World-Class, Lean 

Performance in the SMEs - Small and Medium Enterprises - by Carlo Scodanibbio, Industrial & Business Consultant - 

Lean Management Consultant
scodanibbio.com


Carlo Scodanibbio
Industrial & Business Consultant
Lean Management Consultant

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e-Performance in the e-Economy

E-monsters are very unhappy.
They don't find the right food for them on the Net. This has created a lot of turbulence, especially in year 2001 (the "crash-landing" year when the dot com bubble burst....).
The Net is full of mistakes. 99% of "traditional" enterprises have made and are still making e-mistakes, and show an extremely poor e-Performance.
What are they missing?


The e-Economy is a reality. Is there, alive and kicking. Finito.
There is even a e-syndrome:

the e-syndrome

All enterprises are operating, whether they like it or not, in the e-Economy and its related e-Market.
This means that a new essential component of Performance MUST be added to enterprises' performance basket: the e-Performance one.
And awareness must be generated accordingly within enterprises' people.

To begin with, all enterprises must be knowledgeable about the 10 core principles of the e-Economy:

  • 1) "matter" is becoming less and less important.
    The elaboration of information is much more powerful and "value-effective" than the movement of physical goods.
    The overall value of an enterprise is less and less based on tangible factors, and more and more on intangible factors such as people know-how, ideas, and information management.
  • 2) Space barriers have collapsed.
    Distances do no longer exist.
    The world is your client and your competitor.
    Area (geographical) dominance is no longer a parameter of competitiveness.
    Opportunities and risks have never been so huge.
  • 3) The "Time" factor is crucial.
    Instantaneous interaction is critical and requires newer and faster approaches.
    It's essential to supply immediate answers.
    Learning how to adapt to the changing e-scenario in real time is vital.
  • 4) The secret is People. As always. But more then ever.
    creativity - the ultimate resource


    Brainpower is the most important factor of the E-Economy.



    Value associated to ideas and thinking is enormous.



    More than ever, the correct management of human resources is crucial, and must change and adapt to the New Economy scenario.

  • 5) Growth is accelerated and must be managed.
    The Net may diffuse very rapidly a new product or service, with phenomena of "viral effects".
    In certain circumstances, growth can be explosive. Being "first" is much more critical than in the past.
  • 6) Value is associated with "ubiquity".
    Value increases exponentially with market penetration.
    Value is no longer associated with "scarcity".
  • 7) Information Efficiency is vital.
    Available information volume increases dramatically.
    Raw data must be converted into information usable practically by monsters-users.
    All enterprises must somehow become Info-Providers and Info-Mediary ("Meta-Mediary") parties.
  • 8) The e-market is more competitive, transparent and efficient.
    There are increasing opportunities for buyers and sellers.
    Price comparisons are easier and faster (advantage & drawback). Competitors are very close, with almost no barrier: "one mouse-click away"
  • 9) Transactions are one-to-one.
    Monster-clients must be captured one by one, as each transaction is on a one-to-one basis.
    In spite of the cyber space in between, care and attention must be given to each individual person.
    Products/services may probably have to be adapted, adjusted, tailored.
  • 10) The Marketing and Sales processes tend to unify.
    The gap between wish to purchase and purchase has been, in many instances, eliminated.
    The shelves of the WWW market are unique, because have no limits.
    The "Impulse Economy" is here.

In such e-scenario, opportunities and threats are very high. The e-Economy road is at the same time exciting and tricky.

More than ever opportunities must be searched systematically, dynamically, actively.

More than ever the enterprise needs to become "learning" and anticipate threats.

While potential threats must be dealt with rapidly and effectively, opportunities need to be developed even more rapidly. The road from idea to e-business is extremely tricky, yet it must be covered fast.

The E-Economy has transformed irreversibly the traditional economy rules, and all traditional commercial principles - it is easier to invent an e-business from scratch, than to give an e shape to an existing, real-world one.

The "time-to-market" parameter has never been so critical. Concurrent Engineering (more ») and Project Management (more ») are more vital and essential than ever before.

A major issue is the ability to build an adequate technical/organisational structure based on people capable of dealing with all aspect of e-business.

Another major issue is the ability to change fast: what is right today, will be obsolete in 6 months or 1 year latest. Hence the necessity to build flexible strategies, flexible/scalable structures and solutions, and to get flexible, "learning" people.


SMEs need to understand the primary importance of structuring adequately their overall e-strategy. Unless the e-project is dealt with as such, chances of failure are extremely high.   (more »)


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