I often talk about the need for today’s executives to understand the relationships that govern the differences among their marketing department, their sales group, their engineers, and their designer(s). Too often they pair up Sales & Marketing with one another, and Design & Engineering. Big mistake. Though it's a common practice, it makes little sense to anyone who thinks it thru.
Executives should take a second look. Sales deals with the present, Marketing deals with the future. Likewise, Engineering deals with the present while Design deals with the future. By incorrectly pairing these sectors of the company you can create the formula for argument, bickering, and eventually bad decisions for product development. Sales and engineering are about the company and products. Marketing and design are about the consumer and the product's use and/or impact.
Each division of the company has a specific goal to achieve. The real question is “What should come first?” If your answer is something other than Design then you will most likely relegate your company to mimicking what someone else creates. And that’s only the “tip of the ice burg”.
Fortunately, some top executives "get it." They've spent years learning how to navigate the initiatives necessary for successful product development. Design, not engineering, develops the wow factor that establishes the brand. Engineering builds the wow factor. Marketing presents it and sales brings in the bottom line. Each element brings an indispensable component to the company.
One of the most successful executives recently shared his insight in a magazine article. If you don’t know the name "Bob Lutz" you should. Bob was, and still is, one of the most respected automobile executives, and he understands what sells.
In Bob’s most recent article, Driven by Design, (Road and Track September 2015) he notes, “There aren’t any bad cars anymore.” “Reliability, braking, steering, handling, ride, and refinement are all largely on par across automakers and segments. That leaves just one chief differentiator: design.”
In our industry, boat manufacturers make fiberglass. Almost everything else, engines, dashboards, seats, windshields, canvas, generators, sinks, etc. is supplied to the manufacturer and is installed by the manufacturer. In other words, almost everybody has the same things to install. The manufacturer’s pricing is determined by the amount and cost of those installations.
So what is the chief differentiator in the marine industry?
Design.
Hopefully this sheds some light on how to manage your future.
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