Create Space, Create Agility, and Create the
April 12, 2010 at 06:53 AM EDT
In Engineering Live
read an interesting article titled, "How
manufacturers can prepare for post-recession profitability." David
a technology and innovation consultant with PA Consulting Group in Cambridge,
UK, recommends that manufacturing companies adopt a three-pronged strategy in
order that they can emerge from the downturn as winners. His strategy is:
create space; create agility; and create the future.
Create Space: Hatrick says that creating space can
yield savings in two ways: "In our experience with clients across a number
of sectors, optimising the product cost through a combination of improved
design and focusing on the supply chain can deliver savings of between 10 and
20 per cent. Secondly, reducing complexity across the product range, with
reductions in SKUs and raw materials/components, can have a significant impact
on direct costs as well as making savings in support functions such as
procurement and R&D." It is relatively straightforward to identify
potential savings, but the reality of implementation means that typically
two-thirds of this forecast saving will achieved.
Create Agility: Agility needs to be created both in the supply
chain and in the way the manufacturer innovates. "Companies with CDS
(customer-driven supply) at the heart of their supply chain strategy design
their supply chain to win the customer at the point of use or the point of
sale; the upstream supply chain is designed back from that point,"
Create the Future: In order to create a profitable future,
manufacturing businesses need to focus on identifying and developing strategic
growth platforms, and boosting the productivity of their innovation
To develop future growth platforms, it is vital to understand the new
for customers and consumers.
The article goes into much greater detail and
is written from an English perspective but is well worth the read. It brings
mind a book that I just recently finished The
Deciding Factor: The Power of Analytics to Make Every Decision a
Winner.In this book, it talks about the need to effectively
use the analytics available but more importantly how it is used to make
decisions. A quote from the review by Dave Kinnear "the Rational Taoist"
sums it up:
The authors use several high-profile companies to
put together case studies demonstrating the value of analytics or how the
absence of analytics caused poor decisions to be made. They point out that
there are several societal trends which require us to change our business
An increasingly Cashless Economy enables Tracking of More
Multiple Companies Sharing Data About Customers they have in
New Technologies being developed to Enable the Use of
Obtaining Data from Social Networking sites
Companies from emerging Markets Competing for their Share of
Both the book and the article goes into detail that these
customer metrics are becoming ever more important as we move to the the world
of what I call Marketing Singularity. Without automation and good analytics
even more important the understanding of the sea of data we may severely
are organization's future.
After reviewing these articles, I realized I have drifted away
from my Six Sigma Marketing thoughts in my blogging and what better tools are
there to help us understand all the data and analytics available to us.
I still use Voice of Customer, Voice of Market, SIPOC and a host of
tools not only help us understand data but help us distinguish what data is
important to us.
Summing it all up...Creating our future may be all about how
effectively we use and interpret the data available to us.
This article originally appeared on Business901.