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Overview
Using the recommendation that you provided in Milestone One, you will develop a strategy to implement the innovation and get ahead in the marketplace.
Scenario
You work as a middle manager for one of the top U.S. producers of luxury and mass-market automobiles and trucks. You are now leading a cross-functional team to move forward with the company initiative. To remain a viable competitor and meet the demands of consumers’ desire for technology, the company’s chief technology officer (CTO) has decided to implement the internet of things (IoT) into its product line.
In Milestone One, you and your cross-functional team looked at risks and benefits of each innovation option, competitors in the market, and the company’s internal capability for moving forward with the innovation. After doing this analysis, you presented your recommendation to various stakeholders about how to proceed. You chose one of the following:
- Design a completely new product line, based on the recent technology (discontinuous innovation)or
- Add recent technology features into one model and then incrementally into the broader product line (incremental innovation)
The CTO has accepted your recommendation. Now you are ready to develop a strategy for taking the innovation to market. In order to develop a strategy, you will need to look at your competitors’ relative strengths in the current marketplace, to understand how the company compares to your competitors, and to identify the total market and the market’s annual growth rate. Finally, you also need to share your thoughts on how to respond to changes in business conditions. Although no one can predict what is going to happen, it is important to think about how flexible your plan is in order to meet unexpected conditions.
Prompt
Using the recommendation you provided in Milestone One, develop a strategic plan to implement the innovation and gain competitive advantage. Use the
Sales Forecast
,
Comparative Growth Data
and
Comparative Operating Statistics
to complete this milestone.
Strategic Plan
- Analyze the competitors’ relative strengths in the marketplace.
Write a short paragraph describing the growth rate of each competitor. You will get the solution from the comparative growth data sheet.
How much of the market does each competitor now own? Do you see a trend of gaining or losing market share? Present your findings using Power BI.Perform your analysis for the cars and trucks category. Create pie charts using columns C and F from the comparative growth Excel sheet in Power BI.
Perform your analysis for the connected cars and trucks category. Create pie charts using columns H and K from the comparative growth Excel sheet in Power BI.Determine each competitor’s financial strength by looking at their comparative operating data.
- Explain how your company’s market share compares to your competitors’.
Is your company gaining or losing market share? Expand on the analysis done in Task 1 above and explain the major factors behind the change in market share.
What is your company’s growth potential in the industry?
How do your company’s financials look compared to your competitors’? - Identify future potential total available market (TAM) and growth for each chosen product/service and technology.
What is the TAM for cars and light trucks?
What is the TAM for IoT-connected cars and light trucks?
What is the projected compound annual growth rate (CAGR) for cars and light trucks?
What is the projected CAGR for IoT-connected cars and light trucks?
Identify the fastest-growing competitor. - Identify ways to adjust if business conditions change.
What can you do if your customers are slow to respond (buy) the innovation?
What can you do if one competitor is overtaking all the others, including your company? - Describe the steps your company needs to take from concept outline to launch. Consider your learning from the previous two modules to ensure the steps are easy to understand for your team.
What is the size of development that will be required?
Will you require additional capital and personnel?
How would you approach determining the timeline from the beginning of development until initial product launch?
What to Submit
Strategic Plan
Submit a Word document of 5 pages, devoting 1 page to each critical element described above. Include a graphic using Power BI for competitors’ relative strengths (p. 1). Place the graphic at the top of the page with bullets underneath. Sources should be cited according to APA style. Consult the
Shapiro Library APA Style Guide
for more information on citations.
