Resource Leverage Practices of Indian Firms

7/27/2019 Resource Leverage Practices of Indian Firms

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Editor's Note

SMART RESOURCE ORCHESTRATION STRATEGIES OF INDIAN FIRMS

IN STRETCHING THEIR FRONTIERS OF BUSINESSES

The dawn of the new century has brought India to the economic forefront in the global economy, with an

increased awareness of the opportunity that India presents to the rest of the world. India is no longer a

socialist democracy and a closed economy of the pre-liberalization days. The Indian economy has been

growing at a fr enetic pace of over 7% in this new century, second only t o China. The largest democracy in

the world, with a population of over one billion that is predominantly resource-frugal in outlook with a

value-conscious mindset and the largest English speaking population outside of the Western hemisphere,

India is an attractive destination for business and leisure. People all over the world are curious to know

more about India and its growth story. On one hand, indigenous firms like Infosys, TCS and Wipro have

made a dent in the global IT and Software Services Industry. On the other hand, firms like Mahindra &

Mahindra in the global tractor business, Biocon in the transnational biopharmaceutical sector, Suzlon in

the international energy business have been taking India to pinnacles of glorious achievements in the

global competitive landscape. These native firms have been taking India much beyond being a key hub or

offshore destination for software and IT services.

The big successes in the Indian software and BPO sectors at the international level have instilled

confidence in business leaders and managers in other industries that they too can excel on the world stage.Some firms such as Reliance Industries are already world leaders. Reliance is the world's largest producer of

polyester fiber and yarn, one of the top 10 producers of chemical components such as paraxylene,

polypropylene, and purified terepthalic acid. Several other Indian manufacturing firms, in their aspiration

to become worldwide leaders in their industries, are taking the acquisition route. Tata Steel's $12 billion

acquisition of Anglo-Dutch steelmaker Cor us (which catapulted it to becoming the world's fifth-biggest

steel producer); Hindalco's all-cash $6 billion purchase of Canadian Novelis (whereby it emerged as the

world's largest aluminium rolling company); Tata Motors' $2.3 billion acquisition of the Jaguar and Land

Rover brands from Ford Motors; Mittal Steels' acquisition of Arcelor to become the biggest worldwide

producer of steel; Ranbaxy's acquisition of Ethimed in Belgium, Terapia in Romania, and the unbranded

generic business of Allen SpA of Glaxo Smith Kline in Italy.-these are but a few examples of Indian firms

making rapid strides in the international business landscape by way of well-timed and well-calibratedstrategic business acquisitions. It is no surprise that when the Boston Consulting Group (BCG) published

the recent list of top 100 emerging multinationals from the rapidly developing economies of Argentina,

BraZil, -Chile, China, Egypt, Hungary, India, Indonesia, Malaysia, Mexico, Poland, Russia, Thailand, and

Turkey, India-with 20 Indian companies on the list-was second only t o China. These firms are creating

exciting new innovations for the world.

Indian firms like Tata Motors, Godrej &Boyce and TCS have already taken recourse to new blue ocean

strategic initiatives in the form of the world's most affordable car 'Nano', a poor villager's cooling solution

'Chotukool' and 'Swach', a low-cost water filter for the impoverished respectively. The seemingly simple

and semi-literate Dabbahwallahs (Tiffen Men) of Mumbai have showcased their splendid services to the

extent of world-class 'six sigma' quality levels. Healthcare organizations like Narayana Hrudayalaya have

been augmenting medical tourism prospects from all over the world to India by virtue of their compelling

value propositions entailing globally best quality standards at world's lowest costs. Other firms like Aravind

Eyecare, Su-Kam, Shantha Biotech, Suzlon Energy, CavinKare, lTC (International Business Division),

(Gujarat) Ambuja Cements (world's cheapest producer) and Spring Hospitals have been dramatically

changing the indigenous or/ and international competitive landscape by constantly challenging the

infrastructural, institutional, technological and regulatory barriers/ deficiencies that tend to hamstring

many a business. There are other manufacturing organizations like Bharat Forge and Titan Industries that

have set new standards of operational excellence in the international arena. They have adopted a wide

variety of out-of-the-box business strategies of resource orchestration in the form of a judicious blend of

process and business model innovations in steering and expanding their businesses successfully towards

reaching out to new markets.

