The industrial revolution eliminated and transformed occupations that had been in existence for much of history. Mechanisation over the last century caused even greater change. In the same way steam powered looms replaced cottage workers in the nineteenth century, robots and computers replaced them in the twentieth. The power of the internet is not only the scope of change it is implementing but the speed of that change.
Auto payment at the supermarket does not just replace checkout jobs but inventory, banking and a whole layer of administration. Amazon does not even have the store. It is a clear example of how we can confuse delivery of a service with adding value to a customer. What customers want is for you to solve their problems. They are not wedded to the delivery method. Like water, customers will choose the path of least resistance.
For many years graphic designers saw the internet as a great tool. They were familiar with computers and easy access to images and inspiration were a boon to creativity. However, sites such as 99 designs removed a large volume of work almost overnight. Photographers too suddenly had to contend with stock images that were great quality, far cheaper and easily accessible.
Whatever industry you are in, change will probably be swift, overwhelming and unexpected. Here are some questions to consider:
Why does your business exist? This is a deep question that you should challenge yourself with regularly. By digging down to the fundamental truth of why people buy your product or service you are better able to focus on their need, not the delivery method.
Why does your industry exist? Is your industry based on an artificial need such as compliance? Will a change in another industry sector affect your customers?
Who are your indirect competitors? Is Nike a competitor to GlaxoSmithKline? What sort of choices are your customers making that affect their need for your products?
Do you get paid for where you add value? It is important that your remuneration is directly related to where you add value. In advertising, for example, the value of creative was given free, while margin was made on ad placement. This disconnect made agencies vulnerable to third parties who took the profitable placement component and left them with the undervalued creative.
Are you a vendor or a trusted advisor? The deeper your relationship with customers, the less vulnerable you will be to changes in delivery method. What other services can you offer that will bring you closer to your customers and add greater value to the relationship?
They say generals always have the strategies to win the last war. The internet and especially mobile technology is changing every game in town and sweeping away the old champions such as Kodak. However, it is also an era of incredible opportunity for those who can identify a better way to fulfil customer need.
Andrew Wylie, Director of Pandemonium Creative, strategic thinkers in marketing, sales and creative.
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