Why incumbents can't catch Tesla Date: 6/10/

An X-post at NPI about Agile Hardware Development

https://discussion.fool.com/why-incumbents-can39t-catch-tesla-35…

The video is an hour 45 minutes, not apt for people short on time.

The Captain

6 Likes

Thank you Captain!

Applying Agile techniques orginated for software development to hardware and then all manner of other forms of human team endeavor is a huge and valuable shift with macro implications.

I have been doing Agile for a long time under the tutelage of my cousin Leslie, one of Agile’s originators, prime instructors, and successful chief implementors (she was CIO at Expedia during their years of “Borg” takeovers of the online travel industry, integrating the reservation systems of travel companies they acquired within 48 hours of takeover).

https://www.amazon.com/Leslie-Ekas/e/B00NGA3XRI%3Fref=dbs_a_…

Agile habits of management can transform not only software but also hardware and also other forms of human endeavor. Husband and I have had wonderful results from bringing Agile to NGO’s, especially to this one in Mexico:

https://jovenesadelante.org/

where use of Agile thinking has transformed the organization, making it far more efficient, fast changing and growing, and, well, AGILE!

david fb

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https://hexaware.com/blogs/sap-implementation-using-agile-me…

C’mon Captain,

They all have SAP and most of them have Agile integrated. It is a common integration these days.

This is the old sugar v fake sugar debate on the internet. The “information” is offered by both sides against the other.

None of us know at all that Ford and GM have not used Agile for years. They are not stupid.

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None of us know at all that Ford and GM have not used Agile for years. They are not stupid.

And yet, it’s been about 10 years since Tesla shipped the first Model S (after the Roadster had been out a while). And still the legacy automakers haven’t shipped a compelling competitor in any significant volumes and haven’t gotten their dealer networks behind them.

Mike

5 Likes

None of us know at all that Ford and GM have not used Agile for years.

Ignorance proves nothing beyond ignorance.

The Captain

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Ford and GM are making money off pickup trucks. Tesla is not and has or had for a long time much smaller profits.

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Ignorance proves nothing beyond ignorance.

The Captain


The problem is you are blocking out the light.

You do not have the full quote. I stated they all have SAP. Agile is commonly used with SAP.

You do not at all know that Agile is not used by Ford or GM.

These are the sugar v fake sugar wars online. All of this valuable "information" is often not information at all.

If you know so much prove Ford and GM are not using Agile. Don't just take up a cheerleaders video making the case for Tesla at face value. There is a lot of money on the line, there is plenty of nonsense. Agile is commonly used by industry.
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https://deloitte.wsj.com/articles/ford-disrupts-product-deve…

WSJ

June 14, 2021

What impact has this Agile way of working had on the product development team and Ford overall?

For product development, the efficiencies we gained with the Maverick have had a significant financial impact—and when you scale that across multiple vehicle lines, it’s that much larger. Being able to get a product to market faster also enables us to take better advantage of marketplace dynamics.

More broadly, Ford has been practicing and scaling Agile processes across the enterprise. The best example of this impact is Project Apollo, the commitment of our executive chairman, Bill Ford, to the U.S. government to produce personal protective equipment, including respirators, face shields, medical gowns, and ventilators, at the beginning of the COVID-19 pandemic. For a large automotive company to pivot and begin producing those items within a few weeks is a tremendous accomplishment. It takes an environment where people know ideas will be heard, the best ones will win out, and the team will then lean into those ideas and achieve things that no one would have believed to be possible. That’s the environment we’re trying to create in every program at Ford going forward.


[https://medium.com/@mukundmrao/automotive-companies-paving-t...](https://medium.com/@mukundmrao/automotive-companies-paving-the-journey-to-an-intelligent-enterprise-with-s-4hana-9bda36b7f5f3)

Jan 18, 2019

General Motors Transforming and Disrupting with SAP

General Motors believes that new trends in the market provide them the opportunity to make cars cleaner, safer, smarter and more efficient; while delivering more value than ever before. They’ve set out to transform a fragmented landscape in preparation of the next era of automotive. They are looking to standardize and optimize global end to end processes, align master data, generate real time reporting, and get global insights.