Native grassroots innovations like amphibious bicycle and mobile-operated switch point out the

humongous innovative potential present in the illiterate/ semi literate villagers Though many such


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Foundation, Honeybee Network and GIAN (Grassroots Innovation Augmentation Network) with du

support from the National Innovation Foundation of the State are slowly gearing up to undertake this tas

on a larger scale and bring many of them to commercial fruition in the days ahead. Even the MNCs lik

Procter &Gamble and PepsiCo are embracing the concept ofIndian Jugaad in their innovation processes

d critical complement to their existing units/ laboratories of innovation. Haier's recycling of conventional

washing machines from washing clothes to washing and peeling potatos, churning yak milk into butter an

detergent-less washing machines and micro-washing machines to cater to the needs of the BOP market

speaks volumes for its embrasure of the Jugaad concept in its product design and development activities

EMRI, an Indian business group has woven together the latest telecommunication, computing, medical

and transportation technologies to provide affordable medical emergency services in tribal, rural, an

urban areas in a spirit of resource complementation. Rural branches of big banks like State Bank of Ind

are embracing the resource conservation practices embedded in emerging technologies like those of Clou

Computing.

Novel Community Business Models such as Pay-Per-Use Model (e.g., Community Water Filtration

Plants), No-Frills Model (e.g., LifeSpring Hospitals), ParaSkilling Model (e.g., Gyan Shala), Shared Channel

Model (e.g., Project Shakti of HUL, ITC e-Choupal), Contract Production Model (e.g., Calypso Foods

Deep Procurement Model (e.g., Reliance Fresh, AMUL) and Demand-led Training Model (e.g., TeamLease

Services) that suit the idiosyncratic requirements of the BOP markets like India highlight the truth in thproverb 'Where there is a will, there is a way'. And all these have been proven to be commercially

successful. Though the per-customer margins are low in many of these markets, the huge volumes make u

for these lower margins per unit. It is with this intention that the strategy concept of "More for Less f

More" for emerging economies has come into picture. As a matter of fact, even the rich consumers of th

west are slowly growing more and more value-conscious and as a result, we see the 'reverse innovation

phenomenon gaining ground in the established markets of the west. In a way, worldwide, regardless of th

nature of the economies, these strategic principles of resource leverage are becoming inevitable an

indispensable for firms operating in any of the economies, whether established or emerging.

With almost 40% of the world's population living in China and India, these economies are poised

emerge as central players in creating global networks of innovation in coming years, as they enjoy certai

key advantages on the dual fronts of demand and supply. On the demand side, these countries are swift

becoming the important markets in the world for a wide range of products and services. On the suppl

side, they have already become the most important source for technical and scientific talent. Sever

renowned MNCs like General Electric and Bosch have set up their research laboratories in India toward

leveraging the native talent and arriving at a better fit with the emerging markets like India w)1e

technological leapfrogging is quite common with various boundary-spanning technologies in conjunction

with frugal business models offer a quantum leap in the customer value proposition in the form

disruptive innovations that are good enough for the price-sensitive masses. Indeed, emerging economie

like India that are large in total size though small in per capita income require idiosyncratic product/

service solutions coupled with novel business models that match these mega-markets comprising micro

consumers. The unrelenting urge of emerging economies like India to continuously adopt integrated

resource leverage often because of the resource constraints and infrastructural lapses and lacunae faced b

them is driving the firms, both native and global, to come to grips with the ground realities in thes

emerging markets slowly and gradually inf luencing the western consumers in sensitizing them toward

becoming value-conscious in their purchase decisions. Western firms are being forced by the firms (an

consumers) from these emerging economies to embrace some of the crucial principles of resource leverag

lest they should be supplanted by smart firms from these value-sensitive economies.

