Op-Ed: Using The Middlemind To Take Out The Middlemen
<B> Op-Ed: Using The Middlemind To Take Out The Middlemen</B>
By Dan Geller
<hr><I>Dan Geller is president of WizBizWeb LLC, a San Francisco-based e-commerce consultancy specializing in the travel industry.</I><hr>
Don't look up the term "middlemind" in the dictionary--it's not there. Why? Because middlemind is a new term that has grown out of the Internet economy, and was not around long enough to be included in the latest dictionary editions.
What is middlemind? Middlemind is a process of applying new and innovative thinking techniques to current practices in order to eliminate any unnecessary middlemen or steps along the way.
The key roll of the middlemind process is the simplification of current business practices, and migration towards the utmost direct linkage between buyer and supplier.
Prior to the emergence of the Internet age, many middlemen functions were essential to the sustainability of businesses, and middlemen have created enormous industries around their value-added services in the "old business model." However, now that the Internet is opening the doors on new business models, it is time to rethink the whole process, and replace middlemen with middlemind.
How does middlemind work? The basic idea is very simple. Take a blank piece of paper, mark point "A" on one side, and point "B" on the other side, and then connect the two points with one straight line. Since we know that the shortest distance between two points is a straight line, it means that this model represents the highest efficiency between point A and point B. If you replace the two points with the origin of the product or service on one side, and the end user on the other side, you have the most efficient and ideal business model.
Not every business process can reach the ideal model, but that is not the most important point. What's more important is that one strives to reach this stage, which along the way will be very beneficial, and will reward the seller and buyer. In some cases it might be necessary to have a mildly crooked line (an added function of middlemen outside the straight line) to accommodate specific customers or business needs.
Let's look at an example of a company that has achieved the straightest line between the origin-seller and the end user: Dell Computers. Currently, Dell Computers sells about 50 percent of its computers through the Internet. When one places an order on the Internet, the order goes directly to the manufacturing unit of each of the major components of the computer (i.e., monitor, key board, etc.).
As soon as the major component is ready, it is shipped directly to the buyer and not to a centralized shipping location (middlemen). Thus, the buyer might get two or three different boxes for his or her computer, however, time and money was saved on not sending the major part to an additional place to put the components in one box. This is an almost ideal straight line.
How does the middlemind process apply to the travel industry? Exactly in the same way that it applies to other industries. If you place your travelers at point A that we discussed above, and your air, car and hotel suppliers in point B you can now start the process of middleminding. Every step or process along the way is an additional cost, complexity and reduced efficiency. Now compare your current line to the straight line between your traveler and your suppliers, and you are looking at the potential for reducing costs, and increasing speed and accuracy.
What to do next? The next step is to analyze each deviation from the straight line to find out what value add does it bring to the process, and whether there are alternative applications that can produce the same or better output with less input.
Process mapping can help you apply the efficiency improvements to your travel operation.