The first rule of any technology used in a business is that automation applied to an efficient operation will magnify the efficiency. The second is that automation applied to an inefficient operation will magnify the inefficiency. Bill Gates
Business is going forward, albeit slowly and certainly not painlessly. Uncertainty still looms, considered and robust decisions must be made to continue any planned progress.
A definitive pattern change in buyer behaviour is based on fear. The shift in the motivating factors for buying is significant.
There have always been three motivating factors for buying: greed, logic, and fear. Sadly, logic is the weakest, and one only needs to examine any political marketing campaign to understand that fear is the most powerful of the three.
Greed was the driving force for the last two decades until the financial crisis turned everything upside down. Until then people had plenty of resources and felt secure that business would be stable or growing, so they focused on buying what they wanted with little concern. Today, their concerns have increased so they buy less from greed.
Fear is the driving force behind what could be referred to as “the new austerity.” Consumers and businesses alike have built-in fear about parting with their money. They have three fears that will keep them from
In this economy, every dollar counts. Guilt or embarrassment sets in from spending on something that doesn’t work or collects dust on the shelf from lack of use.
Excess is no longer the fad for most people and few want to be seen as ostentatious when so many are hurting. Companies have greatly reduced the way they spend on visible items, such as marketing and travel, so as not to upset their shareholders or owners. Some are promoting their frugality as a way of showing that their margins are slim enough to justify their pricing.
Hoarding resources is the order of the day in an uncertain economy. No one wants to deplete the bank account when another downturn may be right around the corner.
Buyers are keeping their bank balances as flush as possible to make sure they can weather the unforeseen cash issues that may be ahead. You can overcome the New Austerity with the right approach. Here are three tips for increasing sales in a tenuous business climate.
Each of these remedies requires creativity, consistency, and commitment beyond the typical approach of previous decades. Ultimately the challenge for a business today is providing an offering that is overall more compelling than the established fears.
Unless a machine tool builder / supplier appeals to a more powerful fear than waste, extravagance or poverty, a prospect will be unlikely to part with cash and no sale will occur. But for the company who buys, they will be best positioned for the day when this new austerity subsides and ambition grows
SMS works in partnership with clients to help their business grow. Our suggestion is not to invest in a machine tool if the ROI is longer than 3 years. The role of SMS is to provide auditable, deliverable, measurable and evidence based metrics so the machine can demonstrate a ROI inside of 3 years. SMS works collaboratively with all our clients to measure capacity increase, schedule improvement, man-hours re-deployed and how an automation strategy will impact the price per part.
Clients of SMS know how an automation strategy is going to deliver efficiency optimisation and improved revenue into their business for the next 10 years. SMS is invited from clients to support a progressive culture for planned growth and building the team to succeed so ambitions are achieved.
We invited your business to review the Automation Design Lifecycle Process (ADLP) so we can create the necessary understanding to achieve progress. Let’s review what steps your business has taken regarding evaluating this automation strategy listed on page 5 of the ADLP.