9-1 Project Submission: Organizational Structure And Culture DUE TODAY In this project, you will demonstrate your mastery of the following competency: E


In this project, you will demonstrate your mastery of the following competency:

  • Evaluate creative and innovative organizational structures
  • Recommend alternative innovations to solve an internal or market need
  • Implement creative and innovative processes within an organization


You work as a middle manager for one of the top U.S. producers of luxury and mass-market automobiles and trucks.

The chief technology officer (CTO) of the company from the course scenario has been watching new technology developments that the company could integrate into its vehicles to enhance the usefulness of and access to the data acquired by the many digital sensors that have been integrated into vehicle subsystems over the past 20–30 years. The technology trend of particular interest is the internet of things (IoT)—the interconnection of embedded devices, such as sensors and computers, over the internet. By taking advantage of this trend, the CTO believes the company can seize an opportunity to provide better service and predictive maintenance to its customers, improving customer satisfaction and adding additional revenue streams.

Based on briefings by the CTO, senior management has decided to implement IoT in its product line. Your CTO has asked you to lead a cross-functional team to take this initiative forward. Your first task is to make a recommendation for how the company should approach this business problem. Do you recommend using incremental or discontinuous (that is, slow or fast) innovation? Specifically:

Should the company…

  1. Design a completely new product line, based on the new technology (discontinuous innovation)


  1. Add new technology features into one model and then incrementally into the broader product line (incremental innovation)

The recommendation you and your team make is an important first step in pursuing this new technology.

In Milestone One, you and your team defined what that innovation looked like: would it be disruptive (new product line) or incremental (new features in one existing product)? 

In Milestone Two, you developed a strategy plan and a high-level business model. You’ve shared these with various stakeholders, and they are in agreement with your assessment of how best to get to market with this IoT innovation, which will allow the company to be competitive. 

Now, the CTO has asked you to come up with a proposed organizational structure that will support the innovation implementation. In this way, you will be assisting in making the innovation sustainable for the company from the course scenario. Companies that are innovative must make sure they have structured the organization in a way that supports innovation, and a key component of innovation is keeping track of what their customers want in terms of products and services.


Complete each of the three parts of this project. Use your slides from Milestone One, your document from Milestone Two, and feedback on Milestone One and Milestone Two to complete the first two parts of your presentation. You can use the resources in the Supporting Materials section (below) for any other information you will need to complete your project.

Part One: Innovation Approach

In this section, share your revised slides from Milestone One and make your recommendation for the innovation approach you think the company should pursue. Ensure this section includes the following information: 

  1. Explain potential risks and benefits for options A and B.
    • Overview (1 slide): Present the business problem and options A and B.
    • Option A (1–2 slides): Explain at least two potential risks and benefits for option A.
    • Option B (1–2 slides): Explain at least two potential risks and benefits for option B.
  2. Compare your competition’s products and services.
    • Competitors: (3–4 slides): Evaluate the competitors’ current products and services.
      • What are your competitors’ current products and services?
      • Are your competitors expanding in the current market? Explain how this impacts their market strength.
  3. Analyze your company’s capability to pursue the innovation.
    • Complete a partial gap analysis (2 slides):
      • Does the company own the technology, or does it need to be purchased?
      • How is the technology currently being used in today’s products and services?
      • What type of technology is available to purchase?
  4. Recommend the innovation approach your company should pursue.
    • Innovation Approach (2 slides): Explain which innovation approach you are recommending and why.
    • Consider the different stakeholders (research and development [R&D], marketing, finance) while communicating your recommendations.
      • Include a description of the incremental or discontinuous product that you are recommending for R&D.
      • Include the sales forecasts for marketing.
      • Include a financial snapshot for finance.

Part Two: Strategic Plan

In this section, share your revised paper from Milestone Two, which provides an overview of your competitors’ position in the marketplace, the available and future marketplace, and a plan for how to address a change in business conditions. Ensure this section includes the following information.

