Michael Porter\u2019s Monitor Group<\/a>. Monitor, a consulting firm that ruled the business world in the 1980s founded by Harvard Business School\u2019s Michael Porter, built their business on the concept that business is a matter of defeating the competition, not making a better product or experience for Customers. We studied Michael Porter in the b-school. He believed that your best strategy was to protect yourself from your business rivals. There were five forces involved in the image to the right:<\/p>\nSource: Forbes.com. \u201cWhat Killed Michael Porter\u2019s Monitor Group? The One Force That Really Matters.\u201d 20 November 2014. Web. 29 January 2015.<\/p>\n
The main problem was his basic strategy. It was about avoiding competition and seeking profits that were protected by barriers to entry into your industry. He was all about figuring out how to do these things without actually improving your product or service.<\/p>\n
Porter\u2019s strategy ruled for decades. Many of you reading this know it well. However, some things changed, and they made a big difference. A world economy took over, and the Internet changed the way we get our goods and services. As a result, barriers to entry were crushed, competitive pricing bottomed out, and Customer\u2019s decided they would pay more for a better experience. The best product, yes, but the best experience, too. Monitor couldn\u2019t adapt the way they consulted their clients. Not surprisingly, their Customers decided that the Monitor experience wasn\u2019t worth it. And they filed for bankruptcy in 2012.<\/p>\n
Whether you like it or not, the Experience Economy is here. Customers want you to add value to their experience, from outdoorsy activities in the Sonoran desert to tossing a freshly grilled shrimp in your mouth! Everyone down to law enforcement is embracing the concept. If you are not, you might be in danger of being left behind the Experience Economy.<\/p>\n
The question is are you designing processes or experiences? Will you be left behind like the Monitor group by the Experience economy?<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"Seventeen years after the prophetic Pine & Gilmore book and HBR article \u201cWelcome to the Experience Economy\u201d published, we see their concepts gaining momentum. In the past, companies embracing the concept were the exception; now embracing the Experience Economy is the rule. In other words, the idea of the Experience Economy is not just for […]<\/p>\n","protected":false},"author":7510,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":[],"categories":[128,84],"tags":[],"_links":{"self":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/posts\/187144"}],"collection":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/users\/7510"}],"replies":[{"embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/comments?post=187144"}],"version-history":[{"count":0,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/posts\/187144\/revisions"}],"wp:attachment":[{"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/media?parent=187144"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/categories?post=187144"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/customerthink.com\/wp-json\/wp\/v2\/tags?post=187144"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}