Are you an outcome-centric business? Increasingly businesses are being forced to focus more on the outcomes of their products, delivering more value to their customers. Tailoring the product to meet very specific needs.
In the traditional customer-centric business focus is on identifying the needs across market segments and designing products to match the needs of these segments. But in an outcome-centric business data is collated from each customer in order to tailor the product to add the maximum value to that business.
By way of example, if your manufacturing company was a supplier of blending equipment to a segment of say, bread producers, data could be collected from each customer to analyse in detail what modifications may be made to the equipment supplied to each company in order to increase efficiency in their manufacturing unit,for instance to reduce downtime or cleaning operations.
Whilst it is understood that thousands of modifications would not be feasable, specific data from one customer may also add value to similar customers.
Sales/Customer Relationship
In order to meet customers specific needs and to deliver its marketing promise, sales functions have to integrate fully with their customer base to ascertain the specific outcomes that are required from the product being supplied.
A change from traditional "selling skills" to a focus on data gathering from each customers to deliver added value outcomes.
Internal Functions
Obtaining product performance data will drive and help to reduce new product development cycles. Current thinking suggests that industrial manufacturers will have to compete as technology businesses do, racing to be the first to get new products into the marketplace. Sales functions will have to become more integrated to recommend product improvements as new data becomes available and indeed pricing will be linked to outcomes as opposed to conventional pricing structures. "Outcome pricing" is likely to be the new norm.
Summary
Advancements in technology will enable manufacturing businesses to become more focused on outcomes as data streams are now increasingly available in real time. Shifting from traditional marketing methods to satisfy segments to outcome values will require change across the business, failing to do so may leave many manufacturing businesses stagnating.
In the traditional customer-centric business focus is on identifying the needs across market segments and designing products to match the needs of these segments. But in an outcome-centric business data is collated from each customer in order to tailor the product to add the maximum value to that business.
By way of example, if your manufacturing company was a supplier of blending equipment to a segment of say, bread producers, data could be collected from each customer to analyse in detail what modifications may be made to the equipment supplied to each company in order to increase efficiency in their manufacturing unit,for instance to reduce downtime or cleaning operations.
Whilst it is understood that thousands of modifications would not be feasable, specific data from one customer may also add value to similar customers.
Sales/Customer Relationship
In order to meet customers specific needs and to deliver its marketing promise, sales functions have to integrate fully with their customer base to ascertain the specific outcomes that are required from the product being supplied.
A change from traditional "selling skills" to a focus on data gathering from each customers to deliver added value outcomes.
Internal Functions
Obtaining product performance data will drive and help to reduce new product development cycles. Current thinking suggests that industrial manufacturers will have to compete as technology businesses do, racing to be the first to get new products into the marketplace. Sales functions will have to become more integrated to recommend product improvements as new data becomes available and indeed pricing will be linked to outcomes as opposed to conventional pricing structures. "Outcome pricing" is likely to be the new norm.
Summary
Advancements in technology will enable manufacturing businesses to become more focused on outcomes as data streams are now increasingly available in real time. Shifting from traditional marketing methods to satisfy segments to outcome values will require change across the business, failing to do so may leave many manufacturing businesses stagnating.
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