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HUBLI

A
PROJECT REPORT ON
“Inventing or innovation is better in Automobile”

Submitted to Submitted by
Mr. V.K Srivatsav Koteswara Rao .V
(Academic Coordinator) MBA/08/67

Date: 14/08/09

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 CERTIFICATE

This is to certify the project work entitled “Inventing or innovation is better

in Automobile “has been successfully carried out by Mr .Koteswara Rao. V of MBA
III Trimester,

Place: (Signature)
Date Rohit C Kalaskar

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 DECLARATION

I Mr. Koteswara Rao .V student of MBA III trimester HET’s Institute of

management studies , Hubli thank my institution for giving me an opportunity to
undergo my project work.

I hereby conform that this project report on “Inventing or innovation is

better automobile” has been undertaken by me during the said period as a part of
my academic curriculum.

I further declare that this project report is the result of my own efforts and
has not been submitted earlier to any other college for any other degree.

PLACE: HUBLI
Date: 14/0809 Koteswara Rao.V

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 ACKNOWLEDGEMENT

It is my great privilege to express my sincere thanks to Institute of

Management Studies Hubli for providing us with all facilities to do this project.
Who energized us with encouragement and inspiration in the completion of the
project work?

I am very much grateful to Mr. Rohit C Kalaskar who is in charge for this
project and his excellence guidance encouragement and timely suggestions, while
rising out work this project successfully.

Koteswara Rao. V

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 Index

Chapter 1
1. Introduction &Design of the study
2. Statement of the study
3. Objectives of the study
4. Need for the study
5. Methodology

a. size of the sample

b. sampling design
c. sampling technique

6. Data collection
7. Hypothesis
8. geographical area of study
9. Data analysis
10. Limitations

Chapter 2
An over view of the study

Chapter 3
Opinion of the study

Chapter 4
Findings and conclusion

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 CHAPTER-1

Executive summary

Invention is discovering something new or novel. Innovation is taking that

invention and making it into a commercially viable product/service/business

Invention is only a subset of innovation that’s generally science-based

research or focused on product design and results in patentable inventions. National
employment, power, wealth, and well-being depend more on the deployment of
innovations than on the invention itself. The primary challenges associated with
innovation process management include difficulty identifying and investing in the best
ideas for the correct market with the right resources, a lack of coordination, and
challenges measuring innovation. Organizations often do not have structured innovation
processes in place to drive transparency, metrics development, or cross-functional
collaboration. The problem definition of this project is to justify inventions or innovation
is better in automobile sector The main objective of this project is to justify innovation is
better in automobile and other objectives are to know why some innovations fail in the
market and what factors makes the customers to accept innovations in automobile.

Primary data have been collected from survey and the secondary data have
been collected from internet. I have used SPSS software to analyze the data what i
collected from the survey.

Innovations fail because OEMs and suppliers know too little about customer
requirements and do not pay adequate attention to innovation marketing. Innovation very
important in automobile, without innovation automobile cannot move further. Indian
automobile industry is developing with a tremendous speed. The automobile sector in
India has the ability to win and retain customers through innovative product designing,
adopting a digital environment and developing product strategies and initiatives. This is
possible by taking into account criteria such as usability and experience, adding value to
products and trying to reduce design constraints in a maximum possible way. 74% of the

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respondents said that security & safety makes to accept innovation.72% of the
respondents said that comfort makes to accept innovation .54%of the respondents said
that performance &dynamics makes to accept innovation.64%of the respondents are said
that flexibility &space makes to accept innovations. 50% of the respondents said that
simplicity makes to accept innovations. 40% of the respondents said that emission
makes to accept innovation. 70% of the respondents said that cost makes to accept
innovation. 56% of the respondents said that design and feel makes to accept innovation.

Introduction:

Invention is discovering something new or novel. Innovation is taking that

invention and making it into a commercially viable product/service/business.

