AIMA | SNAPSHOTS | AUGUST 2013

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AUGUST 2013

Dear Readers,

It gives me great pleasure to present the next issue of AIMA News. AIMA has always at the forefront in spreading management thought and building capability in aspiring and practicing managers. A pioneer in the �eld of education, a large number of students and working professionals/academia have bene�tted of AIMA’s management education programmes and courses over the years.

The past month saw another batch of AIMA students convene at AIMA’s 18th Convocation. More than 1200 management students received PhDs, diplomas and certi�cates from the Chief Guest, Mr Sudhir Vasudeva, Chairman & MD, ONGC. The occasion also saw the presentation of AIMA-Kewal Nohria Award for Academic Leadership in Management Education for the year 2013 to Prof MR Rao, Professor Emeritus and Executive Director, Centre for Analytical Finance, ISB, Hyderabad. Dr Saugata Mitra, Chief People O�cer & Group Head - HR, Mother Dairy (Fruits & Vegetables) Pvt Ltd, was awarded AIMA Fellowship. You will �nd a detailed report inside.

The 39th edition of AIMA’s National Competition for Young Managers was also successfully concluded last month. Iconic stalwarts from diverse �eld addressed young students at AIMA’s Shaping Young Minds Programme in Lucknow held in collaboration with Lucknow Management Association. In addition, working professionals across India continued to bene�t of AIMA’s in-company training programmes, Business Simulation Programmes, workshops and interactive sessions during the month.

The forthcoming month will see AIMA’s customary change of guard at the 40th National Management Convention at New Delhi on 26-27 September which will be addressed by industry thought leaders and policy makers. We hope you would be able to join us there and further details can be obtained from the website at www.aima.in

This edition of AIMA News also carries updates from the LMAs and an interesting article on FDI by Mr D Shivakumar and one on measuring digital capital. I hope you enjoy reading this issue and look forward to your comments, feedback and suggestions.

Warm regards, Rekha Sethi Director General

M A N A G E M E N T T I M E S

AIMA’S MONTHLY E-MAGAZINE

AIMA OFFICE BEARERS

PRESIDENTMr D Shivakumar

SENIOR VICE PRESIDENTMs Preetha Reddy Managing Director Apollo Hospital Enterprises

VICE PRESIDENTMr Hemant M Nerurkar Managing Director Tata Steel Limited

TREASURERMr P DwarakanathDirectorGroup Human Capital of Max India Ltd

IMMEDIATE PAST PRESIDENTMr Rajiv VastupalChairman & Managing DirectorRajiv Petrochemicals Pvt Ltd

DIRECTOR GENERALMs Rekha Sethi

Published by:

Management House,14, Institutional Area,Lodhi Road, New Delhi-110003Tel : 01124645100Fax : 01124626689E-mail : dlma@aima.inWebsite : http://www.aima.in

Managing Editor:Mr Feroz Ahmed

AIMA | SNAPSHOTS | AUGUST 2013

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AIMA SNAPSHOTS

24 LMA NEWS34 AIMA EVENTS CALENDAR

18th Convocation

FEATURES14 IS INDIA MISSING THE FDI BUS?18 MEASURING THE FULL IMPACT OF DIGITAL CAPITAL

07 39TH NATIONAL COMPETITION FOR YOUNG MANAGERS

11 IN-COMPANY TRAINING

12 2ND WORKSHOP ON TOTALITY OF PROJECT

10 INTERACTIVE SESSION

08 SHAPING YOUNG MINDS PROGRAMME

CONTENTS04

11 CHANAKYA

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18th Convocation

AIMA Centre for Management Education held its 18th Convocation on 19 August 2013 in New Delhi. AIMA is India’s oldest provider of management education through the distance learning mode. At the Convocation, over twelve hundred students received their management degrees, diplomas and certi�cates.

Opening the Convocation, AIMA President, Mr D Shivakumar o�ered the students �ve mantras of achieving and sustaining success. Those included humility, having role models, lifelong learning, focusing on passion and not just money and staying connected with the family for emotional sustenance.

(L-R): Rekha Sethi, Director General, AIMA; D Shivakumar, President, AIMA; Sudhir Vasudeva, Chairman & Managing Director, ONGC; MM Pant, Chairman, Board of Studies, AIMA CME and Former Pro-Vice Chancellor,

IGNOU and Raj Agrawal, Director, AIMA CME.

Mr. JJ Irani XXXXX

(L-R): Rekha Sethi, Director General, AIMA; D Shivakumar, President, AIMA; Sudhir Vasudeva, Chairman &

Mr Sudhir Vasudeva, Chairman & Managing Director, ONGC, was the Chief Guest on the occasion and he felicitated the outstanding students. He advised Indian B-Schools to produce graduates who can be readily deployed by enterprises instead of graduates with only the potential to become employable. “India’s demographic dividend is contingent on youth being empowered with knowledge and skill. Else, the country will end up with a demographic millstone,” he said.

Mr Vasudeva presented the AIMA-Kewal Nohria Award for Academic Leadership to Prof M Rammohan Rao, Professor Emeritus and

AIMA SNAPSHOTS

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Executive Director of the Centre for Analytical Finance at the Indian School of Business (ISB), Hyderabad. Accepting the award, Prof Rao emphasised the need to build world-class education institutions in India. Commenting on Indian institutions’ low global rankings, he said, “Rankings are subjective and they reduce a multi-dimensional thing into a single number.”