Dr. S. Balasubrahmanyam

JIM Kozhilwde


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IIMK News March 2013 3

Editorial

Editorial BoardEditor

Prof. Deepa S

Editorial Advisors

Prof. G. Anand

Prof. Reena Kohli

Prof. S. Balasubrahmanyam

Prof. Surya Prakash Pati

Dr. M. G. Sreekumar

CommunicationMr. Ramachandran N

Student Editor

Amartya Sen - PGP 15

Content

Nibedita Chakma - PGP 15

Sukriti Jain - PGP 15

Ankit Garg - PGP 16

Srishti Tyagi - PGP 16

Yogyata Thareja - PGP 16

Contact

Prof. Deepa S

Phone: +91 495 2809443

email: [email protected]

[email protected]

Globalizing Indian Thought

March 2013 | Vol. 7 (1)

C O N T E N T S

Thought Power - 1

Human history is replete with umpteen real-time examples of conscious / unconscious manipulation

of others thoughts for their better / worse performance. The benevolent (or malevolent) impact of the

Hawthorne Effect (better performance of employees because of managerial attention positively

influencing their motivational thoughts) in organizations; the Pygmalion Effect (better / worse

performance of students because of the encouraging / discouraging behavior of their teachers positively

/ negatively influencing the students thoughts) particularly during schooling; and sledging as a mind-

game in proactively dampening the spirits of the rival players in cricket all these point to tinkering

with others emotional thoughts towards their better / worse performance. When such is the impact of

manipulation of others thoughts on their performance, one can easily imagine the impact of doing sowith ones own thoughts for ones own excellence.

Right from the simple Placebo Effect (and spontaneous remission in medicine) through advanced

Quantum Healing (Deepak Chopra) and Thought-Massaging (Rhonda Byrne) to Thought Culture &

Transcendence (Swami Sivananda), the substantial influence of thoughts on our well-being, success

and manifestation of many a desire of ours can be seen and felt, with due observation and

experimentation over time. Indeed, building castles in the air is an indispensable precedent to building

castles on the ground, no matter how paradoxical it might look on the surface. We can see this in the

form of virtual simulation of hundreds and thousands of prototypes much before stereolithography

and actual production / manufacturing and this is quite common in these modern times. Creative

visualization (e.g., Shakti Gawain, shamans and hypnotists) and its benefits are gradually noticed by

the world. World-class Physicist-Philosophers like Prof. Fritof Capra successfully bring out the thin

line of distinction between physics and metaphysics by dint of their apt, apposite and appropriate

scholarly discourses. Some saints explain as to how breath-mastery and death-mastery are intertwined,

while some others bring out the causal linkages between thought-mastery and life-mastery. All these

do not discount the indispensable action(s) that should follow the respective thoughts. While actions

are indispensable for success in any endeavour, aligned thoughts do act as catalytic triggers that buttress

and bolster our inner convictions and provide intense momentum to our actions with due support from

like-minded souls. Rhonda Byrne takes this argument further and says that thoughts are magnetic and

have a frequency and that our bodies are human electromagnetic towers transmitting thoughts thereby

attracting the like-minded frequencies coming together for a common cause. Linda Goodman dwells

at length on programming and deprogramming of our minds towards age reversals and physical

immortality as well. Swami Sivananda talks in terms of our brains as antennae in the seemingly occult

domains of telepathy, intuition, clairvoyance, clairaudience and other allied ostensibly esoteric arenas.

