Professional Documents
Culture Documents
1
The Main Areas
Evaluate other ways to benefit
From your existing assets
Re-engineering of your
ORGANISATION
SWAMI SOMESWARANADA 2
Exercise – 1, 2, 3, 4
Problem : As a small player, how can I survive as the government is decontrolling the reserved list for
SSIs?
Solutions : (1) Use your assets optimally and notice the hidden value of your organisation.
(2) Don’t get stuck with limited options. Notice other areas where you can flourish.
Problem : My present product/service does not sell much now-a-days. With limited resources I
can’t invest in a new business and I have huge sunk costs.
Solutions : You are not thinking about the extension of your product/service. Offer new things
based on your existing strength.
SWAMI SOMESWARANADA 3
Value-chain parts in the Process
Identify the value-chain parts in your
PRODUCTION-PROCESS
SWAMI SOMESWARANADA 4
Exercise – 5 & 6
Problem : Sometimes I feel that if I go for forward or backward integration., I may create
extra value in my business. But as an SSI, I can’t invest too much.
Solutions : (1) See whether by selling your non-core business you can put this extra
money to acquire the new step in creating more value.
(2) Otherwise, go for a long-term arrangement with your value-neighbors and
guiding them become an important player in that particular value-chain
point.
Problem : It is so difficult for an SSI to survive as it hat to fight alone. I have to remain as an
ancillary unit of a large Company, and thus I am dependant upon it.
Solutions : As an ancillary unit you enter into a long-term arrangement with your customer i.e.
the large Company, This will make you feel secured and he will help you in
developing system and technology.
Or, if it is not possible, develop a network of your own with others SSIs and make
them all business partners on long-term arrangement.
SWAMI SOMESWARANADA 5
PRODUCT
Differentiate your
PRODUCT
Develop 3 Product
variants Innovation
Portfolio of product at
different price points
Designing strategy
Customer to product
SWAMI SOMESWARANADA 6
Exercise – 7, 8, 9, 10
Problem : I am offering the same product at a cheaper rate because of competition. This is eating up
my margin
Solutions : Offer’s variants of your product : (a) low price # accepted quality; (b) moderate price #
moderate quality; (c) high price # high quality.
Problem : Other’s products sell, but not my product. Other’s make profit but I am unable.
Solutions : Compare, your product and price with others. Study – What stops the customers to
make more use of your products ?
Problem : Even if I innovate a new product, when customers accept it, others may imitate my product and
thus I may face competition.
Solutions : Customers do not want just a product but a total solution to their specific problem. So, you
develop a solution around your product; offer ways to improve customer’s job. Can you offer a
package ?
Problem : Sometimes I get confused. I do not understand what to offer. Even if I offer something better,
customers just refuse.
Solutions : Customers are interested in a solution that will help them. So, collect information from them to
know what exactly they need.
Take the case of a gadget used by housewives. Study the steps she hat to take in using that
gadget. Note the steps 1, 2, 3…….. Taken by her. Now can you make one or more steps more
convenient or simpler to help her ?
SWAMI SOMESWARANADA 7
CUSTOMERS
Re-define your
CUSTOMERS
Customer-mapping
(Who needs you ?)
New / Unusual
Customers
SWAMI SOMESWARANADA 8
Exercise – 11, 12, 13
Problem : How can I identify potential customers ?
Solutions : Focus on the question : Who needs me?
Do Customer-mapping.
Decide how you can move from one customer segment to
others.
SWAMI SOMESWARANADA 9
CHANNELS
Offer multiple
channels
SWAMI SOMESWARANADA 10
Exercise – 14, 15, 16
Problem : I find it very difficult to satisfy the retailers/distributors as I can’t give
much commission or margin.
Solutions : Devise multi-channel delivery system. Channel-option will help you to
become more cost-efficient and value-providing. (Books can be sold
through shops, Net, book clubs, mail orders, book exhibitions etc.)
Problem : As a small scale service provider, how can I start a new business ?
Solutions : Understand the process or supply chain of a group. Notice the weak link,
and offer your service there. (Through Govt. Postal department has vast
network connecting even remote villages, private courier service
Companies are doing a good business.)
Find out new intermediate steps for your new value-added steps.
SWAMI SOMESWARANADA 11
ORGANISATION
Re-engineering of your
ORGANISATION
SWAMI SOMESWARANADA 12
Exercise – 17, 18
Problem : How can I make my people more productive ?
Solutions : Infuse business spirit in them, through empowerment. This will
help them to add more value both in production and sales.
Instead of the present Pyramid structure, make it flat with
more and more profit-generating centers. Go for the Network
structure.
SWAMI SOMESWARANADA 13
Business Extension
Identify related
areas
Notice the solutions offered
By your product to
different
Focus on a new Strata of people
segment
SWAMI SOMESWARANADA 14
Exercise – 19
Problem : I have only product. I can’t afford to increase my
portfolio. How to go about this?
SWAMI SOMESWARANADA 15