Engineering in Troubled Times

While the recent business meltdown has impacted the whole world in an adverse way, it has created opportunity for some sectors. It re-emphasised the term "value" in business. All of us know that the market price of a product/service is not determined by either input cost or competotor pricing. It is finally determined by consumer perception of value in product or Service. For same product differnet customer are willing to pay different prices based on what "Value" they see in it.
The value can be conveyed to the customer in two ways.

• Value can be either built in product/service and conveyed to customer
• Increase the perceived value of product/service in customer mind without adding value.

While the second options is always easier and glamouras. Companies use models, promotions, to highlight the perceived value of product. The pertient example will be Real estate where price have gone many times in last 3 years while intrinsic value of propert has moved in same proportion. Over time the gap between "Real value" and "Perceived value" has increased so much that it as created a unstable system.

The present business condition has given chance to companies to create the value not just communicate it, and engineering holds the key. Engineering is the art of creating value in product/Services.

Product companies have to go on drawing board and innovate the offering. They have to drill down to basics and understand the needs of customer. With support from IT services and better engineering tools, they are in better equipped to offer the value for money. The design team has to understand that creating a fancy product is not only marvel of engineering but meeting the need of customer is. Service companies have to re-engineer their process so they can align them self with need of product companies to offer cheaper and better products.

I personally see a great potential in Engineering in coming days.

PS: These are my personal views. I can be contacted at sahaynk@gmail.com