Dyson just announced it will build a radically different electric car by 2020. What is particularly interesting is that Dyson is not who you would expect to get into electric cars. They are spending far more (one billion £) to develop the car than they are on the rest of their traditional business lines (vacuums and air filters). Obviously, they see vast potential. Similarly, Mercedes is aggressively targeting Tesla with a $1 billion electric push. Not only that, they are doing it in the U.S. – in Alabama to be specific. Electric car investments are stimulating a billion here and a billion there…
What Should We Consider and/or What Impacts Could Arise?
Whether your business has anything to do with electric cars or not, you should pay attention. It is obvious that executives see potential benefits and will back these sentiments with money. Noticing where investments are flowing can be critical as it will impact your business in one way or another. For example, if you are in Alabama, you might have a harder time finding skilled talent when Mercedes comes to town. If you need the same materials that are required for electric car batteries, you might slide down the supply totem pole. What will you do? Can you consider the R&D of your own business to get ahead of the curve? Or, at a minimum, perhaps you’ll have to incorporate a price increase into your future plans. That actually came up at a client earlier this week so I’ve seen it in action.
Stay abreast of what’s going on around your industry and your business. Think about the potential impacts. For the noteworthy and high-risk items, dig deeper. Discuss with your supply chain partners and trusted advisers. The bottom line: Don’t be surprised by critical potential impacts to your business.