By
[email protected] on April 15, 2010 8:31 AM
By John Burke
Group Vice President
Oracle Applications Business Unit
I recently completed a business tour in Mexico,
and was surprised by both the economic vibrancy of the country
and the thought leadership expressed by many of the customers I met.
An example of the economic vibrancy of the country: across the street from my hotel was the local Bentley dealership, Coach Store, Yves Saint Laurent
and of course a Starbucks. I only made it to Starbucks. Both the Coach Store
and YSL had a line of folks waiting to get in...
As for thought leadership, there were several illustrations only on the first day. I had the opportunity to meet with a branch of the Mexican Federal Government. Their questions were not about clerical task automation, far from it! We discussed citizen on-line access to fees
and services - for example looking up the duty on an international goods shipment, or tracking that my taxes have been received, or the status of my request for a certain service. Eligibility, policies
and status. Having an integrated rules or policy automation system that would allow businesses
and citizens to access accurate information
and ensure the proper collection of fees
and payment for 3rd party provided services.
Then in the afternoon, I met with the owner of a roofing company (note: most roofs in Mexico are flat
and made of cement). This CEO started discussing how he wanted to transform his business from a cement products company to a service company
and market 5-10-15 year service contracts which would guarantee the structural integrity of the roof
and of course that the roof would remain waterproof. Although his products were guaranteed, they required an annual inspection
and most home owners never schedule that inspection until it is too late
and water damage has occurred. These emergency calls reduce his margin
and reduce customer satisfaction. This lead to a discussion of business models in general
and why long term differentiation can only come from service, not just for the music or news industries, but also for roofing companies!
I completely agreed with the transformational concepts described in both meetings
and quickly understood why there is a Bentley dealership near my hotel.