Thursday, May 30, 2013

Sean Penn to 20th Century Fox

Early-1999, shortly after the release of Terrence Malick's The Thin Red Line, in which he starred, Sean Penn approached 20th Century Fox and asked for a private jet to take him to a screening of the movie in Houston. Much to his dismay, the studio refused on grounds of cost and company policy. Infuriated by the rejection, Penn wrote the following letter to the studio in response. It was very quickly leaked to the press.


January 6, 1999


To whom it may or may not concern at 20th Century Fox, et al.


The purpose of this scratchpad communique may well be as much to amuse you or inform you. Clearly, its less than humble writer has found grounds for amusement in its content.

In my continuing effort to support our shared entity, "The Thin Red Line," I have yet again run into another of the endless bureaucratic hurdles that your company relentlessly plants in my path. As a result of Terry Malick's invitation, I made plans to join Terry in supporting the film's screening, and ultimately its profile in Houston. As I have two movies, two children and (as each woman is at least two people) two wives presently in distribution, my schedule is rather hectic. I therefore requested that Mr. Murdoch's gigantic corporation might be so generous (with the money they've earned exploiting the pain and suffering of myself and my peers in their tabloids) as to supply me with a private jet to travel to Houston.
The response was a clear NO.

Two things were cited: 1) The $40,000 cost. 2) Policy. As to number 1, we at my tiny little San Francisco office went ahead and priced the cost of such a jet ourselves. In fact, it came to $16,000, which we had offered would be divided by two, as Fine Line Pictures had already committed to pay half (I would do an interview on behalf of "Hurlyburly" while I was there). Next we priced the commercial fare somewhere in the area of $2,000. The final cost differential to Mr. Murdoch's pool-heating expenses: A WHOPPING $6,000, which, against the price cut I offered in my deal to act in this movie, seemed equivalent to the fair market price of one hair on Mr. Rupert Murdoch's formidable ass. Next comes policy, the number 2 reason cited us in denial of our request. Evidently this is a word prized by Mr. Murdoch's company as I ran into it before when Mr. Malick requested that I be given an opportunity to view a videotape of the movie prior to his locking the print. I think we all know what a shameful little dance went on there, with wasted time, wasted money in the name of a policy. Has anyone at 20th Century Fox considered that it might not be my policy to do 7-figure favors for multi-national corporate interests as I did when I took the salary you paid me on "The Thin Red Line"?

Bottom line is...our policies collide. Good luck with the picture.

P.S. I know you guys don't remember what the inside of a commercial airline terminal looks like, but if you send me a picture of your jets, I'll send you a picture of the door at the Red Carpet Room. Wish I could've been in Houston. It's a beautiful movie and I'd like to have helped spread the word.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Tashkent Ahoy!

With a potent mixture of new and old, the city of Tashkent has something or the other to offer to travellers of every budget and taste, says Saurabh Kumar Shahi

There is a flurry of images that the word Tashkent evokes inside the minds of every Indian: 1965 Indo-Pak War, the Tashkent Agreement, the sad demise of Prime Minister Lal Bahadur Shastri and the image of his body being flown back to New Delhi. That was 1965. After that there is nothing much to recall.

But while we were busy doing what we do, some tectonic changes occurred. The Soviet Union dismantled and Uzbekistan emerged as an independent nation with Tashkent as its capital. The 90s saw developments at breakneck speed as the newly independent nation was inspired to gift itself a city worthy of being a national capital. Tashkent changed, and changed for good.

First the essentials. Uzbekistan Airways runs direct flights between Delhi and Tashkent, as well as Amritsar and Tashkent. Being a relatively new airline, Uzbekistan Airways boasts of some sparkling new carriers, a mixture of Boeing, Airbus and Ilyushin, in its fleet. The flight from Delhi takes a little over two hours and the ticket prices are affordable. The Uzbekistan Embassy in New Delhi will be eager to provide you with visa and other travel related documents provided you are going there as a tourist. Individual travelers face little problem unlike some of the famous tourist destinations nearby. In fact, the liberal visa regime has seen sudden spike in number of Indian tourists who are flocking to Uzbekistan these days.

While in Tashkent, the only hurdle that you might face will be at the Customs. The law requires you to declare every penny that you are carrying inside the country. You have to sign a declaration form that has a counterfoil and keep a stamped copy with yourself. This copy needs to be returned when you leave the country. Also, once inside Uzbekistan, tourists staying for more than three days need to get registered with the bureau. If you are staying in a hotel, the onus lies on the hotel to do it for you. Once done, you are set to explore the queen of Central Asia.

Tashkent is a well-laid out city with broad boulevards and even broader squares. Taxis are affordable but motorbikes are a strict no no. City buses are in plenty with widespread routes. But the best option to see the city around is through city's well laid metro network. A mixture of Soviet era and modern routes, the metro can be used to visit almost all the areas of new city and the downtown and a few areas in the old city as well. And, like its counterpart in Moscow, the metro stations are in themselves a delight to see. Adorned with murals and engravings, and a design reflecting Soviet era aesthetics, each metro station represents a unique theme. But as much as you feel like doing it, it is strictly prohibited to click the pictures of metro stations. The security inside the network is unprecedented and tourists are advised to keep their travel documents handy.

You can cover some sections of the city on foot. In fact, if you divide the city between the old and the new part, you can actually cover each part on foot. The city has mild and pleasant summers and bitterly cold winters with the mercury dipping way below zero. The best time to visit the city is from April to September. As there is little or no humidity, the walks are pleasant and does not exhaust you beyond a point.

There are two squares that define the new part of the city and it is in between these two that many of the attractions are situated. The city's biggest square is Mustaqillik or Independence Square and  it serves as the nerve center of the Uzbek government. Spread over an area of 30 acres by the side of the magnificent buildings of Government Secretariat and Oliy Majlis, the square draws substantial crowds at both daytime and evening.

