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Dyson DC21 (Read 1351 times)
Carmine_Difazio
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Re: Dyson DC21
Reply #120 -
06/03/07 at 7:04pm
Quote from cprohman
on 06/03/07 at 3:12pm:
The bottom line when judging the performance of Dyson as a company is "are they profitable"? I would have to guess that the answer is clearly "yes", so your strange mathematical manipulations seem rather spurious.
Not from a dyson product buyer's perspective. It's whether the product is properly priced for its performance and the market. Or if the prices are inflated to compensate for the abundance of non-contributing high priced labor. Like the high GM prices of its cars because of the union workers' wages and benefits.
From a business point of view, you have to measure the output of the enginers in terms of the products they send to market. We can't credit/blame them with the root technology. That belongs to James. (Though the recent ASA ruling will put a huge smear on dyson's image).
But the gang of 500 get the credit/blame for the DC11, DC15, DC16, DC17, Contra rotating washer, and the DC21. The only glimmer of hope is the DC18 dyson-lite and its overpriced (by your own admission). All these products fall way short of the mark, bar and standard that a company with 1/3 of its employees as engineers (500) should (and must) attain. You can carry the deadwood for a time but that time is starting to run out for dyson. Ask all dyson retailers how new dyson sales are from this year to last year and they'll all tell you the same thing. Falling off precipitously from previous years and for new dyson products. ALL have told me that. Doesn't sound authoritative and official but I'm sure it's honest and true.
Carmine D.
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JimB
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Re: Dyson DC21
Reply #121 -
06/03/07 at 10:52pm
So going to stick to your guns and say Dyson should cut thier Research and Development budget. Incredibly shortsighted, I just don't understand your view in business at all. The company makes a commitement to putting a large portion of profits to R and D and you say they should cut that budget and do what with the profits? I just don't think I have ever heard a company criticized for spending profits on research and development.
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Carmine_Difazio
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Re: Dyson DC21
Reply #122 -
06/04/07 at 6:34am
JimB:
It's a business measurement called a "cost benefit" analysis. Dyson should try using it rather than calling it "wrong thinking." If it did the result would be 500 engineers vice 5 underwhelming vacuum products in 5 years and one vacuum (the latest DC21 cann) that has dismal sales after 3 months and the dyson AirBlade that has no sales after 9 months. So the company is giving the AirBlades away. Probably because there is such a huge demand for the device.
Or is your/dyson's answer to the underwhelming products to hire more engineers?
Now that's "right thinking!"
Carmine D.
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cprohman
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Re: Dyson DC21
Reply #123 -
06/04/07 at 12:12pm
Quote from JimB
on 06/03/07 at 10:52pm:
So going to stick to your guns and say Dyson should cut thier Research and Development budget. Incredibly shortsighted, I just don't understand your view in business at all.
Carmine explained his perspective on another thread. He is a former cost accountant, and his perspective is typical of cost accountants. To cost accountants engineering is simply another cost to be measured and budgeted. Many companies do very well with that kind of thinking, and it is quite appropriate in stagnant, non-innovative industries. At the other extreme, some companies think of engineers not as costs to be compared to past or current sales, but as investments in the future. The modern hitech sector would be examples of that thinking. For example, Hewlett-Packard has a mission statement for their engineers that they mission is to make every product in their line obsolete within 18 months. In these sectors, staying a step ahead of the competition, and reaping the profit from early sales before prices fall is the key.
Vacuums have for a long time been a reletively stagnant, non-innovative industry, so Carmine's approach may be appropriate. It remains to be seen if a large investment in engineering can pay off over the long term.
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Carmine_Difazio
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Re: Dyson DC21
Reply #124 -
06/04/07 at 12:59pm
Carl:
My perspective is typical of all business leaders who are trying to stay in business for the long haul. If you don't measure and cost out your labor charges, materials cost, and overhead expenses you will never know what it takes to be profitable. One of the reasons that engineers make terrible business leaders. Dyson fits the mold.
Remember what happened to the high-tech sector in 2000: The bubble burst and the stock prices tanked. Why? Failure to measure and control costs. Many firms, including Hewlett Packard, suffered terrible financial losses for several years and some still (Dell was a high flyer with stock prices exceeding $100 a share. It just recently made a deal with Wal*Mart to sell its computers and move away from its direct sale strategy. Nothing new for Dell. It tried this strategy before in 1992 with Sam's Club Stores. It failed. Why? Excessive inventory costs. Oh no. Sounds like cost accounting again.) And they always bring in the COST ACCOUNTANTS to make them profitable again (turnaround is the business name for it).
How? By measuring and reducing costs and expenses. Why? To compensate for profits falling off on high tech products as they saturate the market and their prices are reduced to stay competitive.
Remember the words of Columbia Business School's Bruce Greenwald: "In the long run, everything is a toaster. " I will add especially vacuum cleaners that lose their suction and clog. What is meant by this? All dazzling innovations end their days as commodities, products that anyone can make and that are bought only according to their prices. Dyson vacuums fit the mold.
Carmine D.
