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The Customer Centric Organisation


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Slides for a two day workshop in Shanghai for a multinational client. Contrasting a product vs. a customer oriented company. Utilizing the Business Model Canvas and IBM Studies to create an awareness for building a value proposition and customer centricity.

Published in: Business, Education

The Customer Centric Organisation

  1. 1. management|consulting management|consulting CUSTOMER CENTRIC ORIENTATION
  2. 2. GLOBAL CLIENT MANAGER management|consulting • Proactively learns about client needs and problems • Uses client information in developing innovations and solutions • Leads client events to build awareness and brand loyalty DAY 1 Preparation [alone / group of 3] Review Material On Customer Challenges Define current customer challenges and how Your company can address these challenges • • Intended Learnings Understanding current customer needs Application of tools for needs analysis Content Who is your customer (internal and external) Current global trends and customer challenges Understanding customer needs Addressing customer needs ! Excercises Understanding your customer (white board) Who is your customer. Dealing with customers DAY 2 Homework in Mentee Peer Group of 3 Case Studies Assess the needs of your internal and external customers. Draw up strategies to enhance your customers’ delight. • • • Suggested Mentor Assignments Case Studies Review internal / external customers of of your LoB Review the customer strategies of your competitors Oracle,, Local Players • • • Intended Learnings Meet the customer • Content Presentation of Homework Meet the customer: Invitation of External Speaker Q/A understanding the needs of our customer, ! Conclusion ! !
  3. 3. BUILDING A
  4. 4. The value of a customer centric organization management|consulting Customer driven customer driven companies were significantly more successful than shareholder driven ones (+36% vs. +17%) compared with the industry median. (Research by Ellsworth) ! ! Customer centric organizations are more resilient in crisis situations than product centric organizations, as customer focus builds flexibility into the organization. Source: Gulati, (2010), Organize for Resilience
  5. 5. From a product to a customer centric organization management|consulting 1. Inside Out 2. Customer Segmentation 3. Customer 4. Outside In Solutions Product Customer Organizational 
 Boundaries (Silos) Customer oriented process organization Selling Solving Problems Own Products/ Services Any Productions/ Service Source: Gulati, (2010), Organize for Resilience
  6. 6. From a product to a customer centric organization management|consulting
  7. 7. Customer Centric Value Propositions management|consulting
  8. 8. 6 action items for a customer centric organization management|consulting CLEAR VISION Everyone in the company understands what’s important and there is unwavering believe that an intense focus on creating the best possible experience for customers is the best way to grow the business. INTIMATE CUSTOMER INSIGHT Commitment to set aside “what we think we know”, replacing it with a current, accurate and data driven understanding of customer needs, preferences, and expectations. Put your valuable customers of the core strategy and day-to-day CUSTOMER VALUE operations. The reaction is first regulated by the impact of customers. Valuable customer is important term, it describes the most profitable customers, rather than the largest number of customers. COLLECTIVE Get employees at all levels and all you need to help employees better COLLABORATION serve customers with investments and training and enabling tools. Develop an explicit internal convocation plan to make sure that your CONSTANT employees are kept up to date on the priorities in progress of these COMMUNICATION efforts Create metrics and reward customer experience success. The true OUTCOME BASED commitment to customer experience shows up on the customer gets REWARDS public acknowledgement incentives for exceeding those calls.
  9. 9. Group of 3: Discuss: Is Your company Labs China customer centric management|consulting ! 1. Inside Out ! 2. Customer Segmentation 3. Customer 4. Outside In Solutions Based on your experience, where would you put Your company Labs China / Your company Development in this diagram? ! How do you think can Your company Labs China/ Development can improve using the six key actions?
  10. 10. management|consulting 客户 WHO IS YOUR CUSTOMER
  11. 11. Let’s start by reviewing a generic business model management|consulting Source: Osterwalder, Pigneur (2010), Business Model Generation: A Handbook for Visionaries, Game Changers, and Challengers. See also: the Lean Start Up:
  12. 12. Let’s start by reviewing a generic business model management|consulting Internal Organization Customer Facing Organization
  13. 13. Exercise 1: Discuss in the groups of 3, who is your customer? management|consulting • Can you describe a typical customer of your product. • Can you segment / cluster your customers (big/small, industry etc.) ! ! • Does your products serve more than one segment (1:n) or exactly one (1:1)? Customer Segmentation
  14. 14. Exercise 1: Discuss in the groups of 3, who is your customer? management|consulting • Mass Market: There is no specific segmentation for a company that follows the Mass Market element as the organization displays a wide view of potential clients.! ! • Niche Market: Customer segmentation based on specialized needs and characteristics of its clients.! ! • Segmented: A company applies additional segmentation within existing customer segment. In the segmented situation, the business may further distinguish its clients based on gender, age, and/or income.! Grouping customers by similar needs and characteristics ! • Diversify: A business serves multiple customer segments with different needs and characteristics.! ! • Multi-Sided Platform / Market: For a smooth day to day business operation, some companies will serve mutually dependent customer segment. A credit card company will provide services to credit card holders while simultaneously assisting merchants who accept those credit cards. Customer Segmentation
  15. 15. management|consulting 客户 UNDERSTANDING CLIENT NEEDS
  17. 17. Considering Client Needs in Design: Voice of Customer of Quality Function Deployment (QFD / Six Sigma / TQM) “Voice of Customer” of Quality Function Deployment management|consulting
  18. 18. LIMITATIONS TO CUSTOMER CENTRICITY management|consulting “If I’d asked my customers what they wanted, 
 they’d have said a faster horse.” – Henry Ford
  19. 19. management|consulting 客户 CHALLENGES OF GLOBAL CLIENTS
  20. 20. CEO Statements management|consulting
  21. 21. management|consulting
  22. 22. CIO Statements management|consulting
  23. 23. GLOBAL CLIENT MANAGER management|consulting Expand Leverage Refine business processes and enhance collaboration Streamline operations and increase organizational effectiveness Transform Pioneer Change the industry value chain through improved relationships Radically innovate products, markets, business models
  24. 24. ASSIGNMENT GLOBAL CLIENT CHALLENGES management|consulting ◦ What are currently the most important challenges that CIOs (and also CEOs) are facing? ??? ??? ?? ??? ??? ??
  25. 25. Customer Statements SPEE D Chief : The CIO Acce lerati as ! on O fficer Fro nsig ata to Big I m Big D management|consulting asti tability / El Adap city en change sp Simplify & ding hts me n t / er Engage m Total Custo e Opportunity Chain Digital Assets wid ,! Enterprise Social Media Enablement Mobile Enablement Digital Enterp Merge back ! and front offic e rise Business Tra nsformation! by Cloud Total Analytic s
  26. 26. Go3: Discuss the following questions and present management|consulting ◦ How do you think Your company products and services can help customer address these challenges? ! ◦ Do you see the same challenges in the local China market? ! ◦ Where does Your company has shortcomings in product and services to address these challenges for the local market?
  27. 27. management|consulting 客户 BUILDING A COMPELLING VALUE PROPOSITION
  28. 28. How do you provide value to your customer? management|consulting • How does your product provide value to your customer? ! ! ! Value Proposition
  29. 29. What is a value proposition management|consulting A Value Proposition it is a clearly defined statement that is designed to convince customers that one particular product or service will add more value or better solve a problem than others in its competitive set. Value Proposition • • • • • A value proposition describes the target customer’s problem their product solves It quantifies the problem It describes the benefits of using the suppliers’ products or serves It shows a specific value to the customer It shows an advantage over the competition.
  30. 30. vmware’s Value Proposition management|consulting For IT organizations wrestling with the high cost and inflexibility of the old “one server, one application” model, VMWare can improve the efficiency and availability of IT resources and applications through virtualization.  About 70% of a typical IT budget in a non-virtualized datacenter goes towards just maintaining the existing infrastructure, with little left for innovation. VMWare can free your IT admins from spending so much time managing servers rather than innovating. An automated datacenter built on the production-proven VMware virtualization platform lets you respond to market dynamics faster and more efficiently than ever before. VMware customers typically save 50-70% on overall IT costs by consolidating their resource pools and delivering highly available machines with VMware vSphere.
  32. 32. Channels management|consulting CS1 VP1 VP2 CS2 VP3 CS3 Channels Channels: A company can deliver its value proposition to its targeted customers through different channels. Effective channels will distribute a company’s value proposition in ways that are fast, efficient and cost effective. An organization can reach its clients either through its own channels (store front), partner channels (major distributors), or a combination of both.
  33. 33. Customer Relationship management|consulting Customer Relationship Personal Assistance Co-Creation Automated Services Self Service Communities Dedicated Personal Assistance
  34. 34. Sources of Revenue management|consulting Product Sale Subscription Services Usage Fee Licensing Advertisement Revenue Stream Renting Brokerage Fees
  35. 35. Recap: What did we learn today? management|consulting The customer centric organization Identifying client needs Challenges of Global Clients Who is your customer? Value Proposition
  36. 36. Homework/Mentor Assignments until Booster 2 management|consulting Homework in Mentee Peer Group of 3 Case Studies, Assess the needs of your internal and external customers. Draw up strategies to enhance your customers’ delight. Who is your customer? Suggested Mentor Assignments Case Studies Review internal / external customers of of your LoB Review the customer strategies of your competitors Oracle,, Local Players
  37. 37. QUESTIONS & ANSWERS management|consulting management|consulting DR. MARKUS ALSLEBEN Alsleben Ltd. (HK) Management Consulting +852 63408158 Front Side: 2c Black/RED embossed print Card Paper 1077