Tutor profile: Pujan V.
Describe the concept of product centricity and customer centricity and elaborate on the suitability of the approaches to the business strategy.
Most commercial enterprises’s target is to increase the value of the corporation, to increase shareholder value. Make more profits. Performance superiority and operational excellence strategies focus more on, coming up with the block buster product or service to market that makes us steps ahead of all of our competition. Figure out ways to bring that idea to execution. Coming up with a brilliant idea that puts us steps ahead of all of our competition, and then figuring out ways to bring that idea, that product or service to market. So it's conceptualizing it, it's developing it, it's manufacturing, distributing, marketing that idea. That's what business is traditionally all about, that makes the ground of product centric behaviors of an organization. Customer centricity requires us to look ahead, figure out who the valuable customers will be and do things for them to help them recognize that we have their best interests in mind. Those are the kinds of incentive structures that make the truly customer centric brand and some of the organizational designs associated with it. That's what customer centricity should be all about. One of the great stories along these lines is that of IBM. IBM, used to be one of the ultimate product-centric firms. They were just the best at coming up with, and developing certain kinds of products, business machines, computers and so on, better than anybody else. But they had a revelation in the mid 1990s, that they could actually make more money being a trusted advisor. Instead of telling customer to buy our machine, telling a customer what set of machines and services to be buy. That there are actually higher margins, especially as computers and other information technology equipment commoditizes, they can actually do better being a solution advisor. And slowly but surely IBM spun off many of its business machines. They no longer manufacture personal computers. Their presence in most other hardware areas has diminished. But where they're making their money today, is from being a customer centric solution provider. And that kind of expertise doesn't commoditize nnearly as much as any one product might. And so that idea of moving away from just selling products, to being a full scale solution provider is a major change in the last 15 to 20 years.
Describe the process of developing a venture from an idea to a scalable operating organization
The complete journey can be put briefly as follows. Pick an idea, which would have a specific expectation in result. Test the accuracy of expectation by implementing the idea at a very low efforts and check the results. Aka minimum viable product. Iterate with necessary improvements and come up with a finalized product or service. Build the most important feature to a valuable extent and turn the focus towards marketing once the quality of product or service is achieved acceptably. As the customer community begins to develop, maintain a customer feedback pipeline to keep in direct contact with the market. Clearly classify the business operations into departments and create a precise system of accountability. Ideation is one of the largest domain from the perspective of diversity. Practically there's never lack of thoughts and ideas, the bottleneck comes in testing them out. To avoid running out of capital and suffocating from lack of required reserves, minimize the time and cost efforts in the minimum viable product while bringing the hypothesis to a conclusion. Knowledge of industry of interest and the challenges being faced there is a crucial requirement to be understood.
Definition of Brand, a company as an entity.
Just as an artist, a creator creates art and that, to him/her is significant. Important journey lies in communicating that vision to the receptor of the artwork. Say a beautiful fashion design. The value of that piece of art has to be perceived and understood by the demographic that is wearing it. The customer. The domain of creativity lies in communicating the same value the creator has to the recipient of the product. Say there is something written very will in Mandarin, but the person reading it will only see imagery if the language is not known. Language gap at least acknowledges the reader of his unawareness. Branding is a little more abstract. There are plenty different theories and studies, one can invent own methods, that is what the innovators in business do. Think of each and every brand as an entire language. The brand that indeed performs well is the one that successfully communicates to and with the people. Which can show the recipient how to look at certain product when they look at it, "The Brand". One can either sail on that wave and make brands in harmony with the language people already know, or invent their own. It's what makes building a new brand from scratch a really big deal. Which is why businessmen sometimes feed on the franchise concept. Both can create money more than you need but the legacy lies in the brand, and building it on your own involves volatility and doubts of success. Telling people the lifestyle or habits they did not know , and making them use it everyday. It's the inertia of change in people's behavior that makes it hard to make innovation perform. Habituation is a real deal. Forced discipline eventually becomes a habit. Making someone follow something takes time, and once that happens, making the person not follow the thing takes another stack of efforts. Branding, couple with marketing does exactly that.
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