LSE (London

School of
Economics)

University of Birmingham University of

Durham University
Southampton University Reading

Doctorate in Business Administration

(DBA)
DBA LEADING INNOVATION CHANGE:
Part1: Company Report (Toyota)

Part2: The Evidence Review

Part3: Reflection for employability enhancement & leadership

For Assignment writing or Dissertation Help, Please Contact:

Dr. Sajid Saeed

+447762198474 (WhatsApp/Viber/imo)
Email: todrsaeed@gmail.com

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 PART I: COMPANY REPORT

Contents
I. Executive summary ............................................................................................ 1

II. The company ...................................................................................................... 2

III. Research purposes and process ........................................................................ 3

IV. Situational analysis on Toyota .......................................................................... 3

1. SWOT analysis ............................................................................................... 3

2. McKinsey 7S model ........................................................................................ 6

3. Risk assessment .............................................................................................. 8

4. Innovation Genome ........................................................................................ 8

5. Summary ......................................................................................................... 9

V. Conducting changes ......................................................................................... 10

1. Pentathlon framework ..................................................................................... 10

2. Kotter’s eight step change model application ............................................... 10

3. Evaluating impacts upon current business .................................................... 11

4. Risks of non-implementing the recommendations ........................................ 11

VI. Conclusions ....................................................................................................... 12

Bibliography…………………………………………………………………………25

APPENDIX………………………………………………………………………….28

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 Table of figures

Figure 1: Toyota production house by Chen (n.d.) ........................................................ 7

Figure 2: Innovative Genome......................................................................................... 9
Figure 3: Pentathlon model for Toyota ........................................................................ 10
Figure 4: Application on Toyota changes from Kotter’s eight step model .................. 11
Figure 5: Framework of change analysis ..................................................................... 14
Figure 6: SWOT analysis (Kotler, Philip and Gary Armstrong, 2015) ....................... 16
Figure 7: McKinsey’s 7S framework (Ravanfar, 2015)............................................... 17
Figure 8: Pentathlon framework .................................................................................. 18
Figure 9: Kotter’s Eight Step change model ................................................................ 19
Figure 10: The Genome model by the dean of innovation (n.d.) ................................. 20

