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
-
How often do you have a plan for how you are going to spend your day but you aren't able to complete the tasks on your plan because of unimportant tasks, interruptions, or your own procrastination? Wouldn't it be great to be able to manage your schedule and your time while avoiding, or at least controlling, these time stealers? Learn the strategies to manage your schedule while still handling interruptions and demands on your time.
-
We define Lean as the systematic elimination of waste through a continual effort to decrease inefficiency; the lean leader strives to create a more efficient organization. Lean leadership is a philosophy. It is a consistent way of thinking and being in your role as a leader. The focus of this approach is on raising new leaders and help their team embrace a culture of continuous improvement. Learn what we mean by lean leadership style and its principles.
-
David Kolb produced this popular model for learning in 1984. The model suggests four stages of learning which most learners go through in order to learn effectively. Leaming is itself a process of change. Something is added to our perception and prepared us for the next impression, which will change our understanding yet more, however minutely. The Kolb contribution is a significant one because it practically equates change and learning.
-
Time management is the process of planning and exercising conscious control of time spent on specific activities, especially to increase effectiveness, efficiency, and productivity. The best time management techniques improve the ways you work. Time management refers to managing time effectively so that the right time is allocated to the right activity. Learn more about the five steps for effective time management viz. study, identify, analyze, decide, and implement.
-
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.
-
Charisma is a certain quality of an individual personality, by virtue of which he is set apart from ordinary men. Charismatic Leader gathers followers, through dint of personality and charm. Understand the meaning and concept of Charismatic Leadership and the qualities of a charismatic leader. Gain an understanding of the advantages and disadvantages of using charismatic leadership. Finally, explore the difference between charismatic and transformational leadership.
-
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.
-
Teams are part of the modern organizational culture. Whether you are a team leader or a team member, having a better understanding of how teams work, and being able to identify where the team is in the process, is a critical part of ensuring the team is ultimately successful. Start with the basics and understand what a team is and what role they play in an organization.
-
Understanding of how individuals of different cultures interact with each other is very important. Not all individuals can adapt to the leadership styles expected in a different culture whether that culture is organizational or national. In a fast-paced business environment, developing a richer understanding and sensitivity to other cultures is a skill that leaders must possess. Learn to be effective in a cross-cultural setting.
-
At times like this, more than ever, it is essential that the organizations appreciate the human resource management skills required to successfully handle the transformation of industry and create an innovation culture. Read more to understand, how as a manager you can help in cultivating a culture of continuous innovation and adaptation to change.
