Operational Excellence – The Key to Success in Mass-marketed Web Services
November 24, 2011
With SMBs increasingly under pressure to explore Internet marketing options to promote their products and services, opportunities are no doubt aplenty for mass-marketers of web services. Unfortunately, opportunities alone don’t suffice to drive revenue streams unless backed by ability, capacity and experience to execute.
Success in mass-marketed web services relies heavily on operational excellence – simply put, the ability to deliver what your customers need, when they need it. More specifically, it involves a holistic outcome of a carefully crafted combination of experienced leadership, expert human resources, leading-edge technology and state-of-the-art infrastructure.
For instance, a hosting provider with 50,000 monthly subscriptions has plenty of monetizing opportunity even if a fraction of them – say two percent – need or demand additional products and services. If it lacks the operational excellence to execute those 1,000 orders, the hosting company may back away from the opportunity. The cost and monthly overhead involved in setting up a plant and employing manpower alone could deter a hosting company. Add to that the challenge of acquiring the excellence itself, something that is cultivated over long experience in project management for mass order fulfillment, and the revenue opportunity from value added services becomes unattainable.
The challenges in mass-production are predominantly centered on quality, scalability, flexibility and cost. Generally speaking, aggregators do not have the ability to scale in the event that sales rise phenomenally. Or if scale goes up, quality comes down. Clearly, it is also difficult to maintain flexibility in keeping with fluctuating sales. A part of capacity is unutilized when sales are low resulting in wasted investment; on the other hand, inadequate capacity when sales are high result in longer cycle times, increased costs, reduced quality, unhappy customers and subsequently, decreased renewals.
The key to success lies in keeping quality high and cost low, which can only be achieved through operational excellence. Who can vouch for this better than vSplash, a proven white-label provider of fulfillment solutions for Internet marketing companies worldwide? vSplash derives its excellence from more than a decade of experience in mass-order fulfillment, in conjunction with economies of scale, customized order management tools, deployment and continuous training of global talent. With multiple partners, sales fluctuations are no challenge, as human resources are always engaged for one partner or another. Scales are not daunting as there is always an additional capacity from downtime with one or another partner.
Operational excellence is what enables us to deliver quality at a significantly lower cost than in-house operations. It also allows our customers to capitalize on the rich revenue opportunities that the marketplace currently presents.