A VC in Vacationland

Customers (Photo credit: Vinqui)

My friend Adrian Gonzalez , founder of Logistics Viewpoints (one of the top sources of creative supply chain thinking today) reminded me of this excellent article every entrepreneur should read. It's 15 years old, but the messages ring true today.  

"In their July 1997 HBR article "Discovering New Points of Differentiation," Ian C. MacMillan and Rita Gunther McGrath write that "most companies, in seeking to differentiate themselves, focus their energy only on their products or services. In fact, a company has the opportunity to differentiate itself at every point where it comes in contact with its customers-from the moment customers realize that they need a product or service to the time when they no longer want it and decide to dispose of it." They go on to say: "We believe that if companies open up their creative thinking to their customer's entire experience with a product or service-what we call the consumption chain-they can uncover opportunities to position their offerings in ways that they, and their competitors, would never have thought possible."
The article outlines how to map the consumption chain, which includes answering questions such as: How do customers find your offering? How do customers make their final selection? How is your product or service delivered? How is your product or service paid for? What is your customer really using your product for? What do customers need help with when they use your product?"