January 12, 2008 4:07 PM PST

Small products, big innovation: The dawn of a nano age?

by Tim Leberecht
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(Credit: Hem.com)

Europe loves the VW Beetle, the Renault Twingo, and the Smart. The U.S. has the Mini and will finally get the Smart, too. And recently India proudly presented the spiritual successor to all of these--the $2,500 Tata Nano, a "people's car" that is widely gushed about, not only for its surprisingly slick design but also for its innovations.

In recent years, ecoconcerns, design savvy, and an (urban) willingness to quest for practicality have fostered the trend toward specialized cars that are as small as the niches they serve. While the idea of a small car is not new, in the case of the Nano, and that's an interesting addendum, the miniaturization of the product goes along with a miniaturization of price, development process, and distribution model. The Nano is the world's new "cheapest car," it was developed and designed by an off-site micro-organization, and it operates with a decentralized distribution model that allows the suppliers who assemble the car to also sell and service it directly to the consumers. What you can learn from Tata: shrink the product, shrink the feature list (no frills!), shrink the development team (no red tape!), shrink the price (ultra low cost!), and shrink (localize!) assembly and distribution. Think small, score big.

In fact, nano is the new big. Language is always a good indicator of cultural shifts. There is talk of the "Nano-effect," of "nano-sphere," and the magazine Nanowerk observes that, "Over the course of the last 12 months, the LexisNexis database of newspaper articles records 239 stories referring to nanotechnology in the British press. In the same period there have been 239 stories referring to 'iPod' and 'nano'."

India's Economic Times even proclaims the "coming Nano Age:"

"Small is getting a big play. Part of the push is coming from companies eager to stuff cell phones with value add-ons and another is about demonstrating technology that is smart, simple, small and beautiful. (...)Nanotech products or small, nifty gadgets may not be cheap, as the emphasis is not on price cutting but efficiency at a small scale. Though it remains to be seen whether, the Tata Nano, a nanotech medical device or a pocket printer, will set the cash counters ringing."

Tim Leberecht is Frog Design's of vice president of marketing and communications. He has worked in the media, entertainment, and high-tech industries. Most recently, he was the head of corporate communications at Mindjet, a provider of mind-mapping software for the enterprise. Prior to Mindjet, he served as a press chief for the Athens 2004 International Olympic Torch Relay and in marketing communications for Deutsche Telekom in Germany. Tim runs the iPlot blog, and has published and spoken about branding, organizational communication, social media, and attention economics. Tim is a member of the CNET Blog Network and is not an employee of CNET.
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Add a Comment (Log in or register)
by Craig Landrum January 14, 2008 1:30 PM PST
It sure would be great if the picture you used had anything at all to do with the article. Is the picture a VW Beetle? No. A Renault Twingo? No. Even the featured Tata Nano? Absolutely not. I haven't a clue what car is pictured, but I'd sure love to know since it looks far more innovative than any of the three you actually mentioned.
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by Scott Gardener January 20, 2008 2:52 PM PST
It's a photoshopped Porsche Boxter, or, when considering geometric extrapolation, about 65% of one. I don't think you'll find one like this on the after market, as taking a Porsche and cutting it down this way is likely to lead to death threats from enthusiasts.
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About Matter/Anti-Matter

Tim Leberecht and Adam Richardson both work for Frog Design, a consulting firm specialized in designing innovative products and services for Fortune 500 clients. On the Matter / Anti-Matter blog, they engage in a debate around questions they face day-to-day in their work, using convergence/divergence as a lens through which to look at the pressing issues in business, culture, and technology. What makes a successful convergent product or a successful divergent innovation? Is convergence a myth that users don't really care about, or is the current state of convergence just not satisfying enough for them to embrace? How much divergence of innovation is good, and when does it just become confusing? How do you stay on top of people's ever changing needs and wants?

They are members of the CNET Blog Network and are not employees of CNET.

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