The Hindu Business Line : The changing face of commerce

People need to feel that companies are listening to what they want to say. To cater to this, the corporate must necessarily look at the world from the consumer's point of view.

People today lead incredibly fast and fragmented lifestyles. Everyone feels the stress and strain of living in a busy and chaotic world. No doubt, there are several benefits, thanks to technology. People appreciate getting instant access to information, products and services. The downside, however, is that they are not able to step off the "fast-moving treadmill" when they want. The passive consumer is a relic of the bygone era, when companies ruled the roost in the market. People nowadays need to feel that companies are listening to what they want to say.

To cater to this new and dynamic constituency, the corporate must necessarily look at the world from the consumer's point of view. People are greeted with plenty of products and choices. They are more careful of their resources including time and energy.

Business has lived under the pretence that the environment in which it operates can be controlled. Even the language of business — plan, budget, and target — supports this illusion. But the events during the past decade have challenged this doctrine of control and command.

Some of the most leading companies, which have been continuously and consistently successful for more than half a century, are now struggling to survive.

The business climate seems to be the victim of circumstances. Cultural changes across the globe, disruptive technologies, psychosis of fear, and the inevitable element of chance are some of the causative factors for this cataclysm.

If there is any lesson to be learnt from this age of international relations, it is that while people have understood the culture and concept of globalisation, they have not realised its consequences. The rift between the US and the rest of the world seems to be the significant fallout of globalisation.

Disruptive technologies

Adding to this economic uncertainty is the reality of disruptive technologies that can affect almost every company and industry.

In fact, technologies which people now take for granted were disruptive when they made their maiden appearance. The steam engine, the internal combustion engine, electricity, television, plastics, and so on are typical examples of this phenomenon.

The significant point is that every age has been forced to respond to its version of disruptive technology. Disruptive technology invariably brings radical change through the introduction of a fresh way of doing things, at a much lower cost.

Start-up companies become industry leaders by embracing those new technologies and opportunities that come along with them.

Fear psychosis feeds on the exaggerations of reality that exist in the popular media. For instance,the fear that was a forerunner to the Y2K, during the last decade of the last century. A considerable amount of money and energy was spent on security considerations. Likewise, the ongoing threat of terrorism.

The business world is beginning to realise that chance must be included as a critical element in the planning process. Of course, there are many factors that can be planned, strategised, and controlled.

Nevertheless, there are several unpredictable circumstances that display a definite propensity to control and govern the marketplace. Companies must beware of the role of chance in their transactions with customers.

Far more important than any of these criteria is the concept of corporate social responsibility, which is holding many a company to ransom in the current commercial context.

The community at large expects business to take as much care about the people outside the company as those inside. Society wants to know what goes on behind the corporate gates.

Sense of awareness

The awareness and consciousness of an average citizen about his rights and privileges are quite high, thanks to programmes such as consumerism, social activism, judicial intervention, and media campaign.

Steering through all these speed-bumps and yet catch up with the pace and competitive race in order to survive — leave alone thrive — is the major hassle for modern businesses. That is the changing face of commerce in the contemporary economic environment.

(The author is a Chennai-based freelance writer.)