Organizational structures and management incentives frequently discourage communication between operations and sales/marketing that is essential for cost-effective customization. Customization missteps often occur because sales/marketing lack information about product variety and complexity costs. The companies that do well with customization have cross-functional teams and activity-based costing to make analytical rather than political decisions about customization.
It is a case analysis of a Harvard Business School Case. This ppt shows how a shift has taken place from upstream to downstream activities in the business.
* In an increasingly copy-cat economy, the new basis of competition is business model innovation.
* Unfortunately, the work of business model innovation is too often left undone, at great cost to the organization's longer term growth opportunities and its profitability. This gap is the outcome of marketing's role increasingly being defined around demand generation and brand communications in increasingly fragmented channels, roles that have required many new marketing subspecialties.
* The CMO is ideally suited to facilitate business model strategy decisions, decisions that must be made by the leadership team as a whole.
* Deploying the CMO to facilitate business model innovation will align brand and business strategy, benefiting the success of both.
The everyday fallacies of marketing technology: doing it right versus doing i...Drthomasbrand Limited
Marketing technology is the most powerful change to marketing and business is known history. This presentation covers key aspects of how to avoid the problems and incorporates the considerations to use marketing and digital technology best in companies.
It is a case analysis of a Harvard Business School Case. This ppt shows how a shift has taken place from upstream to downstream activities in the business.
* In an increasingly copy-cat economy, the new basis of competition is business model innovation.
* Unfortunately, the work of business model innovation is too often left undone, at great cost to the organization's longer term growth opportunities and its profitability. This gap is the outcome of marketing's role increasingly being defined around demand generation and brand communications in increasingly fragmented channels, roles that have required many new marketing subspecialties.
* The CMO is ideally suited to facilitate business model strategy decisions, decisions that must be made by the leadership team as a whole.
* Deploying the CMO to facilitate business model innovation will align brand and business strategy, benefiting the success of both.
The everyday fallacies of marketing technology: doing it right versus doing i...Drthomasbrand Limited
Marketing technology is the most powerful change to marketing and business is known history. This presentation covers key aspects of how to avoid the problems and incorporates the considerations to use marketing and digital technology best in companies.
Eighty percent of companies think their brands have superior experiences. Unfortunately, only eight percent of their customers agree.
It’s time for brands to tackle the experience gap – the gap between how consumers want to experience brands, and what brands are actually doing.
It’s not just a marketing imperative; it’s a business imperative. That’s why we’re proud to share our latest research looking at brand experience examples and ideas that you can apply to your brand.
New research proves consumers prefer brands that offer unique experiences. Many are even willing to pay more for unique brand experiences. Check out our global research on brand experience trends and learn how to apply these insights to your brand.
Eighty percent of companies think their brands have superior experiences. Unfortunately, only eight percent of their customers agree.
It’s time for brands to tackle the experience gap – the gap between how consumers want to experience brands, and what brands are actually doing.
It’s not just a marketing imperative; it’s a business imperative. That’s why we’re proud to share our latest research looking at brand experience examples and ideas that you can apply to your brand.
New research proves consumers prefer brands that offer unique experiences. Many are even willing to pay more for unique brand experiences. Check out our global research on brand experience trends and learn how to apply these insights to your brand.
This presentation provides an overview of marketing and the tools available to you to promote your business. The information presented is tailored towards small businesses that may have a small marketing budget and a lack of internal marketing expertise.
Why is this book so important? One of the biggest lessons I have learned within the startup landscape is that even though pricing, together with the business model, remains by far the lever that most impacts revenue, the subject is a sensitive one.
Pricing is a strong — but often underused — tool available to capture a share of value created for customers
Pricing is one of the biggest challenges that startup face. The book is a practical toolkit that positively influences the pricing strategies of startups. It reveals insights in the different pricing methods and tactics used by successful companies.
A detailed investigation to validate the popular marketing concept of custome...Charm Rammandala
Understanding customers expectation is one of the fundamental factor’s to retain in the business, whether the business is a service provider or a manufacturer. Simply because if a business fails to understand the customer needs and satisfy the expectations, its running the risk of losing customers instead of gaining. Unsatisfied customer is a liability for any business as it will bring numerous negative outcomes. Apart from losing the business of affected customers, the bad reviews, blog posts and word of mouth will put off many more potential customers.
