Tesla was recently named to the top of The World's Most Innovative Companies list, produced by Forbes magazine. This is despite the fact that the company will not be turning a profit this year. Of course, there is a strong expectation that the company will become profitable. But in the meantime, its approach to innovation is, in itself, innovative and somewhat counter to the standard operating procedures used by many so-called innovative companies.
Hal Gregersen, Executive Director of the MIT Leadership Center, and co-author Jeff Dyer, recently examined some of the unusual strategies and tactics used within Tesla in "Decoding Tesla's Secret Formula," an article that accompanied the Forbes' list. Here are some of the ways Tesla is defying convention--even the convention of innovation.
Forget the MVP
The Lean Startup methodology recommends companies focus on developing a minimum viable product (MVP) before creating a full-blown product. The idea is that the MVP is the core of a build-measure-learn feedback loop that helps guide a company to building a product that solves a real problem, and one that companies will buy. The measure-learn aspect of the loop addresses the "buy" aspect of developing a product.
According to Gregersen, Tesla takes a completely different approach. "Tesla never pursued the classic route of going after low-end, price-sensitive customers first with cheaper, inferior technology. It doesn't pursue nonconsumption, or customers who don’t currently drive cars," writes Gregersen. "Tesla has instead proved to be different kind of disruptor, a high-end version that can be just as troublesome for the incumbents."