Mentors, Advisors and even friends have suggested us to consider a consultancy model. So, instead of giving out our analytics software to manufacturers, we should use the software ourselves to provide consulting services to our clients. This model has been proven to be successful and we could make more money in a shorter time while serving a broader spectrum of companies.
Although we believe that consulting can bring value to manufacturers if executed correctly, we do not see our company follow this path. An important aspect is missing in consulting gigs and that is ownership.
Ownership is extremely important for us as a company. I argue that our mindset of ownership is the biggest contributor to our success. There are 3 big reasons:
1. Ownership creates aligned incentives
The incentive structure for consultants is different than the incentives of manufacturers. Manufacturers are rewarded with profit through an increase in output or a decrease in cost, while consultants are paid for their service. Consultants are thus incentivized to create more service instead of creating more sustainable output.
Different from consultants, we are aligned with manufacturers incentives. Our reward is tied to our client’s profit through our unique impact based pricing.
2. Ownership ensures long-term engagement
We do not see value in short-term projects. Half of our staff come directly from the semiconductor industry, so we understand that manufacturing is complex. There are only little things you can explore if you work with a factory for only a few weeks.
We see value in long-term engagement. In fact, we want to be engaged with our clients for decades. This allow us to gain vertical-specific domain knowledge and help our clients solve their most complex problems.
We make sure to have our stakes in the clients we work for. This ensures long-term engagement and allows our company to get expertise and a strong network in the manufacturing verticals we work.
3. Ownership enforces execution
Consultants mainly focus on strategy as it is not up to them to execute their plans. While strategy is undoubtedly important, only execution can bring results. With ownership, we are forced to see the plan through till the end as we are measured on how we can improve strategy and execution.
Taking ownership is how we do things at FireVisor. Against the suggestions from our trusted circles, we deliberately chose to not go with a consulting model as it can not give us the level of ownership we want.
FireVisor creates AI-powered analytics platforms for manufacturers. Our AI understands manufacturers data and helps process engineers to improve yield. We have clients in Singapore, India, and China.
Learn more about us and our unique impact based pricing here.