The notion of customer is always right is a century old concept and it’s becoming more relevant to the current market conditions than ever.
The purpose of this essay is to take an in-depth look in to the concept of customer is always right and evaluate how relevant said concept to the modern market conditions
In this article, the authors suggest that sales managers need to realize that not all sales visits to the customers will necessarily create value for the customer. Sales managers need to realize that different sales processes exist when dealing with customers and the key factor determining the sales process is got to be based on how much value a salesperson can bring to the customer. The
authors go on to identify three different types of sales processes and give reasons as to why value based segmentation is the best way to help your salespeople deliver value not just for their customers but also for themselves.
This document reviews best practice in pricing processes to provide a reference against which current practices and proposals can be tested. Our objectives have been: to research the attributes of world-class pricing through publications and academic sources; to investigate how these attributes are applied in practice to products and services; to assess pricing processes in successful businesses.
In recent years a new attitude toward pricing has emerged. Deregulation and international free trade agreements have increased competition. Price promotion has eroded the power of brand loyalty. Pricing has assumed greater importance to most businesses.
As markets increasingly assume a global dimension, customers can more easily compare prices between one region or country and another, using the internet or a fax machine. They can often locate the same product, or an
acceptable substitute, from another source. Customers are more demanding and fickle, and their expectations increasingly difficult to fulfil.
Price inflation in western economies is now at its lowest for decades. Price increases are no longer accepted without protest from customers, if at all.
The Chairman of General Electric has predicted the onset of the ‘Value Decade’. Global price competition will strengthen because of: reduced product differentiation; global over-capacity for production; significantly diminished trade barriers; efficient information and distribution systems; providing customers with easy access to the prices of suppliers; a growing lack of customers’ loyalty to individual suppliers. Choice will be increasingly driven by price.
This is a challenging scenario that reinforces the need for an integrated strategy and concerted managerial action on pricing.
Pricing processes have lagged behind developments in the market place. They are often characterised by internal conflict between accountants wishing to maximise profit per unit and marketing specialists who seek to maximise
throughput. They are also affected by the potential for strained relations with good customers.
Some companies have downsized their operations to a level where diminishing returns cause them to question the benefits of continuing to focus upon reducing costs. As they switch their attention from cost cutting to adding
value, pricing naturally assumes increased weight in the marketing mix.
We have found many companies reluctant to discuss their own processes.
Some may wish to avoid betraying a lack of sophistication.
Artigo, em inglês, escrito pelo executivo global de Marketing, Bracey Wilson, sobre o tema que mais tem chamado a atenção de CEOs e profissionais de Marketing: Métricas em Marketing.
My vision for supply chain 2020. Deep integration!Bram Desmet
Blog for the #ImagineSC Global Summit of @SCInsightsLLC. Transcript of a podcast with Lora Cecere. Building on my experience with multi-echelon inventory optimization in manufacturing and retail organizations
A presentation on mastering key management concepts across projects, products, programs, and portfolios. Whether you're an aspiring manager or looking to enhance your skills, this session will provide you with the knowledge and tools to succeed in various management roles. Learn about the distinct lifecycles, methodologies, and essential skillsets needed to thrive in today's dynamic business environment.
Public Speaking Tips to Help You Be A Strong Leader.pdfPinta Partners
In the realm of effective leadership, a multitude of skills come into play, but one stands out as both crucial and challenging: public speaking.
Public speaking transcends mere eloquence; it serves as the medium through which leaders articulate their vision, inspire action, and foster engagement. For leaders, refining public speaking skills is essential, elevating their ability to influence, persuade, and lead with resolute conviction. Here are some key tips to consider: https://joellandau.com/the-public-speaking-tips-to-help-you-be-a-stronger-leader/
Specific ServPoints should be tailored for restaurants in all food service segments. Your ServPoints should be the centerpiece of brand delivery training (guest service) and align with your brand position and marketing initiatives, especially in high-labor-cost conditions.
408-784-7371
Foodservice Consulting + Design
Employment PracticesRegulation and Multinational CorporationsRoopaTemkar
Employment PracticesRegulation and Multinational Corporations
Strategic decision making within MNCs constrained or determined by the implementation of laws and codes of practice and by pressure from political actors. Managers in MNCs have to make choices that are shaped by gvmt. intervention and the local economy.
