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Mastering Innovation with Fire-Aim-Ready (FAR) Methodology: How to Stay Ahead of Your Competitors
Global supply chain blogs
About the Author
Vivek Sood: Sydney based managing director of Global Supply Chain Group, a strategy consultancy specializing in supply chains. More information on Vivek is available on www.linkedin.com/in/vivek and more information on Global Supply Chain Group is available www.globalscgroup.com
Vivek is the Managing Director of Global Supply Chain Group, a boutique strategy consulting firm specialising in Supply Chain Strategies, and headquartered in Sydney, Australia . He has over 24 years of experience in strategic transformations and operational excellence within global supply chains. Prior to co-founding Global Supply Chain Group in January 2000, Vivek was a management consultant with top-tier strategy consulting firm Booz Allen & Hamilton.
Vivek provides strategic operations and supply chain advice to boards and senior management of global corporations, private equity groups and other stakeholders in a range of industries including FMCG, food, shipping, logistics, manufacturing, chemicals, mining, agribusiness, construction materials, explosives, airlines and electricity utilities.
Vivek has served world-wide corporations in nearly 500 small and large projects on all continents with a variety of clients in many different industries. Most of projects have involved diagnostic, conceptualisation and transformation of supply chains – releasing significant amount of value for the business. His project work in supply chain management has added cumulative value in excess of $500M incorporating projects in major supply chain infrastructure investment decisions, profitable growth driven by global supply chain realignment, supply chain systems, negotiations and all other aspects of global supply chains.
Vivek has written a number of path breaking articles and commentaries that are published in several respected journals and magazines. Vivek has spoken at several supply chain conference, forums and workshops in various parts of the world. He has also conducted several strategic workshops on various aspects of supply chain management. He received his MBA with Distinction from the Australian Graduate School of Management in 1996 and prior to these studies spent 11 years in the Merchant Navy, rising from a Cadet to Master Mariner.
More information on Vivek is available on www.linkedin.com/in/vivek and more information on Global Supply Chain Group is available on www.globalscgroup.com
Introduction
As discussed in the previous blog, the TLAs(Three letter Acronyms) are some of the important characteristics in measuring a companies supply chain. In this blog we will talk about the TLA – Fire Aim Ready (FAR). This TLA deals with innovation by creating new (better) products and services, as well as new (better) ways of configuring and delivering existing products and services. Certain companies in our test pool of 1200 had exceptional implementation of FAR which resulted them in creating and launching products in nearly half the time it took their rivals while keeping utmost secrecy about the product features. Despite the network effect of SCM 3.0, such key strategic information wasn’t leaked, which shows how important is it to work with credible and trustworthy suppliers.
This mind- set of ‘not-invented-here’ survives from the days of materials handling (pre-supply chain or Supply Chain 0.0 era) in many quarters and gives supply chain management a bad name when it manifests itself. In this blog we will answer these questions about the relevance of innovation for logistics and procurement functions.
What is Fire Aim Ready (FAR)
Fire Aim Ready (FAR) is a strategic approach in innovation that has gained popularity among the business using Supply Chain Management (SCM) 3.0. FAR is a methodology that involves creating new, better products and services, as well as developing new, better ways of configuring and delivering existing products and services. The primary goal of FAR is to innovate quickly, efficiently, and with agility, so that companies can stay ahead of their competitors and respond quickly to changing market conditions. By leveraging cutting-edge technologies like artificial intelligence, blockchain, and IoT, companies can streamline their operations, optimize their supply chains, and gain valuable insights into their customers and their behaviour. Another benefit of the FAR approach is that it enables companies to take a customer-centric approach to innovation. By leveraging technologies like artificial intelligence and IoT, companies can gain valuable insights into their customers and their behaviour, and use this information to develop products and services that meet their needs and preferences. This customer-centric approach is critical in the context of SCM 3.0, where the focus is on creating a more personalized, on-demand supply chain that can quickly respond to customer needs and preferences.
Key Advantages of using FAR methodology
- Faster innovation: One of the most significant benefits of using FAR methodology is that it enables companies to innovate faster. With FAR, companies can quickly identify market opportunities, develop new product ideas, and rapidly prototype and test their ideas. This speed is critical in today’s fast-paced business environment, where the ability to innovate quickly and efficiently can be the difference between success and failure. By using FAR, companies can bring products to market faster and stay ahead of their competitors.
- Improved customer satisfaction: Another benefit of using FAR methodology is that it can lead to improved customer satisfaction. By taking a customer-centric approach to innovation, companies can use technologies like artificial intelligence and the Internet of Things (IoT) to gain valuable insights into their customers and their behaviour. This information can then be used to develop products and services that meet their needs and preferences. By providing products and services that are tailored to their customers’ needs, companies can improve customer satisfaction and loyalty.
