Slowdown has continued for long and slowly seems to be becoming bolder. Indian government issues are increasing by the day with skeletons of corruption falling out of cupboard with ever increasing frequency. Policy paralysis seems to have added to the slowdown woes to the common man in form of increased cost of living, joblessness and increasing desperation.
On the brighter side, history is proof that even from the most abysmal situations societies have come out even stronger. Post World War era is a proof where devastated countries stood out to become prosperous once again. In such a situation too, business leaders now need to stand up eliminating wastages and start working out products and services which will bring high value to the customers. While such changes are anyway bound to happen over period of time, such an economic slowdown situation can only push business leaders to hasten such initiatives.
“Models have to be reinvented to bring higher value to customers in form of outcome based services and pay per use models …”
Looking at Technology alone, we can see that the Indian IT scenario has been a story of unprecedented success and growth. However, this gave rise to IT companies focus on profitability more than anything else.
Over three decades, the business model being followed by these IT companies have come under threat as it was the case of typewriters at the time of start of personal computers. Last typewriter was produced two years back in Godrej in Mumbai ending the era of the great machines which started in 1874 in New York and ended up in 2010 in Mumbai. If leaders of IT companies feel that even their business model will last for more than a century, in that case the decline curve has already set in.
Models have to be reinvented to bring higher value to customers in form of outcome based services and pay per use models. Customers are waiting to get a taste of services where someone truly acts like a partner sharing their risk and successes.
Have something to add? Share it in the comments.
Picture Credits : libertyvoice, For representational purposes only
By Alok Kumar