Enriching engagement with ethical review processesstrikingabalance
New ethics review processes at the University of Bath. Presented at the 8th World Conference on Research Integrity by Filipa Vance, Head of Research Governance and Compliance at the University of Bath. June 2024, Athens
Integrity in leadership builds trust by ensuring consistency between words an...Ram V Chary
Integrity in leadership builds trust by ensuring consistency between words and actions, making leaders reliable and credible. It also ensures ethical decision-making, which fosters a positive organizational culture and promotes long-term success. #RamVChary
Senior Project and Engineering Leader Jim Smith.pdfJim Smith
I am a Project and Engineering Leader with extensive experience as a Business Operations Leader, Technical Project Manager, Engineering Manager and Operations Experience for Domestic and International companies such as Electrolux, Carrier, and Deutz. I have developed new products using Stage Gate development/MS Project/JIRA, for the pro-duction of Medical Equipment, Large Commercial Refrigeration Systems, Appliances, HVAC, and Diesel engines.
My experience includes:
Managed customized engineered refrigeration system projects with high voltage power panels from quote to ship, coordinating actions between electrical engineering, mechanical design and application engineering, purchasing, production, test, quality assurance and field installation. Managed projects $25k to $1M per project; 4-8 per month. (Hussmann refrigeration)
Successfully developed the $15-20M yearly corporate capital strategy for manufacturing, with the Executive Team and key stakeholders. Created project scope and specifications, business case, ROI, managed project plans with key personnel for nine consumer product manufacturing and distribution sites; to support the company’s strategic sales plan.
Over 15 years of experience managing and developing cost improvement projects with key Stakeholders, site Manufacturing Engineers, Mechanical Engineers, Maintenance, and facility support personnel to optimize pro-duction operations, safety, EHS, and new product development. (BioLab, Deutz, Caire)
Experience working as a Technical Manager developing new products with chemical engineers and packaging engineers to enhance and reduce the cost of retail products. I have led the activities of multiple engineering groups with diverse backgrounds.
Great experience managing the product development of products which utilize complex electrical controls, high voltage power panels, product testing, and commissioning.
Created project scope, business case, ROI for multiple capital projects to support electrotechnical assembly and CPG goods. Identified project cost, risk, success criteria, and performed equipment qualifications. (Carrier, Electrolux, Biolab, Price, Hussmann)
Created detailed projects plans using MS Project, Gant charts in excel, and updated new product development in Jira for stakeholders and project team members including critical path.
Great knowledge of ISO9001, NFPA, OSHA regulations.
User level knowledge of MRP/SAP, MS Project, Powerpoint, Visio, Mastercontrol, JIRA, Power BI and Tableau.
I appreciate your consideration, and look forward to discussing this role with you, and how I can lead your company’s growth and profitability. I can be contacted via LinkedIn via phone or E Mail.
Jim Smith
678-993-7195
jimsmith30024@gmail.com
Org Design is a core skill to be mastered by management for any successful org change.
Org Topologies™ in its essence is a two-dimensional space with 16 distinctive boxes - atomic organizational archetypes. That space helps you to plot your current operating model by positioning individuals, departments, and teams on the map. This will give a profound understanding of the performance of your value-creating organizational ecosystem.
Comparing Stability and Sustainability in Agile SystemsRob Healy
Copy of the presentation given at XP2024 based on a research paper.
In this paper we explain wat overwork is and the physical and mental health risks associated with it.
We then explore how overwork relates to system stability and inventory.
Finally there is a call to action for Team Leads / Scrum Masters / Managers to measure and monitor excess work for individual teams.
12 steps to transform your organization into the agile org you deservePierre E. NEIS
During an organizational transformation, the shift is from the previous state to an improved one. In the realm of agility, I emphasize the significance of identifying polarities. This approach helps establish a clear understanding of your objectives. I have outlined 12 incremental actions to delineate your organizational strategy.
The case study discusses the potential of drone delivery and the challenges that need to be addressed before it becomes widespread.
Key takeaways:
Drone delivery is in its early stages: Amazon's trial in the UK demonstrates the potential for faster deliveries, but it's still limited by regulations and technology.
