Taking It to the Streets NASHVILLE - Without timely and effective tool innovation, today's vehicle owners and automotive service professionals would be faced with a costly outcome - lengthy repairs and a hefty bill - if those repairs could even be done with old-school tools. For tool companies, the mission is simple: Provide innovation that matters, when it matters. Motor Age recently visited with Mac Tools at the manufacturer's annual Tool Fair, to gain insight on how tool innovation transitions to the streets. "Tool Fair is the one time each year that the
Mac Tools family has the opportunity to come together as a team, share information,
learn more about the business, and view the latest products and innovations Mac Tools has to offer."- John Aden,
president, Mac ToolsInnovation is customer-driven Good-quality, innovative tools don't just happen: "All tool innovation is driven from the demands of the customer," asserts Tim Michel, Hard Line Tools product manager. "We want to be the solution provider for the technician with the right product for the job, to save them time and money." Just as shops strive to build lifelong relationships with their customers, the company realizes that making shops and technicians "customers for life" requires the timely and affordable delivery of innovative, more productive tools. As more technology, electronics and system integration are incorporated into today's automobiles, the task becomes more complex. "Professional technicians earn their living from using our products," says Jay Johnson, Power Tools product manager. "There has to be a high comfort level with our tools, and if they can enhance their productivity, it results in maintaining a customer for life. Market Experience
The ET50 OBDII/EOBD Code Reader is one example of how Mac Tools strives to deliver the right product at the right time. In just 60 days from its launch, sales by distributors have exceeded expectations. This tool sits in the "sweet spot" of an industry trend: strong demand by automotive service professionals for affordable code readers that can handle a wide variety of vehicle platforms. Designed for quick and easy use, the ET50 retrieves and erases generic and manufacturer-specific diagnostic trouble codes for all OBD II and CAN-complaint cars and light trucks sold in the United States from 1996 and later.
"The ET50 is something every tech should have, as it saves them time searching for a more expensive code reader in the shop," says Joe
Poulin, a Maine-based distributor, "if it can be found when [it's] needed, or it isn't tied up in another bay."
The tool is priced less than $70, requires no VIN, and can be used to erase codes as well as check emissions monitors and readiness codes.
(Photo: Mac Tools)
Design changes in cars and trucks are another catalyst for improvements - or even brand-new tools. "I was a technician myself," notes Bob Blue, Paint and Body product manager. "Technicians sometimes modify tools themselves in certain applications or develop ideas based on need. It's important because as cars change, consumers change, and therefore the needs of technicians change. Efficiency is created when we find even better solutions to the ever-changing technology."
Bottom line? Inside or outside the box, innovation has many sources. Sometimes, it boils down to just finding a better way. A technician may ask, "Why can't we do it this way?" An engineer might envision an improvement. A focus group might suggest an opportunity. A component manufacturer may develop a new part requiring a specialized tool to be made to service that part. Other sources include trade publication tool tests, as well as feedback from distributors, vendors and manufacturers.
2. Uncover needs and identify innovative opportunities.
3. Develop the innovation.
4. Conduct internal product testing.
5. Conduct external third-party field testing of product.
6. Establish pricing and packaging.
7. Determine marketing strategy with training programs.
8. Launch the innovation.
9. Seek feedback and adjust when needed.
For tool makers, innovation is about recognizing and seizing the right opportunities - in efficiency, ergonomics, appearance and/or function - and then presenting those timely upgrades to service professionals.
Walking the talk Developing new or improved tools is a time-tested process. This is an open-minded process for Mac Tools, which strives to be sensitive to ideas or suggestions that other companies might pass up. The company embraces an ear-to-the-ground philosophy and innovation process that begins and ends with the customer in mind. It is here that the genesis of innovation begins. It is the dialogue with service shops and professionals that fuels and authenticates the process: "We take customer feedback and apply it to our product innovation," explains Blue. "We really listen to our customers to make new products come to life." For example, the product development staff will often ride with distributors from shop to shop, engaging in an open dialogue about tool needs and ideas. They seek feedback on existing tools, evaluate new tools being field-tested and listen to customers for insight and ideas. In addition, technician comments or focus groups can spark innovation. "Sometimes technicians can describe their needs," says Jansen Plesich, Mac Tools Electronics product manager. "Other times, the need is hidden in a conversation because they might not know what is out there. Our job is to listen for opportunities where we can help them."
"Just to sell tools because they're available doesn't help technicians," adds Plesich. "Productivity is huge." Assessing the opportunities with the customer in mind is the difference between production for the tool's sake versus making tools that matter.
