growth by communication - lessons in strategy
TRANSCRIPT
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TECHNICAL COMMUNICATION AS AN AGENT OF
GROWTH
A Presentation By: Udit Chaudhuri
First presented: Learning Session of the Society of Technical Communicators
Mumbai, 24th August, 2002.
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THE IMPACT OF TECHNICAL
DOCUMENTATION
Bird Hit Simulator – a Story
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Bird Hit Simulator – a Story Bird hits are a major threat to all aircraft.The FAA or Federal Aviation Authority in the US devised a simple, yet ingenious device to test aircraft for fitness against these. A calibrated catapult was used, to propel a packed chicken on to the windscreen of a stationary aircraft. Notably, the device came with an instruction manual that very clearly instructed how to simulate bird hits at various aircraft speeds, as high as 500-600 miles an hour. This catapult was very effective in preventing accidents and won good praise.
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Bird Hit Simulator – a Story
A railway authority testing a new locomotive model learned of this superb device. They borrowed it, so as to guarantee this new locomotive’s safety, even though all trains are much more sturdy and much slower. This team hence decided to test the windscreen for impact at 300 miles, well below the maximum.
Much to their horror, the chicken smashed the windscreen, punched through the driver’s back-rest and jammed itself into a panel further behind, after breaking some instruments. The authorities checked, re-checked and found no answer.
Mystified, they sent a report to the concerned FAA official, and quickly received a one-line reply …
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Bird Hit Simulator – a Story
“Use a thawed chicken.”
Moral of the story:
Communication is vital to a technology’s success
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CLASSIC SUCCESSES
• SKF in bearings
• Carl Mahr, Fowler, Mitutoyo in metrology
• D-M-E, Fasco in mould bases & components
• Omron, Autonics, Eagle, Veedor Root in controls
• AEG-NGEF in LT motors
Classic catalogues - built global brands
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CLASSIC SUCCESSES• Full range, therefore reach to all user types
• Wide distribution of literature
• Logical product classification
• Standardisation
• Selection by user application
• Clear-cut differentiation
Effective marketing via communication
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PC REVOLUTION • APPLE – “takes the fear out of computing”
• MS WINDOWS – emphasis on GUIs, visuals, simplified usage
• LINUX - performance, reliability, economy, open source …
User experience builds reputation
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PC REVOLUTION
The product and user “speak” to each other.
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CORE STRATEGY• Target oriented specialisation - of product,
service, technology … line of business
• Information strategy – audience, content
• Integrate with environment*
*e.g. Govt, promoters, bankers buyers, users …
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TC’S WEAPONKey words:
• Simple Application • Mass appeal
SAM – letter, mailer, brochure, ad, …
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MARKETING STRATEGY
Components:
1. Entry strategy
2. Consolidation strategy
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POSITIONING ELEMENTS
• “Who am I?”
• “What do I do?”
• “For whom?”
• “Why me?”
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POSITIONING EFFECTS
• IBM Vs GE – computersIBM reached more customers, even with GE’s better technology
• IBM Vs XEROX - computers Xerox lead office equipment market, but could not enter computer market
• XEROX Vs KODAK - copiersKodak retained lead in studio equipment, but not in copiers
• Altair Vs Apple – small computersAltair was first in market, but Apple was “visible” as first
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UNDERSTANDING GROWTH
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GROWTH MODELS1. Capacity expansion
– “De-bottle-necking”
Feeder
Technology
Downstream
Portfolio size
Core
Servicing
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GROWTH MODELS1. Capacity expansion
– Enhancement, line extension, syndication / co-operation
Line - 3 Esteem AX
Line - 2 Esteem VX
Line – 1
Esteem AX
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GROWTH MODELS2. Forward integration
Phase - 1
Raw Materials
Phase - 2
Intermediate
Products
Phase - 3
Finished
Products
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GROWTH MODELS3. Reverse integration
Phase - 1
Finished
Products
Phase - 2
Critical Intermediates
Phase - 3
Core
Raw
Material
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GROWTH OF MARKETS
Technology Adaption Life Cycle
Time
Market size
Early Adopters/Innovators
Visionaries
Pragmatists Conservatives
End of Life
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GROWTH OF MARKETS
TALC –stages
“What am I selling?”
