Time In Omnichannel Business

Today my colleague highlighted to me that our company DT LEADERSHIP FB page messenger recognized as “Very Responsive”. I am proud because it used to be 4-5 hours last year, the year before last 8-10 hours. We were late. Now “Very Responsive”. Why? We made a point to respond fast. 

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https://www.facebook.com/designthinkingMY/

Previously we were slow because we felt decision making for coaching & training usually comes from formal channel like email or call for briefing. It used to be like that. We thought the request from FB Messenger usually for personal engagement; which we don’t do much at that time. Our focus mainly corporate clients and corporate innovation. Basically we didn’t treat FB Messenger as a channel for the public to reach out to us, FB Messenger to us was more like market segment of customers. We were wrong.

In the era of “Omnichannel” marketing and business, the point of contact to business is sporadic, distributed and fragmented – plus, 24×7. These days, businesses get contacted from email, Whatsapp, messages, Messenger, call, printed letter and many more including word of mouth. Businesses may have great products or services, but of the point of contact and delivery unable to create excceptional and responsive feedback, it won’t mean anything to the customers.

Having this realization early this year, we’ve also revamped our website to be more informative, educational and responsive too. Whether you search it from laptop, notwbook, ipad or mobile, you will get the most suitable format when interacting. Currently we are thinking to work with some providers to help our visitors with chatbots especially with stuffs we are adding in onto the website, we want to make it searchable and influential. 

Time is very important. Do hop on our website http://www.designthinking.com.my

Let me know your views and feedbacks. #innovation #omnichannel #fable #marketing #channel

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When Costs Kiss Goodbye!

Image credit: Kraft Heinz loses a lot of cheese as earnings send stock plunging to …

Interesting article about an investment company (private equity firm) that acquire food businesses (Heinz & Kraft Foods) back in 2013 and 2015 respectively. The firm believed these two companies could unlock more values by using ruthless focus on efficiency. They quickly employed radical cost cutting programs.

They fired thousands of workers, shutdown factories, used zero-based budgeting model (justify cost without regard of previous year spending), remove refrigerators (pantry) in the HQ known for stocking cheese sticks, set default settings of office printers (double sided with black toner) and limit meals spending during travel to $50 a day. Guess what happened next?

These initiatives and cost program led to industry-leading profit margins in less than 2 years! The stock price went up to more than $90 in 2017! See below.

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But, unfortunately, it went to nose dive after all the radical cost programs deployed. From my research, Kraft Heinz overlooked the marketing bit, product innovations for their changing customers segments and valuable employees feedback that know how to run your operations especially in different market segments and countries.

Sometimes, big brands and companies make tactical mistakes like this. No doubt long history companies tend to have opportunities to go leaner that it was; things usually get complacent after awhile.

One of the videos, check it out.

Source: https://www.cnbc.com/2019/02/22/kraft-heinz-backers-face-reality-brutal-cost-cutting-isnt-enough.html

Lessons that we could take from here are:

  1. Look at at products and services innovations as growth strategy: There are probably a host of products that could be making money or probably there’d discover that most of the products are obsolete to modern customers. For the record, Kraft Heinz launched new products such as organic version of Capri Sun and expanded its condiment businesses. They tried, probably not enough time to see it through, perhaps these new lineups will grow later.
  1. People are not measured by their salary or price tag, rather by their value brings to the business: I tried looking for some human capital development strategies when the equity firm bought Kraft & Heinz, but I couldn’t find any. Although I may not a fan of “total spoon-feed your talent because you care”, I do believe the management should consider taking longer time to lay offs to ensure the tacit knowledge is transferred to the business. You should pay high for someone that could do more and pay less for someone who can only do routine work.
  1. There’s only so much you can do with cost efficiencies: Key for growth is innovation. I’d expect big brands and companies, should invest in ruthless innovation focus in three areas. First, new products and services that reflect current and future customers needs and wants. Second, leaner processes and automation to bringdown redundancies in capital & assets deployed and reduce wastages. Third, to find market creations opportunities that will need to be invested and R&D. You can read more about this from Clayton Christensen book titled, “The Prosperity Paradox”.

Innovations are for growth. Companies need to spend and invest together with their workforce to improve capability and capacity to innovate. I do hope to see Kraft Heinz able to come out from this plunge and see this only temporarily.

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