THE BOOK

Probably one of the most daunting challenges in many high-tech firms is to bring a customer-oriented philosophy to the firm's operations. The reason that this challenge is particularly daunting is because it is significantly less obvious to a firm than the need for funding and additional resources. The need for firms in high-tech industries to understand customers, to be customer-oriented and market-driven is vital. Although it typically is the smaller firm that lacks marketing personnel and, indeed, may even be suspicious of marketing tactics, the need to be market-driven is vital for small and large firms alike.

Moreover, an effective focus on the customer requires effective interaction between marketing and R&D personnel. Cross-functional integration between marketing and R&D is a key driver in diffusing market and customer knowledge among all members of a project team in high-tech firms. This integration ensures that an understanding of market needs, desires, and behavior in the early stages of development constitutes the foundation for technological applications - applications which are valued by customers.

This chapter explores in more detail:

• The characteristics of a market-driven organization
• Barriers to being market-oriented
• The downside risks of market orientation
• Overcoming the pitfalls in being market-oriented
• Characteristics of effective R&D/marketing interaction
• Barriers to effective R&D/marketing interaction
• Tools to overcome barriers to effective R&D/Marketing interaction

The chapter’s opening vignette is on General Electric and its activities to be market-oriented.

The chapter’s technology tidbit deals with artificial muscles that could be woven into exoskeletons, which could be wired to an individual’s brain someday.

The chapter’s two experts are:

Jack Trautman, senior vice president and general manager of Agilent Technologies’ Automated Test Group who addresses what it takes to become market-focused in a technology-driven corporate culture;

Jennifer Longstaff, Technical Marketing Engineer, Xilinx Inc., Boulder, CO; she addresses issues related to Engineering/Marketing Collaboration.

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