Sunday, February 15, 2009

Manufacturing Business Growth: Anticipating what your customers haven't imagined they'll need or want

If Henry Ford had conducted a Voice of The Customer or Voice of The Market Survey in say 1893, adminstered to customers and potential customers in the personal transportation market, what do you think the Executive Summary would have said? It isn't too hard to imagine that it might have included mention of requests for faster, more comfortable horses that would consume less food and whose horseshoes would last longer, with perhaps a wish for horses that would transport bigger loads over longer distances.

What kind of business growth and profits might the then-29 year old entrepreneur have created if he'd responded to those customer wishes? In today's uncertain manufacturing economy, our imaginations must not fail us, just as Henry Ford's didn't fail him 116 years ago.

One of my business heroes is Dr W. Edwards Deming, who famously helped the Ford Motor Company turn multi-billion dollar losses of the late 1970's and early 1980's into massive profits by the mid 1980's. Following are a couple of Dr. Deming's quotes that I believe are incredibly relevant to small and medium sized manufacturers struggling for growth today:

"Did customers ask for the electric light? No. They never asked for it, the producer produced it. No one asked for a car, nor a telephone. No one asked for a copy machine or a fax machine."

"Innovation does not come from the customers. Innovation comes from the producer, from people who are responsible for themselves and have only themselves to satisfy."

What's the take away? If you believe that innovation is the key to business growth in the manufacturing sector, and that understanding history is the key to defining your future, then look within and around you for innovation, but don't expect it to be requested from the markets and by the customers you serve.

If Dr. Deming was with us today, he might say something like "Did customers ask for the iPod? No. They never asked for it, the producer produced it. No one asked for the internet, nor the Kindle. No one asked for a Post-it or Goretex dental floss"

Inquiring and informed minds might be wondering, "OK, but by what method shall I innovate? Show me the system for growth. How does the Deming cycle help me one bit with innovation?" These are just about the best questions for small and medium sized manufacturers to be asking right now. I'll explore answers in a future post.

Alistair Stewart

Manufacturing prophet with a passion for manufacturing profits.

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