AIM Archives - Tag: quality

Most suppliers expect to grow faster than their served markets. This is usually fanciful thinking.

207-Fanciful-Thinking

On average, you and your competitors will grow at the same rate as the markets you serve. Don’t feel entitled to this. If a competitor develops a blockbuster, you’ll be happy to minimize your sales decline. Thinking otherwise is like 1970’s Detroit auto-makers assuming Japanese competitors would keep producing junk.

More in white paper, Catch the Innovation Wave (page 15).

Is it “overkill” to apply advanced B2B customer insight? Was Japanese auto quality overkill?

169 Overkill 2

I worked in manufacturing in the 1970s, when it seemed like “overkill” to train operators in statistics for quality control. But this is expected today. I met Dr. Deming in the 1980’s and heard him say, “It is not necessary to change. Survival is optional.”  Compared to statistics, the science of B2B customer insight is quite simple. Will you be GM or Toyota in the innovation wave?

More in white paper, Catch the Innovation Wave (page 12).

A supplier’s only path to profitable, sustainable growth is customer value creation.

101 One Path 1

Nothing you do within your operation will achieve such growth, unless customer value is also created. With operational efficiency alone, you’re in a race to the bottom. Quality and productivity improvements are important… but in isolation eventually lead to commoditization, as you and competitors approach a point of diminishing returns.

More in white paper, Catch the Innovation Wave (page 9).

Fixate on the only source of unlimited potential, not sources of diminishing return.

12-Diminishing-Returns

Unlike innovation, quality and productivity apply to current operations and yield diminishing returns. What do you do after you reach zero defects… or your factory is being run by the proverbial “man and a dog”? (The man feeds the dog; the dog bites the man if he touches the controls.) Customer-facing innovation is different. There is no limit. Just look at Apple Computer.

More in white paper, Catch the Innovation Wave (page 2)