Further to our earlier discussion around “Relatively slower growth of Indian IT product companies” let’s continue soul searching.
World economy is growing, inter country trade is growing, global power equations are changing more frequently than ever before, smaller but high potential countries are trying to consolidate their position in the region before marching towards global stage (I Love India J ), Oil prices are dropping at the will of small group of countries, wars are creating whole lot of uncertainties across the globe and so on.
This is 60,000 feet view.
While all above have overarching impact on what your company can actually do in such a changing environment, on ground at business level, there are few more challenges:
1.Consumers and hence your client’s ’s buying behaviour is changing
2.Digital disruption is a wide spread reality and your company is still working on it
3.While demand is increasing, supply is growing faster than this. It means domestic as well as global competition is increasing
4.Your company is struggling to hold / improve bargain power – you are under pressure
5.Your client is much smarter than earlier. Thanks to Internet and your cheap competitors who are diluting trade secrets for survival – Preparing their own coffin much faster…Alas they do not realize this J
6.How many of you have improved your knowledge and bargain power using power of Internet? I have done window shopping most of the time, hence my buying behaviour is changing – Now it does not matter if its business dealing or I am buying grocery from internet. I AM CHANGING AS AN INDIVIDUAL. Aren’t you?
The above list is actually longer but I do not want to scare you beyond this point.
If you are entering into international market these are stark realities that you have to face. So what is the Solution?
Simple: JOIN HANDS
Do you know any company in the world in any sector that has grown faster than rest of the pack without harnessing power of collaboration?
Actually, there are NONE.
Just imagine Amazon producing 100,000 items at their own and supplying to consumers at their own, imagine your nearby street grocery store producing wheat in its farmland down south before delivering to you at your door step. We all have been witnessing how various businesses; economies grew riding on the power of collaboration.
But it’s simply disturbing to see many Indian IT products companies are in a state of confusion:
1.Why to collaborate? Argument: When I can build a world class product, why I can’t conquer the world at my own.
2.With whom to collaborate? Argument: I do not know.
3.What am I going to lose? Argument: I am not sure hence I am scared
4.Why not Direct? Argument: My partner is trying to cheat me. It will take away my product IP and develop at its own.
5.Partners do not perform? Argument: Our sales guys are the best sales people in the world even if 70% of them are underperforming, 25% are barely meeting targets and only 5% are over performing.
I sympathize with Indian IT product companies not because all above I said is not true but because many of them have not tried it well with single minded focus. Or at times they tried but failed so now do not have brave heart to try out again.
As I said above, every business has understood the power of collaboration, tried-failed-tried-failed and still trying to make it 100% perfect(btw it will never be 100% perfect for any industry / company) it but ultimately they grew so far because of EFFECTIVE COLLABORATION with their partners, suppliers and buyers.
Come on, get up and let’s run together…Once Again.