What makes our stakeholders to have a decision for proprietary software buy-in? Literally, one stakeholder was eager to implement a “brand-new-cool” solution for automating a few of the business procedures that forced him to hire 3 more employees. That said, we have: the stakeholder X, the software product Y, which should put into action function Z. And lastly, the software product Y doesn’t include its sources in the delivery package. As you might have already guessed, this software had not been working properly after set up and we’re able to not integrate the info model as the software wasn’t suitable for some specific business cases. Let us take a look to the main of the problem.
The stakeholder knew that the merchandise cannot perform some functions, so the required customization was ordered. Next, after the contract was signed, we were testing our data integration procedures with every new version of the merchandise. And, we were receiving the new variations every 4-5 weeks, regularly, with some bugfixes. Nice. After about 2 years (!) of such integration process we’ve got to know, that by the time of agreement putting your signature on, there have been no customers who succeeded to integrate this product.
And, some customization reasoning was not working by this time around still. At this time the project is 3 years old almost. Lately we received the new version that was claimed to work accordingly to the ordered specification. As I view it at this time, the stakeholder’s perspective in this situation would be that the integration team is the bottleneck, even as we fail to combine the product.
What makes the stakeholder X believes into some product Y, rather than developing the solution in-house? Why doesn’t the stakeholders try the product demo before signing a contract? What position should take the integration team in this situation? From the business process point of view, buying the software product from another party might be even positive: bringing the know-how in. 1 years to complete the task?
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Now the question will come, does the customer obtain from you when you give discount rates? In India, this relevant question is becoming more of typical. The customers flock on e-commerce sites citing discounts they won’t get somewhere else. This will give a company, exponential customer acquisition rate, huge online development but the bottomline statistics shall be very rewarding.
Burning through cash is not the best solution of an e-commerce, turning the business into a profit-making one, is. This is the real sustainability question, selling products of other brands gives a firm the margins they need never. That’s the reason grocery e-tailers like Growers are shifting towards the entire product portfolio onto their Private label. Contract manufacturing with small companies and getting their foods under a single umbrella are the norm nowadays for grocery-store e-tailers. This is one way they increase their long-tail-product collection and make products specifically on their web website. This method can fetch an e-commerce firm 5-10 % more margin than selling other brand’s products.
That is how e-grocers are increasing their Private label (PLB) profile, offsetting losses with each order that they deliver. But does that mean, they are heading towards success? No, by an extended shot, the new services that they offer, attaining a much better service quality level to deliver the same, as guaranteed, makes the company bear tremendous source chain costs.