The Key ingredient for going the solutions way How 3 leading organizations transformed their business model
Moving from Products to Solutions• Most organizations start with a single product and through experience they learn about customer needs. Adding value to their existing products, they introduce completely new but related product to the product line.• It is generally believed that bundling products with related services creates a solution. This, at best, can be an interesting sales pitch.• The following slides illustrate how three leading organizations transformed themselves into true solution providers by using one key ingredient: Customer insight.• Though there are numerous examples, PeopleWiz chose these companies especially for the manner in which they not only changed their offering but also successfully managed an image makeover in the minds of customers.
PeopleWiz Chose: Provider of Business Provider of Oral Support Solutions Care Solutions Provider of Financial Solutions
Colgate- Oral Care Solution Provider In 1896 In 2012Toothpaste Provider Oral Care Solution Provider
Few facts• In the beginning Colgate was selling toothpaste alone.• In the recent years, it has positioned itself as an Oral Health Care provider.• It has introduced complete oral care products and services for all ages and preferences. Its website advises on oral care and has tied up with dentists to understand the dental care market in an attempt to continuously expand its innovative offering.• The revenue growth rate of Colgate is 4.35% and the latest annual profit is $2.43 Billion.
Xerox- Business Support Solution Provider• In 1906 In 2012 •ITO •BPO •Managed Print Service •Document Management •Xerox Document Services •Production Printing •business process and document management. •Communication and Marketing •Enterprise Content •Management Document and Data Mgmt. •IT Consulting •Application development IT Infrastructure •HR Services •Cloud computing •Digital Printing •Professional Service etc
Few Facts• Xerox started its business with a single product, Photocopiers.• As the years progressed Xerox has established itself as a complete Business Support Solution Provider.• Growth rate of Xerox is 5.4% and last year’s profit stands at $1.30 Billion.
Deloitte- Financial Service Provider 2012 Audit 1845 Consulting Financial Auditing Financial Advisory Risk Management Taxation Service etcFinancial Auditing Professional SolutionsServices Provider
Few Facts• Deloitte started as a Financial Auditor to organizations• Year on year, as they understood customer needs and gained insights to business, they expanded their service offerings.• Deloitte is now one of the Big Four Professional Service Provider• Growth rate of Deloitte is 7.7% and their last years revenue stands at $28.8 Billion $28.8B
Conclusion• These three companies followed the trajectory of starting with a single product, adding allied products, including related services and then becoming an end to end solution provider based on customer insights gained over years.• They have not only solved customer’s immediate problems but have also partnered with them to define emerging needs and address them effectively.• Effective Solution Providers distinguish themselves by not just being great at selling their existing wares but by addressing the hitherto unrecognized needs of the customer.• They don’t just steer their their way through the customer’s purchasing process but coach the customers in making the right buying decision.References:http://www.colgate.co.inhttp://www.deloitte.comhttp://www.xerox.comhttp://www.thestreet.com