Repost from Branding in Asia
https://www.brandinginasia.com/how-the-hyundai-way-is-shaping-automotive-innovation
September 9, 2024
On the recent 2024 CEO Invest Day, Hyundai Motor Company revealed its new “Hyundai Way” strategy and outlined its mid-to-long term goals.
For almost 20 years, I have explored and articulated ‘The Hyundai Way’ in my publications, media, and lectures. Early on, I realized that it was an innate quality and required a deep understanding of company and workplace culture gained through hands-on experience.
The Investor Day event outlined strategies, action steps, and timelines. Hyundai Motor leadership presented a flexible response to market conditions and a focus on electrification, as well as an expanded lineup of vehicles through its “Hyundai Way” strategy.
As Jaehoon Chang, President and CEO of Hyundai Motor Company, said, “Under the Hyundai Way, we will respond to the market with agility thanks to Hyundai’s unique flexible response system.”
In the following commentary, I look at the evolving but grounded “how” of the “Hyundai Way” and the methods Hyundai has used to achieve past successes, which I will strategically build upon.
“Can do Spirit”
First, and at the core, Hyundai has always been embodied with a “Can do Spirit” despite the odds—and this heritage is doing what others have said is impossible.
This “Can do” attitude means attacking challenges with 110% commitment through strong will to overcome obstacles.
In Korean, this is referred to as Ha myeon dwaen da, which translated means, “Even if it’s impossible, it’s still possible.” Then, I’d add “Move with Speed.”
For example, regarding “Can do Spirit,” in my work, I often share Korean core values, norms, and expectations with teams globally—those long associated with Korea would agree—a shared drive to tackle the impossible with a “Can-do Spirit.”
Even those entering the ranks in Korea soon acculturate and embrace these values… seeing what the company has achieved over the past decades.
Innovative thinking
Hyundai has a rich heritage of entrepreneurial innovation. This is forward-leaning, innovative thinking, especially when faced with challenges. Hyundai, the name adopted in the 1940s when an entrepreneurial startup, means “Modern,” showing forward-leaning origins, heritage, and DNA.
“Hyundai, the name adopted in the 1940s when an entrepreneurial startup, means “Modern,” showing forward-leaning origins, heritage, and DNA.”
In the rapidly evolving global automotive industry, Hyundai Motor has emerged as a trailblazing innovator, breaking away from its traditional role as a fast follower.
At the core of Hyundai’s future success will be its strategic metamorphosis. Its commitment to leading innovation, exemplified by its ventures into Boston Dynamics robotics, Supernal urban air mobility, and Motional autonomous driving, has redefined its brand identity and challenged the conventional paradigms of automotive manufacturing and design in many areas. I’d layer on the move to developing Software Developed Vehicles (SDV) equipped with High-Performance Vehicle Computers (HPVC).
Risk-taking
This means taking bold action. They seek opportunity and then act while assuming ownership and responsibility. Hyundai has transitioned from a Fast Follower to a Game-changer and first mover.
Generally, a fast follower closely watches and tracks a brand leader and then quickly emulates. This eliminates many risks.
Most significantly, fast followers can capitalize on profound economic savings that game changers and the first movers must invest in new technologies, such as development costs and investments running into the billions.
On a more practical level, fast followers wait for a concept to be proven and “bugs” to be worked out. Then, they can spare their customers from recalls, downtime, and inconvenience.
In highly competitive industries like automotive, Hyundai, now a first-mover brand leader, holds an advantage and will be seen by customers as offering something new and exciting.
This advantage can translate into new vehicle sales, which are the drivers for any OEM.
Bold Challenges
With that, I want to layer on a long-time intrinsic observation. Hyundai teams and leadership have embraced challenges over the years. This includes becoming a top automaker and now new targets such as 5.55 million annual global sales, selling 2 million EVs per year, offering a full lineup of EV models ranging from affordable to luxury and high-performance, launching Software Developed Vehicles, and bolstering corporate value and shareholder return.
In a Seoul meeting with several former executives, I discussed the Korean company’s move to Mobility. I mentioned that some in the West feel that Korean car makers still need to sell many ICE (internal combustion engine) cars and SUVs—the ICE vehicle profits as an offset required to fund the new projects.
Still, somewhat surprisingly, a senior Korean paused and, with conviction, pointed out, “They always needed a farsighted goal—best if it seemed impossible!”
Significantly, embracing bold challenges means that what others will doubt and may see as unreachable can and will be achievable—frankly, that has always been “The Hyundai Way.”
Questions? Comments dsoutherton@bridgingculture.com
Korean Design in Focus: Hyundai–From Fast Follower to Game Changer
By Don Southerton August 19, 2024
I am honored and humbled that my work is showcased in the Branding in Asia series on Design Korea.