The Convocation was also addressed by Prof M M Pant, Chairman of the Board of Studies, AIMA who reminded the students of the challenges awaiting them in the talent market in the prevailing economic conditions and expressed optimism that they could turn the challenges into opportunities through courage

MR Rao, Professor Emeritus & Executive Director, Centre for Analytical Finance, Indian School of Business, Hyderabad receiving the AIMA Kewal Nohria Award for Academic Leadership in Management Education 2013 from Sudhir Vasudeva,

Chairman & Managing Director, ONGC.

AIMA students at their Convocation.

MR Rao, Professor Emeritus & Executive Director, Centre for Analytical Finance,

AIMA students at their Convocation.

and innovative thinking.

Dr Saugata Mitra, Chief People O�cer & Group Head - HR, Mother Dairy (Fruits & Vegetables) Pvt. Ltd., was awarded AIMA Fellowship for signi�cant contribution to management thought and practice.

At AIMA’s 18th Convocation, 13 AIMA students were granted PhD in Business Administration by Aligarh Muslim University. 680 students were awarded their Post-Graduate Diploma in Management. In the Post-Graduate Diploma in IT Management category, 54 students received their diplomas. 466 students received their Post-Graduate Certi�cate in Management.

AIMA | SNAPSHOTS | AUGUST 2013

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39th National Competition for Young Managers

AIMA has been organising the National Competition for Young Managers (NCYM) annually since 1974. The Competition provides an excellent opportunity to young managers to demonstrate their knowledge, creativity, experience, professional prowess to become ‘Leaders of Tomorrow’. This year the 39th NCYM was held on the theme ‘Inspired Leadership for Turbulent Times and the Power of Youth’. The regional rounds were hosted by respective LMAs and were held at Chennai, Kolkata and Mumbai. The grand �nale was held on 31 August, 2013 at New Delhi.

Mr Rajeev Bhaduria, Director Group-HR, Jindal Steel & Power Ltd was the Chief Guest at the inaugural session of the grand �nale. The jury was chaired by Mr Anil Sachdev, Founder & CEO, School of Inspired Leadership (SOIL). The other jury members were Mr Yatinder Suri, Managing

Director, Outokumpu India Pvt Ltd; Mr Saugata Mitra, Chief People O�cer & Group Head HR, Mother Dairy Fruit & Vegetables Pvt Ltd; Mr Ravi P Singh, Director (Personnel), Power Grid Corporation of India Ltd; Mr Parveen Sahni, Director Canon India Pvt Ltd; Mr Amit Tripathi, CEO, Cent Percent Media Solutions Pvt Ltd; Dr Pankaj Gupta, Director General, Jaipuria Institute of Management and Ms Supriya Kaboo, GM-SME Talent Acquisition, Ericsson India Pvt Ltd.

A record number of 175 teams from across the country participated in the competition this year. Bosch Limited, Bangalore emerged as the national champions. Robert Bosch Engineering & Business Solutions, Bangalore were the �rst runners up and Anand Automotive Ltd, New Delhi were the second runners up. Sir Padampat Singhania Award for Best Young Manager was given to Ms Pooja Murali of Bosch Limited.

National Champion Team Bosch Ltd. with the Chairman of the Jury, Anil Sachdev, Founder and CEO, SOIL and the Chief Guest, R D Gupta, Advisor to Chancellor, ITM University, Gwalior.

National Champion Team Bosch Ltd. with the Chairman of the Jury, Anil Sachdev, Founder and CEO, SOIL and the Chief Guest, R D Gupta, Advisor to Chancellor, ITM University, Gwalior.

AIMA | SNAPSHOTS | AUGUST 2013

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Shaping Young Minds Programme

AIMA’s Shaping Young Minds Programme was held on 30 August 2013 at Lucknow in collaboration with Lucknow Management Association. The icons who addressed at the programme include Gen V P Malik, Former Chief of Indian Army; Mr Raghunath Medge & Mr Gangaram Talekar, Nutan Mumbai Ti�n Box (The Dabbawala’s); Mr Rajiv Pratap Rudy, Member of Parliament and Ms Sindhuja Rajaraman, India’s Youngest Chief Executive O�cer & Head of Seppan, a Chennai based animation �rm. The programme was very well received and attended by over 600 students.

Gen V P Malik, Former Chief of the Indian Army, lighting the lamp at the 38th AIMA Shaping Young Minds Programme. Also seen are A K Mathur, Senior Vice President, Lucknow Management Association, R K Mittal, President, Lucknow Management

Association & G Pattanaik, IAS (Retd), Former Vice Chancellor, University of Lucknow & Former Principal Secretary to Government of Uttar Pradesh.

Gen V P Malik, Former Chief of the Indian Army, lighting the lamp at the 38th AIMA Shaping Young Minds Programme. Also

Rajiv Pratap Rudy, Member of Parliament (Rajya Sabha) & National Spokesperson, BJP addressing the audience.

Rajiv Pratap Rudy, Member of Parliament (Rajya Sabha) &

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Interactive Session

AIMA and the Institute of Management Consultants of India organised an Interactive Session on ‘Utilising Feminine Talent: A Recipe for Organisational Excellence’ with Mr Sumit Chaudhuri, Chairman, Institute of Management Consultants of India. The session was held on 30 August 2013 at AIMA Auditorium. The session was chaired by Ms Neena Malhotra, Past President, Delhi Management Association, also present were Mr Arun Kapoor, Deputy Director, Centre for Management Education, All India Management Association and Mr Rajiv Khurana, CEO & Founder Personnel Lab.