Adorned with green zones and fountains the square is overlooked by the Arch of Independence. Nearby is the Monument to Independence and Humanism. There is a pedestal with a bronze replica of the earth on its top. On this bronze sphere, the territories of Uzbekistan are engraved. Prior to 1991, this pedestal had the statue of Lenin adorning it. Below is a statue of a seated mother with a child in her lap symbolising the new nation.
On its right is the Monument of Courage, build to commemorate the courage of the people who suffered the 1966 earthquake that almost flattened the city.

Further right is the World War II memorial dedicated to the fallen Uzbek soldiers. The monument consists of a flame and sad woman and a building with two corridors with the names of fallen written on it. The design is distinctly Japanese as it was constructed by the Japanese POWs. You can also catch a show in the adjoining Turkestan theatre which is well known for its aesthetics and acoustics.

The square is linked to another famous square, Amir Temur Square, through a boulevard locally known as Broadway. The city boasts of street artists and painters, who display and sell their original artworks. There are many shopping centers, boutiques and cafes around and spending an evening here is highly recommended. You can also catch street performers in the late evening. Also,  this is the place where you can pick some good souvenirs and Soviet era antiques. You also have the Palace of Symposiums and National Library of Uzbekistan nearby.

Read more....

Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Wednesday, May 29, 2013

Manufacturing defects

Focus should not be only on service but manufacturing as well

The economies that focused on strengthening their manufacturing sector, post World War II, have prospered and became global economic super-power to reckon. However, in India, the manufacturing sector has been a laggard compared to the fast and racy service sector. As a result, the service sector’s contribution to the economy is 56.4 per cent compared to manufacturing sector’s 26.4 per cent. Only some patches of growth trajectory experienced by the manufacturing sector even if impressive and optimistic is never enough to catch up with the service sector in terms of employment generation and human capital exploiter.

However, the wide eyed analysts are staring at the stunning performance of the manufacturing sector that jump started from December last year delivering the highest growth rate in previous 6 months. The HSBC India Manufacturing Purchasing Managers’ India (PMI) – a production measure – is ever increasing peaking in December with an impressive 54.7 points, if anything, is an indicator of rising demand and frantic purchasing. However, in spite of this high gliding manufacturing run, the employment creation bottleneck persists as it used to be. The primary reason for that is high worker to fixed capital ratio or in simple parlance capital intensive industries that has become the preferred choice for both promoters as well as the consumers. A twin and opposite development of capital intensive export products have more than doubled from 25 per cent in 1993 to 54 per cent in 2010 on one hand, and labor intensive products, which has 30 per cent share has exactly halved during the same period to 15 per cent (based on the estimate by Indira Gandhi Institute of Developmental Research). As a result, despite some erratic and sometimes notable growth in the sector the employment growth has plummeted from 2.61 per cent in 1993-94 to 1.02 per cent in 2009-10.

In contrast, the service sector is expanding in leaps and bounds producing nothing short of an eye-popping contrast! In fourth quarter of FY 2011-12 when industry sector was growing at 1.9 per cent, the service sector was striding miles ahead at 7.9 per cent. Consequently, the top 3 employment generators in India for 2012 have all come from service sector viz. Healthcare, Hospitality and IT/ITES. This paradigm is the cornerstone for even engineers from top institutes opting for service when they should be engaging themselves for manufacturing sector, for which they are trained. The fees for IIT students was a huge subsidy delivery even till the last year, when it was pegged at Rs.50,000 a year, a subsidy of Rs, 1 lakh per student per year. And where are the returns of this investment, meant to train the students as functions of manufacturing sector boost, going to? Either to the foreign shore to bolster their own industry or to IT or banking sector for which engineers are not trained in IIT at the first place! But at last the government has realized the vain nature of the fund flow and decided to off-load the subsidy burden for the IIT students. The other government engineering colleges too pins to be on the same trail and it requires some extraordinary policy measures from the HRD ministry to reverse the trend.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Tuesday, May 28, 2013

In the big league again

Indian hockey, once a powerhouse of the world game, has been looking down the barrel for decades now. However, with the advent of Hero Hockey India League (HHIL), fans have begun to see a sliver of hope.

The tournament, which features some of the world's finest players and is due to wrap up on February 10, is being telecast in 83 territories worldwide. It has put Indian hockey back in the global big league.

According to ESPN, the official broadcaster of HIL, a comprehensive line-up of global syndication partners are showcasing the first edition of the league in these many territories. Some leading names in the world of sports broadcasting like Fox Sports from Australia, Sky Sports from New Zealand, Ten Sports in Pakistan and southeast Asia and MENA region are covering HHIL live in the territories.

According to Aloke Malik, managing director, ESPN Software India, “These partnerships reinforce our commitment to set new benchmarks in the distribution of Hero Hockey India League. We look forward to working closely with all our partners and serve hockey fans all over the world with some mouth-watering high quality content.”

If Indian hockey is reemerging, the top bosses of Indian hockey will certainly love to take the credit. Dr Narinder Batra, chairman, Hero Hockey India League, said, “We are delighted to have a strong and committed broadcast partner. It is great to know that the first edition of the league can be seen by hockey fans across the world. We are confident that the popularity of the league and the game of hockey per se will greatly benefit from these international distribution tie-ups.”

Successes of HHIL
l HHIL’s broadcast in India, at the end of Week 2, has been seen by 2.27 crore hockey fans, way more than the full tournament reach of UEFA Euro 2012, which stood at 2.04 crore.

l HHIL’s reach is almost four times that of the Men’s Hockey Champions Trophy, which had a full tournament reach of 58 lakh. l HHIL’s reach is considerably higher than that of World Series Hockey, which stood at 1.24 crore individuals at the end of Week 2. l Even on the digital front, HHIL has achieved considerable success. HHIL's Facebook page has attracted more than 410,000 fans, making it the world’s largest field hockey Facebook page. l On Twitter, HHIL has trended multiple times not just in India but also in countries like the US.

