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

Purchase costs used with the product itself
Reduce purchases of items used with the product itself

Modify product for more than one use

No. SIC Year Note
1 3500 1987 With Pangborn plate descalers, one machine often cleans many shapes and sizes.
2 3500 1989 Some fax machines can double as copiers. But they make only one copy at a time and are slow.
3 3571 2000 There is a great deal of new competition in the hand held market. Cell phone makers are moving their products into that market by enlarging their screens and adding calendar, phone book and other functions.
4 3578 2001 Handspring has countered Palm with it's Visor, which can be turned into an MP3 player, a camera, or a cell phone.
5 3674 2003 Altera's creation, PLDs (programmable logic devices), caught on everywhere and are widespread today. PLDs can be reprogrammed after leaving the factory, which give them a clear advantage over traditional chips. PLDs are also ideal for the fast-changing technology.
6 4812 2003 Long the mobile service of choice for construction workers and cabbies, who rely on Nextel's Direct Connect – a walkie-talkie service that allows immediate contact among multiple users at the push of a button – Nextel is now pushing hard into new fields.
7 4812 2003 For the past nine months some 2,500 employees at IBM Research's facilities have been testing a Nextel system that allows handsets to use both cellular and Wi-Fi networks, indoor and out.
8 4813 2001 Japan has a huge mobile-phone market with 70 million users (out of 127 million). 2/3 of Japan's users use their phones for e-mail and other Net services. Carriers want to add revenue by allowing their users to have service overseas.
9 4899 2003 Wi-Fi is a wireless link that lets all wireless users blast data short distances at 200 times the speed of a dial-up modem for no extra cost.
10 7379 2004 VMware products divide the processing power of computer hardware into smaller pieces, so that several "virtual" computers can run side-by-side on a single machine. Four virtual machines on one larger computer server is usually cheaper than four servers and allows for use of more than one operating system. Virtual machines can also be created in minutes and accessed by users over a network or packed into a portable storage device to be reconstituted on other hardware.

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