  1. Analyze the competitors’ relative strengths in the marketplace. Use Power BI to create charts on the growth rates. 
    • What is the growth rate of each competitor? 
    • How much of the market does each competitor now own? Do you see a trend of gaining or losing market share? 
    • Determine each competitor’s market strength by looking at the financials for each competitor. 
  2. Explain how your company’s market share compares to your competitors’. Use Power BI to create charts on your and your competitors’ market share.
    • Is your company gaining or losing market share?
    • What is your company’s growth potential in the industry? 
    • How do your company’s financials look compared to your competitors’?
  3. Identify future potential total available market (TAM) and growth for 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 CAGR for IoT-connected cars and light trucks?
  4. 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 you?
  5. Describe the steps your company needs to take from concept outline to launch.
    • 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?

Part Three: Organizational Structure and Culture Report

Based on your analysis of the organization’s structure and culture, share recommendations for changing its structure and culture to be more conducive to innovation.

  1. Describe the current organizational structure’s impact on innovation.
    • How does your company’s organizational structure support innovation?
    • How effective is the current structure in addressing changes in market demand?
  2. Recommend changes to the current organizational structure.
    • How does the new structure support innovation?
    • How will your recommended changes make the enterprise more responsive to market demand?
  3. Explain how organizational changes support a culture of innovation.
    • In what ways does the current culture work against innovation?
    • How does the new structure support a culture of innovation?

What to Submit

To complete this project, you must submit the following three items:

I. Innovation Approach Presentation

Submit a 10- to 13-slide PowerPoint presentation with detailed speaker notes that highlight the important points you want to emphasize to senior management on your recommendation for an innovation approach. Use the feedback you received on Milestone One to revise your original presentation. If you include references, they should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations.

II. Strategic Plan Report

Submit a Word document of 5–8 pages, devoting 1 page to each critical element described above in Part 2 along with an introduction and a short executive summary. Use the feedback you received on Milestone Two to revise your original report. Sources should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations.

III. Organizational Structure and Culture Report  

Submit a 5- to 8-page Word document using 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style. Consult the Shapiro Library APA Style Guide for more information on citations. 

Supporting Materials

The following resources support your work on the project:

CTO Brief

Use this to understand the importance of connected cars to your company and its product offerings. This resource also describes incremental innovation and discontinuous innovation options. 

Comparative Product Plans

Use this to understand the current product offerings of your company and three of its competitors. 

Comparative Growth Data

This provides current market share and revenue data for your company and three of its competitors. Projections for 2030 are also provided. 

Comparative Operating Statistics

This provides financial data including net income and assets for your company and three of its competitors. 

Organization Overview

This describes the organizational structure and some aspects of the culture of your company. 


Milestone Two-Strategic Plan

Deyanira Diaz

Southern New Hampshire University

MBA 580: Innov/Strat High-Perfom Orgs


Competitors’ Relative Strengths

The percentage change of a certain variable over time is referred to as growth rates (Chen, 2021). Using the factors of market share of IoT connected vehicles; we can determine our position and predict where we could be by 2030. According to current analyzed market share, the top three rivalries will likely maintain their percentage until 2030, with no major increase or decline. Our company, on the other hand, has seen a substantial drop in market share while retaining a nearly consistent market position in cars and trucks industry.

VW and Toyota have robust financial positions, with net income (NI) above $16 billion, compared to $6.1B for BMW and $0.9B for our firm. With $147.4B and $190.8B in equity, consistently, these two corporations have the most revenue. While we have more assets than BMW, we also have much more responsibilities, subsequent to us having the lowest equity of $39.9 billion related to BMW’s $72.5B.

· The four businesses’ combined market share for vehicles and trucks is 27 percent presently and 26.47 percent in 2030.

· Volkswagen and Toyota each have a market share of somewhat more than 8.50 percent, while our firm has 5.80 percent and BMW has 3.91 percent.

· From now through 2030, all four automakers keep the same core market share.

· The total market share of the four companies for autonomous cars and trucks is 34.50 percent now and 26.87 percent in 2030.

· Volkswagen now has the bulk of the market and will continue to have a significant piece of it in 2030.

· Until 2030, Toyota and BMW will retain a significant chunk of their market share.

· From now until 2030, our firm loses a large market share.

