Archive for the ‘Business Model’ Category

The Hat Trick

Tuesday, May 25th, 2010

The thrill of victory

One of the best things about my work is what my colleagues and I call the “hat trick”.  In sports like cricket and hockey, a hat trick is accomplishing a feat three times in a contest.  I’ll explain what a hat trick is in my world and why it’s thrilling to pull one off.

Our mission is to help clients enable their customers to enjoy richer, more satisfying service experiences.

A hat trick is when we not only help clients to better meet the needs of their target customers, but also enable them to increase customer loyalty and revenue. We do all this while also cutting service costs — sometimes up to 20%.  Almost every assignment offers hat trick potential.

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“Get a Load of Our Stuff!”

Wednesday, November 4th, 2009

The Wall Street Journal/MIT Sloan Management Review published a disturbing paper on why Western companies are failing to transform the Bottom of the Pyramid into a booming consumer market.  The author argues that the base of the world’s economic pyramid – where people live on $2 a day or less – isn’t panning out as a market because potential consumers “haven’t been conditioned to think that the products being offered are something one would even buy.”

To support his argument, he cites the case of PUR, a low-cost water purification system developed by Procter & Gamble. The product provides the obvious benefit of affordable clean water where the risks of drinking contaminated water are high. But curiously, PUR* achieved low market penetration rates in test markets.

Why would consumers reject a product as salient as PUR? The author contends that Western companies simply haven’t created demand among low income consumers. “Companies must create markets—new lifestyles—among poor consumers,” he insists. His prescription is that Western businesses need to do a better job “conditioning” low-income  people to be better consumers.  Really?

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Tell Us One More Story, Don

Thursday, August 27th, 2009

“The formula is simple and it’s reduced to four words every kid in the world knows: Tell me a story. It’s that easy.” -Don Hewitt

Last week, Don Hewitt, founder and long-time producer of 60 Minutes, died.  He’ll be remembered, among other things, as an impresario who created one of TV’s most successful programs.  There’s a potent lesson for all of us in his “storyline”.

Hewitt’s vision and instincts culminated in a new, highly successful form of entertainment known as the “news magazine”. As important as that accomplishment is, his greatest feat may be his proving that story-telling is the key to success, not only in TV, but in every medium.  We, in business, have much to learn from Hewitt’s dogged pursuit of the story.

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Virgin America Transforms Air Travel

Wednesday, May 27th, 2009

Virgin

You never know with these things when you’re trying something new what can happen. This is all experimental. ~Richard Branson

Over the years, there have been surprisingly few breakthroughs in the airline customer experience - until recently. Sir Richard Branson’s venture into the U.S. market, Virgin America, (VX) is redefining air travel by providing passengers with a fresh, distinctive on-board experience. The carrier is less than two years old but it’s quickly becoming a template for what’s possible in the future.

The choices VX is making demonstrate a “customer experience mindset” that’s all too rare in the industry. It’s evident that the VX team devoted their attention to passenger comfort and convenience. Features “baked in” to the customer experience include seats with power-outlets and USB ports. Cabins in their new A320s have soft mood lighting.

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Restructuring is What’s Next

Monday, November 24th, 2008

Nearly every business we’re working with is re-evaluating if not totally rethinking their economics.  Businesses in every sector will have to revise if not fundamentally restructure their business models. 

Companies have begunb scrutinizing their value chains from the bottom up and the top down because none of our customers has the extra time or money to be wasted by underperforming partners or suppliers.   The smart  firms have already started this process in earnest. 

Organizations we work with are mustering the self-honesty and diligence to impose greater process discipline and rigor while, at the same time, becoming “turn-on-a-dime” adaptable.  To succeed in this low-demand cycle, businesses will have to focus on what matters most to their customers and relentlessly discard what’s leftover. 

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Virgin Connect Invades Russia

Thursday, May 29th, 2008

Sir Richard Branson’s Virgin Group has announced it will team up with Swiss telecom Trivon to launch Virgin Connect in Russia. Virgin Connect will deliver services over a WiMAX network that covers 32 regions throughout Russia. The venture will offer broadband, voice and other services.

