Growth by Communication - Lessons in strategy

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.

THE IMPACT OF TECHNICAL

DOCUMENTATION

Bird Hit Simulator – a Story

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.


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 …


“Use a thawed chicken.”

Moral of the story:

Communication is vital to a technology’s success

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

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

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

PC REVOLUTION

The product and user “speak” to each other.

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 …

TC’S WEAPONKey words:

• Simple Application • Mass appeal

SAM – letter, mailer, brochure, ad, …

MARKETING STRATEGY

Components:

1. Entry strategy

2. Consolidation strategy

POSITIONING ELEMENTS

• “Who am I?”

• “What do I do?”

• “For whom?”

• “Why me?”

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

UNDERSTANDING GROWTH

GROWTH MODELS1. Capacity expansion

– “De-bottle-necking”

Feeder

Technology

Downstream

Portfolio size

Core

Servicing

GROWTH MODELS1. Capacity expansion

– Enhancement, line extension, syndication / co-operation

Line - 3 Esteem AX

Line - 2 Esteem VX

Line – 1

Esteem AX

GROWTH MODELS2. Forward integration

Phase - 1

Raw Materials

Phase - 2

Intermediate

Products

Phase - 3

Finished

Products

GROWTH MODELS3. Reverse integration

Phase - 1

Finished

Products

Phase - 2

Critical Intermediates

Phase - 3

Core

Raw

Material

GROWTH OF MARKETS

Technology Adaption Life Cycle

Time

Market size

Early Adopters/Innovators

Visionaries

Pragmatists Conservatives

End of Life

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

CHALLENGE TO TCTo mould each communication

about the technology, breakthrough, product and the company in step with its

maturity in the market. Thus, …

CHALLENGE TO TC

… to navigate the technology company along the TALC

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

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

GROWTH & POWER

Growth of a system is its process of integrating with the environment

GROWTH & POWER• Power to overcome bottlenecks,

deficiencies

• Power to sustain growth

• Power to resist overgrowth

Power = Harmony with environment

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

“TENSION”• “Tension” – relationship between minimum factor

and the company – analogous to electrical

Self-organisation

+

Energy to resolve

-

Problem area

Tension

PROBLEM• Process - what does it do?

• Structure – what is made of?

A

BC

C

A B

HIERARCHY• Energy strategy• Power problems• Psychological problems• Informational problems• Financial problems• Economic problems • Technical problems• Material problems

GENERATION OF POWER

Performance

Dependence

Power Power

PINCER GRIP CONCEPT

Performance

Dependence

Power

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

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

9 PHASE GROWTH SPIRAL

Some know-how:

A cycle of nine steps

in growth


Market Research

Product Development

Communications

Sales

Logistics

Customer Support

1. Profile your activities, capabilities, priorities, …


2. Pick the special qualities – relatively

Market Research

Product Development

Communications


3. Identify most burning issues that this profile can address – your suitability profile

Tailor-made solutions

Supply-chain mgt

Multimedia


4. From the problem to the target group – who needs this suitability?

All Logistics cells

Call centres

Studios

Pharma companies

Ad agencies

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!



5. Possibilities within the target group, elimination

All Logistics cells

Call centres

Studios

Pharma companies

Ad agencies


6. Profiling within selected segments

Creative databases

Media mgt systems

Multimedia presentations

Ad agencies, studios:


7. Differentiation of the target group

Ad agencies

Studios

Customer satisfaction:


8. The “central knot” – cybernetically most effective point

Lead time slippage

Collections on time

Client responses

Ad agency bottlenecks:


9. Set long term targets and review all earlier steps

“constant life task”

• Goal

• Vision

• Societal obligations


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

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

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]

Education

Growth by Communication - Lessons in strategy