Blog Two – The Advantages of Intelligence

As companies move forward, whilst it will undoubtedly remain an advantage to be rich and powerful, size in itself, may not be such an important plus point. Most certainly size brings coverage and reach, but it also breeds cost and inflexibility and we will see instead the proliferation of many smaller companies who have replaced the advantages of size, with the advantages of intelligence.

What will intelligence bring to a company that might give it sustainable market value?

Well it might enable it to:

  • Sell more diverse products to its customer base thereby increasing margin and perhaps even loyalty.
  • Acquire only those customers who will likely be low risk and high value.
  • Only execute marketing campaigns in geographies where the ability to provide service and product actually exists
  • Remove the need for inventory completely by direct collaboration with suppliers.
  • Reduce the cash to cash cycle by getting customers to pay for goods prior to manufacturing them.
  • Eliminate the need for a direct sales force altogether.
  • Make fraud so unprofitable for the fraudster that they give up.

So what is the major business driver that is set to change our ways of doing business? It can be summed up in one phrase – natural selection.

Note: Now I fancy myself as something of a biologist and there are several points in Darwin’s theories of evolution that concern me but maybe we can save that discussion till later?

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About bibongo

I'm a consultant in the field of Business Intelligence and have been since the mid 80's which gives you some idea of my age! I'm priviledged to have held senior positions with Teradata, Oracle, Hp and EMC. I have an English son and a Swedish daughter seperated by some 18 years which is another type of welcome challenge!
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2 Responses to Blog Two – The Advantages of Intelligence

  1. Keith Prince says:

    Darwinism might indeed be the model that helps explain the legacy and future of business change, it’s an interesting idea. But in the ensuing crap game, the challenge will be how businesses find ways to load the dice. Have a look at Viral Loop by Adam Penenberg for some insight to how a business could play the mutation game.

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