Configurable products and services start with base elements that are then packaged, customized, or produced to customer or client specifications to allow the buyer choices that best fit their needs and make the complex process simple for the manufacturer or service supplier.
If you wanted to start a company that offered highly-configurable products, the worst business paradigm you could select would be engineer-to-order (ETO).
There is conventional thinking for durable competitive advantage during normal economic conditions, but I’ve added 2 action steps for durable competitive advantage during economic crisis, like this Covid-19 economic crisis.
Recurring Operating Challenges That Affect Customer Satisfaction and Profits
A decade ago, I wrote an article in Fast Company called We Offer It, You Buy It; Take It Or Leave It. Here’s how I kicked off that article: Does the headline of this article represent an attitude that customers are drawn to? It sounds like a customer strategy taken Read more…
The problems with off-the-rack CPQ software solutions are in what the software doesn’t address. The vendor application you chose is a small part of the solution.
Configurability and the back office black hole happens if no guidance is offered in the ordering process. Imagine going into a restaurant that merely tells you they serve “food.” They provide no insight into the type of food they serve. They simply ask you to tell them what you want. Read more…
Getting configurable customer orders right: “We are having problems getting the right parts delivered to support installation of the customers’ orders.”
If you watch television, it’s likely you’ve seen the commercials featuring Limu Emu and Doug promoting Liberty Mutual’s car insurance. The listener is told you can “customize your car insurance” by “only buying what you need.” What Liberty Mutual is doing isn’t unique, but positioning themselves as being able to Read more…
I’m often asked, “How do you make configurable products and services highly profitable?” Companies with configurable products or services often live with severe operational pain and gridlock. Many see the pain and low margins as a cost of doing business. Here are some questions to ponder: Which of the great Read more…
As an author, consultant, and someone who’s been in Silicon Valley for the birth of the most significant changes to industry, of our lifetime, I’ve decided to try another industry disruptor to publish my latest book, “The A La Carte Customer.” Who is this disruptor? It’s called Publishizer.