Example: Ford

Ford recently ramped up a system by Siemans to monitor the software and its update status in all new vehicles in the field. The system allows technicians at dealerships to know exactly what's in a vehicle and download updates. It's a major step toward life cycle learning and control.

Bill Ford has been frustrated for years trying to field more fuel efficient, less resource gobbling vehicles. Until recently, Ford's U.S. market base preferred big vehicles, and that's where the margin was. Cash drain limited the rate at which lower footprint vehicles could be developed.

That's a problem with the expansionary commercial system. Just as big development advances are needed, reduced revenue forces financial survival to the forefront of concern. 

The Siemens system is an advance toward life cycle management. More big changes are needed. The system will change when Ford does not sell vehicles, but instead sells personal transportation services, and advises customers on how to do well using less. 

That is, somewhat like Apple, the business is what people need to do with vehicles and not the vehicles themselves.  However, vehicles have become personal status symbols, and so weaning customers toward a different goal will not be easy.


RELATED ARTICLESExplain
Compression Thinking
Compression vs. Expansion Thinking
Compression "Technomics"
Economy of Learning
Example: Ford
Example: Apple
Graph of this discussion
Enter the title of your article


Enter a short (max 500 characters) summation of your article
Enter the main body of your article
Lock
+Comments (0)
+Citations (0)
+About
Enter comment

Select article text to quote
welcome text

First name   Last name 

Email

Skip