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How the Web breeds happy customers

An exclusive interview with a technical leader

Staff -- Test & Measurement World, 7/1/2004

Harnessing the Web can be a valuable tool in developing the kinds of new products and services that engineers need today, says Victor Tolan, president and CEO of B+K Precision.

T&MW: How has the Web helped B+K build customer satisfaction?

Tolan: The Internet is probably the best thing that has ever happened to us and to other medium-sized companies. With our major investment in upgrading our Web site, we can now offer dynamic Web pages that are database driven, so we can easily update specs, prices, and product photos. Engineers and other customers can quickly find where a particular product is available and how many units are in stock, as well as details on accessories. We can then link customers directly to the Web-based shopping basket of the distributor in their area. Among other Web benefits, customers can download our technical manuals and software updates at no cost, and get information on calibration, service, and repair. In addition, we offer a feature that allows a customer to enter the model number of another vendor's product and compare it to a B+K-equivalent product. The Web also serves as a trading center where customers can upgrade outmoded equipment.

T&MW: What other benefits derive from your commitment to Web-based information?

Tolan: The Web has helped us foster more open communication with customers. In the past, we relied on focus groups, mail, and fax for customer feedback. Now, we find that the "contact us" feature on the Web is a very valuable tool, giving us immediate customer input on products and applications. This enables us to go back and develop products that more closely fulfill customer needs.

Web feedback, for example, helped us develop custom power supplies for Rockwell. Some of these custom products in turn can become standard products if the demand is there.

T&MW: Apart from the Web, what other approaches are helping B+K strengthen customer relationships?

Tolan: Because of the increased complexity of today's test equipment, we are focusing more on developing software-intensive products. We use large FPGA and memory chips instead of custom or dedicated chips, which allows us to change software much more easily than we can change a board and a custom chip. So, we can develop several products very fast based on a single architecture. These products also can be programmed via the Internet. Key products, such as the new VSP series power supplies and the 4071 arbitrary waveform generators, offer built-in self-calibration. It's also easy to upgrade their software without changing the hardware.

T&MW: How has the increasing globalization of technology affected your operations?

Tolan: It's had a great impact on us. Seven years ago, 90% of our sales were in North America. Today, international sales are 37%, and I won't be happy until we reach 60%. With the global economy and the ease of communications via the Internet, our engineering teams in Southern California can more easily work with our development teams in India and Rumania, as well as with manufacturing in Taiwan. This is not a matter of cutting costs through outsourcing. The international nature of our engineering teams allows us to get closer to customers all around the world and to design in features and specifications important to local markets, as well as meet local regulations and standards.

 

Victor E. Tolan

President and CEO, B+K Precision, Yorba Linda, CA

Victor E. Tolan was named CEO and president of B&K Precision in 1996. He started in the test and measurement business in 1979 as an R&D engineer for Beckman Instruments. Later, Tolan served as director of sales and marketing for Pomona Electronics. Looking back, Tolan notes that the experience of working for both a test instrument company and a test accessories company gave him a good understanding of the market and customer needs. The B+K president holds an engineering degree and an MBA from California State University, Fullerton.

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