- Increased agility: A third benefit of using FAR methodology is that it enables companies to be more agile and responsive to changing market conditions. By constantly innovating and adapting to new trends and customer needs, companies can stay relevant and competitive in a fast-paced business environment. This agility is critical in today’s world, where the pace of technological change and disruption is accelerating. By using FAR, companies can quickly pivot to new opportunities and respond to changing market conditions.
Some disadvantages of FAR method
- Risk of failure: One of the main disadvantages of using FAR methodology is the risk of failure. By prioritizing speed and agility, companies may be tempted to launch products and services without fully testing and validating them. This can lead to costly mistakes and product failures, which can damage a company’s reputation and bottom line. While FAR encourages experimentation and innovation, it is important to balance this with careful planning, testing, and risk management.
- Lack of focus: Another potential disadvantage of using FAR methodology is the lack of focus it can create. With its emphasis on rapid prototyping and experimentation, FAR may lead companies to pursue too many ideas at once, spreading resources and attention thin. This can result in a lack of focus and direction, which can hinder a company’s ability to achieve its goals and objectives. To avoid this, companies should be selective about which ideas they pursue and ensure that they align with their overall strategy and objectives.
- High costs: Finally, the implementation of FAR methodology can be expensive. It requires a significant investment in resources, including people, technology, and infrastructure, to support rapid prototyping, testing, and experimentation. Companies may also need to hire additional staff with specialized skills and expertise, which can further add to costs. For small and medium-sized enterprises with limited budgets, the high costs of implementing FAR methodology may be prohibitive, making it challenging to compete with larger, more established companies.
Apple using FAR methodology to get ahead of competition
Apple has a long history of innovation in product design and user experience. Their success can be attributed in part to their use of the FAR methodology. For example, in 2015, Apple launched the Apple Watch, which was developed using the FAR approach. Apple used rapid prototyping and testing to iterate quickly on design concepts and features, resulting in a product that was both functional and aesthetically pleasing to the customers.
More recently, in 2020, Apple launched its M1 chip, which powers its latest line of Mac computers. The M1 chip is a significant departure from Apple’s previous Intel-based chips and was developed using the FAR methodology. Apple used rapid prototyping and testing to optimize the chip’s performance, resulting in a product that delivers faster speeds, longer battery life, and better graphics performance than its predecessors. Now, the M1 chips are powering some of the higher end iPad, Macs and Mac mini.Apple’s success with the FAR methodology is a testament to the power of innovation and the importance of being agile and responsive to changing market conditions.
Conclusion
Fire Aim Ready (FAR) is an innovation methodology that emphasizes quick and efficient innovation through rapid prototyping and testing. It is commonly used in Supply Chain Management (SCM) 3.0 to streamline operations, optimize supply chains, and gain insights into customer behaviour. The benefits of using FAR include faster innovation, improved customer satisfaction, and increased agility. However, there are also potential disadvantages, including the risk of failure, lack of focus, and high costs Overall, the FAR methodology highlights the importance of being agile and responsive to changing market conditions in today’s fast-paced business environment.
Introducing.....
The global supply chain of products is an immense and complex system. It involves the movement of goods from the point of origin to the point of consumption, with intermediate steps that involve resources, materials and services to transport them. A supply chain encompasses activities such as purchasing, production, distribution and marketing in order to satisfy customer demands. Companies rely on a well-managed supply chain to meet their business goals by providing quality products and services at competitive prices.
Efficiently managing a global supply chain requires considerable effort, particularly when dealing with multiple suppliers located around the world. Complex logistics tracking systems are needed to monitor product movements from one place to another. Technologies such as artificial intelligence (AI) can help companies keep track of shipments across different locations for greater visibility into their processes.
what did Our Reader say?
GARRY BADDOCK
Chief Operating Officer Graphite Energy
I have experience with many of the well-known top-tier strategy firms but chose Global Supply Chain to support me on my supply chain projects. They always meet and exceed my expectations due to the quality of the work, the ability to work collaboratively with internal teams, and the flexibility to adjust the project approach when required.
PHILLIPPE ETTIENNE
CEO - Large Global transnational corporation From: FOREWORD - OUTSOURCING 3.0
When I engaged Vivek’s services for supply chain transformation in one of the companies I was heading, we expected the careful and methodical approach that he was famous for... I was pleased to note that the original target set for 3 years was surpassed by almost 70% in just 18 months.
TONY FEDOROWICZ
Vice-President Supply Chain Asia Pacific
I have used their services for several business transformations and workshops in many companies. Each time an outstanding workshop and project result was delivered ensuring the success of the business transformation project. Savings surpassed $25 Million per annum in one case. Very powerful ideas, were implemented very diligently.
Jean-Briac Le Dean
Co-Founder & Agen
Vivek is a very collaborative and open leader who leads teams by example. Whether internal teams, or clients teams, all are impressed by his intensity, energy level and drive to make things a little better.
Lorna Calder Johnson
Omni-Channel Product Marketing
P & L Executive
Vivek's transformation expertise is apparent from his results and dedication to operations and supply chains. His strategic expertise, knowledge and network make him a standout even among an excellent team.
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