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8 Fork In The Road Business Questions

Daniel Newman

Fork In the Road

There’s an age-old saying in the business world: “What got you here, won’t get you there.” It relates to the continued search for how to take your business, yourself and your ideas to the next level.

When running a business it is normal to find yourself continuously inundated with the daily grind. That can be enough to keep any person busy for 12 hours a day.

However, if you do want to end up “there,” it is important that you not only do the right things day in and day out, but that you also ask the right business questions; of yourself, your customers, employees and everyone else in the value chain.

8 Business Questions

If you want to take your company to the next level, begin by asking yourself these eight business questions early and often:

  • What are we best at? It is surprising how many companies don’t truly know their core competency, or haven’t reflected on how it has changed over the past several years. This is critical to your business model and your success.
  • Who is our competition? Beyond just the obvious, are you aware of who your competitors are?
  • How is the competitive landscape changing? Are the competitors you’re identifying only those from the industry? How have new products, services and alternative offerings changed your competitive position in the market?
  • What do we do better than the competition? Do you know what truly makes your organization different? Equal doesn’t cut it anymore. What is your “differentiator”?
  • What does our competition do better than us? Every organization has a weakness. Do you know yours?
  • What change is sweeping the industry? Shift happens. Do you see the change that will have the biggest impact on your organization?
  • How do we prepare for and handle change? It is great to recognize the change. How do you handle it while making sure to keep everyone motivated and business prosperous?
  • What is next? This is perhaps the most important question of all.

Whether it is in the sales process, or in the planning process, we have to focus on asking the right people the right business questions. Without taking the time to figure out what will get you “there,” you will find yourself stuck at “here.” If you are going to operate in neutral, you may as well just floor it in reverse.

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About Daniel Newman

Daniel Newman serves as the Co-Founder and CEO of EC3, a quickly growing hosted IT and Communication service provider. Prior to this role Daniel has held several prominent leadership roles including serving as CEO of United Visual. Parent company to United Visual Systems, United Visual Productions, and United GlobalComm; a family of companies focused on Visual Communications and Audio Visual Technologies. Daniel is also widely published and active in the Social Media Community. He is the Author of Amazon Best Selling Business Book "The Millennial CEO." Daniel also Co-Founded the Global online Community 12 Most and was recognized by the Huffington Post as one of the 100 Business and Leadership Accounts to Follow on Twitter. Newman is an Adjunct Professor of Management at North Central College. He attained his undergraduate degree in Marketing at Northern Illinois University and an Executive MBA from North Central College in Naperville, IL. Newman currently resides in Aurora, Illinois with his wife (Lisa) and his two daughters (Hailey 9, Avery 5). A Chicago native all of his life, Newman is an avid golfer, a fitness fan, and a classically trained pianist

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The Future Of Supplier Collaboration: 9 Things CPOs Want Their Managers To Know Now

Sundar Kamak

As a sourcing or procurement manager, you may think there’s nothing new about supplier collaboration. Your chief procurement officer (CPO) most likely disagrees.
Forward-thinking CPOs acknowledge the benefit of supplier partnerships. They not only value collaboration, but require a revolution in how their buying organization conducts its business and operations. “Procurement must start looking to suppliers for inspiration and new capability, stop prescribing specifications and start tapping into the expertise of suppliers,” writes David Rae in Procurement Leaders. The CEO expects it of your CPO, and your CPO expects it of you. For sourcing managers, this can be a lot of pressure.

Here are nine things your CPO wants you to know about how supplier collaboration is changing – and why it matters to your company’s future and your own future.

1. The need for supplier collaboration in procurement is greater than ever

Over half (65%) of procurement practitioners say procurement at their company is becoming more collaborative with suppliers, according to The Future of Procurement, Making Collaboration Pay Off, by Oxford Economics. Why? Because the pace of business has increased exponentially, and businesses must be able to respond to new market demands with agility and innovation. In this climate, buyers are relying on suppliers more than ever before. And buyers aren’t collaborating with suppliers merely as providers of materials and goods, but as strategic partners that can help create products that are competitive differentiators.

Supplier collaboration itself isn’t new. What’s new is that it’s taken on a much greater urgency and importance.

2. You’re probably not realizing the full collective power of your supplier relationships

Supplier collaboration has always been a function of maintaining a delicate balance between demand and supply. For the most part, the primary focus of the supplier relationship is ensuring the right materials are available at the right time and location. However, sourcing managers with a narrow focus on delivery are missing out on one of the greatest advantages of forging collaborative supplier partnerships: an opportunity to drive synergies that are otherwise perceived as impossible within the confines of the business. The game-changer is when you drive those synergies with thousands, not hundreds of suppliers. Look at the Apple Store as a prime example of collaboration en masse. Without the apps, the iPhone is just another ordinary phone!

