Tech startup founders normally draw their classes from the historical past of the knowledge expertise business. Nevertheless, firms have been innovating technologically for for much longer, that means there is perhaps some forgotten classes in enterprise historical past value revisiting.
On this article, we’ll focus on examples of the revolutionary practices of the Ford Motor Firm, based in 1903 by Henry Ford, that helped it revolutionize the car business.
1. Standardization
Ford Motor Firm was additionally a pioneer within the standardization of car components. By creating standardized components that might be utilized in a number of fashions, Ford was capable of cut back prices and enhance effectivity in its manufacturing course of.
First, when the components are standardized the demand for them is larger, which makes their manufacturing cheaper because of economies of scale.
Second, this additionally made it simpler for patrons to restore and keep their automobiles, which will increase the demand for standardized components additional.
Typically, it’s a fantastic observe to deal with your methods, code, designs, and some other components as lego blocks which you can standardize and repurpose. Entry to those blocks makes it less expensive to innovate and scale up manufacturing. That is essential for startups as a result of it helps you go from the idea stage to the growth stage as rapidly as doable.
2. Vertical Integration
Ford Motor Firm was one of many first firms to vertically combine its manufacturing course of. This meant that the corporate managed your complete course of of manufacturing automobiles – from mining the uncooked supplies to manufacturing their standardized components and assembling the completed product.
By doing so, Ford was capable of cut back prices and train higher management in its manufacturing course of, which additional helps innovation.
This isn’t a forgotten technique – Apple is a contemporary instance of an organization nice at vertical integration.
That stated, vertical integration could be very useful resource intensive and ought to be tried by startups solely after they’ve a longtime market and entry to plentiful capital.
Attempting to scale prematurely is, on the whole, an enormous mistake.
3. Steady Enchancment
Ford Motor Firm was dedicated to steady enchancment in its manufacturing course of. The corporate commonly analyzed its manufacturing strategies and made modifications to extend effectivity and cut back waste. This helped to maintain the corporate forward of its rivals and keep its place as a frontrunner within the car business.
It’s value remembering that Ford’s success might be boiled right down to them with the ability to promote automobiles less expensive than anyone else.
It is a essential mindset for startups, particularly within the effectivity part. In any case, after discovering out that there’s a marketplace for the services or products you might be providing, your subsequent order of enterprise is to ensure you can present this worth and develop sustainably. To do that, you have to continually optimize your processes and make enhancements to your value construction.
4. Worker Advantages
Ford Motor Firm was additionally one of many first firms to supply its workers advantages similar to well being care, pensions, and profit-sharing. This helped to create a loyal and motivated workforce and helped to cut back turnover and absenteeism.
That is essential for tech startups, by which you have to attract the top talent in your industry with out with the ability to pay them prime salaries straight. Worker inventory choices or different types of pay correlated with the efficiency of the corporate are among the greatest instruments you need to use to draw, encourage, and retain the individuals that might make your organization profitable.