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The Head of Innovation is a recent addition to the corporate management team and the role doesn’t yet come with any clearly defined boundaries. Responsibilities will vary from company to company and from industry to industry.
In general, this dynamic position works to bridge the gap between different departments and make sure that technology and business departments have common goals that align with an overall innovation strategy.
The biggest challenge that comes along with serving as Head of Innovation is staying agile and making sure that the company is ready to adapt and adjust as evolving circumstances demand.
With technology moving at an unprecedented pace and constantly picking up speed, this is a tall order. The competitive, high stakes nature of the automotive industry only adds to these challenges.
With that in mind, let’s take a closer look at the responsibilities of the Head of Innovation in the automotive industry and how this position will have to work to address major changes that are already reshaping the industry.
Identify Emerging Technology
In the past, brand loyalty and performance played major roles in car buyers’ purchasing decisions. Today’s buyers are looking for complete connectivity and technology.
Infotainment systems that combine search and navigation tools with music and entertainment are now the standard. Safety packages boast reverse cameras, lane assists, collision warnings and much more.
The Head of Innovation at an automotive company is responsible for identifying the next big thing in technology and working with research and development teams to find the best ways to incorporate new technology.
Simply putting in bigger, higher resolution screens isn’t the answer. Automotive companies must be on the hunt for startups who can help find the next intersection among IoT, AI, connectivity and the automotive world.
Understand the New Driver
For younger drivers living in cities, it often doesn’t make financial sense to purchase a car. Ridesharing and vehicle sharing programs can save users up to 40% over the cost of owning a car.
Head of Innovation executives need to recognize this shift, learn more about where this trend might go and develop a response. How will big automakers continue to stay relevant in a world where the number of people who want or need cars is declining?
Examine the Customer Experience
Today’s consumer is armed with information, options and increased expectations.
People research cars before buying and take virtual tours before they ever visit a lot. They may even complete the entire transaction online.
Automotive innovation needs to include improving the customer experience, increasing transparency and winning over buyers while they are still sitting at home on their computers and mobile devices.
For the Head of Innovation, this means working with sales, marketing and technology departments to find new ways to connect with customers online and create a frictionless experience that empowers the consumer.
Improve Processes at Every Level
From research and development to supply chain and distribution, the automotive industry is ripe with places where processes can be streamlined and automated for increased efficiency.
Technology can increase the pace of innovation by streamlining the processes of discovering, testing and evaluating technology solutions with customized testing environments.
Additionally, smart factories equipped with Industry 4.0 technologies improve production, reduce waste and lower operational costs.
At an automotive company, the Head of Innovation will need to show leadership in working with departments to improve processes and help equip them with the right tools and resources for successful change management.
Increase Diversity
One of the great barriers to innovation is a lack of diversity in perspectives and experiences. More diverse companies are 70% more likely to capture a new market.
Increasing diversity in teams across the company and bringing people from adjacent fields and departments to the innovation table can breath new life into projects.
In the automotive industry, diversity could mean bringing in more women and people of color, and making space for collaboration among departments and with outside experts.
The Head of Innovation is responsible for making this a priority and creating initiatives to achieve better diversity.
Moving Fast with Automotive Companies
By 2030, self-driving vehicles are expected to represent 60% of all cars on the road and account for 95% of miles driven.
Production of traditional cars will essentially come to halt and more people will share vehicles rather than buy their own.
With such major changes on the horizon, the Head of Innovation will play a vital role in the survival of established automotive brands and the success of burgeoning startups.
It is also important to keep in mind that the role and responsibilities of the Head of Innovation will continue to evolve. Agility will be the key to succeeding in this role, and in the automotive industry as a whole.