1. Technology - to the enthusiast & innovator
2. Killer app - to the visionary
3. Whole product – to the pragmatist
4. Company - to the conservative
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CHALLENGE TO TCTo mould each communication
about the technology, breakthrough, product and the company in step with its
maturity in the market. Thus, …
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CHALLENGE TO TC
… to navigate the technology company along the TALC
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GROWTH & POWER• All systems of growth strike an equilibrium with power
• EKS is the core science of growth – Wolfgang Mewes
• Major European groups e.g. ABB, DAF, IBM (Germany) use EKS
• A number of IT solutions for growth management, including ERP
and EWI systems, use EKS
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Potassium
GROWTH & POWEREfficient growth needs tackling of the“Minimum deficit factor”
The “most burning problem” shifts cyclically… Mewes drew
this N-P-K analogy from Leibig’s study of plants
Phosphorus
Nitrogen
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GROWTH & POWER
Growth of a system is its process of integrating with the environment
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GROWTH & POWER• Power to overcome bottlenecks,
deficiencies
• Power to sustain growth
• Power to resist overgrowth
Power = Harmony with environment
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BASIC LAWS1. Advance not broadly, but pointedly 2. Don’t be a nomad – settle down 3. Don’t go towards the large crowd – move into
the gap between others 4. Advance not towards breadth and perfection
but towards more central problems and interrelationships
EKS is an integration strategy, not conflict strategy
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“TENSION”• “Tension” – relationship between minimum factor
and the company – analogous to electrical
Self-organisation
+
Energy to resolve
-
Problem area
Tension
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PROBLEM• Process - what does it do?
• Structure – what is made of?
A
BC
C
A B
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HIERARCHY• Energy strategy• Power problems• Psychological problems• Informational problems• Financial problems• Economic problems • Technical problems• Material problems
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GENERATION OF POWER
Performance
Dependence
Power Power
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PINCER GRIP CONCEPT
Performance
Dependence
Power
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TENSION BALANCE SHEET
• Tension Balance Sheet – 4 parts – Conventional Balance Sheet, P&L A/c– Most essential changes in figures - trends etc – Shortages, dependencies, attractiveness,
tangible and intangible gains … tensions– Analysis of the minimum factor or greatest
bottleneck
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TENSION BALANCE SHEET
Compared to conventional balance sheet:• Monitors development of all participating
factors, not only capital • Directs attention and research to the
cybernetically most effective point or central knot. Several trends thus become visible
• Over & above material & financial changes, it monitors mental, emotional and tension conditions
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9 PHASE GROWTH SPIRAL
Some know-how:
A cycle of nine steps
in growth
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9 PHASE GROWTH SPIRAL
Market Research
Product Development
Communications
Sales
Logistics
Customer Support
1. Profile your activities, capabilities, priorities, …
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9 PHASE GROWTH SPIRAL
2. Pick the special qualities – relatively
Market Research
Product Development
Communications
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9 PHASE GROWTH SPIRAL
3. Identify most burning issues that this profile can address – your suitability profile
Tailor-made solutions
Supply-chain mgt
Multimedia
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9 PHASE GROWTH SPIRAL
4. From the problem to the target group – who needs this suitability?
All Logistics cells
Call centres
Studios
Pharma companies
Ad agencies
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1. Identify target prospects – enthusiasts, visionaries, pragmatists, conservatives … who buys?
2. Identify mode of communication
3. Reach out – “Simple Application, Mass Appeal” SAM
4. Evaluate feedback, resources, etc
FIRE ALL YOUR SAMs!
9 PHASE GROWTH SPIRAL
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9 PHASE GROWTH SPIRAL
5. Possibilities within the target group, elimination
All Logistics cells
Call centres
Studios
Pharma companies
Ad agencies
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9 PHASE GROWTH SPIRAL
6. Profiling within selected segments
Creative databases
Media mgt systems
Multimedia presentations
Ad agencies, studios:
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9 PHASE GROWTH SPIRAL
7. Differentiation of the target group
Ad agencies
Studios
Customer satisfaction:
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9 PHASE GROWTH SPIRAL
8. The “central knot” – cybernetically most effective point
Lead time slippage
Collections on time
Client responses
Ad agency bottlenecks:
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9 PHASE GROWTH SPIRAL
9. Set long term targets and review all earlier steps
“constant life task”
• Goal
• Vision
• Societal obligations
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9 PHASE GROWTH SPIRAL
Essence of the growth strategy: 1. Define, re-define your Suitability2. Determine basic direction 3. Initiate contact with target market/s4. Market analysis – size, segments, feedback …5. Determine ‘basic task’ - thrust area 6. Identify bottlenecks, ‘tensions’, evaluate them7. Prioritise using NPK analogy … “central knot”8. Sharpen focus, differentiate 9. Review & repeat above, for long term growth
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REFERENCES1. Wolfgang Mewes Verlag (EKS)
- Methodology Chart & Checklists Manual - Various references & study materials
2. Al Ries & John Trout - Positioning – The Battle For Your Mind - Immutable Laws of Marketing
3. Geoffrey Moore - Crossing The Chasm
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THANK YOU
Udit Chaudhuri
PIP COMMUNICATIONS
Strategic Solutions
UNIKA ENTERPRISES
eNabling Growth
http://unika.freehomepage.com
6, Roop Kala128, West Avenue Santacruz WestMumbai 400054 INDIA
Tel: +91-22-26045595 e-mail: [email protected]