Driving Innovation Like Porsche: The Stair-Step Method of Product & Tech Innovation

The picture above is from a YouTube video in which I learned about Porsche’s strategy for managing innovation. They use a decimal point system for model releases. Instead of launching entirely new cars, Porsche introduces a “.1” model with an updated design but the previous generation’s engine. A few years later, they release a “.2” model with the same body and interior but a new engine.

This strategy reduces risks by always using one proven major component. It keeps customers happy with familiar yet advanced models and avoids issues typical of entirely new (re-) launches.

I assume that when they think of the .2 for the current generation, they probably already have the .1 draft for the next generation.

So I wonder - how does this apply to product and tech strategy?

Boring Tech for Innovative Customer Value ¶

Suppose I launch a completely new product or make innovative changes to something that provides customer value.

In that case, I will not use entirely new experimental technologies that no team member has worked with. Instead, I will use boring tech that has long been proven and with which every developer is familiar.

Innovating Tech While Retaining Customer Experience ¶

Often, developers refactor large parts while changing the functionality simultaneously, resulting in chaos.

(This is the most crucial rule for refactoring, and everyone almost always ignores it. It is so tempting. I get it. But it needs strong leadership to enforce it.)

In such a case, the team needs test coverage to ensure the experience remains the same while innovating on the tech side (or using this opportunity to build test coverage).

Staircase Approach ¶

This creates a nice staircase—product innovation with proven technology. Improve technology without changing something for the customer.

Of course, it is essential to have at least a rough direction for the following product innovation to innovate the tech accordingly in the right direction.

(Disclaimer: I don’t drive one (yet), but I am certainly interested. I am a big car racing fan and became a fan of Porsche while staying on top of electric vehicle developments. I love how they constantly push the limits and make them available for the road.)