Opinion: How Could MINI Innovate?

In short, we have no idea. There are many things that we would like to see MINI do better, but none of those things are truly innovative and should be the standard for any premium brand anyway. You are probably wondering where we think MINI should do better, so here is a quick list: sales experience, service experience, product quality, and marketing. Because of the types of products MINI sells (i.e. combustion engines) and because of the way BMW North America, and by extension MINI USA, is currently set-up (i.e. dealer network), it is actually difficult to truly innovate in most of the areas mentioned above. So what else is there?
When we talk about innovation, it doesn’t have to do with incremental progress that makes the current state of a product or service marginally better. In this case, we want to touch on [disruptive innovation](http://en.wikipedia.org/wiki/Disruptive_innovation) and we believe this topic is relevant for a number of reasons.
MINI was reborn about 13 years ago and during that time we’ve probably seen one real innovation coming from them. The brand managed to create a niche market focused on premium small cars. While it didn’t really disrupt the automotive space, it established MINI as a distinctive brand and paved the way for other manufacturers. [Many](http://www.fiatusa.com/en/abarth/) have [tried](http://en.wikipedia.org/wiki/Citroën_DS3) to [copy](http://en.wikipedia.org/wiki/Audi_A1) BMW’s recipe, but with limited success. Aside from that, we haven’t seen real magic coming out of MINI recently. Car companies are also enjoying record sales across the globe. They could probably use this momentum to place audacious bets, and potentially disrupt themselves. Finally, there are many rumors about a certain [fruit company](http://www.apple.com) entering the space in the next decade. And based on their track-record, I wouldn’t hold still if I were a luxury car brand. Ask any watch-maker how they feel at the moment.
Reflecting on the history of the automotive industry, there hasn’t been disruptive innovation since the [Toyota Production System](http://en.wikipedia.org/wiki/Toyota_Production_System). Some observers will point out to the creativity of Tesla, and rightly so, but Elon Musk’s company has yet to rock the boat. Others will point out to Uber, rightly so again, but a mix of human capital, regulations, and technology limitations are holding them back for now. Given all that, how can an incumbent such as MINI disrupt the automotive market, and perhaps at a greater scale, transportation?
Since we are not all-knowledgeable, we would like to ask our smart readers what their opinion on the matter is. However, before you jump to the comments section, you might want to keep in mind the following factors from the excellent [Asymco’s Horace Dediu](http://www.asymco.com/2015/02/23/the-entrants-guide-to-the-automobile-industry/):
– Roads have not changed in decades and cars obviously rely on them to go anywhere
– Disruption in the automotive space mostly came from production systems
– There’s never been disruptive innovation based on drivetrains
– Range and congestion are the two ultimate problems that needs solving
8 Comments
<p>There is plenty of room for in-car innovation. Traditionally all is centered arround the driver but now a days the co-driver is as much important and easy acces to information in their space is somthing that is worth looking at. Ofcourse without disturbing the driver zone</p>
<p>This is such a great question. I like Gordon Murray’s answer, and there was a time when one could have said MINI did too.</p>
<p>Can you expend on that since everyone might not know who he is? Thanks!</p>
<p>Gordon Murray is an industry veteran, with roots in F1 and in consumer automotive design and manufacture.</p>
<p>Murray’s vision of the automotive future manifests itself in his iStream project, which consists of a very small vehicle (rejoice!) that is produced in a highly disruptive fashion. It’s described in this way on iStream’s site:</p>
<p>“iStream® will be the biggest revolution in high volume automotive manufacturing since Henry Ford introduced the production line over a century ago. Conventionality and conformity have had their day.”</p>
<p>(That last sentence is reminiscent of MINI in 2002, no?)</p>
<p>The impact of iStream’s disruption lies, IMVHO, mainly in Murray’s manufacturing process, as small transportation solutions have been around for a very long time, as have have low-carbon solutions (read: electric vehicles).</p>
<p>Murray’s iStream platform is on offer – via a licensing agreement – to any and all automotive manufacturers. Including BMW/MINI, of course.</p>
<p>Ironically, MINI once would have been an obvious and beautifully symbiotic partner, but since 2007 MINI’s leadership has arguably moved in the opposite direction entirely.</p>
<p>A deeper irony still is BMW’s i3 project. I see the i3 as an unnecessary and costly manifestation of Murray’s fundamental ideas; small platform with low-carbon propulsion manufactured modularly.</p>
<p><a href="http://www.gordonmurraydesign.com/GMD/iSTREAM.html" rel="nofollow ugc">http://www.gordonmurraydesign.com/GMD/iSTREAM.html</a></p>
<p><a href="https://www.youtube.com/results?search_query=gordon+murray" rel="nofollow ugc">https://www.youtube.com/results?search_query=gordon+murray</a></p>
<p>Why can’t they build this?</p>
<p><a href="http://www.caranddriver.com/news/pml-flightlink-electric-mini-cooper-car-news" rel="nofollow ugc">http://www.caranddriver.com/news/pml-flightlink-electric-mini-cooper-car-news</a></p>
<p>How about a drivetrain like the i8? Perhaps that is fantasy… I could also see them innovating further in the infotainment options. The compact premium segment seems to be growing and getting more competitive, so I see MINI will need to get on their game to remain competitive. I think they just need to remain stylish, fun and fuel efficient. If they can deliver this trifecta, as they have done already, and just improve upon it, I see continued success. Perhaps if market share is falling, they can increase the value by adding more standard features a la the business plan of Hyundai/Kia (lots of features with not a lot of expense). OH, the concept called the MINI Businessman showed a lot of design innovation, build that!!!!!!</p>
<p>Wow, I am blown away at how little people had to offer… Very disappointing</p>
<p>How about fuel cell technology? BMW has a prototype so why not? If the argument was made 100 years ago that there aren’t enough gas stations and bought that then we’d still be riding horses and they’d be pulling wagons. Hydrogen fuel worked in the space program and is the fuel for tomorrow. Battery power is not the solution. Now if you want to go mad, how about a twin turbo charged 2.5L W6 engine with AWD and 4 pot carbon ceramic brakes?</p>