In the last one or two decades, enterprises have been focussing on the supply side of their business. This was primarily related to reducing inefficiencies, extracting more value out of leakages in supply processes, shaving-off wastages thro' better logistics & distribution, managing inventory in near real-time and hence improving margins by reducing capital employed.
As companies continue to implement many of these SCM initiatives, in the next decade or two, what will drive value for companies? I believe they need to shift their focus to Customer Chain Management(CCM). Here's where maximum value can be created for companies.SCM can only squeeze incremental value for companies.That may not be just enough. Hence, they need to adopt CCM to gain market leadership and to improve market capitalization.
Let's take an example of Apple. They have excelled in managing the customer chain better than any of their competitors. The iPod is a great example of best practice CCM. Here the premise starts with customers wanting to hear great music. The customers just didn't need only a product.There were thousands of them to choose from. The way iPod organized the music for them, iTunes as a service where they were given "pay-as-you-go" flexibility, accessories that made it possible for them to hear "on-the-move" and " in-the-room" to enhance their lifestyle made it a compelling proposition.
Take a look at what are the various elements of the customer chain that they have brought together in the diagram below. The "value creators" of tomorrow will be ones who can bring various parts of this customer chain together. There is value to be " added" at every part of the chain and CCM has the ability to significantly multiply the revenues for companies.