The time and material (T & M ) business model is based on billing for materials used and time spent to deliver a solution. It stands to reason that automation and the use of commercial off the shelf tools kills the profit incentive with such a business model, since a firm can earn more by applying less efficient methods that increase time and material. Indeed why adopt efficiency when it lowers profits? To explain why efficiency should be adopted when ever possible in a T & M business model I'll use the development of Interactive Electronic Wiring Diagrams (IEWDs) as an example.
Typically delivering an IEWD is a very exotic highly specialized skill set that only a handful of firms know how to do . Most of those organizations use a lot of ad hoc tools,manual processes and substantial staff of software developers, illustrators and subject matter experts which is the bulk of the billing (Time and Material).
With tools that can automate the processes to produce the functional requirementsand machine assist the validation and quality assurance of an IEWD solution thebulk of billable time can be focused on tasks that enhance the value of the IEWD. Such as; media content, 2D and 3D simulations, and even augmented reality, to name a few. These kinds of added value features from traditional development firms of IEWDs add costs that make the project too expensive and their clients usually opt out of themfor minimum IEWD functional requirements!
Realize that organizations that specialize in IEWD development require retaining and financially sustaining DoD complaint data centers and software staff during offline periods. This adds costs since firms have to price in off periods to stay in business.
Now you can understand how a automated COTS IEWD solution achieves profitability. Its the competitive advantage of adding value over mere functional requirements. Its the ability to capitalize higher quality productivity through machine assisting subject matter expert skill sets, leveraging illustrator skill sets and assisting managers to add value over what's expected from traditional approaches. Combine this with not having to worry about expensive non-productive costs in off periods that eat away profits. Because of a higher quality and feature rich effective solution, a good IEWD publication tool suite can deliver, a firm earns more satisfied customers that in turn creates repeat business that results in shorter off periods!
Adopting efficiency means work that was dedicated to a manual process is removed, but it opens the opportunity to focus smart skills to more productive and added value areas that improve capabilities and features over firms not adopting efficiency. Even when accessing other types of contracts such as fixed cost automated COTS solutions mitigates risk to the seller and builds confidence of the seller to the buyer to deliver on time and within budget! Smart firms adapt automation to win business over their competitors.
With that said; if you are part of a technical publications organization the following should be of interest to you:
Technical publication organizations can now take advantage of smart tools that can open opportunities that add a never before revenue stream to their firm with very little overhead. The Atlas' "Wiretrace Studio" IEWD publishing tool and its "P2pViewer" deliver a competitive edge that can deliver higher quality and more features per dollar over traditional solutions. Not only that, but now Atlas' tool suite can be used like a utility as a pay as you use service on Microsoft's Azure Government cloud platform. This dramatically improves profitability since expensive DoD compliance hosting costs are non-existent in off periods.
Attempting to develop interactive wiring diagrams using traditional and ad hoc methods can only deliver what others deliver now. By providing a higher quality and a more feature rich solution an organization is positioned to win and retain business over those that can't deliver equivalent capabilities. Atlas' tool suite has automated processes that other tool suites simply do not have.
Contact Atlas Dynamics Corp to learn how to integrate into your organization a profitable IEWD capability.