Wednesday, September 4, 2013

Ferdinand's 12 Principles of Innovation: Well, Just The First Three For Today

        How did Ferdinand Porsche do it? How did he find great success in his business? I was doing some reading earlier today about a film called Porsche: Principle Innovation.  The research film was put together by Michael Shamiyeh (head of DOM Research Laboratory) and his research team to uncover the greatest highlights about both of Porsche's excellent business and social tactics. I don't want to discourage you from reading by making this blog too long, so I'll briefly cover only the first three principles:

#1: Be Creative. Anyone can be creative without taking a single art class. The way Ferdinand did it was by acquiring several different kinds of knowledge and abilities and by fusing some of those things together.

Ability to Pursue Knowledge + Willpower to Acquire Knowledge → Fusion of Ideas

Ferdinand had a hunger for knowledge, and he used it to his advantage to devote his own personal talent to make something of it. He started as a plumber and then went on to working making current generators for electric vehicles. From there he had occupations developing his own electric engines and gas-electric hybrid vehicles. Swinging vine to vine allowed Mister Porsche to attain a wide range of skills that would eventually lead to one of the greatest auto companies today.  

#2: Experiment... A LOT. Trial and error can be scary (more in particularly the error part). Not only is it risky but also relatively costly. Ferdinand understood this but proceeded to experiment anyway. If ever he came across an employer that refrained him from experimenting, he would simply move onto an employer that could afford to let him expand on his creativity and brilliance. He persisted to find opportunity to use his knowledge for something constructive and innovative.

#3: Gear Towards Futurism. Dare to change some rules of how things are normally done. Ferdinand Porsche played his cards well by being an independent car designer apart from all of the major car designers of his day. The average car in the industry sold for 5,000 Reichsmarks while consumers pressed to attain cars at lower, more affordable price. Porsche took the bait by listening to the people  and using his smarts about the car industry. What was the result? As an independent designer and a well-known racer, he changed history by revolutionizing the car industry and market: Ferdinand designed and sold the Volkswagen Beetle for less than 1,000 Reichsmarks each. The span of demand from consumers expanded being that the price was one-fifth the price of other cars  There's controversy of whether Porsche designed the Beetle himself or whether the design was stolen. Regardless, he took the idea and ran with it like a track star. 

Porsche had to ask himself a few questions to come up with his strategy to land his foot on a sweet spot in the market:  What is it that the people want that they don't yet have? How can the product be distinguishable from similar products? What obstacles and technicalities are in the way? Where are the doors of opportunity, no matter how small, that can help manifest the idea?