Power BI on VDI
Access VDI using the VDI log-in process. Open Power BI in VDI and access the MBA 580 Comparative Growth Excel sheet. Save your charts as images in the OneDrive folder on VDI. Follow the
MBA 580 Power BI User Manual
for completing these steps.
in
| in billions USD | ||||||
| Your Company | VW | BMW | Toyota | |||
| Revenue | 187.1 | 282. | 9 | 12 | 6.1 | 275.4 |
| Operating Income | 5.7 | 20.5 | 22.5 | |||
| Net Income | 0.9 | 16.1 | 19.7 | |||
| Assets | 310 | 590.6 | 275.9 | 484.7 | ||
| Liabilities | 270.2 | 443.2 | 203.4 | 293.9 | ||
| Equity | 39.9 | 147.4 | 72.5 | 190.8 | ||
| Number Employees | 190,000 | 304,174 | 133,778 | 359,542 | ||
| Notes: | ||||||
| 1 Euro = 1.21 USD | ||||||
| 1 Yen = 0.0094 USD | 0.0092 | |||||
| references: | ||||||
| Full Speed Ahead To The Future. 2019 Annual Report”. Volkswagen Group. 17 March 2020. Retrieved 17 March 2020. | ||||||
| converstion rages via Morningstar | ||||||
| Annual Report 2019″ (PDF). BMW Group. Retrieved 19 March 2020. | ||||||
| Toyota Annual Report 2020″ (PDF). Toyota Motor Corporation. May 12, 2020. | ||||||
| Ford Motor Company 2019 Annual Report (Form 10-K)”(PDF). sec.gov. U.S. Securities and Exchange Commission. January 2020. Note: numbers disguised by multiplying by 1.12 except for operating income multiplied by 10 and net income multiplied by20 |
image1
in
| Markets and Competitors | Annual Cars & Light Trucks Revenue in 2020 (billions) TAM | Market share percentage for cars and trucks now | Projected CAGR over the next 10 years | Projected revenues in 2030 (billions) | Market share percentage for cars and trucks in 2030 | Global | Market share percentage for connected cars and trucks now | CAGR over next 10 years | Projected Conencted Car Revenues (billions) in 2030 | Market share percentage for connected cars and trucks in 2030 | |
| $ 3,227.70 | 100% | 4.10% | $ 4,810.0 | 53.9 | 25.20% | $ 510.07 | |||||
| Your Company | $ 187.10 | 5.80% | 3.10% | $ 254.2 | 5.28% | 3.83 | 7.10% | 10.20% | $ 10.11 | 1.98% | |
| BMW | $ 126.10 | 3.91% | 3.70% | $ 181.5 | 3.77% | 1.62 | 3.00% | 25.50% | $ 15.67 | 3.07% | |
| Toyota | $ 275.40 | 8.53% | 3.90% | $ 404.5 | 8.41% | 4.80 | 8.90% | 24.80% | $ 43.97 | 8.62% | |
| VW | $ 282.90 | 8.76% | 4.30% | $ 433.1 | 9.00% | 8.36 | 15.50% | 23.20% | $ 67.30 | 13.19% | |
| Note for student: Projected Global revenue for in-car connected services by 2030: $81.1 Billion |
image1
Sales Growth of Whole Market
Year
0
1
2
3
4
5
6
7
8
9
10
Your Company
187.1
192.9001
198.8800031
205.0452831961
211.4016869752
217.9551392714
224.7117485888
231.6778127951
238.8598249917
246.2644795665
253.898678433
BMW
126.1
130.7657
135.6040309
140.6213800433
145.8243711049
151.2198728358
156.8150081307
162.6171634315
168.6339984785
174.8734564222
181.3437743098
Toyota
275.4
286.1406
297.3000834
308.8947866526
320.9416833321
333.458408982
346.4632869323
359.9753551227
374.0143939724
388.6009553374
403.7563925955
VW
282.9
295.0647
307.7524821
320.9858388303
334.7882299
349.1841237857
364.1990411085
379.8595998762
396.1935626708
413.2298858657
430.9987709579
Sales Growth of the Whole Market
