Meditech - Case 1 Essay
Delivering Customer Centricity
Analysis: EMC2: Delivering Customer Centricity
This paper is an analysis of the article EMC2: Delivering Customer Centricity; by Thomas Steenburgh and Jill Avery (2011), Harvard Business School.
EMC Corporation has had a long and storied relationship with its approach to customer service. For most of the last thirty years, the customer has been front and center in the company’s strategy to achieve the leadership position in the data storage market, but it did not begin that way. In 1987, prior to the full customer centric commitment, as EMC was expanding into disk drives and memory cards, sales personnel knowingly shipped defective products in order to meet sales quotas; hardly …show more content…
These acquisitions were inspired by the continued focus on the customer, with an eye on offering a comprehensive data infrastructure solution. With customer spending on software increasing by 16% (Exhibit 5), EMC knew that supplying software solutions would help their customers navigate their information life cycle and provide another way to increase dependency on EMC as strategic partner. EMC would now provide hardware, software, consulting, storage, data management, data sharing, and data security, all under one umbrella; a real value to customers. Even better for EMC is that gross margins for software were at 85%.
EMC was now selling over 4000 products and services. EMC representatives were gradually transitioning from experts to journeymen, who only knew a little about a lot of products. With the customer base broadening rapidly, because of new product lines acquired, on site visits become difficult to ensure. The concept of wrapping the customer in service from purchase to installation to quality assurance to crisis response was no longer possible relying entirely on the old customer service processes. Further, the company chose to use value added resellers to sell some of their products, which put a third party between the customer and EMC. New tools were needed.
With the proliferation of internet solutions, EMC began substituting online touch for personal touch to guide