Reinvent

"Change before you have to." - Jack Welch

I hope you're doing well! Something occurred to me this weekend - I miss writing. It used to be such a great way for me to share my ideas and get my thoughts in order. In light of the recent changes to businesses, I think it's more important than ever to stand out from the crowd. Do you want to join me in figuring out how to make businesses one-of-a-kind?

Wake Up Call for Industry Leaders: Break Out of Commoditisation Now or Perish!

Wake up! The walls of your once-dominant niche are collapsing! The very ground beneath your successful enterprise is shifting. Your products and services, once unique and a source of delight for your customers, are now lost in a sea of sameness. You are falling prey to the relentless beast of commoditisation, and it’s time to take urgent action.

Gone are the days when you could differentiate on product features alone. In our service-driven economy, where your offerings mirror those of your competitors, it's not just about what you do anymore, but critically about how you do it. And let's face it, this reality is hitting the service industry harder than any other.?

The clients are telling you – maybe not in words, but in their actions – that what you offer is no different from what your competitors do. The sales pitches that once worked wonders now fall flat. The marketing efforts, once a source of pride, are failing to make an impact. Your customers are flexing their bargaining power, and your revenue and margins are taking a hit.

Are you feeling the chill run down your spine yet? Good! Now let's talk more about options.

1. Recognise the need for drastic change

First, recognising that the core of differentiation strategy needs a drastic shift. This is not about simply tweaking offerings or sprucing up marketing language. This is about a radical reinvention of how business is being done.?

Change can be daunting, especially when things seem to be going well. But, in the face of commoditisation, being good is no longer good enough. Take the case of Atlassian, a company that started as a small software firm in Sydney. They recognized the need for a shift when their software products became common in the marketplace. They redefined their model to offer unique collaboration tools like Jira and Confluence, setting new standards for project management and team collaboration.

2. Ditch the Comfort of Established Business Models

Second, it’s time to ditch the comfort of established business models. Yes, they served well in the past, but clinging onto them in the face of changing industry dynamics is akin to holding onto a sinking ship. Innovate or become irrelevant.

Fear of the unknown can stifle innovation. But comfort zones are where dreams go to die. Consider the case of Twilio, a cloud communications platform. They could have stuck with their initial model of providing simple API services for SMS and voice calls, but they didn't. They took the risk of expanding their business model to include email through the acquisition of SendGrid, pushing their boundaries and setting them apart from their competition.

3. Pivot Towards a Culture of Differentiation

Third, the pivot must be towards a culture of differentiation. This is not just about creating unique products or services, but about embedding uniqueness into your every action, every process, every customer interaction.

Creating a culture of differentiation means embedding uniqueness in every facet of your business. This can be overwhelming, but it's necessary.

Look at Zoho, a software development company. Instead of being just another player in the market, they focused on providing a comprehensive suite of software products for businesses. This commitment to offering a diverse, integrated solution has created a distinct identity for Zoho in a crowded marketplace.

4. Champion the Transformation

Transformation requires more than delegation; it demands leadership. As a leader, your role in breaking the cycle of commoditization is critical.

Consider the case of ServiceNow. When John Donahoe took over as CEO, he championed a shift from a traditional IT service management company to a comprehensive enterprise cloud solution provider. This willingness to lead change has seen ServiceNow grow exponentially, distinguishing itself in the service management field.

These examples illustrate that size does not dictate ability to stand out in the market. Medium-sized companies have the agility to innovate, pivot, and establish a culture of differentiation. As leaders, the task is to harness this potential and steer the company away from the threat of commoditisation.

The question is not whether you can afford to break out of commoditisation. The question is, can you afford not to??

So, are you ready to rise to the challenge, or are you content to become just another face in the crowd?

The choice is yours, Choose wisely.

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The opinions expressed in this article are those of mine. They do not purport to reflect the opinions or views of any organization.

Mukul Jain

I am a seasoned professional with over two decades of experience in B2B sales and business leadership roles in IT. An alumnus of INSEAD, I have a strong track record in delivering business growth, driving strategic sales, and managing teams across diverse markets Beyond my professional achievements, I have a passion for reading, traveling, and Python programming. Connect with me to learn more about my experiences and insights.