I had a meeting with all the team that owns and manage a custom software development company that is looking how to make their company more valuable and enjoyable. The team integrated by 5 executives that has been on business the last 15 years complains that they face a tremendous competition in the market. All their customers press them to improve the business by continuously and reduce the price they pay for each hour that is provided.

This is a typical situation for a service company in a very commoditized business. I explore the success and the experience of the company as a way to understand where is the hidden value that they have and they do not know. It is a great challenge to pursue in a two hour meeting, where I was in one side trying to understand what is the current state of the company, find a potential avenues to pursue and define an action plan that can be affordable and viable for them in the short future.

I love this kind of challenges. I dare to propose them to identify which is the best project they had done in the company and how they can use their experience in their business.

After a brainstorming about that subject we came to the idea that today market for insurances is based in apps used in your mobile device, therefore we choose to explore this market. We started to explore different sources of information in a way that they created a list of 15 apps. A great surprise came that the most referenced and mentioned apps where completely different; some focus in how to buy your insurance, others how to manage your insurance and the objects insured, other to fill claims, etc.

With so broad level of alternatives, my friends were ready to say I am done, it is no way to find a new application to be done after researching all the references and information available.

This one we came with the conclusion that having the desire to make something new is not enough, they need to appoint a team focus in this project, assign some resources to execute and fix a goal to accomplish. My friends came to a team back to analyze the situation, where they have a good guess that they need to do it, but the decision implies a lot of risk that they wanted to meditate and analyze in depth before commitment resources.

Now is the time for reflection, having a great opportunity in the table is time to define what they want to achieve and how much resources wanted to put in the table to take this risk.

Are you in a similar situation? Don´t hesitate to explore new opportunities, not all them will be good, but not been part of this changing world is a recipe for failure in the long term.

References

http://www.ambest.com/about/

http://tech.co/5-coolest-insurance-apps-2013-09

http://www.insurancejournal.com/magazines/features/2013/04/22/288686.htm

 

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https://opensource.com/business/10/11/why-management-innovation-so-hard