In other words, WHAT WILL IT TAKE for an organization to be successful?
The second task in this continuing series will be the development of products or services for the chosen market niche.
This next strategic building block involves the development of products and/or services. This process can also be called “productization”, which refers to the process of analyzing the needs of customers in the target market, designing the product and developing the ability to produce it. For a production firm this stage involves the design and manufacturing phases, whereas for a service firm, this stage involves forming a system for providing services to the customers.
The success at this stage is highly related to the previous critical task, proper definition of the market niche. Unless a firm fully understands the needs of the market, it cannot satisfy those needs in “productization”, which can be defined as the process of creating products to satisfy market needs. Once the market has been identified and the product or service developed, the next challenge is to develop the organization’s “infrastructure”. This includes the resources and day to day operational systems as well as the management systems and culture required.
The development of new products or services in any organization is critical, this directly correlates to market differential. One of many attributes that Momentum Consulting Group Inc. differs to its competitors is that we offer a very unique client service model (rarely offered by consulting firms), into a very crowded and highly competitive service channel.
Acquiring & Managing Resources. Success in identifying a market niche and productization will create increased demand for a firm’s products or services. Consequently, the resources of the firm will be spread very thin. The organization will require additional physical, financial and human resources. This is the point at which the entrepreneurs should start thinking about the long-term vitality of the firm and procure all the necessary resources to survive the pressure of current and future increase in demands.
So, two questions I ask you today.
- Are your product or service offerings creating a differential in the marketplace?
- Are your products providing relevancy in the market you serve?