Innovation Essay Example

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The selected type of innovation is smart car modernization. It is a form of technology innovation that evolved from the emergence of knowledge in the automotive manufacturing industry. The technological innovation involves the application of knowledge and experience from research to come up with an improved product or service (Diaconu 2011, p.131). The smart car novelty evolved after the Smartphone to give customers a different experience. Smart car improvement enables the driver to connect to the entire car system, access maps, weather, GPS, streaming music, and many other applications. Many of the car manufacturers are using the smart car innovation to bring a difference experience and taste of driving for vehicle owners and drivers (Tomar 2014, p.1).

The smart car innovation unveils new digital services as well as self-directed driving features. The car is connected and designed to access directly the internet, enable automated links to other objects that are linked such as traffic lights, other motor vehicles, tracking devices, and Smartphones. Companies like Volkswagen and Daimler have used and still using the smart car innovation in making new and improved cars in the automobile industry. According to the Price Water House Coopers (2015, p.4), these two companies were the leaders in the smart car innovation in the use of information and entertainment systems as well as the inclusion of safety assistance technology in their new vehicles. These changes helped the companies achieve increased sales as a result of the connected car technologies and hope a similar increasing trend will triple up to the year 2021.

Types of Smart Car Innovations

Many smart car innovations are available in the market, and automobile industries use them in attracting more customers for their business. They also intend to give car owners affordable, cost efficient and easily manageable cars for the 21st century. The following smart car innovations are in use in the automobile industry.

The Android Auto is a telematics software launched by Google in the year 2014 for connecting to the car dashboard for the purpose of providing infotainment. The smart car app has the capacity of helping the driver to access maps, weather, streaming music as well as GPS among other applications (Tomar 2014, p.1). Car makers such as Jeep, Volvo, and Chevrolet among others are using the Android Auto in their cars.

The CarPlay Sofware is another type of smart car innovation used by automobile companies today when making new cars. This software enables devices that run on the iOS operating system to work with display units of car dashboards that are built-in. Vehicle manufacturers like Honda, Daimler, BMW and Hyundai have CarPlay installed in their automobiles.

V2V Communications (Appendix 1) is a proposed smart car innovation that will enable light vehicles to use a vehicle to vehicle communication technology. Cars can talk to each other and avoid many accidents or crashes (Gorges 2015, p.1). It is attainable by enabling the cars to exchange necessary safety data ten times per second for improving safety. Vehicles will be able to share data like speed and position. It is an innovation that uses ‘ad hoc network’ that enables free association of cars available in the network as well as sharing of equal status.

The pre-collision technology (Appendix 1) is also a smart car innovation that uses technology to enable the driver to detect a pedestrian. It aims at assisting the driver in identifying blind spots and alert when not paying attention to the road.

Significant Milestones for the Smart Car Innovation (Appendix 2)

The smart car innovation has undergone a process of evolution from the early 1900s to the current years in 2010s (O’brien 2015, p.1). 1908, T Model of a car was the technological starting point for the smart car. The Model acted as a basis for new ideas for future vehicle developers to enhance. In 1911, a self-starter ignition solved the problem of cumbersome cranks initially used in firing the engine. A new technological feature of a cigarette lighter came in 1925. It allowed motorists to light their cigars in the car while seated. In 1929, the introduction of four-wheel brakes would help in stopping cars safely. The innovation was followed by the invention of the car radio in 1930. It allowed motorists to receive broadcasts in the comfort of their vehicle. The design of the coil spring suspension in 1934 was made to improve safety and lives of people from the rough road conditions. 1949 saw the creation of the first flying car. The innovation involved an Aerocar that never took off. The power steering in 1956 was an invention that helped drivers make turns with the aid of hydraulics.

The innovation of the auto cassette, the eight track, was made in 1965 (Schmucker 2015, p.1). Motorists would listen to an improved music system while driving their cars. 1969 saw the creation of the speed automatic transmission that did away with the use of whale oil in the transmission fluid. The innovation of cassette decks in 1970 allowed car drivers mix tapes while driving. The catalytic converter in 1973 enabled those on board to breathe clean air. The electronic fuel injection invented in 1982 was an efficient innovation that used sensors and microprocessors for mixing air and fuel in the engine. The use of airbags in 1984 brought a new experience for car users who would be safer in the event of an accident. Car users would now enjoy the innovation of CDs that replaced cassettes in 1985. In 1994, the creation of onboard diagnostics with a 16-pin connector would enable mechanics to detect problems under the dash (Zack 2011, p.1). The introduction of navigation systems in 1995 acted as a reliable GPS for drivers. In 2000, the automotive evolution saw the invention of hybrid electric vehicles that would use a different form of fuel (Rodr guez, & Paredes 2015, p.11). As from 2000 to 2010 onwards, the automobile industry saw the initiation of connected and smart cars with the computing power of 20 PCs.

How Smart Car innovation has affected organizations management approach

Smart innovation has changed the organization’s management approach in different ways. Managers in organizations are now taking the initiative of developing software algorithms required in handling complex situations in driving. For example, companies dealing with automated commercial fleets are considering the inclusion of parcel delivery vehicles as well automated drones to manage the fleets (Bertoncello & Wee 2015, p.1).

