The infrastructure disadvantage

I was really excited to read about the new Eday hatch electric car which will be launched in 2012. It’s very cool for a few reasons including: It’s price is under $10,000. It’s an Australian startup. They are IT focused, not automotive focused. All the major functions are controlled electronically. It’s also the first eco / electric car option which isn’t priced at a premium, so it’s a total game changer.

What I find most interesting in the article is the advantage of zero infrastructure. When industries go through significant change as the automotive industry is, existing infrastructure can be a major disadvantage. Not only can it define how things should be made, but it also has the added burden of it needing to be supported financially. It demands asset utilisation and so limits the potential for a real change in product output.

The only way to innovate in an industry is to re-imagine the best way to build something from scratch. To ignore what we know about the incumbent mode of operation and create a new one. It is examples like the Eday that should inspire entrepreneurs to believe that that no company or industry is all powerful.


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