Disruption Notice

by Louis on June 1, 2012

This is not what I planned to write next. I have a long list of great ideas that are often pre-empted by something that shows up in an e-mail, flashes across my mind in a conversation or comes from an insight while biking or showering. Today’s inspiration is an email blast from UPS. How I came to be getting their e-mail blasts is a complete mystery but…

What I see in this e-mail is what Aging in Place business – heck, all of senior housing and care services – needs to learn. The channels are shifting. Business as it was will never be again. Sure, tech is in the background of the changes but up front are cash flow, and most important: customer-centric orientation.Take a look at this UPS letter and accompanying white paper:

“Once mandated only by the largest retail companies, Routing Guides that define specific requirements for how vendors and suppliers serve their retail customers have become ubiquitous across the retail landscape. Increasingly, prepaid shipments, which are controlled by the supplier, are declining while retailer-routed shipments, those controlled by the retailer, are becoming more prevalent. Logistics analyst “eye for transport” reported in 2010 that 73% of retailers had either taken control of their inbound shipments or planned to take control.

In this white paper, you’ll learn how Routing Guides, once viewed as a nemesis to business operations, have become a supplier’s new roadmap for driving success, resulting in increased compliance, higher marks on the vendor scorecard, and enhanced relationships between suppliers and retailers across the entire supply chain.”

What draws my attention?

1. The retailers are ordering based on their customers.

2. The suppliers are shipping based on their customers.

3. The shippers are customizing to keep both ends of the chain happy.

4. In one sentence, the word nemesis is used to describe the way things are as well as the way current reality was viewed just a short time ago. Some who feared the future are thriving and loving it. Those who refused to go along are either history or playing catch up.

What is the relevance for senior housing and care? Customer centric business modeling is the future. We must study, learn, respond and react to our customer’s needs. Solutions are not our ‘eureka’ about how to solve an isolated problem. Solutions are customized service offerings that respond to the customer’s  constantly changing needs. Technology are not solutions- technology is the backbone that helps us serve our customers. The routing system that responds to customer orders is the key to higher marks and satisfaction. For Aging in Place clients that is the dynamic system of coordinated home and community based services. That is Aging in Place 2.0.

What does the business world call this? Disruption and innovation. Who survives disruption? Those most nimble and willing to innovate. When do we need to innovate? Yesterday would be great. Today is okay. Tomorrow may be too late.

{ 1 comment… read it below or add one }

Aaron D. Murphy, Architect / CAPS June 5, 2012 at 9:50 pm

Interesting information Mr. Tenenbaum, and funny isn’t it, where inspiration may come from in a flash. Thanks for sharing your insights, and thanks again for your time on the phone for our 30 minute interview. I am editing intro/closing with music, and then I’ll get you a copy as well for your own use.

Your expertise is honorable, and appreciated! Thank you.
Aaron D. Murphy, Architect / CAPS


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