Responding to Future Trends

I've been keeping up on the changes the retail industry is experiencing by constantly reading about trends. Recently I found some great gems of wisdom from a book entitled, e-Business, Roadmap for Success. Specifically, authors Dr. Ravi Kalakota and Marcia Robinson list eight
"Rules of e-Business".

They are:

Rule 1 Technology is no longer an afterthought in forming business strategy, but the actual cause and driver.

Rule 2 The ability to streamline the structure, influence, and control of the flow of information is dramatically more powerful and cost-effective than moving and manufacturing physical products.

Rule 3 Inability to overthrow the dominant, outdated business design often leads to business failure.

Rule 4 The goal of new business designs is to create flexible outsourcing alliances between companies that not only off-load costs, but also make customers ecstatic.

Rule 5 e-Commerce is enabling companies to listen to their customers and become either "the cheapest," "the most familiar," or "the best."

Rule 6 Don't use technology just to create the product. Use technology to innovate, entertain, and enhance the entire experience surrounding the product, from selection and ordering to receiving and service.

Rule 7 The business design of the future increasingly uses reconfigurable e-business community models to best meet customers' needs.

Rule 8 The tough task for management is to align business strategies, processes, and applications fast, right, and all at once. Strong leadership is imperative.

Recently, I found an example of Rule 3 in action.
Because of the internet, new car buyers can now do all their research prior to stopping in at your local car dealer. With detailed information about the actual dealer costs for a vehicle, new car buyers walk in with a "this is my best offer" attitude. Car dealers can no longer take the hard-nosed approach to negotiation about the car's selling price. The entire transaction has become rather transparent.

I see a potential trend in the consolidation of small town car dealers. No longer will a car dealer be able to survive on a selling a few cars a month. Because of the transparency, buyers are more saavy and can easily shop elsewhere for the best deal. In fact, there are some services offered by large wholesalers and retailers that will provide their memberships with a car purchasing service. No need to go into the dealer at all! Just call up company X, give them your membership number, tell them the make, model, color and price you want to pay, they will call back within 24 to 36 hours with a car located near you. Local car dealers may become showcases for test drivers only if they don't retool for this change in customer base.

As I review the list of these rules, I see that all businesses need to be prepared for the new more sophisticated buyer. Truly service and relationship building will be the keys to business success in the future. Surviving on markup alone for many small business will be a thing of the past.