Time to Innovate …. To Improve Quality … To Grow … In the New Abnormal!

The world … especially the business world … is changing and will not be what we enjoyed last year … or last month.  It is time for us to see this Disruption as a Challenge to Innovate.  How can we better serve our Customers?  How can we improve our Supply Chain?  How will our Products and Services change? We have talked in the past about how to Disrupt our Markets.  Well our Markets are certainly Disrupted now … But isn’t this the just a variation of the typical Supply/Demand Curve?   So, how will we respond to these shifts?

Supply & Demand Curve Shift!

We are definitely seeing shifts in Demand and Supply in our Markets.  Some companies are realizing they were perfectly postured for as they see Demand for their products increase astronomically.  Some companies are benefiting from the quick development of products they have not previously offered … but are in great Demand today.  Some companies are seeing their Demand evaporate … overnight.  

And on the Supply Side …    How many companies relied on China because the price was low?  China has grown to represent 16% of Worldwide GDP!!!  We are finding that one small part can completely shut us down.  

It is unusual to have an environment where there are dramatic shifts in both Supply and Demand, but this is exactly what is happening today.  

Disruptive Innovation vs Sustaining Innovation

Disruptive Innovation – means to reinvent a technology, business model, or simply invent it all together.  It enables an entirely new offering to address an unmet need.

Sustaining Innovation – seeks to improve existing products. Meaning, it does not create new markets or values, but rather merely develop existing ones.

Disruptive innovation and disruptive technologies often make people think about cutting edge technology that is way out there in the future. Some of it is, but there are also some very accessible disruptive technologies available that will present you and your organization with real opportunities and efficiencies. As corporates we should be aware of the ‘disruption’ that is happening around us and of the upcoming disruptive trends and technologies in the marketplace. Disruption is also a new way of thinking and looking at your industry and indeed the wider world around you.

Now is the time to invest in both Longevity and Balance.  Typically, the strategic investments for longevity tend to flow to legacy business while a Balance investments flow to growth and emerging business.  

Most Businesses focus on Revenue and Profits … Now.  But this is the time to focus on Revenue and Profit GROWTH in the future.  In other words, INCREASE MARKET SHARE.  Some Companies will not survive this new paradigm.  Those that do … and grow … will be different companies than they are today.  From 1929 to 1933, 20 of the 30 Companies that made up the Dow Jones Industrials were removed and replaced.  So now is the time to invest in improvements to build a solid foundation when we come out of this unprecedented time.  

Focus on Quality

Regardless of what industry you’re involved in, your customers … now & when this is over … aren’t going to choose you solely based on price, but often on quality. In fact, studies have shown that customers will pay more for a product or service that they think is made well or exceeds the standard. Your customers expect you to deliver quality products.

If you fail to meet customers' expectation, they will quickly look for alternatives. Quality is critical to satisfying your customers and retaining their loyalty so they continue to buy from you in the future. Quality products make an important contribution to long-term revenue and profitability. They also enable you to charge and maintain higher prices. Quality is a key differentiator in a crowded market.

So, now is the time to Focus on Quality.  Many companies are downsizing due to reduced demand, availability of supplies, and reductions in staff.  Commit resources now improve Quality.

Look at your Non-Conformance Reporting to find areas to start.  Develop Reports and implement Visual Management Boards … and keep them simple.  Ensure every member of your team is focused on improving Quality.  

Mistake Proof your Processes

DIRFT … Do It Right the First Time.

OTIF … On Time, In Full