The cloud of capitalism

Red Laser is one of over one hundred iPhone barcode readers available in the iTunes store. This seemingly ordinary application shows how freely available information over the internet is changing markets and the way we do business.

We discussed location based services a few weeks back and Red Laser is a good example of one of these products. Making the application even more powerful are the other services it plugs into — Worldcat is a world wide database of library catalogues and Google Inventory list stock levels in nearby stores, although the Google service is yet to be launched in Australia.

Just those two services show how booksellers are even more at risk – if you see an interesting book your mobile phone can tell you if it’s at the local library and which bookshops near you have it in stock and at what price.

Booksellers, along with travel agents, are used to the effects of internet driven competition and now almost every retail and wholesale business is feeling the change. The days of hiding your stock levels, prices and product information are now gone.

Much of the 20th century saw businesses hoarding information. In most industries, particularly in the business-to-business sector, price lists were closely guarded secrets and it took hours if not days of messing around with salespeople to get a quote.

Today, if you mess shoppers around they will find competitors who are open with their prices and products. In most cases time poor customers won’t even be bothered calling you as they will find the opposition’s prices on the internet and on their mobile phone.

In many respects this is a return to a purer, more honest form of capitalism where traders have to prove their wares on price, availability and quality, not by controlling information in the marketplace.

For the close to 50% of businesses who don’t have a website, you have to decide if you still want to be in business as your options are running out.

If you do have a website, a brochure asking you to email, call or fax the office no longer cuts it. Technology is overtaking you and taking the customer with it.

Have a play with services like Red Laser and the various local business products, see how they work and what your competitors are doing because you can be sure your customers are.

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Paul Wallbank is a writer, speaker and broadcaster on technology issues. He founded national support organisation PC Rescue in 1995 and has spent over 14 years helping businesses get the most from their IT investment. His PC Rescue and IT Queries websites provide free advice to business computer users and his monthly newsletter has over 3,000 subscribers.