Business vs Service
In many offline industries one can observe a conservative approach to development. Retail, medicine, education - everywhere you can trace the historical "pillars" that were formed in the middle of the XX century. But the basis of almost any business - the need of the target audience - though not quickly, but still changes in accordance with new opportunities that change the market at some point.
When Sam Walton created Wallmart, the retail market was inefficient. Overpriced, insufficient product range - all this led to the fact that a rather simple at first glance, “algorithmic” scheme for the development of network retail has actually changed the market. But this success was not caused by luck alone. One of the key factors was the use of modern technologies at the time - the first mainframes - to move to a new level of automation of goods accounting and logistics calculation.
Similar patterns of the emergence of businesses around technological breakthroughs can be traced in almost all industries: from incandescent lamps, radio, internal combustion engines to the invention of the tonometer.
')
The first businesses based on technological innovations, primarily perform their task - the creation of sustainable demand and return customers. The competition is weak, you can "skim the cream." A recent example is electronic ink laptops, the first models of which were sold with an incredible markup.
However, when competition arises in these industries - and sooner or later it happens - it becomes difficult to compete at the expense of technological advantage. There is not much difference for the client in obvious indicators - prices are about the same everywhere, the range of possible services too, so how to ensure the influx of new and retain old customers? And at this stage, clear schemes of “business” are gradually acquiring the features of “service”, which is already based on subjective opinions about what to offer the client to increase his “happiness”.
Marketing, PR, branding - all these are milestones of competition, where none of the participants can offer a significantly better solution than that of a competitor. For a long time, focus groups were in fashion, surveys of a potential target group, with only one clear task - to reduce uncertainty about where to develop the business.
Any potential market draws attention to future opportunities. Analysis of customer preferences - apparently - one of these markets. Big Data, Data Mining - these technologies can (and in some particular cases, have already contributed) change the approach to the development of the market. Analysis of user preferences, personal loyalty programs are just some of the options for the effective use of such technologies.
“Business,” which in many cases is simply “Service,” again becomes purely algorithmic. This phenomenon, apparently, is not good or bad, but simply a consequence of development. But new businesses that significantly change the market will be based precisely on technological breakthroughs. Simply because it is difficult to think of other things that present opportunities for strong competitive advantages for developed businesses.
When Sam Walton created Wallmart, the retail market was inefficient. Overpriced, insufficient product range - all this led to the fact that a rather simple at first glance, “algorithmic” scheme for the development of network retail has actually changed the market. But this success was not caused by luck alone. One of the key factors was the use of modern technologies at the time - the first mainframes - to move to a new level of automation of goods accounting and logistics calculation.
Similar patterns of the emergence of businesses around technological breakthroughs can be traced in almost all industries: from incandescent lamps, radio, internal combustion engines to the invention of the tonometer.
')
The first businesses based on technological innovations, primarily perform their task - the creation of sustainable demand and return customers. The competition is weak, you can "skim the cream." A recent example is electronic ink laptops, the first models of which were sold with an incredible markup.
However, when competition arises in these industries - and sooner or later it happens - it becomes difficult to compete at the expense of technological advantage. There is not much difference for the client in obvious indicators - prices are about the same everywhere, the range of possible services too, so how to ensure the influx of new and retain old customers? And at this stage, clear schemes of “business” are gradually acquiring the features of “service”, which is already based on subjective opinions about what to offer the client to increase his “happiness”.
Marketing, PR, branding - all these are milestones of competition, where none of the participants can offer a significantly better solution than that of a competitor. For a long time, focus groups were in fashion, surveys of a potential target group, with only one clear task - to reduce uncertainty about where to develop the business.
Any potential market draws attention to future opportunities. Analysis of customer preferences - apparently - one of these markets. Big Data, Data Mining - these technologies can (and in some particular cases, have already contributed) change the approach to the development of the market. Analysis of user preferences, personal loyalty programs are just some of the options for the effective use of such technologies.
“Business,” which in many cases is simply “Service,” again becomes purely algorithmic. This phenomenon, apparently, is not good or bad, but simply a consequence of development. But new businesses that significantly change the market will be based precisely on technological breakthroughs. Simply because it is difficult to think of other things that present opportunities for strong competitive advantages for developed businesses.
Source: https://habr.com/ru/post/241475/
All Articles