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Innovation and Tesla's mission to accelerate the world's transition to sustainable energy
Topic: Innovation
by Eleanor, 2020 Cohort
What is innovation?#
Innovation is the application of ideas that are both novel and useful. There are many ways in which innovation can be characterised. In the commercial context, there is a distinction between:
- product innovation- the development or improvement of a
- process innovation- improving how a product or service is provided (for example, Henry Ford’s world first assembly line which reduced the production of a vehicle from 12 hours to 90
- business model innovation- the way in which a product or service is brought to the market (for example, a sharing economy business like Uber and
From a broader perspective, innovation can cut across every domain, from social to technological to economic. For example, a national carbon emissions trading scheme demonstrates economic innovation directed towards a society’s environmental needs.
Innovation over time#
Innovation is becoming increasingly important on a societal level, driven by both opportunity and necessity. Opportunity, from approaching the beginning of a fourth industrial revolution, where the disruptive platforms of machine learning/artificial intelligence, robotics, biotechnology and 3D printing continue to transform our economies and workplaces. Necessity- to in turn adapt to these changes, as well as tackle the myriad of challenges humanity faces in the 21st
At the same time, it is important to acknowledge that innovation can lead to unanticipated consequences. Consider for example, the internal combustion engine automobile. It allowed humans to move around much faster and easier, solving various limitations of horse and buggy (such as horse manure lining the streets!). However today the transport industry is responsible for 15% of global greenhouse gas emissions, contributing to one of humanity’s most urgent challenges.
This cyclical nature of innovation over time is visualised in the diagram included below.
A case study: Tesla#
The electric vehicle manufacturer and energy solutions provider Tesla is an interesting example of recent innovation relevant to current environmental challenges. Led by entrepreneur Elon Musk, Tesla’s mission is to accelerate the world’s transition to sustainable energy. It has rapidly innovated on the design and production of its electric vehicles- for example, the integration of battery packs, the incremental self-driving software, and the vertical integration of production in their manufacturing gigafactories. Another aspect of the company are its solar panel and Powerpack power storage systems, which allow homes to generate and store electricity for personal use, and to share with community
While there is a long road ahead, other electric vehicle manufacturers are also demonstrating progress. Falling production costs could mean the sales of new electric vehicles could eventually supercede conventional vehicles in this decade. This transition could be as significant as humanity’s transition from horse and buggy to motor cars, helping with our climate change response and spurring innovation in adjacent fields. Do you think there are any unintended consequences however, that may emerge from this development?
Explore this topic further#
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Disclaimer#
This content has been contributed by a student as part of a learning activity.
If there are inaccuracies, or opportunities for significant improvement on this topic, feedback is welcome on how to improve the resource.
You can improve articles on this topic as a student in "Unravelling Complexity", or by including the amendments in an email to: Chris.Browne@anu.edu.au
What is innovation?#
Innovation is the application of ideas that are both novel and useful. There are many ways in which innovation can be characterised. In the commercial context, there is a distinction between:
- product innovation- the development or improvement of a
- process innovation- improving how a product or service is provided (for example, Henry Ford’s world first assembly line which reduced the production of a vehicle from 12 hours to 90
- business model innovation- the way in which a product or service is brought to the market (for example, a sharing economy business like Uber and
From a broader perspective, innovation can cut across every domain, from social to technological to economic. For example, a national carbon emissions trading scheme demonstrates economic innovation directed towards a society’s environmental needs.
Innovation over time#
Innovation is becoming increasingly important on a societal level, driven by both opportunity and necessity. Opportunity, from approaching the beginning of a fourth industrial revolution, where the disruptive platforms of machine learning/artificial intelligence, robotics, biotechnology and 3D printing continue to transform our economies and workplaces. Necessity- to in turn adapt to these changes, as well as tackle the myriad of challenges humanity faces in the 21st
At the same time, it is important to acknowledge that innovation can lead to unanticipated consequences. Consider for example, the internal combustion engine automobile. It allowed humans to move around much faster and easier, solving various limitations of horse and buggy (such as horse manure lining the streets!). However today the transport industry is responsible for 15% of global greenhouse gas emissions, contributing to one of humanity’s most urgent challenges.
This cyclical nature of innovation over time is visualised in the diagram included below.
A case study: Tesla#
The electric vehicle manufacturer and energy solutions provider Tesla is an interesting example of recent innovation relevant to current environmental challenges. Led by entrepreneur Elon Musk, Tesla’s mission is to accelerate the world’s transition to sustainable energy. It has rapidly innovated on the design and production of its electric vehicles- for example, the integration of battery packs, the incremental self-driving software, and the vertical integration of production in their manufacturing gigafactories. Another aspect of the company are its solar panel and Powerpack power storage systems, which allow homes to generate and store electricity for personal use, and to share with community
While there is a long road ahead, other electric vehicle manufacturers are also demonstrating progress. Falling production costs could mean the sales of new electric vehicles could eventually supercede conventional vehicles in this decade. This transition could be as significant as humanity’s transition from horse and buggy to motor cars, helping with our climate change response and spurring innovation in adjacent fields. Do you think there are any unintended consequences however, that may emerge from this development?