So when I say “20/20 Vision” in your business, I shall mean the comparison of your business to that of a perfect balance.
I am sure almost all of you have come across the magic ratio of 80/20. Some good examples are “80% of the world’s wealth is owned by 20% of the world’s people”, “80% of problems are generated by 20% of hardware/software products”, “Spend 80% of your time listening to your customers, and 20% of time designing the solution to solve the problems”. The 80/20 rule can apply to many situations in life.
Now think about your business, and unless you are the pioneer of a new industry, the 80/20 rule can be used to measure your place in the competitive market. Whether your business is Healthcare/Pharmaceutical, Banking and Finance, Manufacturing, Retail, etc. within each industry there is commonality across the companies. Healthcare industry puts a lot of effort in promoting their products and services to hospitals, doctors, and patients; Banking industry demand reliable and secured systems to process and deliver data to its customers; Manufacturing industry need its production lines moving along smoothly, from ordering raw materials, assembly, quality assurance, packaging, and finally delivery to the customer; And Retail industry’s POS (Point of Sale) system to record transactions and accept payment from its customers, and the data analysis to help understand consumer behavior and product demand.
All businesses need to be unique in some way. Uniqueness is a key to differentiate your company from other competitors, otherwise two products which have exactly the same specification, support, and quality will have to compete purely on cost. Uniqueness can be many different forms, a product that no one else has, a brand name p_w_picpath (social status), quality, reliability, pre-sales and post-sales services. Combination of these unique features results in the product’s competitiveness amongst other products, and amongst companies in the same industry.
To apply the 80/20 Rule, I say “A company should be 20% unique from its competitors, but share 80% commonality within the same industry.”