The Cost of Perfection
Data has become the most strategic asset in modern businesses. It is now a “raw material” that any business requires to create and keep a competitive posture in its category. In order to convert this plentiful resource into business value, the data has to be refined, made easily accessible and deployed into the hands of marketers.
From the perspective of working with dozens of marketing and IT organizations, it’s all too common to see this process grinding slowly along — even as opportunity costs rise for the organization.
Those opportunity costs are real — as the organization doesn’t have the visibility into its customers base and the wider market to make new strategic investments that competitors can’t even consider. Put another way, the opportunity cost is the foregone competitive advantage.
A Case Study of a 'Strategic Growth' Opportunity Cost
A large "brick-and-click" retail brand asked us to look at its business, as it lacked a clear plan on how to achieve ever-increasing growth goals pushed down from the C-suite.
When the conversation started, it was a very tactical discussion. Lacking a strategic dimension or business context — the outcome or definition of success ultimately was to do something new and fresh.
The C-suite wanted outsized growth. So while the market they served was growing modestly, growing only with “the pie” or the market itself would not meet expectations.
Taking share was going to require a more advanced strategy.
With a large retail store footprint in North America and a robust online business, the company struggled to find credible new ways to scale sales and share further.
Shifting the dialog to the evidence of a specific business issue, and the impact that addressing that issue could or would be expected to have, helped focus the organization on the more concrete opportunities that existed.