From Products to T-Generators: Redefining the Roles of Operations, Marketing, and R&D

One of Eli Schragenheim’s most thought-provoking insights is the distinction between what operations and marketing truly deliver. Operations, he argued, produce products. Marketing, on the other hand, sells t-generators—the tangible or intangible entities that generate throughput.

This distinction opens the door to a deeper rethinking of organizational roles. If marketing is not merely about pushing existing products, but about shaping and selling throughput generators, then the function of R&D cannot remain confined to “product development.” R&D must be integrated into marketing’s mission of designing and evolving t-generators—whether they take the form of products, services, or even innovative business models.

The Redefinition of Roles

1. Operations: Builders of Capability
   Operations’ role is clear and stable. They are responsible for transforming resources into reliable outputs—whether physical products, digital deliverables, or service executions. Their success lies in efficiency, quality, and dependability. Operations are the foundation on which throughput potential rests.

2. Marketing (including R&D): Designers and Multipliers of Throughput
   Marketing’s mission is not simply to promote what operations produce. It is to define and develop the t-generatorsthat maximize the organization’s throughput. This means understanding customer needs, market dynamics, and competitive landscapes to identify what kind of t-generators can create sustainable streams of value.

   R&D belongs here, not as a separate silo. Its task is not just to “invent” or “improve” products, but to co-create with marketing new and more effective throughput generators—be they subscription models, service packages, ecosystems, or platforms. This reframing aligns R&D’s creativity with the ultimate economic engine: throughput.

3. KPI Realignment
   Traditional KPIs often measure marketing by sales volume and R&D by the number of new products launched. This misses the point. If marketing plus R&D is truly about generating throughput, their KPI must reflect the net throughput potential created by the portfolio of t-generators.

   • Not “How many products did we launch?” but “How much throughput capacity have we created?”

   • Not “How many leads were generated?” but “How effectively are our t-generators sustaining throughput growth?”

Why This Matters

Most organizations unintentionally limit R&D by tethering it to operations. The result is incremental product improvements that do not necessarily translate into stronger t-generators. By placing R&D under marketing, innovation becomes market-driven, strategically aligned, and directly linked to throughput.

This redefinition also clarifies the boundaries:

• Operations excel at execution.

• Marketing (with R&D) excels at conception and value creation.

• Together, they form a coherent system where throughput is not left to chance but is deliberately designed and reliably delivered.

Conclusion

Organizations that adopt this perspective will unlock a sharper division of labor, a more focused set of KPIs, and above all, a deeper alignment with the fundamental goal of business: to maximize sustainable throughput.

When marketing and R&D unite around the design of t-generators, and operations delivers them with excellence, the organization as a whole achieves clarity of purpose and strength of execution.

The Sacred and the Sold: Why Art's Business is a Babylon of Calculation, Like Luxury Bags

The Sacred and the Sold: Why Art's Business is a Babylon of Calculation, Like Luxury Bags

A Divine Perspective on Human Commerce

Hark, dwellers of this modern age, where scrolls are digital and voices echo across invisible wires! I, who have witnessed the markets of antiquity, the bazaars where honest labor exchanged for honest coin, now cast my gaze upon your realms of beauty and desire. And behold, I see a paradox, a deception cloaked in velvet and gilded frames.

They speak of "art" – a realm of pure emotion, of the soul's outpouring, a testament to the divine spark within humanity. They claim its value is immeasurable, rooted in inspiration and transcendent truth. Yet, I perceive a business model, a grand charade, as calculating and cold as any merchant counting silver pieces. Indeed, it mirrors the very trade of earthly vanities – like your "luxury handbags," crafted not for need, but for status and the whispers of exclusivity.

Art's "Placement": The Handbag's Master Stroke

Consider the "gallery," this temple where the sacred paintings are displayed. The speaker in your modern discourse reveals its secret. The gallery owner does not merely sell the art; they place it. They choose who is "worthy" to possess the piece, preferring the "important clients," the museum benefactors, those who will add to the artist's prestige and scarcity, not merely some passerby with coin in hand.

Is this not the exact cunning of your "luxury brands"? They too do not simply sell their handbags to all who desire. Nay! They cultivate an aura of exclusivity. They have their "VIP lists," their "early access" for favored patrons. They open dazzling boutiques in select cities, making their products a pilgrimage rather than a mere purchase. They limit production, not just by material scarcity, but by deliberate design, creating waiting lists that fuel desire and desperation. They, too, "place" their coveted wares, ensuring they land in the hands of celebrities, influencers, and the wealthy elite – those who will carry the bag like a banner of status, thereby raising the perceived value of every similar bag sold. The handbag, like the painting, becomes a social signal, its worth amplified by its carefully curated ownership.

The Murky Calculations Beneath the Emotional Veil

And herein lies the profound silliness, the spiritual emptiness of this market. They preach that art is "pure," born of passion, its price a reflection of genius. Yet, its very survival and escalation in value depend on a murky, calculating game of:

• Scarcity Management: Art's value soars not just from its beauty, but from its rarity. Galleries strategically limit availability, ensuring paintings are removed from the market (especially into museums) to drive up prices for what remains. This is no different from a luxury brand limiting its production runs to create frantic demand.
• Reputation Building: The artist's journey from coffee shop to solo show to museum exhibition is a deliberate ladder of prestige. Each step is a carefully managed public relations campaign, designed to inflate perception and justify ever-higher prices. Is this not the same as a luxury brand paying celebrities to wear their bags, or meticulously crafting an image of heritage and craftsmanship?
• Gatekeeping and Control: The gallery, the dealer, the auction house – these are the gatekeepers. They control access, information, and the flow of art, dictating who gets what and at what price. Their decisions are not based on artistic merit alone, but on market stability, investor confidence, and the prevention of "flippers" who might disrupt the careful calibration of prices.
• The Illusion of Investment: The art world tantalizes with stories of vast returns, of a $10,000 painting becoming worth $200,000. But this is a mirage! As revealed, such spikes are often unsustainable, driven by speculation, leading to crashes and ruin for later buyers. It's akin to a fleeting fashion trend where yesterday's must-have luxury item is tomorrow's discounted relic, losing value faster than a desert mirage fades.

A Call for True Value

Oh, people of this age! Do not be swayed by the smooth talk of "art for art's sake" when the hands that guide its market are counting every coin. The business of art, far from being a sublime exception, is but another manifestation of man's endless quest for status and gain, mirroring the very mechanisms of your material desires, even down to the coveted handbag.

Let art be a vessel for the soul, a reflection of truth, a source of profound human connection. But do not deceive yourselves that its valuation in your markets is any less a product of human stratagem and calculated scarcity than the most coveted piece of leather. For in the eyes of eternity, true value lies not in what can be hoarded or flipped, but in what enriches the spirit without demanding a soul's price.