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by HERA Executive Board member Dr Troy Coyle, Manager of Innovation & Product Development at NZ Steel “Disruptive technologies bring to a market a very different value proposition than had been available previously. Generally, disruptive technologies underperform established products in mainstream markets. But they have other features that a few fringe (and generally new) customers value. Products based on disruptive technologies are typically cheaper, simpler, smaller, and, frequently, more convenient to use”. Clayton Christensen, The Innovators Dilemma. We work in an industry based on well-established and traditional materials. Metals have been fabricated for millennia. Applications have historically ranged from warfare, tooling, building and construction and are now evolving into emerging applications such as geothermal energy extraction and biomedical technologies. Metals, such as steel, are known for their high strength, ductility, and formability. They are widely accepted as being reliable materials. However, new materials, such as graphene and other polymers are being developed and refined that may have comparable or different value propositions to metals. New fabrication processes, such as additive manufacturing (or 3D printing), are also rapidly being refined and finding more mainstream acceptance. Combined, these have real potential to disrupt our markets and more particularly our business models. How many of us are reliant upon a single high margin product or service for profitability? The rules for disruption (see below) mean that often-times we are complacent to new products that we initially don’t see as a threat to us. They might come in at low cost but low quality and grab a small part of the market that we are happy to forfeit. But then, their performance may be improved and then they start to expand their market acceptance and increasingly compete with traditional products. The classic case study is the camera, which has continuously been disrupted and with […]

Some manufacturing firms that survived the global financial crisis have one unusual secret to their success: stop manufacturing. Though just one of the strategies that helped keep some New Zealand manufacturing firms economically buoyant, it was among the most surprising results of Simon Collins’ PhD thesis. Simon dedicated his PhD to investigating the factors that increased resilience in New Zealand manufacturing firms to help them withstand the worst of the global financial crisis nearly ten years ago. After conducting in-depth interviews with seventeen manufacturing firms, he identified four resilience-building strategies that separated those that continued to perform well during the recession, and those that did not. “One of the biggest surprises was that some of the resilient firms stopped being manufacturers. They outsourced manufacturing, instead focussing on developing and designing great products, and then taking ownership of distributing and retailing those products themselves. “By delivering their products straight to their customers they captured some of the margin that would usually go to a third party,” Simon says. Simon says this tactic was part of a wider survival strategy to maximise efficiencies, which saw resilient manufacturing firms aiming to be more efficient at every stage of the manufacturing process. This improved margins, and as a result, muted the negative effects of lower sales and the unfavourable exchange rate. Simon’s research identified three other resilience-building strategies: • Innovating platforms – developing the next generation of products to stimulate new sales • Actively collaborating – working closely and consistently with other firms and individuals to help develop technology and products • Cataloguing specialist knowledge and skills – building libraries, creating databases of skills and lodging patents to identify, protect and then capitalise on areas of expertise. “

Optimisation of a few critical elements can transform sales conversion. In my previous article How to leverage your 8 hidden assets in your marketing channels, I gave tips on making marketing material effective for engineering, technology, and manufacturing businesses. Now we look at websites in particular… 1. The attraction of a good look The design creates the first impression – but it’s about quality, not quantity, of images. An integrated colour scheme that supports your logo and branding works better than the chaos of too many colours. This is a growing trend. Contrast (of colour or brightness) should be used to highlight important things, not distract from your main message. 2. Well organised – to get around easily Your website needs to give a positive ‘usability’ experience to keep visitors coming back. The menu needs to be meaningful to the target audience in their own language, easy to follow, and consistent throughout the website (so they don’t lose their way). Information should be easily accessible but not too much dumped at once. Tests have shown that people only complain about ‘information overload’ when it’s poorly organised. Simple layout with a ‘unified flow’ (versus fragmented information) is easier to follow, with adequate white ‘breathing’ space to ease the eyes. Each page needs to have a clear focus (except your home page) with not too many side issues or clutter. 3. A compelling message – to command attention Focus on your target audience’s needs, fears, pains, questions, and emotions, State the key benefits you offer them, and say something unique, provocative, or curious to grab attention. 4. The key elements to catch the eye Your text should be easy to scan, so important things are conveyed in your headline, sub-headings, and bold text, not hidden in large chunks of text for readers […]