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I. Executive summary
Over the last five year, the global automobile makers have been quite
challenged. In term of financial data, people can see report that worldwide sales was
up 4.8% and profit margins are higher than ever before. However, the performance
measurers tells us different stories of only 5.5% for total shareholder return, and 4%
for the top 10 original equipment manufacturers, which is approximately half of the
industry’s cost of capital. As for practical actions, the withdrawal of large number of
cars and trucks from the big brands seriously influenced the global car market. Price
of car has been fluctuated due to change in fuel price and technology development.
According to experts’ researches, this situation can be changed further with the
appearance of higher technology leading to future introduction of more convenient
cars. Currently, few carmakers have been developing new types of car: electric cars,
self-driving cars, and innovations on digital service, novel powertrains and
connectivity systems for new series of cars – innovative models.
Toyota is still loyal with its traditional cars with concentration on improving
quality and safety. The high qualification of its human resource help the company
easily resolve any problem and keep it as the world top brand (Forbes, 2017).
However, it is difficult for Toyota when others have developing innovative cars (self-
driving cars and electric cars) with new innovative parts, components, and functions,
while those things are not clear in its future plans. In fact, innovative cars as well as
any innovative equipment require the high volume of financial support, time,
research, and dedication. It is natural that scientific and technological competition is
more intensive than ever, and can reshapes traditional automobile industry in the
future and then any players can be losers if they do not update innovative things.
It is undeniable that investment in innovative cars is very expensive – “as
much as 20 percent greater than the cost of the previous generation of automobiles”
(Rich Parkin, Reid Wilk, Evan Hirsh, and Akshay Singh, 2017). Hence, the company
should reconsider its financial structure, research team, and technical talent pool of its
personnel. Moreover, its strategic plan should be strengthening its position in high
income market segments, which can afford for innovative cars. This is chance to
improve its performance and expend its market share as well as using another
resources effectively. If the company invest more in developing innovative software
for better digital service, more qualified novel powertrains and greater connectivity
systems or autonomous cars, it can get more market share, and increase the number of
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loyalty customers. Naturally, customers will get more benefit from more convenient
cars with competitive price. The speed is higher; cars are safer with full-equipped
components.
II. The company
Industry context
Toyota is one of the most important carmakers of Japan as well as of the
world. Thus, every change of the global economy will directly impact on its operation
and profit. In particular, the fluctuation of fuel price recent years has brought negative
and positive influences on production of Toyota because it is operating in both buses
and trucks segments where they require more fuel and hybrid cars where they
consume less fuel. Some other manufacturers have tended to diversify its product line
to minimise loses causing from this change. Some are quite reluctant to change
toward other types due to high expenses on this element. Accordingly, the appearance
of new entrants like Google on self-driving cars and the Brother of technology Tesla
with electric car projects have been pushing this market more intensive. Although
market of the BRIC countries is about to grow in few years which could increase
demand on using motor vehicles, the North America can be slower because it
currently is reaching its peak. The situation is warning that automobile manufacturers
have no choice to improve its products toward friendly environment and updating the
new technology or change into autonomous segment.
Toyota corporate overview
Toyota or Toyota Motor Corporation is one of the world’s leading automotive
manufacturers. The current president and representative director is Akio Toyoda.
According to Interbrand (2016) and Forbes (2016), the company is ranked the fifth
and the sixth of the world most valuable brand with its brand value of US$53.6 billion
and US$42.1 billion, subsequently. It operates under four different brand including
Daihatsu, Hino, Lexus, and Toyota, but Toyota is the most productive one placed the
first in Japan and the world third after its competitors of General Motors and Ford.
The company also is the world’s market leader in sales of hybrid electric vehicles
with over 6 million units of Prius family sold in the world in the first month of 2017.
Its vehicles and components are manufactured in 26 different countries and
regions and over 170 countries/ regions are markets of Toyota, primarily North
America. Its capital of March 2016 was 635 billion yen and the company revenue was
increasing from 27.235 trillion in 2015 to 28.403 trillion Yen, about 4.3%, while its
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profit was increasing 6.4% in 2016. The current number of its employees is 364,450
(FT, 2017).
III. Research purposes and process
This report aims at identifying requirements for innovative changes in the
organisation. First of all, company situations are evaluated based on current
performance, productivity, market position as well as main opportunities and
challenges. Then, some essential suggestions are proposed. Third, some evaluations
on risks of none modifications are given. Lastly, the study will evaluate the results of
conducting changes in the company.
The investigation is carried out based on the usages of economic models of
SWOT, McKinsey 7S, innovation and Pentathlon. Then, change applications in the
company are recommended through applying Kotter’s Eight step model with
evaluation on risks of non-implementation of those changes.
IV. Situational analysis on Toyota
1. SWOT analysis
Strengths
It is undeniable that Toyota is the most valuable brand recognition in the world
and one of the strongest international market positions. According to Forbes (2017),
Toyota won over its largest competitor Volkswagen to step up the first increasing
7.8% YOY with over 3.5 million units. Moreover, it has strong markets around the
world with 33% consolidated vehicle sales in North America, followed by 24% in its
home country, 15% in Asia like Indonesia, Malaysia, Philippines, Taiwan and India,
10% in Europe including western Europe and Russia, and 18% in FY2016 (Parker,
2016). Those numbers give it significantly competitive advantages in the international
market.
Furthermore, its solid market position across the world comes from its strong
concentration on research and development with 17 research facilities in 8 countries.
This is aiming at improving its quality, safety and friendly environment as well as
updating new technologies for its new product lines. According to TOYOTA report
(2017), the company efficiently spent US$9.37 billion in FY2016 to develop the best-
selling hybrid vehicles. Its 5.7 million Prius models have been sold as of May 2016,
which is much higher than its all rivals. It means that hybrid car is its strongest
product line which is impossible to be replaced by its competitors.

