Living in a Flat World

The world is being flattened in more ways than one. Geographies have no meanings - the work that earlier could happen only from a specific geography can now happen from where ever. India's IT and ITES industry is a prime example and beneficiary of that. Traditional barriers between businesses are being torn down - A computer company in the US is biggest distributor of music! A cell phone company takes that title in India. So, what are the lessons for everyone? Couple actually,

a) Don't take anything for granted. If IT and ITES work came over to this geography following some economic advantages, don't be surprised if it flies off to another, if that other geography offers a compelling proposition. What can one do but wait for the fate accompli? Well a lot, first understand the reasons why this geography attracted this type of work. Understand for how long will those factors play to this geography's advantage. Be aware, flattness will follow. Sooner or later, what worked as an advantage for this geography, won't work for ever! However good thing is if what worked earlier won't work any more, there probably be many other things that will! When you are aware, you are prepared!

b) For survival depend on innovation. It is no longer sufficient to do, what you do, better and faster. Understand what you do! Question the very need of doing it. Ask what besides that. It is about breaking the mould, but not for the heck of it, or just to see how much noise it makes when it breaks!

From organization's perspective, there is one lesson as well - Doing it better and faster gets the incremental growth, the tectonic shifts can't be handled by this philoshopy. Killing of Walkman by iPod is a typical example. Why could Sony not see the digital revolution coming? Did it not have smart people? Well, I think it is not about people, it is about the way organizations are strctured. The organizations puts blinders on the employees. The incentive structure gets setup such that everyone in the organization does well when incremental growth is achieved. No one is incentivised or disincentivised to handle the tectonic shifts. A large ecosystem gets created that lives and breathes the incremental targets. While, milking an established product of incremental revenue is essential, however, to secure the long term future, a separate ecosystem has to be created that thrives on innovation, experiments and crystal ball gazing!