Mr Chaudhari began his presentation by giving examples of several successful women like Kiran Bedi, Indra Nooyi, Naina Lal Kidwai, Kiran Mazumdar-Shaw, Chanda Kochhar, Meera Sanyal etc. Extolling their success he said, “What strikes me as spectacular in their phenomenal successes is that they have done it ‘despite’ and not ‘because’ of our society.”

Summing up the session he proposed a 3E Model, which should be the blueprint for achieving ‘Empowerment’. The 3Es represent Envision, Enable and Encourage respectively. The lecture was very well received and was attended by over 90 participants

(R to L) Mr Sumit Chaudhuri, Chairman, Institute of Management Consultants of India, Speaker at the Session, Ms Neena Malhotra, Past President, Delhi Management Association, Session Chairman and Mr Arun Kapoor, Deputy Director, CME, AIMA

(R to L) Mr Sumit Chaudhuri, Chairman, Institute of Management Consultants of India, Speaker at the Session, Ms Neena

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AIMA conducted in-house Business Simulation Programmes for several corporate houses and academic institutions between July and August. Programmes were conducted at Jindal Stainless Limited, Gurgaon on 17-18 July 40 participants; BHEL, Noida on 5-6 Aug for 35 participants; for IOCL at Indian Institute of Petroleum Management in Gurgaon on 16-17 Aug for 38 participants; Deepak Fertilizers, Pune

for 40 participants on 24-25 August and Master School of Management (MSM), Meerut for 140 participants between 29-30 August. While, the programme at MSM, Meerut is an annual feature, the programmes held at the various corporate houses had a very positive impact, providing insights towards business leadership and more programmes are expected to happen for other employees in future.

In-Company Training

AIMA Centre for Skill Development & Training organised a two day training for programme for Barauni Oil Re�nery of IOCL at Barauni, Bihar. The training module was customised for those involved in training function as a trainer of technical skills as well as training

coordinators at the Re�nery. The topic was ‘Training for Trainers’ and the session was delivered on 6-7 August 2013 at the premises of the re�nery. The training was very well received by the participants.

N K Das, DGM (HR) with faculty Kalpna Mathur and participants of workshopN K Das, DGM (HR) with faculty Kalpna Mathur and participants of workshop

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2nd Workshop on Totality of Project

AIMA and Project Management Associated (PMA) India jointly organised the 3 day workshop on ‘Totality of Project Management’ from 22-24 August in New Delhi. This was the second workshop organised jointly by AIMA and PMA who have entered into collaboration to inculcate Project Management skills in management professions.

The workshop covered 8 levels of project management, discussing the stakeholders, business cases, planning, scheduling, cost & �nancing, quality considerations, safety

and security, risk identi�cation, role and responsibility, teamwork, implementation, procurement, control problem solving closure and post evaluation. Towards the end of the workshop a 2 hour test was conducted. All successful participants in the test will get D level Certi�cation in Project Management (CIPM). The workshop was attended by 30 participants from several organisations including Jubiliant Organosis, Xylopia Labs, IIDL, British Orient Infotel, Moser Baer Thermal Business amongst others.

Participants at the workshop.Participants at the workshop.

TURBINES

AIMA | FEATURES | AUGUST 2013

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Is India missing the FDI bus?

Most people agree that India needs FDI (Foreign Direct Investment). India needs FDI to shore up weak infrastructure, she needs FDI to access new technology and business practices, she needs FDI to create wealth for entrepreneurs for reinvestment.India needs FDI to provide world class products to

D Shivakumar, President, AIMA

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its citizens, she needs FDI because current level of savings cannot fund future growth, she needs FDI to have a key seat in a future global world. The most important FDI reason of all is ‘job creation’. India needs to create 100 million meaningful jobs this decade in the manufacturing and services sectors.

According to fDi intelligence, Global FDI in 2012 was $565 billion, down by a third versus $850 billion in 2012. This FDI funded around12, 000 projects globally of which 2345 projects were in BRIC countries and 700 were in India. The number of projects in BRIC countries has declined since the 2008 peak of 3190 projects. Most of this $ 565 Billion went to large economies and $100 billion went to the BRIC countries. This investment created about 10 million direct and indirect jobs globally. One new global job needs $60,000 of investment. Forty-six countries account for 80 % of world GDP and attracted 70 % of all FDI between 2010 and 2012.

Multinational �rms invest in a country for a few reasons:1. Attractiveness of thedomestic market. 2. Access to market. 3. Ease of doing Business. 4. Access to land, utilites, Financial Incentives like Tax breaks, exports bene�ts 5. Intellectual property protection 6. The cost of talent and the availability of a talent pool 7. Fair Institutions 8. Governance and stability and 9. Experience of current investors.

Lets see how India stacks up on these parameters.India is one of the top domestic markets in the world and will be so for many decades to come. The Indian Middle class spend is expected to be $ 3.9 Trillion in 2020 and $12.8 Trillion in 2030. India has given access to companies in most industries. India should

not be arrogant because of the size of the domestic market. The opposite is true.

Investors like to deal with fair,humble, accessible, e�ective rule based governments. India is ranked No 132 out of 200 countries in ‘ ease of doing business’. Land and utilities are a challenge to manage. India o�ers �nancial incentives through SEZ s etc., but the incentive refunds take too long for the average investor.India has an attractive talent pool, but a pool hinged on lower costs. China and India risk losing investment to lower cost labor countries like Bangladesh, Sri Lanka and Vietnam. Most investors are happy with a free media and have anexcellent image of the Indian judiciary;their worry is the timelegal settlements take in India.The investing world sees the current Indian climate as

‘challenged’because of governance, regulation and perceived inconsistency. And sadly, current investors are not willing advocates of further investment in India.

