Business World on Gautam Mahajan’s Book, Value Creation

Posted April 15, 2017 by Customer Value Foundation
Categories: Business & Management

Tags: , , ,

Here is an excellent review on Gautam Mahajan’s book on Value Creation written by Nitin Motwani,Co- founder and CTO of Bookmyforex.com

He says:

“The funding frenzy that we recently witnessed in the Indian startup scene has caused several companies to focus on short-term objectives instead of focusing on creating sustainable value. The massive influx of funds in the recent past has caused the mind-set of many existing and aspiring entrepreneurs alike to focus on glorified yet unimportant metrics such as GMV and valuation.

Value Creation: The Definitive Guide for Business Leaders (Sage) by Gautam Mahajan reminds us that businesses today need to focus on value enhancing practices to build a long-lasting enterprise.

The defining quality of the book is that it is not restricted to a linear perspective, but covers an array of synergistic elements that collectively create value within an enterprise. Transformation, as mentioned in ‘Business Transformation Ideas for CEOs to Create Value’, is extremely important to maintain relevance with the market. Even if a particular organisation is the market leader in its domain, its resistance to change can be its downfall. Leading organisations have been replaced by relatively younger ones due to former’s resistance to change. Mahajan also advocates practices that help an enterprise to deliver optimum results, including the development of individual accountability of business leaders and managers rather than maintaining an inclination towards a ‘self-serving bias’.

The systematic progression of the book enables the reader to understand what a customer-oriented business strategy is and how it stands apart from conventional approaches. The account of the market and topic-wise depiction of examples make for a pleasurable read while also educating the reader about the most important business principles. The analysis of business processes in the book prompt ingenious ideas that the reader can exercise to increase productivity. Interesting anecdotes make the book even more engaging. One such example is that of Karl Slym, ex-MD, Tata Motors, who “got 357 ideas just by talking to TCS employees, many of whom were his customers”.

The book also stresses on shifting from an assessment based on financial assets and performance towards other more promising priority areas that include human capital, organisational capital, knowledge and information capital, etc., to develop higher value for an organisation.

The book highlights the typical behaviour and pre-dispositions that ultimately leads to value destruction and suggests that businesspersons avoid them completely. It defines the roles of various key players in the value creation process, including HR, CIOs, CFOs and explains how to leverage these valuable resources effectively. Mahajan, with his vast experience, has managed to extract the most important lessons for entrepreneurs to truly connect with their customers and to use that as a basis to derive value for the organization as whole”.

Would love your comments and help. We are happy to help others in education and executive education on courses in Value Creation.

 

Gautam Mahajan,
President, Customer Value Foundation and Inter-Link India

Founder editor, Journal of Creating Value jcv.sagepub.com
K-185 Sarai Jullena, New Delhi 110025
+91 98100 60368, 011-26831226
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
http://www.interlinkindia.net

Twitter @ValueCreationJ

Customer Value Foundation (CVF) helps companies to Create Value and profit by Creating Value for the Customers, employee and for each person working with the companies.

Total Customer Value Management (Total CVM) transforms the entire company to focus on Creating Value for the Customer by aligning each person’s role in Creating Customer Value and getting shareholder wealth and Value.

The Virtual Company

Posted March 28, 2017 by Customer Value Foundation
Categories: Business & Management

Purchasing professionals are focused on adding value to their companies, and so are sales and marketing professionals selling to them. All this will change with the Virtual Company.

Some time ago I wrote about the anonymous company. That companies hide behind the inanimate idea of a company. It has no heart, no soul. It is as if the humans in the company have let go of their humanity to the clutches of efficiency and corporate profits. The more virtual we become, the more virtuous we will be.

The company (read its people) are driving it to a robotic virtual existence, where the emotional connect has to come from the brand, the product or the customer eco system, discussing the pros and cons of the company and its products.

In so doing, the cleverness of the company comes from making the Customers believe this is best for them, this is good for them, and in making them conform. Some conform because they have no choice, others because they don’t care (read apathy or inertia). But a large proportion adapt because they believe they are first movers, they believe they belong; they believe they are in control, (what the company is trying to depict)

The company will have virtual vendors, virtual partners, virtual supply chain and virtual shareholders; a state of perpetual motion trying to make society virtual.

