When you wanted to analyze costs and profits in days gone by, you tried to analyze raw materials. Like copper or wood or cathode tubes or whatever. You figured out what went into a product or service, how much it all cost, and what each component added to the finished item.
"Raw materials" don't mean the same thing today as they meant 25 years ago. I'd say that today raw materials include anything that produces the entire customer experience. Like: The greeting your receptionist offers on the telephone. Maybe the ambiance of your office. Maybe your response speed. Maybe the placement of your branded logo. Some of these "raw materials" cost money. Some are intangible.
Today's changing mix of raw materials has a profound impact on your success. Get the right mix of materials and assemble them right, and you move toward success. Leave out something that's important, and it's easy to mess up. Think about it.