The arguments against FDI tend to revolve around protecting home grown companies, about loss of

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jobs due to increased automation and perceived loss of control over new multinationals, especially in crucial sectors of safety and infrastructure.

There is a feeling that more reforms will help attract FDI into India. Reforms are basic and necessary, but not su�cient to attract FDI. One needs to think of attracting investment looking at India’s strengths and

watching what peer countries like China are doing and what the next wave of investment destinations like Bangladesh, Vietnam, Nigeria, Indonesia could be doing.

FDI and tax are inversely correlated, a country attracts higher investment if it is o�ers lower tax rates. The interpretation of tax to be paid and the current list of tax cases in India are not helping India’s cause inattracting FDI.The government needs taxes to balance its books; it also needs to create jobs for a stable,strike free, revolution free, inclusive society.

India created 77 million jobs between 1990 and 2000 and 60 million jobs between 2000 and 2010.Total FDI in�ow between 2000 and 2010 was $158 billion according to the Department of Industrial policy and Promotion. So, we need $2633of FDI to create one job in India. So, to create 100 million jobs this decade, India needs to attract about $263

billion, something we haven’t attracted cumulatively since reforms began in 1991!

In the three years 2010-2013, India has attracted $78 billion,e�ectively at the run rate required to attract $263 billion this decade. We cannot a�ord to slip up now, as the asking rate will be steep later on.Rationally, India has not missed the bus if we look at statistics, but emotionally, in sentiment terms, we seem to be missing the bus.

The opinion expressed is personal.

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Measuring the full impact of digital capital

Although largely uncounted, intangible digital as-sets may hold an important key to understanding competition and growth in the Internet era.

The US Bureau of Economic Analysis released, for the �rst time, GDP �gures categorizing research and de-velopment as �xed investment. It will join software

in a new category called intellectual-property prod-ucts.

In our knowledge-based economy, this is a sensible move that brings GDP accounting closer to economic reality. And while that may seem like an arcane shift relevant only to a small number

Jacques Bughin is a director in McKinsey’s Brussels office. James Manyika is a director of the McKinsey Global Institute and a director in the San Francisco office.

About the authors

AIMA | FEATURES | AUGUST 2013

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of economists, the need for the change re�ects a broader mismatch between our digital economy and the way we account for it. This problem has serious top-management implications.

To understand the mismatch, you need to understand what we call digital capital—the resources behind the processes key to developing new products and services for the digital economy. Digital capital takes two forms. The �rst is traditionally counted tangible assets, such as servers, routers, online-purchasing platforms, and basic Internet software. They appear as capital investment on company books. Yet a large and growing portion of what’s powering today’s digital economy consists of a second type of digital capital—intangible assets.

They are manifold: the unique designs that engage large numbers of users and improve their digital experiences; the digital capture of user behavior, contributions, and social pro�les; the environments that encourage consumers to access products and services; and the intense big-data and analytics capabilities that can guide operations and business growth. They also include a growing range of new business models for monetizing digital activity, such as patents and processes that can be licensed for royalty income, and the brand equity that companies like Google or Amazon.com create through digital engagement.

Conventional accounting treats these capabilities not as company investments but as expenses, which means that their funding isn’t re�ected as capital. Since the amounts spent aren’t amortized, they take a large bite out of reported income. Spending on those capabilities sometimes should be treated as capital, though, since they can be long-lived. Amazon.com’s development of an internal search process that promotes recurring sales or the e�orts of Net�ix to �ne-tune personal recommendations

to increase video viewing and retain customers are certainly more than expenses. Such capabilities, which are complex to build and replicate, can often help companies create enduring competitive strengths.

We’re acutely aware of misguided e�orts to justify sky-high valuations during the late-1990s Internet bubble by claiming that �nance and accounting fundamentals were no longer relevant. We also recognize that we’re far from the �rst to note the relationship among intangibles, company-level growth and productivity, and overall economic growth.1 What we want to suggest here is that those relationships, which once represented a small minority of business activities, are becoming the rule in the digital economy. In fact, much of today’s digital spending could pay for long-lived intangible assets that will de�ne the competitive landscape going forward.2 The rising stakes are seen in the copyright battles between Internet and consumer-electronics companies and in major spending on patent portfolios.

Above all, we want to emphasize the importance, for many business leaders, of making the mind-set shift required to embrace the importance of digital capital fully. The disruptive nature of digital assets is intensifying in markets such as search, e-commerce, and social media (where attackers can build business models with near-limitless scale). Disruptive digital assets are also important in segments where behavioral data and user participation can be monetized, by de�ning entirely new business opportunities or fostering breakthroughs in collaborative innovation. As the mobile-payments start-up Square is demonstrating in the credit-card arena, increasingly, companies that deploy these assets have the potential to threaten large existing pro�t pools thanks to the challengers’ vastly di�erent

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economics or radically new ways of doing things.

There are parallels between what’s occurring today and during the period, 100 years ago, when electric motors gained widespread adoption. Early in that cycle, companies invested in physical motors, which like today’s servers and routers provided a new growth platform. But the more important kind of value appeared after companies began

to understand how motors could change almost every process, improve productivity, and stimulate innovation. Companies that captured these bene�ts were more successful and more valuable than others.

Today, the market valuations of many Internet-based companies are higher than those of their counterparts in other sectors, including high tech. Many Internet leaders earn lower returns on equity than established technology companies do, yet there’s no reason to believe that markets are making irrational bets on the growth potential of digitally adept companies. As the sidebar “Valuation and intangibles: Viewing the numbers di�erently” illustrates, treating digital intangibles as assets rather than expenses clari�es the logic behind valuations.

