The most valuable business asset is your product
Technology landscape is changing – what about the business strategy?
Every year we can see new technologies, processes and methods popping up, forcing and encouraging companies to validate their activities to determine if these new variables are reasonable or viable for their businesses. To be able to make the right validation and decisions, companies have to, as a starting point, clearly understand their own operation and business strategy. In other words, fully understand how these changes in technology landscape affect their business and what actions are needed and changes to be made.
Benefits from investments
Companies have invested a lot in production, production logistic, financial solutions, better customer information management, digitalization (partly starting now) and in many other areas. The overhanging question is: have the investments lead to expected business influence and outcomes? Have the changes resulted in better profitability, etc.?
The role of Products in a Business Strategy?
Many companies have problems with their products. They have too many products. Due to an extensive product portfolio, the workforce cannot properly manage them all. A lot of special work is needed in order to enable sales, and further on, delivery of “non-standard” products to customers. Due to this product variety, all the aftersales transactions – during the active service phase – comes with an elevated cost, including the risk that it is not at all clear what has been delivered to customers.
The question is not about whether companies have built a lot of processes to properly support their business model. The question is, what is the real core strategy of a company:
- to be a company who is known for the ability to customize all what customer ask for, or
- to be a company known as the best company in the market, whose products have the highest quality, easy to buy, run and maintain. Simply, having the best customer experience in the market.
PRODUCT is key to success
Companies should put much more effort to Products to be better in the future. It is coming more and more important when change cycle in industries are going to be shorter. With limited product portfolio, companies are more agile and powerful react for changes in the market and keeping profitability.