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10-16-2006, 08:13 PM
Author Matthew May provides useful insights into the innovative automaker's success (http://www.miami.com/mld/miamiherald/business/15756584.htm?source=rss&channel=miamiherald_business).
Richard Pachter - Miami Herald - Oct. 16, 2006
http://www.cleanmpg.com/photos/data/501/2002_Toyota_Prius.jpg
1997 Toyota Prius - Stunned the auto world.
When Toyota unveiled its Prius hybrid vehicle at the Kyoto Global Warming Conference in December 1997, the other automobile manufacturers in attendance were stunned, according the author of this new book. This was not a concept car or prototype that would be available in the next few years; it was already in production and was launched right after the conference.
A month later, General Motors said that its new hybrid would be available in December 2001 - nearly four years hence. The company claimed that it was necessary to develop the appropriate infrastructure, prepare the market for this radical new vehicle first. Besides, GM Chairman Jack Smith said, ``In Japan, there is a technological subsidy system.''
However, in The Elegant Solution, Matthew May points out there was no such government support involved.
Toyota's prescient anticipation of the need - and desire - for a more fuel-efficient vehicle and its rapid development and introduction is cited by the author as an example of the Japanese car maker's ongoing commitment to innovation and how it propelled the company to its ascendant position in the market - all while GM and Ford scramble for international partners as a means of survival.
May is a consultant to the University of Toyota, a company institution devoted to educational development and reinforcement of corporate culture and values. He is an enthusiastic supporter of the firm and an articulate advocate of its philosophies and practices. As such, this book probably lacks a critical perspective.
Surely there must be things the company does that May is less than zealous about, but if so, they are well concealed. Despite this, there's much to be gained from reading this, especially if you are unfamiliar with Toyota's back story, or if you'd like to expand your Japanese vocabulary.
There's also some discussion on what it is that makes a solution elegant (or not) and the forces that work against the elegance. May writes: ``Elegant solutions are all around us, waiting to be discovered. But they're no easy challenge. Elegant solutions require a working knowledge of the forces at play, and obstacles in the way. Aside from what is invariably mislabeled and sloppily defined as culture - and more on that later - a few big traps can stop elegant innovation cold. They are three in number, easy to fall into, and most appropriately termed temptations:
Swinging for fences. This is the ``home run or bust'' trap, which invariably destroys a strong batting average over time. It carries with it huge risk, usually accompanied by high cost.
Getting too clever. This is the ``bells and whistles'' trap, which can easily get out of control in an effort to outdo competitors. It carries with it the danger of complexity and customer alienation.
Solving problems frivolously. This is the ``brainstorm'' trap, which is misguided creativity far afield from company direction. It's a symptom of poorly defined work, and it's fraught with waste.
Not every company has the luxury of devoting substantial resources to innovation as Toyota does, but those that fail to take such strategies into consideration and adapt as many as feasible do so at their own peril.
Richard Pachter - Miami Herald - Oct. 16, 2006
http://www.cleanmpg.com/photos/data/501/2002_Toyota_Prius.jpg
1997 Toyota Prius - Stunned the auto world.
When Toyota unveiled its Prius hybrid vehicle at the Kyoto Global Warming Conference in December 1997, the other automobile manufacturers in attendance were stunned, according the author of this new book. This was not a concept car or prototype that would be available in the next few years; it was already in production and was launched right after the conference.
A month later, General Motors said that its new hybrid would be available in December 2001 - nearly four years hence. The company claimed that it was necessary to develop the appropriate infrastructure, prepare the market for this radical new vehicle first. Besides, GM Chairman Jack Smith said, ``In Japan, there is a technological subsidy system.''
However, in The Elegant Solution, Matthew May points out there was no such government support involved.
Toyota's prescient anticipation of the need - and desire - for a more fuel-efficient vehicle and its rapid development and introduction is cited by the author as an example of the Japanese car maker's ongoing commitment to innovation and how it propelled the company to its ascendant position in the market - all while GM and Ford scramble for international partners as a means of survival.
May is a consultant to the University of Toyota, a company institution devoted to educational development and reinforcement of corporate culture and values. He is an enthusiastic supporter of the firm and an articulate advocate of its philosophies and practices. As such, this book probably lacks a critical perspective.
Surely there must be things the company does that May is less than zealous about, but if so, they are well concealed. Despite this, there's much to be gained from reading this, especially if you are unfamiliar with Toyota's back story, or if you'd like to expand your Japanese vocabulary.
There's also some discussion on what it is that makes a solution elegant (or not) and the forces that work against the elegance. May writes: ``Elegant solutions are all around us, waiting to be discovered. But they're no easy challenge. Elegant solutions require a working knowledge of the forces at play, and obstacles in the way. Aside from what is invariably mislabeled and sloppily defined as culture - and more on that later - a few big traps can stop elegant innovation cold. They are three in number, easy to fall into, and most appropriately termed temptations:
Swinging for fences. This is the ``home run or bust'' trap, which invariably destroys a strong batting average over time. It carries with it huge risk, usually accompanied by high cost.
Getting too clever. This is the ``bells and whistles'' trap, which can easily get out of control in an effort to outdo competitors. It carries with it the danger of complexity and customer alienation.
Solving problems frivolously. This is the ``brainstorm'' trap, which is misguided creativity far afield from company direction. It's a symptom of poorly defined work, and it's fraught with waste.
Not every company has the luxury of devoting substantial resources to innovation as Toyota does, but those that fail to take such strategies into consideration and adapt as many as feasible do so at their own peril.