To stay relevant in business means to Innovate and to Innovate means getting the right talent who can envision the future and create it. The iconic Ford Motor company yesterday announced a new CEO even before the current CEO Mark Fields could finish his term. Industry experts see this as a sign of desperation by Ford . The current CEO failed to communicate the strategy for the future and it was time the board decided to look for a change and get in someone who could deliver results sooner.
The automobile industry is going through a big phase of experimentation and a massive churn is likely to happen in the coming few years. The likes of Google, Uber and Tesla have been investing into self driving cars and electric cars. The shift would mean that the current crop of car makers like Ford or the GM, Chrysler can no longer sit back and not worry about the future of their businesses. While it is true that Ford and its likes have started investing into the self driving or electric cars the point that really needs attention is if it is enough? Do they have the right talent to drive these initiatives. On the other hand the current generation of companies who are driving these changes be it Google or Uber or Tesla or the self driving software makers have to an extent succeeded but that does not mean they will find find it easy in the future.It is still early days.
Marketplace is very dynamic and we have seen enough examples of how companies who were giants in their fields were thrown out of business in a few years by much smaller but innovative competitors. We have seen how Kodak was replaced by the digital camera and how the Walkman gave way to the I Pod or how CDs were replaced by the USB drives. All these changes happened in a span of few years. Having said that making cars is not a joke , the sheer no of components that go into making a car and the supply chain that is needed to make it fully functional is something that the traditional car companies have learnt and mastered over the years. Do their nimble footed competitors have what it takes to build factories and assembly lines of the size that a Ford or a General Motors have done throughout the world.
Only time will tell who will be the ultimate winner....
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