Regarding the question of the customer not always begin right, this brings
a story to mind which, for me, illumnates the entire topic.
A small but very innovative and profitable chip manufacturer based in
Arizona had a customer whose entire product line was built around Chip
Alpha, developed in 1991. By 1993, they had designed two newer
generations of the chip, much more powerful, robust, efficient, etc., and
were busily taking orders for Chip Gamma while already in development with
Chip Delta. Along comes their customer with a big re-order for Chip
Alpha. There isn't even an inventory any more (life cycle in the chip biz
being about 18 months), and the fabs are busy churning out Gammas.
Now, this manufacturer is successful not only because they make good
stuff, but because they have a very strong customer focus, deeply embedded
in their culture and in all their relations, internal and external. So
they sit down with the customer and try to persuade them to go over to the
Gammas. The Alphas were a nice chip in their day, but today they have
been recycled for use in toys, since such better chips are available to do
real work. The customer is unhappy. They have designed their processes,
both in manufacturing and in marketing, around the Alpha chip. An entire
segment of their business is Alpha-based.
OK, says the chip maker. We will set up a line at the fab and make you
quantity X of the Alpha chip, and we will maintain the old price. But be
warned: We cannot permit the lack of vision by a customer to constrain
our innovation and creativity. We will work with you if you like to
update your thinking, BUT WE WON"T EVER PERMIT OURSELVES TO SELL
OUTDATED/OBSOLETED PRODUCT JUST BECAUSE THE CUSTOMER WANTS IT.
...and they have adopted that as corporate policy, and communicated it
throughout the company...
Of course, I don't tell this story too often inside a company where
resistance to focusing on customers is one of the obstacles to growth and
development...
-- Jack Hirschfeld jack@his.comWould you like to swing on a star, carry moonbeams home in a jar and be better off than you are? Or would you rather be a mule?