Key Takeaways – Day 2:
10th Global Advance Management Programme-2015
Day-2 : 26.10.2015
Vision of the Future – Disruption & Opportunities ahead – PK Agarwal, CEO, NEU, SV
- Disruption & wealth creation – Technology changing the world at a very fast pace – Inventions changing life of people making it comfortable & convenient. Tech driven disruption -Major technical innovations cause disruption to the routine & changes the existing order (computers vis-a-vis pen & paper)
- Changing Business Strategies : Industrial economy – Knowledge economy – Open Business models. Marketing of innovation happening faster – Radio (1948) marketed 10 yrs later while iPod in 9 months. Wealth creation : Market value of Tech Co.s $12-14Tn against all gold in the world $ 8 Tn.
- Future of technology in waves – each building a new opportunity upon the previous one. Viz. waves in internet – internet of documents, commerce, people & things, disrupting the routing and creating new opportunities, jobs in new areas. In India however, happenings are only in the first two. The 7 megatrends –
- Everything smart, digital & connected (IoT)
- Big data to Infinite data
- Increase in Mobile computing capacity –connectivity of brains through sharing of data / information
- Privacy n security in a ‘connected world’
- Globalization – Increasing trend
- World has become a smaller place due to enhanced connectivity
- Line between real and virtual world disappearing fast
The 8th megatrend – Sharing of economy : Living space, money, food, services, Governments.
By 2020, >60 Bn products will be connected through IoT, changing the whole landscape of Business.
The Case of Open Business model for India – Prof. Darwin
- Innovation Vs Strategy
Innovation is not a strategy, it is much more than that. Beside creating a differentiator of price/product to stay ahead of competition (result of strategy), innovation also leads to a totally new frontier.
Strategy : Matching capabilities with opportunities in the market by optimizing within the existing constraints.
Ex : i. Tata Motors : Low cost cars for larger customer base & high cost car for limited customers
- Motel-6 vis-a-vis Hyatt
Innovation : Breaking through the constraints, going beyond frontiers & establishing a new frontier. 3 types :
Product : Mid priced Apple pushing out Motorola (Razr)
Process : Ford Model T – assembly line
Business Model :
- Open & Closed Innovation : Closed innovation presumes that to be successful, innovation requires control of inner idea generation, production, marketing, distribution, servicing, financing & supporting (XEROX). Open Innovation is the case of purposeful inflow and outflow of knowledge and amalgamation of both, to accelerate internal innovation and expand market. Need for wise Leadership – need for open Innovation –
Pace of Innovation R&D spending
New Business Models Rising Consumer inluence
Visit to Baker-Hughes’ Palo Alto Innovation Centre (PIC)
- Collaborative Environment – knowledge induction – idea to prototyping to testing to commervialization. Values to the Companies with leading / innovative technology.
- Innovation in Large Corporation typically starts with people, followed by process and technology, while in Small Corporates starts with technology, followed by process & people.
- 5 key elements : Leadership support , Housing in the talents, Imbibing culture, Identifying Focus areas and finally delivery of results.
- PIC Focus areas : Science & technology (R&D to commercialization) ; Value (Enterprise data analytics) ; Innovation
- PIC approach :
- Close interactions / collaboration with Universities / National Laboratories – funding projects with 12 / 24 month timeline. e.g. a. 2 yr project with Lawrence Livermore National Laboratory for 3D modelling of shale gas / oil reservoirs for designing / predicting hydraulic fracturing; b. Project with Stanford for High temperature resistant sensors & electronics.
- With e-commerce, Big data being generated in every business, enabling Business leaders to take wise decisions.
India & Global success :
- Changing perception about India in the western world (from Gunga Din to Beatles-Ravi Shankar to Kunal Nair of Big Bang Theory).
- Today’s Indian are successful, accepted in the Western World & the Indian image is emerging. Rapport between Obama & Modi – with many common ideas – also helping Brand India.
- Thank u for patient reading. Please suggest changes / additions, if any.