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Finally what are
the problems in coping with life’s pressures The last factor
deals with the provision of process that assist customers in
particular circumstances, or throughout their life process of
helping people to question, interpret, simulate and adapt to all
that life throws at them.
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Although companies
have process in place to capture and exploit such customer
knowledge, Companies need to have process for capturing
knowledge that extends beyond the organizational boundary.
Process extends to suppliers and distributors as well as
customers. More recently, retailer’s loyalty cards are capturing
“softer” information such as buying behaviors and preferences.
Even the Internet is embracing product requests, needs
assessments, purchases, credit assessments, service calls and
the like.
Besides the
Internet, there are other mediums that may well prove to be a
mass-market medium. Web TV and Interactive TV public kiosk
systems, mobile and fixed smart phones, with e-mail and fax
facilities built-in, could well proliferate. In the future,
customers will be able to respond to “click here “buttons on the
TV ads in order to place a request for product details or to
have an agent call them back. As these mediums are interactive,
they provide an opportunity for a regular dialogue with
customers that provide a steady stream of quantitative and
qualitative consumer data. Research and development departments
in companies could monitor pre-sales and service inquiries. |
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They could fire
back more probing questions to identify lead customers, seeking
to embrace them into virtual panels and encouraging them so
participate is interactive focus groups.
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Some companies are
using advanced systems. For example, Broad Vision’s One-to-One
applications system can monitor and record each visit made by a
customer to a company’s website. If a customer repeatedly looks
at a particular product but makes no purchase, it can offer an
instant discount. Similarly, to avoid customers being
overwhelmed by thousands of products, the One-to-One application
system can provide each customer with a personalized product
list based on their individual profiles. The system determines
an appropriate response through rules that are defined and
changed by marketers. It will also be possible for customers to
switch from one interactive medium to another, as well as to
customer service clerks, without ever having to repeat any
facts. One of the most exciting developments is that of mass
customization- a concept first created by Stan Davis in Future
perfect, and then developed by B. Joseph Pine II in his book
Mass customization in 1993. With mass customization, companies
are building unique custom-made products and services for the
same cost as their competitors. For example, a credit card with
a choice of interest rated; pay-back periods, minimum amounts,
cash withdrawals, reward schemes, charit5able donations,
insurance protection, geographical use, fixed fee or no fee, and
so on. The availability of these new interactive mediums now
provides an opportunity to put Pine’s ideas into practice. |
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But besides
technology, mass customization requires other organizational
changes. A key process change needed is to consolidate research,
design and sales into a step prior to production. Customers then
interact with a company’s design system to build their4 own
unique product, and even perhaps subject them to simulation
under varying circumstances. They may do this directly by
selecting product components, or through questions-and-answers
dialogues. This interaction may be in one sitting or over an
extended period of time. Driving mass customization systems are
business rules that ensure the assembly of only valid
combinations of components. The assembly process will need
support by the now established techniques life zero inventories,
just in time delivers, logistic management, real-time credit
approval and so on. Short product development cycles are an
instant by-product of mass customization.
Once the customer
has purchased his or her product or service, then a company
needs to keep an exact record of the product so as to support
servicing at a later stage, either by the head office or by
field staff. Where a customer could at later date sell such a
product to another person, it might make sense to embed the
build specification into the product itself. Further, if the
product contained diagnostic and communications software, the
service engineer can arrive with the right replacement parts.
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To start with,
only some customers may have the inclination to undertake the
mass customization process. Nevertheless, this small group will
form an important source of ideas that will be applicable to
other customers and prospects. Undoubtedly, in the coming years
we shall read much more about knowledge management. I look
forward to learning about organizations that are taking a
holistic approach-one that involves individual suppliers,
distributors and customers all working together for their mutual
benefit. I also expect to see more examples of mass
customization that exploit the flexibility, intimate dialogue
and immediacy of new interactive mediums.
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