If your product sucks, your company probably sucks too
Companies that make excellent goods, have great people, processes, strategies.
Let’s get real! If your product sucks the rest of the company probably will too. You most likely won’t be in business very long, and will make very little to no money. If you get lucky and make a few bucks you’ll probably have to spend everything you earned trying to save your business that’s fighting to stay relevant and on the shelves.
What’s the solution? Make a great product.
“Great companies are built on great products!”-Elon Musk
But what does that even mean? How does one define a great product from a mediocre one? What can I do to make something great without having to invest millions like starting Tesla or Apple? Why is it so complicated?
It’s really not.
Time and time again great products have been identified as those creating the most VALUE for the consumers. Not the perceived and “wannabe” value, but real value or increase created by the good or commodity.
“Price is what you pay. Value is what you get.”-Warren Buffett
What does Warren Buffett even know about creating a product?
I have no idea.
But he knows a loser from a winner and he absolutely understands value creation. The rise of his financial empire and smart buys is proof that he knows what consumers and investors value.
There is no universal definition for value added or created, but there is a key difference between the average and the great. Products that add the most value also differentiate, they stand out, and they innovate.
Innovation is at the center of value creation!
Customers need you to innovate and differentiate. They are begging for products to be better, simpler, and unique. A perfect example is the consumers willingness to stand in line and wait for hours to purchase the latest and greatest iPhone and the long line of consumers waiting for their new Tesla Model 3.
The Tesla Model 3 may too controversial for some. I don’t think so. It’s an outstanding product from a great company. But for those that truly don’t believe in Electric Vehicles, another example is the quickly selling out L.O.L. toys in the UK in late 2017. The toy was new, innovative, and simple. Today, it fly’s off the shelves and is dominating the market.
How can you innovate and create great value with your BIG idea?
Clayton Christensen wrote an interesting piece on CNN in January 2013. In this piece he groups innovation by businesses into 3 categories: Empowering, Sustaining, and Efficiency. Here are some 1 liners of what that means.
Empowering Innovations- These transform complicated, costly products that previously had been available only to a few people, into simpler, cheaper products available to many.
Sustaining Innovations- These replace old products with new.
Efficiency Innovations- These reduce the cost of making and distributing existing products and services
Every great product should create value by innovating in one or more of the areas above.
But why the correlation between the great products and great companies?
The outputs are a representation of the inputs. Great companies aren’t complacent with current results and they allow that to drive their work. The culture in these companies promotes excellence.
“High performing companies understand that their work is never done and continually pursue new innovative ways to reinvent their business” — Mike Schneider
As companies work towards what they want to become and the products they want to create they avoid, or stop developing products that are short of being the best. Steve Jobs was king of value and is recognized as one of the greatest value marketers ever. Here is what he said about innovation and not making crap products.
In short the value of a product or good is representative of the corporate culture. A culture that strives for excellence and isn’t satisfied with mediocrity. These companies are led by passionate and result driven CEO’s who go to extreme lengths to do things properly. They understand their brand image, and what their customers truly want.
THESE COMPANIES ARE GREAT!
Thiefaine, a founder and COO of Prouduct LLC a global Sourcing and procurement company. He is also known as “The Product Guy”, and host of the soon to be launched “Product Guy PodCast”. Thiefaine is recognized as a thought leader for product development and creation. His work with contract manufacturers has taken him around the world and across many industries.
To contact Thiefaine about a FREE product consultation and supplier audit please contact Prouduct.