(We based these pro-forma valuation calculations on data compiled by academic researchers, as well as assumptions about rates of intangible and digital investment from our own and outside research.)

Macroeconomic studies we have done suggest that digital capital is not only growing rapidly but has also become a major contributing factor in global economic growth.3 We examined the national-

accounts data of 40 countries, assigning values to tangible and intangible assets. In 2005, digital-capital investment represented barely 0.8 percent of GDP for those countries. This year, it will exceed 3.1 percent of GDP. Likewise, the accumulating global value of digital-capital investments has reached more than $6 trillion, about 8.5 percent of nominal world GDP. Globally, levels of digital intangible investment are more than half those of digital tangible investment. In more highly digitized economies, such as Israel, Japan, Sweden, the United Kingdom, and the United States, spending on intangibles represents two-thirds of digital capital’s total value.

This activity is starting to power growth. We estimate that digital capital is the source of more than one

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percentage point of global GDP growth (roughly one-third of total growth). Intangible capital already accounts for two-thirds of that slice, tangible investment for the rest. This growth �ows from not only capital deepening but also increased labor productivity—a remarkable thing, since the digital economy has emerged in the relatively brief space of 15 years. By contrast, it took 80 years for steam engines to increase labor productivity to the same extent, about 40 for electricity, and more than 20 for conventional information and communications technologies.4 (For more on the relationship between capital formation and productivity, see sidebar “Innovation, capital, and productivity growth.”)

Navigating the new terrain

Intangible digital capital’s role in economic growth gives policy makers one more reason to favor investments in broadband and other forms of Internet infrastructure. Such investments correlate strongly with overall digital-capital levels. In our experience, though, the implications are even greater for executives, who often are not tuned into their organizations’ digital strengths or weakness. Few companies have gone through the internal exercise of reclassifying expenditures or segregating bene�ts from spending on intangibles. And of course, companies can boast a high ROE thanks to strong legacy-product margins but may nonetheless have muted growth prospects as a result of underinvesting in digital capital. To set a more e�ective digital course, leaders should consider the following ideas.

Take stock of your assets

Since identifying intangible assets is di�cult, companies may be missing growth opportunities. Many have realized only recently that they can use

social-media interactions with their best customers to leverage innovation e�orts or that they may have unused data they could restructure into valuable big-data assets to sharpen business strategy. Similarly, companies should take stock of how digital capital they don’t own may be relevant to the business. A retailer that doesn’t have access to digital behavioral data on consumers, for example, may be at a disadvantage. So could a bank whose customers access products through a third-party platform that limits the bank’s ability to capture information.

Conversely, companies may wrongly assume that their growth results from conventional capital spending and therefore compromise growth by underinvesting in digital competencies. One online company, for example, stuck to a subscriber pay model in hopes of boosting returns on tangible investments such as server farms. It wound up missing a massive social-networking opportunity that would have yielded far greater returns on advertising revenues.

Our global research shows that the stock of intangible assets varies considerably by region. Some markets have larger numbers of strong digital contenders, others fewer. Companies could make those di�erences a factor in deciding which markets to enter and where to place digital bets.

Face up to looming threats

Assume that digital leaders in your competitive zone are relentlessly expanding their intangible assets both to attack existing markets and to create new ones. Amazon.com, for instance, won share from brick-and-mortar retailers with its ease-of-purchase model and its ability to reach long-tail customers. Now it’s launching new business models (such as Amazon Prime) to further leverage its user base and logistics capabilities. It’s also using tangible

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server assets to o�er cloud-based labor services (Mechanical Turk) that match freelance workers with demand for their labor.

A good �rst step is to identify which areas of your value chain are most vulnerable—for example, service delivery or weak digital brands. Competitors can slide vertically or horizontally into large gaps, so you’ll need to build digital assets quickly as a counterweight. Even companies that have a considerable stock of digital assets should understand that capturing value from them isn’t a given. Instead, such companies must de�ne (and relentlessly innovate with) business models that can be scaled up to match those assets.

One clue suggesting that a company might face emerging digital challenges is the existence of businesses that have unusually high levels of revenue per employee in adjacent market spaces. Amazon.com’s employee productivity, for example, is double that of traditional retailers. Net�ix, similarly, generates more revenue per employee than traditional cable operators do, by leveraging intangibles such as its highly evolved recommendation algorithms. Unusual �nancial pro�les are another warning sign. Since digital funding is counted as operating expenditure, digital leaders often have small capital-investment levels relative to their size and growth potential. They also borrow less, both because they may not need to (some reap sizable market rents from, for example, search licensing fees or patent income) and because banks may be less likely to lend against intangible assets.

Partner with care

Most companies rely on digital agencies for things like optimizing search marketing. In such cases, they may be ceding digital capital, since they never develop a full understanding of consumer segments or what inspires a customer who searches for their products. Seeing such capability building as an investment may change the logic of using third parties. Similarly, when companies look to established tech players for partnerships shoring up weaknesses, they should be cautious: some seemingly high performers may be on the wrong path and could burden you with outmoded standards and platforms. Alternatively, if you deal with strong players, you may be leaving yourself vulnerable by letting them lead.

The need for growth and competitiveness will force companies to build strong digital capabilities.

Viewing them as assets rather than additional areas of spending requires a new set of management and �nancial lenses. Embracing them is a major shift—but one worth making for companies striving to master a still-evolving landscape.

This article was originally published in McKinsey Quartery, www.mckinseyquarterly.com. Copyright (c) [2013] McKinsey & Company. All rights reserved.

