Final Customer Purchasing from the Product Producer

Use Steps: Use steps include all the customer's value added activities or the consumption of the product itself. These steps include all the costs the customer incurs in employing the product in its intended use.

Resources: Reduce resources required for the use of the product

Money: Reduce the money the customer uses with the product. For more ideas on using pricing, please see the Improve/Pricing section of StrategyStreet.

B. Reduce the customer's spending on people, purchases or capital costs the customer uses with the product itself

People costs

Substitute technology for people

No. SIC Year Note
1 2411 1999 Technology advances have made it easier to streamline costs while keeping up production in the timber industry. Weyerhaeuser Co. is among many in the industry that have been equipped with computerized log cutters that require only a small group of workers to oversee.
2 3524 1988 Technical has new Lawn Ranger, a self-propelled robotic lawn mower that uses a patented sensor guidance system to detect uncut grass, & a computer to direct the machine to the area needing a cut.
3 3534 1997 Aerial work platforms come in two varieties and are used as an alternative to traditional scaffolding. The booms are essentially baskets fixed to the end of a long, expandable pole. Both devices have an advantage over traditional scaffolding, because scaffolding has to be put up and taken down.
4 3571 2001 Web services are shaping up to be the next big frontier in computing. Technology leaders foresee a day when all manner of jobs, from managing relationships with customers to coordinating with distributors will be handled by service delivered by the Net rather than with traditional software programs, phones, and faxes. While is its too early to tell how big the market will be, this is one topic where Sun CEO and Microsoft agree. Everything in the world will be in Web services.
5 3572 2002 StorageTank would unite files in a cohesive package, meaning businesses could manage more storage with fewer people.
6 3600 1987 Odetics' $300,000 TV system for television studios has as many as 280 tapes arranged in slots. Robot arms can simultaneously select and play a tape, retrieve a finished tape from a playback machine, and return another tape to its storage spot.
7 3674 2001 To build support with PC makers, Via formed a new unit called the Platform Solutions Division, which makes PC motherboards and sample product designs. Via emphasizes total connectivity, and they cover all products.
8 4513 1992 1982, we started with electronic invoicing. About the same time, we started our PC based system. And our shipment processing system started about 1988. And then remittance started about 1989.
9 4812 2001 Another Globalstar plan is to sell data services to companies that need to monitor far-flung operations, such as pipelines. With a modem designed by Qualcomm, users can send data such as pressure, flow and temperature to a far-off control center.
10 4813 2002 As AT&T continues to struggle in the telecommunications industry, the CEO plans to take AT&T up market, positioning it as a premium communications service for businesses and affluent customers. The company plans to offer a highly accurate voice-recognition to help big businesses reduce staff. The long-distance base has dropped to 50 million customers from 80 million in just five years.
11 6141 2005 Discover plans to test an apartment-industry specific money-management system that allows renters as well as landlords and property managers to keep better track of rent-related expenses. PropertyBridge and Visa recently announced a collaborative effort that promises landlords and apartment managers integrated data reporting and reduced overall account administration.
12 7371 2002 In March Fox released Ice Age, the first full-length animated movie by Blue Sky Studios; It has grossed $173 million. Wedge uses proprietary software to create some of the most advanced geometric models ever.
13 7374 2002 Oracle Corp. believes it is cheaper for customers to buy outsourced software than to rely on an internal tech department. The president of Oracle's outsourcing unit believes their team can cut clients' software service costs by 44% to 66%.

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