Innovation and Transformation

Innovative Practices
@ Volkswagen
Vineet Jain
Roll No - 75

How dimensions of innovation lead to
competitive advantage with respect to a
multi-national organization.

Introduction
• Volkswagen is a German automobile manufacturer headquartered in Wolfsburg, Lower Saxony,
Germany. Established in 1937 and is now the biggest automaker in both Germany and Europe.
• Volkswagen has three cars in the top 10 list of best-selling cars of all time ,the Volkswagen Golf,
the Volkswagen Beetle, and the Volkswagen Passat. With these three cais, Volkswagen has the
most cars of any automobile manufacturer in the list that are still being manufactured.
• Volkswagen means "people's car" in German. Its current international slogan is "Das Auto" ("The
Car").
• Production in 62 plants across 21 countries.
• Sales in 153 countries.
• It operates over 50 production locations on five continents and employs more than 200,000
people.

Mission and Vision
Mission Statement of Volkswagen
“To offer attractive, safe and environmentally sound vehicles which can compete in an increasingly tough
market and set the world standard in their respective class.”
- This statement is astounding in its usage as it gives a clear idea of what the company is and what they
have in mind to work forward to. They are clear that they offer excellent quality in a competitive market
of automobiles which is not the only state-of-the-art product but also exceeds expectations.
Vision Statement of Volkswagen
“To make this world a mobile, sustainable place with access to all the citizens.”
- By this concise statement, Volkswagen aims to enable mobility of people, a basic for any human being
to live the life they deserve to through their products. It also aims to create a sustainable world,
acknowledging the need for such a lifestyle.

History & Evolution
1937
Volkswagen Group, also
called Volkswagen AG,
major German
automobile
manufacturer, founded
by the German
government in 1937 to
mass-produce a low-
priced “people’s car.”
Headquarters are in
Wolfsburg, Germany.
1939
The outbreak of
World War II in
1939 occurred
before mass
production could
begin, and the
factory was
repurposed to
produce military
equipment and
vehicles.
1946
Volkwagen’s military
involvement made its
factory a target for
Allied bombers, and
by the end of the war
the factory was in
ruins. It was rebuilt
under British
supervision, and
mass production of
the Volkswagen
began in 1946.
1949
Control of the
company was
transferred in 1949 to
the West German
government and the
state of Lower
Saxony. By that time,
more than half of the
passenger cars
produced in the
country were
Volkswagens.

History & Evolution (contd.)
1950s
Volkswagen production
expanded rapidly in the
1950s. Introduced the
Transporter van in 1950 and
the Karmann Ghia coupe in
1955. Sales abroad were
generally strong in most
countries of export, but,
because of the car’s small
size, unusual rounded
appearance, and historical
connection to Nazi Germany,
sales in the United States
were initially sluggish.
1960s
Joint ownership of
Volkswagen by the West
German government and
the state of Lower Saxony
continued until 1960, when
the company was mostly
denationalized with the sale
of 60 percent of its stock to
the public. Since the 1950s
Volkswagen has operated
plants throughout much of
the world, including in
Mexico, Brazil, China, and
the United States.
1970s
Volkswagen began phasing
out its rear-engine cars in the
1970s, replacing them with
front-engine front-wheel-drive
designs. The first of those
new cars was the short-lived
K70 in 1970, followed by the
Passat in 1973. Most
significant, however, was the
Golf, initially called the
Rabbit in the United States,
which was introduced in
1974. The Golf was an
instant sales success..
2015
In mid-2015
Volkswagen briefly held
the distinction of being
the world’s largest car
manufacturer by
volume after surpassing
Toyota Motor
Corporation.

History & Evolution (contd.)
2019
In 2019 Volkswagen
ended production of the
Beetle, which had
undergone various
redesigns over some
eight decades.
Volkswagen owns several other automotive companies,
including Audi and Porsche in Germany, SEAT (Sociedad
Española de Automóviles de Turismo) in Spain, Škoda in
the Czech Republic, Bentley in the United Kingdom,
Lamborghini in Italy, and Bugatti in France.

Green
Technology
Innovation
The BlueMotion Technology
BlueMotion is a trade name for Volkswagen car
models with an emphasis on higher fuel
efficiency.