But we humans are in the clutches of the virtual company. All is well till something goes wrong. What is your recourse? Whom do you talk to? Where do you take your complaints? Where do you get justice?

Companies will tell you are getting a great experience. I think in the future, marketing will focus on the emotional part of the customer, and also on the neural suggestive marketing

Do you believe it? Do you want it?

This will lead to virtual parents, virtual children, all in one great amorphous cloud, an amorphous society with all boundaries blurred. The Customer becomes also the employee and the owner, and perhaps this gives him an emotional connect.

What then, will happen to real people?

Would love your comments and help. We are happy to help others in education and executive education on courses in Value Creation.

 

 Gautam Mahajan,
President, Customer Value Foundation and Inter-Link India

Founder editor, Journal of Creating Value jcv.sagepub.com
K-185 Sarai Jullena, New Delhi 110025
+91 98100 60368, 011-26831226
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
http://www.interlinkindia.net

Twitter @ValueCreationJ

Customer Value Foundation (CVF) helps companies to Create Value and profit by Creating Value for the Customers, employee and for each person working with the companies.

Total Customer Value Management (Total CVM) transforms the entire company to focus on Creating Value for the Customer by aligning each person’s role in Creating Customer Value and getting shareholder wealth and Value.

Co-Create Value with Your Suppliers and Partners

Posted March 4, 2017 by Customer Value Foundation
Categories: Business & Management

Tags: , , , , ,

Purchasing professionals are focused on adding value to their companies, and so are sales and marketing professionals selling to them.

Both of these professionals, however, focus on price or cost as the major source of value creation for their companies. Sales professionals want to discuss their value proposition, but the discussion often deteriorates into a price one.

Assuming both purchasing and selling companies recognise that mutual value and partnership has to be created, could they not discuss and negotiate this? Could they not discuss how to co-create value? Could they not agree that value creation is what additional the supplier should give at what price?

Let’s start with generally what the thinking is:

I am adding value to the supplier by buying from it (help him fill out capacity, help him make money); how much can we get by outsourcing to the supplier versus making on our own (and we do not fully price our self-manufacture).

My role is to increase total profit (not just reducing total cost of acquisition). Shouldn’t I look at the total value added? Shouldn’t the supplier do this? Does the supplier understand what creates value for the buyer?

Both these negotiating parties must understand that there has to be a sharing of value, and a co-creation of value.

How do you go about doing this? A Value Co-Creation Model is shown below

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The Financial and non-Financial benefits are shown below:

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The Financial benefit chart shows higher profits due to better collaboration and fewer delays and mistakes, sharing of profits (reduced price to start with profit incentives), lower costs for changes, spares, inventories etc.

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The Non-Financial benefits include happier employees/bosses, reduced time to market, happier customers, better acceptance and so forth.

Isn’t this a better model than just beating down the supplier on price, and trying to commoditise his offering? Build your Value chain!

Go from a supplier evaluation to a partnership collaboration.

Its just traditional thinking that prevents this shift in organizational behaviour.

If you cannot do this, then maybe an artificial intelligence system to buy and sell based on value (benefits –price) should replace the human purchasing person, as co-created value and collaborations are not required and price is king!

Customer Value Foundation are experts at co-creation of value: Mahajan@customervaluefoundation.com

Would love your comments and help. We are happy to help others in education and executive education on courses in Value Creation.

 

 

Gautam Mahajan,
President, Customer Value Foundation and Inter-Link India

Founder editor, Journal of Creating Value jcv.sagepub.com
K-185 Sarai Jullena, New Delhi 110025
+91 98100 60368, 011-26831226
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
http://www.interlinkindia.net

Twitter @ValueCreationJ

Customer Value Foundation (CVF) helps companies to Create Value and profit by Creating Value for the Customers, employee and for each person working with the companies.

