Problem
Ts. Amirul, a Technologist at Campus Corporation, has just completed a new design for a future car that incorporates sustainability elements. The new product appeals to the environmental-friendly concept, which will utilize a smaller number of materials, high efficiency of low energy consumption and zero emission of greenhouse gases. The new car will also introduce the technology of touch screen for auto driving and intelligent safety system. During the general board meeting with the shareholders, he announced that the new car development project would yield higher income for the Group of companies.
However, the board of directors is sceptical about the possibility of the new design becoming the next dominant design in the automobile industry. Becoming de facto standard is indeed a privilege to the Group of companies. Developing a new product is expensive, time consuming and extremely risky. The new car development will need a lot of capital to facilitate infrastructure and new equipment. The shareholders are reluctant to approve his proposal. He seeks your advice on how would he be able to convince the shareholders and proceed with the project to produce the new eco-friendly car design.
I. In relation to the case, elaborate any three reasons for a design to be selected as a dominant design.
II. Advice Ts Amirul on the case of competence-enhancing innovation and competence-destroying innovation.