Lemon #112. Twenty strategies to in costs
While reading “Costovation” from Stephen Wunker & Jennifer Luo Law we learned about twenty strategies and tactics to implement Costovation:
- Simplify the product: Focus on just the features that matter.
- Use technology to unlock new costovations. Harness new technology to excel in totally new ways- and at lower costs.
- Dissolve the wall between operations and customer experience. Let customers participate.
- Build a platform. Create the foundation for growth.
- Handle the network, not the goods. Create an asset-light operation by focusing on services or on facilitating a network of transactions.
- Costovate through external innovation: Use external innovation to lower the costs – and the risks- around new product development.
- Save the customization for later. Deploy postponement techniques to make personalization and customization more efficient.
- Speed up build time with modularization. Accelerate the time it takes to build by breaking the product into smaller chunks.
- Find intention in waste. Reduce waste or find new uses for it.
- Put people where they matter. Embrace new approaches to human resourcing.
- Bypass steps in the value chain. Vertically integrate and play supply-chain leapfrog.
- Zoom in on last-mile delivery. Pay special attention to the costliest step in a parcel’s journey.
- Do not underestimate the power of self-service. Let products sell themselves.
- Tap into people’s desires to help others. Make customers into customer-service agents.
- Price only for the services rendered. Unbundle.
- Get paid early. Declutter sales channels and lower inventory.
- Think twice about real estate. Examine how location can be an opportunity area for innovation.
- Share costs in the supply chain. Apply the sharing economy to your business functions.
- Seek complements in the value chain. Match up with organizations with opposite supply chains.
- Treat your suppliers like your costumers. Grow your accounts by helping your value chain become more productive.
Stephen Wunker & Jennifer Luo Law @ Costovation