Raj: Customer Centric Business Model and Business planning Flashcards
what does being customer centric mean?
Using the customers position as the central focal point for all activities within the firm
what are the 2 main misconceptions about being customer centric?
- customer centricity is only about teh customer service
- It requires organisations to respond to all customer needs
what 4 key sectors do leaders need to be aware of to build a customer centric organisation?
1) Customer centricity model
2) company history and current situation
3) The business model and its parts
4) A roadmap
As companies move from a product focus to a customer focus, what opportunities are there to improve operations and engagement?
insight: getting customer data and analysing it
Strategy: implement new strategies within the different sectors
Business Design: At a smaller scale to improve customer expereince, sales models, management
Capabilities Development: develop the organisations ability to assess customers through every interaction
Deployment: deploy the customer centric strategy into all stages of the business
what questions would a customer centric business ask them selves before making decisions?
- Would we be proud to announce this decision to our customers or ashamed?
- Before this decision is made, have we used customer insight to inform our thinking?
- Is this decision going to take us towards or away from our target our target experience?
What is the point of a business model canvas? what does it show>
it describes the rationale of how an organisation creates, delivers and captures value
what is a multi sided business model?
this is when the offer (value proposition to the customer) is very tightly linked to the customer segment
what is the difference between business model and strategy?
Strategy; this is something that an organisation implements to keep a competitive advantage over a rival company
business model: This is a plan for how a business can successfully operate/runs
Give an example of 2 companies with the same business model but different strageies:
Walmart: large super market in US wanted to prioritise rural customers so built large supermarkets in rural areas with very cheap land that competitors were ignoring and stopped competitors getting into the market.
Kmart: another large supermarket wanted to appeal to everybody and in trying to do that was far less successful having a worse business strategy
What components make up a business model:
Customer: the individual customer segment that the product targets
Finance: A system of capturing value and turning the excess into profits
Capabilities: The resources combined across the business to deliver customer perceived value
Value proposition: The promise that a business makes to the customers regarding the product value
to summarise:
the customer, the product which the company produces, a promise of the product quality and the customer cash
What is the benefits of strategic planning?
- Improves organisation performance
- Its a counter to excessive inward and short term thinking
- It solves major issues at macro level
- It communicates to everybody what is most important
Explain the strategic Planning ABCDE model
A - Assessment (situational analysis of the current system using PESTL or SWOT)
B - Baseline (where are we going to look to find the performance gaps)
C - Components of strategy (have a vision and define a program to identify a strategy to close the performance gaps)
D - Deliver (What projects need to be paused or decommissioned to sort out/focus on the major issues)
E - Evaluate (Measure the performance to see if there has been any improvement in the performance)
This goes back to baseline as an iterative process
What is a method of continuous feedback to evaluate situations?
A balanced scorecard
What does a balanced score card tell an organisation?
split into 4 quadrants: Financial Customer relationship Internal Process Knowledge and growth
What do each of the quadrants in a score card make organisations consider?
financial: How do we look to our share holders?
Customers: How do our customers see us
processes: How well is our internal business running, in terms out output and quality
Knowledge and growth: How can the organisation improve and create further value
