List of Benefits Fiat and the Participants Gain from the Open Innovation Experience - Case Study Example

Name Professor’s Name Course Date Innovation case study Many auto companies use concept cars to showcase the various ideas in their possession and in the way give a lead to their next project. Such a case was the concept car by Fiat known as Fiat Mio. The paper will use the case study of the web-based collaborative framework that led to the development of Fiat Mio to lists the different benefits both for the Auto Company and the various participants associated with an open innovation process. The real innovation made even when the concept car was not to be produced will also be discussed. List of benefits Fiat and the participants gain from the open innovation experience. Use of San Paolo Auto show in Brazil has a significant impact on ensuring continued market dominance of the Brazil market. The company holds the highest percent of the Brazil market at 21% (Saldanha et al. 2015). The Brazilians use the auto show to showcase new trends and models in the motor industry. Fiat used the platform to show the various visitors how it has integrated the new trends and fashion in its own production. The show attracts not only nationals from all parts of the country but also tourists and the attention of international media. Concepts cars are used to show people what they can expect from the company in the future. Fiat benefited from the event having made a good impression among the viewers by helping it compete with the other cars exhibited by other auto production companies such as Volkswagen, General Motors and Renault (Saldanha et al. 2015). It was an important step in ensuring it remains competitive in the future. The media, both local and international focused on the concept cars showcased by Fiat and it was later awarded trophies (Saldanha et al. 2015). To the company, it was a good marketing platform as it popularized the brand name. Other people around the globe became aware of the brand and it opened up many markets for the company operations. As the concept car received awards, people attention was drawn towards the former models the company had produced. The third concept car attracted a lot of attention from both visitors and the media as it was a new idea. It was a reflection of what consumers wish can be done by the automobile manufacturers (Saldanha et al. 2015). As people viewed the prototype, they were looking at the people’s representation of their ideal cars instead of the normal company’s representation. It was something that had not been done before. For the first time in the auto industry, people could relate to the idea they have been having and it created a perception among the clients that the company listened to consumer’s demands and preferences. Created from the idea in an article by German magazine stating that vehicle manufacturers do not produce cars that address the real needs of its consumers, the concept car brought a revolution to the automobile industry (Saldanha et al. 2015). The participants in the innovation also benefited from the experience as they would now see their ideas in the physical form. Even though the impact had no material gain to the participants, they felt the experience had taken their contribution into consideration. The crowd had put in their time, the company appreciated ideas and passion by using a lot of its resources, both financial and human resources in converting the participant’s collective effort into reality (Saldanha et al. 2015). Fiat customer service and creation department benefited as the platform created a path where the company would be able to communicate with the clients. The main role of the department was under challenge as identified by an article in the leading German magazine stating that automobile manufacturers do no express consumer’s demand in the final product having lost them in development process (Saldanha et al. 2015). As the project was initiated, the ideas sourced from the crowd were to be integrated in all the three phases of the project. The company provided the guideline within which the participants were supposed to act. The guideline did not act to limit the ideas of the crowd but assisted them in applying the ideas in the context of designing car of their choice. After a meeting with the various parties, Fiat on its website posted a question that asked the public what type of car they think should be built in our desired future that serves our need and that of other people (Saldanha et al. 2015). It led to development of the name of the concept car, Fiat Mio, an Italian name meaning My Fiat. The public, who contributed heavily to the production process by sharing ideas and perspective, were regarded as the boss in the innovation process. The title benefited the marketing department since it developed the view that the consumer is the owner of the car having dictated its entire component. Even though it was hard for the designers, engineers and the other departments involved in the production process were unable to fit the customer’s entire wishes into the paradigm, the ideas were borrowed to in other models of the car. Analyzing the views of the customers started as a marketing survey and the platform helped the company to further understand the needs of the customers. Joao Ciaco admitted that some of the concepts would be integrated in other models the company was about to produce as help raise consumer’s satisfaction (Saldanha et al. 2015). The company gained hugely from the innovation even though the prototype would never be produced. It established a good communication platform between the consumers and the company. The real innovation when the Fiat Mio would never be produced or marketed. The product, Fiat Mio being a paradigm that would never be driven, real innovation was still made. The first invention was the desired car for the future from the consumer’s perspective. The prototype and all ideas generated were available to the public, engineers, and designers of other vehicle manufacturers free of charge with no restrictions (Saldanha et al. 2015). Manufacturers could now use the ideas to create a model knowing it had taken the target consumer’s views into consideration. Apart from being a car of the future, the process led to the innovation of the manner automobile manufacturers carry out their production. Initially designed as a marketing survey, the project attracted many parties and showed the importance of collaboration in the industry (Saldanha et al. 2015). Other automobile manufacturers also used the format by engaging consumer’s views in the designing of their product. The results were a successful marketing survey and also the creation of a good consumer and company relationship. The company gained hugely from the innovation even though the prototype would never be produced. It established a good communication platform between the consumers and the company. Work Cited Saldanha, Fabio Prado, Pozzebon, and Marlei, Professor. "Fiat Mio: The Project That Embraced Open Innovation, Crowdsourcing and Creative Commons in the Automotive Industry." International Journal of Case Studies Management 13.1 (2015): 1-13. Web. 15 Apr. 2016. Read More