It will run about 30 articles over the next two weeks.
https://www.brandinginasia.com/hyundai-from-fast-follower-to-game-changer
A game-changer introduces something with such significant added value that it stands out from the competition. Game-changers transcend traditional business boundaries, dominate their niche, and become the preferred choice for customers, clients, or followers. They become the go-to company, service, expert, or influencer.
Crucially, a first mover gains a competitive advantage by being the first to bring a new product or service to the market and establish strong brand recognition and customer loyalty.
Over the past few years, South Korean companies, from startups to conglomerates, have aspired to be game changers, often to break out of their secure and well-earned niches.
In the rapidly evolving global automotive industry, Hyundai Motor Group has emerged as a luminary, breaking away from its traditional role as a fast follower to become a trailblazing innovator.
In 1974 Hyundai tapped Giorgetto Giugiaro to design the Pony.
This transformation, marked by a bold pivot towards electric vehicles (EVs), autonomous driving technologies, and a wider range of mobility solutions, has positioned the South Korean giant at the forefront of an industry facing unprecedented disruption.
The evolution of design by Hyundai has been a key factor in its transformation from a fast follower to an industry innovator as it has steadily reason through the ranks of the global automotive industry.
Over the past decade, Hyundai has made significant strides in elevating its design language, moving from functional and conservative aesthetics to bold, distinctive, and forward-thinking designs.
Hyundai initiated this shift by introducing the ‘Fluidic Sculpture‘ design philosophy in the late 2000s, which brought more dynamic and expressive forms to Hyundai vehicles. Originally conceived in 2007 by M.K. Chung and Oh Suk Geun, Fluidic Sculpture was a much-needed design platform that brought consistency among the brand’s models.
The company further refined its approach with “Fluidic Sculpture 2.0” and later, the “Sensuous Sportiness” design identity, which emphasizes harmonious proportions, dynamic silhouettes, and unique details that set Hyundai vehicles apart in the market.
Hyundai’s design evolution has not been limited to just the exterior of its vehicles. The company has also made significant advancements in interior design, focusing on creating spaces that are not only aesthetically pleasing but also highly functional and technologically advanced.
This holistic approach to design has been particularly evident in Hyundai’s electric vehicle lineup, such as the IONIQ series, where the absence of traditional powertrain components has allowed for more innovative and spacious interior layouts.
By integrating cutting-edge technologies seamlessly into their designs, Hyundai has managed to create vehicles that are both visually striking and highly intuitive to use, further solidifying its position as a design leader in the automotive industry.
Furthermore, Hyundai has revamped its overall design capabilities. The new division will spearhead the Group’s efforts to design all-electric vehicles and future mobility solutions, including purpose-built vehicles (PBVs), robotics, and advanced air mobility (AAM).
Leading Innovation
At the core of Hyundai’s success is a strategic metamorphosis. The Group has redefined its brand identity by venturing beyond traditional automotive manufacturing.
Its investments in Boston Dynamics robotics, Supernal urban air mobility, and Motional autonomous driving demonstrate a commitment to leading innovation across multiple technological frontiers. This approach challenges conventional industry paradigms and positions Hyundai at the forefront of future mobility solutions.
Generally, a fast follower closely watches and tracks a brand leader and then quickly emulates. This eliminates many risks. Significantly, fast followers benefit from substantial economic savings that game changers and the first movers must invest in new technologies, such as development costs and investments running into the billions.
On a more practical level, fast followers wait for a concept to be proven and issues to be worked out. Then, they can spare their customers from recalls, downtime, and inconvenience.
We also see Hyundai as a significant first mover. In highly competitive industries like automotive, the first mover brand leader holds a significant advantage and will be seen by customers as offering something new and exciting. This advantage can translate into new vehicle sales, which are the drivers for any OEM, as we have seen with Tesla.
While some manufacturers are content with a fast-follower approach, others are recognizing the potential benefits of being first movers in key technological areas. Companies that take the lead in these areas can potentially shape industry standards, capture early market share, and establish strong brand associations with innovation.
In the less occupied field of game changers, Hyundai looks to command a market-leading position as a first mover. One of the ways they are doing this is by implementing changes faster through a ‘Software-defined Everything’ (SDx) strategy, which involves redefining vehicles, fleets, and transportation systems with software and AI. The plan is to incorporate software development methods into the vehicle development process and mobility at a time when the industry is being disrupted.
This strategic shift has the potential to redefine how we interact with vehicles and reshape the entire mobility ecosystem.
As Hyundai continues to push the boundaries of innovation, the world watches with anticipation to see how this vision will unfold.
https://www.brandinginasia.com/kdif