In Life Sciences the percentage of outsourcing amounts to less than 30 % of the business. The automotive industry is outsourcing 70 % of the business. So I thought let’s go back to the sixties, to the point where the automotive industry had about the same characteristics in terms of percentage of outsourcing and technological governance as the Life Sciences industry has today.
In the sixties the Impalas, Galaxies and Chryslers refused to either stop or turn corners. The Ford Falcon, Plymouth Valiant and Chevy II were selling respectably but their ‘econo car’ image was boring.
By 1960 Lee Iacocca was named Ford Vice President. He had an engineering background. Iacocca acknowledged Ford’s stodgy image. He set in motion a four-year project team that performed research, market analysis and design. An outside party, JWT, the Chicago based advertising agency, was heavily involved. The idea came up to develop a car from the perspective of the emerging baby-boomer generation. A car unlike their parents’ car. A car with a price of under $ 2500. The requirements included sporty styling. In fact, a poor man’s Ferrari, a ‘personal car’ for younger drivers. After a series of concept cars, the parameters were laid out.
From an engineering perspective the Ford Mustang was heavily based on existing simple components. Much of the chassis, suspension and drivetrain components were derived from the Ford Falcon. The marketing campaign was unprecedented. The sports styling did the rest. The Mustang is the only pony car that has remained in production after four decades. Based on this ‘transforming idea’ the Mustangs pretty much had the sporty sedan market to themselves.
Even though the Plymouth Barracuda was introduced a few weeks earlier than the Mustang, it was obviously a mere facelift on the Valiant compact and only 88,039 were sold in 1964. The Mustang has sold 680,989 cars in the same period, which broke all records for new model introductions. Other pony cars followed, the Chevrolet Camaro in 1966, The AMC Javelin in 1968. In fact, the automotive market changed from an engineering-dominated market to a business-driven one. Outsourcing, cooperation and comakership started from this time on.
Nowadays we would describe the Ford Mustang as radical innovation. The engineers had the wisdom to give space to Life Style experts, designers and advertisers from internal and external sources. We would view the Barracuda as incremental innovation, a gradual increase from a technical device to more design. The Camaro and Javelin are followers. We must be aware that a high level of uncertainty is a hallmark of the radical innovation associated with the Ford Mustang. The most critical factor being the high uncertainty levels associated with the market. Hence, it’s not only Iacocca, Henry Ford II himself approved the concept and the budget.
In my opinion, this history provides us with some clues on how to handle main issues in innovation in Life Sciences and ICT. The answers to questions like ‘what do our clients really need’ and ‘why should our customers pay for it’ cannot be left to engineers and research staff. Engineers and scientists inventing new stuff and afterwards connecting it to the market will lead to ‘incremental innovation’ and not to transforming ideas.
To achieve radical innovation already in its earliest stages engineers must demand the involvement of competencies and resources, be it fashion designers, hairdressers, advertising people, surgeons, consumers or patients. For real success, build a team first and then come up with transforming ideas. My suggested recipe for taking the market for yourself: Team and Transform. Although you may have been the smartest student, I’m prepared to help you. I’ve learned my lesson. Did you?
Jos van Weperen
Business head of Darlingagency.eu (marketing communication), UpperBrightSide.com (innovation strategy) and managing director of Science-Please (Life Sciences community)