We often judge some of our own (or others) ideas as infeasible or day-dreams or pipe-dreams without

second thought, often in the name of practicality. A former CEO of an MNC once said that individuals

would not need computers and this drop error costed the firm a lifetime opportunity. What might look

impossible or improbable today may one day become a reality. The extended list of novel uses of a

washing machine to lassi-making, vegetable-washing, potato-peeling and other such smart jugaads

clearly point out the immense latent potential of virtually every resource. The blue ocean strategy of

Callaway Golf (through its Big Bertha) in enticing and embracing amateur golf-players who had been

nonconsumers for want of decent hit-rates is a case in the point. There is no limit to human imaginationwhile some myopic, traditional experts brush many such seemingly crazy yet immensely creative

ideas as impractical / impossible. Where there is a will, there is a way might be an old saying; but its

truth remains intact even today. Indeed, imagination is more important than knowledge (Einstein) and

many a time offbeat approaches result in upbeat results, whether it is science or business or any other

human endeavor. Thousands of grassroots innovations such as the amphibious bicycle and the mobile-

operated switch by illiterate / semi-literate villagers speak volumes for this cordial will power taking

precedence over the so-called brainy / intellectual merit. No wonder, there is a quote which says

Impossible is the first word found in the dictionary of fools. Indeed, often the self-imposed cognitive

limitations restrict our real-time achievements. Expansive thought horizons, uninhibited urge to achieve

missions to mitigate human suffering, or unrelenting determination to arrive at a solution for a turbulent

problem or unfl inching resolve to alleviate and ameliorate the lives of the destitute and the deprived or

unswerving dedication to undertake some value-creating activity for greater good can galvanize and

unleash the immense latent energy towards achieving the mission of any human heart

Dr. S. Balasubrahmanyam

Republic Day Celebrations 2

Social Conclave on Waste Management 2

Pulse Polio Immunization Campaign 2

Swiss Consul General for South India visits IIMK Satellite Campus, Kochi 4

15th Convocation at IIMK 5

Indian Business Heritage Lecture Series 6

Inauguration of National Museum of Indian Business History 7

IIMK HR Summit 2013 8

Panel Discussion at IIMK 9

US - India Educational Foundation (USIEF) visits IIMK Satellite Campus, Kochi 10

Faculty Development Programme on Blue Ocean Strategy 11

The Rural Man Visits IIMK 12

ECHOES at IIMK 12

NOSTALGIA 2013 13

Interview With Dr. Paritosh Basu, Group Controller,

Essar Group 14

SSG NGO Workshop 17

Blanket distribution for homeless in Delhi 17

Calicut Mini - Marathon - 2013 18

IIMK Book Donation Scheme 18

Faculty Publication 19

Eighth Annual Welfare Day - February 09, 2013 20


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IIMK News June 2013 3

Editorial BoardEditor

Prof. Deepa S

Editorial Advisors

Prof. G. Anand

Prof. Reena Kohli

Prof. S. Balasubrahmanyam

Prof. Surya Prakash Pati

Dr. M. G. Sreekumar

CommunicationMr. Ramachandran N

Student Editorial Team

Ankit Garg - PGP 16

Srishti Tyagi - PGP 16

Yogyata Thareja - PGP 16

Contact

Prof. Deepa S

Phone: +91 495 2809443

email: [email protected]

[email protected]

Globalizing Indian Thought

June 2013 | Vol. 7 (2)

C O N T E N T S

Thought Power - 2

On one hand, we have Thought is impossible without words, a famous quote fro

renowned etymologist of the yester-decades. On the other hand, ancient scriptu

contend that World is impossible without thoughts and attribute pivotal importa

to the quality, focus, duration and intensity of our thoughts and their impact on our daily lives and careers.

wonder, Rhonda Byrne in her eclectic work entitled The Secret highlights the paramount importance of thoug

massaging in shaping our lives and sculpting our careers. It is amazing to see the striking contrast between

plausible literary perspective and the seemingly impossible philosophical perspective when seen from a mund

lens. Few inscriptions in the campus (Buddha: Its all in the mind. You become what you think; Swami Vivekanan

We are what our thoughts have made us) succinctly convey the message. Indeed, as we sow our thought seedshall we reap our harvest of fruits in real time and space. Creative, consistent and coherent visualization coupled w

persistent actions in alignment is the key to ones full-fledged success. Several research studies on Neuro-Lingui

Programming (NLP) conducted on thousands of individuals across the globe over the past few decades corrobo

the key role of auto-hypnosis or thought power in ones all-round success.

