“There should be more focus on the product or service itself, less time on board meetings, less time on financials…A company has no value in itself. It only has value to the degree that is an effective allocator of resources to create business services that are of a greater value than the costs of the inputs,” Elon Musk, Tesla CEO said.
This thing they call “profit,” Musk added, “should just mean over time that the value of the output is worth more than the inputs..When I go spend time on the factory floor or really using the cars or thinking about the rockets…that’s where things have gone better,” Musk said at the WSJ summit.
Elon Musk is the generation’s finest innovator and the second richest person in the world as market caps of Tesla, and privately held SpaceX, have grown over the last few months.
His message is simple: the only force which can overcome the frictions in the lives of people or processes of firms is a product or service! If you combine factors of production to get good products/services, you capture revenue from demand (i.e. the customers). And if that combination is done very well, such that what the demand is paying for is more than what you had spent in combining those factors of production, you can pick a “profit” in the process.
LinkedIn brought three core points out of the interviews.
Can innovation be learned? Absolutely, says Tesla and SpaceX founder Elon Musk. In an interview with The Wall Street Journal, he reveals three questions budding innovators should answer in order to make your product a winner:
- Have you tried it? If it doesn’t work for you, then you can’t expect it to shine for others.
- How can you make it better? Examine negative feedback from colleagues, customers and trusted mentors to improve as best you can.
- Are you spending too much time in conference rooms? Theory is great, but investigating the actual product and its production process can yield better insights.
Watch his video.
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