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Suzuki 2022

#Organizational Design #Open Innovation #Design Thinking


Abstract

Established since 1920 and a well-known leading automobile company, Suzuki Motor Corporation, has been strong in making small automobiles worldwide. However, even with a competitive pricing strategy and reliable quality, Suzuki did not develop and prepared for the key technologies of self-driving and electric vehicles. Since Google and Tesla entered into the automobile industry, innovation of self-driving vehicles and electric vehicles had disrupted the global traditional automobile industry. However, just like other Japanese automobile companies, Suzuki mainly focused on production of hybrid vehicles and development of fuel cell vehicles, but lacked of information technologies and artificial intelligence. Suzuki realized that it was behind the modern automobile trend and must accelerate its innovation to keep its market share and competitive advantage. This case first introduced the history of Suzuki motor corporation and analyzed the development of the global automobile industry, then mainly discussed about Suzuki innovation activities: 1) It built a separate Yokohama research center from its headquarter in 1989, but it did not create disruptive products in the last 30 years. 2) In order to accelerate the innovation, Suzuki then started open innovation in Silicon Valley, scouting technologies, partnership with start-ups and venture capitals, bring entrepreneurial spirit and design thinking methodology training back to Suzuki and aim to change its culture. 3) Followed by Silicon Valley, Suzuki also built an open innovation center in Japan and India. 4) It also changed its organization and built separate teams to focus on electric vehicles, connected and autonomous vehicle development. In the last part, this case analyzed the past innovation activities and pointed out the challenges Suzuki is facing for the innovative activities of future.

Detailed information

Case ID 22-1079
Published 2022
Industry AUTOMOBILE
Analyzed Area Innovation
Pages 27
Language English
Teaching Note Attached