GM is driving business process transformation with world class SAP technology including SAP S/4HANA Central Finance, Master Data Governance, and eSourcing. They are using SAP globally; completely leveraging S/4 Finance for revamped and future-proof finance operations. It was also interesting to hear about how SAP is the fundamental platform for business processes in Request to Pay, Record to Report, Order to Cash, Hire to Exit, and Invest to Divest.

GM uses Scrum

[https://blogs.sap.com/2021/01/20/sap-agile-and-scrum-whats-t...](https://blogs.sap.com/2021/01/20/sap-agile-and-scrum-whats-the-difference/)

~~~~~~~~~~~~~~~~~

Before calling someone ignorant at least know something about the topic.
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Leap,

I’m not The Captain, but I can respond to your questions as stated in your post:

</>You do not at all know that Agile is not used by Ford or GM.


If you know so much prove Ford and GM are not using Agile.

I worked for a Boston-based consulting firm that specialized in the implementation, and enhancements of SAP from 2016 - 2017. Both GM and Ford were clients of mine during that time and I met with IT folks at both companies a number of times through the course of my work. Neither of them had embraced the Agile methodology wrt SAP implementation / enhancement / maintenance projects.

They were just too steeped in overhead to allow Agile to really happen. Also, I would say that both IT organizations were very reluctant to change.

'38Packard

6 Likes

38Packard

Thanks for the informative post.

Agile is something all too easy to talk about while intensely confrontive and difficult for established management to actually implement or even allow to be implemented. Crucial to implementation is the destruction of clear lines of authority.

It IS possible that spotily, here and there, Agile has been implemented at Ford and GM (and in governments and…), but Show Me is the obvious answer.

I found sitting Zazen for a week roll off a log easy compared to implementing Agile within a publishing software group of engineers.

david fb

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At IBM I was installing million dollar machines and no one was looking over my shoulder. IBM knew how to get the best out of everybody. GM wanted drones. Crucial to implementation is the destruction of clear lines of authority.

Very much to the point! After I left IBM I was told that the GM assembly plant in Venezuela was looking for a Data Processing Manager. That position was a good stepping stone for my career but knowing GM from the time I had installed their IBM mainframe I was wary about their corporate culture. I went to the interview. They threw every buzzword at me. Knowing the problems data centers had, I asked two key questions. “What level of authority would I have and how much control over the IT budget would I have.” They looked at me as if I were extraterrestrial from the planet Xenon. “We have worked here for a long time and a newbie wants authority and control! Are you out of your mind?” Or words to that effect. End of interview. That kind of culture is very hard to change.

At IBM I was installing million dollar machines and no one was looking over my shoulder. IBM knew how to get the best out of everybody. GM wanted drones. But after Thomas Watson Jr., son of the founder, retired, IBM started a long path of decay as ‘professional’ managers took over. I see something similar happening at Apple. It happened at Home Depot, it happened at Hewlett-Packard.

In the car business Herbert Diess is trying to shake up VW and you can see the pushback he is getting from the controlling shareholders and labor. People want to protect their turf. At our management consulting business my partner used to say, “The only constant around here is change” but after a decade he started welcoming yes-men. I sold out soon after and went into insurance sales. Change!!!

The Captain

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Something strange happened to my post, part of the text got copied to the top of the post above the quote from david fb…

Crucial to implementation is the destruction of clear lines of authority.

The Captain

1 Like

Ford and GM are making money off pickup trucks. Tesla is not and has or had for a long time much smaller profits.

Last I looked, Tesla has higher gross profit margins than Ford or GM have.

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38 Packard,

Ford has been in the moves to implement Agile since mid 2021. GM has Scrum, I do not know if it is used across the board.

Both of them have been advancing in this area as I documented above.

1 Like