The automobile industry in India the tenth largest in the world with an annual
production of approximately 2 million units is expected to become one of the major
global automotive industries in the coming years. A number of domestic companies
produce automobiles in India and the growing presence of multinational investment, too,
has led to an increase in overall growth.
Innovations are essential for automobile industry, the automobile sector in
India has the ability to win and retain customers through innovative product designing,
adopting a digital environment and developing product strategies and initiatives. This is
possible by taking into account criteria such as usability and experience, adding value to
products and trying to reduce design constraints in a maximum possible way. Our
intelligent transformation strategy creates the effective combination of people and
technology, which all other innovation approaches depend upon. We successfully
implement changes in vehicle electronics systems and software with our Automotive
Electronics approach, while our Enterprise Value Networks approach masters challenges
posed by collaboration between producers and suppliers. Our customers implement cross-
sector product development with the help of Engineering Collaboration. Whatever the
future brings, with us you stay one step ahead of the competition. Inventions and
innovations both are important in automobile.

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Design of the study
The design of the study determines the steps to be followed to conduct the study
and the important topics, which are to be covered in the study.

This research is carried out as per the steps of market research process. To meet the
objectives primary research is undertaken.

A detailed design of the study is considered necessary in order to compare the actual
theory with that observed in picture.

Statement of the problem:

The statement of the problem is to justify Inventing or innovation is better in

Automobile
Objectives

1. To justify invention or innovation is better in automobile

2. To know what factors makes the customers to accept innovations in automobile
3. To know why innovations fail in the eye of customers

Needs of the study:

• By doing this research we will get market exposure along with knowledge
• This market exposure will be helpful to know how we have to work for an
organization in the present market scenario.
• This project will give an idea to know how we have to do the projects for
organizations.
• This project makes me able to know the importance of the innovations in
automobile

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Methodology:
Primary data have been collected from the survey and the secondary have been
collected from the internet

I have been collected the primary data by using questionnaire as a tool

Size of the sample

Hear the size of sample is consider with the how many customers do approach the
sample size is (60)

Sampling design
For this project, I met the respondents who are having their own

Sampling techniques

Here I used two types of sampling techniques for data collection and analysis of the data
Exploratory method

Descriptive method

Data collection

Survey Method, which consisted of distributing questionnaire to the respondents who

are having own car and asking them to fill the form.
Secondary data collected from internet were used.
Measurement technique: Distribution of Questionnaires and analyzing has done by
using SPSS software

Geographical Area

This geographical area is concerned to the where I conducted serve to analyze which
is the best-medicated brand in the twin city’s.

I conducted survey in Hubli city, areas like Gokul road, CBT, Navanagar, Sirur
park circle and some automobile show rooms in Hubli

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Data analysis

Here I used SPSS software to analyze the data what I collected from the respondents .

What factors makes you to accept the innovations in automobile

Is security & safety makes to accept innovation

Frequency Percent Valid Cumulativ
Percent e Percent
Valid it does 37 74.0 74.0 74.0
it does not 5 10.0 10.0 84.0
neutral 8 16.0 16.0 100.0
Total 50 100.0 100.0

Is security&safty makes to accept innovation

nuetral

it does not

it does

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Is comfort makes to accept innovation
Frequency Percent Valid Cumulativ
Percent e Percent
Valid it does 36 72.0 72.0 72.0
it does not 7 14.0 14.0 86.0
neutral 7 14.0 14.0 100.0
Total 50 100.0 100.0

Is comfort makes to accept innovation

nuetral

it does not

it does

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 Is performance & dynamics makes to accept innovation
Frequency Percent Valid Cumulativ
Percent e Percent
Valid it does 28 56.0 56.0 56.0
it does not 10 20.0 20.0 76.0
neutral 12 24.0 24.0 100.0
Total 50 100.0 100.0

Is performance&dynamics makes to accept innovation

nuetral

it does

it does not

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Is flexibility & space makes to accept innovation
Frequency Percent Valid Cumulativ
Percent e Percent
Valid it does 32 64.0 64.0 64.0
it does not 9 18.0 18.0 82.0
neutral 9 18.0 18.0 100.0
Total 50 100.0 100.0

