No doubt everyone is feeling the heat these days. CAE vendors are no different. When companies, big and small are looking for a solution, the criteria and the ROI requirements are higher than ever before. Vendors are being pushed to be flexible, shave a little off the top or simply adapt to the needs of the customer. Let's face it, it's always been this way, but the financial landscape has a big impact on how much effect this can have.
At the same time, we have seen this merger/acquisition roller coaster in the CAE world. From CAD to FEA to CFD, everyone is buying everyone. Many feel that "more is better" and that if a vendor can have everything under the sun in their portfolio, than they can deliver top-notch solutions to their customers. This can be true, all depending on how you implement it.
History has shown if not done properly (could point fingers, but I won't), things can quickly get out of hand. Not only do things begin to breakdown, but the messaging becomes misguided and you just appear to be buying things to "appear" that you are the all in one provider. EVEN if you are buying top notched technology, it is all about the positioning and implementation and most importantly, support of the customer.
Let's take CAD, for example. You would expect that if a CAD company acquired a PDM system, that at some point the integration would be very, very tight. Not day one, but clearly that would be part of the vision. You would also expect that from a tech support and implementation perspective, that the support infrastructure would be cleanly integrated. Meaning, the front line support should be able to answer some of the basics, the support system would be able to pull up your account and at least check status, transfer/escalate you to the experts-- but not simply pawn you off to the other guy (that often is a person from the acquired company). My point, is that from the customers perspective, it should be seamless. As a user, what would impress me is better support than I had before, makes me feel that you actually thought about it. Some companies have done a good job of this and others are just going through the motions.
On the opposite end of the spectrum, there are small companies that are lean and mean. They don't offer everything, but what they do offer is second to none. They solve your problem, listen to feedback and are very responsive when you run into problems. Would you prefer to have a great relationship with a few vendors and get top notch support OR would you rather call 1-800-HELP and get nothing but lame excuses and be transferred around in an endless loop?
Just because a company claims to be the one stop shop, often the bigger they become, the more difficult it is to execute on the mission. The integration tends to be slower and not as seamless. Makes perfect sense, the more you bite off, the more risk in not delivering. It is happening today in one of the bigger CAE companies right now. They are buying fantastic technology, attempting to integrate it, but not sure the market understands it all. The market is forced to "bear with things" while things are worked out from the top.
Integration, aside, tech support is the first to suffer and often the last thing fixed. If I am a long time customer, who do I call? How disruptive is "your restructuring" having on my day to day? I expect someone to help, is it clear who that person is? My experience is that it is not only not clear, it is a total cluster.
It's fair to point out that being the Goliath of an industry does actually work and some do it fairly well. I've never been to Walmart, but from what I hear they are a fairly well oiled machine. Seems to be working for them and millions of Americans.
What is the point of this post? Don't be fooled by the hype. Dig in and see if it is what its claimed to be. How will it work for "you"? Don't buy from what you see in ppt alone. Make sure you buy from the person across the table. Make sure he is genuine, you get a good feel. Ask the sales guy to call support on the spot to see what the process looks like? Not the only test, but if one of their own sales guys has a hard time getting through, just imagine what you will face.
I'd love to hear the flip side argument..
At the same time, we have seen this merger/acquisition roller coaster in the CAE world. From CAD to FEA to CFD, everyone is buying everyone. Many feel that "more is better" and that if a vendor can have everything under the sun in their portfolio, than they can deliver top-notch solutions to their customers. This can be true, all depending on how you implement it.
History has shown if not done properly (could point fingers, but I won't), things can quickly get out of hand. Not only do things begin to breakdown, but the messaging becomes misguided and you just appear to be buying things to "appear" that you are the all in one provider. EVEN if you are buying top notched technology, it is all about the positioning and implementation and most importantly, support of the customer.
Let's take CAD, for example. You would expect that if a CAD company acquired a PDM system, that at some point the integration would be very, very tight. Not day one, but clearly that would be part of the vision. You would also expect that from a tech support and implementation perspective, that the support infrastructure would be cleanly integrated. Meaning, the front line support should be able to answer some of the basics, the support system would be able to pull up your account and at least check status, transfer/escalate you to the experts-- but not simply pawn you off to the other guy (that often is a person from the acquired company). My point, is that from the customers perspective, it should be seamless. As a user, what would impress me is better support than I had before, makes me feel that you actually thought about it. Some companies have done a good job of this and others are just going through the motions.
On the opposite end of the spectrum, there are small companies that are lean and mean. They don't offer everything, but what they do offer is second to none. They solve your problem, listen to feedback and are very responsive when you run into problems. Would you prefer to have a great relationship with a few vendors and get top notch support OR would you rather call 1-800-HELP and get nothing but lame excuses and be transferred around in an endless loop?
Just because a company claims to be the one stop shop, often the bigger they become, the more difficult it is to execute on the mission. The integration tends to be slower and not as seamless. Makes perfect sense, the more you bite off, the more risk in not delivering. It is happening today in one of the bigger CAE companies right now. They are buying fantastic technology, attempting to integrate it, but not sure the market understands it all. The market is forced to "bear with things" while things are worked out from the top.
Integration, aside, tech support is the first to suffer and often the last thing fixed. If I am a long time customer, who do I call? How disruptive is "your restructuring" having on my day to day? I expect someone to help, is it clear who that person is? My experience is that it is not only not clear, it is a total cluster.
It's fair to point out that being the Goliath of an industry does actually work and some do it fairly well. I've never been to Walmart, but from what I hear they are a fairly well oiled machine. Seems to be working for them and millions of Americans.
What is the point of this post? Don't be fooled by the hype. Dig in and see if it is what its claimed to be. How will it work for "you"? Don't buy from what you see in ppt alone. Make sure you buy from the person across the table. Make sure he is genuine, you get a good feel. Ask the sales guy to call support on the spot to see what the process looks like? Not the only test, but if one of their own sales guys has a hard time getting through, just imagine what you will face.
I'd love to hear the flip side argument..
2 comments:
Great post, Coop. All-in-one can be great or crap. It's often easy for someone to say, "well, I've had good luck with my FEA tool... maybe I'll get my CFD from the same source. They must have all the kinks worked out."
It pays to take a hard look and remember that a company with a single mission and passion to be the best at what they do might provide a better solution to your needs.
Also, I always look at it like this: would you buy a single entertainment device containing a TV screen, CD player, DVD player, gaming console, receiver, and surround speakers all wrapped in one hunk of sheet metal? Maybe some would, but I'd rather spec out the best in class for my needs for each component.
Interesting post Derrek.
The most important activity with an acquisition comes after the fact with the assimilation of the acquired company and products into the main. Too often this is not given the priority it deserves (from the top) which can eventually lead to a tarnishing of the reputation and value of the acquired company and its products, and the person that suffers most, as you point out, is the customer.
However, it can work with adept integration, by keeping motivated and passionate product groups intact, and with the right approach and infrastructure for customer support. When all said and done though, if the customer encounters a problem that requires some expertise or special knowledge, then they should reasonably expect to get through to those experts promptly and not have to speak to too many other people on the way. From the customer’s perspective it shouldn’t make any difference whether they’re dealing with a large corporation, or a single solution vendor, they need a solution to their problem quickly and efficiently and without any finger pointing.
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