Dynamic Alternatives
P.O. Box 59237
Norwalk, CA 90652
562 802 1639
dynalt@dynalt.com


S U M M A R Y


DIARY: August 12, 2003 03:35 PM Tuesday; Garold L. Johnson

SDS - Marketing - Program and Process

1...Summary/Objective
2...Why / When people buy
3...People buy benefits, not features
4...People buy value *to them*
5...People decide emotionally and rationalize
6...Every program must be used as designed to be effective
7...SDS must be used as designed to be effective
8...Identifying target markets
9...Only reality matters
10...That they *should* want it is irrelevant
11...Managers want others to change, not themselves
12...SDS requires managers to change
13...Mandates reduce managerial risk
14...Customer pays for mandated practices
15...Manager takes risks with new approaches
16...Technical superiority doesn't insure acceptance


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CONTACTS 

SUBJECTS
SDS Advantages
Diligence Aided by SDS Work Quickly Boosts Span of Attention
Demand
New Way Thinking Working Good Management Used Consistently Add Intellig

0706 -
0706 -    ..
0707 - Summary/Objective
0708 -
070801 - Follow up ref SDS 8 0000.
070802 -
070803 - Rod and I have had several discussions abut the Trade Secrets of SDS
070804 - 030709, ref SDS 6 0001 and how much of SDS is "hidden in plain sight"
070805 - ref SDS 6 OO4K.
070807 -  ..
070808 - I have insisted that the benefits of SDS arise partly from using a set
070809 - of good managment practices, which SDS supports, ref SDS 6 FX5X, but
070810 - our most recent phone call indicates that I haven't yet succeeded in
070811 - making this clear.
070812 -
070814 -  ..
0709 -
0710 -
0711 - Further Analysis
0712 -
071201 - Any computer program that provides support for doing a task carries
071202 - with it a series of processes and ways of "doing business" that are
071203 - essential to the successful use of the program.
071205 -  ..
071206 - Let's take Quicken as an example. If you are going to use Quicken at
071207 - all, it is necessary to enter information on financial transactions
071208 - into the program. If you are not willing to do this, then Quicken
071209 - cannot help you.
071211 -  ..
071212 - Quicken has tools to assist in reconciling its records to the bank.
071213 - If you don't care whether your records and the bank's records agree,
071214 - you don't have to reconcile with the bank. If you don't reconcile
071215 - with the bank, however, you are failing to perform a function that
071216 - can be extremely valuable to you.
071218 -  ..
071219 - If you choose to reconcile with the bank, then Quicken can help you,
071220 - but you have to go about the process in the way that Quicken
071221 - supports, or, again, Quicken cannot help you.
071222 -
071223 -
071225 -  ..
071226 - Why / When people buy
071227 - People buy benefits, not features
071228 - People buy value *to them*
071229 - People decide emotionally and rationalize
071230 -
071231 - Getting someone to buy Quicken requires bringing him to the
071232 - understanding that:
071233 -
071234 -    •  There is an area of his life, managing checking accounts, that
071235 -       is in need of improvement.
071237 -        ..
071238 -    •  Improvement in that area *is* possible.
071240 -        ..
071241 -    •  Quicken can support efforts to bring about that improvement.
071243 -        ..
071244 -    •  It will be necessary to do something differently than he is
071245 -       currently in order for matters to change.
071247 -        ..
071248 -    •  The value of the improvement exceeds the "cost" of:
071249 -
071250 -       •  The software program.
071251 -
071252 -       •  Additions to the computer system that might be needed.
071253 -
071254 -       •  The effort to install the program
071256 -           ..
071257 -       •  The effort to learn to use the program
071259 -           ..
071260 -       •  The energy required to change how checks are handled.
071262 -           ..
071263 -       •  The ongoing effort and discipline to do what is necessary to
071264 -          keep Quicken up to date.
071266 -  ..
071267 - Once he accepts that the benefits outweigh the costs, he still has to
071268 - be willing to commit to *using* the program as designed, and doing
071269 - the work required to make the program useful.
071271 -  ..
071272 - Without that commitment, the box will sit on a shelf untouched, and