Your Company 187.1 192.90009999999998 198.88000309999995 205.04528319609994 211.40168697517902 217.95513927140956 224.71174858882324 231.67781279507673 238.85982499172408 246.26447956646751 253.89867843302798 BMW 126.1 130.76569999999998 135.60403089999997 140.62138004329995 145.82437110490204 151.21987283578341 156.81500813070738 162.61716343154353 168.63399847851062 174.8734564222155 181.34377430983747 Toyota 275.39999999999998 286.14059999999995 297.30008339999995 308.89478665259992 320.9416833320513 333.45840898200129 346.4632869322993 359.97535512265893 374.01439397244258 388.60095533736779 403.75639259552509 VW 282.89999999999998 295.06469999999996 307.75248209999995 320.98583883029994 334.78822990000282 349.18412378570292 364.19904110848813 379.85959987615308 396.19356267082765 413.22988586567322 430.99877095789714
Sales Growth Connected Veh. Mar
Year
0
1
2
3
4
5
6
7
8
9
10
Your Company
3.8
4.1876
4.6147352
5.0854381904
5.6041528858
6.1757764802
6.8057056812
7.4998876606
8.264876202
9.1078935746
10.0368987192
BMW
1.6
2.008
2.52004
3.1626502
3.969126001
4.9812531313
6.2514726797
7.8455982131
9.8462257574
12.3570133255
15.5080517235
Toyota
4.8
5.9904
7.4760192
9.3300719616
11.6439298081
14.5316244005
18.1354672518
22.6330631302
28.2460627865
35.2510863576
43.9933557743
VW
8.4
10.3488
12.7497216
15.7076570112
19.3518334378
23.8414587954
29.3726772359
36.1871383546
44.5825544529
54.925707086
67.6684711299
Sales Growth Connected Vehicle Market
Your Company 3.8 4.1875999999999998 4.6147352000000001 5.0854381904000006 5.6041528858208007 6.1757764801745232 6.8057056811523253 7.499887660629863 8.2648762020141096 9.1078935746195491 10.036898719230743 BMW 1.6 2.008 2.5200399999999998 3.1626501999999994 3.9691260009999989 4.9812531312549986 6.2514726797250226 7.8455982130549025 9.8462257573839018 12.357013325516796 15.508051723523577 Toyota 4.8 5.9904000000000002 7.4760192000000005 9.3300719615999999 11.6439298080768 14.531624400479847 18.13546725179885 22.633063130244967 28.246062786545718 35.251086357609054 43.993355774296099 VW 8.4 10.348800000000001 12.749721600000001 15.7076570112 19.351833437798401 23.841458795367629 29.372677235892919 36.187138354620075 44.582554452891934 54.925707085962863 67.668471129906251
Option A for Innovation
Year
0
1
2
3
4
5
6
7
8
9
10
Sales Traditional
183.3
190.8153
198.6387273
206.7829151193
215.2610146392
224.0867162394
233.2742716052
242.838516741
252.7948959274
263.1594866604
273.9490256135
Sales Connected
3.8
4.1876
4.6147352
5.768419
7.21052375
9.0131546875
11.2664433594
14.0830541992
17.603817749
22.0047721863
27.5059652328
Total Sales
187.1
195.0029
203.2534625
212.5513341193
222.4715383892
233.0998709269
244.5407149646
256.9215709402
270.3987136764
285.1642588467
301.4549908464
Gross Margin Traditional
27.495
28.622295
29.795809095
31.0174372679
32.2891521959
33.6130074359
34.9911407408
36.4257775112
37.9192343891
39.4739229991
41.092353842
Gross Margin Connected
0.798
0.879396
0.969094392
1.21136799
1.5142099875
1.8927624844
2.3659531055
2.9574413818
3.6968017273
4.6210021591
5.7762526989
Total Gross Margin
28.293
29.501691
30.764903487
32.2288052579
33.8033621834
35.5057699203
37.3570938463
39.383218893
41.6160361164
44.0949251582
46.8686065409
R&D and Capital Costs
4.1
4.133
1.16699
1.2019997
1.238059691
1.2752014817
1.3134575262
1.352861252
1.3934470895
1.4352505022
1.4783080173
Notes:
Your company grows connected cars at 10.2%/year for 2 years, then grows connected cars at 25%/year.
Your company grows traditional cars at industry growth rate of 4.1 %/year.
Margin for connected cars: 21%.
Margin for traditional cars: 15%.
