A Business Model in the Always Uncertain Economy

The Three Ps for business success: people, processes, and platforms.
Erich Buergel - general manager for the analysis division at Mentor Graphics, Wilsonville, Oregon

Erich Buergel, involved with PC-based automated thermal design and analysis tools, proposes a business model with the proper balance of people, processes, and platforms that produces success in any economic climate.

Buergel believes that a big problem with tech companies today is the idea that operating with the latest technology platforms will result in greater productivity.  However, productivity relies on a cohesive network of people, processes, and platforms.  People have to operate the technology platforms, and they must be motivated to do so.  Processes need to become more collaborative, integrating data sharing, communication, and documentation. 

Every business will have its own unique balance of these three Ps that will optimize operations.

However, this is all easier said than done.  As Buergel points out, "the modern commercial environment, for design to production, deals with very complex products - and is itself quite complex.  Emerging product requirements, from compactness to green environment standards, are only adding to the complexity of getting a product to the market."

Great pressure is put on mechanical design engineers and managers to develop functionally innovative and more reliable products as fast as possible to the market with reduced cost.  Balancing these needs in any company is a huge feat amid the recession.

A well chosen technology platform paves the way for new processes and optimization of peoples' skills and time.  For example, and engineering group is developing a new fuel valve but is constantly having setbacks.  The valve can't deliver the flow needed for system operation.  Every time there is a design change, the valve must be sent to a lab for CFD (Computational Fluid Dynamics) analysis that takes several days.

The solution must be based on the company's people, processes, and platforms.  A new technology platform that improves processes and appeals to staff and stakeholders who have to work with the changes must be considered.

A potential solution for the fuel valve may be to install an in-house CFD lab if employees could be easily trained to use it.  Any solution must be transformative but not disruptive by merging it neatly into existing engineers' tool sets.

The economy is always uncertain, and can climb or crash at any moment.  A successful company must be able to bend without breaking.  A company that has put time and energy into forming a synergistic operation that balances people, processes, and platforms will stand the test of time in any economic environment.  Don't put all your eggs in one basket.