Doug DavidoffEvery now and then, several people tell me about a book at the same time. When this happens, I find that it’s a good thing to read it. This happened recently with The Ice Cream Maker, by Subir Chowdhury.
The book was a simple read and contained many pithy quotes and thoughts – nothing new in a parable (even my own). I don’t disagree with the need to pay attention to quality, empower your workforce, or to listen to our customers (with some exceptions).
The danger of this book is that if you follow its simple advice, you throw yourself smack in the middle of the commoditization trap. The book treats multiple situations with the same medicine. As I’ve mentioned in a previous article there are two value segments that people fall into: fundamental value or total value. Following this book’s recommendation would force you to implement a fundamental value proposition -- whether that is right for you or not. Once you find yourself working with that value proposition, commoditization awaits.
The book also goes far a field in stating its argument. One of its main points is that “Quality is not part of [America’s] DNA.” The author claims that America is an innovator, but “As a result [of our lack of quality DNA] we’re constantly creating new products, and new markets, only to lose them to other companies. American companies find themselves on a treadmill, constantly having to come up with new innovations in order to stay ahead of our competition.”
This argument is insane. Certainly, the world is stepping up in the competitive landscape. Certainly, America cannot rest on its laurels as it has at times (and does today). The treadmill Chowdhury refers to has nothing to do with quality – the treadmill is staying ahead of commoditization. What America has in its DNA is demand creation. America focuses on high-margin activities and out sources low-margin activities to other countries. It’s a natural result of business evolution. Any business that forgets the power of commoditization, and the need to stay ahead of it, has only itself to blame for failing.
That’s my read, feel free to e-mail me your comments.
Until next time, Doug