HIL began with a bang. In its first week, close to 1.5 crore people watched the league. At 1.46 crore, HIL was 1.7 times UEFA Euro 2012's reach for the first six matches.

It garnered 24 times the average weekly reach of I-league. Within the first week, HIL overtook the tournament reach of the recently concluded 2012 Men's Hockey Champions Trophy. The first week TV viewership was more than double of what World Series Hockey could deliver in the first week last year. The figures released by the official broadcaster back the claims it made before HIL began.

HIL has the sanction of the international body, International Hockey Federation (FIH). To make it a global league, players from 11 countries are rubbing shoulders with each other. The league marks a giant leap for Indian hockey.

Indian fans saw a new avatar of Indian hockey when the inaugural match was played between Delhi Waveriders and Jaypee Punjab Warriors at National Stadium, Delhi.

HIL, a five-team franchise-based league, could in the long run revive a slowly decaying Indian hockey. After India missed a berth in the 2008 Beijing Olympics and then finished at the bottom in London last year, hockey administrators in this country were at their tether's end.

But gradually, over the last couple of tournaments, the young and enigmatic Sardar Singh is showing glimpses of India's past prowess and with a new professional league now in place the game could see a dramatic turnaround.

Unlike the rival World Series Hockey, 120 hockey players – including the best from India and the world – are participating in HIL. In an auction that was held along the lines to the Indian Premier League, India captain Sardar fetched the highest price. He was grabbed by Delhi for USD 78,000. India vice-captain and ace drag-flicker VR Raghunath was bought by Uttar Pradesh for USD 76,000, Australian star Jamie Dwyer went to Punjab for USD 60,000, Fuertse was taken by Ranchi for USD 75,500 and Nooijer was sold to Uttar Pradesh Wizards for USD 66,000.

The tournament – 34 matches spread over 28 days – has already given a huge opportunity to many young players from India and abroad but the organisers will have to increase the pool of players and improve overall standards.

In a cricket-crazy country, the HIL TV ratings have been extremely encouraging. When eight years ago the Premier Hockey League was started, no one would have imagined that one day an Indian hockey league would hit the headlines worldwide.

The best thing for the league is that players like Sandeep Singh and Tushar Khandker, who were dumped from the Indian team, are proving their mettle.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Monday, May 27, 2013

That Yahoo Moment!

The Right-Centrist-Left divide in Israel is mostly, for appearances' sake. When it comes to respecting international law and issues of decolonisation, each faction has cut a sorry picture in the past

As the dust settled in the Israeli political landscape this week, incumbent Benjamin Netanyahu’s Likud-Beitenu coalition has claimed a premature victory in Israeli parliamentary elections. While the incumbent lost massive number of seats in the Knesset, he in all probability remains the lone probable head of the new government.

As things stand, Netanyahu's Likud-Beitenu coalition bagged the highest number of Knesset seats with 31. This was a good 11 less than what this coalition had in the outgoing Knesset. However, their likely hold in the parliament will now depend on the coalition they manage to bring together. As of now, the numbers in the Knesset suggest that the ultra-right-right and centrist-left parties have managed to score a 60 to 60 seats in the 120-seat parliament. Under the circumstances, it is likely that Netanyahu will manage to wean away some of the centrist parties and continue to rule for some years to come. Among the others, the centrist Yesh Atid pulled the biggest upset of the election by returning as many as 19 seats. The hastily put together Labour Party machinery could only manage to return 15 seats, clearly a shadow to its former self. As this story goes to print, Yesh Atid was yet to return Netanyahu's call for coalition.

Let's first look at how the parties have performed individually. As mentioned earlier, Netanyahu lost the biggest percentage of seats. Before the elections, he united his party with that of ultra-right Foreign Minister Avigdor Lieberman. To many, it appeared to be a bulldozer coalition with little or no resistance. Experts gave this coalition up 45 seats, which was a marked improvement from their previous numbers. It would have basically meant that he would have been in command in choosing his coalition partners post-elections. However, the bloc won merely 31. Also, don't forget that Likud proper has won merely 20. Technically speaking, even if he cobbles together 61 seats and forms a government, his own party will be in minority. That, for all practical purposes, means that he is staring at a political abyss.

That brings us to Ya’ir Lapid and his Yesh Atid party. Sources suggest that his 19 seats stunned everyone in Israel, including Lapid himself. People are still wondering how he pulled it off. Israeli activist and political expert, Uri Avnery, has the answer.

“Well, he has the handsome, youthful look and body language of a TV anchorman, which indeed he was for many years. Everyone knows his face. His message consisted of platitudes, which upset no one. His victory is part of a generational change. Like Naftali Bennett on the right, he attracted young people who are fed up with the old system, the old parties, the old, hackneyed slogans. They were not looking for a new ideology, but for a new face. Lapid’s was the most handsome one around. But it cannot be overlooked that he beat his nearest competitor for young votes – Bennett on the right. While Lapid did not propagate any ideology, Bennett did everything to disguise his. He went to Tel Aviv’s pubs, presented himself as everyman’s (and everywoman’s) good guy, wooed secular, liberal youngsters,” he says.

This, in many ways, also means that Yesh Atid created a severe dent in the Labour Party and Kadima's vote banks. In fact, the Labour Party, in many decades, is for the first time finding itself to be irrelevant. This is primarily because its voters are finding it increasingly hard to differentiate it from centrist or centre-right parties. It also did not help that just prior to the voting day, the leader of the party categorically told the voters that it was “not a left-wing party”.

One party that started on a positive note and genuinely wants a peaceful future for the country and the region, Meretz, managed to double the seats from three to six. It is a miracle, considering how hawkish the Israelis have turned in the last decade. It is also evident that a substantial number of Jews voted for the primarily-Arab communist Hadash party, that also managed to up its numbers.

