2-1 Presentation: Discontinuous or Incremental Innovation
Nick Roy
MBA-580-Q2734 Innovation and Strategy in High-Perform Organizations 23TW2
Professor David DeStefano
Southern New Hampshire University
January 17, 2024 As a middle manager at one of the leading automobile producers in the US, I have been tasked with exploring the importance of innovation in today's rapidly changing automotive landscape. The company I work for has recognized the need to adapt to a volatile and uncertain world by incorporating IoT technology into our vehicles. As we consider the best approach to innovation, whether it be through incremental improvements or completely new breakthroughs, I
have been asked to create a presentation that analyzes the various dimensions of innovation. This
presentation will provide insight into the potential options for our organization and the technological path we could pursue. Types of Innovation
Innovation is a critical driver of success in the highly competitive automobile manufacturing industry. However, innovation is not a cookie cutter approach. Automobile manufacturers such as ours can innovate in two ways - system innovation and component innovation. Both types of innovation have the potential to yield groundbreaking results, but understanding the difference between the two is essential for delivering a transformative, sustainable, and profitable innovation strategy for automobile manufacturers. What is Component Innovation?
Component innovation seeks to improve a single element of the automobile. For example, our company might introduce a new engine technology or change the design of the roof
or the seating arrangements. Component innovation is typically a more straightforward approach to innovation, as it allows manufacturers to focus exclusively on improving specific elements of an automobile. Automobile manufacturers in general traditionally use component innovation to make incremental improvements to their products without changing the entire system.
Nick Roy
MBA-580-Q2734 Innovation and Strategy in High-Perform Organizations 23TW2
Professor David DeStefano
Southern New Hampshire University
January 17, 2024 As a middle manager at one of the leading automobile producers in the US, I have been tasked with exploring the importance of innovation in today's rapidly changing automotive landscape. The company I work for has recognized the need to adapt to a volatile and uncertain world by incorporating IoT technology into our vehicles. As we consider the best approach to innovation, whether it be through incremental improvements or completely new breakthroughs, I
have been asked to create a presentation that analyzes the various dimensions of innovation. This
presentation will provide insight into the potential options for our organization and the technological path we could pursue. Types of Innovation
Innovation is a critical driver of success in the highly competitive automobile manufacturing industry. However, innovation is not a cookie cutter approach. Automobile manufacturers such as ours can innovate in two ways - system innovation and component innovation. Both types of innovation have the potential to yield groundbreaking results, but understanding the difference between the two is essential for delivering a transformative, sustainable, and profitable innovation strategy for automobile manufacturers. What is Component Innovation?
Component innovation seeks to improve a single element of the automobile. For example, our company might introduce a new engine technology or change the design of the roof
or the seating arrangements. Component innovation is typically a more straightforward approach to innovation, as it allows manufacturers to focus exclusively on improving specific elements of an automobile. Automobile manufacturers in general traditionally use component innovation to make incremental improvements to their products without changing the entire system.
