Is your organisation leaking value?

20th November 2017 |   Mark Davies MBA MSC CEng CMktr MIET FCIM

The spiral of value leakage starts when organisations fail to focus on the customer and what they value. Instead, businesses should focus on creating “infinite value”.

Peter Drucker is famous for making the following observation: “Because the purpose of a business is to create a customer, the business enterprise has two (and only two) basic functions: marketing and innovation.”

If you are not involved in marketing and innovation, this could seem to be a tad harsh – but Drucker had a point though, and his thinking is even more relevant today. Changes advance as economies shift to new countries such as China; rapidly advancing technology innovation disrupts business models and, with these advancing technologies, communication and connectivity are also advancing – seemingly on daily basis. We are at the first stage of the Internet’s capability, and already it has transformed business: it has done so by empowering customers and consumers by providing a go-to source of information and insight.

For suppliers, this creates a scenario whereby an offering that was unique last year will not be unique this year. Thus, to remain competitive and relevant as a supplier you must transcend this creeping commoditisation to be recognised as a partner that adds significant value by helping the customer thrive in this rapidly changing environment.

Mark Davies MBA MSC CEng CMktr MIET FCIM is a consultant and Managing Director of Value Matters

Managing Director of Value Matters at Value Matters | + posts

Mark Davies MBA MSC CEng CMktr MIET FCIM is a consultant and Managing Director of Value Matters, where he trains, coaches and advises organisations on valuebased customer management, key account management, and offer development and innovation, all focused on putting AI to work.

He also chairs AKAM, the Association for Key Account Management, and is a Visiting Fellow at Cranfield School of Management. He directed the flagship KAM Best Practice Forum for 15 years, advancing the theory and models of strategic account management for hundreds of B2B organisations in dozens of industries.

Earlier in his career, he was Head of Customer Management for BP’s downstream business, previously managing P&L responsibility for its European industrial manufacturing solutions arm, and before that, an engineering director and operations leader in the pharmaceutical industry.

He is the author of Infinite Value (Bloomsbury), co-author of Implementing Key Account Management (Kogan Page), and is currently co-authoring Creating Customer Value Propositions with AI, also with Kogan Page.

Sign up for his bi-weekly newsletter Rethinking KAM on his LinkedIn profile: https://www.linkedin.com/in/ markdavies690/