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 Its production system is also very effective with concept of Just in Time
toward the goal of highest quality, lowest cost, and shortest lead time (Lean Enterprise
Institute, 2016). This system has brought to Toyota highest profit margin of 8.1%,
which was higher than its strongest competitors of 0% from Volkswagen and 6.4%
from General Motor.
Weaknesses
It is obvious that its brand portfolio is not as various as its competitors. Toyota
operates under four different names of Hino, Daihatsu, Lexus and Toyota as
mentioned above, while Volkswagen has 12 brands and General Motors operates
under 10 different brands. This hole makes it be impossible to satisfy needs of various
customers and the negative feedbacks on each brand make it suffer considerably.
Second, its large products have had significantly negative impacts on brand
image. Series of Toyota recalls has been happening in 2016 alone. Its best hybrid
Prius cars have been withdrawn across the world with 212 thousands in its home and
94 thousands in North America due to its faulty brakes affecting life and death
problems of drivers and passengers (KAGEYAMA, 2016). Accordingly, seatbelt
issues have made Toyota recall 2.87 million RAV4 sport models. This has been
raising safety problems of Toyota when it reminds publicity of recalling 5.8 million
cars with faulty airbags inflators (SOBLE, 2016). Additionally, the company had to
recall 750 thousands Sienna cars in its largest market of North America and
compensate US$3.4 billion to customers due to corrosion problems (DuVall, 2016).
Many frequent serious recalls have been resulting in reducing its value brand as well
as losing trust in customers.
Moreover, sales performance of Toyota is quite small in China market.
According to Jurevicius (2016), although China is the largest market for all carmakers
with above 25 million cars traded every year; its market share is only 4.5%. This is
too small in comparisons to its competitors such as Volkswagen with 14% and
General Motors with 14.9% as well as other 66.6%. Thus, Toyota needs more
strategies to deploy and develop this significantly potential market.
The biggest weakness of the organisation is reluctant investment in innovate
autonomous vehicle technology. Currently, all of its plans are focusing on safety
driving and are no signs of autonomous cars which its competitors like Tesla, Ford
and General Motors are aiming at. Its competence and technology in this field are
limited. In the future, this can be main reason leading Toyota to stay behind its rivals.
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 Opportunities
If fuel price increases in the future, it will be a chance for the company to
strengthen its hybrid vehicle line-ups. The fact that SUVs and pickup trucks consume
more fuel and many carmakers benefits from that. However, it is expected that fuel
price is about to rise in the near future, then demand on fuel-saving car is going to
rise. Hence, hybrid cars of Toyota are one of the best choices for customers.
Another potential and profitable market is autonomous cars are on demand.
Many great names like Tesla and Google are working on it with billions dollar, but
none of them has officially sold this type of cars on the market. This is an open
chance for all players and Toyota with years and year’s experiences on the
automobiles should have a real try on it with more researches and investment in
necessary technologies and skills to ascertain its international leading position.
It is clear that Toyota is updating its product every 4 to 5 years meet customer
demands.
Threats
The international automobile market is very competitive and is on the rise due
to technology changes, new players and saturation of the large markets. China
pronounces that it is ready to provide similar quality of product with lower prices.
According to economic cycle, the U.S market is about to fall in the few years because
it is peaking at the moment.
As for new entrants, Toyota seems to concern about Tesla when this
corporation is developing electric cars. Although it has not been sold in the public
market, demand of customers on this car is very large as fuel price increases. It is
additionally very tough for Toyota when Google enters the automobile market and is
developing self-driving cars.
Increase in Japanese Yen exchange rate can make Toyota’s profit fall
considerably because its revenues and profit have been calculated in Japanese Yen
with 48% of foreign currencies changed into its own currency. Its profit is entirely up
to currency exchange rate. The strength of Japanese Yen against the U.S. dollar or
Europe currency could threaten to its profit.
Natural disasters are always bringing adverse impacts on Japanese economy in
general and automobile field in particular. Manufacturers and suppliers of Toyota
mainly come from Japan, Thailand, China, and Indonesia where earthquakes,
tsunamis and flooding happen frequently. Thus, this company has to suffer a huge loss
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every year. It is unforgettable that the worst hit earthquakes in 2011 in Japan and
major floods in Thailand every year resulted in postponing its production process and
loss thousands of dollar to make up for its damages.
2. McKinsey 7S model
Strategy
KAIZEN is the main strategic target of Toyota. It means keeping its
improvement in product quality in every step of manufacturing. The company
operates on the basis of staff coordination toward improvement on quality of its
products, its productivity and competitiveness. Team work actions can create greater
jobs with better ideas in short time. Safety, environment protection, and innovation-
updating are also the core targets of its all strategies. Thus, Toyota has been
developing the most competitive hybrid car, which could consume different types of
power and be friendly to environment. Its innovative products are also revealed
through testing innovation usages regularly with team of designers from different
areas and using the fabrication technology of engines. Although this strategy applies
through the whole process from ideas to introducing products to its markets, many
mistakes about safety has still happening resulting in series of automobile recalls in
recent years. Moreover, the hybrid is at stake when its competitors are penetrating into
autonomous cars with the most innovative software.
Structure
The Toyota structure used to be slow with centralisation power. All decisions
had gone to headquarter in Japan with none of communication among its individual
branches. However, the changes in 2013 have made it more flexible and productive in
making decision and problem-solving. Currently, its structure is divided into three.
First, global hierarchy gives power to regional heads to make sure instant responds to
problems. It reduces the power of the main head. Second, geographic divisions help
Toyota develop its products and services being appropriate with local features. The
company has eight branches in the following areas: Japan, North America, Europe,
East Asia and Oceania, China, Asia and Middle East, Africa, and Latin America and
Caribbean (Hierarchy Structure, n.d.). The most important division supporting Toyota
develop its brand and product lines is its four product-based one including Lexus
international, Toyota No.1 for operations in North America, Europe and Japan,
Toyota No.2 for operations in all other regions, and Unit Centre (Hierarchy Structure,
n.d.)
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 Systems
According to Toyota (n.d.), its production system is working under two main
concepts named “Jidoka” and “Just-in-Time”. The first one means identification of
problems and automation with human touch. In order to introduce the qualified
products, a machine can stop when it detects mistakes in production process and only
transfer standard ones to the next process. The second aims at productivity
improvement. To make sure delivering a completed product to customer quickest, a
vehicle has been built with few steps. First, a production guideline has to be allotted
and then the assembly line has to be ready with all necessary components. Thirdly,
replacing the old parts is carried on. Lastly, the preceding part has to be ready and
retrieved parts are moved to next step. Also, the production system of Toyota really
highly appreciates avoiding mistakes and preventing them from happening again. In
the process of production, all decisions have to be made by team work; and every
process is transparent.

