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September 24th, 2014

9/24/2014

Profit From Ecological Knowledge
Greening for sustained high growth

From the ancient Greeks we learn that the word “ecology” is the study of the environment and “economics” is the management of the environment.

Business management talks about managing internal and external eco-systems.

The internal eco-system of the business is made up of stakeholder relationships that include leaders, managers and staff.

The external eco-system of the business is made up of stakeholder relationships that include investors, suppliers and customers.

A further complexity arises in business management where we now have to understand the environmental impact of business activity. Sustainability is on the lips of business leaders who see the genius of human innovation creating new business opportunities. This happens when technology changes consumer mindsets.

Independent Consumer Power Producers
We are fast moving towards intelligent homes and commercial spaces powered by electricity generated by on-site solar and geothermal systems. These systems can sell and buy electrical energy from the commercial power transmission corporations. The problem of winter storms causing power outages may become a thing of the past.

The internet of things will allow our home and office appliances and equipment to decide when to switch on or off based on optimum price for electricity. Our intelligent cars may help us decide meeting schedules by working out the best travel time to avoid traffic congestion.

Rural, Town & City E-Commutes
Currently if we can’t make it to a physical business meeting we can tele-commute using skype, face-time and any number of voice over the internet protocols.

Cloud computing allows multiple devises to access business management and marketing systems from anywhere in the world. In India computer engineers and technologist are now able to live in their home villages and connect with the Information Technology companies they work with in Bangalore that in turn are connected through the internet to client corporations in the United States.

Today’s small businesses can serve a global consumer base simply be utilising cloud based business computing systems to deliver products along a supply chain from manufacturer to consumer using shipping, courier and postal services.

The Curly Light Bulb Moment
When consumers ask questions like, "'Tell me if these curly bulbs will help me save money?"' we know that the green economy has arrived.

Save energy is a mantra that promotes energy efficient products. As the numbers of the global middleclass grow, demand for more and more consumer goods will grow. The quantum leap in technology such as hologram computing and 3D printing will make it possible to meet this exponential growth in consumer demand.

On-line Providers
Amazon started as an on-line book distributor providing on-line purchase of physical and E-books. Today it is essentially an on-line virtual shopping mall selling a whole range of products in competition with warehouse style departmental stores and physical malls. Chat rooms and social media video systems now allow for human social interaction the same way as cafes and restaurants.

Universities and consultants now provide information and knowledge through on-line lectures, seminars and consulting advice.

Continual “lifelong learning” has replaced “lifelong earning” as the new normal.

Work and job functions are evolving and if we do not acquire new knowledge and skills we may become obsolete.

On-Demand Cloud Economy
Real change and permanent cost savings only happen when there is a commitment to sustainability throughout the entire business organization. Business planning has to focus on promoting a culture of competitiveness based on embracing change and encouraging innovation. Cloud computing has transformed the internet into a virtual shopping mall.

We now have an E-commerce economy that is worth around US $1.5 trillion. No business is too small to benefit from this economy.

Siddha Param
International Business Consultant
Reboot your business plan for sustained high growth

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September 18th, 2014

9/18/2014

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Your Brand Your Market Identity
Getting consumers to know you

Your brand is your identity and intellectual asset.
What does your brand represent in the market?
How valuable is this asset to you?

Engineering Excellence
One luxury car company focused on designs that emphasised the ultimate comfort in driving. Another luxury car company emphasised experiencing the ultimate driving machine. They have each carved out a niche of loyal customers and fans. So a brand can grow by effectively creating a niche market as opposed to competing with potential competitors for the same market.

Precision Crafting and Technology
The brand should tell us where it comes from like Swiss master watch craftsmen giving consumers precision in the form of an exquisitely designed fashion piece around your wrist. Japanese watch makers were able to enter the watch market and carve out a niche by emphasising precision time using state of the art watch technology. When a company tells a story around its commitment to quality they build consumer trust in their product and service.

The Source for Consumer Experience
Established brands are being effectively challenged by new brands offering innovation and something new. Consumers are now savvier researching what’s new in the market. This has resulted in product and service life cycles getting shorter with competitive businesses frequently offering new innovations. To remain competitive you must therefore continue to innovate. New businesses that offer improved consumer experiences can now enter the market and establish their very own niche market.

Single product small businesses can compete with big corporations offering multiple products. Hence a resourceful sticky bun baker created a niche market competing effectively against established multi-product bakeries and cafes by setting up a street stall nearby promoting themselves as the source for local, organic and fresh.

Your Name Your Brand
You too can brand yourself as a specialist who delivers an excellent single product. Not too long ago an establish North American company offering a range of home products ceased business. One of their popular salesperson with decades of customer care experience joined a smaller company selling a smaller range of products. He was able to leverage his personal reputation with past customers to get new business for this smaller company because his name had become a brand representing reliability and service excellence.

Thinking out of the box is the key to successful marketing. The challenge for new brands is to tap into the existing supply chain through non-traditional means beyond trade shows and traditional marketing. They need to offer something different to the consumer through these channels.