071273 - be of no use to him, even if he does buy it.
071275 -  ..
071276 - Now, it doesn't matter to the discussion whether he already does all
071277 - of the actions that Quicken supports by hand (he already works the
071278 - way Quicken does), or whether he undertakes to learn a new way of
071279 - working in order to reap the benefits he is convinced that Quicken
071280 - has to offer. If he isn't willing to use the program as designed, and
071281 - to make the changes in his life that are required in order to reap
071282 - the benefits of the program, the program is of no value to him, no
071283 - matter how *potentially* valuable it could be.
071285 -  ..
071286 - Many, if not most, people perform this cost / benefit analysis
071287 - emotionally. They decide to buy or not based on an emotional
071288 - response, and all the "reasons" that they cite for buying are really
071289 - rationalizations. This is one of the resons that those of us who work
071290 - from logic have trouble selling -- logic is not the primary reason
071291 - that most people buy something.
071292 -
071293 -
071295 -  ..
071296 - Every program must be used as designed to be effective
071297 - SDS must be used as designed to be effective
071298 -
071299 - The same is true of *every* program that augments or supports some
071300 - area of human activity, and it is true of SDS.
071302 -  ..
071303 - There is a difference of magnitude in adjusting to SDS because there
071304 - is so much that it supports -- when you use it as designed.
071306 -  ..
071307 - If SDS is going to deliver anywhere near its potential value, it,
071308 - too, must be used as designed.
071310 -  ..
071311 - However an individual is brought to understanding, he *must*
071312 - recognize that SDS *can* provide value, and that it can do so *only*
071313 - as part of a set of practices that amount to "good management".
071315 -  ..
071316 - If an individual already employs some of the practices (as in the
071317 - case of a Quicken prospect who already balances his checkbook), then
071318 - convincing him of the value of (at least some features of) SDS will
071319 - be easier than if he employs none of the proactices that SDS
071320 - supports.
071322 -  ..
071323 - In this sense, it will be easier to convince people who already
071324 - work, at least in part, the way SDS works, than it will be to
071325 - convince people who do not, in any way, work in a manner that SDS can
071326 - help improve.
071327 -
071328 -
071330 -  ..
071331 - Identifying target markets
071332 -
071333 - So, people who work in ways similar to Rod Welch are *one* segment of
071334 - the market for SDS.
071336 -  ..
071337 - How do we find other segments? The same way it is done for any other
071338 - product.
071339 -
071340 -    •  Identify product features and the benefit that those features
071341 -       provide to the user.
071342 -
071343 -    •  Attempt to find ways of reaching a target audience that has
071344 -       reason to consider that the benefit the program provides is of
071345 -       value to them.
071347 -        ..
071348 -    •  Convince them that the "total cost of ownership" in terms of
071349 -       time, effort, energy, and money, is far outweighed by the value
071350 -       of the received benefit *to them*.
071352 -  ..
071353 - This is so completely obvious to me that I can't see where any
071354 - argument arises.
071355 -
071356 -
071358 -  ..
071359 - Only reality matters
071360 - That they *should* want it is irrelevant
071361 -
071362 - Also note that it matters not a whit whether the benefit *should be*
071363 - of value to the individual, only that it *is* of value (or can be
071364 - made to be of value through education -- called "salesmanship").
071366 -  ..
071367 - Thus all the arguments that Boeing is under all sorts of contractual
071368 - obligations to do things for which SDS is eminently suited (the
071369 - *should* find SDS valuable) is insufficient to get anyone in the
071370 - organization to perceive sufficient value in SDS (or anything like
071371 - it) to undertake the effort to incoprporate it and the management
071372 - practices that it supports into their operations.
071374 -  ..
071375 - Now, having said that, the fact that there *are* commitments, and
071376 - that there *are* practices they are obligated to undertake, provides
071377 - a groundwork (similar to the argument that Quicken supports preparing
