A business is dependent on a relationship between the clients, product and its systems. When these are functioning in tandem, then the business has a better chance of succeeding. This relationship can be described as follows:
At the top of the triangle is the client, the one who defines the revenue that a company can receive. Business as noted by www.unlockedsuccess.com is simply the provision of a solution to the needs of the client. If the need is right, the want being correct and the demand being sustainable, then any company can succeed.
In order for a business to succeed the client must be satisfied. It is a simple equation; an unhappy customer is equal to no revenue. It is more expensive to acquire a new client than to keep an old one. In order to get a new client a company has to advertise and thus spend money while a happy client keeps coming and even brings new clients. If a business is going to get it right, then it must ensure that the needs of the client are met.
On one side to the triangle is the product. The product must adhere to certain rules if it is going to be liked by the client. It must be packaged right. This includes ensuring that the language is correct, the appearance is appetising to the client and the product is available to the client. If the product is not of good quality, this can result in the client being unhappy and as noted “an unhappy client means no revenue”.
It is not just about creating a product and launching it out there on the market. There is need to ensure that the product is functioning according to what the client wants. The product must, therefore, be tested, sampled by the right people to ensure that it is of good quality. A lot of money is wasted on promoting products that are not functional, which the market eventually ends up rejecting. Market sampling is still a viable process for any company and must not be taken lightly when preparing any product for final launch.
A business must be able to deliver to the client and be able to function as required. Internal processes must be effective and efficient in order to enable reliable delivery of the product to the client. Systems are represented by different forms which can be categorised under human, policies and procedures, applications and systems, departmental handshakes, compliance requirements, marketing systems among many other various systems. If the systems are not functioning at an optimum level they can result in wastages, inefficiencies, and client dissatisfaction. Companies which fail at the system level are the type which take 10 minutes to deliver a takeaway order in a fast food restaurant, or a company that takes more than an hour to resolve a client’s query. Time is money and systems are part of that clock that turns the business towards the right profit levels.
At the end of the day, all companies are competing for clients, with products being delivered through the business systems. Failure to be able to rise to the occasion creates ineffectiveness and inefficiency which eventually renders the company unable to compete and go bankrupt.
The business optimisation triangle is such that the company must be good with its clients, products and systems.