Figure 1: Toyota production house by Chen (n.d.)

Shared values
Mutual trust is the Toyota culture and common value of both the company and
employees. The company takes care of most personal benefits of its employees such
as safety, working environment, work progress, and rights and chances to be
promoted equally. The company pays heed attention to quality of products, finance
return, success, and society contribution. Both will do their best to reach common
goals and benefits will compensate for what members do (Sosnovskikh, 2016).

7
Mutual trust also reveals in team work in daily working life and production process.
Each team will be 5 members maximum to easily manage to resolve issues and keep
mutual trust spirit (Hoseus and Liker, 2008).
Skills
Elementary requirements to its personnel are communication skills, English
usage, and computer skills, certain field-related qualifications as well. Before starting
their job at Toyota, they have to join apprenticeship program and required training
classes. In some technical fields, they are required to have experience at least 6
months.
Staff
According to the latest statistics of FT (2017), the number of Toyota staff is
364,450 across the world working based on the mutual trust and respect. It is highly
appreciated the stability of its employment to avoid termination and dismissal. Thus,
all staff have chance to take advantage of their abilities, skills as well as creativity.
Style
Toyota style is team-working based on the given regulations. The company is
strict from working time to working behaviour.
3. Risk assessment
Based on studying Toyota and auto industry, it can be said that innovative cars
or autonomous cars are consuming time and finance as well as technical talents. Its
competitors and new entrants are considering attacking this segment by investing in
researching electric cars and self-driving cars as well as developing innovative
software for their own cars. Although this action is fairly challenging, it is rather
profitable. However, if Toyota were not starting from now, it would run after its
rivals, then its market share would be narrowed down and its return would be reduced
because this investment is time-consuming to do research and develop.
4. Innovation Genome
Based on the above analysis, it is clear that Toyota Corporation mostly
responds to red box. Every change of its vehicles is very systematic, careful, and
practical. Also, its innovation things are applied through testing daily. The red is
revealed through its production system as well such as its great concentration on
safety and carefulness in every single step for the introduction of one product.

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 Figure 2: Innovative Genome

COLLABORATE CREATE
DO THINGS THAT LAST DO NEW THINGS

COMPLETE
DO THINGS NOW
CONTROL
DO THINGS RIGHT

5. Summary

In conclusion, every step of Toyota has been conducted carefully and

practically so that it is always ranked the top three international brands. Moreover, the
dedication of the highly qualified employees and the leading technical personnel
allows the company to create and produce the good vehicles and reasonable price. All
issues have been solved quickly and systematically based on team-work. Although its
production system is the world leading technological implementation under a rigid
control, there have had many recalls in the past few years. Thus, it needs to develop
new innovative software to improve it vehicles and conduct researches and develop
autonomous cars.