Total Customer Value Management (Total CVM) transforms the entire company to focus on Creating Value for the Customer by aligning each person’s role in Creating Customer Value and getting shareholder wealth and Value.

CustomerThink Names 12 Global Thought Leaders as Advisers for 2017

Posted January 25, 2017 by Customer Value Foundation
Categories: Business & Management

CustomerThink, the world’s largest online community focused on Customer-centric Business, has named 12 global thought leaders as Advisors.

Advisors write columns exclusively for CustomerThink on topics critical to the editorial strategy, including analytics, customer experience, customer service, employee engagement, innovation, marketing, and value creation.

These experts are exceptionally well qualified to help executives understand how to create a successful customer-centric business in today’s challenging market conditions, where it’s essential to deliver differentiating experiences that create value for customers and the business. CustomerThink founder/CEO Bo Thompson says, “My sincere thanks to the Advisors for contributing their insights to help business leaders understand how to succeed with customer-centric business management.”

One of CustomerThink’s top-ranked authors and a founding Advisor in 2014 is Michael Lowenstein, Thought Leadership Principal at Beyond Philosophy. According to Dr. Lowenstein, who will be writing about the connection between employee and customer experience in 2017, “Perspectives from CustomerThink Advisors are a respected and highly authoritative resource for everyone involved in Customer Experience, helping organizations build more stakeholder-centric cultures. I am pleased to be among these contributors, where we can share insights and engage with the CustomerThink community.”

The complete list of Advisors, with their 2017 column topics, is as follows:

Ian Golding, Customer Experience Consultancy Ltd. (United Kingdom)
“Building Skills for Customer Experience Leadership”

  • Lynn Hunsaker, ClearAction (United States)
    “Keys to Customer-Centered Business”
  • Michael Lowenstein, Beyond Philosophy (United States)
    “Connecting Employee and Customer Experience”
  • Gautam Mahajan, Customer Value Foundation (India)
    “Customer Value — Step-By-Step Guide”
  • Nancy Porte, Verint (United States)
    “A CX Practitioner’s Playbook”
  • Bill Price, Antuit (United States)
    “Applying Analytics to Improve Customer Experience”
  • Ernan Roman, ERDM (United States)
    “Innovation in Personalization and CX”
  • Chris Ryan, Fusion Marketing Partners (United States)
    “Optimizing the B2B Lead-to-Revenue Process”
  • Krista Sheridan, TELUS (Canada)
    “How to Build a Culture that Empowers Your CX Vision”
  • Tony Ulwick, Strategyn (United States)
    “How to Innovate Using Jobs-To-Be-Done Theory”
  • Jeremy Watkin, FCR (United States)
    “Service Excellence in the Contact Center — People and Technology”
  • Thomas Wieberneit, aheadCRM/Epikonic (New Zealand)
    “Artificial Intelligence Trends and Applications”

A new Advisor for 2017, Christopher Ryan, CEO of Fusion Marketing Partners, will focus on how to optimize the B2B lead-to-revenue process. Mr. Ryan says that “CustomerThink should be commended for offering this terrific resource for businesses. I am honored to be part of a group of thought leaders that are committed to helping organizations optimize the customer-centric disciplines of CX, marketing, customer service, and more. The strategic and tactical advice we provide can help companies meet their important 2017 objectives.”

For 2017, more business practitioners will be sharing their insights based on real-world experience. For example, Jeremy Watkin, the Head of Quality at contact center outsource firm FCR, will be writing about how to deliver excellent service experiences in the contact center. “We have a unique opportunity and challenge as customer service leaders to balance the needs of our agents and customers with those of the business,” says Mr. Watkin. “I aim to explore this balance and highlight ways in which better customer service, along with smart use of technology, drives success.”

For more details, please visit the Advisors home page at http://customerthink.com/advisors

 

Narender Kumar,
Customer Value Foundation and Inter-Link India

Journal of Creating Value jcv.sagepub.com
K-185 Sarai Jullena, New Delhi 110025
+91 9810060368, 011-26831226
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
http://www.interlinkindia.net

Twitter @ValueCreationJ

Customer Value Foundation (CVF) helps companies to Create Value and profit by Creating Value for the Customers, employee and for each person working with the companies.