3. Collaboration comes in more than one flavor

Suppliers don’t just collaborate with you to provide a critical component or service. They also work with your engineers to help ensure costs are optimized from the buyer’s perspective as well as the supplier’s side. They may even take over the provisioning of an entire end-to-end solution. Or co-design with your R&D team through joint research and development. These forms of collaboration aren’t new, but they are becoming more common and more critical. And they are becoming more impactful, because once you start extending any of these collaboration models to more and more suppliers, your capabilities as a business increase by orders of magnitude. If one good supplier can enable your company to build its brand, expand its reach, and establish its position as a market leader – imagine what’s possible when you work collaboratively with hundreds or thousands of suppliers.

4. Keeping product sustainability top of mind pays off

Facing increasing demand for sustainable products and production, companies are relying on suppliers to answer this new market requirement.

As a sourcing manager, you may need to go outside your comfort zone to think about new, innovative ways to collaborate for achieving sustainability. Recently, I heard from an acquaintance who is a CPO of a leading services company. His organization is currently collaborating with one of the largest suppliers in the world to adhere to regulatory mandates and consumer demand for “lean and green” lightbulbs. Although this approach was interesting to me, what really struck me was his observation on how this co-innovation with the supplier is spawning cost and resource optimization and the delivery of competitive products. As reported by Andrew Winston in The Harvard Business Review, Target and Walmart partnered to launch the Personal Care Sustainability Summit last year. So even competitors are collaborating with each other and with their suppliers in the name of sustainability.

5. Co-marketing is a win-win

Look at your list of suppliers. Does anyone have a brand that is bigger than your company’s? Believe it or not, almost all of us do. So why not seize the opportunity to raise your and your supplier’s brand profile in the marketplace?

Take Intel, for example. The laptop you’re working on right now may very well have an “Intel inside” sticker on it. That’s co-marketing at work. Consistently ranked as one of the world’s top 100 most valuable brands by Millward Brown Optimor, this largest supplier of microprocessors is world-renowned for its technology and innovation. For many companies that buy supplies from Intel, the decision to co-market is a strategic approach to convey that the product is reliable and provides real value for their computing needs.

6. Suppliers get to choose their customers, too

Increased competition for high-performing suppliers is changing the way procurement operates, say 58% of procurement executives in the Oxford Economics study. Buyers have a responsibility to the supplier – and to their CEO – to be a customer of choice. When the economy is going well, you might be able to dictate the supplier’s goods and services – and sometimes even the service delivery model. When times get tough (and they can very quickly), suppliers will typically reevaluate your organization’s needs to see whether they can continue service in a fiscally responsible manner. To secure suppliers’ attention in favorable and challenging economic conditions, your organization should establish collaborative and mutually productive partnerships with them.

7. Suppliers can help simplify operations

Cost optimization will always be one of your performance metrics; however, that is only one small part of the entire puzzle. What will help your organization get noticed is leveraging the supplier relationship to innovate new and better ways of managing the product line and operating the business while balancing risk and cost optimization. Ask yourself: Which functions are no longer needed? Can they be outsourced to a supplier that can perform them better? What can be automated?

8. Suppliers have a better grasp of your sourcing categories than you do

Understand your category like never before so that your organization can realize the full potential of its supplier investments while delivering products that are consistent and of high quality. How? By leveraging the wisdom of your suppliers. To be blunt: they know more than you do. Tap into that knowledge to gain a solid understanding of the product, market category, suppliers’ capabilities, and shifting dynamics in the industry, If a buyer does not understand these areas deeply, no amount of collaboration will empower a supplier to help your company innovate as well as optimize costs and resources.

9. Remember that there’s something in it for you as well

All of us want to do strategic, impactful work. Sourcing managers with aspirations of becoming CPOs should move beyond writing contracts and pushing PO requests by building strategic procurement skill sets. For example, a working knowledge in analytics allows you to choose suppliers that can shape the market and help a product succeed – and can catch the eye of the senior leadership team.

Sundar Kamak is global vice president of solutions marketing at Ariba, an SAP company.

For more on supplier collaboration, read Making Collaboration Pay Off, part of a series on the Future of Procurement, by Oxford Economics.

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Transform Or Die: What Will You Do In The Digital Economy?

