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Home » Lean Practices » Learning Point 2 – Demand Drivers/NEXT Practices–Part 2
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Learning Point 2 – Demand Drivers/NEXT Practices–Part 2

(This is the fifth in a series on The Power of Choice – Leveraging Configuration Technology to Differentiate, Simplify, Perform and Win, by Mike Shields, Co-Founder and CEO of eLogic Group.)

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I’d like to introduce a simple model to identify a few degrees of differentiation… It’s shown here in 2-dimensions PRODUCT and PROCESS…

But a third major dimension is VOLUME – which influences where certain offerings fit. For now, we’ll look quickly at the 2-D model.

Basically, most producers of differentiated products or services may have a range of ways to meet demand… at the extremes it would be to offer a fully pre-packaged item that is perfectly matched with a market segment need – And at the other extreme would be a UNIQUE solution for a specific need.

Before looking at it in more detail – what’s important about the identification of these gradients in demand is that it impacts the entire Quote to Cash Cycle – and in order to succeed and perform, each has it’s key characteristics. The downside of not being clear with these distinctions is that it’s impossible to handle all of the variations without excessive cost, errors, cycle time and dissatisfaction from everyone along the line.

 

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