Potential opportunities always surround leaders. It is up to them to pounce on those or regret overlooking them, when someone else takes advantage of them.
Leaders’ personal beliefs and assumptions often clash reality. The trait is categorized as “confirmation bias” in Psychology, where individuals pick the data that supports their existing opinions and approaches and doubt information which defies their mindsets. Leadership needs to develop themselves to the level to consider the slight hints of the opportunities surrounding them.
There are 10 hidden strategic opportunities that—exist in all businesses and geographies but—are often overlooked by the leadership due to personal biases. These opportunities go unnoticed because they are often disguised in the form of anomalies and contradictions to leaders’ existing beliefs and assumptions. It’s up to the leaders to control personal bias; explore anomalies; and develop capabilities to uncover and seize these 10 Hidden Strategic Opportunities before rivals do.
In this article, we will discuss the first 3 strategic opportunities.
Opportunity 1: Assuming a product already exists, but actually it doesn’t.
Most people assume that a certain product already exists. Its only when an organization ventures into that segment—with a new value proposition—that people realize that there was a void there. Such gaps are there in almost all industries, but only visionaries are able to recognize and capitalize on them—through innovation and creative product development. A number of well-known inventions—e.g., tablet computers—were thought to have already existed, but actually didn’t.
For instance, Kate Brosnahan, accessories editor for Mademoiselle magazine, realized in the 1990s that the handbag market lacked stylish yet economical functional bags. The market at the time was replete with expensive but impractical bags from top designers and functional bags deficient in style. Kate left her job and founded Kate Spade LLC, with her partner Andy Spade. Together they began creating fabric handbags which were practical as well as trendy. Soon, their products started getting appreciation from customers, including media icons.
Opportunity 2: Customer Experience should be anything but strenuous, costly, or irritating (but most of the time it is).
Fragmented and delayed customer experience results in customer churn. Annoyance caused by poor Customer Experience presents potential strategic opportunity to win customers by fixing it. They are able to see the bigger picture and strive hard to relieve customers’ aggravation and offer exemplary Customer Experience.
For instance, creation of Netflix Inc. was the result of Reed Hastings having to pay a fine of $40 as late fee for a rented video cassette he had lost. Leading organizations, such as Netflix, offer quality offerings and provide their customers seamless, quick, and pleasing experiences.
Opportunity 3. An item is often priced low only because not many people know about it.
Hidden merits of a location offers an opportunity for sharp people to invest in for future appreciation. One of the reasons for inexpensive resources or items is the lack of their awareness and cognizance of their true potential among people. When people recognize the potential of a property or resource, its price rises steeply.
Interested in learning more about the other hidden strategic opportunities? You can download an editable PowerPoint on 10 Hidden Strategic Opportunities here on the Flevy documents marketplace.
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Today’s customers are better informed, better connected, and more demanding than ever before. CEOs are now concerned about Customer Loyalty and they recognize that mastery of the customer agenda is essential. In fact, global leaders of successful businesses recognize that creating a customer-centric, digitally-transformed business is a top priority.
In this age of digital disruption, how can organizations engage customers, increase Customer Loyalty, and achieve profitable growth? What is most appropriate when it comes to Customer-centric design?
Almost every market is experiencing a fundamental change. Consumer expectations have shifted and digital technologies are making the biggest impact on businesses large and small since the start of the information age. Ultimately, businesses need to navigate the challenges of digital disruption and find new ways to create economic value and drive growth.
The challenge today is what it takes for organizations to be a Customer-centric Organization.
Unraveling the 6 Core Capabilities of a Customer-centric Organization
A Customer-centric Organization must have 6 Core Capabilities to compete in the Digital Age. In this global time, customer-centricity ceases to be a differentiator. It has become a matter of survival.
The first 2 Core Capabilities are Customer-directed. These are Customer Strategy and Customer Experience (CX).
- Customer Strategy. The first core capability, Customer Strategy is focused on addressing changing customer needs and behavior. It involves the development of a clear view of customer behavior and intentions using data and analytics. Customer Strategy can be applied in several ways. It can be used to refine and develop a proposition or even inform major investments in new media content.
- Customer Experience (CX). Customer Experience (CX) is that core capability that generates a significant competitive advantage – a double revenue growth against industry counterparts. It is being able to respond to customer needs balanced with understanding the values customers bring to the enterprise. The world’s most advanced customer businesses often undertake customer journey mapping and experience design which are critical to executing customer-centric change.
The second 2 Core Capabilities focus on front office capability and across the enterprise value chain. These are Sales & Service Transformation and Connected Enterprise.
- Sales & Service Transformation. As the third core capability, Sales & Service Transformation is essential to becoming a customer-responsive business. This is a newly digitized and fully integrated front office capability that can attract, engage, acquire, and continually engage with customers. With the modernization and transformation of front office functions, Marketing, Sales, and Service teams get to have better ideas on how to work together more effectively. This leads to a full end-to-end Business Transformation. A core concept to Service Transformation is the development of Service 4.0 capabilities.
- Connected Enterprise. Focused on delivering differentiated Customer Experiences, Connected Enterprise is an architecture of fundamental capabilities that work across the Enterprise Value Chain, from back office operations through customer-facing interactions. The application of Connected Enterprises has led to companies experiencing an increase in annual revenue and a positive return on investment.
The third 2 Core Capabilities are Data & Analytics and Digital Transformation — your company’s response to a highly demanding digital market.
- Data & Analytics. The fourth core capability is Data & Analytics. This core capability is focused on creating actionable insights that drive profitable growth. With the use of Data & Analytics, it can uncover patterns of customer behavior, relevant social media influencers, and channel preferences. It is useful in personalizing propositions, channels, marketing communication, and the experiences offered to customers.
- Digital Transformation. The sixth core capability, this is the core capability that can power new ways to engage customers, optimize operations, and transform products. Digital Transformation is delivering the right customer and digital technology. With the advent of virtual reality, augmented reality headsets, the Internet of Things, AI, and cognitive computing, it has changed the way customer-centric companies engage customers. Digital Transformation is not an overnight event. This is a series of incremental steps, each delivering a concrete business advantage.
Developing the 6 Core Capabilities is no easy task. It can be pretty challenging. Companies need to have a good handle of its key challenges and the right approaches to mastering the 6 Core Capabilities. When this is achieved, the high road to global competitiveness is achieved.
Interested in gaining more understanding of these 6 core Capabilities of a Customer-centric Organization? You can learn more and download an editable PowerPoint about the 6 Core Capabilities of a Customer-centric Organization here on the Flevy documents marketplace. There is a series of 3 presentations – Part I, Part II, and Part III that discusses all 6 Core Capabilities.
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