Download PDF by Hiroyuki Itami: Mobilizing Invisible Assets

Leadership

By Hiroyuki Itami

The writer means that winning company options depend on the marshalling of a firm's "invisible resources" - assets akin to technical information, the visibility of a model identify, or wisdom of a purchaser base - in addition to its tangible resources, akin to humans, items and funds. He emphasizes the methods process needs to healthy the firm's exterior atmosphere and in addition stresses the significance of inner healthy in the association.

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The cost of supplying supplemental services also goes down at that threshold level. It then is worthwhile to provide such services to attract customers who see service problems as a barrier to buying a product. For example, a person might resist buying a camcorder because he is afraid that it will require service. Once the service system is in place, however, he can depend on it not just for repairs but perhaps also for advice on using the camcorder. Identifying and removing the barrier can be a very effective way to create new consumer desires.

The information received from the environment and stored within the firm has to be directed to the appropriate decision makers quickly and accurately. Without an internal information flow system, the accumulated information does not have much value; it has to be used in strategic decisions. Suppose the sales department finds out what kinds of products customers want. This information has to get to the people in charge of product development, who must then respond quickly. For this series of actions, the sales department must first obtain the information and transmit it to the product developers accurately.

But consumers in the two cities are quite different. The Osaka "no nonsense" consumer lives in the commercial center of Japan, while the Tokyo consumer, in the nation's capital, has more aristocratic tastes. The same styles of clothing will not sell equally well in the two cities. Defining a product line or market as homogeneous can lead a strategist astray. Phrases like "a line of prefab homes" or "the automobile market" give a false impression. Customers for luxury sports cars are clearly different from those who purchase economical compacts.

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