Looks at the role of relationship management in the wired world Relationships and the Internet

There is little doubt that most of us in the business world have become familiar with the explosion of the Internet world. Most will perhaps have become weary of the continuous barrage of information being thrust forward by every possible media outlet. It is the most prolific subject being hyped at every opportunity.

It is easy to lose interest unless you happen to be a technology enthusiast. This is a shame when one considers the potential that is out there to support, improve and grow businesses. The problem is that the technology has been the main topic. Over the past two years we have been bombarded with the fact that unless we get ‘wired in ‘ then we will go out of business in days. This of cause did not happen .The indications, however, are that significant opportunities will be missed in time if we do not take up the technology.

It does appear that the reason for the relatively slow take up was not the concept but the realty of the available technology. No businessman anywhere would argue that wide reach and bigger markets are a growth opportunity. They would I suspect be very much more tuned in if the technology was able to reflect their individual business arena. Not some clinical trading platform formed by trying to commoditise every aspect of the business world.

The early approaches focused on the easy applications, as is natural. At the same time however, the hype was focused on the need to fit into a common structure. Few businesses in fact can achieve this simplistic concept. Differentiation has always been the corner stone of the business world. As a result many stepped back and waited to see if the technology could meet the true demand.

Some will have become familiar with terms like CRM (customer relationship management). This is the IT worlds agenda to recognise the importance of business relationships. Certainly in many markets the technology does open possibilities to consolidate and analyse data as never before. In the retail world providing a consumer with a front that is solely focused on the individual is a must to replace the face to face relationship enjoyed in a tradition shop.

The new wave of hype is now focused on ‘relationship management ‘ and ‘collaborative commerce’. It is a significant step in the right direction as it recognises that doing business anywhere in the world is not about connectivity of systems. It is about building the relationships that makes things happen. The problem is that few organisations have ever had to quantify these relationships. The prospect of some customer across the globe entering into a major contract simply because you address your emails on personal basis is unlikely. In fact in some parts of the world the more familiar the communication the more stress you place on the relationship. Often the least said the more achieved.

Understanding the value and importance of relationships has long been a key for most business developments. Now that we have the opportunity to tighten those linkages and create real time interaction it is important that we do not lose the initiative. Taking existing relationships and building on them rather than trying to clinicalise them is essential. Translating these relationships into real positive growth requires organisations to first understand what they have. Then look at what the technology can add to the equation.

From the experience that PSL have gained over the years it is surprising how organisations assume their relationships are sound. Many have considered they have solid partnerships in operation, which on closer external investigation have been found to be flawed. Having been created to promote the competitive benefits of partnering PSL is acutely aware that by imposing a technology solution without understanding the true nature of the relationship will result in unsatisfactory projects. Whether partnering initiatives or information technology initiatives.

From PSL’s view point the two approaches are inter linked and therefore want to ensure that organisations realise the full potential of their programmes. These like most business strategies is not an either or position. Creating new trading streams needs to combine all elements of the business environment. Ensuring firstly that the perceived condition of the relationships is real. Then looking to apply digital technology to enhance it. The alternative may be dissolution with both aspects.

At the same time nothing stays the same for long. PSL have found that even the most well thought out relationships change over time. It is essential therefore that organisations regularly monitor and test the continued validity of the interaction. It is again dangerous to assume that once the parties have put the technology in place the system will do the health checks.

Technology will provide vast amounts of data and may be able to provide pre- scripted analysis. It will not be able at least in the foreseeable future be able to validate the essence of the relationship. It is comforting for the first few occasions to be treated by a machine as something special. Once the reality kicks in and you realise that it has no feeling behind the words it may prove to have the reverse effect. The same principle can be applied to individuals working in a business relationship. When your value becomes the norm does your interest wane.

The long term potential of the Internet is only now being recognised as a real business to business enabler. The creating of new value propositions that are based on linking disparate organisations into cohesive virtual networks. The technology is there but the thinking and implications are in the main only now being realised in across the business community. The race for short-term gains at the risk of long-term relationships has not yet surfaced in this high-speed environment.

Recent research has shown that already customers are losing interest in the email, in favour of face to face business. Therefore major investments to desensitise the relationships between individuals and an organisation requires careful management.