The S.C.O.R. schema can guide you to find new ways to bring value to your customer, and survive today's race for share.
Dear Fellow Innovator,
In an economy that is not growing as we like,
pushing entire industries to consolidate,
the result is just one: a dramatic race for share.
This is happening e.g. into the turbo-machinery industry
where now there are only 3 players ( GE, Siemens, MHI )
screaming to squeeze out costs and grab orders out of the competitors' hands.
For their suppliers, the only way to continue to be in business
while margin shrinks and opportunities disappear
is to demonstrate to the Client to be worth his attention.
But doing more of the same is not an option
when the water in the pool is drained away.
It urges to find new ways to generate value for your customers.
Here may be of help a simple schema I use to find
new opportunities to serve a Client:
I call it S.C.O.R. and it stands for the 4 areas of Client's business
where I may help to add value:
First I look at ways I can improve Customer's SALES.
and because Sales = Price x Volumes, every time I can help to increase
Customer's differentiating factors or Customer's number of business opportunities
I am sure I get her attention.
Then I look at OPEX or her variable costs.
If my solution is able to reduce man-hours, energy costs, direct materials,
the Customer for sure will ask to know more.
When I arrive to CAPEX, it is all about to impact her investments,
and I do not refer only to equipment or buildings.
Also creating a new sales office on the other side of the Ocean is an investment.
Finally, and this is often overlooked by the Client, I focus my attention on RISKS.
Can I reduce the level of uncertainty of my Customer's business?
Can I improve the On Time Delivery, reduce Variance to Want, increase
her visibility on future opportunities, reduce the quantity of information unknown?
Any reduction in risk level is a reduction of financial interests paid by my Client.
And I am sure this will immediately affect her Cash and Profits.
You can refine this line of thoughts as deeply as you want,
I am sure the S.C.O.R. categories will guide you in finding new ways
to bring value to your customers.
And win the race for share, without surrender on margins.
To talk about how I used this in General Electric for the launch of new products,
or in some of its Suppliers, to gain penetration on GE and its competitors,
Just give me a call at +39 349 648 2225
(you have plenty of time: Now, at breakfast time, when you drive to work, wait at the airport...)
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