector. Automotive companies must increasingly focus their innovation efforts on a very limited number of promising projects. In order not to place their bets blindly, they have to carefully assess the potential and risks of the technologies they want to explore and regularly reassess them. Innovations are getting fail because OEMs and suppliers know too little about customer requirements and do not pay adequate attention to innovation marketing. They are not concentrating on the customer requirements. They need to put concentrate on the customer requirements. Some important factors makes the customers to accept the innovation. All too often innovations fail because OEMs and suppliers know too little about customer requirements and do not pay adequate attention to innovation marketing. Only about one out of six innovations offered is actually purchased.

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Questionnaire

1} Name 2} Gender 3} Occupations 4} Contact no

: _________________________________________ : a) Male [ ] b) Female [ ]

: a) Business man b) Government Employee c) private employee d) Student : _________________________________________

1. What factors makes you to accept the innovations in automobile Factors Safety & Security Comfort Performance& Dynamics Flexibility& Space Design & feel Simplicity Emissions Cost It does It does not neutral

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