Three Models of Tailoring1
the Right Product at the Right Time:
through aligning your business to your customers' specific
needs; or through alternative tactics, such as virtual sourcing.
Crafting Custom-made Solutions:
adapting the core product, or building solutions from the ground
Taking the Customer's Problem Away:
assuming the duties that trouble your customer.
Case in Point
Adapts Its Billing System to Wal-Mart's System
Source: Roads to Success, by Robert
The application of
Six Sigma was crucial to ending
the dissatisfaction of GE Lighting's biggest
The billing system between GE and the retail
giant Wal-Mart was malfunctioning. Faced with disputes, payment delays, and
a dissatisfied customer, GE realized that its system required adapting to
Wal-Mart's system and needs.
Six Sigma was put to work, backed by some IT improvements and US$30,000
in investment. Within four months defects came down by 98%. Wal-Mart became
much happier and GE Lighting earned back its investment many times over...
Is Problem Solving
Case in Point
"When you've got a large market
opportunity facing you, the only way to handle it is to divide and
Michael Dell, the Founder of
Dell Computer Corporation.3 "That's the basis behind
our concept of
segmentation. It ensures that as we grow, we are able to serve
each individual customer more effectively, and it has become the
organizing philosophy of our company.
"Most companies segment by product. We
decided also segment by customer. We believe that a customer's
unique needs and behaviors more closely determine what products and
services we should develop for them. And because Dell sells directly
to our customers, understanding the unique needs of each customer
allows us to address them better.