Regulations are a major hurdle: Safety concerns around drone collisions with airplanes and people have led to restrictions on flight height and location.
Other challenges exist: Who will use drone delivery the most? Is it cost-effective compared to traditional delivery trucks?
Discussion questions:
Managerial challenges: Integrating drones requires planning for new infrastructure, training staff, and navigating regulations. There are also marketing and recruitment considerations specific to this technology.
External forces vary by country: Regulations, consumer acceptance, and infrastructure all differ between countries.
Demographics matter: Younger generations might be more receptive to drone delivery, while older populations might have concerns.
Stakeholders for Amazon: Customers, regulators, aviation authorities, and competitors are all stakeholders. Regulators likely hold the greatest influence as they determine the feasibility of drone delivery.
Case Analysis - The Sky is the Limit | Principles of Management
The challenge of customization
1. The Challenge of Customization: Bringing Operations
and Marketing Together
Customers want more customized, personalized products and services, but
companies struggle to cost-effectively deliver them. Improving communication and
coordination between operations and sales and marketing is one critical path to
profitable customization.
Today’s companies are under greater pressure than ever to be “all things to all customers” — to produce
increasing variety and customization of products and services, and keep their costs under control so they
can deliver at competitive prices.
Unfortunately, most companies struggle with the rising costs to serve customers who are demanding more
and more variety, customization, and personalization. Indeed, companies frequently find themselves
introducing the wrong variations at the wrong prices — giving customers value that they don’t really want at
a price that the company can’t really afford to pay.
Such errors don’t occur because of incompetence, say experts at the Wharton School of the University of
Pennsylvania and Booz Allen Hamilton. On the contrary, marketers often know their customers and their
distribution partners in astonishing detail, and operations engineers can follow their products in real time
from the factory to the warehouse to the store. The real problem, they say, is systemic.
Most companies’ organizational structures and management incentives frequently discourage — and
sometimes even obstruct — the collaboration and communication between the operations and sales and
marketing functions that is essential for cost-effective customization.
In this paper, consultants from Booz Allen and faculty from Wharton conclude that failure to communicate
and coordinate among functions, particularly between marketing and operations, significantly raises the
costs and difficulty of executing customization strategies. They explain the structural and cultural reasons
that make it tough for marketing and operations to work together. And they offer suggestions on how senior
executives can encourage better communication and information sharing between these functions to ensure
that new varieties of products actually add value for customers and earn profits for companies.
Complexity Drivers
To understand what goes wrong, it’s important to see how decisions to introduce new features are made in
the first place. “Generally, marketing believes that more variety will enable the company to reach more
customers,” says Matthew Egol, a principal at Booz Allen based in New York City.
At the same time, salespeople often push for even more variation, as they try to match their product to the
desires of a specific customer, not just a perceived market need. “Sales guys have an incentive to make
products more complex because they want to close the deal; they want to get that order or defend the price
premium,” Egol explains.
“Organizational structures
and management
incentives frequently
discourage the
communication between
operations and sales and
marketing that’s essential
for cost-effective
customization.”
2. In some cases, the distribution channel itself drives product variation,
whether this adds value or not. Keith Oliver, a Booz Allen senior vice
president based in London and head of the firm's global operations
practice, says that in a service business the “expert interface,” such
as an insurance broker, often wants to add complexity to the offering.
“You know, their main job is to complicate life because that’s where
their added value is,” he says. “If the product was self-evident and
didn’t actually require interpretation, then value of the expert interface
in the channel is reduced.”
But marketers and salespeople often don’t appreciate the underlying costs of introducing greater variety and
complexity, Booz Allen and Wharton experts say. “Marketing is focused on providing the variety that’s
demanded, but they often don’t think of the cost. Or they think, here’s a budget I have to hit, and then they
rely on the Ops guys to figure out how to cut costs… It’s not a systemic approach,” Egol says.
For example, Egol recalls a heavy equipment manufacturer he worked with that offered 500 different
versions of the product in its catalog, which were then customized by the sales team into thousands of ad
hoc configurations. “They ended up with thousands of versions, because the sales guys would go in and
say, ‘You know, your needs are really unique. Let’s change the specification to be exactly what you need
and we’ll have a warranty that stands behind it,’” he recalls.