Scott Feldman and Puneet Suppal

By now, most executives are keenly aware that the digital economy can be either an opportunity or a threat. The question is not whether they should engage their business in it. Rather, it’s how to unleash the power of digital technology while maintaining a healthy business, leveraging existing IT investments, and innovating without disrupting themselves.

Yet most of those executives are shying away Businesspeople in a Meeting --- Image by © Monalyn Gracia/Corbisfrom such a challenge. According to a recent study by MIT Sloan and Capgemini, only 15% of CEOs are executing a digital strategy, even though 90% agree that the digital economy will impact their industry. As these businesses ignore this reality, early adopters of digital transformation are achieving 9% higher revenue creation, 26% greater impact on profitability, and 12% more market valuation.

Why aren’t more leaders willing to transform their business and seize the opportunity of our hyperconnected world? The answer is as simple as human nature. Innately, humans are uncomfortable with the notion of change. We even find comfort in stability and predictability. Unfortunately, the digital economy is none of these – it’s fast and always evolving.

Digital transformation is no longer an option – it’s the imperative

At this moment, we are witnessing an explosion of connections, data, and innovations. And even though this hyperconnectivity has changed the game, customers are radically changing the rules – demanding simple, seamless, and personalized experiences at every touch point.

Billions of people are using social and digital communities to provide services, share insights, and engage in commerce. All the while, new channels for engaging with customers are created, and new ways for making better use of resources are emerging. It is these communities that allow companies to not only give customers what they want, but also align efforts across the business network to maximize value potential.

To seize the opportunities ahead, businesses must go beyond sensors, Big Data, analytics, and social media. More important, they need to reinvent themselves in a manner that is compatible with an increasingly digital world and its inhabitants (a.k.a. your consumers).

Here are a few companies that understand the importance of digital transformation – and are reaping the rewards:

  1. Under Armour:  No longer is this widely popular athletic brand just selling shoes and apparel. They are connecting 38 million people on a digital platform. By focusing on this services side of the business, Under Armour is poised to become a lifestyle advisor and health consultant, using his product side as the enabler.
  1. Port of Hamburg: Europe’s second-largest port is keeping carrier trucks and ships productive around the clock. By fusing facility, weather, and traffic conditions with vehicle availability and shipment schedules, the Port increased container handling capacity by 178% without expanding its physical space.
  1. Haier Asia: This top-ranking multinational consumer electronics and home appliances company decided to disrupt itself before someone else did. The company used a two-prong approach to digital transformation to create a service-based model to seize the potential of changing consumer behaviors and accelerate product development. 
  1. Uber: This startup darling is more than just a taxi service. It is transforming how urban logistics operates through a technology trifecta: Big Data, cloud, and mobile.
  1. American Society of Clinical Oncologists (ASCO): Even nonprofits can benefit from digital transformation. ASCO is transforming care for cancer patients worldwide by consolidating patient information with its CancerLinQ. By unlocking knowledge and value from the 97% of cancer patients who are not involved in clinical trials, healthcare providers can drive better, more data-driven decision making and outcomes.

It’s time to take action 

During the SAP Executive Technology Summit at SAP TechEd on October 19–20, an elite group of CIOs, CTOs, and corporate executives will gather to discuss the challenges of digital transformation and how they can solve them. With the freedom of open, candid, and interactive discussions led by SAP Board Members and senior technology leadership, delegates will exchange ideas on how to get on the right path while leveraging their existing technology infrastructure.

Stay tuned for exclusive insights from this invitation-only event in our next blog!
Scott Feldman is Global Head of the SAP HANA Customer Community at SAP. Connect with him on Twitter @sfeldman0.

Puneet Suppal drives Solution Strategy and Adoption (Customer Innovation & IoT) at SAP Labs. Connect with him on Twitter @puneetsuppal.

 

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About Scott Feldman and Puneet Suppal

Scott Feldman is the Head of SAP HANA International Customer Community. Puneet Suppal is the Customer Co-Innovation & Solution Adoption Executive at SAP.

4 Ways to Digitally Disrupt Your Business Without Destroying It

Christopher Koch

To learn more about how to disrupt your business without destroying it, read the in-depth report Digital Disruption: When to Cook the Golden Goose.

Download the PDF (1MB)

 

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About Christopher Koch

Christopher Koch is the Editorial Director of the SAP Center for Business Insight. He is an experienced publishing professional, researcher, editor, and writer in business, technology, and B2B marketing.

