42nd National Management Convention: Disruptive Innovation

Excerpt from an insightful speech by D Shivakumar, Chairman & CEO – India Region, PepsiCo India Holdings Pvt Ltd at AIMA’s 42nd National Management Convention held on 30th September – 1st October 2015 at Hotel Taj Palace, New Delhi. The theme for this session was “Disruptive Innovation: Winning By Changing The Rules”.

“Good afternoon ladies and gentlemen. It’s always a pleasure to come for an AIMA National Management Convention. My experience of disruptive innovation is from my own career, working in Hindustan lever when we tried to make accessible and affordable categories like shampoo, face cream, detergent, baby care products etc, for the bottom of the pyramid. Then in Nokia, we made technology which was completely new to the world and accessible in a country like India, we went from something like 80 million subscribers to 900 million subscribers. That was the fundamental shift and now on the new journey of health and wellness platform. So what is disruptive innovation? What examples have we seen over the last decade of disruptive innovation and what we’ll see in the future?

D Shivakumar, Chairman & CEO - PepsiCo India addressing AIMA's 42nd NMC

D Shivakumar, Chairman & CEO – PepsiCo India addressing AIMA’s 42nd NMC

Disruptive Innovation is about creating new value! You can create new value through new price point, new quality point, a time dimension, so fundamentally creating new value in any market is a disruptive innovation. You create new market itself. Mobile phones created a new market; tablets are creating a new market, a market which did not exist before. Suddenly you bring something which is a new to the market. Most of the disruptive innovation is led by technology that’s what we have seen and when new entrants come into the market, they do not have old cost. The old costs of legacy players are completely disrupted by these new people with new business models. We have seen this in steel and every other industry. New players tend to have cost structure which is significantly lower and hence their business models are different. Then in the technology world, we see the concept of freemium, everything goes free but they make money somewhere else. So what do you do? How do you compete with something which is free? That is the disruptive innovation.

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Internet principles to build a brand online – Neeraj Gupta, Director, Sales and Operations, Google India

Mr. Neeraj Gupta – Director, Sales and Operations, Google India

Here are some internet principles that one should keep in mind when one think of business, product & market. When the internet started a few years ago, we could not imagine that there would be around 150 million internet subscribers in India.  That does not mean that the other mediums of marketing are losing their grip. India is one of the few countries where print media still plays an important role unlikely in other countries like US.

The first principle of Internet is: Use the unprecedented scale of internet.  Facebook has over a billion users,  Youtube has over 800 million users.  The reach through this scale is amazing. This medium allows SMEs to reach out to people of different backgrounds. Lady Gaga was a brand that was built on internet in a small period of time. One of the rare and interesting example is Psy & his gangnam style which has hit over a billion views in less than a few months of launch and made his style of dance, which was only available & popular in Korea reach across the world in just few months engaging more that million people and creating a revenue source for the artist & the publisher in very quick period of time. Continue reading

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Innovation in healthcare industry – Shivinder Singh, Executive Vice Chairman, Fortis Healthcare

Mr. Shivinder Singh, Executive Vice Chairman, Fortis Healthcare

I want to share my thoughts for a business that is not traditionally organised, not just in India but in most countries of Asia. Healthcare is not a business that is seen as an industry or something that people are excited about. Many people tell me that we make money when people fall sick and we make joy out of other people’s distress and sickness. Unlike many other business which are consumer facing like FMCG business & hotels where customers chose the products and services they like, but in 99.9% of cases, people come to us when they have no choice left. They don’t want to come to us; they don’t want to be in situation where they have to consult a doctor or visit a hospital.

Unfortunately the biggest challenge for us is that the minimum expectation from the people who visit us is our best outcome. The expectations from a customer who is coming in to the hospital is that he leaves well or perfect. Therefore we battle with the minimum expectation of our customer to be our best outcome always. So our challenge is that with this context how you will make a patient happy when he leaves the hospital after recovering from his illness. So, we want people to say that if I fall sick I would come to Fortis rather than going anywhere else. Continue reading

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Future of Indian Management – Ratan Tata, Chairman of Tata Group

Ratan N Tata is the Chairman of Tata Group

On an evening like this one tends to be overwhelmed when you, if you might rendered a bit naked in terms of your past and even more embarrassing when what one has to say is nice and flowery so as I set listening to this my mind went back to the late eighties where we had all come to believe that JRD Tata who I love and adore like a father was immortal, one didn’t think what the Tata group would be without him and then one day all of that changed and he called me & told that he would like to step down. He was 90 years old and I would take over. I had the same sense of being lost when I was 17 years old and started flying.  Continue reading

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It’s the Age of Women – Sangeeta Talwar, Managing Director, NDDB Dairy services & Former Executive Director, Tata Tea India

Sangeeta Talwar is the Managing Director at NDDB Dairy services & Former Executive Director at Tata Tea India – Tata Global Beverages

To move up the corporate ladder, you must be someone who’s “recognized and trusted”, than just being “the busy bee sitting in the corner room”.