(Photo: Mac Tools)
After an idea for a new tool or an improvement to an existing tool is discovered, the next step is to develop the innovation. As the needs of the marketplace are defined, notes Tom Jech, product manager for Toolboxes, "We have to develop new products to allow technicians to do their job more efficiently, which in turn increases their pay."
Standards and branding matters The Product Development Process (PDP) essentially defines customer requirements, builds or sources the tool that meets these new Product Performance Specifications (PPS) and validates that the tool exceeds these requirements of performance, durability and quality. This process all happens prior to launching the new tool. "The mobile tool market that Mac Tools supports is made up of professional mechanics who need tool reliability and performance to surpass the needs of casual users," says Gary Hendrickson, Quality Process manager.
In designing and developing a viable solution, the company will determine whether to work with a manufacturer (or vendor partner) in developing prototypes. A determination is made as to whether a new product will be professional-grade and/or retail-grade. In addition, tool specifications are developed to ensure an innovation meets or exceeds commonly accepted industry standards. For example, electronic hand tools must meet both American Society of Mechanical Engineers (ASME) specifications and Underwriters Laboratory (UL) standards.
"Mac Tools has established [PPS] that identify all of the industry standards our products must exceed for performance, durability and finish," adds Hendrickson. "The PPS also include the quality inspection programs that manufacturing must adhere to in order to produce the consistently high level of quality our customers have come to expect from the brand."
The Mentor, manufactured and supplied by SPX/OTC, was designed to bring two innovative solutions to technicians. First, the Mentor's OBDII Smart Cable eliminates the need for System Smart Insert chips, saving the service professional time looking for or ordering them. Secondly, the tool includes a one-button Automated System Test that checks all of the vehicle's controllers.
These two productivity features allow technicians to diagnose and fix a vehicle quickly - on many cars, with only 10 keystrokes versus almost 200 keystrokes. The software allows coverage for domestic and Asian vehicles through 2006, European vehicles through 2005 and recently, a number of heavy-duty trucks. In addition, the tool can be configured to perform diagnostic service, analyze transmissions, check airbags, ensure the antilock braking system (ABS) is working correctly and also to act as a lab scope.
"[The Mentor is] the easiest tool to have that guides technicians through a repair path specific to the vehicle he is working on, with information and step-by-step instructions, all at the push of a button," says Dan Smith, a distributor in New Hampshire.
Wasted time is eliminated, allowing technicians to be more productive during their workdays. Smith notes that shops in his area have purchased a dozen Mentors; most bought the $4,900 version (diagnostic, transmission, airbag and ABS package) and a few even purchased the fully loaded version (which also includes the lab scope functionality).
"It's not enough to sell the best tool to shops," says Smith. "I also sell training packages, and bring in manufacturer reps to help my customers learn how to get the most out of their tools, such as the Mentor."
He notes that with a fuller understanding of key tools and their functionality, tools like the Mentor can enhance productivity and profitability.
"We utilize third-party testing such as distributors and shops, as well as manufacturer testing and specifications, but we also test their standards and ensure we comply with industry specifications," Johnson explains.
Pricing, packaging, branding and other marketing decisions are part of the PDP. "Mac Tools assesses the perceived value to the end user of a new tool when determining retail pricing," says Johnson. "If it's a first-to-market item, we will assess the psychological price threshold. Otherwise, we will check like items to compare the innovation to products technicians are currently using now to perform a given job."
"We are mindful of fair price and value," adds Michel. "Checking other families of tools and understanding our manufacturing costs also play a role."
Plesich says that interviewing technicians using the innovation as well as conventional products during field-testing is a factor in determining pricing: "If the price is too high, the tool won't go anywhere. It doesn't matter how cool it is."
A unique aspect of tool innovation that separates some companies from the pack is the incorporation of training into the marketing of new innovative tool offerings. Mac Tools requires that its distributors be well-trained in the use and operation of any new tool. The annual Tool Fair international event and regional events provide a number of hands-on training sessions for the tools that will be introduced into the market. Vendor and manufacturing partners also provide training to distributors at regional events, online at the Mac Tools Web site or via DVDs, manuals or flyers.
Once a new or improved tool is launched, sales are closely monitored. Feedback from users is sought to ensure the tool meets the market need. When necessary, adjustments and improvements are incorporated in response to user comments and real-world experiences. Interestingly enough, the open dialogue with customers not only helps in resolving any product launch concerns, it also provides ideas that can lead to other innovations downstream.