Is flexibility&space makes to accept innovation

neutral

it does not

it does

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Is design & feel makes to accept innovation
Frequency Percent Valid Cumulativ
Percent e Percent
Valid it does 28 56.0 56.0 56.0
it does not 7 14.0 14.0 70.0
neutral 15 30.0 30.0 100.0
Total 50 100.0 100.0

Is design&fell makes to accept innovation

nuetral

it does

it does not

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Is simplicity makes to accept innovation
Frequency Percent Valid Cumulativ
Percent e Percent
Valid it does 25 50.0 50.0 50.0
it does not 10 20.0 20.0 70.0
neutral 15 30.0 30.0 100.0
Total 50 100.0 100.0

Is simplicity makes toaccept innovation

nuetral

it does

it does not

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Is emmisi on makes to accept innovation
Frequency Percent Valid Cumulativ
Percent e Percent
Valid it does 20 40.0 40.0 40.0
it does not 14 28.0 28.0 68.0
neutral 16 32.0 32.0 100.0
Total 50 100.0 100.0

Is emmisi on makes to accept innovation

nuetal

it does

it does not

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Is cost makes to accept innovation
Frequency Percent Valid Cumulativ
Percent e Percent
Valid it does 35 70.0 70.0 70.0
it does not 3 6.0 6.0 76.0
neutral 12 24.0 24.0 100.0
Total 50 100.0 100.0

Is cost makes to accept innovation

nuetral

it does not

it does

Limitations

1. The main limitation of this project is to get all the data from the internet

2. The respondents were not having adequate knowledge about innovations and
inventions

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 CHAPTER 2

Overview

Invention is discovering something new or novel. Innovation is taking

that invention and making it into a commercially viable product/service/business.
Innovations are the fuel of the automotive industry. They serve to differentiate brands,
adapt cars to changing customer preferences, provide answers to global challenges and so
ensure the continued success of the industry. In the face of ever stricter emissions limits
and increasingly scarce commodities, the entire concept of individual mobility is at risk.
It will take innovative and affordable technologies, especially with regard to drive
systems and materials, to realize the full growth potential of 100 million motor vehicles
by the year 2020. The primary challenges associated with innovation process
management include difficulty identifying and investing in the best ideas for the correct
market with the right resources, a lack of coordination, and challenges measuring
innovation. Organizations often do not have structured innovation processes in place to
drive transparency, metrics development, or cross-functional collaboration.

A closer look at R&D spending by both OEMs and suppliers

shows that around 40 percent of all investments go into innovations
that never make it into the car or are never produced in sufficient
numbers due to a lack of market acceptance. Of the remaining 60
percent, 20 percent is for necessary serial development. Another 20
percent is for innovations that fulfill legal requirements but do not add
to a product’s distinctiveness. Usually, these innovations do not pay off
either. That leaves only a small remainder of 20 percent that
represents profitable innovation investment. And more and more
technologies are fiercely fighting over this sweet spot.

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 Only around ten percent of the automotive technologies under development
at the moment have the potential to become blockbuster innovations. These technologies
combine the two most relevant categories: The first category, market potential, consists
of functional purpose, customer acceptance, regulation compliance and price level. The
other category, a high degree of innovation, creates technological differentiation in the
market, better intellectual property protection, high margins and a long harvest period.
Automotive companies must increasingly focus their innovation efforts
on a very limited number of promising projects. In order not to place their bets blindly,
they have to carefully assess the potential and risks of the technologies they want to
explore and regularly reassess them. Existing technologies, as well as technologies under
development, always face the possibility of being pushed aside by alternative
developments. In order to assess the technological and market potential of a given
technology, its respective car module must be analyzed in terms of the key technologies
being used, current trends and future innovations. The chances and risks of a given
technology are also influenced by the different market structures, competitors and
business models in each segment. Innovation cycles are constantly shortening while
development costs are rising due to the higher complexity.

