Just a recap, we learnt in my last update, the different ways to harness the new age machine to enhance human experience and their related processes and analysis. In this excerpt we are going dwell upon the different ways to harness the new age machine in enhancing Market competitiveness.
The loom led to excessive clothing, the steam engine to excessive travel, and the factory model led to excessive refrigerators and televisions finding their way into homes all around the world. Before the revolutions that spurred them, these products were rare luxuries. So the concept of excessiveness is really quite simple, and old – as prices go down, demand goes up. As the new machines drives the price down, markets of excessiveness will be established, driving sales up to unimagined levels. The question now becomes, will you seize the advantage with the new excessiveness that is available or fall victim to it?
In the past, we have used raw materials, new machines, and hybrid business models to support them to create an unprecedented excessiveness that can in turn make it easily for all luxury goods to be easily available for common masses. A very good example of this excessiveness created is the need for heart surgeries that has pushed organizations to throw excessiveness and innovations in and eventually bring the costs down and thereby make it readily available for common masses. The results delivered in the case of cost reduction in heart surgeries is nether by magic nor by cutting corners. Yes, there are salary disparities between India and other countries, but these account for only a fraction of the cost difference. The vast majority of these dramatic savings come from the digitization of key processes. The business models considered here were purely hybrid, viz. some portions must of course remain highly physical – human – centric work performed by medical professionals on an actual patient – whereas others can be significantly digitized, such as monitoring patients and machines. By Breaking down the processes of surgery preparation, operation room management, and intensive care unit operations into discrete processes and experiences and then apply new technologies, hospitals cut costs to the point that it now can provide high quality care to many more people. In this instance, digital is literally saving lives.
The key point to note here is that setting a new price point is not a one-time thing but a continual process. As once automation takes hold of your products creation and delivery transition from being human- based to machine based they will become inherently the centric, and thus able to benefit from the general consensus that the speed and capability of our computers doubles every two years.
At this stage, it’s imperative to wonder how to kick start quickly on the excessive thought process. Below are seven approaches that might lead you to deliver positive results.
Focus on disruptive thinking
Organizations should now focused on new / disruptive thinking, it should keep its eyes and ears open to new companies that are coming after your business. The Key is that this team should be empowered to take an objective view of the tech-based companies that are looking to bring excessiveness into the industry and potentially eat your pie of business. In such cases, you can clearly view that the industry is clearly coming for that portion of your company and you need to marshal an appropriate response right away – whether it be to buy, to build, or to partner to address the threat.
Analyze areas of weakness
The new generation are key to arriving at where the current organization sucks. These fresh thinking blokes can offer a unique and highly valuable point of view regarding your traditional ways of doing business. As a best practice, a sub-group of these fresh thinkers should be focusing on weakness that can put your company out of business
Plan for a future cost reduction model
Leadership must ask had, even painful, questions about the implications of current products and services moving from expensive and rare, to cheap and nearly available everywhere. Of course, nothing will be truly cost less, one way or another, you need to find ways to grow revenue. However it’s healthy to have organizations start conceiving its products and services as the sum of their parts, which will add up to a certain price. All these parts have been be analyzed from a digital perspective to make them costless so as to bring down the cost of the overall product and service.
Innovative profit making
The question of how do we price our products differently, aimed at very different customer segments and entailing very different economics of margins. It definitely does worldly good for companies to start thinking as to how to bring down the cost but still be able to make adequate profits.
Search for Technical prowess
The movement comprises of individuals, teams, and companies enthusiastic about building new devices that live at the intersection of new functionality and low cost. We find such movements around individuals who while holding down their day job, are itching to really focus on their weekend avocation. Don’t look upon such individuals as uncommitted to the work at hand; rather, harness their talents, energy, and passions by putting them in places and positions in which their personal innovations can become your corporate innovations.
Personalize Product line
The key to focus on personalizing any product or service to your customer opens up an extremely new horizon of doing business. This is not a function of scale. It’s simply a function of applying the new machine to establishing one-to-one connections with your customers. After all, this had been the first goal so to say, the entire value chains and customer value propositions were focused on this pursuit. For instance, personalization is the new battleground in the apparel industry as we had seen in one of our last post.
Apply Digital Thought
The lowering cost paradigms is all about finding dramatic cost savings to open new markets. How best to find these breakthroughs and apply new technologies of AI to the parts of the sum (overall). It was advanced in past that almost every work activity could and should be broken down into discrete tasks and measured in time, motion and output. More important, performance levels and best practices could be applied to repetitive tasks to make them efficient. This will more or less drive competitiveness at your company.
Applying the above seven levers and making sure organization are actively pursuing each one of them will keep them active, always in search for best practices to enhance and improve their products and services while keeping the cost lower. This will result in obviously at the end of it an enhanced market competitive stature of the organization.
Stay tuned…. Part VI of this foray, we will continue to dwell upon the different ways to harness the new age machine in by and large the innovation quotient that we need to invest upon.
Authored by Venugopala Krishna Kotipalli