In business there is always this question: Should I add more Capability or add more Capacity? These two words sound like they are similar, but really they are quite different.
Adding Capacity provides you the opportunity to do more of what you are already doing. Adding Capability provides a differentiation and the ability to do things that you weren’t able to do previously.
Surely, if your business is suffering from a lack of Capacity then it is easy to justify adding more assets, but what about when volume decreases? What do you do with the extra Capacity if you can’t fill it? What about Capability? What if the assets that provide you with added Capability also provide the ability to maintain business levels due to diversification?
The old adage, “never put you eggs in one basket” applies here. Just as you should maintain diversification of clients, your assets should also provide the ability to diversify and differentiate your business from that of your competition. If your business can be the “one-stop shopping solution” for your clients, then that you have a huge advantage that will pay dividends. If your clients see you as capable of handling all of their requirements, you have the advantage of gaining even more business, keeping your operations diversified, and maintaining healthy business levels.
By Frank Arteaga, Head of Product Marketing, NAFTA Region
Bystronic Inc., Elgin, IL – Voice.email@example.com