Consumer behaviour has changed and is continuing to change as global economic forces reshape consumer thinking and lifestyles.

Staying genuine is the key as ultimately it is trust and not necessarily pricing that builds loyalty and repeat sales. Changing the presentation and differentiating the new brand in town from the old established brands are some of the ways to establish an independent and distinct identity in the minds of consumers. Tapping into the changing consumer demand is therefore important in establishing a new brand in the market successfully.

A social network around the new brand can create advocates that promote the new player in the market. Spend time on a marketing plan that leverages to the maximum the connections you have in the community you serve.

Siddha Param
International Business Consultant
Reboot your business plan for sustained high growth

Do share this article on social media and with those interested

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September 11th, 2014

9/11/2014

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Creating Collaborative Business Networks
Profiting from a networked business reality

Collaborative networks reduce organizational hierarchies. Such networks are created by identifying and promoting communication networks that benefit both the individuals involved and the business as a whole.

To be commercially effective over the long term, the individuals involved in a collaborative network must experience a personal sense of achievement. There must also be measurable business gains that justify the investing of time, effort and resources to promote collaboration.

There are two types of collaborative networks that can be developed. One is “internal collaborative networks” between different divisions of the same business. The other is “external collaborative networks” between businesses that may be competitors.

Internal Collaborative Networks
This allows for a better utilization of both financial and human resources.

We see design collaboration in the use of common parts for different models of cars for example. This can lead to cost reduction. But when a common part is defective, the trade-off in reduced manufacturing cost can be a larger number of recalls for a wider range of car models.

External Collaborative Networks
This can allow two or more competitors to pool resources that lead to these businesses dominating the market.

The two major smart phone producers may have been suing each other over patent rights but this did not stop them from collaborating in the manufacture of the technology components that are inside their differently designed products.

Today’s software and communications technologies allow all businesses big or small to leverage on intellectual capital and market knowledge to create and deliver quality products or services worldwide.

Creating Collaborative Networks
Many businesses are not aware of the “informal collaborative networks” that are available for them to tap into to create better products or services and develop a stronger market presence. The people we meet at business exchanges, chambers and meetings may potentially be strategic partners who can be a part of our collaborative business network.

Information technology has created more networked markets that allow individual specialist across the industry to communicate seamlessly. The question then is, “Are you effective in utilising all the knowledge and skills of the human resources at your disposal for maximum business benefit?”

An external consultant can work with you to objectively identify collaborative networks that could be developed to promote sustained high business growth.

Collaboration between human beings can be both exhausting and invigorating. It is therefore important to manage the human relationships involved in a manner that promotes sustainable creative activity that leads to greater innovation and competitiveness.

Siddha Param
International Business Consultant
Reboot your business plan for sustained high growth

Do share this article on social media and with those interested

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September 04th, 2014

9/4/2014

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Responding To Growth In E-commerce
Connecting with cyber consumers

The on-line community is now a consumer market that ranks with the top 3 national markets worldwide. The e-commerce economy is growing at a faster rate than brick and mortar businesses.

However many on-line individuals do still visit brick and mortar stores. Human beings are also social beings. We are still willing to make the effort to get out on the road and head out to a shopping destination. Especially in winter, a brightly lit mall may just be the tonic to avoid “cabin fever”.

The website in such a scenario can play a dual role of providing information with the option to purchase on-line. The buying decision could be triggered on-line even with customers wanting to visit a physical store to see, touch and examine a product before concluding a sale.

The future may just see smaller stores with larger warehouses ready to deliver just on time to the store.

It is important to note that e-commerce does not remove the effectiveness of “word-of-mouth” recommendations of friends or trusted advisers. The challenge then is in creating web platforms to amplify these recommendations that lead to sales.

We do also need to know how to use traditional advertising like meetings, billboards, newspapers, television, radio and flyers to re-enforce the on-line message.

The Cyber and Physical Markets
Convenience, trust and pricing are the factors that physical markets have always used. This needs to be transposed onto the on-line world. We need to work on communications strategies that work well in each medium electronic and physical with cutting edge technology re-enforcing the traditional medium.

Providing convenience can mean making the customer aware of the fact that making a buy decision on-line reduces stress, time and cost involved in taking immediate action.

Building trust comes from making sure the customer believes the information provided is from a reliable source. Providing access to consumer feedback over time builds trust. Testimonials from satisfied customers are good ideas to work on. The promotion of mavens and consumer advocates is another avenue that should be developed.

Pricing strategy is a critical component for business planning when developing an e-commerce business. At the end of the day the strategy must promote sales that lead to profit. To understand pricing requires an understanding as to where on the supply chain will your business operate in.

For long term continual success e-commerce requires a presence that consumers notice and inter-act with very much like they do with traditional physical stores. Research the information pertaining to your industry or service and plan based on facts supported by market intelligence.

Siddha Param
International Business Consultant
Reboot your business plan for sustained high growth

Do share this article with those who will be interested

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