How Well Do You Know Your Products?ByRaymond D. Matkowsky
How well do you know your product? Is your process operating at its maximum efficiency? Have you squeezed out all of its potential? Do you know what its maximum potential is? You can’t understand your process or product limitations or potential unless you understand their underpinnings. Knowledge is the foundation of every advancement. Many businesses, however, confuse “knowledge of” with “experience”. The “We’ve always done it that way syndrome”. “Knowledge” and “experience” are not the same. Confusing the two will be an impediment.
First and foremost, there are very few processes that are 90 to 100% efficient. More likely, the range is between 65 to 75%. That leaves a lot of room for improvement. These are improvements that you could easily overlook. That is true even for that fantastic system you have been running and profiting from for the last ten years. If you don’t go after that improvement, you’re only giving your money away.
Secondly, over the years you most likely have made many small changes in your system. It may be that the person who initiated these changes is no longer in your employ. You may have forgotten why these changes were made. The reasons these modifications were instituted may not be valid any more. You may be paying money for something that is no longer of any value to you. Worse, can the combined effect of all of these modifications be negative? The only way to be absolutely sure is to test.
Finally, if your competitor wants to get ahead of you, he’ll have to come up with a product that offers more value than yours. To stay ahead you’re going to have to offer a “new and improved” product too. If you are going to follow the “We’ve always done it that way philosophy”, you risk being left in your competitor’s dust. For this reason alone, you can’t afford to do things as you always had.
The subject of probability began through the works of mathematicians studying questions surrounding games of chance. Statistics originated much earlier and mainly dealt with the collection, organization, and presentation of data in tables and charts so that they may be more clearly understood. With the advent of probability, it became evident that the combination of the two could become a powerful tool in yielding “knowledge” that would allow us to draw valid conclusions, make reasonable decisions based on those conclusions and benefit from those decisions. The combination of statistics and probability has become the science of bring together information in a meaningful way so that it may be acted upon. This is information you’ll need to stay ahead. However, only you could act!
So, how well do you know your product? Are you sure you know your product’s total potential? Are you exploiting it or is your competitor going to exploit his first? If not, you may be leaving money on the table.
Finally, remember that your competitor may no longer be just down the street. He may reside in Europe, Asia or South America. You may have never heard of him. With the advent of the internet, this competitor and your customer may only be one mouse click away!
If you have any questions, comments or suggestions drop me a line at rdm@datastats.com.
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