Innovation Management in the Automotive Design & Manufacturing Industry

ABSTRACT The car industry has constantly provided us the consumer with a wide range of choices and varieties to suit our needs, but with the vast amount of competition how do car manufacturers attract our attention. Unique designs, impressive technology, price and customer service are all the areas consumers look for in a car, to meet these demands car manufactures need to constantly come up with new ideas to stay ahead of other competitors, introducing creative ideas which are better than what was in use previously is innovation. Innovation can also be implemented internally as it can help manufacturers be more efficient and reduce costs before products are released. Depending on resources and stature, each manufacturer will manage innovation differently, this project will outline how different manufactures manage innovation analysing each approach. To manage innovation manufactures need to identify and analyse the risks involved, this report will identify the risks involved and preventative measures manufactures will take to reduce risk. This project looked at global trends in the automotive industry and outlined why innovation is so important. Literature research on innovation was undertaken to give a better understanding on innovation and outlining the different types. Innovation risks were looked at covering the major factors involved when a manufacturer makes the choice to innovate. This was followed by looking at different types of risk management techniques and how they aid manufacturers when making decisions. Case studies were analysed showing how innovation plays a major role in business operation and how it was managed by two of the main car manufacturers in the world. Innovation plays a major part in the car design and manufacturing industry and cannot be ignored as it can have a major impact on a manufactures performance so it is important to identify an effective approach to innovation management. This project has shown the importance of