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Last Edit: 06/04/07 at 2:17pm by Carmine_Difazio
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cprohman
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Re: Dyson DC21
Reply #125 -
06/04/07 at 3:29pm
Carmine, I don't disagree that with any product you reach the point of diminishing returns, and it becomes, as you describe it, "a toaster". Once it is "a toaster", cost control becomes critical. Computers were once innovative, but have become commodities, so the ability of engineering to add value becomes limited, and cost control gains in importance. Vacuums have been "toasters" for a long time, with very little difference between vacuums of 50 years ago and vacuums of today (especially at Air-way). Still, some companies are always trying to break out of that cost-control-only mode with innovative engineering. Dyson has their cyclones, and their ball. Miele has their lightweight, stylish cases and Vortex motor. Tacony has their "Hydra" with two suction motors. Hoover had their "Z".
One problem with measuring engineering is that in order to know if you made a good investment you have to compare current engineering costs to future sales. If the current engineering investment pays off, it will pay off in terms of future sales, not current ones. Thus we may not know for several years if the current engineering staff is worthwhile, or a waste of money.
I do agree that at some point the Dyson line will no longer seem "innovative", and they will over time become "toasters". As that happens, engineering on vacuums will diminish, prices will fall, and cost control will become the key. Note, though, that if the engineers are productive, they could simply move to other areas, whether it is washers, hand dryers, wheelbarrows, or whatever. Thus, at Hewlett-Packard, they continue to develop innovative products, even as older ones such as computers and ink-jet printers become toasters.
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Carmine_Difazio
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Re: Dyson DC21
Reply #126 -
06/04/07 at 6:29pm
Carl:
The top business leaders and companies, regardless of the industries and products, always know their costs and the "bottom line." Engineers don't. Dyson fits the mold of an engineer runned company. Over, over, over weighted in engineers by any business standard applied.
Look at IRobot. Lost money for 13 consecutive years on robotic bomb detection devices. Why? Alot of R&D poured into the bomb detection robots with limited market application. Finally hit it big, with of all things robotic vacuums, a spin off of the bomb robots. Trumped dyson with his 500 engineers who was talking about robotic vacuums for 2 years while IRobot was selling them in the USA. Dyson launched in April 2002. Rhomba in October 2002. And IRobot priced the vacuums affordably so every household can have at least one. Then went public in 2005.
Carmine D.
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M00seUK
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Re: Dyson DC21
Reply #127 -
06/05/07 at 11:50am
Maybe iRobot will have a good quality product in time, but it's current products are little more than robotic floor sweepers, somewhat removed from anything approaching a 'proper vacuum'. If Dyson ever enters this market, they have promised that they won't launching until it's seen as a proper replacement.
In other news, I notice that DC21 motorhead is now listed on the Dyson UK web site.
http://www.dyson.co.uk/
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Carmine_Difazio
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Re: Dyson DC21
Reply #128 -
06/05/07 at 4:30pm
Hello M00seUK:
The iRobot sweepers get decent ratings from Consumer Reports (the highest beating out $1500 Karcher and $1800 Electrolux) compared to the higher priced similar products' competition. Also has a longer run time (70 minutes vice 20 and 50 for the others).
And Rhoomba buyers appear to be satisfied with the IRobot performance for the price $150-250. I believe you said (I could be wrong) dyson had to get moving on the robotic vacuum or risk losing the robotic vacuum market completely. I believe (again if I'm correct) you gave a due date for dyson by End Of Year 2006. Have you revised your schedule? And care to guestimate a price that would be competitive in the UK/USA market for dyson's robotic (if and when it does happen).
Carmine D.
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Last Edit: 06/05/07 at 6:38pm by Carmine_Difazio
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M00seUK
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Re: Dyson DC21
Reply #129 -
06/09/07 at 10:05am
The Roomba has certainly established a market; a robotic floor sweeper for folks that are after a fun way to surface clean their carpets. Home robotics have long been popular, I used to have a big interest myself when I was younger. I begged my parents to get me one of the Tomy robots in the late 80s for an x-mas present. Alas, it was too expensive at 100 GBP! So to say, many people are buying them as a toy, with a slight practical function, so that they can reprogram them for other functions. If I recall correctly, iRobot are releasing a model exactly for this purpose.
But how many people are using the Roomba in place of their regular vacuuming? If they are, they're a little deluded in my opinion.
How about for a quick maintenance clean, say before visitors arrive at your home?
Check this comparison video :-
http://www.youtube.com/watch?v=gtC0kI4_dKg
Personally, I'd rather use an upright for a couple of mins, that wait on the bash and crash method of a robot cleaner.
There's a huge market in a robot cleaner that work well, that is, as the sole vacuum in a household. However ineffective the Roomba might be, it has captured people's imagination and has no doubt returned a tidy profit to iRobot, which they can invest in to R&D. Dyson's patents make promising reading, it appears that like everyone else at this time, they're finding it tricky to provide an effective yet practical power source be it mains or battery. Dyson also have the luxury of a steady revenue stream from their existing cleaners with which to invest in to development. While that remains the case, they don't have to launch into the robotics market until they either reach their goal or a credible competitor launches a product.
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