Dare to Try Concepts: Unlocking Profit Potential

In the dynamic landscape of business, whether we’re production engineers, supervisors, managers, or factory owners, proving the profitability of our investments is paramount—even before incorporating those numbers into our capital expenditure (Capex) budgets. However, when it comes to disruptive innovations, calculating return on investment (ROI) isn’t always straightforward. Often, it’s an empirical journey. This is where visionary individuals step in, relying on intuition to shape the future of organizations, drive growth, and ensure project profitability.

Let’s illustrate the transformative power of a concept with a historical example, one that resonates with those who witnessed the evolution of consumer electronics in the late 20th century: the iconic Walkman. When Sony engineers presented the Walkman prototype to Akio Morita, the company’s founder and president, he harbored doubts about its potential success. Despite these reservations, he made a pivotal decision to back the project.

The Walkman revolutionized how people experienced music, replacing clunky portable radios with a sleek, personal music player. Its success wasn’t solely about technical specifications; it was about envisioning a new way of living—a world where music accompanied us seamlessly, whether on a morning jog or during a commute. Morita’s intuition guided him; he trusted his vision rather than relying solely on conventional market research, which can sometimes yield fallible results.

Sony’s leap of faith paid off handsomely. By 1979, they had sold the equivalent of 230,000 Walkman units, and by 1981, production had ramped up to 1.5 million units. Over the entire 1980s, an astounding 400 million Walkmans found their way into consumers’ hands. This success story underscores the fundamental reason to embrace concept experimentation: it’s about evaluating possibilities and calculating preliminary returns. Often, these concepts build upon existing products tested elsewhere. Researching results from other plants provides valuable insights.

In our industry—whether we’re optimizing sewing machines, productivity devices, automation, or production control systems—concept testing matters. Sometimes, cost constraints limit experimentation, but a straightforward return calculation reveals feasibility. Remember, this cost is an opportunity cost—one that spans both economic and strategic dimensions. Economically, increased productivity leads to future cash flows. Strategically, having more to offer in the market can boost market share.

And here’s a tip: Collaborate with solution providers. They often offer trial support at no cost, driven by their interest in making successful sales. So, dare to try concepts—it’s how we open doors to big profits.