All too often innovations fail because OEMs and suppliers know too
little about customer requirements and do not pay adequate attention to innovation
marketing. Only about one out of six innovations offered is actually purchased. Different
customer groups have different perceptions of the benefits of automotive innovations. To
a large extent, the success of innovative features also depends on regional differences:
Asian car buyers, for example, are much more interested in infotainment electronics than
their American counterparts. Most car buyers have only a limited budget for optional
equipment, but their price sensitivity is largely unknown to OEMs. The customers’
limitations and differences in knowledge, desire and budget lead to a very low order rate

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for new car features. Once a new function has been bought, however, customers are very
content with it.

In the future, OEMs and suppliers must test the chances for success of their
innovations much more thoroughly. They need to know in advance what innovations are
desirable to which groups of customers of which brand. And they need to develop models
that explain which innovation can succeed against which traditional function within the
total features portfolio.

In industrialized countries, the price of the average new car has risen by 100
percent over the past 20 years while average income has increased only by 50 percent –
and the gap between new car prices and incomes has continued to grow from year to
year. The reason for this development is the increasing technological complexity that
drives development and manufacturing costs, and the growing number of functions
needed to differentiate the brands. This trend cannot continue much longer. Otherwise,
customers could go back to smaller cars, a development that is not in the interest of the
industry. Therefore, cost innovation is a central goal in the automotive industry, just as
important as the traditional differentiation of functional innovations is. The heads of
R&D at OEMs and suppliers have already embraced this new imperative. But it is
difficult to change an innovation culture in an industry that is fascinated with functional
enrichment.
The solution to cost-saving lies in a series of issues that the automotive industry
must tackle simultaneously: The use of new and more cost-efficient materials needs to be
explored in order to cut material and processing costs. Flexible manufacturing concepts
will enable utilization of assembly plants to be improved. Future software will have to
work in several models. Intelligently devised bundles of optional extras can reduce the
number of possible configurations and eliminate expensive complexity from
manufacturing processes.

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 At the same time, development costs must be lowered. All big automotive
companies have launched R&D off shoring initiatives to lower engineering costs and help
fuel localized development. Module approaches will reduce R&D costs per unit and
enable companies to cope with a larger variety and shorter cycles of models. New design
and test-bed software will also help lower the real-world costs of developing automotive
components. These are just a few examples of the many initiatives needed to keep cars
affordable for the broad public. Cost innovations and lower R&D costs will play a
crucial.
The first step for R&D optimization is to evaluate the future market potential of
all ongoing innovation projects, to define the threats they face from other technologies in
the same area and to model price scenarios. If other technologies are needed as helping
or enabling technologies, will they be available and what is their market potential? For
example, a battery management system for fuel-cell and electric cars needs available
technologies in place to have a market. Which regional markets will be likely to embrace
the technology?

The success factors of innovations are follows

Technological vision: Top performers constantly scan their environment for long term
trends in the market and in technologies. They develop a long-term innovation
vision and stick to it, no matter what the short-term trends are.

Customer knowledge: Understanding customer preferences enables companies

to better focus their innovation efforts on relevant issues. Customer research needs
both a regional and a socio-demographic approach to be of value.

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Strategy match: Successful OEMs and suppliers match their R&D strategies at a very
early stage, and very closely with the respective target OEM or supplier partner. This
is especially true when the car architecture is affected, i.e. with module innovations The
following companies are top 10 Indian automobile companies who are having no. of
innovations in their carrier.

Competence focus: The best innovators closely match their R&D competencies with
their R&D strategy. OEMs and bigger suppliers with a diversified product range must
continuously recalibrate their competencies to their strategic R&D targets.

Strategic partners: With their increasing complexity, R&D networks are becoming
a crucial success factor. Currently, it is mostly OEMs that are forming such networks.
In the future, supplier-supplier and supplier-institution collaborations will increase

Investment focus: R&D funding must be independent of current business needs. In

the past, short-term changes in the R&D focus have often led to long-term problems.
Catching up with past R&D cuts has often proven to be extremely expensive.