Company’s Market Share

The expectation is that we might lose a significant market share in the IoT-connected vehicles industry between now and 2030, while mostly upholding our position. IoT enabled vehicles extra safety features like car notifications to drivers on traffic, accidents, and other dangers because they have internet connections (autoconnectedcar.com, 2021). Safety, diagnostics, entertainment, and navigation utilities are all available in connected automobiles. We will remain to lose market share if our cars’ future stays unchanged while our rivals add more autonomous capabilities in their products.

Our current financial state puts us at a shortcoming since we have inadequate funds to capitalize in large-scale, discontinuous innovation. Toyota and Volkswagen are both fiscally proficient of making noteworthy investments in vehicle technology. We must however, work with what we have, as we only have $0.9 billion in net income, or risk trailing behind in market share. We will be capable of making persistent adjustments to the present fleet of automobiles while applying our in-house methodological skills with incremental innovative method. This method does not need a large upfront spending and allows us to sustain, if not grow, market share.

The cost of periodic upgrades to older models is already factored into the operational budget, so no additional funding is necessary to keep the vehicles technologically advanced. With vehicle developments based on customer desire, we also expect to increase sales and earnings in current models while maintaining our market position and maybe increasing market share. By implementing little but important vehicle adjustments, we reduce our overall risk as well as our financial and sustainability concerns (masschallenge.org, April 2021). With minor changes to current automobiles, we will be able to increase product diversity and allow customers to absorb new technologies more readily.

Potential Total Available Market

The total income obtainable for the product over the whole market, comprising of substitutes, is the theoretical total available market (TAM), presumptuous of a 100% market share (corporatefinanceinstitute.com, 2021). Cars and trucks have a global TAM of $3,227.70 billion, while IoT-connected automobiles have a TAM of $53.9 billion. Cars and truck revenues are expected to reach $4,810.0 billion in 2030, while technologically connected cars and trucks revenues are expected to reach $510.07 billion.

Revenues from automobiles are probable to rise by $1,582.30 billion, while revenues from IoT-connected vehicles are expected to rise by $456.17 billion. While IoT-connected vehicles have shown substantial growth over time, those without the technology continue to have the highest dollar sales growth.

The yearly gain or loss on an investment is evaluated using the compound annual growth rate (CAGR), which presents the average growth rate (learn.robinhood.com, 2021). The global CAGR for automobiles is expected to be 4.10 percent over the next ten years, while the CAGR for those connected with IoT is expected to be 25.20 percent.

When making comparisons based on to competitors’ data, VW is expected to grow at a rate that is 0.20 percent greater than global estimations, with a predicted CAGR of 4.30% for cars and trucks over the next ten years, which is 0.20 percent higher than global projections, and a CAGR of 23.20% for IoT, which is 2% lower than global projections. BMW has a marginally higher-than-expected projected CAGR of 25.50% for IoT connected vehicles, which is 0.30% higher than forecasts, and a slightly lower-than-expected projected CAGR of 3.70% for other automobiles, which is just 0.40 percent lower than forecasts worldwide. BMW has the fastest predicted increase based on current ranks, but having the lowest forecast ten-year revenue.

Business Conditions Change

New items on the market may elicit a sluggish response from consumers. Marketing, however, plays a vital role in assessing customer’s reaction to the new products. Practical limitations such as use, value, and risk exist, as well as psychological barriers such as tradition and image (Talwar et.al, 2020). Understanding the target market and channeling organization’s effort to the targeted segment is significant for the success of innovation.

Customers must be included and surveyed about their current insights about autonomous and semi-autonomous vehicles in order to know their doubts and the factors that are most noteworthy to them. Consumers are frequently concerned about the safety of technology change (Konig & Neumayr, 2017).

If we identify the element that customers desire and apply incremental innovation, we can successfully pivot current technology to meet consumer demand. By gradually introducing new features to the current fleet line, we have the opportunity to establish a well-known brand name that customers will trust to be secure. When semi-autonomous and autonomous vehicles become accessible, clients who have previously used IoT technology in their vehicles are more likely to accept them. R&D will be crucial in adjusting current designs to match customer demand, concentrating on what consumers want and are ready to buy, in addition to the marketing team.

