SWAMI SOMESWARANADA

Pen Drive Contents :-

1. Business Development
2. IWM
3. Entrepreneurship
4. Stress Management
5. Transcending your limit
6. Marketing yourself
Business Development
1. Tap your hidden strength & opportunities outside
2. The main areas
3. Value-chain parts in the PROCESS
4. Differentiate your PRODUCT
5. Re-define your CUSTOMERS
6. Re-invent your CHANNELS
7. Re-engineering of your ORGANISATION
8. Move to new related areas
SWAMI SOMESWARANADA

1
 The Main Areas
Evaluate other ways to benefit
From your existing assets

Identify your hidden value Move to new related areas

Identity the value chain parts in your

production process

Differentiate your products

Re-define your CUSTOMERS

Re-invent your CHANNELS

To deliver products or service

Re-engineering of your
ORGANISATION

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 Exercise – 1, 2, 3, 4
Problem : As a small player, how can I survive as the government is decontrolling the reserved list for
SSIs?
Solutions : (1) Use your assets optimally and notice the hidden value of your organisation.
(2) Don’t get stuck with limited options. Notice other areas where you can flourish.

Problem : My present product/service does not sell much now-a-days. With limited resources I
can’t invest in a new business and I have huge sunk costs.
Solutions : You are not thinking about the extension of your product/service. Offer new things
based on your existing strength.

Problem : With limited technology I can’t complete with others.

Solutions : Instead of doing everything yourself can you be more focused? Which part of your value chain
is strong conducive to new situation? Can you make it more value-adding and profit-
generating? Can you bring a change?

Problem : I do not have many customers. This stops me to expand my business.

Solutions : Based on customer-preference and customer-ability, offer a portfolio of your product/service at
different price points.

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 Value-chain parts in the Process
Identify the value-chain parts in your
PRODUCTION-PROCESS

Assess each part of your

Value-chain and decide which
One can fetch more value
In the changing scenario

Can you make it Can you go for

More value-adding and Forward or backward
Profit-generating? Integration ?

Can you do it yourself ? Do you like to

Or, need help Move to the next
of other’s ? Adjacent step ?

How Develop a strong network

of value-chain neighbors

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 Exercise – 5 & 6
Problem : Sometimes I feel that if I go for forward or backward integration., I may create
extra value in my business. But as an SSI, I can’t invest too much.
Solutions : (1) See whether by selling your non-core business you can put this extra
money to acquire the new step in creating more value.
(2) Otherwise, go for a long-term arrangement with your value-neighbors and
guiding them become an important player in that particular value-chain
point.

Problem : It is so difficult for an SSI to survive as it hat to fight alone. I have to remain as an
ancillary unit of a large Company, and thus I am dependant upon it.
Solutions : As an ancillary unit you enter into a long-term arrangement with your customer i.e.
the large Company, This will make you feel secured and he will help you in
developing system and technology.

Or, if it is not possible, develop a network of your own with others SSIs and make
them all business partners on long-term arrangement.

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 PRODUCT

Differentiate your
PRODUCT

Develop 3 Product
variants Innovation

Portfolio of product at
different price points
Designing strategy

Customer to product

Offer new &

knowledge to product Newer solutions

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 Exercise – 7, 8, 9, 10
Problem : I am offering the same product at a cheaper rate because of competition. This is eating up
my margin
Solutions : Offer’s variants of your product : (a) low price # accepted quality; (b) moderate price #
moderate quality; (c) high price # high quality.

Problem : Other’s products sell, but not my product. Other’s make profit but I am unable.
Solutions : Compare, your product and price with others. Study – What stops the customers to
make more use of your products ?

Problem : Even if I innovate a new product, when customers accept it, others may imitate my product and
thus I may face competition.
Solutions : Customers do not want just a product but a total solution to their specific problem. So, you
develop a solution around your product; offer ways to improve customer’s job. Can you offer a
package ?

Problem : Sometimes I get confused. I do not understand what to offer. Even if I offer something better,
customers just refuse.
Solutions : Customers are interested in a solution that will help them. So, collect information from them to
know what exactly they need.
Take the case of a gadget used by housewives. Study the steps she hat to take in using that
gadget. Note the steps 1, 2, 3…….. Taken by her. Now can you make one or more steps more
convenient or simpler to help her ?

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 CUSTOMERS

Re-define your
CUSTOMERS

Customer-mapping
(Who needs you ?)

New / Unusual
Customers

Offer a niche with variants of

your product.
To WHOM ?

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 Exercise – 11, 12, 13
Problem : How can I identify potential customers ?
Solutions : Focus on the question : Who needs me?
Do Customer-mapping.
Decide how you can move from one customer segment to
others.

Problem : How can I attract new customers ?

Solutions : Approach new and unusual customer.
Focus on new influencers and decision-makers. Aim entrants.
Watch the companies in a different segment of the value-chain

Problem : If I have a very loyal group of customers ( diversified or any

particular Company)
Can I sell more to them ?
Solutions : Focus on a particular segment of customers; offer a niche,
along with variant of products.

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 CHANNELS

Re-define your CHANNELS

to deliver product / service

Offer multiple
channels

Can you jump some

Intermediate channels ?

Find out new intermediate

Maximize distribution Steps for your new
channel Value-added elements.

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 Exercise – 14, 15, 16
Problem : I find it very difficult to satisfy the retailers/distributors as I can’t give
much commission or margin.
Solutions : Devise multi-channel delivery system. Channel-option will help you to
become more cost-efficient and value-providing. (Books can be sold
through shops, Net, book clubs, mail orders, book exhibitions etc.)

Problem : Sometimes my immediate customers (retailers/courier) fail to deliver. Thus

my credibility goes bust. But at the same time, I can’t do their job. Can I
avoid channel cost ?
Solutions : Can you jump some intermediate step/s ?
Customers too like to cut transaction costs.

Problem : As a small scale service provider, how can I start a new business ?
Solutions : Understand the process or supply chain of a group. Notice the weak link,
and offer your service there. (Through Govt. Postal department has vast
network connecting even remote villages, private courier service
Companies are doing a good business.)
Find out new intermediate steps for your new value-added steps.

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 ORGANISATION

Re-engineering of your
ORGANISATION

Develop the right structure and

System of your Company. Let there
be an organic evolution instead of
the present imposed one.

Developing new skills

Pyramid to network for the organisation.

R & D on the Making your people

shopfloor Business-oriented

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 Exercise – 17, 18
Problem : How can I make my people more productive ?
Solutions : Infuse business spirit in them, through empowerment. This will
help them to add more value both in production and sales.
Instead of the present Pyramid structure, make it flat with
more and more profit-generating centers. Go for the Network
structure.

Problem : As an SSI, I cannot afford to bring latest technology or

have an R & D department. How can I survive in this
competitive age ?
Solutions : Bring R & D on the shopfloor. Involve shopfloor people
more in value-adding and to come out with new business
ideas. Involve the sales people too.
Also focus on the local needs.

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 Business Extension

Identify related
areas
Notice the solutions offered
By your product to
different
Focus on a new Strata of people
segment

Variants / niche / extension

of your product

Make your natural skill

A special strength

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 Exercise – 19
Problem : I have only product. I can’t afford to increase my
portfolio. How to go about this?

Solutions : Find out how you can extend your product/service

to other areas. A product means different things
(solutions) to different customers. A small statue
of a deity can be used for worship in one’s home-
shrine; another may use this as a decorative
piece; the third one may like to keep it on the
office table as a paper- weight.

Can you offer your product to solve many

problems ?

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