Numbers shown in billions.
There are two additional R&D costs for this option in year 0 and year 1.
Option B for Innovation
Year
0
1
2
3
4
5
6
7
8
9
10
Sales Traditional
183.3
190.8153
198.6387273
206.7829151193
215.2610146392
224.0867162394
233.2742716052
242.838516741
252.7948959274
263.1594866604
273.9490256135
Sales Connected
3.8
4.1876
4.6147352
5.0854381904
5.6041528858
6.1757764802
6.8057056812
7.4998876606
8.264876202
9.1078935746
10.0368987192
Total Sales
187.1
195.0029
203.2534625
211.8683533097
220.865167525
230.2624927196
240.0799772864
250.3384044017
261.0597721294
272.2673802351
283.9859243327
Gross Margin Traditional
27.495
28.622295
29.795809095
31.0174372679
32.2891521959
33.6130074359
34.9911407408
36.4257775112
37.9192343891
39.4739229991
41.092353842
Gross Margin Connected
0.798
0.879396
0.969094392
1.06794202
1.176872106
1.2969130608
1.429198193
1.5749764087
1.7356240024
1.9126576507
2.107748731
Total Gross Margin
28.293
29.501691
30.764903487
32.0853792879
33.4660243019
34.9099204967
36.4203389338
38.0007539199
39.6548583915
41.3865806497
43.2001025731
R&D and Capital Costs
1.1
1.133
1.16699
1.2019997
1.238059691
1.2752014817
1.3134575262
1.352861252
1.3934470895
1.4352505022
1.4783080173
Notes:
Your company grows connected cars at 10.2%/year.
Your company grows traditional cars at industry growth rate of 4.1 %/year.
Margin for connected cars: 21%.
Margin for traditional cars: 15%.
R&D and Capital Costs grow at a rate of 3%.
image1
>
MBA 5
8
0 Power BI User Manual
Contents
Getting Started With Power BI
2
Introduction
2
Access Power BI From the VDI
2
Importing Files to Power BI
4
Directions for Plotting Milestone Two Pie Charts
8
Plot Chart 1: Market Share Percentage for Cars and Trucks Now
8
Plot Chart 2: Market Share Percentage for Cars and Trucks in 2030
11
Plot Chart 3: Market Share Percentage for Connected Cars and Trucks Now
12
Plot Chart 4: Market Share Percentage for Connected Cars and Trucks in 2030
12
Capturing Pie Chart Screenshots
12
Exporting Your Power BI File as a PDF
13
Capturing Screenshots
14
Getting Started With Power BI
Introduction
Power BI allows users to visualize and present data in a way that is easy to understand and analyze. You will access Power BI from a
virtual desktop interface (VDI) included in your course.
Access Power BI From the VDI
Follow these steps to access Power BI:
1. Navigate to the VDI Access area in your Brightspace course. Click the
VDI Access link to access the virtual student lab.
2. Select the appropriate student lab for your course. For guidance, review the
VDI Instructions document (linked in the VDI Access area of the course).
3. Allow a few minutes for the software and resources to load to the VDI.
Note: You may receive various notifications when accessing and using the VDI desktop and Power BI. Complete requested tasks or close the notifications as appropriate.
4. Select the
Power BI Desktop icon from the VDI home screen.
Note: The icon may be in a different location each time you open the desktop.
5. The Power BI homepage opens.
Importing Files to Power BI
Once the Power BI homepage is displayed, close any pop-up windows and follow these steps:
1. Click the
Excel Workbook icon to open the files for MBA 580.
2. Select
File in the top menu on the Power BI homepage.
3. On the left-hand side, click
Get Data.
4. On the Get Data screen, click
Text/CSV.
5. Select
Desktop and then
Business Analytics Course Content.
6. Select the folder for
MBA 580.
7. Open the
MBA 580 Comparative Growth Data file.
8. In the Data Set Preview window, click
Load.
9. The data will load into the Data pane on the right side of the screen. Select the arrow to see the data attributes needed for your analysis.
