Value core

The Smart Manager - - Value Core -

In his book Break­out Growth Strate­gies for Emerg­ing Mar­kets, Pro­fes­sor Jagdish Sheth draws the con­tours of the 4As frame­work—ac­cept­abil­ity, af­ford­abil­ity, ac­ces­si­bil­ity, and aware­ness—and ex­plains how these can ef­fect trans­for­ma­tive change and spark re­verse in­no­va­tion. This out­side-in cus­tomer-cen­tric ap­proach, which is the foun­da­tion of this piece too, is a sure-shot path to gain com­pet­i­tive edge and drive con­tin­u­ous growth.

Peter Drucker, prob­a­bly the best man­age­ment thinker of the 20th cen­tury, pro­vided two unique per­spec­tives on busi­ness. First, the pur­pose of busi­ness is to cre­ate and re­tain cus­tomers. This was a novel idea be­cause most cor­po­ra­tions and their boards were or­ga­nized and guided by the cor­po­rate gov­er­nance re­spon­si­bil­ity to only share­hold­ers and in­vestors. In other words, ac­cord­ing to the fidu­ciary re­spon­si­bil­ity, the pur­pose of busi­ness is to cre­ate wealth for the own­ers. Drucker chal­lenged that think­ing. While to­day cus­tomer cen­tric­ity and cus­tomer en­gage­ment are taken as ta­ble stakes, it was a rad­i­cal thought in the fifties.

Drucker also stated that there are only two real func­tions of busi­ness: in­no­va­tion and mar­ket­ing. The rest are all costs. Again, it was a unique per­spec­tive on how to cre­ate value. He felt that in­no­va­tion and mar­ket­ing cre­ated value while most cor­po­ra­tions, and busi­ness in gen­eral, con­sid­ered both in­no­va­tion and mar­ket­ing as cost cen­ters

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