It is true that innovation investment consumes more money and times, but it is
normal trend of technology. In order to keep the world top automobile maker, it is
compulsory for Toyota to update technology changes in this highly competitive
industry. Training more technical staff in trend of autonomous vehicles is also
necessary to make sure of its efficient production in the future.

The autonomous vehicles are completely new segment requiring huge amount
of finance source in accompany with risks so that the company has to take careful
considerations. Another thing contributing to success of this investment is market
share. Toyota should expand its market share, especially market segments with high
income.

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V. Conducting changes
This part focuses on recommending the company develop new innovative
software for its cars and beginning doing research on autonomous cars like its
competitors. This step aims at increasing company performance and manufacturing
productively and make sure that it keeps track of market changes.
1. Pentathlon framework
To improve Toyota performance and maximise its competitive advantages,
Pentathlon model, first of all, has been applied to evaluate its innovation process to
introduce new products.
Figure 3: Pentathlon model for Toyota
Listening
Internal INNOVATION STRATEGY
Tech - Value
proposition
Base for customers
Priortisation Implementation (qualified
Competitors’ moves

What to choose? products &

Its competitive

Autonomous cars? less price &

advantages?

technology?

External autonomous
What new

Innovative software? Applying Kotter’s

Ideas

cars)
Reducing operational cost
Tech eight step change model
- Innovative
Base process

PEOPLE AND CORPORATION - Cost model

R----------------------------------------------D-------------------

2. Kotter’s eight step change model application

After implementing the above models to analysis Toyota situation, a model of
eight steps for changes of the company has been introduced based on the model of
Kotter’s eight steps. The most effective length of time to implement it is within a year.

10
 Figure 4: Application on Toyota changes from Kotter’s eight step model

- Evaluating Toyota
advantages
- Considering new
tech cars
- Decision –making on - Researching on - Grouping technical
producing autonomous innovative software personnel on
cars and developing autonomous cars
new software - Finance source
- Identifying time and
short time outcomes

- Basic knowledge of
autonomous cars and
Change & - Competitors
innovative software evaluation on
formed autonomous cars &
Innovation innovative software
- Evaluating its
experience on new tech

- Implementing the
first researches on
autonomous cars - Regular meetings to
including detailed discuss technical issues,
instructions
- Producing new ideas, advantages and
- Technical personnel
software disadvantages of auto
training on new tech
- Building up a strict & cars and new software
united system for new
operations

3. Evaluating impacts upon current business

It is undeniable that application of new software or researching on autonomous
cars will have both negative and positive effects on practices of Toyota. In short term,
the company has to spend huge amount of money on this new segment as well as train
more qualified technicians. Some risks can come suddenly due to the first experience
in autonomous segment. However, this investment in long term is rather profitable
and customers directly benefit from these advances such as high-speed cars with fuel-
saving as well as safer and more convenient equipment. Thus, the company can attract
more customers and increasing loyalty of existing customers. Then, its market share is
expanded and the company will operate more profitable for both shareholders and
investors.
4. Risks of non-implementing the recommendations
As mentioned above, automobile market is under serious problems through
critical performance indicators more than people think. The autonomous cars or
innovation-related challenges can restructure traditional car market in the future.
Position of automobile carmakers can be ranked again. Opportunities and productivity
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have just given to players who are ready to take risks. Consequently, customers have
benefited the most from services to quality of products and then they will choose
player who can give them much more benefit. Hence, if these suggestions are not
implemented, the company will lose its market share, lose its customers, and give
opportunities for its competitors. Moreover, returns on its shareholder, investors and
capital have been stepped down day by day.
VI. Conclusions
It is expected that automobile manufacturers are concerning about changes in
automobile industry in the next few years. This competition has been becoming
fiercer than ever with the presence of new innovative softwares for autonomous cars.
This new technology will identify who is really Big Brother of auto industry in this
century. The proposes of this report focus on improving company performance and
strengthening its position in the world as well as enhancing the company to new steps
of modern technology.
Developing innovative software and researching and manufacturing
autonomous cars can be a great turn in automobile industry. This not only benefits for
company in terms of improving its performance, getting higher return, and widening
its market share and increasing in customer loyalty by selling them higher qualified
cars with the most innovative equipment but also allows operating cost be used
efficiently.

