This Focused Performance Weblog is a "business management blog" containing links and commentary related primarily to organizational effectiveness with a "Theory of Constraints" perspective. TOC is noted for its applications in Project Management and Multi-Project Management (Critical Chain) and Operations Management (Drum-Buffer-Rope), as well as in Marketing, Strategic Planning and Change Management (TOC Thinking Processes). If you are on an archive page, current postings are found here.
"Cardinal uses its unique access to both drug manufacturers and hospital chains to figure out where the problems are in the pharmaceutical business. Cardinal then creates new products to solve those problems, save customers money, and produce a tidy profit for itself. 'They grow by figuring out how to improve their customers' economics,' Slywotzky says."
This is exactly what was prescribed in Goldratt's It's Not Luck, his sequel to The Goal. Customers do not buy the services or products you sell. They buy solutions to their problems. While you have to sell service and products, you need to market solutions. When you can tweak your offerings around the edges, in order to maximize the solution power for a particular customer or market, the incremental value that is tied to the bottom line of the target can become more than incrementally valuable.
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