June 30, 2016
I was sitting at my desk and reading some magazine in this early morning. I found an interesting story and comments in the HBR. It was about a manufacturer of high-tech streetlights switching to a new subscription business model after finding that the products they offered were hard for customers to service them properly or achieve the hoped-for energy saving. However, an oldest and biggest customer came back to them and intended to purchase 5,000 streetlights. The CEO was afraid that if they made the exception, it would be difficult for them to convince other customers to purchase the subscriptions. But the CFO thought that they should do both to maximize the profits of the company.