Trend focus: Relying on mega trends contributes significantly to the soundness of

R&D investments, as these trends are highly predictable. Interpreting these trends
in terms of a company’s own business model is a main conceptual challenge for
automotive companies.

Cost focus: Leaders in innovation always have a strong cost focus, with respect to
R&D efficiency and effectiveness. Regardless whether it is a single component or an
entire car, the reduction of unit costs is the center of their innovation efforts.

Outside-in strategy: Top performers concentrate on innovations that the market

needs and end low-value projects early. Processes that strengthen this ability are

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a common understanding of innovation aims within the company and a standard
quality process.

People involvement: Companies that involve people from all levels in their R&D are
much more successful innovators. The keys to employee involvement are easy and
motivating communications, low hurdles for submission of ideas, and efficient and
transparent filters for the incoming ideas.

The top automobile companies in India are

1. TATA motors Ltd

2. Bajaj Auto Ltd
3. Maruti Udyog
4. Toyota kirloskar
5. Ashok Leyland
6. Mahindra Group
7. Hero motors
8. Hyundai Motors
9. Yamaha Motors
10. Honda Siel cars Ltd

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 CHAPTER-3

Opinion of the study

Inventions and innovations, both are essential in automobile sector. Automotive

companies must increasingly focus their innovation efforts on a very limited number of
promising projects. In order not to place their bets blindly, they have to carefully assess
the potential and risks of the technologies they want to explore and regularly reassess
them. Innovations are getting fail because OEMs and suppliers know too little about
customer requirements and do not pay adequate attention to innovation marketing. Some
successful factors made the customer to accept innovations in automobile sector.

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 CHAPTER-4

Findings

Innovations fail because OEMs and suppliers know too little about customer
requirements and do not pay adequate attention to innovation marketing.
74% of the respondents said that security & safety makes to accept
innovation.72% of the respondents said that comfort makes to accept innovation .54%of
the respondents said that performance &dynamics makes to accept innovation.64%of the
respondents are said that flexibility &space makes to accept innovations. 50% of the
respondents said that simplicity makes to accept innovations. 40% of the respondents
said that emission makes to accept innovation. 70% of the respondents said that cost
makes to accept innovation. 56% of the respondents said that design and feel makes to
accept innovation.
Invention and innovation, both are interrelated to each other. Invention is
discovering something new or novel. Innovation is taking that invention and making it
into a commercially viable product/service/business. Without inventions and innovation,
the automobile industry can not develop further.

Suggestions

 Increase customer orientation and marketing focus on R&D

 Generate a diverse innovation product & services portfolio
 Improve R&D effectiveness and efficiency; reduce innovation risks

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  Enhance the innovation culture and organization

Conclusion

Inventions and innovations, both are essential in automobile sector.

Automotive companies must increasingly focus their innovation efforts on a very limited
number of promising projects. In order not to place their bets blindly, they have to
carefully assess the potential and risks of the technologies they want to explore and
regularly reassess them. Innovations are getting fail because OEMs and suppliers know
too little about customer requirements and do not pay adequate attention to innovation
marketing. They are not concentrating on the customer requirements. They need to put
concentrate on the customer requirements. Some important factors makes the customers
to accept the innovation. All too often innovations fail because OEMs and suppliers know
too little about customer requirements and do not pay adequate attention to innovation
marketing. Only about one out of six innovations offered is actually purchased.

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 Questionnaire

1} Name : _________________________________________

2} Gender : a) Male [ ] b) Female [ ]

3} Occupations : a) Business man b) Government Employee c) private employee

d) Student

4} Contact no : _________________________________________

1. What factors makes you to accept the innovations in automobile

Factors It does It does not neutral

Safety & Security
Comfort
Performance& Dynamics
Flexibility& Space
Design & feel
Simplicity
Emissions
Cost

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