Systemic Management #16

Systemic Life Cycle Approach

We have become accustomed to all sorts of schemes, which, by the way, work in principle. Unfortunately, in principle you find everything, including what we do not have and what we cannot bring into our reality.

The problem with these schemes, of the life cycle of: industry, life, product, company is that it does not work in reality. To me, it's just a theoretical representation. This is demonstrated by 96% of businesses that fail to exceed 1 million euros in turnover. Or see the significant distance between the top 500 Forbes companies and the rest. The reality is harsh, only 4% of companies in the world follow, in one way or another, the schemes. The rest is as follows.


Let's take into account the life cycle calculation (birth, growth, maturity, decline, death), the life cycle of a product (launch stage, growth, maturation, decline), the life cycle of an industry (early stage, innovation, elimination , maturation and decline) or the marketing cycle of a new product (innovators, first users, early majority, late majority, last). Almost everyone respects this bell below.


If we approach things systemically, I would suggest that we look at exactly what no one is looking at. Most analyse things in terms of content. I suggest you keep in mind the lines between the stages. True, no one pays attention to these lines, but I suggest we take them into account. Why? The lines between the stages are the most important thing: that moment of passage. Let's call it momentum. Losing that moment is pathetic. Ask a blacksmith what happens if you don't beat the iron while it's hot (or make hay while the sun shines). Or a manufacturer of glassware. What happens if you lose the moment when the glass has reached the modeling temperature?

No sense in telling you now - I don't wanna ruin the surprise. What happens to the asphalt if you do not work with it at the optimum temperature for gluing and pressing. We see it on roads where we have more craters than a straight road.


Finally, let's go back. If you made sales like me, you saw how important it is to warm up the customer and how difficult it is, if you lost the moment when he would sign the contract, to bring him back to the temperature needed to close the deal. It is the same with a startup that comes on the market with an innovative product, but loses the critical moments between stages. As in this scheme:



Sometimes people's reaction to the product is delayed. If at that moment the customer has a latent awareness of the problem that our product solves, even if we waste all the effort and money reserves in the world, the customer does not buy more anyway. On the contrary, we are against advertising. The client feels assaulted and takes our bad name further. And if, when the customer wants to buy, we no longer have the resources to serve him, instead of crossing the abyss, our company remains among the 96% of startups.

The secret is to connect the business with the customer's pattern. Identify the moment when the customer changes his perception of the relationship between the customer's problem and the innovation of your product. Please note that we did not refer to the client's needs or expectations. But to the problem he solves. We did not refer to your offer, product or product features. But innovation. Basically, the customer will buy when: you define the problem in the same way, you have agreed on the direction in which you want to solve the problem and then you present the offer, ie the innovation that will solve his problem. Until next time,


Systematically manages,

Claudiu Budean


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