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Organizational Computer Information Systems: MKIS
Pages 2 (502 words)
Some businesses fail because critical fundamentals have been ignored. Firms can ensure sustainable success for the long term if they conduct a rigorous analysis of their value-creating capabilities beginning with the fundamental question of "what business are we in" Answering this question requires a firm first to define the value it is providing to the customer…
Customer value analysis presupposes a customer-focused perspective. Customer-focused firms create and deliver superior customer value through unbeatable service.
Customers buy solutions, not products. Every firm needs to understand what it is providing the customer in terms of customer value, not by focusing on the product but by focusing on the customer. In doing so, the firm is able to assess whether it is providing superior customer value and whether it has a sustainable competitive advantage. Competitive advantage cannot be sustained unless it can be protected from competitor matching. Any aspect of the product can be matched by the competition. What is most difficult for the competition to match is how the firm approaches and treats the customer. The firm serves the customer by providing product enhancements in the form of service. When other firms can provide the same service, the differentiator is in the service orientation of the firm. (Vandermerwe 27-38)
Customers don't buy products. They buy solutions. If firms are focused on the customer, they ought to see themselves in the role of providing solutions, not products. ...
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