If you are familiar with the world of investing you are likely familiar with the ‘end-to-end’ process, and probably have a firm grasp on what an end-to-end operator is and what they do. On the other hand there are those who are new to the world of investing; you are just starting to get your feet wet and are learning something new every day. If you are like others, you are aware that learning as much as possible is very beneficial and having the financial guidance you need is of utmost importance. After all, it’s your future we’re talking about here, right?
First, let’s talk about the ‘end-to-end’ process. Investopedia defines this process as one that ‘takes a system or service from beginning to end and delivers a complete functional solution, usually without needing to obtain anything from a third party. It often refers to vendors who can see a project through from beginning to end, and supply everything needed to create a workable solution…’. After the definition the article goes on to say that ‘needed’ here refers to procedures, software, hardware, written materials, and the like; in other words, just about everything that may be required. If a solution is a true ‘end-to-end’ solution, it will maintain a strict level responsibility which eliminates unnecessary and superfluous steps in any process and results in optimal efficiency and performance within a business. End-to-end processes are most often used and recognized in the Information/Technology sector of the business world. With these facts in mind, we can move forward to giving you a better understanding of what an end-to-end operator is. But how does this relate to the world of investing? That’s a good question, one worth its share of scrutiny. Let’s take a few minutes to find out.
A Closer Look at the Details
Now we’re going to break things down quite a bit more. The first thing we want to do is reflect back to a day when the phone book was used to find specific services or businesses that sold specific goods. We found them and went to them for what they needed. As the technology ‘ball’ began to roll a bit, we became able to go online to find what we needed, but communications with the merchant or service provider we found was still a separate entity from the online experience. Next, however, people got a bit more comfortable with the tech that was available, and soon we were able to use the Internet for shopping and service seeking and setting up. Companies like Amazon, Etsy, and E-Bay, not to mention the newbies like Uber, DoorDash, and the like, have started handling things from ‘end to end’. You seek online, you find what you are looking for (product or service), and you discover that particular thing is carried or offered by one of the above (or another like them). They handle the virtual ‘advertising’, the sale, the processing, the shipping and delivery (if applicable), and any good, or bad, review or complaint you may have. If you have a complaint, they make it right.
This pretty much encompasses what an ‘end-to-end operator’ is, and what it does. Tech Crunch says it is the future of business, and with the success we see each and every day, and the growth experienced, it seems to be proving itself to be just what the consumer ordered. We can see that it is obviously doing some pretty astounding things as far as business is concerned. Large businesses and corporations are thriving as a result, but what about the small business aspect? The good news is that it’s working wonders for them, too. Boutiques, crafters, and even self-employed parents are able to literally take they businesses out from behind closed doors and offer their goods and services to the world. So, the answer to those questions is quite apparent.
What About End-to-End Operators and Investing?
So, how do end-to-end operators effect investors and investing? Well, if you’re an investor and you want to keep up with things and make the very most, you will see that the trend speaks for itself, and this means gain for those investing. If you’re looking for the best investment, however, look for these three points in the end-to-end operators you are considering:
1. Do they focus on pursuing the big markets?
End-to-end is the logical way to go if this is the case. Larger markets are full of big, yet old, companies, and these companies have quite often known success, so they aren’t so fast to get onto the technology bandwagon. This is a strength to look for when making your considerations.
2. Improved consumer experience when compared to others ‘setting the standard’
If things are better for the company that they are with the ‘status quo, you are looking in the right direction.
3. Profit margins, of course
The whole reason you are investing is to make money. You may be thinking about a company that is well known but slightly lagging due to lack of implementation of technology and the end-to-end principles we are discussing. If this is the case, you may be unfamiliar with the ‘E to E’ prospect, but keep in mind that you have the future to consider. Do you envision a world going forward, or in reverse? Forward, certainly, and your investment choices should line up for obvious reasons. As an investor, simply keep in mind the changing times, the trends, and your purpose when investing. This will help you make the best decision possible. Also, continue to keep up with trends and changes if you want to stay on top of your game.
In A Nutshell
An article expansion from NewsRound US states the following: The key purpose of being end-to-end is to deliver an even better value proposition to consumers relative to incumbent alternatives. That really is the gist of it, isn’t it? Anything that brings higher value to consumers is going to pay off, not only for companies, but for the investor as well. If investing isn’t your thing but business is, start to look harder at how you can begin to make the consumer experience better through end-to-end operations. If you invest, seek out opportunities with companies that are headed into the future. You’ll be glad you did.