Proximity: How Technology Brings Value right to your Door

There is a “Proximity Revolution” sweeping through every industry.

Have you considered what this means for your business?

Simply put, we can move even closer to on-demand customer fulfillment in ways we could have only imagined before.  This is *Proximity* and is a game changer for any forward-thinking leader.

In the latest episode of The Enlightened Executive, I explored this idea with Rob Wolcott, an esteemed expert in innovation strategy and co-founder of Twin Global.

Rob founded the seeds of his groundbreaking concept, *Proximity*, during a tech conference in 2014. Frustrated by repetitive and superficial presentations, he pondered a profound question: what fundamentally distinguishes the digital era from the industrial age?

Driven by this curiosity, Wolcott embarked on a quest to explore the deeper implications of digital transformation.

With his newly released book, “Proximity: How Coming Breakthroughs in Just-In-Time Transform Business, Society, and Daily Life,” Rob underscores his role as an enlightened executive pushing the boundaries of conventional thought.

Revolutionizing Business Strategies

Rob brought forth a compelling argument on how the “proximity revolution” is disrupting traditional business paradigms. But what exactly is the proximity revolution?

Simply put, it’s about bringing production closer to the point of demand, both in time and space, using digital technologies.

This approach isn’t a logistical luxury; it’s becoming imperative for success in today’s competitive landscape.

Why Proximity Matters

Rob shared the compelling business case of On-Demand Pharmaceuticals. Their process of allowing medical professionals to produce critical medications onsite and as-needed could eliminate stock shortages and significantly reduce costs for the consumer.

What can we gain by not being tethered to demand planning, mass production, and warehousing?  What sustainability opportunities can we realize?

This isn’t speculative fiction; it’s the advancing reality.

The same concept applies to many other sectors. For example, consider vertical farming that ensures fresh produce or 3D printing for customized products.

The trick is understanding customer needs and timing production to meet those needs precisely on demand.

• Action Steps – Bringing Proximity to Your Business: Take a hard look at your existing workflows. Identify stages where there might be delays or inefficiencies due to distance—whether in time or physical space—from the point of demand. Conduct a “value stream mapping” exercise by charting your process map, timeline, and information flow. This will help pinpoint areas where proximity can cut waste or enhance value.

Proximity and Customization

Utilizing proximity isn’t just about speed; it’s about precision.

Rob discussed Domino’s Pizza’s business model of rapid delivery that includes the customer’s ability to track where their meal is in the order lifecycle.

By utilizing proximity to offer a personalized experience, they can maintain scale and efficiency and collect valuable data on customers through their engagement in the app.

• Action Step – Leverage Data: Use customer data to forecast needs accurately and see how you might deliver customization closer to the time your customer realizes their need for your product or service. The more you understand your customer’s desires and timing, the better you can tailor your services. Implement systems that allow real-time customization. Think about how platforms like Amazon can tweak offerings based on instantaneous data.

Proximity in Urban Areas

Rob envisions a future where we might see smaller, automated plants sprouting up in urban locales, even in homes.

This isn’t outlandish when you consider the tiny “farms” producing fresh greens in city apartments or the growth of urban microbreweries.

• Action Steps – Explore Urban Manufacturing: Investigate the feasibility of smaller, distributed production units. Could part of your production be moved closer to your major urban markets? The closer to your customer, the more quickly you can satisfy their needs and only create exactly what is demanded at that point in time. Evaluate the possible technologies.

Whether it’s through smaller, automated plants in urban areas or strategic advancements like drones and electric vehicles, the proximity revolution is set to redefine how we think about serving customers.

Recognizing and leveraging proximity within your business model is not just beneficial—it’s revolutionary in the opportunities for both the bottom line and customer engagement.

So, get ready for an enlightening discussion on what it takes to stay ahead in the ever-evolving landscape of business and technology!

 Rob Wolcott also shares…

• The transformative potential of automation and AI in future business models.
• How leaders can overcome mental barriers to embrace proximity thinking.
• Real-life examples of companies redefining industry standards through proximity.

 If you liked this episode, you may also benefit from hearing:

• Chris Schembra discuss how a gratitude practice can improve team retention
• Joey Klein on optimizing your emotional health
• Gaurav Bhatnagar share how to promote your team’s wellbeing