Innovation management

Nanthakumar SubramanianM061320013

Lesson Outline:• Company Introduction• Findings from Interview• Discussion - How Honda Managed

the Innovation• SWOT• END

Company background

• Honda Malaysia Sdn. Bhd opening production on 17th January 2003

• Location - Pegoh, Alor Gajah, Malacca

• Area of 49.190 square meters

• Opening officiated by the Minister of International Trade and Industry (MITI), Dato 'Sri Mustapa bin Mohamed

Company background

Detail of the person interview

1. Age 48 years 45 years

2. Position Manager Vice Presiden (VP)

3.Working

experience7 years 11 years

4. DepartmentManufacturing – New model

Centre

Finance and

Information Tech.

En.Norhishamuddin Annuar (Sham)

En. Juhairi Abdul Jamil

(Hairi)

En. Juhairi Abdul JamilEn. Juhairi Abdul JamilEn. Juhairi Abdul Jamil

What you understand about the innovation?

• Innovation is a new invention that is different from existing or previously known

• finding ways to produce products or services that better either through renovations or improvements.

• It is the brainchild of creative ideas and innovative in any aspect of work that can improve the quality and productivity of the organization.

Sham

Hairi

From your opinion how do feel Honda in

innovation management?

• The key point lead to Honda's success is the continuous innovation that was found by Mr. Honda

• concern about innovation and make sure all that idea, creative doesn’t matter from upper level or down level its always appreciated

• Innovation play very important role in Honda

• everywhere and anyone from Honda organization can suggest their idea.

• Its honor those work out and prove them there in this family.

Sham Hairi

innovation process in Honda

innovation product.

ASIMOHonda

Jet

The Racing Spirit

Home Energy

Walk AssistInside Honda R&D

Where Does Honda Innovate?

• Honda’s Known knowns–“Making better better”.– Honda nowadays have reputation of

delivering the high performance engine in the world

– Having start as engine manufacturer, it concern about high efficiency, effectiveness and quality of engine

– In 1972, Honda produce CVCC engine allowing Honda achieve the US emission standard

Where Does Honda Innovate?

– In 1988, it announce the VTEC engine which increase volume efficiency of four-stroke internal combustion engine.

– In 1999, it announce the introduction of FCX V1 and FCX V2 engines which were first receive the certification of commercial use in US in 2002.

– In the future will introduce the new FCX which efficiently produce zero emission

Where Does Honda Innovate?

• Honda’s known unknowns – “Onwards, onwards anywhere but backwards”. – Base on the Honda expertise in the

engine, the company has successful pursue in radical changes in product ways.

– Thus, Honda invented Honda Jet where have unique wing engine mount configuration. It reduce drag and provide more space to build a bigger cabin.

Where Does Honda Innovate?

– In 2006, Honda receive the first order for its Honda Jet which have 35% more fuel efficiency then similar aircraft. It achieve by the development of high grade material, aerodynamic, efficient engine and design.

Where Does Honda Innovate?

• Honda’s unknown unknowns –“The power of dream”. – The cars that do not crash. Honda started to

realize dream about the car which rather than just protecting again the worse, but prevent the worse from happening. The new CRW features collision navigation breaking system warn the driver if the car is too close to the front. It identified the break and retract the seat belt if the driver move forward.

Where Does Honda Innovate?

– ASIMO, the Honda’s humanoid Robot. Create by Honda which take 20 years for the development.

– ASIMO is the world’s first humanoid robot which have programmed with intelligent capability.

How Does Honda Do It?

• Honda has regional hierarchical organization structure that help the company achieve the objective which is efficiency, effectiveness and environment friendly.

• Failure –The secret to success. Honda also have high tolerance of failure.

How Does Honda Do It?• Focus on Factory Flexibility– seamlessly produce multiple autos on a single

assembly line, one after another, and switch a line over to a newly designed vehicle within hours

– in-house engineering located at each major production facility, serving as an independent operation that is focused solely on local needs

– In globalization terms, the advantage Honda gains is in being able to alter production and capacity of individual models at a moment's notice, depending on local sales trends and the success of competitive brands

How Does Honda Do It?

• Listen to Engineers– Honda CEOs' strengths lie in product and

process innovation, primarily in designing new vehicle models and features and in conceiving fresh techniques for building them faster and better

– their success as managers is measured not by quarter-to-quarter results but instead by how well they cultivate individual creativity throughout the organization and how well they disburse

How Does Honda Do It?

• Encourage Your Employees to Questions the Status Quo– Honda is a questioning, knowledge-rich

organization, which demands that its workers at all levels continually poke holes in the status quo

– often-spontaneous meetings known as "waigaya" during which decisions, large and small, are reevaluated and turned on their head in hopes of finding a better strategic or tactical choice

How Does Honda Do It?

• Don’t Rely on Robots– Honda's factories are purposefully the

most labor intensive in the auto industry, employing robots only in areas that are dangerous or otherwise obviously less fit for humans than machines

– by introducing robots to every stage of the design and builds process, employees become disengaged and innovation is lost.

SWOT analysisSTRENGTH WEAKNESSES

Quality and customer satisfaction High R&D like Hybrid Technology Innovation Market share leadership Strong brand equity Unique products

High Price (latest technology being used in Honda products it is difficult to keep the prices low.)

Reputation for being underpowered.

OPPORTUNITIES THREATS

Progressing low emission vehicles and alternative power sources.

Mid segment economical small Cars.

Too many competitors in automotive industry.

Lower cost competitors Economic slowdown Expanding market size of compact

cars  ( currently it is around 76% ) Regaining the lead of low

emissions is a risky proposition as other companies are coming out with new and cost effective ideas of producing low emission vehicles.

External changes (government, politics, taxes, Steel Prices etc)

Thank you