For some time now, the Capital Goods Industries has used global position and equipment monitoring technologies. Last week I talk about the Cloud Based Technologies that were impacting our world. I want to look in a different direction this week.

On March 22nd the following press release got my attention:

China: – Commercial drone data company Skycatch, and DJI, the world’s leading manufacturer of civilian drones and aerial imaging technology, have extended their partnership to manufacture and deliver a fleet of 1,000 high-precision drones for Komatsu Smart Construction.

The Skycatch Explore1 drone autonomously flies over job sites to create highly accurate 3D site maps and models and will be deployed on Komatsu job sites. This map data will be used for Komatsu Smart Construction’s new data service that enables robotic earth moving equipment, used in the earthwork stage of the construction process, to correctly dig, bulldoze, and grade land autonomously according to digital construction plans.

“Conducting a site survey using a drone used to take hours. However, by implementing Explore1, users can carry out surveying quickly and easily. Now it is possible to perform drone surveying every day. Taking off, landing and flight route setting are all automated. Ground Control Points (GCPs) are no longer needed. 3D data is immediately generated and an entire construction site can be visually checked with the 3D map. The Explore1 is a true game changer for the construction site,” said Chikashi Shike, Executive Office of Smart Construction Division at Komatsu.

And some of you didn’t think we were being impacted a lot by technology. Imagine?

How do we keep up? That is an interesting question for many of us. In University I took a minor in Computer Science. We learned to program in Fortran and Cobol. We used punched cards. How old do you think that makes me feel?

The last time I purchased disc drives for a computer center was in the late 1970’s and for the price of $1,000,000 I bought eight-disc drives with removable 44 MB drives and two controllers. You read that right – a million bucks for about 350 MB or storage. The current pricing is about $1.00/GB.

In the early eighties I was running a software business in Denver. They had at their peak over 450 dealers using their software. Caterpillar was offering a product from DDPD – Dealer Data Processing, that took paper input from dealers had it keypunched and returned to the dealer after processing. They did the invoicing, inventory management, everything. With Paper.

Time have certainly changed.

That is one of the challenges that we have faced in our training business. I have personally had to change and adapt. I used to teach at University. I had a classroom, a blackboard with white chalk and a room of students. I talked (some called it teaching) and they listened. In England they called it learning from the pipe smoke of the teacher sitting in a room with the students.

I started Quest, Learning Centers, in the early 1990’s and taught in a hotel meeting room to a group of 25 or so students. It was for me going back to the classroom. But first we had overhead slides. We had “text” books of about 250 pages each that we created using voice recognition software. Voice recognition is everywhere today but it was a rarity in 1992. Overheads morphed into power point presentations.

However, training was a challenge for many dealerships. You see it cost money. Many dealers didn’t want to invest in their employees. The employee was expected to arrive with the necessary skills and they would be taught about the products. That is another “Imagine That” isn’t it?

In many cases that still remains true today. Companies are not investing in employee development as they should. It is quite disturbing actually.

To go full circle, we moved from the classroom to webinars. The classroom was thought to be too expensive and the webinar eliminated travel. The problem with a webinar is that the instructor has no idea what the student is learning. I was not happy about that learning device at all.

Then we explored Learning Management Software (LMS) starting in the early 2000’s,  or what they call the “aughts.” Well the products available weren’t ready for prime time. Today they are amazing at what they can do. Now we can do some amazing things. I know more about what the student is learning using current LMS software than I did in the classroom. It is terrific.

Then we took the slides from power point with audio tracks overlaid to them and had an online webinar. Then we used an extremely capable film company to come to Hawaii and spend a week filming us. We created over 500 film clips that we have embedded into the learning products we put out in Learning Without Scars.

Paul Baumann, the owner of Xfinigen, was excellent at flying drones which is why I was do interested in the Press Release from China talking about Komatsu. He used drone shots for many of our film clips. You can see them on our web site at www.learningwithoutscars.org and select either of the two blue bars to see some film clips. The one on the left shows some of Paul’s talents with drones.

Time have changed and they are still changing. The pace is accelerating. Adapt or Die.

The time is now.

Recently I read an excellent article on the IoT regarding cloud based technologies and the impact that they are going to be having on all of us.

The cloud is impacting all of us gradually and some of us rather strongly and quickly. The technological capability enabling this shift—often referred to as the Internet of Things (IoT), which is essentially an advanced version of the sensor and gateway combination used for years now in other Industries is changing the OEM business model from one of item-by-item sales transactions to an outcome-based service model.

Amit Jain, senior director of product management at ServiceMax, says it this way. “As the old saying goes, what you want is a hole, not a drill. We’re seeing OEMs move into what we call outcomes-based service models where they sell a service-level agreement tied to the desired outcome the equipment generates. So, instead of light bulbs, a company sells guaranteed lumens as a service. Instead of a jet engine, an airline buys guaranteed flight time. We’ve even seen some printer companies selling guaranteed page output versus ink and the device. Customers don’t care about the [OEM] product; they want the outcome those products provide.”