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Ahmedabad Management Association Ahmedabad Management Association (AMA) held its Annual Awards function in August. The Chief Guest, Dr. C. Rangarajan, Chairman, Economic Advisory Council to the Prime Minister presented the AMA - Metrochem Outstanding Manager (2012) award to Mr. Rajendraprasad Shah, CEO, Dahej SEZ Ltd.; AMA - Atlas Dyechem Outstanding Entrepreneur (2012) award to Mr. Sandeep P. Engineer, Managing Director, Astral Poly Technik Ltd.; AMA - ZydusCadila Marketing Man (2012) award to Mr. Ankit Chona, Managing Director, Havmor Ice Cream Limited; Anubhai Chimanlal - AMA Nagarikta Puraskar award to Mr. Naginbhai Shah, Founder, Dardionu Rahat Fund.

Mr. Sandeep P. Engineer, Managing Director, Astral Poly Technik Ltd. accepting the AMA-Atlas Dyechem Outstanding Entrepreneur (2012) award from Dr. C. Rangarajan

Baroda Management Association Round Table Conference

Baroda Management Association organised a Round Table Conference on Gujarat Power sector on the topic ‘Managing Surplus - Accessing Cheaper’ at Vadodara on 26th July. The chief guest on the occasion was Mr Saurabh Bhai Patel, Minister for

News from LMAs

Energy & Petrochemicals, Gujarat. The conference saw a participation of over 400, including representatives from industry, stake holders, large power consumers, suppliers, academicians, energy management professionals, auditors, solution providers and students. The participants brainstormed on the issue, suggested possible solutions and charted out the future road map.

Mr Saurabh Bhai Patel, Minister for Energy & Petrochemicals, Gujarat addressing the conference.

Empowering Women Series

Baroda Management Association organised the second season of Empowering Women Series (EWS2) which kicked o� with a programme by Ms Barkha Dutt, Group Editor, NDTV on the theme ‘Following Your Passion’. The programme saw a gathering of over 850. Ms Dutt was appreciative of the selected topic and shared her life journey on how she became a journalist from being a producer to a news anchor to a reporter to where she is today.

Speaking at the occasion she said, “Passion is something which does not let you sleep at night, which does not let you remain in action, which does not allow you to think but only act. Following one’s heart is the only true way of living and that will require personal sacri�ces and if we are prepared to

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give those sacri�ces only then can we truly be true to ourselves and to the call of our heart.”

Ms. Barkha Dutt addressing the audience.

Bharuch District Management Association CEO Think Tank Forum

Mr. Makarand Dixit, Head, Marketing, ONGC Petro additions Limited (OPaL), Vadodra being presented a memento by Past President and Core Committee Member - BDMA, Mr. Kamlesh Udani as Gp. Capt. A.G. Chitre (Retd.), Vice President, BDMA & Chairperson, CEO, Think Tank Forum looks on.

Bharuch District Management Association (BDMA) organised the CEO Think Tank Forum on 23rd August under the leadership of the newly appointed

Chairperson of CEO Forum, Gp. Capt. A.G. Chitre (Retd.). Mr. Makarand Dixit, Head, Marketing, ONGC Petro additions Limited (OPaL), Vadodra was the Guest Speaker who talked about their upcoming mega project at Dahej, Bharuch. The theme of his interaction was ‘OPaL – A Global Scale Petrochemicals Project & Opportunities due to this project’.

The unique feature about the CEO Forum meetings of BDMA is that the spouses are invited too, thereby making it a social event, followed by dinner. This is a unique opportunity for CEOs / Plant Heads/ COOs /CFOs of the district to network, exchange common concerns and gives them platform to interact with their peer-group in mutually bene�cial, semi-formal environment.

Management Development Programme

Ms. Avi Sabavala conducting the MDP on ‘Presentation Skills‘.

A full-day open-house Management Development Programme was organised on 6th August whereby Institutional/Corporate members of BDMA sent their nominations. It was a well-attended programme and this topic has found many takers among the corporates of the district. This has resulted in BDMA conducting In-company programmes for a few Institutes.

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Bhubaneswar Metropolis Management Association Bhubaneswar Metropolis Management Association recently organised a seminar on ‘Audit governance in corporate & public sector’. The seminar was addressed by Mr. Amar Patnaik, IA & AS Accountant General (Audit), Odisha and presided over by BMMA Past President Mr. S.C. Hota IAS (Retd.). Mr. Syed Maqbool Ali, Working President, BMMA delivered the welcome address and the chief speaker on the occasion was Prof. Gopal Nayak, Vice President. The vote of thanks was given by Prof. W. William, Treasurer. The programme was very well attended.

Participants at the Larsen and Toubro plant.

Bombay Management AssociationIndustrial Visits

Bombay Management Association (BMA) organised a couple of industrial visits during the period. An industrial visit to General Motors, Talegaon was organised on 31st July where Mr. Vikas Shirodkar, VP, HR, General Motors gave a presentation and interacted with the participants. A visit to Larsen and Toubro, Powai was organised on 13th August. A group of 28 participants visited the Powai Plant

where senior executives of the plant interacted with the members followed by a visit to the plant.

Participants at the Larsen and Toubro plant.

Workshops

Dr. Vipul Vyas with the workshop participants.

BMA organised a one day workshop on ‘Negotiation and Risk Management’ on 1st August at the BMA Secretariat. The workshop was conducted by Mr. Ashok Sharma, Training & Coaching Professional Consultant and Past President of BMA.

