Necessity is the Mother of Invention

Necessity is the Mother of Invention

In 1908 Henry Ford created a problem. He stated that he would make it possible for most households in the US to purchase a car. This was at a time when only 2% of the US population earned enough income to buy an automobile.

In the late 1800s, the cost of an automobile was $1,500. The average annual income in the US was $750. This gave Henry Ford the insurmountable problem of capturing 98% of the market. In 1908, he launched the Model T for $850. By 1924, when most households owned an automobile, the cost of the Model T was $290[1].

By building the assembly line, the problem he created was solved. He was able to significantly reduce the cost of making a vehicle. As a result, the Ford Motor Company successfully increased market share from 9% in 1908 to 61% in 1921[2].

In 1979, Sony brilliantly created the personal audio market with the Walkman. The problem they created was simple: develop a device that allows individuals to privately listen to music anywhere, anytime.

These are excellent examples of enterprises stepping out of the box and creating problems. Was it enough? Creating problems requires that leaders have the competency called mindset or intrapersonal skills – a clear understanding of relationship with self, opportunity, the future, change and others – before they can effectively managing chaos. Strong intrapersonal skills can empower an individual in the face of risk or uncertainty. It also contributes to one’s ability to continue to learn beyond the proverbial comfort zone.
[1] Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne, page 194.
[2] Blue Ocean Strategy by W. Chan Kim and Renee Mauborgne, page 194.