Fiat Mio in Brazil - Challenging the Stage-Gate Model in Crowdsourcing - Case Study Example

Student’s Name: Professor’s Name: Course: Date: Case Study: Fiat Mio Introduction Open innovation is a situation where companies make use of internal and external ideas in advancing their operations. It, therefore, entails the use of inflows and outflows of knowledge for the sole purpose of spearheading internal innovation and expanding the markets for external use of innovation. Gains by both Fiat and the Participants The benefits in consideration of Fiat and other members in our case, therefore, incorporate the following: On the side of Fiat, there are several benefits that he accrued from the innovation process. The website acted as an opportunity for him to market its product bearing in mind that its company market share in Brazil is 21%, the greatest among its competitors. He would be able to interact with the potential customers who would make a placement for his products and at the same time respond to the needs and inquiries from them. He also learns the industry regarding the market share held by the competitors and the risks associated with the business as well as its organization. In such online interactive sessions, he would be able to interact with customers some of whom have knowledge of competitors in terms strategies of marketing, unique ideas of their products and their weaknesses. It is in this innovation experience that his good impression on visitors brought him benefits including expanding the Fiat Mio collaborative project, attracting the focus of worldwide media, and reception of prizes later awarded. While engaging in complex discussions with a significant number of people, and making decisions on the creation of something that shows heterogeneous public aspirations, Fiat became aware of how much effort is required to mount such challenge and how difficult it is to strike a balance. Through his engagements in the open innovation process, he interacted with people who have ideas that he could borrow to assist him to manage the business successfully. He also developed synapses, links and new ways of working that he could not have drawn upon his own. The other participants in the open innovation included members of departments within the Company. For instance for Joao Ciaco, Advertising Agency Director Fiat, the model gave him an opportunity of an enhanced approach to communicating with clients. There would be increased interaction between customers as they would be able to make their orders, ask the question and seek clarification on issues affecting them. This further contributes to brand identity. The benefits of open innovation to other participants are many, and they encompass giving company competitive advantage especially during challenging economic times, profitability regarding reduced costs, accelerated time to market, market differentiation and the creation of new revenue avenues in the company. It also helps in building a creative culture at the workplace where employees are free to express their ideas. The real innovation Attainment of the full potential of innovation is not just an issue of opening up companies processes of change majorly to get better ideas; it will also be pinned on businesses being very open in allowing their thoughts and modifications to be used by others. Of great importance however is ensuring that these ideas and innovation are turned into real. A former vice president at 3M, Geoffrey Nicholson stated that innovation is the transformation of knowledge into money. Considering such definition, innovation should be a priority for every company. In the case, different themes come to fore to explain the real change. They include open innovation, crowdsourcing, management, information technology, marketing, customer relationship management, and branding. There is the open innovation which involves the combining internal and external ideas and paths in an advancement of new technology. Creation of Fiat Mio incorporated the combination of people's ideas from the Fiat website and the impressions of the executives from different departments. Crowd-sourcing entails obtaining ideas, services, or content through seeking contributions from a big group of people and mostly from an online community, instead of traditional employees or suppliers. Its application as a real innovation is seen where the customers' ideas are sought through internet and website in the production of a new concept car that conforms to the wishes and desires of customers. Future exploration ought to lay spotlight on how the association structure may change before or after a crowdsourcing venture. For instance, there might be a squeezing need to draw in information representatives, as found for the situation, Fiat including its publicizing organization in the undertaking. It is likewise of pertinence to consider the way that a few specialists may emerge from the group i.e. perceiving how crowdsourcing can be utilized as an enrollment apparatus. Advancement of building the car from the initial state to the final product named Fiat Rio is in itself a real innovation. The use of information technology is therefore applied in its designing and designing of fiat's logo as well. There is also the application of informatics by the two contributors of spicy media including Andriano Silva, editor and Leonardo Nishihata, senior editor. In the modeling process, we are told that the sculpting of the car in 3D was done digitally with a mathematical equation being generated. Fiat communication with internet users and consumers during the Concept Design stage, through the use of videos posted weekly on Youtube and then linking them to Flat Mio flat form, was a way of real innovation. The final launch of the product at the Sao Paulo Auto show, when the Fiat sales director announced the imminent unveiling, people crowded it to take the photo with their phones. Previously, photos were never taken using phones. It could only be done through the utilization of a photo camera. Innovation plays an important role within organizations and should, therefore, be given high attention to ensure that success prevails. In the process of coming up with innovation, we ought to understand that there are challenges that must be overcome as we make advancements. Innovation is continuous and therefore, organizations need to adjust to the changes brought up by it to cope with the changes (Saldahna et al., 45). Work cited Saldanha, Fabio Prado, Patrick Cohendet, and Marlei Pozzebon. "Challenging the Stage-Gate Model in Crowdsourcing: The Case of Fiat Mio in Brazil." Technology Innovation Management Review 4.9 (2014). Read More