According to popular study, it is believed that corporates with women have better profitability. But what is most important is how to recruit women talent, train them and most of all retain them!

Looking at how women are perceived in the corporate world today, we must first look at stereotypes. Pretty? Yes, also a mother. Proud? Don’t know, but should be perhaps. Accept some of the things about yourself. Yes, you do look pretty, presentable and value some of those good things that you bring to life. It’s even worse to try and do reverse on stereotypes, don’t try to be a super human being, you are not a super man or woman. However, there are certain irrational biases that exist about women. May be women are not good at reading maps and doing mechanical things, but they are wonderful team makers! They are better sniffers than men, that’s why they can prepare for the uncertainties of tomorrow. Continue reading

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Technology leading to Good Governance – Nandan Nilekani, Chairman of the new Unique Identification Authority of India

Nandan Nilekani is Chairman of the new Unique Identification Authority of India

Before I start talking about technology and intrusive growth, we need to understand that the challenge is very clear. We need to address the need for aspiration as we are a high aspiration society and we must address the challenge of migration for social welfare.

It’s critical to understand why technology is so strategic in solving the problem! I would like to cite five key trends in technology that will pave the path for improved public governance.

1. Ubiquitous spread of communication – millions of people with mobile phones
2. Communication revolution will get newer and faster technologies like broadband, 3G, national fiber network
3. Everybody in some sense will be connected
4. More apps on the cloud

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New Age of Management – Shri Kamal Nath, Union Minister for Urban Development

Kamal Nath is Hon’ble Union Minister for Urban Development, Government of India

AIMA’s Foundation Day is also celebrated as the Management Day of the country. How much management has changed from the first foundation day and even from the 46th Management Day that happened 10 years ago?

The relevance of management education needs to be looked at. This is a question that is discussed in top B schools. Not only should management change, but management education should change. So here we have got to reappraise what should management be. Management doesn’t only effect balance sheet or the company but all stakeholders and the society at large. Continue reading

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What I did right – Sanjeev Kapoor, World Renowned Chef

Sanjeev Kapoor is a world renowned Indian Chef.

What I want to share with you may be things which I have done right in my life, may be you can pick up some threads and you can do things which will probably make or give people a perception of being successful. Why I said perception because no matter what you earn, you would also be the same person and success failure, good bad ugly they are just perceptions. There is nothing but what people think of what you are and who you are. Normally at the core at the heart you would always be the same person. You try and make yourself better for yourself and when you do that, more often than not, people around you also start seeing you in a better way.

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Indian Music – Ustad Amjad Ali Khan, Renowed Sarod Maestro

Ustad Amjad Ali Khan is famous sarod maestro

Namaskar!

One lady journalist met me just now and asked me, “What are you talking on, what is your subject?” I said, like my music, when I come on the stage I am absolutely blank, I don’t know what I am going to perform. What raag, what taal – everything happens on the stage, unlike the European musicians compositions written by Beethoven, Bach etc. In western classical, the orchestra rehearses it a 100 times; that is their culture. I admire the discipline of their music, their way of life. They write music, they read music, they prepare and they maintain discipline which we lack unfortunately. Continue reading
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The Indian Democracy – B J Panda, Former Member of Parliament

Mr BJ Panda, Then member of Parliament.

I have been in Parliament for 6 years now and in the first 6 months that I was in Parliament I often was tempted to quit as the frustration gets to you because the things do not change as quickly as you would wanted to. That’s a reality, that’s part of democracy that we live in. I will touch a little bit more about democracy as I will go along but the reality is things don’t change. But one decision I made then was either I could be a wishful thinker or to decide to deal with the reality of the situation which is that things don’t change easily and in politics to bring about change is not easy and to try to make difference from within the system and that’s what I have tried to do.

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