Steps to Developing your Business
Many organizations think of business development as sales prospecting. We at LYNXBMG view business development as ‘developing-the-business’. By doing so, it is a means of sales growth through demonstration of operational excellence. Customers are focused for a supply-chain that is engaged in continual development and thus being the right manufacturer to support their mission.
There is a variety of manufacturers in terms of organization, structure, and operational proficiency. Some are SME’s that have the business basics to take in an order and produce the part with little invested in infrastructure. It is critical for manufacturers to have an established set of processes such as but not limited to S&OP (sales & operations planning), manufacturing order management & control, warehouse & inventory management, master production planning environment. Without it being developed and an integral part of the company’s baseline operations, such companies will always have barriers to acquire the business they aspire to.
The next group is in the spectrum of having established ISO and other necessary certifications with underdeveloped infrastructure in terms of management processes and systems. They meet the necessary requirements, however, are not fully invested to make their organization a well-oiled machine through the phases of business acquisition to delivery of product and customer service.
Manufacturers who do develop their companies in its entirety to meet the intent of the aforementioned certifications are what customers are looking for in a key supplier. It all leads to productivity, reduced COGS (cost of goods sold) and proficiency. Those companies have a solid foundation of operational excellence. Within the high-tech sectors, (e.g., Aerospace, Energy, Automotive, Medical), such manufactures are required to meet the basic operational requirements enabling steps of evolution and development. OEMs and key Tier 1s not only expect it from their top tier suppliers, but it is also paramount for their own supplier development objectives.
The chart below describes what the LYNX Business Management Group defines as a rudimentary roadmap for developing the business in terms of operational infrastructure. Each of the Levels requires the previous levels to be well established, defined and institutionalized within the organization.
Take a moment to pinpoint where your organization truly is on this map. Your company may be approaching a level and/or a combination thereof. It is of great importance to be proficient at a level before taking the next step.
Developing your business to Level 2 and 3 does not require an extensive budget and is not titanic in task. It simply takes leadership and a supporting team to implement the basic management and control infrastructure. Support from industry experts in this field to coach, direct and train can be paramount for success and to help fast track through hurdles and pitfalls along the way. An investment of this kind will, in the end, pay dividends with less cost & time than doing it on your own facing false starts, restarts and roadblocks.
With Level 3 achieved, reduced COGS will provide residual funding to help support the next steps of evolution. In this stage, you will find that your critical and most valued resources have taken ownership of the operational processes with focus toward excellence. Again, leadership and commitment is key. Without it, success and getting your team to ‘own’ the proficiency of the operation is unlikely. Success will result in Operating Income increases confirming with the stakeholders that the organization is delivering upon an upwardly developed business.
The next step (Level 4 (Industry 4.0)) is now looking at what you do in your factories that can be automated to facilitate the reallocation of valued resources for focus on more profitable activities within the organization. When Level 4 is partially or fully achieved, reliable data can then be utilized for algorithm analysis that will further fine tune your organization.
Level 5 – AI (Artificial Intelligence), is capturing the data that you have in front of you to simulate intelligent and predictive processes, support manufacturing equipment and, computer control systems that drive systems for the product you manufacture and market.
Level 4 & 5 are differentiators that will distinguish your company from those remaining at lower levels of development.
Richard Lavigne; Founder