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 PART II: EVIDENCE REVIEW

I. Framework for analysis...................................................................................... 14

II. Research methodology ....................................................................................... 15

III. Literature review ................................................................................................ 15

1. SWOT analysis ............................................................................................... 15

2. McKinsey’s 7S model .................................................................................... 16

3. Pentathlon framework .................................................................................... 18

4. Kotter’s eight step change model ................................................................... 18

5. Business model innovation............................................................................. 19

6. Genome model ............................................................................................... 20

IV. Further DBA research perspectives ................................................................... 21

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I. Framework for analysis

It is essential for implementing change and innovation through improvements

on process and quality of automobiles to achieve better performance of company.
However, it has not ever been alignment due to invisible and unexpected factors.
Hence, the following models have been chosen carefully to analysing and applying
changes to the company.

Figure 5: Framework of change analysis

SWOT analysis

McKinsey’s 7S
framework

PENTATHLON INNOVATION INNOVATIVE

MODEL & GENOME
CHANGE

KOTTER’S EIGHT STEP

CHANGE MODEL

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II. Research methodology

Quantitative method has been mainly implemented to do research on Toyota.

Qualitative method is a number of interviews from focus groups to direct interviews
to get internal and external data and analysing them base on implementing SWOT,
McKinsey 7S, Genome and Pentathlon framework. SWOT identifies internal and
external factors which are supporting the company as well as harming its
improvements. Further, McKinsey’s 7S shows the need for innovation of the
company. The last two models clarify the important of the recommended innovations
to maximize effectiveness of company strategy and its competitive advantages.
Accordingly, the initiations on its changes are given according to Kotter’s eight step
model.

To avoid Toyota bias, the questionnaire has been compiled and handed out to
its random staff and managers as well as customers who have owned Toyota cars and
have not used it. Sixty eight duplicates have been delivered under the form of multiple
choices and open-ended questions.

Moreover, the reliability and validity of the questionnaire have been checked
by pilots with ten copies in advance. Then, any mistake and confusion has been
modified if necessary.

III. Literature review

1. SWOT analysis
SWOT analyses strengths, weaknesses (internal factors) and opportunities,
threatens (external factors) of the chosen company from perspective of audit (Philip
Kolter, Gary Armstrong, John Saunders and Veronica Wong, 1999). They also
determined that the company should identify the most reasonable and detrimental
factors with advanced plans because the more profit it gets, the risker it faces as well
as an ideal opportunity without threats is nearly impossible. Therefore, the company
has to list its relative powers which are features and capabilities that enable it to fulfil
its goals and minors preventing the business from achieving its targets and abilities in
comparison to its competitors. The main objectives of this model are to answer two
duo questions. First of all, how the company uses its strengths to maximize its
opportunities allowing the business to take advantages of environmental conditions to
success its strategic plans and get more profit and minimize its threats which are
15
unexpected things arising to curb competencies the organisation (Kotler, Philip and
Gary Armstrong, 2015). Secondly, Kotler and Armstrong (2015) stated how the
company overcomes its weaknesses that preclude it from maximizing its opportunities
and shows its flaws which turn its threats into reality.

Figure 6: SWOT analysis (Kotler, Philip and Gary Armstrong, 2015)

On the one hand, this model is a good guideline to build up targets for strategic
planning and outline future plans based on past and present data. Consequently, it tells
the business its capabilities and its incompetence and then it will know what they
should do to optimise its potential and overcome its challenges. On the other hand,
this tool is quite subjective and not a good prescription. It tends to simplify the
problem resulting in being able to overlook core contacts with the real market. The
information is too general and paying less attention to price fluctuations, materials,
quality control, government regulation, economic outlook and researches on new
markets. Thus, this model has to combine with other deeper analysis tools such as
McKinsey’s 7S model, Pentathlon tool and Genome to get better and stronger data for
the best plans of innovation and change.
2. McKinsey’s 7S model
The McKinsey’s 7S framework is used a management tool to help the
organisation successfully applying the strategic plans on its changes (C. Fleisher & B.
Bensoussan, 2007). They are aligned and mutual combination of seven interconnected
factors divided into “HardSs” and “Soft Ss” elements. If one of them changes, the rest
will change. The “Hard Ss” includes structure, strategy, and systems, while shared

16
values, skills, style and staff belong to the “Soft Ss” group which creates the sustained
competitive advantage for company (Pascale, 2011). The soft group is more difficult
to identify than the other because it is nearly intangible and cultural influence.