Overindulgent Customization
It’s difficult to prevent such over-promising. Leslie H. Moeller, a Booz Allen vice president based in
Cleveland and leader of the firm’s Customers, Channels, and Markets services, says that customization can
be a bit like eating too much; you do it because “it feels good when you’re doing it. Then you wake up one
day and you’re 80 pounds overweight.”
Moeller argues that customization missteps often occur because sales and marketing frequently lack
information about “the calories” (i.e., the cost of creating more variety and introducing more complexity).
Quantifying the costs of such variety-binges might sound simple, but often these complexity costs are
“hidden,” in higher overhead, higher supply chain costs, or greater discounting.
Such over-customization can eventually lead to a weaker position in the market, with the firm pushing an
excessively complex product to a bewildered customer. “At the end of the day, consumers often get more
complexity than they want,” says Moeller. He cites one recent study where 50 percent of respondents said
that they postponed a purchase of an electronics product because the product was too complicated.
Wharton marketing professor Jerry Wind concurs that too many options can paralyze the consumer. “If
customers have too much choice, they cannot make a decision; they freeze,” he says.
The problem is not just lost sales. The firm that has indulged in too much variety and is facing a competitor
offering just the right variety can end up with a serious competitive disadvantage. Keith Oliver cites an
example from a recent Booz Allen study: Chrysler’s Dodge Ram is available with 1.2 million different
variations. The Toyota Tundra sports a much smaller 22,000 possible configurations. Yet, Oliver says,
“Toyota doesn’t appear to be penalized by having less variation and customization.” In fact, Ram is losing
share while the Tundra is gaining share. According to Oliver, Toyota’s frugal approach to managing variety
“Customization missteps
often occur because sales
and marketing frequently
lack information about the
costs of product variety
and complexity. ”
“Choice complexity can
actually lead to value
destruction: One packaged
goods company was
expanding revenue at 7
percent a year, but was
accomplishing this only by
boosting its per unit costs
by 6 percent a year.”
3. gives it a tremendous cost advantage over Chrysler. Between greater line efficiency and fewer variations, he
says, Japanese automobile manufacturing labor costs are 80 percent lower than those in Detroit.
At its most extreme, choice complexity can actually lead to a value-
destroying business model that’s a bit like the old vaudeville joke
about the salesman who “loses on every sale but makes it up in
volume.” Moeller recalls a packaged goods client whose top sales
manager on its Costco account hadn’t realized the true costs of the
packaging that the warehouse grocery giant demanded. Booz Allen
analysts discovered that an account that appeared to be expanding
revenue at 7 percent a year was accomplishing this feat only by boosting its per unit costs by 6 percent a
year.
Historic Conflicts
Most U.S. firms have historically had a culture in which operations and sales and marketing are adversaries
rather than partners. This makes getting the right information to the right people at the right time a challenge.
“Not only is there a tension between the functional objectives, in many instances they are in fact 180
degrees opposite,” Oliver says. Marketing wants short lead times and huge variety; manufacturing wants
long lead times and limited variety. “Operations actually needs to design the changes, they need people to
make sure that the bill of materials gets to the right place in the production line, that they actually made what
was promised,” says Egol.
Conflict also arises because each function is compensated differently. Operations executives make their
money on cost reduction, not volume. Marketing and sales incentives are typically built around unit sales.
Often, even sales incentives aren’t calibrated to maximize profitability. Leonard Lodish, a professor of
marketing at Wharton, says he knows of one snack-food company where delivery drivers and salespeople
are still compensated on per pound sales, rather than on the profitability of a particular product line.
Communication between sales and marketing and operations is made still more complex by the fact that
each function is generally run by people who lack a common background and vocabulary. Operations
leaders are often engineers and technically oriented. They usually don’t have MBAs. Sales and marketing
executives, whether or not they have business degrees, are not attuned to technical costs and tend not to
sweat the details the way the engineers do.
As a result, says Egol, “the Ops guys think that the sales guys just don’t understand the cost implications of
what they’re doing, and the sales guys think that the operations guys don’t understand that the customer is
king.”
