Problems are often viewed as obstacles to be avoided. However, as I sojourn in my educational experience at Lagos Business School, I have been indoctrinated that problems are the solution to business failures. Problem should be a major driver of business decisions for that business to become a successful one. Unfortunately, managers are not effectively interpreting their business problems and making use of the information at their disposal to answer a major question, What problem does your business solve? The importance of problems in the success of a business cannot be over emphasized and are highlighted in the mentioned points below:
- Value Driven
A business value is totally determined by the problem they solve. It is often said that if your impact is not missed or felt when you are absent, then your business is not valuable. The extent of a business value is in the scarcity or difficulty in replacing the product or service the business offers. The extent to which the business solves a particular problem is the extent to how valuable they are. It is also important to note that if a business product or services can be easily replaceable then the business is also not highly valued. A major driver of a business value is the kind of problem they solve. This is why companies should make appropriate and stringent review of the area they decide to startup. For example, if a person wants to set up a kiosk business in a local area and the person specializes in selling baby products, before selecting the area to set up his business there must be a particular age demographic in the area for that business to be profitable. This means that the business must be aimed at solving and catering to the problems of children in the area. However, if the area selected is populated with adults, there would be no problem the business is providing solution to. Consequently, the failure of that business is imminent because solutions are provided to a problem that is not relating to the area.
The extent to which a business is valuable is the extent to which the business solves difficult problems.
- Driving innovation
Problems serve as powerful catalysts for innovation within a business. When confronted with challenges, entrepreneurs are compelled to think creatively, explore unconventional solutions, and push the boundaries of existing paradigms. The necessity to find novel approaches to address problems fuels a culture of innovation, giving rise to groundbreaking ideas that can transform industries.
For instance, the global shift towards sustainable practices and environmental consciousness has posed significant challenges for businesses accustomed to traditional models. However, these challenges have spurred innovation, leading to the development of eco-friendly technologies, sustainable supply chains, and responsible business practices. Problems, in this context, act as drivers for positive change, pushing businesses to innovate for a better, more sustainable future.
- Organizational Learning and Development
Problems provide invaluable opportunities for organizational learning and development. When businesses encounter challenges, they necessitate a thorough examination of processes, strategies, and structures. This introspection fosters a culture of continuous improvement, where lessons learned from past problems become the building blocks for future success.
It is often said the greatest teacher is failure.
In summary, every business should stop answering questions that no one is asking. This simply means that businesses should cater to the problems and proffer solution because in proffering solution, there are several benefits that comes to them. A company that answers the question what problem are we solving? Is a company that would have advantageous advantage over the economic space. Therefore, every company should be problem driven and solution minded.
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