071378 - taxes) for pointing out ways in which SDS could be valuable to them.
071380 -  ..
071381 - This is why I keep trying to separate several aspects of SDS and the
071382 - experience using it.
071383 -
071384 -    •  The features of the program
071385 -
071386 -       •  Essential features
071388 -           ..
071389 -       •  Incidental features
071391 -        ..
071392 -    •  The philosophy of why the program operates the way it does.
071394 -        ..
071395 -    •  The set of management practices that SDS facilitates
071396 -
071397 -       •  Those that are essential if SDS is to be of value, such as
071398 -          aligning information to history and objectives, and using
071399 -          history to guide current planning and execution.
071400 -
071401 -       •  Those whose absence reduce the value of SDS, such as using
071402 -          control segments and doing a thorough jobe of building a
071403 -          Subject Index.
071405 -  ..
071406 - The set of essential management practices are intended to confer
071407 - benefit on the organization that uses them. Now we are back to the
071408 - earlier list of what is necessary to convice anyone to buy and use any
071409 - program, ref SDS 0 T940. The sales job is no different in broad
071410 - terms, but it *is* larger in scope for SDS than for many other
071411 - programs.
071412 -
071413 -
071415 -  ..
071416 - Managers want others to change, not themselves
071417 - SDS requires managers to change
071418 -
071419 - Part of the reason that the sales job is harder, is that we are
071420 - trying to convince managers to exert effort to change their own
071421 - behaviors and the way they manage, rather than just to spend money
071422 - and leave the problems to workers. When a manager buys Microsoft
071423 - Office, he passes all of the problems and most of the necessary
071424 - changes in behavior on to the workers. Oh, he can now require Word
071425 - documents rather than typed reports, spreadsheets can automates
071426 - trivial computations, and PowerPoint presentations must be pretty,
071427 - but the changes required in *his* behavior or in that of the
071428 - *organization* are relatively small.
071430 -  ..
071431 - With SDS, we have gone to the idea of a Com Manager and a 3-level
071432 - architecture to minimize the adverse impact of using SDS on an
071433 - organization, but we still have a job to convince a manager to take
071434 - the risks involved in introducing any unknown quantity into the
071435 - operation of his organization.
071436 -
071437 -
071439 -  ..
071440 - Mandates reduce managerial risk
071441 - Customer pays for mandated practices
071442 - Manager takes risks with new approaches
071443 -
071444 - Here is were mandates *can* work. When the government mandates a
071445 - progress tracking system such as Earned Value or planning tools of a
071446 - given sort, then the money is in the contract to spend the money for
071447 - the tools and their deployment, put the effort into training, and
071448 - support employees spending time working with the programs. Even if
071449 - all of this work is wasted, it doesn't matter, because the customer
071450 - is paying for all the expenses, *and* the associated risks.
071452 -  ..
071453 - If he introduces some new tool or set of procedures, he has to pay
071454 - for them, and *all the risks are his*.
071456 -  ..
071457 - If a decision maker at the appropriate level can be convinced that
071458 - the risk of *not* doing the job(s) that SDS supports is greater than
071459 - the risks of using SDS, whe can get some leverage.
071461 -  ..
071462 - I don't know exactly what that takes, but I know that it involves
071463 - some understanding of what management is obligated to do, and what
071464 - they might be willing to do if it were easy enough, and the risk low
071465 - enough.
071466 -
071467 -
071469 -  ..
071470 - Technical superiority doesn't insure acceptance
071471 -
071472 - I can safely assert that the fact that SDS (or anything else) is a
071473 - technically superior solution is nearly irrelevant to the issue of
071474 - getting it accepted.
071476 -  ..
071477 - Technical superiority is *never* enough *by itself* to sell anything.
071478 - There are simply too many counter examples for the idea to be
071479 - believable.
071480 -
071481 -
071482 -
071483 -
071484 -
071485 -
071486 -