Jayakhosh Chidambaran

Theory of Relativity, Duck-Rabbit Illusion And Their Business Implications

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Originally Published in The Arabian Stories

Editorial Note

The ideal perceptual report of the observer is to see both Duck and Rabbit and any partisan conclusion masks the other side of reality

The Duck-Rabbit ambiguity image, first used by American psychologist Joseph Jastrow in 1899 was made famous by the Austrian-British philosopher Ludwig Wittgenstein. Wittgenstein in his seminal work Philosophical Investigations described two distinct ways of seeing: “seeing that” as against “seeing as”. Without the pattern itself changing, our perception of the pattern changes from seeing it as a Duck and also as a Rabbit. Both Duck and Rabbit are equally true and integral parts of reality, only differentiated by the perceptional range of the observer. The ideal perceptual report of the observer is to see both Duck and Rabbit and any partisan conclusion masks the other side of reality. To make sense of the world it is necessary to organize incoming sensations into information which is meaningful. The Duck-Rabbit illusion conveys an important philosophical message that not everyone can see every aspect or acquire every concept. It is connected to the notion that “limitation of thought is concept formation.” Perceptions are formed not only by what one sees but also a mental activity that requires exploration of possible scenarios and diverse perspectives to arrive at a holistic picture of reality.    

One of the greatest intellectuals ever to walk upon this planet, Albert Einstein revolutionized the way we perceive reality through his epoch-making Special Theory of Relativity. This theory postulates that the laws of physics are same for all inertial frames of reference and therefore no preferred inertial systems, no absolute time and no absolute space exists. Everything is moving relative to each other. The only constant is the speed of light which all observers moving in any inertial frames measure to be a constant value. Reality is a relative phenomenon. A boy dropping a ball from a train moving in uniform speed and direction sees it descend on to the embankment in a straight line, whereas a man standing on the platform perceives the motion as a parabolic curve. Distortion of reality? A reciprocal understanding empathetic of bilateral and multilateral perspectives are central to forge long standing business relationships. Many celebrated automotive alliances like Daimler-Chrysler, GM-Fiat and BMW-Rover have failed and dissolved because merged entities couldn’t figure out the key elements of successful cross-cultural partnerships namely commonality within autonomy and diversity within uniformity. When unique cultural identities are compromised and violated, strategic mergers and arrangements fall apart. By contrast, the longevity of Nissan-Renault-Mitsubishi alliance since 1999 is a stellar testimony to creating win-win synergies within culturally diverse Japanese and French companies while at the same time maintaining/respecting their inviolable and sacred Japanese and French identities.

These two theories provide profound insights into the way we perceive reality in business environments. The relativism of phenomena and limitation of thought emphasize the critical element of cooperation, collaboration and brainstorming among individuals within organizations and in industry to formulate a cohesive, winning strategic plan. Theory of relativity exhorts us to see our self as an object in relation to the external world and be aware of the causal relationships that act on it and influence it. Only through deep appreciation of other selves (read other people’s) perspectives, ideas, knowledge and information, we can develop a strong, independent, authentic and unique personality that helps us to take fundamental control of our lives and businesses. By having eclectic information, boosts a leader’s confidence in decision making, thus providing a bird’s eye view of contentious issues or volatile market situations! Automatic, impulsive reactions are now replaced with a deliberate, strategic plan of response. An open-minded, ethical, cosmopolitan and accommodating character is therefore indispensable for personal and professional success. When doing business with Asian and Far-East economies like China, Korea and Japan, building informal relationships like Guanxi, Inhwa and Wa that are predominantly cultural, hierarchical, face-saving, focused on personal loyalties, reciprocal favors and consensus should be researched and considered by prospective partners for efficient and desirable business outcomes.   

As the speed of light is an absolute constant in Special Theory of Relativity, independent of the motion of the light source or the observer, the only constant in business is the customer satisfaction. Brand awareness, recall and equity are a product of customer loyalty resulting from a unique value proposition. Customer is the nerve center of the marketing network. Organizations should develop a comprehensive strategic plan emphasizing on long term market maximization as against short term profit maximization through customer-centric plans and policies. Customer is the king, the sole purpose, meaning and end of business. Businesses should therefore strive to go beyond customer satisfaction to earn customer delight so that they become your brand advocates and partners. This is the essence of viral marketing where delighted customers endorse a company’s products and services through powerful word-of-mouth leverage and positive user-generated content on social media platforms.

The limitation of thought allusive in Duck-Rabbit ambiguity of Wittgenstein, lay emphasis on collective perception, thought partnerships and creative collaborations spurning constant innovation of products, process and systems to be constantly ahead of the curve. The rapidly changing business environments, technology and product obsolescence, evolving customer needs and preferences require new, dynamic and innovative thoughts, perceptions and fresh perspectives to understand and own the emerging new realities. Team work and camaraderie are two pronged requisites for a winsome strategy design and execution. In business parlance there should exist synergy between engineering and marketing divisions for rolling out successful products. A classic case is Philips, the electronics and consumer white goods behemoth that was launching extremely smart electronics products in the 1990’s but with limited commercial success, severely denting company profitability and on the brink of collapse. They subsequently hired marketing guru CK Prahalad, who identified that high failure rates were attributed to non-synergy between engineering and marketing teams. Philips had innovation in the mix but not marketing. Their new-product development was not centered on customer feedback, focus groups, the likes and preferences of the target segment in terms of ease-of-use, convenience and utility. Marketing teams were closer to the customer and non-collaborating with them during the design and engineering phase of product development adversely impacted Philips, not only by incurring staggering R&D capital expenditure, but also opportunity costs in the form of ‘time value of money’. As a consequence, the electronics giant suffered declining market share in competing product categories and customer segments. 

Theory of Relativity and Duck-Rabbit Illusion have profound implications on strategy development and strategy dynamics for gaining competitive advantage for any businesses. They also emphasize the need for designing win-win solutions and that business is never a zero-sum game. Macro-level growth and health of the industry is indispensable for micro-level growth and profitability of the individual firms competing within specific industries. Coopetition, joint-ventures and collaborative strategic alliances are as much critical to defend and fight competition, roll-out new products and achieve economies of scale. Knowledge and information never exist in silos. Organizational success is relative to different metrics and not just measured by profitability and superior economic performance, but the company’s commitment to the environment, CSR initiatives, brand activism, employee satisfaction and all these are predominantly subject to local and global macro and micro-economic forces. All value chain activities are relative in business and therefore nothing is permanent. Adaptability and innovation are the keys to sustenance and it requires holistic vision and multi-dimensional information. Theory of Relativity and Duck-Rabbit Illusion warrant a new paradigm thinking for business, best summarized by an iconic quote by the Danish existentialist philosopher Soren Kierkegaard, “Life is not a problem to be solved, but a reality to be experienced.”   

Read the article on The Arabian Stories
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