Innovation Creates Value

Innovation and Automakers

Watching a television commercial on Wednesday : Feb 18, 2015 I’m struck by the fact that the main feature for a large vehicle is that it’s a mobile hot spot. This seems to suggest that to outsell your competition you have to add value by focusing on information as opposed to the vehicle!

History shows us that as companies get larger they seem to stagnate and lose their taste, and perhaps ability, for radical innovation.

The Ford Model T had a gas consumption of 13-21mpg. The 2014 Ford Taurus averages about 23 mpg. Now that’s not a fair comparison the Model T weighed 1200lbs while the Taurus weighs around 4000lbs. So you could argue that the efficiency of the engine has improved four fold but then again its been 100 years and a four fold increase is hardly radical innovation.

Why haven’t car companies given us anything radical I wonder?

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