But the question is, what is this election going to bring on table as far as the resolution of conflict is concerned. Precious little, if experts are to be believed. If technicalities are shed away, this left-right-centrist divide in Israel means little for outsiders or for the Palestinians waiting for their separate homeland. In many ways, these divisions appear superficial.
Except for the parties that represent the mammoth majority of votes of Palestinian citizens i.e. United Arab List, Hadash, and Balad; who altogether bagged 13 seats, down from 19 last time; the rest of the Israeli parliament basically constitutes of individuals and parties that basically believe in continuing with a regime of Jewish privilege at the cost of the Palestinians. Be it is adherence to international law, issues of decolonisation or rights for Palestinians, Israel's centrists, centre-left and the left have all failed in equal measures.

Says Ramzy Baroud, Palestinian-American journalist and editor, Palestine Chronicle, “Israeli bulldozers will not slow down for a minute, be it a coalition with its bulk coming from Yesh Atid or one largely reliant on the ultra-orthodox or the ultra-nationalists. If you look into the record of Israeli governments, whether the two terms of Netanyahu or previous governments under the Kadima, nothing really changed and the settlements continue to grow.”

“There is a consensus within the Israeli society and political elite that the issue of the settlements is an issue that cannot be bargained upon, the differences are mostly tactical. As for the peace process, things will remain at a stand still. There is no peace process, there hasn't been a peace process for years and most likely there won't be a peace process under Netanyahu or under the mentality by which Israel is governed." Pessimistic, but true.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Saturday, May 25, 2013

Can monte carlo beat the Johnny-come-latelies?

The pioneer knitwear brand in the country has moved on to straddle other apparel segments catering to women, youth and kids' wear as it seeks to transform itself into a complete solutions provider for all our clothing needs. But can Monte Carlo beat the Johnny-come-latelies? By Angshuman Paul

Monte Carlo, the Rs 850-crore brand owned by the Ludhiana-based Nahar Group, has become markedly aggressive in the Indian apparel market recently. Though earlier known mainly in the woollens segment, the brand is now present in segments as diverse as knitwear, casuals, formals, sports and tweens’ wear. Though wollen wear still accounts for 75 per cent of its revenues, the company is aiming to change the ratio and take its share of non-woollen wear to 50 per cent in the next five years.

In focusing more sharply on youth and kids’ wear, the brand has extended itself into the emerging tweens’ wear market (catering to the age group of eight to 14 years) in India. With 30 per cent Indians aged below 15 years and kids demonstrating a heightened brand awareness, kids’ prêt-a-porter segment has emerged as the new playground for the Indian apparel bigwigs. Currently, the kids’ wear segment constitutes over 15 per cent of the overall apparel market in the country.

To capture the market, the group decided last year to wean away the Monte Carlo brand from Oswal Woollen Mills, under which the brand had till now been housed, paving its way to making its presence felt in the casual wear and fashion segments. But the company realises that to make this foray successful, it will have to come up with some innovative brand extension strategies. Quite a few apparel brands, like Raymond, have trod the brand extension route earlier. But when Raymond – perceived as a premium masculine brand catering to men’s clothing – made the brand extension into women’s wear, the gambit proved to be a failure. Raymond put the lessons of its failure to good use when it decided to enter the kids segment in 2006. Instead of thrusting its signature Raymond brand name to a new line of kids’ clothing, it created a new brand – Zapp. Monte Carlo has followed a similar strategy, christening its kids' wear brand as ‘Tween Monte Carlo’.

A look at recent trends in kids’ wear retail shows multiple players courting initial success before heading for a downward spiral. For example, brands like Koutons Junior, Raymond’s Zapp and Spykar’s Oyo are no longer in the business. The main reason for such reverses, analysts point out, is that the retailers did not pay heed to their pricing in an extremely value-driven segment. In the case of Raymond’s Zapp, the high pricing – the average price for an item of clothing was Rs 2,000, high by Indian standards – did not go down well with Indian shoppers. Other factors like poor positioning, indiscriminate expansion, not focusing on profitability and sometimes maybe more focus on valuations and therefore too strong an emphasis on expansion without putting adequate systems in place also played a part.

To avoid such pitfalls, Monte Carlo is making sure that its brand extension is supported with adequate branding. “If you have the right branding, then brand extension is never a bottleneck,” says Monica Oswal, Executive Director, Oswal Woollen Mills. She adds that apart from Monte Carlo, the company also has successfully managed other brands like Canterbury and women’s wear brand Alpha. “Unique pricing, supported by massive penetration and then giving a global touch to the brand have acted brilliantly for all our brands under Monte Carlo,” says Monica.

The company is also working to set up a separate manufacturing unit for kids' clothing. It also intends to target the metros and Tier 1 cities where kids and youngsters make their own purchasing decisions. Being easy on the pocket, Monte Carlo expects to make a good impact.

However, the going will not be easy. Brands like Catmoss, Mom & Me, Lilliput, Toonz Kids, Gini & Jony, Li’l Tomatoes and Ruff Kids are just some of the better-known players dominating the market. Not to be left behind, brands such as Benetton, Pantaloons and Reebok have roped in popular characters like Pucca, Ben10 and Power Rangers to lure their four to 14 age-group customers. Its major competition would be from retailers like Pantaloons. About 15 per cent of Pantaloons' annual turnover comes from teens and kids apparel. What’s more, even jeans manufacturing companies such as Spykar, Pepe Jeans and Killer are trying to climb on the kids’ bandwagon. International brands such as Tommy Hilfiger, Freelook Junior, and Adam Kids are also making efforts to expand their footprint.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Kati Patang

Domestic kite industry must go global to survive

I have always been a staunch believer of organising the so-called unorganised sectors of India. Not only it makes economic sense but also have a positive long term ripple effect on the society. It helps these unrecognised professionals to have a better and decent life and above all, showcase their produces at national and even the international market. Amidst all the dying industry, one industry which recently caught my fancy was the Kite Industry. Although Kite flying is a very old practice (and tradition) in India but these days one can see them being flown mostly during Basant or Uttrayan or International Kite Festivals.