Total Customer Value Management (Total CVM) transforms the entire company to focus on Creating Value for the Customer by aligning each person’s role in Creating Customer Value and getting shareholder wealth and Value.

The Next Big Leap: From Total Quality to Total Customer Value Management

Posted January 25, 2017 by Customer Value Foundation
Categories: Business & Management

The Quality Revolution was meant to be customer focused, instead became process centric and one of record keepers. Nonetheless, Total Customer Value Management can learn from the Quality movement. There is much to learn.

The Value of Quality

  • Quality has excellent ideas, discipline and methodology
  • Huge resource available, great and dedicated people

Question: How to use the Quality resource and Quality ideas and Quality thought processes for Customers?

  • Advance from a Quality Strategy to a Customer Strategy
  • Use Quality Circles concept to form Customer Circles
  • Go beyond Zero Defects to Zero Complaints
  • Institute Systemic, Mind-set and Attitude changes in Customer thinking

How to Leverage Quality for Customer Value

  • Going beyond:The role of executives is to create value for employees and Customers and thereby for shareholders.
  • Creating Customer Value goes far beyond experience and quality and leads to increased loyalty and increased market share.
  • Measuring Value allows you to create more value effectively.
  • Quality People should become Value Creators

To achieve this, Quality must create value for Customers and Employees

People who led the Quality revolution could easily lead the Customer Revolution. Are you ready to re-deploy your Quality resource for Customers today?

Would love your comments and help. We are happy to help others in education and executive education on courses in Value Creation.

 

Gautam Mahajan,
President, Customer Value Foundation and Inter-Link India

Founder editor, Journal of Creating Value jcv.sagepub.com
K-185 Sarai Jullena, New Delhi 110025
+91 98100 60368, 011-26831226
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
http://www.interlinkindia.net

Twitter @ValueCreationJ

Customer Value Foundation (CVF) helps companies to Create Value and profit by Creating Value for the Customers, employee and for each person working with the companies.

Total Customer Value Management (Total CVM) transforms the entire company to focus on Creating Value for the Customer by aligning each person’s role in Creating Customer Value and getting shareholder wealth and Value.

The Negative Experience can be Destructive for you: Don’t just focus on the positive experience!!

Posted January 25, 2017 by Customer Value Foundation
Categories: Business & Management

Most companies work on giving a positive experience to Customers: Most of the time, not all of the time.

The positive experience works when everything goes right. Your systems and your digital interaction work well. The order is placed.

The problems really start when something goes awry. The wrong item arrives, or the item gets delayed. Then what? Most companies fail here. Just as Amazon did. I wrote an article on LinkedIn on my negative experience: https://goo.gl/5h2HuN where the wrong ink cartridge was sent by Amazon (not once but twice) and I could not use the printer. Amazon had no system to correct the wrong, other than, return it and re-order. The people I talked to hid behind “this is our policy” to hell with the Customer statements!

I am sure if I had talked to the right person at Amazon, they would have righted the wrong, right away and got me the ink replacement pronto.

But I am not sure they would have corrected the process to change the system, the policy and the blasé attitude.

Negative experience….the seller makes a mistake. He does not try to rectify it. He wants you to do many things (Take photographs, re-order, repack the product etc.) all a unnecessary Customer journey and Customer effort one had not bargained for!

Companies need to work on preventing negative experiences, or at the very least turn them into positive ones! Do not destroy value! Else face deterioration of business.

Lets get to zero complaints and avoid these problems for the Customer.

Have you ever faced such problems with suppliers?

Would love your comments and help. We are happy to help others in education and executive education on courses in Value Creation.

 

Gautam Mahajan,
President, Customer Value Foundation and Inter-Link India

Founder editor, Journal of Creating Value jcv.sagepub.com
K-185 Sarai Jullena, New Delhi 110025
+91 98100 60368, 011-26831226
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
http://www.interlinkindia.net

Twitter @ValueCreationJ

Customer Value Foundation (CVF) helps companies to Create Value and profit by Creating Value for the Customers, employee and for each person working with the companies.