As most of you realize the traditional reactive service model employed by dealers has not taken maintenance seriously. Neither has the Industry been quick to adapt to standard charges and standard repair times. The customer in many cases views the dealer shop as a “black hole.” A machine goes in to the shop for repairs and we are not given accurate completion dates nor accurate quotations. As a result it appears to the customer that we would rather have them call the service department and a few days later a technician shows up to fix it. Because of this, field service has become the main source of service for owners of construction machinery.

For over a decade now we have had global positioning systems in place and that moved to having electronic control units on the machine. Now, like the Automotive Industry we have fault codes reported on the equipment. Going back to Jain: “the capabilities provided by cloud-based mobile technologies enable remote equipment monitoring, automated service requests, technician dispatching and work order closing, which are creating new revenue streams for OEMs by adding value to post-sale warranties.”

He goes further “The indirect effect of proactive service like this is that OEMs get happier customers, which of course has bottom-line impacts across the board.”

Dealers ignore these advanced technologies at their peril. This is not going to be a passing fad. This will become more and more embedded into our equipment and we will be able to do much more accurate remote diagnostics in the very near future.

Every Dealer Business System provider is going to have to adapt their systems to this New Reality.

Every major company in the capital goods supply chain is going to have to change as well.

This is but one more piece of evidence that “the world around us is changing at a rate greater than we are.” The individual who made that quote famous was Jack Welsh. He went further and said that when that happens “the end is near.”

It is time to pick up the pace of change in our businesses and our lives.

The time is now.

A Great Idea on Learning from a Customer.

Many of you know that we, at Learning Without Scars, are very supportive of new and improved approaches we could be taking with our training platform. That is how we have developed from Management Training, that we first offered with Quest Learning Centers in the early 1990s, to the four different approaches we have in Learning Without Scars; The Learning On Demand Program (LOD), The Planned Specific Programs (PSP), The Virtual Classroom (VCR) and the Planned Learning Programs (PLP).

 

Recently we were approached about an idea a client had who is the Director of Operations of a Bobcat dealership. This talented lady asked if anyone had approached the LOD programs as part of a monthly department learning plan. Of course, at that point no-one had suggested this to us or discussed it with us.

 

She wanted to have each of their stores take the same LOD class. At the end of the month, after everyone had completed the program, they would have a Skype Call or a GoToMeeting and talk about the program of that month. That way each team Member and their Manager would have a clear view of where everyone stood on the knowledge scale. They would have a common understanding of what was expected and share common jargon in communications.

 

What a great idea!

 

They had ten stores with each store having one in-store sales person who handled everything; parts and supplies and rentals. They would get a membership for each store ($50.00/store – total $500.00) and then everyone in the store could take classes for the member pricing. An individual LOD is $115.00/student So if there were one person in each store the monthly training cost would be $1,150.00.

 

She thought that they should take the PSP – Planned Specific Program – which covers four individual classes – but do the classes once a month together. That then morphed into a specifically designed program of LOD’s as she saw the need. This would allow her to create a “personalized” learning program for her business and her teams. What do you think about that?

 

The Time is NOW.

Today for #MondayBlogs, I want to talk about books and reading and their ability to bring about dramatic change.

Learning is undergoing a radical transformation, although you wouldn’t know it looking at our present school structures and systems. You are seeing the internet transforming schooling. You have the Khan Academy changing the early school years and EdX transforming the Universities of today.

The standardization of curricula designed to create efficiency and accountability may fail to tap the intrinsic motivation of students. It may feel especially restrictive to those who have an intense drive to learn, their intellectual wings constrained by too much structure. Innovators and other change agents are not much interested in the standards applied to schooling.

Innovators wanted to dive deep into topics of their own choosing rather than follow the path of a syllabus. They exhibited a true love of learning – even if they had no love for school.”

This is from Melissa A. Schilling, the John Herzog professor of Management at NUU’s Stern School of Business who is the author of “Quirky: The remarkable story of the traits, foibles and genius of breakthrough innovators who changed the world.”

She also notes the power of reading and of books.

“Their stories (the innovators) also highlight something else: the power of books. Books may not seem as glamorous as recent technology-enabled alternatives like videos and webinars, but few learning vehicles can rival what can be delivered with a book. It is far easier to customize how one consumes a book than a video, lecture, or in-class discussion. These latter alternatives are great complements to books, but not substitutes. You can skim sections of a book to see its overall structure; you can study some passages intensely, re-reading them if you want, and pausing to contemplate. You can also easily move back and forth between text and diagrams in whatever pace and pattern works for your learning style. You can take a book home and read it in bed, or out to a park or coffee shop. This is more important than may at first be obvious; some people function better with some level of background stimulation while others require a setting with as little background stimulation as possible. Allowing people to choose is important. And when a book sits on your shelf, it serves as a visual placeholder that reminds you of its content (a large advantage print books still have over digital).”

I don’t think it’s a coincidence that every serial breakthrough innovator I studied had an outsized appetite for books. Books enabled them to choose the areas of expertise they would develop, and to circumvent barriers that might have held them back.

A few blogs ago we exposed to you the reading list from our consulting web site www.rjslee.com and also the articles we have written over the past twenty-five years. Have a look and do some reading. It will help in your personal growth which is, after all, our goal at Learning Without Scars.

The Time is NOW.