Whoever figures out how to differentiate their companies online will lead the PCB industry.
I am an analog guy living in a digital world. Every day my kids drive that point home. I marvel at their command of computers and other digital media. They have more blinking instant messenger "handles" on their buddy lists than I have friends and associates. They multitask between surfing the Web, instant messaging, e-mailing and doing their homework, all while sitting in one place for hours.
Possibly the biggest difference between my digital kids and their analog dad is their view of relationships and expectations. To them, relationships boil down to typing a pithy, cryptic message to someone they probably have never met, or prefer to not interact with on a personal level. Expectations are equally different. My digital kids expect immediate results with zero errors and minimal questions, interaction or qualifying discussion. It is this later point that gets them in trouble.
For example, my daughter orders her college textbooks online so she can save a few bucks. So far, she has received at least one incorrect book every semester. She doesn't receive the wrong book, but the wrong edition of the book. These small errors end up costing additional shipping charges and study time that eliminate any savings. Meanwhile, my son loves to "window shop" online so when I take him to the store he knows exactly what he wants. However, many times when we get to the store he is disappointed because that well researched item does not look anything like it did on the computer screen. Instead the items are smaller, inferior or just plain different. In each case expectations are not met, time and/or money are wasted and they ask their analog dad, "What went wrong?"
Designers and fabricators of PCBs appear to have their own digital vs. analog tug of war going on. The growth of customers buying technical products and services online has created some interesting opportunities, as well as challenging problems, while changing the landscape we operate in. Designers, who sell their technical expertise, and fabricators, who sell their unique capabilities, are both increasingly competing with individuals and companies who have easy-to- use, appealing Web sites that cater to the increasingly digital, technically savvy - and dare I say, younger - customers.
New technology should provide a time- and money-saving improvement, but that's not always the case. Designers and fabricators need to begin thinking long and hard about this. How can you differentiate unique product and service intangibles such as knowledge, capability and quality - the things that make us different as people and companies - in an increasingly digital online world?
If a sales clerk had asked my daughter a couple of qualifying questions, she could have avoided ordering errors and saved everyone time and money. Based on what I hear, the same is true for some of the companies in our industry who order design services or PCBs online. Many online sources will say that satisfaction is guaranteed, but they really mean that they will only guarantee they will satisfy the minimum level of order review, so you receive whatever they think you probably wanted. Based on the growth of companies in our industry, marketing and selling exclusively online minimal customer service is adequate in many cases, but in some cases it falls way short.
So how do you differentiate intangibles in a digital environment? I grapple with this question. I try to separate my antiquated bias of wanting to talk to people and actually know my customers from the realities of digital technology and a new generation who approach design and purchasing very differently. I keep imagining ways to electronically communicate when a technical question arises. But as hard as I try, every time I think I may be on to a winning formula, I get interrupted by a problem or design opportunity that can only be resolved by a conference call or face-to-face meeting.
I do not have a solution for this dilemma. I do, however, believe that you will be hard pressed to find a more fundamental or industry-changing issue. Bigger than outsourcing, bigger than globalization and even bigger than RoHS is the shifting of how people buy custom electronic design and fabrication services. We all need to think long and hard about what differentiates our unique abilities, capabilities and "corporate culture" and how to communicate those intangible reasons to do business in a digital online format. We also need to think about the value of knowing our customers, suppliers and everyone along the supply chain as people.
Finally, I believe that whoever first understands how to effectively differentiate a company's unique and intangible capabilities in digital media will be rewarded with exceptional market success and above average margins and profitability.
These revolutionaries may be out there right now attending college - frustrated by receiving the wrong editions of their textbooks. PCD&M
Peter Bigelow is president and CEO of IMI (www.imipcb.com). He can be reached at This email address is being protected from spambots. You need JavaScript enabled to view it..
