Innovation Creates Value

Innovation, Value and the Ford Model T

The Ford Model T was introduced in October 1908, selling for $850.00

By August 1916 the price had dropped to $345.

Innovation was the key to Ford’s Success

Other companies were trying to produce low priced cars but Henry Ford used innovation to drive down the price.

Although Ford is generally recognized as a pioneer for mass production techniques his company developed many other innovations that helped to produce this dramatic price decrease. Its important to recognize that he and his company looked for every opportunity to make improvements and reduce costs – he used process improvement before the term was invented together with product innovations to reduce the price of the model T.

Data Source:

Ford: The Men and the Machines

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