"Flywheel effect" to grow our business.

Jeff Bezos is famously quoted as saying, "Your margin is my opportunity," highlighting the potential to challenge high-profit sectors by providing good services at lower margins but with significant volume and scalability.

Can this concept be applied to the IT and ITES industry? In essence, can new entrants or existing players disrupt the current high-margin IT service delivery model by offering quality services at reduced margins and doing so on a large scale?

An optimized delivery model :

• Reduced TCO for enterprises
• High growth for service providers
• Scale for service providers
• Surplus for further investment, continuing the flywheel effect.

What is the flywheel effect and how can it grow your business?

The flywheel effect happens when small wins for your business build on each other over time and eventually gain so much momentum that growth almost seems to happen by itself –?similar to the momentum created by a flywheel on a rowing machine.

The flywheel model is based on a concept from Jim Collins’ classic business book "Good to Great". Put simply, the central idea is that your customers are your best salespeople. If you make them happy, they’ll tell their friends. And if you make your product easy to learn about and purchase, those friends will buy it. Then your new happy customers will tell their friends, and so on.

It’s a virtuous cycle that has three major components:

1. Attract –?Draw prospective customers to you with helpful content that is easy to discover. SEO, social media, targeted advertising, and live/virtual events all have a role to play here. Focus on earning their attention rather than forcing yourself into their line of sight.
2. Engage – Now that you’ve made a good impression, make it easy for prospects to learn about your product on their own terms in and their own time, and ultimately buy it. Nurture campaigns, free trials, and a self-serve purchase flow are your best friends in this phase.
3. Delight – Design your product to be as easy to get started with as possible. Offer documentation and knowledge bases that help customers get more value out of what you’re offering. Solicit customer feedback and act on it. Your goal here is to turn users into fans, who will recommend your product to their peers, friends, and even to perfect strangers through online reviews and social media.

Reducing friction is key to growing your business with the flywheel model. Flywheels are incredibly efficient at storing and releasing energy. The faster a flywheel spins, the more energy it stores. And you make it spin faster by removing friction and applying force. These forces build both momentum and stability for our business.