Harnessing simple technology to grow a business

Based on a true story, Heather Robertson highlights the opportunities to expand a business but also create greater cost savings by applying unique technology solutions and AI solutions.

Jance owns five bakeries specialising in European pastries and crusts. 

“My business has seen some steady growth recently, but really my marketing guy has it pretty easy,” Jance had told his friend Matthew over a beer one evening. “He plans a good campaign and follows up with customer surveys to get additional feedback. From this he’s been able to give me ideas that have increased loyalty and return visits.”

“How’s the truck going?” asked Matthew.

“It’s the truck that’s been my biggest business boost, in ways I couldn’t have imagined,” replied Jance. “When I took the loan for it, the business case was based on the number of units we’d sell, plus coffees, and I calculated it would break even in three years. But we broke even in a few months.”

The Bank had been sceptical of Jance’s business case to have a truck take speciality bakery items and coffee to the commercial and industrial parks because of the limited range it could carry.  But the limited ranged, creating scarcity, had been the catalyst to an unexpected level of success because it provided ‘tempters’ that brought new customers into the stores eager to see what else was available.

Post-COVID timing also was a great boost because as companies opened up again they ordered catering for staff celebrations and client functions. 

But when Matthew asked Jance about putting on another truck, he was surprised that Jance felt it unlikely as he didn’t think doubling the trucks would necessarily double the income. 

“I have to consider not just sales, but my production capability,” Jance explained. “My products are speciality and handmade, and I have no intention to change this. But it means I have to maximise my production and revenue, not necessarily increase it.”

Despite his success Jance was considerate of his friend’s situation. “I feel a bit guilty talking about my increase when I know you are facing some very real threats in the technology sector.  I’m dealing with real people and real products – you’re now in competition with artificial people.  I don’t suppose you can gauge the true impact of AI on your business?”

To his surprise Matthew replied that he didn’t see it that way at all. “Like any market force, we’re only threatened by what we can’t adapt to, or adopt. AI brings me tools and solutions that help me build technology in ways I could have only dreamt about a few years ago – even only one year ago.” 

Jance laughed and said that he wished AI could bring solutions to his bakery.

Introducing technology and AI solutions

And that was the conversation that changed the world for Jance. It took him into new markets he’d wanted to tap, maximised production and opened new revenue streams.

Matthew will tell you, as he told Jance, that there are two key things to consider when bringing any type of technology including AI into your business:

1. What is the problem you want it to solve?
2. How are you going to step it into the business in an affordable and fully utilisable way?

Matthew showed Jance that unless you define the problem, the technology (and any AI solution you seek) will control you.  “Don’t try and solve everything at once, and start with a relatively simple problem.”

Also:

• Ring-fence the cost so you can easily measure return on investment.
• Get used to using the technology so you optimise it fully.
• And, most importantly create an MVP. (Minimum Viable Product)

“MVP is the thing that many technologists don’t think about,” said Matthew. “They get excited about the build, the possibilities, and all the bright shiny new features they can play with and plug in.”

Problem solved

The development of the product that became ‘JanceStandard’ solved the problem Jance had identified. Giving information to diet conscious people. Be it for weight loss, health awareness or special needs such as diabetes and coeliac. JanceStandard gave a full breakdown of each item’s ingredients and quantities.

It also enabled him to signal to customers when he was going to bake for special needs.  He wasn’t able to make these products every day, especially coeliac-friendly products due to the need for isolation – from preparation through to packaging – so it maximised his production capability.

The JanceStandard app Matthew built for him enabled a customer to understand each and every ingredient of every product. Taking a product like a kifli, for example, a customer could tap on ‘kifli’ and tap each ingredient; the flour (quantity, type of flour, organic or not, where it was grown, which grower, which miller). The same with eggs, salt – every ingredient in every item.

As all the jams, fillings, custards and toppings are made inhouse, these were also quantity and source listed – and for coeliacs a full kitchen preparation process from pre-cleaning of kitchen and appliances through to final sealed packaging.

Next, as a direct revenue increase with a twist, Jance could add a very clever marketing campaign for his suppliers. Despite the high revenue opportunities, he refused to allow advertising that flicked, flashed, interrupted and annoyed customers. He is able to create what he called ‘community marketing’; allowing suppliers to tell their story.

The story of the farmers growing the wheat – their lives, struggles, successes and families.

The millers – how one family had set up a mill more than 100 years ago; how it had passed through the generations and the balance between traditional and modern practices.  

The organic farmer struggling to keep his property protected from spray drift. 

Jance can use technology not only to increase sales but refine his overheads and to create new revenue streams. In doing so he create a programme connecting primary and industry directly to customers. 

When asked ‘do you know what you are eating?’, customers not only understood the ingredients but had a real connection with those who were part of that ‘food chain’, when bringing a humble kifli or exotic torte to their lips.

As both Jance and Matthew will tell you – don’t let the technology overtake you. Start with a simple MVP – based on – what is the problem you want to solve?
 

Real Stories about Real People in businesses that exist today. Names and the type of business have been altered for reasons of identity.

Heather Robertson has spent 25 years consulting in strategy, governance, risk management and market development to small, medium and global businesses and not for profits. She is founder of the Knowledge Network. co-founder of the Science Alliance and Speaking from Experience, and author of the trilogy My Value or my Values – balancing Value, Values and Profit.

Email: [email protected]