The Tale of Two Innovators
Terrell Jones
Keynote Speaker, Author, Innovation & Disruption Expert,Founder Travelocity, Founding Chairman Kayak.com, Chairman Amgine.ai
I own a Model A Ford and a Tesla. They couldn’t be more different. One is a high-tech, computer-driven, electric, cutting-edge beast, the other is a low-tech, putt-putt fun machine. Yet when it came out the Model A changed its world.
What about Henry Ford vs Elon Musk?
Does the 100 years between their birthdates mean they are totally different entrepreneurs? Actually they are more similar than you might imagine and their careers have followed similar paths.
Both wanted to build inexpensive, mass-market cars, yet both started by building expensive cars because that’s what was selling at the time––and they needed experience to build less expensive cars.
When each started they faced a lack of infrastructure to support their products. The Model A had very high ground clearance to fight roads deep in mud. And, luckily for Ford, most farmers had gasoline at the farm to power stationary engines, as there were no roadside gas stations! Musk had to build a nationwide network of car changing stations or his cars would never have taken off.
Ford created a network of car dealerships to bring his cars to market. Musk is fighting dealers (and states) to sell his cars online and go around dealers.
To drive his costs down Ford vertically integrated and built what was, at the time, the biggest factory in the world, River Rouge. Tesla has done the same with its Gigafactory, which will eventually be one of the biggest buildings in the world.
Both invented deployed technologies to make their products a success. Ford credited Vanadium steel and a three speed transmission. Tesla a super cooled long range battery and constant software updates to keep ever improving the driver experience.
Both were notoriously difficult to work for, as hard driving genius leaders generally are.
Both listened to customers and workers. Ford famously watched and listened to workers in developing better assembly lines. Musk watches his Twitter stream to get new product ideas.
Both also didn’t listen. Ford didn’t listen to critics who ridiculed River Rouge and his $5.00 wage. Musk doesn’t listen to many critics of his overall plan but really listens to customers about products he’s released.
Both slept on the production line, sweated the details and invented work-arounds at the last minute to keep their companies from going bankrupt.
Both definitely disrupted the world of transportation (and of course Musk’s story isn’t over yet).
The point of this story is that the core of innovation and entrepreneurship hasn’t changed all that much in the last 100 years:
- Have a big audacious idea
- Find a way to get from here to there (expensive cars to inexpensive for example)
- Deal with tremendous difficulty along the way but don’t give up.
- Sweat the details, and live and breathe your own product.
- Build a great team
- Listen
Follow me on Twitter @TerrellBJones
Strategic Business Planner - Energy Storage at SMUD - born at 320ppm
5 年Thanks for sharing this insight Terry. In reading your article, it seems that some of Ford's and Musk's magic comes from being great at combining technologies in novel ways to give their ventures a unique twist that captures customers imaginations sufficiently well that they will open their pocket books at scale. Ford seems to have combined the petrol engine, transmission and steel, with the mass production assembly line and sold the dream with the $5 wage.?? The original Tesla Roadster could be considered a combination?of Lotus Elise DNA, Tom Gage's ESC and Panasonic’s laptop batteries. Musk essentially turned a $30,000ish great, but niche and moderately profitable British sports car into an awesome $90,000 electric car that enabled Tesla to release their first minimally viable product. The original Roadster is a lot of fun to drive, had a lot of margin in it even at low volume and sold the dream of the awesome electric car that was elusive up until then.? The Tesla Model X?could be considered a combination of the Model S, DeLorean Falcon wing doors and super accurate sensors which results in an "Aspirational", high margin product selling for $130,000+. The Model X is a lot of fun to drive and has a lot of margin in it, even at moderate volumes, selling the dream of a sports car like performance that can lug the family around without burning down the planet.? In comparison to a "Resignational" product selling for $30,000+ that the mini-van might represent, which is only likely to make a moderate profit if produced on a vast scale. Musk is going even further combining the eco-system of the electric car, solar roof and battery storage. The jury is still out if Musk can sell that combination profitably, but it sure is interesting to watch the chef mixing all this up right before our eyes.??