Given the challenges of achieving what Booz Allen has dubbed “smart customization” — making an
intelligent balance between more choices for the customer and the costs of complexity for the company — it
might be tempting to take a page out of Henry Ford’s book and offer customers “any color they want as long
as it’s black.”
But in today’s society, not offering the appropriate range of choices isn’t an option. When operations-focused
cost-cutters reduce the number of choices without consulting marketing, it can be just as bad as having too
much variety. In fact, Wharton’s Lodish says that such operations-driven decisions can lead to trouble if, for
instance, a company decides to cut its lowest-selling 10 percent of SKUs without considering the impact to
“The companies that do
well with customization
often have well-developed
cross-functional teams.”
“Activity-based costing
systems are essential to
ensure managers make
decisions about
customization that are
analytical rather than
political.”
4. the company’s sales and fixed costs. “If you don’t have all the pieces, and you concentrate on one side and
not the other, you end up making very bad decisions,” explains Lodish.
A Nontrivial Challenge
Some of these misunderstandings can be resolved through more dialogue, but it won’t happen without
encouragement from the top, says Stephen Hoch, a marketing professor at Wharton. What’s needed is
“leadership at the top that recognizes that there’s a conflict and is focused on resolving it,” Hoch says. That
“doesn’t necessarily mean caving one way or caving another,” but it does require encouraging discussion.
Regrettably, Oliver says, most companies lack an easy way to encourage such dialogues. Although
marketing and operations teams typically talk to each other all the time in the ordinary course of business,
there tends to be no forum for strategic discussions.
Yet even these occasional dialogues may not be enough. “The companies that do well with customization
often have well-developed cross-functional teams,” Egol says. At the level of execution, “functions need to
speak about how to reduce the complexity of the system and how to cost-effectively add variety and
increase focus regarding what variety to add. The team is the focal point for making such trade-offs.”
Finding a common set of data for those groups to discuss is another key to cross-functional success.
Wharton’s Lodish argues that activity-based costing systems are essential to ensure managers make
decisions that are analytical rather than political. Otherwise, he says, “they’re flying in the dark.”
Booz Allen’s Moeller says most companies find it difficult to do sophisticated cost-analysis. “To get them to
think that there are different fixed costs that are fixed over different time horizons against different segments
in different ways…is a very hard thing to do. The traditional business organization is just not set up today to
do that,” he says.
Still, company-wide understanding of issues throughout the value chain need not be synonymous with
consensual decisions. “The trick is to be very clear about which decisions need to be made where,” asserts
Moeller.
Companies also need to focus on the customer experience. Instead of offering thousands of choices,
Wharton’s Jerry Wind advises companies to group customizable elements into distinct, modular packages.
Booz Allen experts agree that modular packages provide more manageable ways for salespeople to deal
with customization, and tend to be somewhat easier for customers to handle. Special solutions that involve
choices that are not on the customization “menu” need to be only for a small subset of the account base.
Know Your Mission
Ultimately, Booz Allen experts say that many of the difficulties companies have with customization relate to
how clearly the company understands its business. Oliver says that at Toyota, for example, every employee
is drilled in the company’s three values — quality, durability, and reliability. The QRD mantra “actually
permeates across functions,” says Oliver. This common understanding of the company’s goals has not only
sped up the production line, it has also shaped and made Toyota’s marketing more productive as well,
according to Oliver.
Wharton’s Hoch says that companies with a high level of operational efficiency often have a clear sense of
their most desirable customer. “For instance, Dell does provide a lot of value, but if you don’t know a lot
about computers and you don’t want to wait two or three weeks, they don’t want to do business with you,” he
says. Southwest is another company whose operational efficiency is driven by a clear idea of who its
customers are and the kind of value they are looking for in an airline. “If you feel that you want to be called
by your first name and you want an assigned seat and you want to be part of a frequent flier club and all that
kinds of stuff, Southwest says, 'Sorry, you’re not our customer,'” he says.
While a company need not be as operationally focused as Dell or Southwest to succeed, understanding both
the true cost and the value of its products is essential. Reaching that level of corporate self-awareness, and
tailoring products to reflect that understanding, really can’t be done without strong communication between
sales, marketing, and operations. As Booz Allen’s Oliver says, the cross-functional dialogue that smart
customization entails is “a nontrivial challenge.”