I found this on Bob Parson's Blog. Bob Parson's is the founder of GoDaddy.com, one of the greatest on-line domain registration and internet tool companies in the world. This is one of the most popular articles that has ever appeared on his blog.
(Begin Article) Given the timeless value of Mr. Rockerfeller's secret and the number of businesses I encounter that could benefit from putting it to work, I thought it might be worthwhile to re-publish it again.
Everything that is watched improves.
One thing I learned early in my business career is that anything of significance that is measured and watched, improves.
John D. Rockefeller knew the importance of business intelligence.
Back before I started Parsons Technology I became impressed with something I read about John D. Rockefeller. In fact, I still think about it and use it to this very day. I learned that Mr. Rockefeller was one of the few people in his industry (perhaps the only one) who knew exactly how much it cost to extract, refine and deliver a barrel of oil. In fact, he was entirely aware of all his costs.Knowing this information (and acting on it) gave him a huge competitive advantage. He knew how much he could price a barrel of oil for and still turn a profit. He was always keenly aware of each area of revenue, cost and market share, and he worked on improving in every area. As a result, he did cost saving things like manufacture his own oil barrels, have his own cartage company, and on and on.
He eventually managed his way to where he could sell a barrel of oil, with impeccable customer service, and turn a profit at a price less than what it cost his competitors to deliver the very same product. By paying close attention to the things that mattered, Mr. Rockefeller made his Standard Oil Company so successful that he became the wealthiest man in the world!
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