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Google, Inc. (NASDAQ: GOOG) runs a pretty interesting shop. Unlike most manufacturers, almost all of its products are web-based, so it doesn't need to have roads to get its product to customers. It can release products in beta testing to ensure they don't break in the real world. Customers are involved in the making of the products, from the point of design until final release. But could automakers design, test and release products like that, or are there more variable to consider?
Ford Motor Co. (NYSE: F), General Motors Corp. (NYSE: GM) and others are an insular group; highly proprietary, using limited resources and designing and releasing products they "hope" become successful. In other words, they're reactive and not proactive like many successful web companies. Perhaps automakers need to take this chance -- with or without federal bailout money -- and re-invent the way they do business.
It sounds like the epitome of out of the box thinking. Getting customers involved with every aspect of design and every step past that. The automaking business could learn a lesson on how to make products with customers and not for customers, according to this BusinessWeek article.
Are they up to the challenge? This isn't a small change but a paradigm shift. Otherwise, the automaking business may go back to status quo -- and perhaps fail yet again.
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Reader Comments (Page 1 of 1)
2-04-2009 @ 11:47AM
Scott Monty said...
While I think think Google is an admirable model to aspire to, there are obviously some differences between software design and automobile development.
As I said on the BW.com article, Ford *has* involved customers in aspects of our development & design process. The award-winning SYNC system that allows drivers to operate their phones and mp3 players (including iPods) hands-free is a great example of what we can create when we listen to customers.
Or the side-step on the F-150 that makes it easier to reach into the bed of the truck - that was from listening to customers.
There are hundreds of other examples like this, that, had the author been interested enough in discovering, we could have shared with him.
Bottom line, as another commenter put it: "Google can release products as unfinished betas because the cost of manufacturing and distributing software is essentially zero. However, with cars, the cost of manufacturing and distribution is a lot higher than zero."
Scott Monty
Global Digital Communications
Ford Motor Company