Engineer-A-Business

Engineers have a step-by-step system for developing products and managing projects. The model they use begins with them identifying the problem they are attempting to solve, identifying possible solutions, analyzing those solutions and then making a decision. Business developers follow their own approach that more or less imitates that of engineers. The only actual difference between the problem solving approaches or engineers and business developers is how their problems are defined and the options they have available to them. Engineers focus on the physical problem that the product will satisfy while business developers focus on how the product relates to the mission of the business and how it can influence its long-term success.

Both of these processes are necessary for new product development. Without creative engineers, businesses would not have a product to sell. On the other hand, without competent business developers engineers would find that no one would use many of the products they develop. Unfortunately, some smaller businesses have difficulty implementing both of these processes effectively. Many entrepreneurial ventures are initiated by an engineer without formal business training. They tend to place greater emphasis on the product development process towards solving problems they believe are important or favoring projects they believe are interesting to work on. They may not end up solving the problems that their customers are facing, which contributes little to the success of their venture. Most of these entrepreneurs come from engineering positions in larger businesses and are used to being told what projects to work on. As they make the transition to starting their own company, they find that they must either learn how to conduct business analysis themselves or ally themselves with someone with those competencies.

While both the engineering and business analysis processes are equally vital to product development, it is equally important to understand how the two need to be used cohesively. Market and economic feasibility analysis must be done before an engineering venture is undergone because the business needs to first establish whether or not the project will be profitable. Logic would initially suggest that this means that business analysis is the first thing that must be addressed in product development. However, this is not necessarily the case. Brainstorming to develop new product ideas is the starting point of any product development undertaking and product ideas come from both engineers and business professionals. Sometimes engineers are aware of product limitations and may suggest improvements that may be beneficial to the company’s clients. Marketing professionals also may be aware of particular customer needs that are not being adequately addressed, although they may need to consult with their engineering team to determine whether or not the projects they are suggesting are feasible or realistic to attempt before they begin conducting a business analysis.

Therefore, whenever a company wishes to develop a new product for its customers, it is necessary for both their engineering and business analysis teams to work closely with each other to develop a product that is going to contribute to the organization’s success.

Last Updated (10 August 2010)