Tech startup founders normally draw their classes from the historical past of the data expertise trade. Nevertheless, corporations have been innovating technologically for for much longer, that means there is perhaps some forgotten classes in enterprise historical past price revisiting.

On this article, we’ll talk about examples of the revolutionary practices of the Ford Motor Firm, based in 1903 by Henry Ford, that helped it revolutionize the auto trade.

1. Standardization

Ford Motor Firm was additionally a pioneer within the standardization of car elements. By creating standardized elements that may very well be utilized in a number of fashions, Ford was in a position to cut back prices and improve effectivity in its manufacturing course of.

First, when the elements are standardized the demand for them is greater, which makes their manufacturing cheaper as a result of economies of scale.

Second, this additionally made it simpler for patrons to restore and keep their vehicles, which will increase the demand for standardized elements additional.

Typically, it’s an incredible follow to deal with your programs, code, designs, and another elements as lego blocks which you can standardize and repurpose. Entry to those blocks makes it less expensive to innovate and scale up manufacturing. That is essential for startups as a result of it helps you go from the concept stage to the expansion stage as shortly as potential.

2. Vertical Integration

Ford Motor Firm was one of many first corporations to vertically combine its manufacturing course of. This meant that the corporate managed the complete course of of manufacturing vehicles – from mining the uncooked supplies to manufacturing their standardized elements and assembling the completed product.

By doing so, Ford was in a position to cut back prices and train larger management in its manufacturing course of, which additional helps innovation.

This isn’t a forgotten technique – Apple is a contemporary instance of an organization nice at vertical integration.

That stated, vertical integration may be very useful resource intensive and needs to be tried by startups solely after they’ve a longtime market and entry to considerable capital.

Making an attempt to scale prematurely is, usually, an enormous mistake.

3. Steady Enchancment

Ford Motor Firm was dedicated to steady enchancment in its manufacturing course of. The corporate repeatedly analyzed its manufacturing strategies and made modifications to extend effectivity and cut back waste. This helped to maintain the corporate forward of its opponents and keep its place as a pacesetter within the car trade.

It’s price remembering that Ford’s success may very well be boiled right down to them with the ability to promote vehicles less expensive than anyone else.

It is a essential mindset for startups, particularly within the effectivity section. In spite of everything, after discovering out that there’s a marketplace for the services or products you’re providing, your subsequent order of enterprise is to ensure you can present this worth and develop sustainably. To do that, you have to continuously optimize your processes and make enhancements to your value construction.

4. Worker Advantages

Ford Motor Firm was additionally one of many first corporations to supply its workers advantages akin to well being care, pensions, and profit-sharing. This helped to create a loyal and motivated workforce and helped to scale back turnover and absenteeism.

That is essential for tech startups, during which you have to entice the highest expertise in your trade with out with the ability to pay them prime salaries instantly. Worker inventory choices or different types of pay correlated with the efficiency of the corporate are a number of the finest instruments you need to use to draw, encourage, and retain the folks that might make your organization profitable.