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History

• Began as a textile company in 1926 by Sakichi Toyota (Toyoda Automatic Loom Works)

• In 1933, Kiichiro Toyoda established an automobile department within Toyoda Automatic Loom Works

• In 1937 Toyota Motor Co. was established as an independent company

• In 1947 started passenger car production

History

• In 1958 sold their first cars in the United States

• In 1959 opened first plant outside of Japan, in Brazil

• In 1966 the first Corolla brand has come off the production line

• In 1997 Toyota introduced the first hybrid(Prius) to the world in japanese market

Today

• Today, Toyota has 51 plants in 27 countries

• In 2008 becomes the world’s largest car manufacturer

• In 2013 had a total sales of 9,98 million units

• Also has Daihatsu, Hino and Lexus brands

Philosophy

Toyota owes its success to the Toyota Way philosophy and that had been implementedalmost since the beginning of the story

PRIUS (How did it become real?) Responding to concerns about the environment, Toyota set itself an exceptionally high goal for its 21st century car project in the spring of 1993 — to create a car that would have more than twice the fuel economy of cars in the same class, reduce CO2 emissions, seat five adults and provide maximum cabin space in a compact design.

After repeatedly exploring ways to achieve this goal, Toyota decided to adopt a combustion engine and electric motor hybrid system in June 1995.

PRIUS (At a glance)

• Prius takes it's name from the Latin phrase ‘to go before’

• The with first-generation Prius is introduced in Japan in 1997, equipped the Toyota Hybrid System ( THS )

• Becomes the world’s first mass produced hybrid production vehicles

• In 2000 the first generation of Prius is introduced in United States

• Made its 1 millionth worldwide sale in 2007

• Fourth generation will be released as early 2015

PRIUS (What makes it attractive?)

Innovative Features Appeal to Customers

• Has a combination of gas engine and electric motor

• Extremely fuel-efficient (3,9 lt / 100 km)*

• Low CO2 emissions (89 g/km)*

• Provides tax incentives

• Silent*average rates

PRIUS (It’s Design & Technology) • Batteries

There are two types of batteries: High Voltage (HV) & Low Voltage Battery has an almost 10 year life and never need to be recharged manually• Combustion Engine

Starts to work when the speed reached at 45 km/h• Generator

That’s where the gas engine’s power gets converted to electrical power to drive the motor or charge the batteries• Electric Motor

Works at low speed rates (up to 45 km/h) and while braking and decelerating• Power Split Device

Connects the engine, motor and generator together

PRIUS (How does it work?) • Accelerating

Both gasoline and electric motor works while accelerating Up to 45 km/h, only electric motor works and battery is used• Decelerating

While decelerating and braking the electric motor acts as the generator and recharge the battery.

Also while braking, Prius does not consume gasoline and emit CO2• Normal Running

When accelerating lightly, Prius uses its electric motor along with combustion engine to achieve greater fuel efficiency

• Stopping

Its combustione engine shuts off to conserve fuel and reduce emissions

Evaluation of the Prius Case Study (1)

1) Formats of Innovations• Product Innovation (Technological & Marketing Innovation) and • Process Innovation (Technological Process Innovations)• Social Innovation (Prius led society to be more cautious for a greener earth)• Political Innovation (Prius encouraged governments to provide tax incentives)

2) Models of Innovations• Dynamic Model of Innovation (In the following years, Toyota produced enhanced models

of Prius)

Evaluation of the Prius Case Study (2)

3) Six Hats of Creative Thinking• White Hat (Information, needs and gaps are defined)• Yellow Hat (Pros and cons of the project were studied)• Green Hat (Different options and alternatives have been identified)• Blue Hat (Different aspects of the project evaluated objectively)

4) Product-Focused Strategies• Differentation (Mass production of hybrid cars)• Niching (Entering Hybrid Car market)

Evaluation of the Prius Case Study (3) 5) Opportunity-Risk Focused Strategies• Prospector (Totoya took some risks by being the first in the Hybrid Car market)

6) Time-Based Strategies• First Mover (They were the first in the mass hybrid car manufacturers)

7) New Product Development Framework• Structured Product Development Process (It meets all 7 stages of SDP)• Review Board (All top management executives had took part in project)• Phase Review Process (All top management executives monitored the process and

provided leadership and direction to the project teams)

Evaluation of the Prius Case Study (4) 8) Opportunity-Risk Focused Strategies• Balance Scorecard (Customer, Financial, Innovation & Learning, Internal & Business

Perspectives)• SMART Technique (Is the project ‘Specific’ ‘Measurable’ ‘Achievable’ ‘Reasonable’ ‘Time-

Bounded’)• Strategic Management System (Specifying the goal, Identifying strategy, Predicting

results, Planning the next steps)

9) The Roles of People – Leader – Team in the Innovation• The Executive Sponsor• Technical Advisory Board• Programme Manager• Project Manager• Project Team Members

Evaluation of the Prius Case Study (5)

10) Global Effects of Innovation• Led other companies to enter the market• Made consumers get more cautious about a greener world• Introduced new products to the industry • Further improvements for hybrid cars occured / will occur • Less consumed natural resources

References

http://www.toyota-global.com/company/toyota_traditions/innovation/nov2008_feb2009_1.html

http://www.toyota.com/prius/#!/Welcome

http://www.toyota.com.tr/cars/new_cars/prius/index.tmex

http://www.toyota.com.tr/cars/new_cars/prius/index.tmex

http://auto.howstuffworks.com/hybrid-car.htm

Prius-2014 (official leaflet)

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