Many business people that I have met have this wrong idea that innovation is something that techies need to worry about - something that needs to be discussed in the R&D group meeting rather than the boardroom. The concept of innovation is so powerful that it can be applied to each and every aspect of doing business - in other words, to the business model itself. And as we contemplate the theme of TiECON, here is an excellent case study of how we can all take advantage of flattening world to drive our costs down and enhance the customer experience.
According to a story in the New York Times, "The Long-Distance Journey of a Fast-Food Order," Matt Richtel reports that when you drive up to some McDonald's locations, do not assume that the person you speak to to place your order is working inside the restaurant (old model). On the contrary, that person is a customer-service rep at a call center (in California). The order is transmitted to the restaurant almost immediately and is prepared for you during the time it will take you to drive to the pickup window.
How does McDonald's create value?
- It lowers the cost of doing business. Employees who traditionally answer the phone can be eliminated or asked to do prepare the order in a shorter time.
- The company can train a small group of reps to treat customers more consistently. For fast food restaurants it is a nightmare to train teenagers and employees (most of whom do not speak English as their first language) to be courteous and efficient.
Will the call center move overseas?
You bet. Since this is only a trial, I expect that eventually your order may be taken by call center employee in a less expensive location.
What a great way to make optimum use of resources scattered globally!
- Posted by Jay Dwivedi
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