Visionary customers: source of long-term competitive advantage

Abstract

Purpose

This case describes how Varian Medical Systems, the successor to one of the pioneers of Silicon Valley, created a business with $11.6 billion in market cap by listening to dreams of its physician customers and their scientist colleagues and finding ways to fulfill them over several decades.

Design/methodology/approach

A key business opportunity that spurred the company was to identify the most perceptive thought-leader customers, then bring them into a long-term, system-building partnership.

Findings

If companies envision the future and work with perceptive, far-sighted customers and others who will benefit from high-value innovation, together they stand a real chance of achieving a desired future.

Practical implications

Establish forums where perceptive, visionary customers meet with executives, marketers and key developers to identify what you should deliver in the immediate future and in years beyond.

Originality/value

The case described the practical steps the company took to implement customer participation in the innovation process over many decades.

Citation

Wood, R.C. (2019), "Visionary customers: source of long-term competitive advantage", Strategy & Leadership, Vol. 46 No. 3, pp. 29-36. https://doi.org/10.1108/SL-02-2018-0014