Introduction

This discussion paper explores the application of agile methods on the shop floor, specifically in the context of Tesla’s production system.

Research Questions

The paper investigates two main questions: to what extent can Tesla be regarded as a digital firm, and do we see elements of a distinct “Tesla production system”?

Key Findings

The paper argues that Tesla can be understood as a digital firm with a digital product embedded in a digital ecosystem, and that agile methods borrowed from software development have been introduced on the shop floor.

The paper also explores the implications of Tesla’s software-first approach and its strategic exploitation of user activity data.

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