Recently, the International Kite Festival, like every year, saw kite lovers from across the world gathering at Somnath in Gujarat to test their kite flying skills. This is not the only Kite festival but many such events take place across the nation during various weeks starting from December. However, in spite of such colourful hue this industry is one of those industry which is moving towards its declining stage. Undoubtedly, this industry needs a complete overhaul and lot of attention as many households are surviving on this seasonal industry only. The demand for kites may seem seasonal (in domestic market) but in reality its completely converse. A study of Chinese market and global demand for Kites makes it vivid that this seasonal industry can be made a conventional industry if tapped at global level. As a matter of fact, after declining by 50 per cent over the years, the industry is still worth almost Rs 1200 crore. Moreover, it employees over 70,000 artisans and seasonal workers across the nation with Bareilly, Jaipur, Kolkata, Jodhpur, Ahmedabad and Lucknow forming the major kite-making hubs. Taking about international market, in US and Canada, kite industry is estimated to be around $150 million (roughly Rs 750 crore market).

The kite industry has witnessed a major downfall particularly due to three main reasons. Firstly, Kite is still a seasonal industry in India. Once the festival gets over, business slacks to the point of being almost non-existent. Secondly, rising cost of raw materials along with increased competition from China-made products has made it less attractive proposition. According to a survey conducted by Assocham, “there has been an increase of about 25-30 per cent in the prices of raw materials like paper, string, powder used to colour the strings, sticks and the VAT due to which there has been a sharp decline of over 50 per cent in the business at kite shops.” Thirdly, domestic kites maker are not aware of global demand and different festivals like Weifang International Kite Festival, China; Bristol International Kite Festival, UK; Borneo International Kite Festival, Malaysia; International Kite Festival, France; Cape Town International Festival, South Africa; Washington State International Kite Festival, US and many other such festivals that takes place across the globe.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Friday, May 24, 2013

Hurt and humiliated

Ajay Rana analyses the sorrow and despair of the Indian cricket fan as a star-studded team turns lambs at home

Sachin TendulkarIndian cricket is writhing in pain. It has been beaten and bruised. The so-called tigers at home are being humiliated and their millions of fans are deeply hurt. Diehard fans of Indian cricket are worried because their team is surrendering very tamely. Zillions of Indian cricket fans are frustrated because their heroes are not showing the mettle that they have been known for, at least in home conditions.
The top half of the batting order is looking shaky and the tail is not wagging at all. Spinners who hardly spin the ball are always in the limelight. Pacemen who could hardly beat a batsman's defence are not at all in a hurry to work on their bolwing technique. Above all, the super boss of Indian cricket, Board of Control for Cricket in India(BCCI), is not at all worried with the steady decline in performance.

The administration has found a new stock market in Indian Premier League (IPL) and they are pretty satisfied with the ever increasing revenue of IPL. N Srinivasan and company seem satisfied with the four hours of nonsensical drama. They have hardly any time to discuss India's future in test cricket.
Diehard fans have been cornered and they are feeling dejected. The anguish of Indian fans was well addressed by former India captain Rahul Dravid when he took part in the latest 'BBC Test Match Special'.

“A lot of people are upset not just by losing but the manner of the defeats. India won three tosses and had the wicket in their favour in Mumbai and the best of the batting conditions here in Kolkata but they just haven't been able to capitalise or put up a fight,” said Dravid.
After the disappointing loss at Kolkata the selection committee led by Sandeep Patil pushed Yuvraj Singh, Harbhajan Singh and Zaheer Khan out of the Indian squad. It doesn't require a great cricketing skill to understand that these changes were just cosmetic and some of the players have been made scapegoats.

The matter was duly raised by former India captain Sunil Gavasker as well. In the series the biggest culprit were those players who threw their wicket after settling down well in the middle. But these issues were either overlooked or selection committee was told just to ignore this.
The fans feel ignored because the Indian cricket administration has always preferred to protect their own interests instead of protecting the interests of Indian cricket. What is required for Indian cricket has never been their priority. When former India selector Mohinder Amarnath started spilling the beans the administration tried to refute all the allegations. But he has already opened a can of worms.

It is an open secret in Indian cricket that Mahendra Singh Dhoni, who once had the Midas touch, has lost all his magic and the captain of the Indian cricket team is just trying to shield his place and position. Why is Sachin still playing Tests? Who will ask Dhoni to step down? Why has India only one opening pair which fails every time? Has Indian cricket (especially the Test team) slumped to an unexpected low? Instead of getting any positive solution the fans get frustrated to read an important point raised by Rahul Dravid, “People talk about attitude and say (the players) don't care because there is too much money in the Indian Premier League. That's one side of things but the main thing is their lack of skill and ability, which is more worrying for me. It raises questions as to the talent and quality of players coming through.”


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Saturday, May 11, 2013

Consumption crunch? Blame debt-burdened households

How large debts carried by homeowners have led to low consumer spending and is therefore preventing a quick recovery in the American economy

At US Monetary Policy Forum (USMPF) in 2012, an annual gathering organized by the Initiative on Global Markets at Chicago Booth, academics, market economists, and policy makers discussed how a housing market collapse combined with a high level of household debt limits the effectiveness of monetary policy. For instance, though the Federal Reserve has lowered interest rates to help homeowners reduce their mortgage payments and avoid delinquency, banks remain unwilling to refinance mortgages on homes that are worth less than the amount owed on them. The ineffectiveness of this policy suggests that the recession and the weak recovery that followed are as much about the large debts carried by homeowners as they are about a decline in housing wealth.

