The Hindu Business Line : The second string

“Do not keep all the eggs in one basket” is an age-old adage that has an enduring lesson for success in the business world. In the current context of phenomenal globalisation of the Indian industry, this dictum assumes special significance. There ought to be a second string to the bow in every business — an alternative activity geared to fetch additional source of income.

As the world is hurtling fast-forward in the twenty-first century, every business will be enforced to function with a minimum of two strings. While the first string will be its traditional and familiar business base, the second string will hinge upon changes in technology and customer orientation.

Here, understanding the implications of new technologies — especially information technology — is imperative for managing the second string. Every new technology is invariably faster and cost-effective and, therefore, much better. Nevertheless, a new technology does not become a success overnight. It takes a considerable time from the stage of experimentation to the stage of market placement. “Production is very hard, especially when it is about the future,” as Yogi Berra said.

Informed manager

During this period of trial and error, the manager becomes more intelligent and more informed — he understands the technique of knowing what is likely to happen in the future. When he is constantly looking ahead and reviewing the long-term driving forces that cause and create changes in the corporate climate, new patterns emerge, new opportunities are identified, and new threats are foreseen. The organisation is less random, and more resonant with system and discipline.

The current commercial climate is quite different from what it was twenty years ago. Companies behave in a totally divergent fashion, thanks to the demands placed on them by the new breed of customers. In a changing society in which customers are stronger, the good old model of producing a new piece, and then, going about persuading people to buy that product does not hold water anymore.

New order

The world is moving towards a new economic order in which the customer and the producer collaborate with each other for developing a product that best combines what the customer wants vis-À-vis what the producer can provide. The user and the vendor mutually determine their respective domain in the market. Owning the customers is far more important to a company than even owning the factors of production.

The second string model is an effective tool to stay in the business, particularly during turbulent times of change, which now seems to be an almost perennial phenomenon. But managing the two strings at the same time calls for a good deal of nerve and verve. It warrants the ability to let go of the one and ride on the other, at the appropriate time.

While preparing to deal with the velocity of change, the manager must also possess the proclivity for a rational and pragmatic perspective of the future. He must not begin to live in the future before it really happens. After all, he would do well to remember that technology is only a journey, and not the destination.

R. DEVARAJAN

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