Value – Key Driver of Change
Productivity is defined not in terms of the number of goods produced, but in terms of value-added per employee. Customers don’t really buy goods and services but in fact, they buy a value - something they value. The future is all about tangible products fulfilling intangible needs. Ideas like this can transform a business and provide them a competitive advantage to thrive in the future.
People Look for Intangible Benefits
People, as Theodore Leavitt pointed out long ago, don't really buy goods and services. They buy a value - something they value. The customers want the goods or services to be accompanied by intangible benefits associated with availability at the right time and place and to express the values they require.
On the weekend of the Christmas holiday, David had a breakdown with his electricity. He took a service from Urban Clap and the person diagnosed and corrected a very small fault which had put the central heating out of action, and put it right. On that day Urban Clap was not selling them a service or a spare part, they were selling peace of mind on a festival day. That is the value that was given even when it’s not needed. It’s the confidence that someone will come when David needs one.
The enterprise providing the value is able to share economics with the consumer by using as little matter as possible in the preparation of the goods or services. So automation and materials technology keep down the amount of processing and actual stuff that has to go into the provision of goods and services.
The idea of “No-Matter”
Automation and materials technology keep down the amount of processing and actual stuff that needs to go into the production and provision of services. Products will be produced more quickly and cheaply, and with less final bulk and weight. The phrase “No Matter” encapsulates all this competitive advantage and value add. 'No matter' as a concept also includes the role of the disposable, though we have to watch its impact on the environment. The idea of no matter also covers the idea of the invisible purpose behind a sale.
For example, the invisible purpose behind a drill is not the selling of drills as such, but rather to sellability to make holes. If you use a laser drill, you are very much into the realm of 'no matter', for the laser produces holes which are by definition the absence of matter. This is all a question of tangible products fulfilling intangible needs. Ideas like this can transform a business. It is all about the effectiveness of outcomes rather than the efficiency of inputs. So the physical and the intellectual blend in the marriage of the changing mindset and the future mindset.
Mass Customisation
Next is the paradoxical idea of 'mass customization'. This is providing the customer with precisely what he or she requires, such as a garment to suit a bulky or a slender frame. Providing something that is non-standard yet can be produced as goods of standard size, weight, or other requirements. The technology now permits the non-standard to be produced on the standard line. Just a change of the computerized instructions and the trick is performed. Now customers don’t want to wait for something that is made to measure.
The same technique of mass customization can be used to provide cultural variations required in various parts of the world without setting up a special production line. The mass economy provides the benefit of scale; mass customization allows for the differentiation and individualization of requirements.
Future Trends and Change
Not so long ago you can imagine how some traditional business houses would have resisted such changes in the mindset and approach. Managers today need to group the changes which have had the biggest impact on business, industry, and society. Types of technological development have to be focused on the understanding of futurology. They can no more stick to what they know we are good at and so on. There is an emerging need to approach the present from the standpoint of the future. That's how all these developments have occurred- so much so that we find it difficult to realize the amount of resistance they initially caused.
Many of these developments are at a relatively early stage, so there is much more to follow. It is essential that managers who are going to have to cope with such changes see them as a part of their functions to educate their workforces to understand the nature of the changes we can expect, of the world in which we live and the future we can create.
Related Links
You May Also Like
-
Generating Ideas using Brainstorming
The brainstorming technique was developed by Alex F. Osborn in 1957 and brainstorming means where a team of members generates a large amount of alternative fruitful ideas on a specific problem without any criticism and then evaluates each idea in terms of their pros and cons. Brainstorming techniques fall into four broad categories: visioning, exploring, modifying, and experimenting.
-
Four main areas in an organization that need special focus when we discuss the change in an organizational setup are organizational structure, technology, work environment, and the people. Some people call it a process, system, and people. Change in an organization includes adapting to change, controlling change, and effecting change.
-
Stress is an essential part of our life. No one can live without stress. Stress can be beneficial as well as harmful. Stress as a positive influence adds excitement and hope while as a negative influence it can result in destructive feelings, anger, and depression. Although the general orientation to stress is to consider unfavorable outcomes, yet one must have observed that stress experiences may also facilitate the development of effective and varied coping behavior, increased personal resources, and lead to a sense of competence in development. Stress at a moderate level is not only inevitable but may be useful for physical and mental well-being.
-
Recognizing Stress & its Sources
As an individual, you almost certainly know what stress feels like. Stressors are events or situations to which people must adjust. Stressors may be physical or psychological in nature. The level of severity of stress is determined not merely by exposure but the intensity, duration, and frequency of stressors. The sources of stress are many. They arise from multiple areas both with the individual and from the environment.
-
This style is characterized by leaders making decisions for others and expecting followers to follow instructions. The directive leader is adept at giving instructions, setting expectations, and establishing timelines and performance standards. However, it is possible for the same leaders to display both directive and supportive behavior as per the demands of the situation.
-
Productivity is defined not in terms of the number of goods produced, but in terms of value-added per employee. Customers don’t really buy goods and services but in fact, they buy a value - something they value. The future is all about tangible products fulfilling intangible needs. Ideas like this can transform a business and provide them a competitive advantage to thrive in the future.
-
Stress is a product of the busyness of modern life. It has assumed grave dimensions ever since the emergence of industrialism. In fact, stress is a natural, ongoing, dynamic, and interactive process that takes place as people adjust to their environment. Stress can be brought about by positive or negative life events. Distress can cause disease and eustress or positive stress can promote wellbeing and increased productivity. Learn to recognize and be responsible for your stress, and learn the ways to manage stress.
-
Crisis leadership is a very important part of leading in today's world. The skills a leader needs in order to guide people during a crisis are different from the skills needed to help a group grow. Are you a good crisis leader? What is your leadership style in case of a business crisis situation? A business crisis can test the strongest of leaders, read this article to explore how to ensure you’re ready to take action and weather the storm when one strikes you.
-
Team Foundation in Forming Stage
This is the first stage of team development. This is the stage when the foundation of the team is laid. During the Forming stage, team members have a high dependence on their leader for guidance. Learn the practical strategies you can use during this stage to help your team develop into a highly effective performing team.
-
Evidence of the medically damaging symptoms of work stress necessitates applying the treatment of stress management. Stress management is increasingly drawing the attention to the management experts not only as a remedial measure but also as a way to resource management. If the workplace can be made a little more lovable the increase in the achievement of the organization may be much time more. If group stress can be removed by introducing group discussions and recreational facilities a long-lasting team spirit may get developed.
