
Code name ginger
Dean kamen's segway revolution: inventing a new era
Description
Dean Kamen invented a revolutionary self-balancing transportation device called the Segway. After years of secret development, hype around the mystery "IT" project grew until the Segway was unveiled in 2001. While initial sales were slow, Kamen believes the Segway will transform transportation over the next decade by providing an efficient alternative to cars for short trips.
Ultimately, the Segway represents Kamen's lifelong goal of using technology to better society, whether through medical devices, clean energy, or inspiring young engineers. His inventiveness and persistence allow him to bring ambitious ideas to fruition that have the potential to change the world.
Table of contents
01Humble beginnings
Dean Kamen, born in Rockville Center, Long Island in the early 1950s, found school unstimulating and by high school, began exploring electronics, semiconductors, and transistors. Demonstrating his ingenuity, Kamen created a light box that responded to music, managing to sell four to the Hayden Planetarium in New York. This early success led him to sell light boxes to local rock bands and businesses, making tens of thousands annually while working from his basement. Inspired by his brother, a medical student at Harvard, Kamen developed an affordable, portable device to monitor hospital IVs, leading to his first major business breakthrough with the National Institute of Health placing a significant order. This success prompted Kamen to establish AutoSyringe Inc., which quickly grew, leading him to sell the company to Baxter Healthcare for a substantial sum in his early thirties.
02A spicy root
DEKA was working in parallel on two innovative mobility products - the iBot wheelchair and a separate device codenamed Ginger. The iBot was a sophisticated wheelchair capable of climbing stairs and raising the user to eye level with standing people. Ginger was envisioned as a lightweight, portable mobility device for travel over various terrains, with models optimized for city use or off-road. There were creative tensions and logistical challenges having two major engineering projects underway simultaneously, with specialists working on components like drive systems and batteries needing to coordinate across teams. Dean Kamen actively encouraged exploring new ideas, even if it delayed schedules.
03Money and manpower struggles
Dean Kamen's venture into personal transportation with Ginger faced numerous challenges before it could disrupt global industries. Engineering trade-offs were necessary, and supply contracts needed negotiation without a finished product, proven market, or funds. Kamen expected suppliers to cover development and tooling costs, betting on future profits from Ginger's success. This approach diverged from the norm of established companies offering volume guarantees to suppliers.
The prototype, C1, was succeeded by D1, aimed to be production-ready by May 2000. Concurrently, Kamen sought investors to finance development. Despite initial setbacks, Vernon Loucks connected Kamen with nine billionaires, spurring Credit Suisse and angel investors to discuss a $50 million investment. Silicon Valley venture capitalist John Doerr from Kleiner Perkins Caulfield & Byers, who had a history of backing successful tech companies, also showed interest.
04Additional innovations
Dean Kamen's company DEKA was simultaneously developing two groundbreaking technologies: the personal mobility device known as Ginger, and a Stirling engine for efficient power generation. The Ginger project had completed its first D1 prototype and was in the process of constructing an additional 40-50 units, integrating improvements from the initial model. However, significant development was still needed on various components, including the charger, kickstand, dashboard, embedded software, electronics, clamping mechanisms, and sealing. Comprehensive testing for cost, weight, electromagnetic interference, among other factors, was pending. Additionally, there were uncertainties regarding regulatory requirements for safety features, which posed potential risks to the schedule and costs. Consequently, the engineers postponed the Ginger launch from May 2001 to January 2002 to ensure these issues were adequately addressed.
Parallel to Ginger, DEKA was working on a Stirling engine, a 19th-century design known for its near 100% efficiency through a closed-cycle gas process, a stark contrast to the 25% efficiency of conventional internal combustion engines. DEKA's goal was to create a practical, portable Stirling engine priced at $5,000, comparable in size to carry-on luggage, that could run on any burnable fuel and also produce clean water. This innovation had the potential to provide affordable and clean power to households or villages, particularly in developing areas. Investors recognized the massive market potential and were eager to lead the investment round for this technology. Despite investor enthusiasm, Kamen was cautious about giving up too much control to venture capitalists. DEKA had stable revenue streams, allowing for some independence in funding decisions. Kamen aimed to structure deals on his terms, mindful of the influence investors could wield through financial leverage.
05An inventor's influence
Dean Kamen, the CEO of the Ginger project, was known for his nonlinear thinking and inventiveness, which often led to unexpected detours in the project's development. His tendency to introduce new ideas frequently caused delays, as engineers had to pause their work to evaluate his suggestions. Despite these disruptions, Kamen expected the original deadlines to be met, a demand that sometimes clashed with the business realities of the project. This pattern of behavior was so common that the engineers coined the term "getting deaned" to describe it. Doug Field, Ginger's director of engineering, believed that Kamen's success was due to his unique approach to problem-solving. Kamen himself joked that if any of his daily brainstorms were implemented, it could potentially harm the company. Despite the challenges his interference sometimes caused, Kamen's drive and salesmanship were instrumental to the project's existence.
06Bumps in the road
In October 2000, Dean Kamen allowed limited consumer testing of Ginger, a project scheduled for release in January 2002. Thirty-six individuals, recommended by team members, were invited to Boston to evaluate the machines. The test was successful, with participants quickly learning and enjoying the experience. However, a few overconfident engineers fell during setup, one of whom, Brian Toohey, broke his wrist. Toohey, ironically responsible for demonstrating Ginger's sidewalk safety to regulators, was the only one injured. Despite concerns about sidewalk congestion due to scooters and skateboards, Toohey was optimistic that early involvement of officials would help, as Ginger didn't fit existing definitions and could potentially reduce congestion.
By the November 13, 2000 board meeting, the project faced several challenges. Projected spending had escalated from $27 million to $52 million, with a quarterly burn rate of $12-13 million. The final production version, D3, was behind schedule, and the cost of goods was $350 over target, threatening profit margins. Recruitment was difficult due to Dean Kamen's insistence on low wages and no bonuses or equity, and the lack of consumer feedback and engagement with regulators was impeding progress. Additionally, the manufacturing site had not been selected, with Kamen's focus on secrecy and cost-saving causing delays and potential expenses of $10 million for every three months of delay.
07Extreme public interest
In December 2000, venture capitalist John Doerr called a meeting with Dean Kamen and his startup's leadership team, including CEO Tim Adams and marketing director Mike Ferry. Tech giants Steve Jobs and Jeff Bezos were also present. The team was intensely questioned about their unnamed technology and promotional plans. Despite investor concerns about the qualifications of Adams and Ferry, Kamen resisted leadership changes, comparing the situation to the early days of personal computers when their full potential was unknown. Kamen's startup was developing an electric vehicle, referred to as "Ginger," which he believed could significantly reduce urban pollution and congestion. A production plant was being set up in Bedford, New Hampshire, with the capacity to assemble 2,000 Gingers daily. However, the project's secrecy was breached when a media outlet leaked patent drawings and investor quotes predicting Ginger would be highly profitable.













