Three Dimensional Business Definition
Three-Dimensional Business Definition (3DBD) is a strategic approach that helps organizations define and understand their businesses from three distinct but interrelated perspectives: customer groups, customer functions, and alternative technologies. The concept was introduced by Theodore Levitt in his 1960 article "Marketing Myopia," which argued that businesses should focus on customer needs rather than their own products or services.
- Customer Groups: This dimension refers to the various segments of customers that a business serves or targets. Identifying and understanding different customer groups allows organizations to tailor their offerings, marketing strategies, and communication to meet the unique needs and preferences of each segment.
- Customer Functions: This dimension involves understanding the specific needs or problems customers want to solve through a product or service. By focusing on the functions customers seek, businesses can develop solutions that address these needs and create value for their customers.
- Alternative Technologies: This dimension refers to the various technologies or methods employed to satisfy customer needs or functions. By being aware of alternative technologies, organizations can adapt to changes in the market, innovate, and remain competitive.
The purpose of the Three-Dimensional Business Definition is to encourage organizations to take a broader view of their business and avoid the pitfalls of focusing too narrowly on their products or services. This approach promotes a customer-centric mindset, emphasizing the importance of understanding customer needs and preferences and continually adapting to changes in the market.
- Benefits of adopting a Three-Dimensional Business Definition:
- Enhanced customer focus: By considering the needs and preferences of different customer groups, organizations can tailor their offerings and marketing efforts to serve their customers better.
- Encourages innovation: By exploring alternative technologies, businesses can stay ahead of the competition and continuously innovate their products and services.
- Improved adaptability: Understanding customer functions and alternative technologies helps organizations adapt to changes in the market and respond to new opportunities or challenges.
- Long-term growth: Adopting a broader view of the business can help organizations identify and capitalize on new market opportunities, contributing to long-term growth and success.
Examples to illustrate key concepts:
- Kodak, a company primarily focused on photographic film, failed to adapt to the shift toward digital technology. If they had employed a 3DBD approach, they might have recognized the changing customer needs and alternative technologies earlier, allowing them to innovate and remain competitive in the digital era.
- Apple, known for its continuous innovation, uses a 3DBD approach to stay ahead of the competition. By focusing on customer needs and functions (e.g., communication, entertainment, productivity), Apple has introduced new products and services, such as the iPhone, iPad, and Apple Watch, that cater to various customer segments and leverage alternative technologies.
In summary, the Three-Dimensional Business Definition encourages organizations to adopt a customer-centric approach by focusing on customer groups, functions, and alternative technologies. This strategic mindset can help businesses stay adaptable, innovative, and competitive in a constantly evolving market.