Economists increasingly have recognised the role played by household debt in generating deep and prolonged recessions. Homeowners with large debts experience the sharpest reduction in net worth when a large asset such as housing loses value. This shock sets off the economic downturn, as highly indebted households drastically cut back on consumption. In theory, households with healthier balance sheets ought to pick up the slack by taking advantage of lower interest rates as monetary policy eases. But as nominal interest rates cannot fall below zero, interest rates effectively remain higher than they should be, exacerbating the recession.

The distribution of debt – the fact that some households are deep in debt while others are not – can turn a housing shock into a grave recession. If everyone carried moderate levels of debt instead, then more households would be able to refinance and fewer would default on their mortgage. The damage to households’ balance sheets would not be so large as to lead to a severe recession, despite a fall in house prices. Empirical evidence supports these arguments. The November 2011 study, “Household Balance Sheets, Consumption, and the Economic Slump” by Sufi with Atif Mian of the University of California, Berkeley and Kamalesh Rao of MasterCard Advisors shows that the dramatic accumulation of household debt in US – combined with the decline in house prices – is the primary reason for the onset, severity, and length of the subsequent consumption collapse. The study is the first to show convincingly at the county and zip-code levels how a shock to households’ balance sheets contributed to the Great Recession of 2007 to 2009 and the slow economic recovery that followed. A SHAKY FINANCIAL POSITION LEADS TO DEEP CUTS An increase in credit supply, partly because of relaxed lending standards, made it possible for more individuals and families to buy a home than ever before in the years prior to the housing crisis. This credit boom put upward pressure on home prices that, in turn, encouraged many homeowners to borrow against the increasing value of their homes.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Thursday, May 9, 2013

“True entrepreneurs don’t start rich”

Stephan Gary Wozniak, Co-founder of Apple Inc., in an exclusive interview with B&E talks about the notable traits of successful entrepreneurs, and how he rates the late Steve Jobs as an entrepreneur-leader

B&E:
How do you define “entrepreneurship”, since you were key to creating Apple as a company, and what prime qualities should an entrepreneur possess?

Steve Wozniak (SW): I don’t have a good definition of entrepreneur. I’d go with the popular opinion. It’s usually a young person but could be an older person who is young at heart. It’s a person who wants to start a company and get going on his or her life toward making a lot of money.

B&E: How critical is passion as a success factor for an entrepreneur to succeed?

SW: Some entrepreneurs are motivated by passion to do a particular thing. Others just want any opportunity to have a business of their own. They all want to, at least partly, escape from working for others on this project. Usually entrepreneurship involves creation and engineering. Bright engineers get ideas and become entrepreneurs to bring them to fruit. Often an engineer or scientist creates some sort of working model in their home or garage first.

B&E: And what do you have to say about young graduates who make a mark in the world of entrepreneurship?

SW: These days many graduate from college with entrepreneurship training and they look for ideas or come up with ideas with little or no understanding of what it will take or if it’s possible. They assume that once they get funding for an idea on paper they can find engineering as a resource anywhere in the world. This is the business graduate. The best is when both disciplines, engineering (science) and business, are in the same person.

B&E: How would you rate the late Steve Jobs as an entrepreneur and what were his top qualities (and weakness, if at all) as an entrepreneur and a leader?

SW: Steve was one of the greatest. He didn’t do the engineering but he understood it better than pure business types. He always recognised the importance of it and hired the greatest engineers. I was his key in the early days but he did not make a mistake. In later times it was clear that he understood the importance of all the departments of a large company and insisted on hiring some of the best people in the world in every one of these departments.

B&E:
So you say that for Steve Jobs, being around engineers helped him emerge as a successful CEO-leader?

SW: When Steve was young he had a huge spirit to form a company as a way to bring his great ideas to the world. He thought fast and had ideas about everything and he was very outgoing about it. He was around a lot of engineers and knew when gold had struck, with the Apple II.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Wednesday, May 8, 2013

Indian real estate sector in 2013 and beyond

While the concept of affordable housing is expected to be the real rescuer of Indian real estate sector in 2013 and beyond, its execution still remains a big challenge due to unclear policy framework. Is there a way out?

Even the numbers indicate that “affordable housing” was nothing but a fad. According to a recent research by Lloyds TSB International Global Housing Market Review, “Housing prices in India have witnessed the biggest increase in the world over the last 10 years by a staggering 284%. However, the BSE Realty index has fallen 19% in the last one year and over 55% in the last five years.” As per Mumbai based real estate research firm Liasas Foras, “between Q4 FY2011 and Q4 FY2012, property prices in the National Capital Region (NCR) increased by 33% and in the Mumbai Metropolitan Region (MMR) by 17%. Bangalore and Pune too saw a modest increase of about 8% and 5% respectively during the period. However, interestingly the demand in India’s top six real estate markets - Mumbai, Delhi, Kolkata, Chennai, Pune and Bangalore – has fallen around 40% on an average. This is certainly a situation of low volumes and high prices.

The sector’s prospects too are looking bleak due to a series of interest rate increases since March 2010 affecting demand for real estate, along with rising input costs and mounting debt. Builders blame the rise in construction costs along with tight liquidity for their debt build-up. But the truth is the rising debt levels are more the result of an investor-driven demand. After all, a builder’s cost in constructing a property is not significant. Purchase of the land is actually done with PE investors’ money who are looking for at least 20-30% returns. Since the builder does not want to share his returns with investors, they jack up the prices of property instead. As per a report titled “Capital-driven real estate and its consequences” by Liasas Foras, property prices are raised by as much as 43% to accommodate the interest of the PE investor. Result: End-consumers suffer from unaffordable prices!

