Of People and Technology

The Man or the Machine?Analyze this...

There is an organization called Dell Computers which "was" market-leader in the PC business.There is an organization called Toyota Motor Corp. which "is" a market-leader in the Automotive business and by-far the most profitable auto-maker in the world.While the former is panting for breath with the competition catching up with it (or otherwise), the latter is rolling like a juggernaut.

Why this uncanny comparison between two non-competing entities?The point is this...Both Dell and Toyota are names to swear-by when it comes to supply chain efficiencies.Both have pioneered such great processes by virtue of which they had the competition running for cover.

Direct model from Dell was such a brilliant strategy that it threw the likes of IBM out of Business.And contrary to the popular misconception, there is something that is actually perfect in this world and that's the Toyota Production System.

While Dell's innovation relied mostly on Technology, Toyota relied on its people.Dell had almost everything going right (which is against the laws of nature).If everything is going right...something has to go wrong and wrong it went.The competition soon caught up with the Lenovos and the HPs quickly realizing the benefits of mimicking the Dell model and the whole competitive advantage of Dell is fast fading away.

On the other hand, Toyota has proved to the world that smart people come in small packages and are not too abundant.Inspite of the huge consulting assignments that Toyota has done with a number of American companies on its production system, the world is yet to see anything even close to Toyota.No complex softwares for inventory optimization and Production Planning for Toyota.Just an inclusive manpower and some excellent execution strategies at its perusal.

Technology is definitely something but man seems to be everything for he clearly, still, seems to be the Master!