In order to preserve or acquire market share, we must examine the competition, define consumer expectations, differentiate ourselves from competitors, increase marketing efforts, enhance customer service for present consumers, and target new customers (marketingdonut.co.uk, 2021). We also need to get our cutting-edge technologies to market quickly and ahead of the competition.

Current Outline to Launch

When introducing incremental technical developments into current fleet automobiles, the focus will be on new product concepts. Discontinuous innovations, as previously said, are rare events, yet they have the ability to change the speed and boundaries of innovation. The Stage-Gate approach will be used to screen creative technical concepts that will fit consumer demands based on pre-determined standards. We need to be adaptable and flexible, involving clients in the development process and continuously improving as necessary. The ideas will be submitted to concept testing after going through the first gate, which will decide whether the concept satisfies the customer’s wants and preferences. At this stage, we’ll decide whether to pursue the idea further, tweak or pivot, or start over. A business case will be built as we progress to define the project and offer a development approach. Customers will examine a prototype, and marketing testing will be conducted to verify market practicability. Once the product has cleared the first four gates and phases, it will be ready to launch. This will comprise presenting the product to the market, advertising it to increase visibility, and generating demand from customers.

The incremental innovations have already been funded, and no further funds are necessary to finish them. To work on novel concepts, cross-functional innovation teams comprising members from several departments will be formed. The formation of these autonomous teams sponsored and trusted by management will reduce the period from concept to deployment since the teams will be focused on bringing consumer-wanted improvements into fleet automobiles. Ideas should go through these phases and be ready to launch 6 to 12 months after they are functional.


Autoconnectedcar.com. (2021). Definition of a connected car – what is the connected car? Defined. Retrieved from https://www.autoconnectedcar.com/definition-of-connected-carwhat-is-the-connected-car-defined/

Chen, J. (July 10, 2021). Growth Rates. Retrieved from https://www.investopedia.com/terms/g/growthrates.asp#:~:text=Growth%20rates%20refer%20to%20the,within%20a%20specific%20time%20period.&text=Expected%20forward-looking%20or%20trailing,growth%20rates%20used%20for%20analysis

Corporatefinanceinstitute.com. (2021). Total Addressable Market (TAM). Retrieved from https://corporatefinanceinstitute.com/resources/knowledge/strategy/total-addressablemarket-tam/

König, M., & Neumayr, L. (2017). Users’ resistance towards radical innovations: The case of the self-driving car. Transportation Research Part F: Psychology and Behaviour, 44, 42–52. https://doi-org.ezproxy.snhu.edu/10.1016/j.trf.2016.10.013

Learn.robinhood.com. (March 12, 2021). What is CAGR?. Retrieved from https://learn.robinhood.com/articles/7howbkVtNa0KyADL2mdXzS/what-is-cagr/

Marketingdonut.co.uk. (2021). Ten ways to keep ahead of the competition. Retrieved from https://www.marketingdonut.co.uk/marketing-strategy/ten-ways-to-keep-ahead-of-thecompetition

Masschallenge.org. (April 8, 2021). Incremental Innovations: What it is, Benefits and Best Practices. Retrieved from https://masschallenge.org/article/incremental-innovation

Talwar, S., Talwar, M., Kaur, P., & Dhir, A. (2020). Consumers’ resistance to digital innovations: A systematic review and framework development. Australasian Marketing Journal (AMJ)28(4), 286-299.

Market share percentage for connected cars and trucks now

Annual Cars & Light Trucks Revenue in 2020 (billions) TAM

Global Your Company BMW Toyota VW 3227.7 187.1 126.1 275.39999999999998 282.89999999999998

Annual Cars & Light Trucks Revenue in 2020 (billions) TAM

Global Your Company BMW Toyota VW 3227.7 187.1 126.1 275.39999999999998 282.89999999999998

Market share percentage for connected cars and trucks now

Annual Cars & Light Trucks Revenue in 2020 (billions) TAM

Global Your Company BMW Toyota VW 3227.7 187.1 126.1 275.39999999999998 282.89999999999998

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