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Organizationa l Structure & Culture 9-1 Project Submission Lexi Hebert September 3, 2023 12/18/2023 Sample Footer Text 1

BUSINESS PROBLEM: • OPTION A INNOVATIONS :  total electronic automobile  autonomous driving • OPTION B INNOVATIONS:  more efficient engines  advanced safety features DISCONTINUOU S INNOVATION OR INCREMENTA L INNOVATION?

OPTION A OVERVIEW: • POTENTIAL RISKS  high cost of development  consumers hesitant to adopt new technology or have concerns about safety or reliability • POTENTIAL BENEFITS  disrupt the automotive  significantly reduces our dependance on oil and gas RISKS & BENEFIT S DISCONTINUOUS INNOVATION

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OPTION B OVERVIEW: • POTENTIAL RISKS  not enough to stay competitive/missed opportunities  new features will increase complexity which will increase cost and development cycles  too reliant on a single product line • POTENTIAL BENEFITS  creates a more integrated product line  more efficient engines to promote environment  enhance the overall safety of product  increased customer loyalty and trust RISKS & BENEFITS INCREMENTAL INNOVATION

COMPETITOR: BMW • CURRENT CONNECTED SERVICES  navigation  emergency services  smart house connectivity CURRENT PRODUCTS & SERVICES CURRENTLY EXPANDING IN THE MARKET? • 5-10 YEAR PRODUCT PLANS  fully integrated information system  semi-autonomous driving  connection to traffic info systems  introduction of fully autonomous driving (early 2030s)

COMPETITOR: TOYOTA • CURRENT CONNECTED SERVICES  navigation  emergency services  social media CURRENT PRODUCTS & SERVICES CURRENTLY EXPANDING IN THE MARKET? • 5-10 YEAR PRODUCT PLANS  fully integrated information system  semi-autonomous driving  connection to traffic info systems  expanded social media & communications  consumer services  maintenance  fully autonomous driving (2030s)

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COMPETITOR: VW • CURRENT CONNECTED SERVICES  navigation  emergency services  consumer orders  maintenance status CURRENT PRODUCTS & SERVICES CURRENTLY EXPANDING IN THE MARKET? • 5-10 YEAR PRODUCT PLANS  fully integrated information system  semi-autonomous driving  connection to traffic info systems  connectivity with smart home  introduction of fully autonomous driving (early 2030s)

CAPABILITY TO PURSUE Option A: WILL NEED TO PURCHASE IT! Option B: WE OWN IT! DO WE OWN THE TECH NEEDED OR DO WE NEED TO PURCHASE IT? HOW’S THE TECH BEING USED IN TODAY’S PRODUCTS & SERVICES? Option A: Do not currently own tech to create a fully electronic car nor autonomous driving Option B: Sensors & computers already in our products for navigation, emergency services, and service status

CAPABILITY TO PURSUE Technologies Needed:  different types of sensors  cameras  radar  sonar  lidar  artificial intelligence algorithms WHAT TYPE OF TECH IS AVAILABLE TO PURCHASE? OPEN-SOURCE DATA, DATA ANNOTATIONS FOR IMPROVED AI, REMOTE GUIDANCE

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RECOMMENDATION OPTION B: INCREMENTAL INNOVATION  make small improvements or modifications to our existing products or processes  more efficient engine and advanced safety options  R&D: efficient use of our resources and minimal risk  marketing: intro of new features/improvements to our existing products (increases customer satisfaction and loyalty)  finance: cost savings and increased profitability OPTION B!

RECOMMENDATION 1 2 3 4 5 6 7 8 9 10 11 0 5 10 15 20 25 30 35 40 45 Option B Gross Margin Forcast Data Gross Margin Traditional Gross Margin Connected 1 2 3 4 5 6 7 8 9 10 11 0 50 100 150 200 250 300 Option B Sales Forcast Data Sales Traditional Sales Connected

SOURCES Scott, M. (2019, June 10). Electric Models To Dominate Car Sales By 2040, Wiping Out 13m Barrels A Day Of Oil Demand . Forbes. Retrieved July 22, 2023, from https://www.forbes.com/sites/mikescott/2019/06/10/electric-models-to-dominate-car-sales-by-2040-wip ing-out-13m-barrels-a-day-of-oil-demand/?sh=3e128f71342e (2014, February 1). Avoiding crashes with self-driving cars . Consumer Reports. Retrieved July 22, 2023, from https://www.consumerreports.org/cro/magazine/2014/04/the-road-to-self-driving-cars/index.htm (2022, December 5). Balancing Incremental & Radical Innovation . Stormboard. Retrieved July 22, 2023, from https://stormboard.com/blog/balancing-incremental-and-radical-innovation (2020, July 16). Car infotainment explained: What is BMW ConnectedDrive and how does it work? Gearbrain. Retrieved July 22, 2023, from https://www.gearbrain.com/bmw-connecteddrive- infotainment-explained-2646418230.html

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SOURCES Dinsmore, J. (2022, January 22). Toyota Connected Service: Breaking down what $8 to $32 per month gets you . Pickup Truck Talk. Retrieved July 22, 2023, from https://pickuptrucktalk.com/2022/01/toyota-connected-service-breaking-down-what-8-to -32-per-month-gets-you/ Winton, N. (2022, March 22). BMW Profits Look Strong Despite Forecast Cut, While Electric Plans Still Questioned . Forbes. Retrieved July 22, 2023, from https://www.forbes.com/sites/neilwinton/2022/03/22/bmw-profits-look-strong-despite-for ecast-cut-while-electric-plans-still-questioned/?sh=5d7f502d1dcb Zukowski, D. (2022, May 11). These 3 technologies could make self-driving cars safer . SmartCitiesDive. Retrieved July 23, 2023, from https://www.smartcitiesdive.com/news/av-technologies-self-driving-car-safety/623471/

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