The overall economy has never been more conducive for growth than today. Inventory levels are seemingly under control, customer confidence is on the rise, and awareness levels are at an all-time high. According to Gartner, the Indian market grew 34.4 percent in 2004 for a 10.23 percent share in the Asia-Pacific Region – the strongest growth it has witnessed in four years.
And now VAT and zero-duty regime promises a further boost for the business environment. A glance at the growth figures would have us believe that things couldn t have been any better for the IT industry overall. But are things so rosy for businesses at individual levels?
Paradoxically, a healthy economy has also given birth to a high level of cut-throat, unscrupulous competition. To counter this unhealthy trend, distributors have introduced the concept of value-added distribution. However, the focus continues to remain on pushing boxes rather than adding any actual value to either the customer or the product. The vital element is missing – Innovation.
Value-added distribution calls for a differentiation from the rest. Once the competition catches on to your innovative strategies, it won’t be long before they offer similar services. They have no option. If they want to survive they have to keep up with market trends. Thus your innovative practice is no longer enough to ensure customer loyalty. So, you have to continue innovating or else risk being run over by a smarter player. Competition demands that your ability to innovate always remains ahead of your customers’ and competitors’ ability to adapt to those changes.
The evolution of newer technologies in the market also plays an important role in changing the rules of the game. Ironically, the IT channel seems to be the last to adopt any new technology, be it an ERP, SCM or CRM solution. Channel partners need to leverage technology to innovate ways to improve supply chain efficiency, ensure customer satisfaction and keep a track of the competition.
While mature industries like textile, FMCG and BFSI have realized the importance of innovative marketing strategies and invest significant sums into R&D efforts, the IT channel seems reluctant to take the crucial first step.
One rationale could be the short product lifespan, which thwarts them from investing in a strategy, which may never see the light of day. Being innovative does comes with its risk, as it calls for going against industry standards. This could prove expensive and potentially unprofitable. And not all innovations necessarily lead to growth. But not taking new initiatives can lead to stagnation and decay.
However, innovation should be specific and to the point. Success will depend on how fast a distributor implements a particular strategy. It has to be well-thought-out, deployed intelligently, implemented diligently and adapted according to the situation, to achieve the desired goals.
Also, the customer needs to see value in your offering. The perceptions of value are what drive consumer choice and decision.
So, watch out for innovative opportunities and the future is yours to grab.