Tesla’s secret. Your organization can do this too!
Tesla has been one of the most talked about companies in recent months. Where the company has been in the news in recent years mainly because the balance sheet value (and also the share price) was under enormous pressure, the company is now the star in the market. Not because of their cars, but because of an element that every organization has. You can also implement the secret of Tesla in your business!
From car model to operating model
Recently, Volkswagen CEO Markus Duesmann said Tesla is 2 years ahead of the auto industry. But why? Tesla is just a car maker, right? And the electric cars still have a challenge in range and charging time. Yet Tesla manages to overcome these challenges. In its short existence, the company is already worth more than Toyota, Volkswagen and BMW combined.
The secret of Tesla is in the operating model. By working from a data-centric platform and using Emerging Technologies such as Cloud Computing, Machine Learning and Artificial Intelligence, Tesla is able to gain a huge lead over the competition.
The big difference with the competition is that Tesla is not a car manufacturer. It is a data-centric (automotive) cloud business. They built the car around software.
The competition there is mainly application-driven. They first focus on the car and then put technical gadgets in it. So we see that established operating models no longer work. They are not adaptive enough to provide a fast Time-to-Market. But there is more than a quick Time-to-Market.
Factor faster, cheaper and sustainable
How adaptive is your operating model? Is your organization more of a Tesla or a Renault…? Tesla works from a data-centric model, supported by the latest technologies. The company is able to enter the market faster, cheaper and more sustainably (in the context of the circular economy).
Tesla revealed Tuesday (22-9) that it could launch a car within 3 years for as little as $25,000, with a battery that is cheaper and more efficient than current models. The innovation is in the battery that gets smaller yet more powerful. The company even has a (almost) working model.
Tesla CEO Elon Musk: “It does work but not with a high yield,”
If the planned innovations bear fruit, the car’s range could increase by 54%, costs decrease by 56% and investment in Giga Factory’s could decrease by 69%!
While the car industry is still busy catching up with the first generation of Tesla cars, Tesla itself is already working on new innovations to eat the Profit Pools from the market. Because now that the High End market has been conquered, Tesla is also taking the broad middle range of the market.
Imagine if your organization can achieve this too! The good news is, you can.
Value creation in your organization
Tesla’s secret is not a big secret. They use the latest technologies in combination with a data-centric platform. They are able to reduce operational costs and increase turnover and cash flow. They have an extremely fast Time-to-Market (and are ahead of the competition) and are able to generate exponential balance sheet value (and stock market value) with this new operating model. This is what we at FutureXL call Digital Transformation 4.0.
Technology alone is not enough, transform the operating model
Many organizations choose to move all their data to the cloud. However, this is not enough to generate revenue. Many of this IT transformation fail because the emphasis is on the business model in combination with. cloud technology. These complex projects are led by the IT department with the remote business. Or the steam train 2.0! The power lies in transforming the operating model.
The Digital Transformation 4.0 is in fact the company’s financial re-engineering to accelerate all the overdue maintenance. For example, Tesla does not have old IT legacy systems, but all data is central. Opening up the company’s data is the only alternative to reduce the “cost to serve” of the operating model by factors on the one hand, but also the raw material, provided that data is organized in a centric way, to be able to create value on the other.
With the Digital Transformation 4.0, your organization will become the new Tesla in your playing field.