Busting the Box vs. Thinking Outside It:
An Economic Wake-Up Call
By
STEVE
WEISSMAN
Am I
the only one who feels the economy is getting to be like the weather? Everybody
talks about it, but nobody does anything about it! (Mark Twain)
We can all agree that the present and protracted economic uncertainty
is leading customers to be ever more cautious in their IT spending. But
its not enough to continue to bemoan the situation: you need to actually
do something about it or risk alienating your customers, partners, employees
and stakeholders.
A year and a half ago we urged our readers and clients as a first step
to intensify their concentration on customer service. Early this year,
we began writing of the wisdom of expanding ones horizons by pursuing
partnerships and M&A opportunities. Today, we add to the mix our recommendation
for even more drastic action: not merely thinking outside the box, but
busting the box altogether by thinking creatively about customers problems
and innovating new ways to solve them.
Doing More with Less
Yes, Virginia, there is a need for organizations to do more with less
or at the very least, to do the same with the same! Most of the users
we talk to report that permission to spend on new technology is hard to
come by. Instead, their attention is being given to maximizing the value
of the systems they already have, and the performance of the workers using
those systems. Thats especially true of the internal application development
workers who are being handed more and more responsibility for your customers
business processes. Here are a few pieces of evidence from several different
directions to support this point.
-
Oracles financial report for the quarter
ended August 31 says that new software license sales were down 23% from
the same period the year before. However, software license update revenues
were up 9% over the same timeframe. This clearly indicates that while new
customers are becoming increasingly hard to find, existing customers are
looking to get more from the software they already own.
-
BusinessWeek over the
past several months has reported on federal statistics that consistently
indicate worker productivity is strong and rising. While the thinking is
that this strength has helped to keep serious economic problems at bay,
it paradoxically also may be delaying a significant move toward recovery
by mitigating the need for new hires, spending for additional capital equipment,
etc. Either way, greater productivity is what results from successfully
doing more with less.
-
Open Text this month acquired messaging/collaboration
infrastructure provider Centrinity to bolster its ability to help its customers
work better together. This transaction suggests Open Text sees the same
growing demand for communications and collaboration that we do (communications
being one of the three elements of our MaxTVSM model for Maximizing Total
Value), and it refreshing to see the company take such definitive action
to meet it.
How Do I
?
If we presume the economy continues on its present flattish course
and theres no reason to assume it wont then the next step along the
road has to be to move beyond merely improving the ability to serve customers
with better-faster-cheaper offerings. Instead, a conceptual step backwards
must be taken so you can adopt a broader view of the role you play and
the need you fill. This means not only identifying new opportunities in
terms of your current capabilities and how they may be leveraged which
is how thinking outside the box has come to be practiced but actually
redefining yourself in terms of how customers use your stuff and developing
strategies from there. We call this busting the box altogether, and we
see it as fundamental for any company that wants to do something about
the economic weather.
Here are but a few companies that are busy busting boxes even as we
speak:
-
Cerylion has hit upon a technology
architecture that facilitates context management in the way we first
postulated it way back in 1997. At the highest level, it offers a creative
way to orchestrate an infrastructure so users can develop and maintain
a personalized interaction with intranets, extranets, and everything in
between.
-
ScanSoft has moved beyond its historical
roots as a scanning company and now is treating text, image, and voice
communications as mere variations on the content theme. Its gig today simply
is input, and it has products that can capture information in any of
those data types.
-
Starfish is making wireless
computing practical for enterprise computing use by concentrating on the
way people access and use information, and fielding products that allow
this to happen on mobile and wireless devices.
The common thread here is that all three companies know that their customers
bottom-line issues have to do with process, not technology, and theyre
all working to redefine themselves accordingly. And as they do, they are
smashing the boxes theyve traditionally operated in because theyre committed
to viewing the market through their customers eyes and thats precisely
how you make sales in an economic climate that is distinctly not conducive
to buying.
Your Assignment (Should You Choose to Accept)
Embarking down this road is really quite simple, as you need only start
with the same question your customers do: How do I
quickly find the
relevant information I need, even when that need changes constantly (Cerylion)?
Digitize information coming to me in a form, typed on a piece of paper,
over the telephone (Scansoft)? Use my PDA to access and work with up-to-date
information stored back in my office (Starfish)?
Whats hard is following through with what may appear to be radical
departures from your usual approaches to product development, sales, and
marketing. Though your customers will love it as soon as they see it, busting
the box usually means redirecting your salespeople, reeducating the market,
and reassuring your stakeholders, all of whom will take time to come on
board.
Kinetic Information spends a lot of its time helping clients make this
very transition, and its clear to us that one of the most important ways
to do this is to find ways of eating your own cooking using on your
own processes the very technology you wish to sell other companies. By
so doing, youll quickly discover whats missing, what works, and what
the market most needs to hear, and thereby be in the best position possible
to weather the economic squall. Contact
Us for More
Kinetic
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