Innovation in Automative Telematics Services: Characteristics of the Field and Management Priciples

The growing role of innovation in the strategy of car manufacturers leads them to relentlessly look for new sources of differentiation. In this way Telematics, a suite of technologies centered on communications systems within cars, is expected to bolster the car industry by offering a new stream of revenues. This articles focuses on the impact of this technology on design organization. In the first part, we demonstrate that Telematics is a radical innovation for automotive industry. Therefore traditional design models, such as heavyweight project management, are unsuitable. Next, the paper studies the organization adopted by a european car manufacturer in the light of recent research on the management of innovation.