Working of BlueMotion
The BlueMotion technology is based on these three areas of improvement:
● Engine: Diesel particulate filters and oxidizing catalytic convertors reduce the fuel
consumption with lower nitrogen oxides levels. Moreover this technology, start-stop
system halts restarts the motor at short stops like red lights.
● Transmission: The last two gear ratios are longer than standard Turbocharged Direct
Injection (TDI) engine gearboxes.
● Reduced rolling resistance: Low-resistance wheels and better aerodynamic shape
through lowered suspension, new spoilers and extra enhancements underneath car
produce better fuel consumption.
These innovations made these cars more fuel efficient and eco-friendly.

Competitive Advantage
● Volkswagen’s innovative design combined with highly focused marketing team
made this line of products more attractive for customers to buy.
● Volkswagen claimed that 70 liters full tank of Passat will get 1350 km. Based on an
average, the yearly mileage is 15000 km. Then it is expected that VW Passat
BlueMotion would only be refueled 11 times a year, approximately once a month.
● VW worked hard on the pricing strategies to achieve its objectives. The strong
management of VW determines the affordable and competitive price in the market
which coordinated to the customers’ purchasing power.
● Although the CO2 emissions of Toyota Prius (The then ‘Greenest Car of Europe’) were
less than VW Passat, the fuel consumption and lower release of other emissions of
Passat gave it an advantage.
● The 2009 Volkswagen Jetta Diesel Sedan was awarded Green Car of the Year.

Innovations in
Automotive
Software
Cloud-based and with swarm intelligence:
new software generation 3.0 with additional
innovative boost for the ID family.

Features added by ID generation 3
Travel Assist with
Swarm Data
Park Assist Plus with
Memory Function
New displays and
Optimised voice control
1 2
1
3

Other benefits of the ID.3
Charging the 77 kWh
battery with a maximum
of up to 135 kW
Smart e-route planner
Digital customer
experience is becoming
a Volkswagen core
competency
4
5
6

Innovations in
Volkswagen
Navarra

Process Innovation
JIT (Just in Time) method
- Most significant innovation w.r.t the Logistics
Department
- Change with regards to the old production &
organization system
Results
Productivity
Cost (due to excessive
storage)

Process Innovation (contd.)
Sustainable ventilation Technology
- Sustainable growth, a mid-term future planning of Volkswagen.
- Installation of 4,20,000 cu. m/h of AHUs (Air handling units)
- Utilization of ZerAx axial fans (fan efficiencies of up to 92%)
Results
Energy savings Weight savings
Noise CO2 emissions

Other
Innovations
1
2
3
Traffic Jam Assist
DSG Gearboxes
Car-Net and the E-
remote

Traffic Jam Assist
● Roads in most countries
suffer from congestions,
mainly during peak times.
● VWs Traffic jam assist,
which is a camera based
feature, and works alongside
the car’s grille-mounted
radar, lane departure
warning and ACC adaptive
cruise control safety
systems to autonomously
accelerate and brake on the
driver’s behalf.
● In slow moving
queues/lanes it follows the
car in front.

Automatic Shift Gearbox
● Automated version of
the 5-speed manual
gearbox has the
system that can
operate in two ways:
● The gearbox can be
operated without the
assistance of the
driver (conventional)
● or the driver can
change gears himself.

Car-Net and the e-Remote
● Equipped with the brand's latest CarNet technology,
VW drivers can use their smartphone as a remote
control to check their car from anywhere, from
security to the battery charge level of the electric
model.
● There is a feature to specify the car’s ambient
temperature in advance using the phone app.
● The connected car platform called Car-Net, which is
home to convenience, data, safety, infotainment,
security and other services makes it all possible.

Volkswagen Group
Research
is now
Volkswagen Group
Innovation
What?
The Group’s research department and its
international sites saw a new alignment.
When?
50th Anniversary of Group Research
Key Points
● Consistent research and innovation for
-autonomous mobility concepts, sustainable drive
systems, augmentation and holography
● Investment of USD 100 million in newly established
company with tech company QuantumScape
● Sustainable Group Innovation activities to meet
TOGETHER 2025+ Volkswagen Group strategy goals

Navigating the Innovation Landscape
• Collaboration & Networking
• Opportunity Sensing
• Entrepreneurial Orientation
• Knowledge Management
• Strategic Flexibility`

“Think small”
:a model for
Big Innovation

Innovation and Transformation

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