In order to grow top-line sales, many companies make the mistake by acquiring another business or capability outside of their core competency, or in other words, overlooking what they are really-really great at.
Being in the manufacturing space, we are constantly being bombarded by opportunities in and outside of our core competencies. It can be very alluring to see an opportunity that has nothing to do with what we make or have ever touched before. It's new, it's exciting, and looks very promising. However, just because we are very successful in the manufacture of precision sheet metal products, does not correlate that we will be good, for example, in the manufacturing of wood products. Both are manufacturing, but the raw materials act and behave very differently.
Recently we purchased the fastest precision sheet metal laser cutting system in the world. The machine was manufactured in Japan while the automation was produced in Europe. The machine has the capability to run unattended, "lights out", operations. The automation requires a person to load the raw material and unload the completed only a few times a day.
Immediately what was normally a bottle-neck process, became a high producing work center. Whit that, the entire company benefited by increased throughput and increased customer satisfaction. And, our competitors, well they are not happy.
So, as I said in the beginning, a bigger opportunity lies in improving your performance in the industry your are in, by constantly tweaking your strategy and strengthening the capabilities that create value for customers and separate you from your competitors.
In the end, what is your company really-really great at?
Being in the manufacturing space, we are constantly being bombarded by opportunities in and outside of our core competencies. It can be very alluring to see an opportunity that has nothing to do with what we make or have ever touched before. It's new, it's exciting, and looks very promising. However, just because we are very successful in the manufacture of precision sheet metal products, does not correlate that we will be good, for example, in the manufacturing of wood products. Both are manufacturing, but the raw materials act and behave very differently.
Recently we purchased the fastest precision sheet metal laser cutting system in the world. The machine was manufactured in Japan while the automation was produced in Europe. The machine has the capability to run unattended, "lights out", operations. The automation requires a person to load the raw material and unload the completed only a few times a day.
Immediately what was normally a bottle-neck process, became a high producing work center. Whit that, the entire company benefited by increased throughput and increased customer satisfaction. And, our competitors, well they are not happy.
So, as I said in the beginning, a bigger opportunity lies in improving your performance in the industry your are in, by constantly tweaking your strategy and strengthening the capabilities that create value for customers and separate you from your competitors.
In the end, what is your company really-really great at?
