Innovation in automotive telematics services: characteristics of the field and management principles

Abstract

The growing role of innovation in the strategy of car manufacturers leads them to relentlessly look for new sources of differentiation. In this way, telematics, a suite of technologies centred on communications systems within cars, is expected to bolster the car industry by offering a new stream of revenues. This article focuses on the impact of this technology on design organisation. In the first part, we demonstrate that telematics is a radical innovation for automotive industry. Therefore, traditional design models, such as heavyweight project management, are unsuitable. Next, the paper studies the organisation adopted by a European car manufacturer in the light of recent research on the management of innovation.

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