Car automakers (OEMs) have changed their strategic decisions for introducing their offering of autonomous vehicles in the market. Porter & Heppelmann (2015, p.1) says that automation of Smart companies is transforming competition and forcing managers to rethink their strategies. For example, to manage their vehicle offerings in the market, automobile companies are now adopting the strategies of premium incumbents, attackers, fast followers, late entrants or non-adopters.

Car insurance companies are now changing their insurance policies to fit the new automated smart car models. To effectively manage their businesses, car insurers are changing their business models to cover manufacturers for car liabilities occurring as a result of technical and automation failure. According to Wayman (2015, p.1), depending on the original business model, car makers should require fast identification of their relevant value buckets to enable them to offset their costs in R&D. Making timely partnerships guarantees these organizations a competitive advantage in the market.

The management of supply chains of automobile companies has also changed to fit the new and evolving smart car innovations. For example, to effectively manage their supply chains, car manufacturers are now optimizing the supply chains through automation for the purpose of increasing flexibility and efficiency (Bertonncello & Wee 2015, p.1). The management in OEMs organizations is expanding the value proposition to go beyond their current control to include internet interconnectivity, energy, maintenance services, road charging, traffic lights among other services in the smart car innovation (Boagey 2015, p.1).

Recommend 3 future developments of this innovation for organizations based on the research

Based on the research, smart cars with the capability of communicating with each other on the road have been implemented. Others with smart fuel saving features and driverless vehicles have been manufactured. In the future innovation of smart car innovation, it is recommended that the future developments emphasize of enhanced gesture control, the inclusion of an augmented reality head-up display and smart cars with Apps and Firmware updates.

Smart cars with enhanced gesture control will provide drivers with unprecedented ease when controlling the vehicle functions (Harmony Motor Works 2015, p.17). Having a Multi Media Interface system in cars will enhance these features. Drivers will be able to input characters to command the vehicle of any service using the finger on the designated touchpad. It is an innovation that will ease navigation, select music and support different languages.

The augmented reality head-up display is a future advancement that will serve as add additional functionality on the car windscreen. It is an improvement safety innovation that will enable drivers to see the information such as navigation details, the name of an incoming call as well as the speed on the windscreen. Fitting the windscreen with minimalistic designs will improve the augmented reality head-up display (Voo 2016, p.1). It will help drivers minimize accidents by keeping their eyes on the road without the need for looking at the center console display of the car.

The future smart cars should have Apps and Firmware updates that will enable drivers to run apps while driving. Such Apps and Firmware updates will quickly provide drivers with information about the local malls, restaurants among other places of interest in the location. Staszewski & Esti (2013, p.1) says that these innovations through new electronic and technological functions will enhance the needed support for car safety and improved smart experience in the smart car innovation.


Bertoncello, M., & Wee, D, 2015, Ten ways autonomous driving could redefine the automotive world,McKinsey & Company.

Boagey, R, 2015, Smart cars: driving innovation beyond the confines of manufacturing, OEMs and Markets, Available from <>

Diaconu, M, 2011, Technological Innovation: Concept, Process, Typology and Implications in the Economy, Theoretical and Applied Economics, Vol.53, No. 10(563), pp. 127-144.

Gorges, M, 2015, Vehicle-to-vehicle communication is promising a massive shift in making driving safer, A new kind of smart car, Available at <>

Harmony Motor Works, 2015, Smart Cars Equipped With Futuristic & Practical Features, Technology, Available at <

O’Brien, J, 2015, Tech Time Machine: Car Tech, Mashable, Available at:

Porter, M., & Heppelmann, J, 2015, How Smart, Connected Products Are Transforming Companies, Harvard Business Review.

PWC, 2015, Racing ahead with autonomous cars and digital innovation, Connected Car Study 2015.

Rodr guez, M, &Paredes, F, 2015, Technological Landscape and Collaborations in Hybrid Vehicles Industry, Innovation and Economy, Vol. 9. No 2, pp. 6–21.

Schmucker, K, 2015,From Innovation to Laughable Derelict: 8-Track Tapes, Harvey County Historical Museum, Available from <>

Staszewski, R., & Esti, H, 2013, Making cars safer through technology innovation, White Paper, Texas Instruments.

Tomar, D, 2014, Top 10 Innovations in Automobile Industry in 2014, Auto Technology, The Economic Times, Available from < >

Voo, B, 2016, 9 Smart Car Technologies We Want To See (A Geek’s Wishlist), Technology Design Inspiration, Available from <>

Wayman, O, 2015, Trends, Opportunities, And Solutions Along The Entire Value Chain Cover Story: The True Value Of Autonomous Driving, Automotive Manager, Available from < >

Zack, S, 2011, Driveability Diagnostics, OBD I & II, SPX Technical Trainer and Chuck Eaves, Available from < >


Appendix 1: Types of Smart care innovations

V2V Communications


Pre-Collision Technology

innovation  1

Appendix 2: Important Milestones for the Smart Car Innovation


Milestone in Innovation

Electric Starters

Cigarette Lighter

Four wheel brakes

Car radio

Coil spring suspension

Up, Up (and Away)/Aerocar

Power steering

Speed automatic transmission

Cassette decks

Catalytic Converter

Electronic Fuel Injection

In-Dash Disc Players

On-Board Diagnostics

Navigation Systems

Hybrid Cars


Connected and ‘Smart’ Cars