Total Customer Value Management (Total CVM) transforms the entire company to focus on Creating Value for the Customer by aligning each person’s role in Creating Customer Value and getting shareholder wealth and Value.

 

Amazing Amazon slipups: Lessons to be learnt

Posted January 25, 2017 by Customer Value Foundation
Categories: Business & Management

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Amazon has an amazing name for great service and being customeric. So much so that Shep Hyken lauded them. And I have been an admirer, till recently. They had many slipups in Amazon India, and there is a lesson to be learnt from these slipups. Hope Amazon and others will take heed and move closer to zero complaints.

Let me tell you of the problems I have had with Amazon (are they listening? Are they reachable?)

  1. Ordered HP 934XL printer ink on the 31st December, 2016. What I received was a 934 setup ink on 6th January, 2017, which has less ink than the normal ink which has less than the XL version I had ordered. Sent an email, complaining about it. Answer was your order is cancelled, and how do you want the refund. Refund will be given after pickup of the item. The pick-up receipt also says ‘picked up 934XL’. So on record, except for my saying I got a 934 setup there is no proof. There is no way to get Amazon to understand they shipped the wrong item. Also HP tells me one cannot use the 914 setup cartridge!

This is an update made on 11 January 2017. I had re-ordered on the 6th January, 2017 and again the set up ink arrived. I checked with HP, it will not work (my printer gave a message, setup ink cannot be used). Called Amazon, and was told their policy was I had to re-order. They cannot replace the wrong product. They have my money from the previous two orders (I am awaiting refunds) and expect me to pay again for the third order

This update on January 12, 2017: After last evening’s horrible experience, I ordered a cartridge from HP. It arrived at 10 am, no hassles, no mistakes!

  1. Ordered a Samsung phone, paid for it, and 3 days later was told not available and order being cancelled. Refund took 10 days. I had to order from a competitor at a higher price than what the competitor had posted 3 days earlier,
  2. I placed an order for three types of fire extinguishers. One type was delivered. The second type was promised a few days later (and it arrived fine). On the delivery date of the third one, I got a call from someone (not Amazon, maybe third party logistics partner. He said we have a better product, can we ship that. I said, no I want the brand (a known brand) I ordered. I got another call the next day, and same conversation. Then I find Amazon cancels the order, claiming I had cancelled it. Refunds take forever.
  3. I placed an order for a phone. It arrived and I was not home, but my wife was. Amazon would not deliver it to her. She said I would be home in 5 minutes (which was true). He would not wait and said he would come back. When, he did not know, maybe tomorrow. I had no way of finding out or tracking the last mile of the delivery.

Did Amazon expect me to be home the whole day awaiting the order? Or should they have a system of letting me know approximate time of delivery

The message is simple:

  1. You cannot get too big and too automated to ignore the customer’s problems.
  2. You cannot have a one way communication system, which prevents the customer from communicating with you. Also listen to the Customer
  3. And when you have a two way communicating system you cannot allow the customer only to answer from drop down menus where his/her problem does not exist or he cannot explain it.

Amazon and others have to learn from this, or else they will go downhill. Or as Donough Obrien wrote: Banana Skins: The Secrets of the Slip-ups and Screw-ups That Brought the Famous Down to Earth.

Would love your comments and help. We are happy to help others in education and executive education on courses in Value Creation.

 

Gautam Mahajan,
President, Customer Value Foundation and Inter-Link India

Founder editor, Journal of Creating Value jcv.sagepub.com
K-185 Sarai Jullena, New Delhi 110025
+91 98100 60368, 011-26831226
mahajan@customervaluefoundation.com
www.customervaluefoundation.com
http://www.interlinkindia.net

Twitter @ValueCreationJ

Customer Value Foundation (CVF) helps companies to Create Value and profit by Creating Value for the Customers, employee and for each person working with the companies.

Total Customer Value Management (Total CVM) transforms the entire company to focus on Creating Value for the Customer by aligning each person’s role in Creating Customer Value and getting shareholder wealth and Value.