Automotive

Often business problems present with one set of symptoms but have an entirely different cause. Further, in the larger analysis, the symptoms may not even be worth treating. In this segment, Anil Menawat and Adam Garfein of Menawat & Company discuss how they use techniques from Profit Mapping to help their clients discern problems' root causes and what if anything they might do. A few highlights:

• Discerning the root cause of the problem is really about defining the true prolem the company faces.
• Like Root Learning, Menawat takes a holistic, collaborative approach to problem definition.
• Once the problem is defined, future scenarios can be explored to determine its potential impact on the business.
• Anil and Adam provide two concrete examples from the automobile industry and manufacturing to illustrate their points.

Looking over the next 12 months, Rachel McCormack, President of MicroMax, is looking to expand into avionics and white goods. Avionics represents a good fit. Mike, MicroMax's CEO, got his start in avionics and so is familiar with the industry. Further, mission critical avionics components require stringent testing much as in the automotive industry.

The market for MicroMax's products in white goods like refrigerators and washing machines is less clear. While these products have embedded systems, the extent to which testing is necessary is less apparent.

MicroMax developed MxVDev as a response to the demands of software project management in a global economy.  MxVDev is MicroMax's product for testing embedded software systems.  As mentioned in an earlier segment, embedded software systems are those where software enhances an already existing function. For instance, embedded software is what enables anti-lock braking systems.

Given the importance of embedded systems like anti-lock braking, testing is critical. MxVDev attacks testing differently in a few ways:

• It eliminates communication overhead by expressing the requirements into software tests that are either passed or not. Both parties agree that the requirements are met when the tests are passed.
• It emulates the embedded system itself in software eliminating the need to ship expensive equipment around the world for testing.
• It allows multiple tests to occur at once, thereby accelerating the testing process.

Like many small businesses in Michigan, MicroMax is completely self-funded, largely out of a desire to maintain control. Rachel McCormack, MicroMax's president, also notes the difficulty in collateralizing receivables for services businesses. Service businesses typically have few sellable assets, and banks are concerned that customer service fee revenue will dry up, leaving them nothing to collect if the loan goes south.