10. You’re now ready to create the Milestone Two Assignment pie charts for analysis.
Directions for Plotting Milestone Two Pie Charts
Plot Chart 1: Market Share Percentage for Cars and Trucks Now
Follow these steps:
1. Select the
pie chart icon from the Visualizations pane on the right side of the screen.
2. Select and drag the corner of the pie chart. Resize it to fill the window.
3. Select the attribute
Markets and Competitors from the Data pane.
4. The
Market and Competitors attribute self-populates in the Legend field of the Visualization pane.
5. Select the attribute
Market Share Percentage for Cars and Trucks Now from the Data pane. The attribute self-populates in the Values field of the Visualizations pane.
6. You’ve now created the chart needed to analyze the existing market share of cars and trucks now (Values) for your company and competitor companies (Legend).
Click the
Save icon
in the upper left, name the file, and click the
Save button.
7. You’ll repeat these steps to create the remaining three charts. To add pages for the other charts, you’ll click the
plus icon at the bottom of the screen.
Plot Chart 2: Market Share Percentage for Cars and Trucks in 2030
Follow these steps:
1. Click the
plus icon to add a new page to your file.
2. Add a
pie chart to
page 2 of your file. Resize the chart to fill the window.
3. Select these Data pane attributes to populate the Visualizations pane:
· Legend:
Markets and Competitors
· Values:
Market Share Percentage for Cars and Trucks in 2030
4. Click
Save.
Plot Chart 3: Market Share Percentage for Connected Cars and Trucks Now
Follow these steps:
1. Click the
plus icon to add a new page to your file.
2. Add a
pie chart to
page 3 of your file. Resize the chart to fill the window.
3. Select these Data pane attributes to populate the Visualizations pane:
· Legend:
Markets and Competitors
· Values:
Market Share Percentage for Connected Cars and Trucks Now
4. Click
Save.
Plot Chart 4: Market Share Percentage for Connected Cars and Trucks in 2030
Follow these steps:
1. Select the
plus icon to add a new page to your file.
2. Add a
pie chart to
page 4 of your file. Resize the chart to fill the window.
3. Select these Data pane attributes to populate the Visualizations pane:
· Legend:
Markets and Competitors
· Values:
Market Share Percentage for Connected Cars and Trucks in 2030
4. Click
Save.
You’ve now created the required charts for Milestone Two.
Capturing Pie Chart Screenshots
Capture one screenshot for each pie chart. Paste the screenshots directly into your Milestone Two submission. You can capture your screenshots directly from Power BI or export your file to a PDF and then capture your screenshots.
Directions for exporting your Power BI file to a PDF and for capturing screenshots are included below.
Exporting Your Power BI File as a PDF
Follow these steps to generate a PDF from your Power BI file:
1. Select
File in the top menu.
2. Select
Export in the left-hand pane.
3. Click
Export to PDF.
4. The PDF opens. You’re now ready to capture screenshots.
Capturing Screenshots
PC Users
Follow these steps to capture a portion of your screen:
1. Press
Windows Key + Shift + S to open the Snipping Tool.
2. Select the area of your screen to capture.
3. The screenshot is saved to your clipboard.
4. Paste the screenshot from your clipboard directly into your submission.
Mac Users
Follow these steps to capture a portion of your screen:
1. Press and hold
Shift – Command – 4.
2. Move the crosshair to where you want to start the screenshot.
3. Press and drag the mouse button or trackpad to select the area you want to capture.
4. Release the mouse or trackpad button to take the screenshot.
5. The screenshot will be saved as a PNG file on your desktop.
6. Insert the image into your submission.
Here’s an example of a screenshot taken from a PDF:
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1
Strategic Integration of IoT in Trucks and Cars
Student’s Name
Institution
Course number and name
Assignment due date
Internal Memo: Strategic Integration of IoT in Trucks and Cars
To: Senior Management
From: IT Department
Date: 10/January//2024
Subject: Strategic Integration of IoT in Trucks and Cars
Feasibility of the IoT Product Line: Is It Real?
