Quo Vadis? Date:   Thursday , July 02, 2009 You may look back and examine two reasonably unrelated aspects: 1. The way volumes and profitability have been changing. 2. The way the methods of doing business have been changing. Typically, the first was largely dependent on the objectives each one of us pursued. Some were consolidating, some were aggressive, and some were coping with the challenges thrown at them. Some were lucky, and some less so. Some even benefited from the changes they brought into their style of functioning, while some suffered because of the changes. In any event, examining this history of volumes and profitability rarely throws any specific light on the future. In contrast, let us look at the second aspect. In almost all cases one would find that the number of changes that took place in the methods of doing business in the last five years was much higher than the number of changes brought in during the last 10 years. A direct conclusion from this would be that the number and magnitude of changes in the next 2-3 years will probably be more than what happened in the previous five years. The thought about changes is, at the same time, both terrifying and exciting. It is amusing to discover how much of our time and emotional energy is spent in resisting change which is certain to take place. You always have two choices. Make the change happen and enjoy the process of directing it; or resist the change and suffer when it becomes a reality – as it surely will. Anticipating some of the changes definitely helps in ‘making it happen’, and also allows participation in directing it. This way we become, to some extent, masters of the change, rather than its victims. Let me try and give a ‘Tally Solutions’ view on what things will probably happen: * With over 30 percent of all SMEs automated, and almost 80 percent of them having some form of Internet connectivity, the ingredients are in place for businesses to function by taking advantage of this. * Most people will work, even when they are not in the office by accessing their information through the Internet and even by the use of mobile phones (SMS or other means), greatly increasing their (and their field staff’s) efficiency. * Most people will increase the range of business application and advisory services from their chartered accountants who will be equipped to offer advanced statutory compliance services and more efficient audit services in a connected environment. * Most people will enter into ‘collaborative commerce’. What this means is that people will be able to find, and do business with, customers and suppliers from within their primary business application (e.g. Tally). * With increasing automation by the government, almost all statutory obligations will get managed with full authentication through business applications. * With increasing facilitation by banks, paper checks will increasingly become outdated (or more expensive, as banks will start imposing differential charges for physical cheques) and most transactions will happen online through business applications. * In contrast, most banks will be able to get almost continuous information from their clients without the need for voluminous paper work and corresponding delays. This will allow them to fine tune their facilities for each customer which, in return, will lower the cost of financial transactions for the customers. * Almost all businesses will be able to easily accept payments through Credit Cards or other cash-less payment methods – irrespective of whether they are a small retailer, big retailer or non-retail businesses. This will dramatically simplify cash flow prediction and management. * Almost all businesses that sell to end-customers (e.g. retail) will be able to offer ‘online purchase’ services without investing in designing and managing commerce websites, and start focusing on ‘fulfillment of orders’ rather than ‘facilitating placing of an order’. Our own expectation is that many of these will become a reality within the next 24 months, and several of them will get adopted before the close of this year itself. Forewarned is forearmed. As you get more involved in the ‘creation of change’, rather than ‘waiting for change to happen’, your armory expands rapidly. Being a mathematics graduate, Bharat Goenka, Co-Founder and Managing Director of Tally Solutions India, had the intuition to develop accounting software. In 1984, his father bought him an IBM PC, that changed his whole phase of life. Goenka developed an accounting software called The Accountant with no-codes. He and his father together started Peutronics in 1986 - renamed as Tally from 1988, now the latest version is Tally ERP 9, the "world’s first concurrent multi-lingual business accounting and inventory software". Tally's clintele includes several blue chip compnies and small and medium companies and is on the verge of reaching its goal to be known at a global level.