Branson said, “I am delighted to announce Virgin’s first business in Russia – Virgin Connect. We have entered Russia with Virgin Connect because we believe the potential for growth in the Russian broadband market is extremely exciting. Virgin‘s fundamental business principle is: ‘Delivering an outstanding customer experience’.”  He added, “We will provide a fresh and human customer experience to Russians and believe that Trivon is the ideal partner to deliver this. Virgin Connect plans to gain a market share of 10% within 5 years in this promising market”.

Trivon, founded in ‘04, has bought up several Russian communications operators. They grabbed up the 5.7-5.9GHz spectrum licence across Russia and also acquired a 5.9-6.4GHz spectrum in some regions to set the stage.

It’s a shrewd move. The venture wants to exploit a fragmented, underserved market which only has a 5% broadband penetration rate.  The Russian market still suffers from the legacy practices of their monopolistic, post-Soviet era culture.

The company didn’t provide details about its service model yet but judging by the Virgin Group’s progressive approach to consumer services in other verticals, they could reshape the services industry in a region that lags far behind the rest of the developing world.  I’m betting on Virgin’s succeeding and, in any case, this should be interesting.  Stay tuned…

Build a Better Smartphone

Sunday, April 27th, 2008

Don’t miss today’s NYT piece on the showdown between the smartphone heavyweights –  R.I.M.’s Blackberry and Apple’s iPhone.  The battle is pitting competing models that evolved along two different paths, and each is scrutinizing the other as the market grows and stratefies.

Both field generals – Lazaridis vs. Jobs – are brilliant strategists, but each has a unique vision and problem solving style reflected by their respective organizations and their products.

R.I.M. has long appealed to business users who demand relentless connectivity; the company shaped the category due to its combination of functionality, stability and security.  Those features were enough to give R.I.M. a critical mass of market share which has grown incrementally.

Then came the iPhone with its silky touchscreen and utter seamlessness.  It was a category killer from Day One. I’ve never met a user who wasn’t enthralled.  The user experience is the message.

What’s next is their battle for the hearts and minds of business users in the rarified 3G space.  Both companies will likely co-opt the best features of the other.  (Look for R.I.M. to come up with a niftier interface while upgrading its functionality and security in the 3G world.)

This battle couldn’t be more fascinating. I’m betting – and this is a very safe bet – that the real winner will be the consumer.

The “Learning Hub”

Thursday, April 24th, 2008

What’s next in corporate education? Our agile corporate learning programs have evolved over the past 5 years through successive approximations, i.e. experimentation. Our current framework is that of a Learning Hub (LH) which is designed to promote on-going, self-directed learning among our clients’ workers at all levels.

Why this approach—why now? Simply put, we’re seeing corporate learning increasingly move away from a traditional skills training-passive learning approach to more of a performance engineering process, and for good reason.  Traditional training doesn’t build the capabilities that today’s market leading companies need to succeed.  Moreover, it doesn’t address the needs of sophisticated learners in the Knowledge Economy.

In contrast to conventional training, our efforts are directed at improving overall organizational capabilities while stressing frontline performance — connecting performance to the desired business impact. We’re aiming at driving performance improvement through all levels of the organization.

In addition to building the skills, knowledge and talents needed to improve performance now, we help clients anticipate the skills, the knowledge, the talents necessary as consumer demands shift over the 18-24 months.

The LH isn’t a training center, or a set of dedicated classrooms. It’s conceptual — a web-enabled learning environment that provides access to a wealth of knowledge resources–both internal and external. It entails on-line learning, peer collaborations, links to outside resources, and partnerships with academic institutions, all intended to deliver knowledge that is necessary at the moment the employee needs it.

The LH enables leaders to be able to emphasize the importance of learning to the success of the organization. It enables our clients to come together around a shared educational platform. This formal approach to on-going learning enables different units to come together which is one of those key business challenges that organizations are dealing with today – that is, trying to get different work groups to collaborate.

Technology is enables access to and connectivity with resources that couldn’t otherwise be reached in person. It also allows us to do things such as simulations — a lot of things that we can practice, which we would not be able to do in the operational environment, are enabled by technology.  This is aparamount in a world where workers are distributed across continents.

And we bring technologies that simulate the work setting. The result is there’s no demarcation between the learning environment and the work setting. So, when learners move from the LH Lab to their day-to-day jobs, it’s a seamless transition.

Learners come to the LH environment expecting not only to get particular knowledge or skills but they expect to enjoy a learning experience that contribute to their ability to effectively engage customers while also feeling more confident and therefore more satisfied workers.