Asset utilization is a large part of overall business strategy. It is often used to optimize productivity, cost containment, general operations, profitability and the overall performance of the business.
Market strategy, how you’re going to compete and drive revenue and profitability, must also address asset utilization. The difference here is that asset utilization is used to leverage, or harness, assets for opening up opportunities and advantages.
At The AxisPointe, it is our experience that, when companies employ asset utilization in both dealing with market strategy and in their go-to-market models, they benefit from:
- additional cost containment
- additional efficiencies
- becoming more competitive
- a better ability to execute on tactics and initiatives
- better alignment of internal business functions
- a better ability to create and leverage opportunities
Asset utilization in market strategy sometimes considers the same assets that are considered in asset utilization in general business strategy; however, functional market strategy also demands the ability to see additional assets that can be leveraged in go-to-market models that may not be seen in overall business strategy.
When market strategy is dealt with in this manner, the use of resources becomes much more productive towards achieving business objectives. The perspective is no longer just about how to allocate dollars (as much as can be had) in tactics and initiatives to try to affect growth. The company can now benefit from:
- internal functions, that are notoriously cost-driven and difficult, becoming revenue-driven and more internally aligned.
- additional asset utilization efficiencies that can be applied to the company’s financial metrics, such as sales revenue generated from utilization.
- a better overall utilization of assets.
- a model for being able to fully harness additional assets that are acquired through M&A.
Although this can seem like an unnecessary step in strategy to some, companies that are serious about being competitive and that are keenly focused fold this into their existing strategy round-tables. These companies are then able to fluidly apply market strategy to be a workhorse in driving measurable success in business objectives and being more competitive in their markets.