Ghotala.in

What does the recent scandal at Indian technology giant Satyam teach us about the nature of 21st century business?

First, that old-fashioned trust is still at the heart of any business-to-business relationship. Buying a service from a supplier is not just a procurement exercise in beating a company down to its lowest possible price. Does anyone remember the old Japanese theories of looking after and nurturing your suppliers from back in business school?

Second, the increased use of outsourcing has blurred the edge of the traditional organisation. Academics have talked about virtual organisations for a long time, but here they are in the news every day. There are companies that would be in real trouble if a supplier such as Satyam goes to the wall – because the supplier is such a critical part of the supply chain that they are effectively a part of the client organisation.

And third, the old-school Indian habit of management cronyism has to be addressed if Indian firms are to integrate themselves further into foreign customers. However, this is not just an Indian problem. Boards are stuffed full of friends in many places, including cultures closer to home, such as France. However, we are involved in the hi-tech future of industry so the hi-tech leaders need to work hardest.

Let’s behave like it’s the 21st century and reintroduce some transparency and trust into some of these corporate relationships.

Source / Credit