Figure 7: McKinsey’s 7S framework (Ravanfar, 2015)

The key point is coordination among seven factors as mentioned above, thus
the effectiveness of the company does not only depend on strategies and structure but
also takes into consideration of interacting seven elements. This could help improve
the performance of the firm and facilitate its changes with strategy implementation as
well as giving predictions on future changes within an organisation. However, this is a
static framework. It is hard for managers to accurately evaluate the degree of fit.
As for culture of the company, the united framework of both hard and soft
elements positively impact on the success of innovation. The core of innovation is
from human (staff, skills, and style). If human in a united structure working in one
flexible system with implementing suitable strategies knows how to take advantages
of internal and external sources, they can make wise decisions on efficiently
innovative process. The level of success is identified from competence of the
organisation in creating innovation culture among human resource and using effective
available sources of both tangibility and intangibility.

17
3. Pentathlon framework
Many methods can be implemented in process of research and development of
all organisations to improve their production process and quality of products with
higher technologies. However, some of them are “closed innovation” or rather
challenging to control. Thus, Pentathlon model is introduced to research and develop
an “open innovation” process where combination of external ideas and internal factors
is using effectively (Costello, n.d.).

Figure 8: Pentathlon framework

This model aims at minimising the risk of mistakes as ideas progress through
the “Innovation Funnel” with five core dynamics. First of all, the company should
listen to internal and external tech base and other information to generate ideas to
resolve its complexities and challenges in process of research. With those incomplete
data, the company should carry out selecting the best ideas which are prioritised and
suitable. Then, those ideas have been implemented to introduce to market with
completed products, processes, and services. An innovation strategy has been used in
the whole process of listening to new ideas, selection, and implementation. The most
important element is people and organisation. They take responsibility for controlling
risks and taking opportunities for the whole process for the introduction of any
product and service.
4. Kotter’s eight step change model
Most change of organisations has failed due to its incomplete approach to
comprehend the change through. The Kotter’s eight step model will help them see
holistic picture of change to improve its tactics as well as increasing its achievement
for changes.

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 Figure 9: Kotter’s Eight Step change model

There are eight steps to conduct transformation for any business. The first two
steps are core to change in terms of convincing the whole organisation about how
importantly and urgently it needs modification. This model also support a systemic
list to remind leaders in change process and the fifth step – action by removing
barriers- help leaders processing steps in a right direction. Furthermore, change is a
process so long that people are easy to be discouraged and the generate step is really
important to reenergise them to continue the later stages.
However, this model has some weaknesses. This is a “top down” model due to
experience of Kotter in large projects and corporations (Reynolds, 2015). Thus,
applications in small businesses may be need some appreciative requirements.
Besides, it is like mechanics. Practically, all projects and changes have to count on
human factors and external factors arising; although step-by-step is necessary
formula.
5. Business model innovation
Business model is critical to apply new technologies into production of any
business as well as meet demand of customers. There is direct relationship between
external demand and internal business model. In innovation process, any
transformation has been converted based on business model chosen by the company
which causes a set of questions to organisation (BCG, 2017). Taking innovation as an
example of what new technologies meet demands of consumers and what business

19
model transformation will be better, what source of finance can be used, and how to
reduce operational cost and produce higher quality products and services.
This model has two elements of the value proposition and the operating one
(BCG, 2009). The former one consists of target segments, product or service offering,
and revenue model. The later has value chain, cost model, and organisation. Those
above elements are considered as a ground for innovation which is competitive
advantage of all business in the century of changing technologies. The model tells that
organisations have to consider both internal and external factors to successfully
improve their business. The externals are demand of customers and market segments.
The internals are company sources such as finance allowance, human resource, and
revenue. Thus, innovation implementation really pays off when the company
effectively analyses and applies elements of business model.

6. Genome model
Genome is one of the most important models used generally across the world
to develop, apply and sustain change and innovation of thousands of corporations.

Figure 10: The Genome model by the dean of innovation (n.d.)