Another workshop on ‘Expanding Emotional Intelligence’ was organised on 7th August whichwas led by Dr. Vipul Vyas, Corporate HR Facilitator.

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Movie Discussion

A movie based discussion on the movie ‘127 Hours’ was held on 2nd August. This movie is an uplifting true story of one man’s struggle to survive against mountainous odds. The participants were encouraged by the movie.

Book Launch

BMA in collaboration with Kitab Khana launched two books during the period. A book on ‘Innovation Secrets of Indian CEOs’ by Ms. Rekha Shetty was launched on 31st July. Another book launch of the book on ‘Kindle Life’ by Swami Mitrananda was held on 23rd August. Mr. Bhaskar Joshi gave the welcome address followed by book reading and discussion by Swami Mitrananda.

Mr. Bhaskar Joshi and Mr. V Sarangapani with Ms. Rekha Shetty and other participants.

Calcutta Management Association Calcutta Management Association organised a Leadership Lecture by Dr. D N Ghosh, former chairman, State Bank of India on 7th August at the Army Institute of Management, Kolkata. Dr. Ghosh spoke on ‘Business Leadership & Ethical Issues’. The lecture session was well attended and very well appreciated.

Dr. D N Ghosh, former Chairman, State Bank of India, delivering the lecture.

Chandigarh Management Association Chandigarh Management Association organised a lecture on ‘Self Management’ by Mr Rakesh Bhan, Chief Manager & Technical O�cer, State Bank of India at Chandigarh on 24th August. This lecture was

Mr. A K Gandhi, President, CMA welcoming Mr. Rakesh Bhan, Chief Manager & Technical Officer, State Bank of India.

presided over by the Guest of Honour, Prof. Satish Kapoor, Former Chairman of UBS and Past President, CMA. The present UBS Chairman, Prof. A K Vashisht also attended the seminar. The lecture revolved

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around time management, work management to ultimately manage life. The lecture was largely attended by the industry, trade, professionals and academia including the students from Chandigarh University.

Delhi Management Association Workshop on Awakening for Achievement

A workshop on ‘Awakening for Achievement’ was conducted on 2nd August at India Habitat Centre, New Delhi. Dr. Samidha Pandey, Consultant Psychologist was the workshop facilitator. Dr. Pandey discussed the Seven Chakras in the Human Body,

Dr. Samidha Pandey, Dr. Aquil Busrai and Mr. Rajan Pandhi.

How to overcome negativity, factors pertaining to personal growth, personality assessment, spiritual intelligence etc. She shared that an individual needs to identify the thoughts, explore and restructure them; focus on spiritual and meditating issues; know and understand oneself; stop negative self-talk and learn how to reduce, prevent and cope with stress.

Dr. Aquil Busrai, Past President, DMA and CEO, Aquil Busrai Consulting was the Chief Guest at the workshop. The thoughts and ideas he shared with the participants, were a re�ection of his deep commitment to ethical norms to achieve individual holistic success and organisational

growth. Thereafter, the participants interacted with the faculty wherein they were free to discuss their problems and other issues concerning their lives.

Guwahati Management AssociationBest Manager Competition

Guwahati Management Association organised the North East Regional Competition of Best Managers Competition-2013, under the umbrella of AIMA, on 10th August at Guwahati. 26 managers of corporate houses took part in the competition. Prof. Dr. Anil Kumar Goswami, Former Principal of Cotton College, and renowned scientist; Major General (Retd.), Dr. Purnananda, renowned Neuro Psychiatrist; Prof. (Dr.) Sangeeta Tripathi, Dean (Academic & Administration of NERIM) and Er. Birinchi Kumar Sarmah, Former Executive Director OIL (AOD) were

The jury panel.

on the jury panel. The panel selected six managers for the award and the award presentation ceremony will be held on 20th September. The valedictory function was presided by Mr. Digen Boruah, President of GMA, Mr P. K. Barthakur, Vice-President and Chairman, Organising Committee gave the valedictory speech and Mr H. Talukdar, Director & Co-Chairman o�ered the vote of thanks.

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Monthly Meeting

The Panel at the meeting

Guwahati Management Association (GMA) organised a lecture cum interaction session on the theme ‘Industrial Development Scenario in Assam-Role of Department , Government of Assam’ on 5th August. Mr. Rajesh Prasad, IAS, Commissioner Industries & Managing Director, AIDC, delivered the keynote address on the theme. Mr. Deepok Chakravorty, Managing Director, Numaligarh Re�nery, spoke about Energy & Oil scenario in India in general and Assam in particular. Mr. R. T. Jindal, IAS, Principal Secretary, Industries Assam, was the Chief Guest of the function and interacted with the audience on industry matters. Mr. D. N. Barua, President, GMA presided over the function which was attended by over 70 participants.

Hyderabad Management AssociationLecture Meeting

Hyderabad Management Association (HMA) held a Lecture Meeting on ‘Successful Ageing with Active & Healthy Life’ by Dr. Mangadhara Madineedi, Asst Professor, Geriatrics Medicine and Extended Care, Harvard Medical School, Boston, USA on 22nd August

at Hyderabad. The lecture was well appreciated by all.

Dr. Mangadhara Madineedi addressing the Lecture Meeting on ‘Successful Ageing with Active & Healthy Life‘.

Student Development Programme

HMA also organised a Student Development Programme on ‘Think Big, Start Small’ by Ms. Vinita Surana, Vice President, Surana Ventures Ltd. on 23rd August at the School of Management Studies, Hyderabad. The programme was well received by all the students.

