Tesla is presented as a case study of disruptive innovation. Tesla disrupted the automotive industry by developing electric vehicles and pioneering new technologies like battery swapping. It utilized an open source approach to innovation and implemented new manufacturing processes. Key innovations included a large touchscreen interface and over-the-air software updates. Tesla's disruption benefits consumers through improved products and helps smaller companies compete through new market opportunities.

1. Disruptive Innovation:
A Case Study of Tesla
Department of Mechanical Engineering, Jadavpur University
Jadavpur University
Presented by:
Prishat Bachhar 001711201023
Md Safwan Mondal 001711201024
Souvik Ghosh 001711201027
Kalyan Roy 001711201030
Date : 1-12-2020
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1. Introduction:
• Disruptive Innovation:
1. Recycling Methodology
2. Comparison between Methodologies
3. Recycling Issues
4. Improvements
5. Conclusion
6. Acknowledgement
7. References
Overview
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Introduction
1. What is Disruptive Innovation?
• The term “disruptive innovation’’ was first
framed by professor Clay Christensen from
Harvard Business School.[1]
• ‘Disruption’ describes a process whereby a
smaller company with fewer resources can
challenge already established company or
market.
• Disruptive innovation is an innovation that
helps create a new market and value network,
and eventually goes on to disrupt an existing
market and value network. The term is used in
business and technology literature to describe
innovations that improve a product or service
in ways that the market does not expect.
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• Disruptive Innovation vs. Sustainable Innovation :
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• Practical Example of
Disruptive Innovation:
Netflix is a classic
example of disruptive
innovation that used a new
business model and
technology to disrupt an
existing market. It initially
offered a DVD-by-mail rental
service and later launched its
online, subscription-based
movie streaming service.
Today, its on-demand all-you-
can-watch movie platform is
used by over 150 million
people globally.
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• Need for Disruptive Innovation For Sustainable Energy Problem:
1. Tesla Motors broke the mold. It create groundbreaking new ideas
around sustainable mobility and automotive technology.
2. With Tesla, Elon Musk is focused on disrupting mobility. As of mid-
June 2014, the company has released all of its patent holdings,
claiming that open-source innovation is more powerful than
anything one company could do individually.
3. The heart of Tesla’s Model is its electric propulsion system, which
includes a battery, motor, drive inverter, and gearbox.
4. Tesla has established benchmarks for infotainment system
hardware, software flexibility, and manufacturing supply chain. The
company innovated powertrain design, which has proven both robust
and viable for everyday use.
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Tesla Motors - A perfect Example of Disruptive Innovation.
Tesla motors not only did managed to make its place in an already existing competitive
Motor Vehicle, but disrupted the common car manufacturing system. It also did set
new trends and technology for other car manufacturer to follow.
Tesla Chief Executive and Chief Product Architect Elon Musk demonstrate that
convention could be defied, he did it in an industry with 100-year-old traditions, norms,
and processes. Of course, the auto industry has innovated in the past, but Tesla, which
was founded in 2003, has pushed the envelope beyond what most automakers thought
possible. The company’s Silicon Valley-style “techpreneurship” enabled it to move
faster, work more efficiently, and create groundbreaking new ideas around sustainable
mobility and automotive technology.

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Not only did Elon Musk disrupted the Vehicle Industry, In 1998, he disrupted e-
commerce by creating a widely deployable and secure payment platform called PayPal
which is one of the most trusted and used payment plaftorm still after two decades,
although several payment apps have been created but non matched its level.
And in 2002, he launched SpaceX, a company that designs, manufactures, and
launches rockets and spacecraft. The company’s goal is to enable people to live on
other planets.

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How Tesla Utilizes Disruptive Innovation:
In mid of June 2014, the company released all of its patent holdings, claiming that open-source
innovation is more powerful than anything one company could do individually.
This radical approach to innovation made Tesla’s stock price up 14% to $231 a share. And the
outcome of this decision is evidenced in the technology and design approach of the company’s
flagship Model S, its $69,900 luxury car.
Introduction of a 17-inch touch screen infotainment system, which became—since its production
launch in 2011—an instant industry benchmark for automotive display integration. Which made
controlling most of the car functions as simple as using a smartphone. And the display integration
made it easier for any new user to easily get used to it.
The company chose to change up the supply chain and borrow from the electronic manufacturing
services (EMS) model of Production. This model required Tesla to internalize much of the
hardware and software development, as well as the systems integration work.

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How Tesla Utilizes Disruptive Innovation:(Contd)
With Tesla’s technology come some very important services. Perhaps at the top of the list is the
convenience of over-the-air (OTA) software updates for vehicle recalls, which Tesla has made free
and standard for Model S owners. This functionality has, in turn, created plenty of positive press
for the company. The importance of it could be understood by considering the case that Tesla’s
Model S overheating charger plugs were fixed in single day for all 29,222 Model S vehicles
wirelessly and running the new safer version of the software. On the counterpart, GM had
ironically the same fire issue which was fixed in service centre for all around 370,000 vehicle free
of cost, making the company bear huge labor expense.
And with the concluding point that Tesla has made a significant investment developing charging
stations in the US, Europe and Asia. These supercharger stations can swap out the battery in less
time than it takes to fill a tank of gas. Owners must come back and swap again for their original
battery. Nonetheless, this helps alleviate drivers’ worries about becoming stranded on long trips.

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Benefits of Disruptive Innovation
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 Disruptive innovations that take a share of the market can deliver growth
opportunities to companies adapted to leading new trends.
 It allows smaller companies and startups to compete with corporate enterprises by
establishing and growing new market segments of their own.
 Adapting solutions to new insights can lead to some disruptive innovations, better
employee engagement, and further revenue streams. [having a system looking for
Disruptive innovations]

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Conclusion
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The principles of disruptive innovation allow companies to take a step back and
analyze their current products and services, what areas can be improved, where an
opportunity exists.
One of the major restrictions to capitalizing on new ideas is the establishment of
regulations regarding new products or ideas. Consumer safety and privacy are always a
major concern. It's important to anticipate the inevitable resistance to new ideas