7.3 Management directions
By narrowing their focus, management can push a business toward a higher number Orientation. By enlarging the focus, the business is likely to adopt the features of a Business Orientation of a lower mumber. By deepening or enriching the focus, the business gains access to new discoveries in its field related to satisfying customers’ needs within the same Business Orientation.
For example, if Mr. Bill Gates of Microsoft had not narrowed his focus at the very beginning of his career—specifically when signing the first contract with IBM for the delivery of an operating system—he might have become an Expert provider of tailor-made operating systems for various computer makers, his clients. On one hand, this contract demonstrated typical Expert–client relationship features, as it was concluded for something that did not exist at the time and was only to be developed by the Expert at the client’s request. On the other hand, it atypically prevented the client from fully controlling the solution. The fulfillment of the contract was also significant: it was half Expert, half Product, since Microsoft purchased software from another company and adjusted it to meet IBM’s needs. These atypical aspects pushed Microsoft toward Product Orientation and had a “productization” impact on the entire industry.
Microsoft’s operating systems later resembled a combination of Product and Self-Service Orientations, as they became platforms that independent software developers supplied with their applications. Another shift toward Self-Service Orientation occurred when Microsoft began offering its software via the cloud, with payments based on usage.
Opposite business focusing led IBM to cultivate the Expert Orientation with the stress put on the client’s larger needs by launching Global Services instead of concentrating on Product Orientation.
Business Orientation deepening or enriching enhances the satisfaction of needs within a single Business Orientation. This improvement is linked to the application of new knowledge or discoveries, leading to an even greater Product, a more competent or helpful Expert, or a more accessible form of Self-Service. Some discoveries are considered “new field discoveries” and are rarely realized within the same business. For example, if this were not the case, the first airlines would have been launched by railway companies as an improvement in the transport Self-Service sector. Ignoring or failing to introduce such “improvement discoveries” can pose significant risks to a business’s survival.
For instance, Mr. Henry Ford, who played a pivotal role in transitioning the car industry from the craftsmanship stage, had an extremely narrow focus. His primary objective closely resembled Self-Service: making car transport accessible to everyone. In doing so, he essentially turned the car into a Commodity. Ford’s narrow focus drove him to invent the first self-moving production lines and to secure essential production inputs within the Ford Company. However, he did not deepen or enrich his focus within his primary Product Orientation until competition from other Product-focused car manufacturers forced him to adapt. Ultimately, he was compelled to shut down his factory, lay off workers, and design a new Product-like car to replace the outdated Commodity-like Model T.
The enriching or deepening changes within a single Business Orientation can also be observed in the evolution of airlines’ Self-Services. To remain competitive with low-cost carriers, many standard airlines have launched low-cost operations. Additionally, new companies have introduced innovative Self-Service solutions for owning and using private planes, further demonstrating how deepening or enriching Business Orientation can drive industry advancements.
Overall, businesses should be aware that it is not the object of delivery that is delivered. It is the purpose to which the object of delivery serves that is ultimately delivered.
Note:
The blog post ‘The Self-Service Cascade…‘ examines the deepening (r)evolution of Self-Service across firms in financial services, while ‘Amazon – From Self-Service to Super Self-Service’ analyzes its progression within a single firm, Amazon.