The relationship between supply and demand has almost completely reversed, and understanding that transition is the key to surviving the tough times ahead. As mass markets were born in the wake of World War II, the supply of everything from televisions to automobiles was no match for the pent-up demand. The supply side called the tune. Today, hundreds of companies offer thousands of products to suit every desire. There is too much supply and not enough demand.
Rational business organizes around scarce resources.
In the past, what's scarce has been supply - raw materials, investment capital and physical assets. In a demand-constrained world, different metrics are required. The key to success is not maximizing return on supply but return on demand. The implications of this are, in many ways, quite complex. The task of creating a new accounting language will challenge MBAs for years to come.