Why Systems Are Essential For A Competitive Advantage
Think of any enormously successful product or service - whether it’s the iPod, Coca-Cola or the Starbucks coffee chain - and you’ll find, at it’s core, a little discussed, yet immensely powerful system. Indeed, it is this proprietary and sometimes patented system that lies behind the competitive advantage enjoyed by the makers of that product or service. And it’s a system like this that is essential to YOU achieving a competitive advantage in your market place.
Systems are the lifeblood of any successful enterprise and its product and service offerings. Businesses that grow into large and profitable organizations only do so through the systemization of every aspect of their business. Indeed, they typically use process maps - such as a Cashmap - to document each of their key processes or systems. From how they hire people… to how people do their jobs… to business development… to internal entrepreneur systems… to how products and services are developed and delivered… to every element of the business operation as a whole.
Indeed a business IS a system. But the difference between a successful and failing business is often due to whether or not the business perfects, implements and improves every single system that makes up the overall business system. Much like the human body, which relies on various biological systems, a failure of any of the systems that contribute to overall business performance is likely to damage the business system as a whole.
The late business thinker, Peter Drucker, said that a business has only two purposes: innovation and marketing. In both cases - for innovation to lead to differentiated products and services, and for marketing to position those products and services as being superior to competitive offerings - unique, proprietary systems are required. Firstly, when it comes to developing truly innovative - and more importantly, unique and valuable products and services that cannot be replicated by others - it’s essential that a business protect its intellectual property. If possible, the business should patent any innovative and unique processes and systems.
However, regardless of the legal protection available, a business can also stand head and shoulders above its competitors by establishing its own, highly effective methods of marketing its products and services. How? By offering more value to customers… delivering an unmatched level of customer service… using more convenient distribution channels… promoting to customers in more appealing ways… And these are just some of the ways a business can achieve distinction through its marketing systems!
And, yes, each of these can, and should, be systemized in order to further cement a competitive advantage. And given the relative ease of doing so - by, for example, mapping out each process in a Cashmap - the business will have the means by which to avoid the commoditization of the product or service and the related risk of having to compete on price.
In conclusion, if you want to achieve a substantial competitive advantage for your business, be sure to develop, market and sell a proprietary system for your products and services. By applying this approach to business development, which can be relatively easily documented using a Cashmap, this will help create a space within your marketplace that cannot be challenged by your competitors.
To System Success,
