Pinaak | Open Source Power

It’s very important issues and yet not so many manufacturers who can confidently answer “Yes” to most of these issues. First and foremost reason is that many managers have first of all focus their attention on production and most of them are looking at improving the current operations rather than on the definition of market anomalies or tracking of consumer preferences.

Producers of the past decade, primarily focused its attention on improving product quality and reducing its cost. In 1980, fierce competition is centered on the production and delivery without marriage “just-in-time” and its amplification has led manufacturers to seek solutions to improve and accelerate the production process. They directed their resources on how to make the product better, cheaper and faster, on how to improve operational efficiency.

Today everything has changed. Questions that were listed above, require answers that can not be obtained by studying the nature of industrial activity. These questions require knowledge, which are made in the departments of enterprises that are not directly involved in production. In fact, to answer “Yes” to most of these questions requires a deep knowledge of customers, their needs and preferences. The most successful producers of the past decade have found that information about the customer and the market is not so easy to bring together and not so easy to apply.

Why is information about the market so hard to get? Why does it always short-sighted and focused on current performance? Just because the production efficiency can be defined, measured and achieved. Producers realize production efficiency at about the same as Michael Porter, professor of Business Management at Harvard Business School, who recently commented on the article “What is strategy” as follows: “Production efficiency is attractive because it is concrete and effective”

The production efficiency was the result of theory, practice and experience in business management last decade. The fastest and most predictable way of improving the low production figures – is to reduce product cost by reducing costs or conversion of production.

There is no doubt that the production efficiency can provide short-term gains, but in the long run, production methods and technologies can be repeated, and repeated its competitors. Transient improvement in production, the spread of technologies and best practices of organizations doing business and technological superiority of the time. Competitive dynamics changed. Production efficiency is no longer determines success in the market. Quality achieved, and competitors continue to cut prices. Price advantage disappears. To compete in the future, the production efficiency will still be needed, but this is clearly not enough. The objective remains the same: to attract and retain customers. Selection criterion has changed. Price and quality do not determine the choice. Buyers want more. They are looking for products that meet a specific set of requirements. Customers want quality products at low cost that meet their specific needs at a particular time. New preferences require new solutions. Challenge for producers of the next decade is to profitably provide a wide range of products that can change as quickly as the preferences of customers.