Today, I would like to start with two famous sentences attributed to Henry Ford to discuss the topic of customer centricity and its importance in medical innovation. While the exact authenticity of these quotes may be debated, their implications provide valuable insights into innovation and customer orientation.
The Visionary Myth
“If I had asked people what they wanted, they would have said faster horses.”
Henry Ford
This sentence is often cited by supporters of innovations (medical or not) created by visionaries who ignore customers and instead develop highly innovative products based solely on their instinct and vision of the future.
However, I believe this idea is flawed. Innovation cannot rely solely on a visionary leader’s intuitions. The true source of innovation lies with the customer, and customer centricity is the key to developing new medical products.
Ford’s Product-Centric Approach
Even if Ford did not say the famous sentence regarding the inability of customers to clearly communicate their needs, there is another quote that substantiates his disregard for customer preferences:
“Any customer can have a car painted any color that he wants so long as it is black.”
Henry Ford
This illustrates Ford’s product and process centric mindset. He focused on adapting the assembly line process to manufacture automobiles efficiently, allowing him to produce the Model T at a lower cost than his competition.
By freezing the design of the Model T, Ford managed costs effectively, leading to success as long as customer needs remained static and the Model T remained competitive.
Sloan’s Customer Driven Strategy
In contrast, Alfred P. Sloan, who headed General Motors in the 1920s, developed a strategy based on the lesser-known quote:
“A Car for Every Purse and Purpose.”
Alfred P. Sloan
Sloan’s approach was far more aligned with the customer than Ford’s.
By introducing the concept of brand architecture and developing a brand portfolio with different price levels, General Motors gained market share and eventually became the number one motor company.
Sloan’s strategy included frequent styling changes, prompting consumers to replace their cars periodically, and creating multiple brands like Chevrolet, Pontiac, Oldsmobile, Buick, and Cadillac.
Conclusions
The lessons from Henry Ford’s faster horses and black cars sentences, as well as Sloan’s “car for every purse and purpose” quote, emphasize the importance of customer centricity also in medical innovation.
Ignoring customers can be perilous when developing new products.
Marketers, R&D scientist and innovators must understand customer needs and pain points, employing techniques to collect the Voice of the Customer (VOC).
While Ford’s initial success originated from his vision aligning with customer needs, his refusal to adapt led to challenges. In contrast, Sloan’s customer-centric approach demonstrates that product strategies must revolve around customer needs, with VOC collection being crucial for success.
What do you think about Ford approach? Subscribe or follow me on LinkedIn to avoid missing future posts, and if you find this blog interesting, forward it to a friend.