They're Giving It Away

My partner, Steve Mulaik, has been working for several years compiling a master list of all of the functions that might be included in a Warehouse Management System. He figured that a tool like this would provide a substantial competitive advantage in developing WMS requirements for clients. Last month, he decided to offer it free to anyone who could use it.

This raises an interesting question of whether intellectual property is most valuable when it is protected, or when it is shared.

Certainly, products and writing that can be protected by patents and copyrights produce substantial financial value for their creators.

But, information on how to best apply and combine these ideas and technologies is only protected by trying to keep it secret.

While working in Europe, I discovered that we share the notion that this type of information is power. But there is a difference in how we treat the information. In order to protect “market share” and to compete on individual projects, they hold it closely to the vest. Here, my experience has been that because we believe it to be valuable, we offer it more freely to gain “mind share.” They sell the result, and we sell the process.

In the “good old days” when my father was running the Materials Handling Management Course at Lake Placid, he assembled a library for each student. The library was a collection of trade literature from materials handling equipment manufacturers. But, he insisted on including only materials that had clear educational value. And, believe me, there was a plenty of it! I know, because it was my job to check it in and pass it out.

Our industry has always had a strong tradition of sharing valuable information. Each of the MHIA Product Sections work hard to create materials to educate the users and designers of materials handling systems. Individual companies include drawings, application guidelines, specifications and case studies in their trade literature. And, with the advent of web sites, this information has exploded, and is kept current.

At industry trade shows and conferences, speakers willingly share details of technology development and system design.

One of the best examples that I know of giving away valuable information is the “Rules of Thumb” brochure on warehousing and distribution equipment costs that is produced and updated regularly by Gross and Associates. It is truly a useful tool, and I applaud Bob Silverman and his team for continuing this effort.

Recently, it seems to have become common for customers who are looking for system design help ask prospective designers or suppliers to include some solution concepts in their proposals. At first, this struck me as being unfair because it gave them the opportunity to select the best ideas from each of the bidders and then pass them on to the winner. There was some question in my mind about whether, or not, we should share our most creative thoughts at this point in the process.

I believe that I have overcome my apprehension. It really is a good way for a user to get a feel for how a designer understands and thinks about a problem situation. Many of the approaches and concepts that we feel so possessive about are probably not so secret, anyway.

Useful design information is time consuming and expensive to develop. Initially, only those who could afford to pay could take advantage of it. But, eventually, all valuable information will become common knowledge. Now, via the internet, it is coming into the public domain faster and faster. It’s available to everyone. The smallest users now get the same benefits as the biggest. It’s up to you go get it and to use it.

Contacts:

GrossAssociates.com
MHIA.org
Smulaik@theprogressgroup.com

ABOUT THE AUTHOR

James M. Apple, Jr. is a Director in The Progress Group. Prior to co-founding The Progress Group in 1991, he was a Partner with Coopers & Lybrand's SysteCon division. During 1992-1995 he served as a Senior Systems Advisor with Vanderlande Industries, a major conveyor and systems provider in Europe.

Jim is an internationally recognized thought leader in the area of facility design and integrated distribution systems. His contributions to the improvement of distribution practices have been recognized by his receipt of the prestigious Reed-Apple Award, which is given for lifetime contributions to the advancement of the material handling profession. Jim has also received the Institute of Industrial Engineers' Facilities Planning and Design Award. He has written numerous articles and handbook chapters on warehousing and logistics operations and is a popular speaker on logistics seminar and conference programs.

Prior to SysteCon, Jim worked as an Industrial Engineer with IBM, was Supervisor of Facilities Planning for the Oldsmobile Division of General Motors and was Executive Vice President for an automotive aftermarket parts supplier. He holds B.S. and M.S. degrees in Industrial and Systems Engineering from the Georgia Institute of Technology.