May 6, 2010
OPEN Forum Message
Test Your Business Skills
Take one or more of OPEN Forum's Crash Courses on topics like Leadership, Search Engine Marketing, Facebook and more.
Learn more
I’ve heard from several business owners who have created new products or services or expanded into new markets to fuel growth during the recession. And what’s always interested me most is how they’ve identified those opportunities. A great example is provided by Anthony De Filippis, who recently told me: innovation comes from listening to your customers.
Anthony is President of DeFiliSolutions (DFS), a company he started in August of 2009 as a joint venture with CargoTrans, the company his father founded in 1989. Whereas CargoTrans facilitates international shipping and logistics for exporters/importers; DFS provides consulting, administration, virtual office capabilities, vendor management and other services that help make it easier for importers and exporters to operate locally.
DFS was borne from a commitment to customer service, an understanding of business needs and an ability to address these needs with quality in mind. “Over the years, we found ourselves being asked by clients to perform services that were outside the scope of our shipping business,” Anthony told me. “Instead of passing this business on to other companies, we decided to introduce DFS and capitalize on this market.”
DFS counts international fashion companies exporting to the U.S. as their core clientele, based mainly on great "word-of-mouth" referrals from CargoTrans. And the smaller, design companies have proven to be a source of business during the recession. “With the financial crisis, many of our clients needed to scale back operations here in the U.S., and DFS has been able to alleviate some of the stress and help them still maintain their presence. Our goal is to assist foreign companies in managing or creating a wholly-owned U.S. subsidiary while maintaining a lean cost structure. By taking care of the back-office responsibilities, DFS allows them to focus on product and sales.”
I asked Anthony what he thought were the advantages of being associated with a more established company. “Our partnership with CargoTrans means we can offer a one-stop shop for clients, which is a real differentiator. Others who claim to offer a similar range of services are outsourcing. With companies being in the same office, we know more about what’s going on with clients’ shipments.”
“On the other hand, it’s difficult in trying to get clients to understand that DFS is independent. We don’t want them to feel like they’re ceding too much control. There’s fear of becoming too dependent on a provider, as it’s not easy to switch. That’s another one of our challenges: convincing potential customers to switch.”
Anthony is continuing to grow within the fashion and apparel industry, including marketing at international trade shows. And, as DFS continues to learn from their customers, he plans to identify opportunities to expand into other industries.
I thank Anthony for sharing his story and invite other Cardmembers to share their stories with OPEN Forum by contacting me at jason @ openforum.com. You can also follow me on Twitter @jasonrudman or OPEN Forum @openforum.
For more information on DFS and/or CargoTrans (Cardmember since 1990) visit CargoTrans and DeFiliSolutions.
Check your balance, review recent transactions and pay your bill on the go.
PAUL ROSENFELD 2 years 0 months and 24 days ago
Jason. This is a BIG topic and I think worthy of lots of Open Forum discussion. Most of the article is about this firm, and while it's an interesting story, I think the article misses the true promise of the headline here without more examples.It would be great to get the contributors to Open Forum writing more about this. Since product development and innovation is a fav topic and passion of mine I'll share a few ideas for Amex readers:- Innovation often comes from SURPRISES. History is filled with examples: the Microwave and Post-It note both came from surprises their inventors felt when their experiments went awry. So become acutely aware when you're surprised by something. That non-obvious insight can be your best source of competitive advantage- Innovations that don't solve real problems will take you down a rat hole. The way to avoid this trap is to see if your customer is doing some work around today to solve the problem. When a customer spends time or money or both to solve a problem, then chances are they will spend money on a better solution.- Throw out the surveys and get in front of customers. 5 and 10 question surveys won't ever get you to innovation for a whole host of reasons, starting with this question: If you asked people in the 80s if they wanted a Walkman, what do you think the response would be? Or if you asked soccer moms in 2005 if they wanted to share the most intimate details of their family's lives online, what would they say? Consumers are notorious for not being able to articulate the problems they face, the workarounds they use, or the solutions they want. That's the job of YOU to figure out :-) The best tool for doing this is just watching your customers in action. Not listening to them speak or write, but finding ways to deeply understand their actual, real world behaviors. In those behaviors is most certainly the gold you need to innovate.Ring me for more... cheers, Paul