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Digital Transformation Needs More Than Technology

Andreas Hauser

Digital transformation is a hyped-up topic these days. But it is much more than a buzzword. Technology trends like hyper-connectivity, Big Data, cloud, Internet of Things, and security provide new opportunities for companies to re-imagine their business and how they engage with their customers and users.

But what happens if you develop an amazing technical solution that people cannot use?

Let me tell you a story.

On a business trip recently, I had an experience that some of you might have also encountered from time to time. I wanted to enter the parking garage of a hotel and had to get a parking ticket to get in — sounds simple. The machine looked pretty modern. It had an integrated monitor and several buttons on the side. First I touched the screen, but nothing happened — it was not a touchscreen. Then I pressed some buttons on the side, and again, nothing happened. The rounded button at the bottom finally got me a ticket. Great technical solution … but not usable.

Endurance testing experiences like this one are actually easily preventable when taking into consideration human needs (desirability). This makes very clear that we need to connect three elements—viability, feasibility, and desirability—to be successful and remain competitive in the digital era.

Wikipedia defines digital transformation as “application of digital technology in all aspects of human society.” This is why companies with the most successful digital transformations have focused on people and applied a design-led approach.

One company that has excelled at creating a pleasant experience is Uber. Their app not only tells you how long it will take the car to arrive, but you can also watch the arrival on your mobile device. I like the user interface. But here’s what I personally like most about the Uber experience: You get out of the car, keep your mobile phone in your pocket, do nothing, pay automatically without thinking about how much you need to tip the driver, and get the receipt via e-mail.

That is the difference between simply focusing on the user interface and providing a great customer and user experience. To design and develop such a solution, you need to know what people really desire. Technology certainly plays a very important role to make this experience a reality, and you must be clear about the business model.

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Design-led digital transformation means leveraging breakthrough technology trends, re-imaging business processes and business models, and re-imaging the customer and user experience to achieve design-led innovations.

In today’s digital economy, companies understand that the experience their customers and users have must be the core focus of its brand and survival. Customers and users drive the current and future state of any business. Products and services, whether they are delivered to internal or external customers, must create a value for them and the company. Therefore, customers and users need to be an integral part—not an afterthought—of the entire product development process.

Design thinking to focus on human needs

To better understand what that experience can be, companies are using design thinking – a human-centered approach to innovation – and are putting the customer and user into the center of all activities. Design thinking focuses on human needs, problem finding, working in inter-disciplinary teams across the innovation lifecycle, and a fail-fast, fail-early approach.

My observation from about 500 customer projects is that more and more IT organizations are starting to apply design thinking within their organization. They are hiring designers to better understand the needs of their customers and users and are translating these needs into an experience design. In the past, they simply collected requirements from the business and implemented functions, features, and business processes. This was sufficient in last-decade enterprises, but consumerization of IT requires re-thinking of this approach.

Create business value with human-centered design

The goal is to create business value by engaging with customers and users throughout the end-to-end process—from discovery to design to delivery—and apply design thinking combined with agile methodologies. It is not about simply creating a cool design; rather it is all about creating business value and outcomes.

To do this, business and IT need to work hand in hand to take the company toward that single consumer’s experience.Slide2.JPG

Let’s look at an example.

As part of its business strategy, Mercedes-AMG, the sports car brand of Mercedes-Benz, aimed to increase its production drastically while keeping the excellent quality standards that have always characterized its products. In a co-innovation project, we have engaged on an intensive research plan and applied the principles of design thinking and agile software development to bring the Mercedes-AMG vision to life: a customizable collaborative planning solution that supports cross-functional competence teams and increases efficiency during the three-year production process. The solution, based on SAP HANA, provides access to relevant data in a holistic way and enables a seamless team collaboration in the remodeled process. One of the key success factors was engaging with users throughout the entire process by observing how they work and iterating on solutions with them.

Digital transformation is a journey, not just a one-time project. Ultimately, enterprises want to prepare their organization for sustainable design-led digital transformation.

So how can you embrace the human aspect of design in your digital transformation? This is our credo: Apply design thinking to engage with your customers and most importantly, with users, right from the beginning, in an iterative, user-centric design process.

If you are interested in more customer stories, check out the UX Design Services website. You can also find more information in this presentation, or check out this video recording.

This article originally appeared on SAP Business Trends.

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Andreas Hauser

About Andreas Hauser

Andreas is global head of the design and co-innovation center at SAP. His team drives customer & strategic design projects through Co-Innovation and Design Thinking. Before he was Vice President of User Experience at SAP SE for OnDemand Solutions.