How Tesla creates Creative Innovations

This article is a submission for the Techsaucier of the Year 2018, written by Kamolporn Werawutiwong.

Nowadays, we all know “Tesla” whose owner is Elon Musk. He is famous for creating creative innovations and startups such as Paypal, Space-X and including Tesla. With his imaginative and persistent characteristics mingling with his passion to change the world ecosystem, he creates “Tesla” which was aimed to reduce the pollutions from cars and generated a sustainable transport. Behind the successful and innovative company, there are some crucial factors that analyzed by its corporate innovation systems.

Photo: Business Insider

What is Corporate Innovation Systems?

Corporate Innovation System defines the core element and success of the innovations generated. Tesla creative innovations comprise of 5 elements. There are Leadership and Management, Organization and People, Process, Strategic Alignment and Culture.

What is Tesla’s Leadership and Management?

Elon Musk, the owner of Tesla, leads his employees by indoctrinating innovative problem solving skills to let every employee think outside the box and always eager to seek future trends. Elon Musk also lets his employees share their ideas freely and this could generate such a marvelous innovation in the company. Moreover, he also scales the leadership team to create synergy within organization.

Photo: Entrepreneur

How Tesla’s Organization and People be like?

Tesla’s organizational structure is basically Centralization with function-based hierarchy. This makes every internal decision and communication within organization flow swiftly. Tesla people are mixed with different kinds of cultures. This makes Tesla have worldwide cultures within organization and generates advanced innovation as well.

What about the Processes?

One of the greatest processes that Tesla does is changing the car engine from oil fuel into electrical cars. This could make the world more sustainable and energy saving. Tesla production processes such as Roadster model are also well known for “Best Innovation Award” as published by the TIME magazine. Elon Musk positions his brand by putting Tesla cars in the high-end department store in order to gain higher brand awareness and high market shares. Furthermore, Tesla innovations also come up with its AI technology that let its customers to drive with the autopilot system which in the long run could lessen a car accident.

Photo: BadFive

Strategic Alignment also plays a role

We all know that strategy is one of the key success factors in businesses. Tesla was created with Innovation strategy and Strategic Talent Management. Within the organization, research & development and investment in technologies are high in order to gain customer satisfactions. Tesla employees are well-trained and developed to think innovatively.

Corporate Culture upholds Corporate Innovations

Building friendly environment at work could lead employees to have creative ideas and motivate them to enjoy working. Training and developing employees makes them feel a part of an organization and makes them have skills and expertise to think innovatively and create something new in the organization.

Overall, basically corporate innovations are created with many indispensable factors. Part of the success innovations not only come from well-organized and well managed teams but also from the 5 elements factor. Tesla, a successful company, also uses the 5 elements to create creative innovations and become a leading startup company.

References

1000ventures

Panmore

Tesla

This is a guest post by Kamolporn Werawutiwong 4th Year Student at Thammasat University.