Then, there are other issues, too. Take land itself, for instance. It is not easily available and the records are not properly maintained. This makes acquiring land a time consuming, cumbersome and expensive process. “Land should also come with physical infrastructure, such as access to public transport, sewage treatment lines, and water and power supplies. Without these, no project would be saleable,” says Brotin Banerjee, MD & CEO of Tata Housing.

The increase in cost of construction also impacts this segment the most. According to industry estimates, construction costs account for more than 50% of the total price of affordable units, while in the case of luxury projects it is only around 20%. At the customer end, obtaining financing is a key constraint. One main reason for this is that this customer segment is employed largely in the unorganised sector and typically lacks documents that show proof of address, salary and other information that is mandatory for availing loans from the frontline banks.

Considering all this, it’s really tough for a real estate player to provide affordable housing unless and until the government pitches in. Agrees Navin Raheja, Chairman & MD, Raheja Developers Ltd., as he tells B&E, “For affordable housing to soon become reality the government needs to come up with a PPP model, and implement it in letter and spirit.” No doubt, the public-private partnership is a good model to cater to the housing needs at the bottom of the pyramid but not the way it is happening at present. For instance, currently, any builder can approach the government for subsidies in the name of constructing homes for the poor, and while there are stipulations, these are only on paper. The private sector has to be engaged in a manner that results in proper targeting of the housing stock. “You can’t have subsidies and then sell in a non-transparent manner,” say critics.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Tuesday, May 7, 2013

“There are too many airlines in India to form a cartel!”

Gordon Bevan, Aviation Expert & VP, UBM Aviation, tells why price-fixing isn’t enough a sign to prove a cartel in progress in the Indian aviation space

B&E:
Instead of worrying about cartelisation by airlines in India should a regulator like DGCA or AERA not allow them sufficient time to heal their wounds, whichever way possible?

Gordon Bevan (GB): India must look at what airline competition has produced. Irresponsible market share wars have delivered massive passenger growth, driving down average fares, yet no profits have been made by a majority of India’s airlines. Now uncontrollable external costs are dampening passenger demand. This will hit those airlines that are able to survive low fares through high demand stimulation. Perhaps competition or monopolistic behaviour control needs to be extended to those sectors of industry – like OMCs – that supply the airlines.

B&E:
About a month back, former Chief of the erstwhile Air Deccan complained that airlines in India are involved in price fixing and cartelisation, and that the It is quite easy to retell golf club chatter as fact. It is quite another to prove that both cartelisation has been executed in intention and deed, especially in a court of law. Capt. Gopinath’s assertion was that Indian airlines colluded to limit the ‘floor’ on airline ticket pricing. It is entirely possible that airlines would wish to limit the decline of yields and would wish to somehow influence this decline. Whilst this is possibly an aspiration, it is likely to be unenforceable.

B&E:
So you don’t think there is a cartel operating?

GB: Cartelisation of an industry requires that all players abide by the informal rules. And there must be a payback. Each of India’s airlines has its own break-even as each airline has a different cost base. Set the floor at Spicejet’s rates and all airlines will lose money, set it at AI’s and everyone will make profits. There are too many airlines in India to conform to a cartel pricing regime.

B&E: In August, the DGCA had observed that the price differential between a FSC like Jet and an LCC like IndiGo is wafer-thin! Isn’t this enough proof of cartelisation?

GB: This gap may be true. It is not proof that cartels exist. It may be the lowest that airlines are prepared to drop their fares to. Wise companies understand their bottomline and know the cost of production. We have experienced the effects of airlines selling below cost in India – clearly a sign that no one was abiding by any commercial sense let alone a price-fixing deal. If cartelisation exists, then it has done a lousy job protecting ailing carriers thus far.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Monday, May 6, 2013

It's time to get organized

Syria’s disorganized opposition forces cannot make an impact until they stand united to attract international community to a single platform to help them

Syrian opposition activists regularly express disappointment with the level of international support that they receive. Although the last meeting of the so-called “Friends of Syria” (a group of countries that convenes periodically to discuss Syria’s situation outside of the United Nations Security Council) brought more financial aid, the degree of genuine outside commitment to their cause remains questionable.

The US, the EU, Turkey, and most Arab countries agree that Syrian President Bashar al-Assad’s regime is no longer legitimate. They have intensified sanctions against the government, and have provided different kinds of support to opposition groups. Some states have delivered automatic weapons, ammunition, and rocket-propelled grenades. But arms deliveries have dried up, and the rebels’ pleas for anti-aircraft weapons remain unanswered.

Moreover, neither Syria’s neighbors nor Western governments are willing to intervene militarily. Indeed, despite expressions of solidarity, they have refused to establish a protection zone for Syrian civilians along the border of neighboring states, or to impose a no-fly zone for Syrian military aircraft. As a result, Syrian opposition groups believe that they have been left to confront Assad’s brutal regime alone.

But Syrian oppositionists must recognize that the lack of decisive international action is not only the result of Russia and China vetoing any meaningful action in the Security Council, or NATO countries’ unwillingness to enter into another war in the region. In fact, the international community is waiting for Syria’s disorganized opposition to transform itself into a coherent, effective force as much as the opposition is waiting for the international community. This entails forming a common platform that represents all relevant groups, including the Local Coordination Committees, the Syrian Revolution Coordinators Union, and the Free Syrian Army’s military councils.

The Syrian opposition needs to establish an umbrella organization accepted by all, including the de facto civilian and military leaders who have emerged locally over the last year and a half. These groups already share a common goal – to bring down Assad’s regime – and most of them (with a few ultra-militant exceptions) hope to build a peaceful, inclusive, and democratic state.

Influential opposition figures – such as former parliamentarian and political prisoner Riad Seif and the SNC’s former leader, Burhan Ghalioun – have proposed promising strategies for forming such an umbrella organization. For example, a “group of wise persons” who do not seek political positions could oversee the creation of a provisional council that includes all relevant political groups and coalitions, the military councils, the business community, and religious leaders.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Saturday, May 4, 2013

Better off 'building tomorrow's enterprise’?

