Innovation management

Nanthakumar Subramanian
M061320013

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

En. Juhairi Abdul Jamil

Detail of the person interview

En.Norhishamuddin
Annuar (Sham)

En. Juhairi
Abdul Jamil
(Hairi)

1. Age

48 years

45 years

2. Position

Manager

Vice Presiden (VP)

7 years

11 years

Manufacturing New model

Finance and

Centre

Information Tech.

3.

Working
experience

4. Department

What you understand

about the innovation?
Innovation is a
new invention
that is
different from
Sham
existing
or
previously
Hairi
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

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 doesnt
matter from upper
level or down level its
always appreciated

Hairi

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.

innovation process
in Honda

innovation product.
ASIMO

Honda
Jet

The Racing
Spirit

Home
Energy

Walk Assist

Inside
Honda
R&D

Where Does
Honda Innovate?
Hondas Known knownsMaking
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?
Hondas 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?
Hondas 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 Hondas humanoid Robot. Create
by Honda which take 20 years for the
development.
ASIMO is the worlds 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 autoson a single
assembly line, one after another, and switch a
line over to a newlydesigned 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 ableto 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, primarilyin designing new
vehicle models and features and in conceiving
freshtechniques for building them faster and
better
their successas managers is measured not by
quarter-to-quarter results but instead byhow
well they cultivate individual creativity
throughout the organization andhow 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 thatits
workers at all levels continually poke holes
in the status quo
often-spontaneous meetings known as
"waigaya" during whichdecisions, large and
small, are reevaluated and turned on their
head in hopesof finding a better strategic
or tactical choice

How Does Honda Do It?

Dont Rely on Robots
Honda's factories are purposefully the
mostlabor intensive in the auto industry,
employing robots only in areas that
aredangerous 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 analysis
STRENGTH

Quality and customer satisfaction

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

Progressing low emission vehicles

and alternative power sources.
Mid segment economical small
Cars.

WEAKNESSES

OPPORTUNITIES

High Price (latest technology being

used in Honda products it is
difficult to keep the prices low.)
Reputation for being
underpowered.

THREATS

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

Thank you