The remarkable change that Tesla is driving so far forward is primarily the fact that Tesla is not a classic automotive company. Rather, Tesla can be described as a technology company. The company’s rating is based primarily on the fact that Tesla has recognized the enormous importance of data collection. Because data is the currency of the future. In 2019 alone, Tesla delivered more than 367,000 cars. These cars are already on the roads around the world, collecting uncountable data every day. The autopilot is already co-piloting in the background and is trained by the thousands of drivers with thousands and thousands of operating hours worldwide.
This lead alone can hardly be caught up by the other companies in the automotive industry. A similar effect could already be observed at Google. Through millions upon millions of search queries, the algorithm is developed further every day and the competition can no longer catch up with this knowledge lead.
What does this mean for the economy? Have we rested too long on our old successes? Have the license plates not been recognized?
It seems that it is not only the automotive industry that has missed the moment to make its portfolio fit for the future and at the same time to convince customers with attractive and contemporary offers. Many German companies seem to have missed the moment to adapt to the new times and new developments on the market. Product innovations, adapted to the new digital and changed world, are missing in many industries. Small and medium-sized companies are currently still boasting considerable sales figures and the so-called “hidden champions” are boasting a full pipeline.
Is it really too late for companies, or is this the moment when they have to adapt to the new circumstances?
If we follow the theory of Peter Diamandis and Steven Kotler, then we are now in times of exponential growth. In times in which exponential technologies go beyond the pure commercial contribution. They allow us to do more, learn more and earn more than ever before. Exponential technologies are transforming the way we think, behave and benefit each other. These technologies change one market after another.
Looking here at the developments of exponentially growing companies, what they all have in common is that they flew under the radar for a relatively long time before they passed all market participants with remarkable growth rates. Traditional market participants, on the other hand, are losing more and more market share.
The moment when the other market participants fly under the radar and are underestimated or not perceived by the traditional market participants is called myopia. The best moment to initiate change and a new strategy is when the other products are performing well and continue to grow. During this period, the profits from the other products can be invested in the development of the exponential product.
But for most companies this moment is already over. Therefore, the question arises, is there any possibility left to react to the current situation and to enter the market with new products?
Today is the moment for change
As they say, better late than never. That should be the motto. You can never be sure whether someone is not already trying to enter the market with his “Tesla idea”, but you should definitely initiate the change.
You should consider the following: The further one has progressed in the traditional product life cycle, the more radical and complex the change must be. But it is possible.
The change may subjectively feel worse than the dwindling traditional business model. However, it should be remembered that the more radical change a company has to go through also means more wear and tear. However, if you embrace the change and accept that you have to go through a valley, the exponential products can help a company reawaken.
Measures to get to the strategy of the day after tomorrow
What do I have to do to get new exponential products onto the market? What strategy do I have to implement to succeed in the radical change?
There are different methods to meet the challenge: One of the most essential is to throw traditional patterns of thinking overboard, create new thinking strategies and put a substantial part of the thinking into the vision of the future. In doing so, one does not think about which product will be launched on the market tomorrow, but rather how the entire market will develop and what is the wish of each customer. In a constantly evolving environment, where things are changing faster than ever before, special visions for the future are needed.
In doing so, one has to imagine things that may no longer be the core of the current product portfolio and essential technologies do not exist today. With this way of thinking and the irrepressible attitude to constantly change and improve, failed companies can still succeed in starting the future today.
There are many positive examples where this change has worked and which are now holding their own in the market.
Take advantage of these opportunities and develop into an exponential future.
Good Luck,
Jürgen Kreuz
I also convey the contents described above in workshops where you can develop your future vision for products, departments etc.