In A World Of Legacy Companies Waiting to be Disrupted — Here’s An Independent Thinker’s Approach To Using Tesla’s “Factory is the Product” to Disrupt Legacy Businesses
Tesla will spin off a shiny new industrial cloud compute and process business through “Factory is the Product”
Factory is the Product sees the entire industrial production process through the lens of 100% digitization and compute power. This approach means car improvements are happening daily through a system of faster decision-making and feedback loops.
The ability to make more cars at the lowest cost becomes a natural outcome.
Within the shop floor, Tesla always knows the best process to run for car assembly, a spare part, and even test cases. This is lucrative for any vehicle manufacturer who also needs “process and compute.” So, Tesla will start selling the industrial processes through a cloud.
Super applicable to businesses that produce — “The Mine is the Product”
Imagine the same approach being taken to something like mining, shipbuilding, and nuclear power generation.
The entire mine has a software layer on top of the physical process. Each truck movement between nodes, earth movement, and shaft setup is tracking and computing the best scenario for operating. In the same way, Tesla can test whether Shape A or Shape B is better for the Car, and the Mine can test whether digging in zone 1 or zone 2 is better.
So, mining companies eventually start having processing and compute divisions leading to the “Mine is the Product”
The Start-Up Boom Hits the Timeless Businesses That Refused to Innovate
Every company that takes the approach of seeing its process and computation as a product can build this.
With this approach, we will start seeing things like “Mining Startups”, “Ship-Building Startups”, PowerPlant Startups for the first time in decades. All are run with the idea that the process can be monetized with the power of the cloud and computation.
The story of disruption is just starting. Beware Legacy Companies!
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