At Penney Computer Consulting, business efficiency is our field of expertise and we use our knowledge of information technology, computer science, and software engineering to help leaders run leaner, more productive, including profitable companies. Processes and ideas that increase efficiency and outputs are just as important as hardware and software improvements. Economic-decision making technology should be applied at all levels of business.
Leveraging Your Advantage, What Separates You
It’s likely that you have advantages over your competitors. Advantages may include your location, brand reputation or a trustworthy brand built over generations, a unique patent or type of intellectual property, including specialized and highly trained talent.
Utilizing each of your strengths to its maximum potential can increase profits, encourage loyalty, and reduce competition. Consider the things that you can do better than anyone else and don’t be afraid to incorporate a feedback mechanism into your work with customers or clients.
Do you have unique resources or resources you can access at a lower cost or with economies of scale? Do you have specialized software or especially efficient IT infrastructure that allows you to process orders and increase productivity? These types of questions can help you create a Unique Selling Proposition (USP), also sometimes called a Unique Value Proposition, that separates and elevates you above your competition.
Marketing Value and Signal Theory
Are you getting the most from your marketing? A cohesive and strategic marketing plan should demonstrably increase sales. It doesn’t have to be a quagmire of expensive advertisement placements and some of the most effective marketing has minimal or no cost.
At the heart of marketing is basic communication and salesmanship. Marketing should communicate your unique selling proposition to your customers in a medium they receive, with language they understand, at a time that is convenient. It should provide a signal to customers that let’s them know that you offer a solution for their needs or bridge to their desires.
Fundamental marketing tools in the digital age include a search engine optimized website, email list, social media and other campaign. A well designed website establishes authority and if your website isn’t responsive (ready for viewing on a variety of devices and screen sizes), it may be time for an update.
Search engine visibility is determined by many factors and one of them involves having a professional writer to create new content and optimize pages to make sure that your business is found. Once people arrive at your website, your content should educate, inform, and encourage readers to take action.
Email marketing is one of the highest converting, most affordable, and most effective form of marketing. It allows you to engage your audience (even specific segments of your audience) over the long term to build a relationship that benefits you both. Your information technology consultant should be able to provide some insights in these areas.
Economic Decision Making
Economic decision-making can improve every aspect of management and leadership at a company. An opportunity cost of any action is the loss of profits from the most profitable alternative. For example, if you spend your entire budget on lemons for a lemonade stand, you lose the opportunity to create an orange juice stand. Because we have a finite (limited) amount of time and resources, every decision we make has an opportunity cost.
This is especially important at high levels of management where time is at a premium, or for startups where resources are scarce. It’s also important to understand that many things have diminishing marginal returns. Economists try to find the most efficient point of investment into a process or idea, and sometimes that means limiting the time and effort spent in one direction. Similar to the Pareto principle, if 80% of results come from 20% of the work, additional effort may be less effective than investment in other areas.
Conclusion or Final Thoughts
Economists are found in the upper levels of leadership in business and government. While most business degrees include basic fundamental economics courses, an in-depth understanding with regular application will help you continue to leverage your time and resources in the most profitable way.
An expert can help analyze the strengths and weaknesses of your organization, and find ways to increase business efficiency. Consider working with us, we can find ways to help you collect, process, and leverage data more effectively.