High-leverage Innovation, Part Three: Lessons from the Auto Industry
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Knowledge@Wharton is the online research and business analysis journal of the Wharton School of the University of Pennsylvania. Launched in 1999 to disseminate knowledge from the school and other sources to a global business audience, it is published in English, Spanish, Portuguese and Chinese. The Knowledge@Wharton Network has more than 1,000,000 registered users worldwide.
In this final part of a three-part interview, Wharton professor of operations and information management Karl Ulrich and Kevin Dehoff, a partner at Booz & Company, talk about innovation in the auto industry -- what constitutes it, why some manufacturers, like Toyota, are more innovative than others, and the role that customers play in innovative product development. 
