Packers And Movers Pune
Why Do Key Decision Makers Choose As They Do?
When Decision makers collaboratr to create value, they must also be able to pursure their private objective without damaging the value chain.many jectives without damagine the value chain.many business mode nnovation,therefore,come from abjusting decision makers motivation.there are three ways of doing this:
change the revenue stream.
Traditionally,when the U.S. department of defense bought aircraft, it would agree to a time-and-materials contract, under which suppliers charged for labor and materials consumed (on a cost-plus basis)in the course of each maintenance event-- just as a mechanic dose for car repaire. unfortunately, this model doesnt provide suppliers with customer friendly incentives;from their point of view, the more problems the client has, the better. it has been estimated that for every dollar the goverment spent to buy a new airplane, it spent seven more over the planes life.
until, that is,the dod gave suppliers a reason to care about engine reliability. in 2003, facing pressure to cut costs and improve performance, the department adopted whats called performence-based contracting, which changed the revenue model for contractors. they would be paid for the amount of time the aircraft was actually in service, with the DoD specifying, for example,95% availabilty as its threshold. as a results, the longer a jet performed without needing to be taken out of service for maintenance or repair, the more the contractor earned.
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