“Companies need a reminder: what are you selling? To whom? Why are we doing it?”
„Are you thinking how things are done?’’
This was Jonas Kjellberg’s question to a room full of IT specialists and business owners at the Empower MSP (managed service provider) conference in Amsterdam this morning.
The Skype co-founder in his key note speech said his team “started innovation in zeros.” When setting up Skype they looked at what the customers already had: “Let’s use the internet which the customer has already purchased; we found our first zero’’.
Zeros are a profitable core or extra service which cost you nothing to do, but can potentially bring in cash flow, he explained.
Kjellberg used a recent trip to a Volvo truck factory to explain how companies can start rethinking about what they offer customers. When employees were asked in the factory what they sell, trucks was the answer. When pushed a little further, one employee responded: “I think the customer is buying a solution to their logistics problem.’’Kjllberg believes companies need to start “rethinking things” by seeing that their customer needs a logistics solution and not just a truck; Volvo is in position as a company to rethink what a customer’s future needs are.
This can also apply to any department within your company.
Ryanair, pointed out Kjllberg, have started to make money in their HR department since they started charging 50 Euro for people to apply to the company for positions. This caused applications to go down, but quality within them to go up he claimed. “Ryanair turned its HR department into a profit unit.’’
He stressed the emphasis for business owners to ask themselves three questions, what are you selling? To who? Why are we doing it?
Source: Conor Reynolds