Blogroll / Design innovations / Design strategy / Design thinking

How to solve the transportation problem in the third world?

What are the real problems in the world today? Transport is definitely one of them. Both in the developed and especially in the so-called third world. How do companies approach to such problems? With incremental development of new (higly profitable) products?

General Motors is a company that has since 2000 invested hundreds of millions of dollars in lobbying to prevent adoption of environmental legislation. To keep their high-spending but very profitable SUVs (Sports Utility Vehicle) on the market. What has Tata done in the same time?

Tata rather figured out what is realy the problem in the third world? What is that people really need? And that is why Tata has developed the first true low-cost car in the world. Tata radically reduced the value proposition of its car (but it is still a car). The constraint before the development was a radically low price to the $ 2,000 limit. The car is now, apparently, among other things, selling also on the other side of the world from where it was developed, in Slovenia.

Picture of Tata's radically low value proposition automobil

Source
Umair Haque. 2011. The New Capitalist Manifesto: Building a Disruptively Better Business.

Marko Savić
I’m raising awareness of the connection of business model innovation with design thinking. Have just published a book on business models design. You may wish to meet me in person at my next workshop or interact with me on Twitter.

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Workshop: Business model design: Wien

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