New economy needs new strategy<\/p>\n
By Hermawan Kartajaya<\/p>\n
JAKARTA (JP): The Internet has given rise to a new economy in
\nmid-1990s which has since changed the nature of companies.<\/p>\n
The way people run a company and deliver values to customers
\nhas changed. It demands a reinvention of strategy and the
\nbuilding of a sustainable value to ensure survival.<\/p>\n
To be successful you have to digitalize your network,
\nglobalize your market and futurize your business. To digitalize
\nyour network you must efficiently use and build strong
\nnetworking.<\/p>\n
Networking is a process of \"hubbing\" and \"webbing\". Hubbing is
\nwhen a number of companies or individuals interact with one
\nanother to form a hub. If this hub -- of course along with all
\nthe cluster of individuals or companies in it -- interacts with
\nother hubs, we shall have webbing.<\/p>\n
Hubbing and webbing must be implemented at an intra, extra or
\nintercompany level. At an intracompany level, the process of
\nhubbing and webbing will take place in a company through what is
\ncalled an enterprise infostructure (ERP:enterprise resource
\nplanning, for example) which will enable all activities within
\nthe company to integrate.<\/p>\n
At an extracompany level, hubbing and webbing will take place
\nin relation to companies within a value network (customers,
\nsuppliers and partners) at both the supply side and demand
\nnetwork side. Through hubbing and webbing, the boundaries of a
\ncompany will disappear and what we will have is the establishment
\nof what is known as a \"virtual organization\" like those in Dell
\nor Cisco.<\/p>\n
At an intercompany level, the company will conduct hubbing and
\nwebbing with many other companies to form a \"value cluster\". In
\nthis value cluster, companies will interact with one another to
\ncarry out a value-creating activity virtually and in an \"I-way\"
\nmanner.<\/p>\n
Globalizing your market means first and foremost you must
\nundertake \"-ING the market\", namely making active the interaction
\nwith the market. In addition, you must also have a global
\norientation. This does not mean that you must expand into the
\noffshore market. More fundamentally, you must have a global
\norientation in viewing commercial, competency and capital
\nmarkets.<\/p>\n
In determining your market, for example, you must not confine
\nyourself to the domestic market, let alone beg for protection
\nfrom the government.<\/p>\n
Likewise, when you are recruiting employees or choosing
\nshareholders, you cannot confine yourself to only domestic
\nemployees and shareholders. You must choose the best and world-
\nclass employees and shareholders, no matter where they are from.<\/p>\n
What will be the consequence of considering not only the
\ndomestic market but also the global market as your potential
\nmarket?<\/p>\n
Of course, you must put yourself in the rank of the world's
\nbest practice; and this means that you must possess world-class
\nquality and performance.<\/p>\n
Finally, futurize your business. This means you must do two
\nthings. First, you must use the information technology to turn
\nnoise into data; data into information, information into
\nknowledge, and finally, knowledge into wisdom. (Pine and Gilmore,
\n1999).<\/p>\n
The better we are able to move toward wisdom, the more we can
\nhave value creation and this will generate rewards for the
\ncompany. On the other hand, the closer we move toward noise, the
\nmore we practice value destruction and this will be a risk to the
\ncompany.<\/p>\n
Second, you must shift your business from only a commodity
\nbusiness to a product business; a product business to a service
\nbusiness; a service business to an experience business and
\nfinally you must move from an experience business to a
\ntransformation business.<\/p>\n
The closer we move toward the transformation business, the
\nmore we practice customization. On the other hand, the more we
\nmove toward the commodity business, the more we practice
\ncommoditization.<\/p>\n
The two efforts above are very closely linked because the
\nfirst effort is the basic requirement and before the second
\neffort can be made.<\/p>\n
This means that to shift your business from only a business of
\ncommodities to one of products, you must be able to turn noise
\ninto data. To shift further from products to services you must be
\nable to change data into information, and to move from the
\nbusiness of services to the business of experience you must be
\nable to turn information into knowledge.<\/p>\n
Eventually, to be able to move your business experience to the
\nbusiness of transformation -- as the main mission of your
\nbusiness is to transform customers -- you must be able to turn
\nknowledge into wisdom.<\/p>\n
What will be the effect of digitalization, globalization and
\nfuturization on the Nine Core Elements (as is known, the Nine
\nCore Elements constitute the essence of my model of a Sustainable
\nMarketing Enterprise)?<\/p>\n
This effect can be summed up in a strategic triangle diagram
\nas seen in the picture. As you know, the Nine Core Elements are
\ndivided into three parts, namely Strategy (segmentation,
\ntargeting, positioning); Tactic (differentiation, marketing mix,
\nand selling); and Value (brand, process service).<\/p>\n
Strategy is implemented to secure the mind-share, Tactic the
\nmarket-share and Value the heart-share.<\/p>\n
As for Tactic, you must begin to rely on \"emotional\"
\ndifferentiation and individualized marketing mix-selling.<\/p>\n
In the present era of experience economy, your differentiation
\nmust rely more on the emotional value rather than the functional
\nvalue.<\/p>\n
Remember the formula for a value: \"total get\" divided by
\n\"total give\". \"Total get\" encompasses two components, namely
\nfunctional benefit (Fb) and emotional benefit (Eb) while \"total
\ngive\" also encompasses two components, namely price (P) and other
\nexpenses (Oe). Emotional differentiation demands that you rely
\nmore on Eb rather than Fb in rendering a value proposition to
\ncustomers.<\/p>\n
And finally, as for Value, you must be able to build a
\n\"living\" brand and an interactive service-process.<\/p>\n
A living brand is a term for a brand capable of communicating
\nand establishing a relationship with customers on a two-way basis
\nso that the brand seems to be alive.<\/p>\n
This living brand can be built only if the service you provide
\nand the process you carry out are capable of building
\ninteractivity with customers.<\/p>\n
A living brand has become highly essential today as the
\nprogress in information technology networking has enabled
\ninteractivity between a company and customers to run very well
\nand it has now, therefore, become an increasingly more important
\nbasis for the competitive edge of a company.<\/p>\n
The writer is a marketing expert.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/new-economy-needs-new-strategy-1447893297", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }