Tuesday, February 21, 2006

Sadagopan's weblog on Emerging Technologies,Thoughts, Ideas,Trends and Cyberworld

Sadagopan's weblog on Emerging Technologies,Thoughts, Ideas,Trends and Cyberworld: "Innovation, Innovation Everywhere"

Sadagopan has nailed it again -- we are hearing these same thoughts around management innovation from our customers. The key to differentiating your company is to change how you deliver to your customers, regardless of the type of company. Brands, products and features are all becoming irrelevant when compared to how you are servicing your customers. You need to deliver value quickly and regularly and get better at it.

As the CEO of one large Korean Consumer Electronics company told us -- "Supply Chain Management is the only effective weapon to differentiate us from our competitors; we must shorten the time to market in a cost effective way". They are in a business where their goods depreciate in price 30% per year so speed is essential. Plus if they develop a new feature, it takes almost no time, < 1 product lifecyle, for another manufacturer in China to get a similar, cheaper priced good to market.

Supply Chain Management is again becoming a key area off differentiation for a few companies -- but I see far to many companies who are satisfied with poor customer service and inventory turns below the industry average. If your companies inventory turns are below average and the average is below 12 -- I think it you have an opportunity to get that promotion, increase that stock price, increase your customer service and make your CFO happy. Ok, so I made up the last bit about the CFO.....