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Embracing change is key to improving business

For manufacturers trying to upgrade their product lines, educated customers need to be comfortable with new improvements

By Greg Cober -- Industrial Distribution, 10/1/2007

Everyone loves new products. New stuff is always more fun than old. But what about when a manufacturer refreshes an existing product line through a major redesign—one that keeps form and function, while improving operation?

In that case, we are dealing with change. And change is always a challenge.

Accepting and embracing product upgrades is important. Many common industrial products range from 50-100 years in age. As machining and materials capabilities progress, it is natural that these products progress as well.

In fact, the manufacturer who boasts, “We make the same product as 50 years ago in the same way,” might be ignoring ways they could improve their product and service by integrating new technologies.

If manufacturers neglect core products—believing they are “good enough”—they leave themselves open to being commoditized, with the resulting loss of margin and market share.

Years ago, I read a book by one of the Silicon Valley gurus who discussed a new home computer system that was introduced to compete with the system that was then, and still is, dominant. Even though the technical experts praised the superiority of the new system, it failed in the market. Consumers didn’t want to learn a new system; they just wanted the old one to work more reliably.

Creating product that works faster, more reliably and lasts longer must be an ongoing goal for any manufacturer who does not want to see their product copied and commoditized. It is critical that manufacturers continually challenge themselves to find ways to achieve that goal.

The gold standard for manufacturers is a product improvement that is fit, form and function interchangeable with the existing product, without a part number change.

The next level is one that is almost identical, but just different enough to require a part number change. When manufacturers achieve that goal, it behooves us all to embrace the change.

This doesn’t mean that we shouldn’t raise concerns; we should. Manufacturers are obligated to explain change clearly and concisely, while communicating any possible negative effects of the change. Most consumers of industrial products, when fully educated, will accept that change.

A part of the challenge manufacturers have these days is that many customers are stressed for time. An ad campaign that promotes our latest improvement may get a glance, but will more likely be ignored in the battle to address the crisis of the moment.

Use of Web sites and online tools, however, gives manufacturers a means to make information readily available when customers need it.

The plea I would make to consumers of industrial products is to be open to change. We manufacturers work hard to identify your concerns about our products and to find ways to address those concerns. We recognize that the new must easily replace the old. We strive to make sure that the new does not create impediments for you.

Being open to product upgrades ensures that manufacturers will continue to invest in bringing you the ongoing improvements needed to maintain performance and competitiveness.


Author Information
Greg Cober is manager of training at Warner Electric Co., a manufacturer of mechanical and electric power transmission equipment based in South Beloit, Ill. He can be reached at greg.cober@warnerelectric.com.

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