Re: [SI-LIST] : Bad IBIS models!

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From: Brian Young (briany@ibmoto.com)
Date: Thu Mar 16 2000 - 12:08:39 PST


Roy Leventhal wrote:
>
> Brian,
>
> Your points about the cost of IBIS modeling and selling the effort to management
> are well taken. They are probably understood
> by all but the most casual of observers of this issue. However, in my opinion:
>
> 1. Suppliers regularly spend millions on advertising without a moment's
> hesitation. I can only assume that this is because
> it's a lot easier to sell the sizzle (cost product blurbs) than the steak
> (technical aspects of marketing - i.e. signal models).
> This is an endemic "problem" with most management because they (fortunately for
> most aspects of their jobs) lack the "obsessive"
> focus necessary to master the technical details of modeling, etc. As a survival
> skill, the modelling engineers need to learn how to
> summarize (30,000 foot view) and put a marketing wrapper around what they do
> when selling their effort to their management.
>
> 2. The cost (apparent + hidden) of a modeling effort that produces a bad model
> is at least as much, usually more, then an
> equivalent effort that produces a good model. Constructive negative feedback
> from users, process improvement, training,
> etc., all help.
>
> What separates good suppliers, the ones I preferr to continue working with, from
> bad suppliers for me is attitude. They are the ones
> who behave as though they believe that, if something is worth doing, it's worth
> doing well.
>
> Best Regards,
>
> Roy

Roy,

I agree with your points, but I would like to put some spin on them.

1. Suppliers spend millions on advertising because they have proven
to themselves a hard link between increased advertising and increased
sales. Advertising is scaled back in media channels that yield little
sales increase.

With respect to IBIS modeling, there is little history to guide the
investment. Will you spend millions and see no increase in sales? If
you spend millions and see an increase in sales, how much of the
increase
was due to IBIS and how much to other factors?

I would like to put a marketing wrapper on an argument for investment
in IBIS modeling. How can I put some numbers on it? Managers want
to know what the return will be on their investment.

2. The costs associated with bad or non-existent modeling is just as
you say: apparent and hidden. That is, not quantified. How can the
numbers be quantified?

Finally, things that are worth doing are worth doing well. The problem
is selecting the things you will do out of the nearly infinite space
of things that are worth doing. You can't do everything.

Brian

-- 
***************************************************************
* Brian Young                           phone: (512) 996-6099 *
* Somerset Design Center                  fax: (512) 996-7434 *
* Motorola, Austin, TX               brian.young@motorola.com *
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