Complexity drivers ] [ Preconceived ideas ]
  Preconceived ideas
Preconceived ideas standing in the way

Most of the change we think we see in life is due to truths being in and out of favor.

Robert Frost


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The most frequently raised objections to Strategic Simplification are listed hereafter. The buy-in of those concepts by the whole organization is a key success factor for that all pervading business endeavor. The ideas developed throughout this website have to be bought not only by top executives but also by every single contributor to all the business processes. This entails to go against the tide of the "natural" complexity drivers but, also and foremost, to adjust the mentalities to the business reality and to its priorities.  This is why we are assessing in more depth the business value of the objections that IT Cortex inevitably has to face during course of such a project.

 

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High added value allows to charge high prices.

There is one thing that you should never loose sight of: what you, as supplier, perceive as a high added-value feature might not be perceived as significant by your customer. Price, on the contrary, is always perceived as important and even decisive, simply because everybody likes to get good value for money (except maybe in the "ego-driven" luxury market and in the market related to safety and security). Companies tend to lure themselves with this prejudice because this is in line with their sales pitch. This confines to self-delusion. What Strategic Simplification advocates is: don’t try to push the prices up by increasing the number of specific features, bring your cost down by simplifying your product and services. This second effect more than compensates for the first one in building overall customer value and therefore in stimulating  business growth.

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To Provide Specific Services Enables not to Compete on Price

Price is one thing but most important are the margins and the volume. Strategic Simplifications puts a pressure on the price but it also puts an even bigger pressure on the costs. This acts favorably both on the margins and on the volume. The combined effect results in higher profitability and faster growth.

Moreover another way to avoid competing on price is to build a strong brand image, a distinctive set of products and/or services that customers and prospects recognize and value. De-complexifying products and services helps in building their identity and their “personality” because it emphasizes simple and straightforward traits that stand out and are easily remembered. Can you name more than three salient traits for your most respected brands ? 

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The Tariff Structure Enables to “Fine-tune” the Customer’s Behavior

The tariff has certainly an impact on customers’ global behavior: if the customer does not have the impression that he gets good value for his money he will either walk away to the competition or not buy. Complex and intricate tariff structure where every single product feature is priced according to sophisticated rules and conditions will have but a negligible effect on customers’ behavior whereas it will make life much more difficult for both parties. Basically it is never worth the trouble.

Should you want to discuss further those matters with us do not hesitate to contact us

Ó IT Cortex

Complexity drivers ] [ Preconceived ideas ]