GartnerG2, the research service component of global advisory firm Gartner, Inc. , has released a report entitled, "The Edge Economy: Give Up Control, Gain Revenue," stressing the growing importance of close customer and supplier relationships.
GartnerG2 defines an "Edge Economy" company as a firm that attempts to increase revenue by devoting at least 80 percent of its resources on customer and supplier touch points. The report further predicts that these Edge Economy enterprises will dominate 95 percent of all markets by the year 2010 and by 2005, almost 50 percent of all failed businesses will be due to the inability to transition into an Edge Economy company.
"Our research has found that companies that move to the Edge Economy will benefit greatly through increased revenues and profit margins as well as improved employee productivity," said Van Baker, GartnerG2 research vice president and author of the report. "Companies that ignore Edge Economy business practices will be at a significant competitive disadvantage in terms of product quality, value and services."
To prepare an existing organization to make the move into the Edge Economy, the report recommends:
- Remapping all business processes to link directly to customers, partners and suppliers.
- Abandoning or outsourcing all business processes that do not create value with customers, partners or suppliers.
- Prioritizing resource and planning decisions based on their impacts on relationships with customers, partners and suppliers.
- Leveraging technology to accommodate the work and lifestyle requirements of the Edge Economy.
Edge Economy companies should utilize multi-channel technology tools that increase speed, accuracy and efficiency to achieve greater returns on investment, faster growth and better profit margins. The combination of technology and flexibility can help to attract and retain satisfied customers, as well as productive employees.
GartnerG2's research service was designed to assist business strategists. Founded in 1979, Gartner is headquartered in Stamford, Conn. and consists of 4,600 associates, including 1,400 research analysts and consultants, in more than 80 locations worldwide.