The implementation of IoT technology in the company’s trucks and cars is a plausible and essential change to make to keep up with the competition. Such IoT applications are already in high demand by consumers and businesses as they seek to make vehicles more convenient, safe, and efficient. IoT offers several capabilities such as real-time tracking, predictive maintenance, and connectivity that are in line with customer preferences and the market. Furthermore, the logistics and fleet management industries are in constant search of ways to minimize costs while increasing efficiency, which makes the integration of IoT a valuable proposition (Hopkins & Hawking, 2018).
The market size for connected vehicles is huge and is expected to grow at a tremendous pace. This demand shows there is much potential for targeting a market that is interested in new features and improved performance. From a production perspective, the currently available technologies and collaborations with IoT solution providers ensure that it is possible to manufacture these vehicles within reasonable time and costs (Hopkins & Hawking, 2018). When done right, the final product will meet the market needs sufficiently and place the company ahead of its competitors.
Ability to Win Market Share: Can We Win?
In order to be competitive, the company’s IoT enabled vehicles need to offer some additional features that would set them apart from the competitors and, at the same time, ensure that they are better in every way. Implementing such features as artificial intelligence-based diagnostic tools, the ability to adjust the interface according to the user’s preferences, or sophisticated safety features can make this product stand out from the competition (Desai & Phadke, 2017). Working with key IoT suppliers and using proprietary technologies will make sure that the vehicles stay cutting-edge and efficient.
The competitors might increase the pace of their IoT initiatives in response to the company’s actions, but the company can preserve its advantages through ongoing innovation and customer-oriented offerings. Market research will reveal emerging trends and customer needs that will be invaluable in responding to changes as they occur. In this context, marketing initiatives should be synchronized with the changes in customer needs and expectations.
Potential Benefits of Producing IoT-Enabled Vehicles: Is It Worth Doing?
The profitability of IoT-integrated vehicles is high, particularly in the light of the growing demand for advanced safety and efficiency boosting features that consumers and businesses are willing to pay for (Ferrari, 2022). While the initial costs of development are high, the revenue streams in the long run reduce the risks involved. Tactically, introducing IoT-enabled vehicles is in line with the company’s growth objectives. This initiative not only fulfills the current market needs but also sets up the company for future market dominance in areas like autonomous driving and smart city integration (Menon et al., 2022). The initiative will probably be well received at the corporate level since it is consistent with the company’s strategic vision and may create new business streams.
Strategic Importance of IoT and Connected Cars
The incorporation of IoT in trucks and cars is a business necessity for the company since it fulfills the changing customer demands and places the company at a vantage point in the advancing digital automotive market. Consumers today require not just mere mobility solutions, but vehicles that are smart and connected devices that improve their lives. Satisfying these expectations guarantees customer loyalty and the company’s long-term position in the market.
Other competitors are also expected to intensify their IoT strategies in relation to our development strategies, however, the firm’s ability to adapt and focus on customer-centric innovations will help to maintain leadership. Through such actions, the company can effectively seize the opportunity and become the industry leader in connected vehicle technology, which will in turn create a competitive advantage. By leveraging on these trends early enough, the company will be in a position to improve on its brand image, gain new customers and position itself as a leading company in the automotive industry.
References
Desai, M., & Phadke, A. (2017). Internet of Things based vehicle monitoring system. In
2017 fourteenth international conference on wireless and optical communications networks (WOCN) (pp. 1-3). IEEE.
Ferrari, E. (2022). IoT-enabled environmental monitoring for autonomous vehicle safety.
Journal of ai-assisted scientific discovery,
2(1), 86-107.
Hopkins, J., & Hawking, P. (2018). Big Data Analytics and IoT in logistics: a case study.
The International Journal of Logistics Management,
29(2), 575-591.
Menon, V. G., Jacob, S., Joseph, S., Sehdev, P., Khosravi, M. R., & Al-Turjman, F. (2022). An IoT-enabled intelligent automobile system for smart cities.
Internet of Things,
18, 100213.
