Research Rap: Designing Your Company Out of a Bad Economy

A quick peek into some of my research from Tech-Clarity on
…
Engineering’s
Role in Surviving a Down Economy points out
strategies that Engineering can adopt to help their companies
through uncertain economic times. The research highlights an
approach that allows manufacturers to survive the current
down economy, but also to ensure they are investing in the
future to thrive during the (eventual)
recovery.

The Research
The research is based on interviews with a number of manufacturers.
What is interesting is that despite
the fact that most manufacturers are struggling with the current
economy, two of the three companies researched for the
paper are actually doing well in the current economy. The
report points out that those two companies went through tough
financial times in the past, and then discusses what they did to
get through and be in better shape today. The third company is
facing difficult times today due to the economy (they sell yachts),
but is able to get by despite the fact that their industry has had
to reduce cost.

The report points out four major strategies helped
these companies deal with the present downturn, but also
remain prepared for the future. The strategies discussed
include:

• Holding the Top Line
• Delivering Customer Value at Reduced Cost
• Running a Lean Organization (as if you had a
  choice)
• Keeping an Optimistic Eye toward the
  Future

My Thoughts
I have written about innovation in a down economy in this blog
before, including posts on cut
cost to survive, innovate to thrive, innovating
in a recession, R&D
doesn’t mean restructure and downsize, and reductive
innovation for troubled times. I have even shared some
successes in consumer
products still innovating despite downturn. Can you tell
the economy has been on my mind and on the mind of the
manufacturers I have been talking to???

This report is a bit more tactical in nature, but by tactical I
also mean it can be implemented. The three manufacturers point out
the approaches they have taken to help their companies, but also
point out how the use of Digital Prototyping software (a subset of
PLM) has helped them.

Implications for Manufacturers
To me, this report is an important message for manufacturing
companies to read so they don’t simply react in a knee-jerk
fashion and cut their engineering and R&D spend. The
most disappointing thing I believe a company can do is hunker down
so hard and survive the down economy that they become
irrelevant to the recovering market. The report offers examples
that manufacturers can examine to see if they are right for their
own business. 

So that was a quick peek into some recent research on how companies
can design their way through (and out of) a recession, I hope you
found it interesting. I am also conducting a similar study that
looks more toward innovation and enterprise PLM’s role in
helping companies make it through this global economic crisis. Does
the research reflect reality? Do you see it differently? Let us
know what it looks like from your perspective.