CAR Management Briefing Seminars-#3

CAR MANAGEMENT BRIEFING SEMINARS - #3

How Do We Get Out of This Mess?
By Steve Purdy
TheAutoChannel.com
Detroit Bureau

Dave Cole, to whom I introduced you yesterday, and John McElroy, host of AutoLine Detroit and senior automotive media guy, spent three hours moderating a discussion among some very smart guys. James Tobin, VP of Magna, Dan Clarke, CEO of Apllied Innovation Alliance, Jeff Disher, president of Disher Design and Development, Ravi Shanker, Ph.D, Corporate Director of Dow Chemical and Alan Taracuk, VP of NorthPoint Software and Services, spent three hours enrapturing the audience with insights into what’s wrong and how we’re going to fix it.

Yes, that is a huge question and one that has many answers.

John McElroy suggested during his introduction, “We need a new business model – one that is focused on creating value, not one obsessed with cost cutting,” he said. “And that means innovation.” Another great tidbit of insight came from McElroy during the Q&A when, the topic came around to marketing messages. “It’s not what you say, or even how you say it. It’s what they hear that counts.”

The title of the session was “Accelerated Innovation.” And there was no shortage of pontification, but by the end of the session I felt that with guys in the industry as smart as these there is hope. The session became an exploration of the science and the philosophy of innovation, defined by one panelist as the “business of solving problems.”

One of the panelists talked about the growth in innovation being like the growth of Wikipedia or that of a crystal. That is, a natural function that just needs to be facilitated. Another suggested that it is a risky process but a necessary one and that “no new economic value has been created without risk.”

Often, though, it is not the initial innovator that benefits. Peter Ducker was quoted as saying that there has never been a case where the pioneer has become the dominant producer. It is usually the second on board that becomes successful.

Of course, collaboration is a crucial element of innovation. That issue has been central in the industry discussions for years up here in pristine Northern Michigan. James Tobin insisted that you cannot assign people collaborate. Rather, you must identify enthusiastic folks and attract them.

“Tough times are the best times to innovate,” added Mr. Tobin. “Make money while there is blood in the streets.”

Even though simple survival is the focus of most companies in the automotive business these days it is clear that a lot of very smart people like these are charging ahead with their heads up, eyes wide open and brains fully engaged. I’m guessing you’ve never heard of these fellows either, but if the auto business is in hands like theirs I have more confidence now than I did before hearing them share their thoughts.

Compared to past years the halls here are quiet and lightly populated. Vendors are scarce, crowds are well down and the din has been muted. However, the future orientation, confidence and mind-boggling technology continue to lead the discussions.

Next up here in Traverse City are the alpha-execs and government overseers who will likely make some news.

Our friends from Ward’s AutoWorld are here, of course, doing thorough coverage of the happenings and two of their reporters had a little competition on the 200-mile trip up from Detroit. Tom Murphy and Christie Schweinsberg drove up in a new Jetta TDI (clean diesel) and a new Toyota Prius hybrid to see who could get the best mileage. As it happens I recently reviewed the TDI and I have a Honda Insight hybrid up here this week, so I’m particularly interested in this story.

As it turns out the Prius won the fuel mileage contest handily but the TDI appeared to be much more fun to drive. Christie had to drive the Insight unnaturally gently to get the win and with massive torque Tom just drove normally. That fits with my experience as well. I’ve always been fond of Volkswagen’s penchant for designing cars that are entertaining as well as reasonably economical. And, so far, my experience with this tepid Insight jives with Christie’s assessment of the Prius.

More on that subject when I review the Insight.

If I survive tonight’s hospitality I’ll report more tomorrow.