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Business today is operating in
an environment that is
fraught with complexities and uncertainties.
Competition has heightened and businesses today face competition not
only from other companies in the same business but also from
companies in other industries, which may or may not be related; not only
from domestic players but also from global players. Railways vs.
low-cost airways, watching movies vs. sports, the list continues...
Technology has broken the geographical and time
barriers making business operate from anywhere and at anytime. ATM,
m-commerce, Mobile/Internet banking, e-shopping,
e-payments are quintessential examples of the impact of technology on
business. Innovations in science and technology present
numerous opportunities as well as pose serious threats to business.
These innovations question the existing way of doing things making life
more challenging for companies as they have to continuously keep track
of these rapid changes.
Imagine this scenario; what if someone sells you a shirt or a
trouser which need not be washed for ever due to some nano-technology
that makes it dust, stain, water, and bacteria resistant. What kind
of impact will it have on washing machine manufacturers?
Imagine the amount of water and power that would be saved by this technology.
Today, companies need to constantly look at their
business operations from every dimension, be it cost, quality, value addition,
time, technology, brand, design, competition, etc., and challenge
the status quo before someone does. This rarely happens during boom
periods as companies focus their attention only on maximizing profit
or shareholder's value. Only during lean periods or tough times,
do companies question their operational or functional
strategy. For instance, during recession companies start questioning
their cost structure or business viability. This could be followed by
some knee-jerk reactions and quick-fix solutions from the company,
which could prove detrimental to the company in the long run. |
