Balancing supply and demand of anything is everything.
We have been using that phrase for some time now and it resonates more with me everything I see it and think about it.
It doesn’t even just apply in business, but in life in general. Monthly finances. Deciding on vacations. Decisions on career path. Many even apply this to personal relationships – “they have had us over for dinner the last two times, we are overdue to have them.”
In business it is even more obvious. It is true across all business functions and across all industries.
IT has to balance budget and resources (supply) against the top priority business needs (demand). HR has to balance hiring of the right people at the right time (supply) against the goals of the business to support customers (demand). Finance has to balance the needs of the growth of the business (demand) against the revenue and investment income (supply) the company generates. Product and R&D organizations have to balance customer and market requirements (demand) against the resources available to them (supply). Most of the other areas of the business should be even more apparent.
It is also true of industries. Whether companies are in high tech, consumer products, retail, life sciences, automotive, industrial, oil and gas, or agriculture – it remains the same – balancing supply and demand is everything. It is also true when you think about balancing people and their skills. It is true of consulting and construction. It is true for every industry.
Another strong belief we have at Kinaxis is … business is complex, your IT systems must not be.
With these in mind, I want to ask all business leaders one straightforward question …
What if you revisited all your software, IT and consulting spending and rethought it in the context of … how would my business look if I had a single demand/supply balancing engine and process that went cross all functions and allowed me plan, monitor and respond to deviations from plan in near-real time?
Think about it.
’til next time … Kirk