Strategy

E.O.W (End of the Week) Notable Tip: Redesigning Business Models

Happy Friday!

I hope you’ve had a great week.

Today, I want to discuss business models. As we all know, changes in trends and customer behavior affects profit. Therefore, it is important that leaders stay abreast of trends that could affect their bottom-line and have solutions at the ready. They should also include non-customers into their value chain spectrum for the purpose of realizing profitable opportunities.

“Companies should redesign their business model every 4 to 5 years.”

 

I hope you’ve enjoyed this short tip and as always, “Success is continuous improvement.”

Advertisements

E.O.W (End of the Week) Notable Tip: Strategic Plan Performance

Happy Friday!

I hope you’ve had a great week.

Today, I want to end this week with key insights on strategic plan performance.

“Strategic plans should concentrate on critical success factors for the company, providing plans for closing the gaps between what the company is capable of doing versus what it needs to be able to do. Gap analysis is key to identifying areas for improving performance. Negative gaps require immediate corrective action to eliminate the root cause and improve performance toward the goal and narrow the gap. Positive gaps showing better than expected performance may encourage the company to take further action to enhance the gap. Lastly, it is critical to integrate a contingency plan in case of errors or significant changes in the market occur.”

 

As always, “Success is continuous improvement.”

 

Paid Tier Subscriptions based on consumer cooking levels can drive growth for Cooking Delivery Services

Cooking delivery services offer customers the convenience and adventure of trying new meals right at home. However, the offerings are very similar amongst all mayor players like Blue Apron, Plated and Marley Spoon. Fresh packaged ingredients, serving plans and delicious recipes is the main offering package. Blue Apron offers a wine subscription delivery plan and suggests wine per a customer’s meal choice which optimizes its value to customers.

However, there is an under-valued opportunity that I believe will really drive growth for these companies. By developing targeted tier paid subscriptions based on consumer cooking levels, lifestyle (fitness, vegan, et cetera), meal preparation time, dish type and ingredients will help them lure in non-customers and increase revenue.

For example, lets say a cooking delivery service wanted to target people who hate to cook or don’t have time to cook. They could offer a beginner paid subscription based on the consumer cooking capabilities with easy to follow educational video instructions, meal prep time categories, dish types, and lifestyle categories with upgrade options to intermediate, advanced and expert level cooking subscriptions. They could further optimize this by partnering with grocery stores and integrating a rewards system for users who complete and learn cooking skills (badges, coupons, et cetera).

This example demonstrates how understanding the non-customer can help companies realize common value factors between current customers and non-customers. By personalizing the cooking offering customers would be able to choose their preferred prep time, dish type (breakfast, lunch, dinner, et cetera) and lifestyle category, in turn, increasing overall satisfaction and value to the consumer.

Bringing Collaboration Into Business Strategy

 Companies that encourage collaboration of data from all departmental functions see improved forecasting and internal/external client data that can be used to achieve strategic goals. Sales, Marketing, Accounting, Production, and Procurement departments should be encourage to share data through cloud productivity solutions like Google Docs/Sheets. business-strategy-clip-art-clipart-strategy-ball-people-NVXx1H-clipart

However, this plethora of information can cause delays in decision making according to a Harvard Business Review article. Data that is analyzed in small batches and matched to critical strategy variables can be a best course of action to reducing the strategy process cycle time.

In other words, matching insights from small data batch analysis with strategic objectives and then proceeding with a strategy implementation framework. For example, say a business wants to increase revenue from 10 million to 20 million this year. When they analyze their data and use the voice of the customer, they realize that the customers that hate them want the software to load faster and integrate a picture feature for all their menu items so that their customers can see how their meal looks like before they order. The company then translates this customer requirement into product specification and increases their client base by 25%, in turn, reaching their goal and making their competitors run for their money.

The production team would also have to manage this new feature to client requirements and ensure load times stay at acceptable levels. A financial impact/financial modeling analysis is also required to provide top management a sense of what would drive the most revenue for the company.