Infosys has disappointed the street with its financials over the last few quarters, and even lost its bellwether status. However, an unperturbed management is banking on much better numbers in the medium to long term with its strategic transformation. Can they pull it off?

As I entered Gate No. 2 of the Infosys headquarters at Electronic City, Bengaluru, I could detect a heightened buzz in the environment, which I am otherwise very familiar with. A number of additional security personnel were combing the area, and no vehicles were being allowed to stop anywhere near the gate; in fact, even visitors were not allowed to stand and wait in the vicinity. Later, I realised that all this was happening because the President of Tajikistan Emomali Rahmon was visiting the campus on that particular day. Visits by heads of state & renowned foreign dignitaries to the Infosys campus is not uncommon, and there is a special area within the campus that has trees planted by these people. Respect was the foremost criteria on which Infosys Chairman N. R. Narayana Murthy built the company and indeed, it continues to be respected for much more than the manner in which it has grown from scratch to a $6.99 billion company in 30 years, and led the industry in absolute profitability for most of them. However, the past few quarters have seen the company miss some of its sheen on the bourses. Investors are particularly peeved with the company’s muted guidance that compares unfavourably to TCS and Cognizant (and to NASSCOM!), while being quite in line with the guidance of Wipro. When you look at the results of the quarter ending June 2012, Infosys posted a revenue of Rs.89.09 billion, a growth by 29.02% yoy and a profit figure of Rs.22.04 billion, a growth by 20.9% yoy. In comparison, TCS posted a revenue of Rs.114.11 billion, a growth by 32.47% yoy and profits of Rs.27.97 billion, a growth by 35.64% yoy. In dollar terms, Cognizant, which overtook Wipro in terms of revenues last year, has even overtaken Infosys with revenue of $1.795 billion as compared to $1.75 billion for the latter. Due to these reasons, TCS has now become the bellwether of the stock market, a position that Infosys held earlier. Moreover, the company’s guidance of around 5% revenue growth for FY 2012-13 has disappointed investors, since NASSCOM has provided a guidance of 10-14% in terms of industry growth.

Infosys maintains that the environment is volatile enough, and there is nothing materially positive to justify a higher guidance for them. Some critics say that the company’s single-minded focus on margins is the reason (making it lose some lucrative deals in a scenario where players are getting too aggressive on price), while some say that the company’s succession plan hasn’t gone well. It’s reluctance to latch on to M&A targets is a debate that certainly wasn’t born yesterday, though the company did manage one acquisition of late (the $350 million acquisition of consulting firm Lodestone) to show that it really is serious about inorganic growth now. To make matters worse, Infosys has delayed increments for its employees, which is all the more disconcerting for company watchers, who feel that this will only lead to an increased attrition of quality manpower.

In an exclusive with B&E, S. D. Shibulal, CEO & MD, Infosys, defends, “People link price and margin directly. Margin is a reflection of the company’s aspirations, philosophy, efficiency in operations, how do you manage, et al.” He asserts that there are as many as ten levers on margins that he can identify, which include things like onsite-offshore ratio, utilisation, pyramid structure and client choices apart from price. Moreover, he asserts that client deals today are strategic, and Infosys doesn’t really walk away from deals just because it has to bring its price points down. However, he also admits that having industry leading margins has remained a long term strategic focus area for Infosys.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles

Friday, May 3, 2013

Reverse innovation/exnovation

All that you wanted to know about the leading principles that drive innovation excellence, from those who created them

While innovation isn’t exactly suited to the short term mentality that affl icts most Indian companies, the impact of innovation on corporate sustainability can hardly be overestimated, as is indicated by numerous studies. Dr.Nam D. Pham, Managing Partner, NDP Consulting, attempted to assess the impact of innovation and IP protection on the US economy and concluded that IP intensive industries “create jobs and spur economic growth as results from high investments in research and development”. They were found to have output and sales that were over twice those of non-IP intensive industries, paid their employees around 60% more; and their R&D spends were around 13 times more than the latter.

Clearly, companies today need to take the innovation challenge head on and meet a variety of challenges right from the product idea to commercialisation to protecting its IP. This cover feature, which is a joint study between the Tuck School of Business (ranked number 1 in the Economist’s ranking of full time MBA programs globally last year), B&E and IIPM Think Tank along with primary research insights from the Indian Council for Market Research (ICMR), presents remarkable insights from global thought leaders on how companies can make innovation a success. Prof. Vijay Govindarajan, Earl C. Daum 1924 Professor of International Business and Founding Director, Tuck’s Center for Global Leadership (who has been ranked 3rd on the Forbes list of “World’s Most Infl uential Business Thinkers, 2011), presents a snapshot of his benchmark research on the phenomenon of Reverse Innovation (a term coined and popularised by him along with his colleague Prof. Chris Trimble, Faculty, Tuck School of Business at Dartmouth). He elaborates on the need for MNCs to start innovating from scratch for emerging markets (which are the new hubs of potential), and then bring these products back to developing and even developed markets; rather than relying too heavily on glocalisation. Prof. Arindam Chaudhuri, Hony. Director, IIPM Think Tank and Editor-in-Chief, Business & Economy, and Prof. A, Sandeep, Group Editorial Director, Planman Media, provide us a glimpse of their rather counter-intuitive, yet immensely relevant philosophy on ‘Exnovation’. They assert that companies, rather than consistently innovating, should instil strong process orientation to ensure maximum impact within the organisation and in the market place beyond for every innovation they do. Looking at the manner in which MNCs are latching on to the Reverse Innovation wave, B&E delves into the various need gaps that these companies are targeting, how they are attempting to commercialise the innovations in new markets and the learnings in that regard for Indian firms.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA