High Margin Strategy
Beat the Competition
Aircraft engines: how did GE beat the competition? Mohammad Ehteshami was faced with a seemingly impossible task. He needed to significantly increase the value of the next generation of GE jet engines. Mr. Ehteshami had years of industry expertise and he and his team set up to achieve the objective. After failing multiple times, a junior member of the team suggested using additive technology as a possible solution. Although usually used in prototyping, this process was successful in enabling the team to achieve its objective. Therefore, using additive technology for an engine fuel nozzle achieved a 25% weight reduction. Secondly, it achieved a 95% inventory reduction (20 parts to one part). Finally, it became 30% more cost effective and five times more durable.
A game changer? Yes! GE’s success led them to purchase Morris Technologies bringing in-house the expertise that allowed them to beat the competition.
Another example: RPA, Robotic Process Automation
Due to legacy systems and limited IT resources, many teams are precluded from fixing inefficient processes. With Robotic Process Automation (RPA), however, companies automate tasks without impacting legacy systems and only slightly impacting IT resources. How does this work?
For example, one company manually processes customer orders. The customer service representatives would check the system for new orders and then validate the orders. Next, they would look up the customer’s discount and apply it manually. This process was not only error-prone, but time consuming.
The company used RPA to develop bots that would automate the process. The bot pulled the new order data from the legacy system, and then applied the relevant discount information. All of this occurred without changing the legacy system itself. What were the results? First, productivity increased by 40%. Secondly, transaction speed increased by 20%. Finally, they achieved zero errors and a 90% reduction in manual labor.
Conclusion
These two examples show how technology can enhance current process technology and enable your company to beat the competition. Often you will find you are well up the learning curve while others are trying to catch up.
Process technology is often missed when companies are looking to gain competitive advantage. As you develop your strategy, give careful consideration to this area. New emerging technologies will make you more efficient and provide additional value to your customers. As your processes become more efficient you will be able to grow, even in this tight labor market.
If you have questions about how to incorporate technology assessments into your strategy planning effort, please contact me at: harrison@cssp.com or 910-763-5194.
Do you want to learn how your organization can Beat or Avoid the Competition? Attend the Simplified Strategic Planning Seminar for more instruction on how to develop all aspects of Simplified Strategic Planning.
Author
Denise Harrison
Denise Harrison is a senior consultant for the Center for Simplified Strategic Planning, Inc. She can be reached at harrison@cssp.com.
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