The document discusses factors that affect innovation in organizations using Tesla as a case study. It describes Tesla's strategy of developing high-end electric vehicles to prove the technology and develop intellectual property. Tesla's structure fosters an innovative problem-solving culture that encourages ideas, continuous learning, and risk-taking. Resources that support Tesla's innovation include its factories, time advantages as an electric vehicle pioneer, open patent policy, and talented workforce.

1. Factor Affecting Innovation in
an Organisation
CREATIVITY THAT IS SALEABLE
Prepared By,
Mohit Singh (20181051)
Supratik Dass (20181052)
Deep Thumar (20181053)
Dewang Tiwari (20181054)
Yuvraj Singh (20181061)

2. Introduction to the Company
• Founded in 2003.
• Specializes in electric
vehicles, lithium-ion
battery energy storage
and solar panel
manufacturing (through
the subsidiary company
SolarCity).
• Aimed at eventually
offering electric cars at
prices affordable to the
average consumer.
• Named for the
electrical engineer and
physicist Nikola Tesla.
Source: https://www.forbes.com/sites/innovatorsdna/2016/08/24/teslas-innovations-are-transforming-the-auto-industry/#403873db19f7

3. Most Awarded Car of 2017

4. Factors Affecting Innovation in an Organisation
STRATEGY STRUCTURE SUPPORT
MECHANISM
BEHAVIOUR THAT
ENCOURAGE
INNOVATION
COMMUNICATION
 Vision & Mission  Flexibility  Rewards &
Recognition
 Mistake handling
 Idea Generation
 Continuous Learning
 Risk Taking
 Competiveness
 Support for Change
 Conflict Handling
 Open
Communication
 Purposefulness  Freedom
 Autonomy
 Empowerment
 Decision Making
 Availability of
Resources
 Time
 Information &
Technology
 Creative People
 Cooperative teams &
Group Interaction

5. Innovation By Tesla Inc.
Battery range: Tesla Roadster has a max range of 310 miles, more than twice the next
competitor.
Battery safety: Electric cars are at a big risk of fire given the kind of energy they store. It went
with small, cylindrical batteries distributed throughout the car to reduce the energy intensity
and reduce risk of fires.
Recharge time: Chevy Volt takes an entire night to get you 40 miles of driving. Chevy Volt
Electric Car. Tesla's supercharging promises to do 7 times that range in 30 times shorter time
range.
Charging station infrastructure: Addition of a massive charging network, now electric cars can
be practical in rural areas as well as for road trips.
Distribution network: The industry is characterized by these sleazy salesguys. But, Tesla is
trying to circumvent salespersons.

6. Super-Charging Stations in US till 2014
Source: https://www.tesla.com/

7. What Makes Tesla Inc. So Innovative ?
Strategy: The overarching purpose of Tesla Motors is to help to move from a mine-and-burn
hydrocarbon economy towards a solar electric economy.
Mission Statement “to accelerate the world’s transition to sustainable energy.”
Vision statement is “to create the most compelling car company of the 21st century by driving
the world’s transition to electric vehicles.”
- Purpose:
1. Develop a high-end, high performance sports car to prove that electric vehicles are both
stylish and efficient. Use the sports car to develop core intellectual property and patents.
2. Introduce a premium sedan that competes with brands like BMW, Mercedes and Audi
3. Produce hundreds of thousands of low cost premium electric vehicles for mass adoption

8. Structure: Tesla, Inc.’s (formerly Tesla Motors, Inc.) has an innovative problem-solving organizational culture.
It creates human resource competence necessary for innovative products in the global automotive business.
Tesla Inc. identifies six main features of its organizational culture:
1. Move Fast
2. Do the Impossible
3. Constantly Innovate
4. Reason from “First Principles”
5. Think Like Owners
6. We are ALL IN
What business lessons can we learn from Tesla’s CEO, Elon Musk?
Tesla Motors and its CEO, Elon Musk, are inextricably linked. In fact, many believe that it’s Musk himself
– and the media attention, fascination and cult following he attracts – that truly makes Tesla stand out.
Be relentless in the pursuit of your goals
Do what will improve humanity – not what will make the most money

9.  MISTAKE HANDLING
 IDEA GENERATION
“All our Patents are belongs to you” – Elon Musk CEO
Tesla Patent rights have been removed, in the spirit of the open source movement, for the advancement
of electric vehicle technology.
 CONTINUOUS LEARNING
When the Model S was
introduced in June 2012 it
came with a "smart" air
suspension system that
automatically lowered the
car at highway speed for
better aerodynamics and
range.
 RISK TAKING
1. There is business risk
that they hit cost
overruns or time delays
on Gigafactory, battery
manufacture, or Model
3 production.
2. There is the financial risk
that they do not sell
enough
3. There is regulatory risk
that self-driving cars
may not be allowed.
Source: https://economictimes.indiatimes.com/

10. Resources of Tesla:
• Physical Resources: Tesla Factory located in California and Gigafactory located in Nevada which is anticipated to
produce 500,000 cars per year in the latter half of this decade.
• Time Benefits: As electric vehicle first mover, the company has been developing its supercharger network
worldwide ahead of other competitors.
• Technological Resources: Tesla pledges on its official site that “it will not initiate a lawsuit against any party for
infringing a Tesla Patent through activity relating to electric vehicles or related equipment for so long as such
party is acting in good faith.”
• Human Resources: Talented and passionate top managers, for example, company Chief Technical Office--- JB
Straubel who began a lifelong fascination with energy work and electric vehicles since he was 14. There are
more than 13,000 employees across four continents in Tesla (About Tesla, 2016).

11. References:
1) https://www.wikipedia.org/
2) https://www.tesla.com/
3) https://economictimes.indiatimes.com/
4) http://www.forbesindia.com/

12. THANK YOU!