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

Time: Reduce the time the customer must spend with the product

A. Reduce steps the customer must use with the product

Bring products closer to the customer
Serve current customers with new products, saving customer purchase time and increasing your revenues

Establish a service organization

No. SIC Year Note
1 3571 2001 Compaq will spend $500 million to create a service unit in an effort to cash in on the growing industry. Currently, there are a variety of services from high-priced consulting companies who will create IT systems, to systems integrators to outsourcing, in which companies actually maintain their clients' systems. However, it is a difficult and expensive industry to break into, as competitors have seen. IBM had to build an IT staff from scratch but has seen big rewards for its efforts.
2 3571 2003 With its introduction of new servers, printers, handhelds, and storage products, Dell Inc. is simultaneously increasing its range of systems design and consulting work for businesses.
3 4200 2004 UTi has launched a customs brokerage business and a contract logistics service used to assemble and warehouse goods. In addition, the company spent years developing EMpower, a platform designed to track shipments down to the individual product. EMpower connects UTi's operations in 263 cities and 93 logistics centers in 49 countries, plus a few hundred agent-owned offices around the globe. The company's goal is to build up services for specific industries – pharmaceuticals, apparel, automotive, or electronics – that use UTi's services.

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