This model is divided into four quadrants including collaborate in yellow,

create in green, control in red and compete in blue. If any organisation tends to be
green innovator, they will become “orphans”. Similarly, red thinkers are “static
bureaucrats”. Thus, they need each other to complete the weaknesses of the others in
right time. In the first steps of growth, businesses should listen to green innovators
more and when they are getting larger, the role of red innovators are more
highlighted. Correspondingly, yellow and blue innovators need each other to reduce

20
competitive and revenue-obsessed features of the blue and hopeful and slow-moving
characteristics of the yellow (The Dean of Innovation, n.d.).
IV. Further DBA research perspectives

The research helped me understand the importance of application of

innovation to the development of any company, especially technical companies. This
is reason that car builders have to introduce new models every four or five years or
smart phone corporations have to release new phones every year. All benefits are
given to customers. From perspectives of business owners, they have to make right
decisions in right time to whether or not applying innovative technologies and giving
appropriate strategies to make sure achieving its goals.

In future researches, the above models can be the best choice for me to identify
innovation demand and its impacts on strategy application as well as how to
productively use innovations in certain conditions. However, it is all theory. I need
more practical jobs to maximise the effectiveness of innovation in different situations.
Also, the real challenges can help me apply right models for right situations.

21
 PART III: REFLECTION FOR EMPLOYABILITY ENHANCEMENT

I. Critical thinking and core capabilities for the consultancy task ................. 23

II. Evaluation of current knowledge, skills and competences ........................... 23

III. Requirement of leadership skills for future personal development and

career succession ........................................................................................................ 23

22
I. Critical thinking and core capabilities for the consultancy task
To fulfil the report, I had to work on theories of all models about innovation
and changes and practical applications of those models to understand them deeper.
However, it is quite challenging to connect them together to support for initiations on
innovation and changes of specific situations as well as the successful application for
its strategy. To apply them effectively, I had to consider many others factors in detail
such as finance allowance, technical personnel, production process, as well as market
demand.
It is noted that innovation implementation is rather risky but profitable.
Developing new software is not easy and manufacturing a completely new car is more
problematic. Thus, a new project for this aspect has had been prepared and developed
years and years. In the future, if I have intention to join this sector, I will have to
equip for myself more required skills and knowledge.
II. Evaluation of current knowledge, skills and competences
It is true that this study is really hard when I had to master many different
fields of theory such as models related to innovation and change, finance skills, IT
knowledge, and management skills. They are all different, but well interrelating in one
united organisation and being flexible application in any specific project. In fact, I am
not good at using research tools to investigate customer demand and market change
for innovation due to its complexity and large markets. Thus, this is one of the aspects
I need to learn and master more for my future researches. In the study process, much
knowledge requires the practical experience which I am totally short. They are finance
calculations, and how to solve differences between theoretical measures and practical
problems rising. Undoubtedly, theory and practice are too far from each other and
practice requires more experience, more critical thinking, and flexible
implementation. Although I had to encounter much challenging in doing my work, it
is good experience which helps me perform effectively on the future tasks.
III. Requirement of leadership skills for future personal development and
career succession
There are many required skills to be a leader who effectively implements ideas
and theory into practice. First of all, creativity allows me to think of holistic pictures
to develop and connect normal things into creative products and services. Second,
persuasive skills are really important to leaders. If leaders would like to change the
company, they will have to be excellent at convincing the whole company about its
23
urgency and importance. This job is quite challenging because the company is a
united but ten of them with tens of different opinions. Leaders also have ability to
inspire their subordinates to work toward common goals of the company. The most
important skill is decision-making. Leaders always have load of things to do so that
they have to choose which one is the best for the company. Especially, change in
direction of a company or applying new innovative products all needs to consider
many factors and choices and the final decision should be from leaders.

From my perspectives, all above skills need to be trained and developed

constantly. To be a good leader, I need to be more creative and make smart decisions
as well as motivating people to achieve goals. In different situations, I need to be
flexible to make right decisions based on analysis and team-work.

24
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APPENDIX
1. What is your age group? A. 18-25/ B. 26-34/ C.35-49
2. What is your gender?
3. What is brand of your car?
4. Have you ever owned a Toyota vehicle?
5. If yes, do you think Toyota vehicles are reliable?
6. If no, what is your car brand? What make you choose it rather than
Toyota?
7. What are the advantages of your car brand compared to Toyota?
8. Will the recent recalls of the Toyota vehicles affect your decision to buy a
Toyota?
9. In your opinion, what are the advantages and disadvantages of Toyota
compared to its competitors?
10. What would you like to suggest to Toyota change and innovation?

28