If one cannot dream of something, one can never achieve it. This is akin to saying that if one cannot simu

something, one can never make / manufacture it. In a similar vein, Sandra Rogers asserts that failure occurs w

thoughts of indecision, doubt, and dread predominate; and that human capabilities are directly proportional to

inner beliefs and convictions (Internal Locus of Control). In this context, it is worth noting a clarion call given

some saints: Change your thoughts and change your destiny. In the domain of spirituality, Sandra Rogers conte

that (day-) dreaming is indispensable for any desire to manifest in this world. She goes to the extent of saying

even what we call as luck, fate or destiny has a cause which begins in our thoughts; after all, life is a series of cau

and effects. Many Physicist-Philosophers, astro-scientific philosophers and spiritual gurus contend that each on

us vibrate at different individual electromagnetic frequencies of angstrom units per second at different points of t

in accordance with our moods, the nature / quality of the food we take, the hygiene we maintain, the music we listo, the colours we see, the company we are in, the books we read, the movies we watch, the thoughts we mull over

the actions we take. Just assatvik, rajasikand tamasikfoods influence human behavior and performance, feeding

mulling oversatvik, rajasikand tamasikthoughts over time do shape our personalities, Saints say. In the contex

spiritual pabulum, Sandra Rogers avers that the thoughts one feeds ones subconscious affect ones spiritual body

way the food one eats affects ones physical body. Our ancient scriptures say that YathBhavam ThathBhava

implying the indispensability of filling our minds with pleasant thoughts if we want a pleasant life. Consistent

persistent Think-Feel-Act paradigm propounded by ancient seers could be a holistic (physical, mental, emotional

spiritual) solution to realize our personal, professional and other aspirational goals. The human history and

evolutionary nature of science have been proving time and again that many an ostensibly esoteric noumenon of

yester-decades or yester-centuries often turn out to be objectively exoteric phenomena in the subsequent decade

centuries (e.g., heliocentric Vs geocentric models of our Solar system). Thought-massaging is one such sublimin

causal factor that is instrumental in realizing our dreams.

In spiritual literature, every human being is treated as a mini co-creator (by virtue of ones dominant thoug

and persistent actions consciously / unconsciously) with the Almighty as the mega-master creator. This concept of

creation in todays networked world, though in a mundane sense, has been embraced by contemporary MNCs w

futuristic outlook like Proctor & Gamble in their innovation initiatives towards developing the next generation prod

and services. Philosophers like Osho say that names like Krishna, Christ and Einstein are not proper nouns

common nouns similar to engineer, doctor, lawyer or architect. Anyone can become an engineer, a doctor o

architect. It is just that one has to awaken the appropriate inner qualities, hone them and unleash the doctor or

engineer from within. It is with such an intention that Osho calls every human being as a sleeping Buddha, a dorm

Einstein, a latent Krishna and so on. It is quite possible that he was referring to Advaitha (non-duality) concept in

these examples.

Taking cue from all these eclectic snippets of all-round wisdom, individuals (and organizations) can optim

their performance and reach the pinnacles of glorious achievements by striking a blend of nourishing food int

invigorating, coherent and consistent positive thoughts (Strategic Indent); creative and meticulous visualiza

(inspiring day-dreams); persistent actions in alignment; and scrupulous adherence to cosmic laws of success propoun

/ disseminated by various spiritual masters.Dr. S. Balasubrahmany

Editorial

IIMK Signs MoU with Plymouth University 2

Campus Green Initiative 2

IIMK PGP 17 Induction Programme 4

IIMK Kochi Satellite Campus Inducts First

batch of Executive Post Graduate Programme

(EPGP) Students 6

Leadership Workshop for Top Management

of Nationalized Banks 7

Strategic Management Forum (SMF) at IIMK 7

New Faculty Members at IIMK 9

Valedictory Ceremony of Executive Education

Programmes-2013 10

Team Bhook Lagi 11

Sangam 2013 12

Faculty Publication 13

CREST 15

Management Development Programmes 18

Documents

Resource Leverage Practices of Indian Firms