Training Programme

Dr. BV Pattabhiram, Psychologist & Corporate Trainer interacting with the participants of the training programme on ‘Stress Management .

A one day Training Programme on ‘Stress Management’ by eminent Psychologist & Corporate

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Trainer, Dr. B V Pattabhiram was organised on 24th August at Hyderabad.

Kerala Management AssociationCurtain Raiser Event

Kerala Management Association (KMA) held a Curtain Raiser Event of KMA Activities for the year 2013-14 on 3rd August at Cochin. Prof. K.V. Thomas, Minister of State for Consumer A�airs, Food & Public Distribution was the Chief Guest and addressed KMA Members on ‘Management of Public Distribution System in India’. Mr. Paul Antony IAS, Chairman, Cochin Port Trust was the Guest of Honour. Mr. S. Rajmohan Nair, President, KMA delivered the

Mr. K.V. Thomas, Minister of State for Consumer Affairs, Food & Public Distribution addressing KMA members at the Curtain Raiser Event.

welcome address and introduced the guests and Mr. Jibu Paul, Honorary Secretary, KMA proposed the vote of thanks.

Evening Meeting

KMA organised an Evening Lecture Meeting on ‘Make Over for Kochi City’ by Mr. Elias George IAS, Managing Director, Kochi Metro Rail Ltd. on 13th August at Management House.

Mr. Elias George, Managing Director, Kochi Metro Rail Ltd. addressing the audience.

Open Forum Meeting

The �rst Open Forum Meeting on ‘Entrepreneurship Development – The Challenges, Potential and

Dr. V. Mohan Das addressing KMA Members at the Open Forum Meeting.

Opportunities’ by Dr. V. Mohandas, Entrepreneurship Development Trainer was held on 21st August at Management House.

Lucknow Management AssociationLucknow Management Association in collaboration with AIMA organised the AIMA-LMA Shaping Young Minds Programme on 30th August at Lucknow. The programme was attended by a large number of

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students and young professionals from the region. The SYMP was addressed by Gen VP Malik, Former Chief of Indian Army; Mr Raghunath Medge & Mr Gangaram Talekar, Nutan Mumbai Ti�n Box (The Dabbawala’s); Mr Rajiv Pratap Rudy, Member of Parliament and Ms Sindhuja Rajaraman, India’s Youngest Chief Executive O�cer (CEO) & Head of Seppan, a Chennai based animation �rm.

Gangaram Talekar, Nutan Mumbai Tiffin Box (The Dabbawala’s) addressing the audience

Ludhiana Management Association Lecture Session

Gen. VP Malik addressing the gathering.

Ludhiana Management Association organised a lecture cum discussion on 27th August in Ludhiana.

General V.P. Malik, Former Chief of Army Sta�, India was the guest speaker on the occasion. Gen. Malik spoke at length on ‘India - China - Pakistan: Security Issues Today’. The programme was highly engaging and was followed by an interactive question and answer session. The lecture session was very well received and was attended by 235 members & dignitaries from di�erent �elds.

Contribution to Relief Fund

Ludhiana Management Association contributed Rupees Five lac to Prime Minister’s National Relief Fund for the victims of the Uttrakhand tragedy.

Trichur Management AssociationSeminar

Ms. MS Jaya, I.A.S, District Collector, Thrissur addressing the gathering

Trichur Management Assosciation conducted a seminar on ‘Role of Smart City for the Development of Kerala Economy’ on 30th August at Trichur. The seminar was presented by Mr. Gigo Joseph, Chief Executive O�cer, Smart City- Kochi. In the same meeting a reception was given to Ms. MS Jaya, I.A.S, District Collector, Thrissur. The president of TMA, Er. MR Gopala Krishnan presided over the function, and Dr V.M Xaviour Hon Secretary, TMA proposed the

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vote of thanks. The other speakers were CA (Dr) V. Venugopal, Mr V.P Nandakumar and Er. S Gopakumar.

Visakhapatnam Management AssociationInteractive Session

President VMA , Guest Speaker Dr.Demdu & Actg. Secretary VMA at interactive session with students of Institute of Chemical Engineering

Visakhapatnam Management Association (VMA) conducted an interactive session for the bene�t of the students of Institute of Chemical Engineers, Ministry of HRD, Government of India, Visakhapatnam on 12th August. The Principal and many students & members participated in the meeting.

The chosen topic was ‘India’s Competitiveness in the Global Scenario and Other Related Aspects’ for students. Dr MNKS Varma, President, VMA spoke on the subject and brie�y indicated about AIMAs pioneering work and contribution to the country, right from beginning and what all LMAs, including VMA are doing in the related �elds. He illustrated the global rankings of advanced countries vis-à-vis India and stressed the need for improvements. Principal, Dr Demudu mentioned that though, India made some progressive steps, other negative factors like population explosion, misgovernance and political equations are hindering the growth. Mr Deepak Chowdary, Secretary also touched related points and proposed the vote of thanks.

AIMA Digital PresenceAIMA initiated its social media presence over a year back. AIMA built properties on all major platforms-Facebook, Linkedln, Twitter, YouTube and even launched an exclusive AIMA Blog site. Today the individual following on each platform is: Facebook-31907; Twitter- 702; Linkedln – 833; YouTube – 1500 (views); AIMA Blog- 900 (visits per month). This results in a collective reach of over 60 lakhs. To follow us click on the icons below :

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AIMA Events CalendarEvent Conference Director Venue Date

40th National Management Convention

Covention ChairmanSanjiv GoenkaChairman,RP-Sanjiv GoenkaGroup

New Delhi 26 – 27 September 2013

10th National Competition for Management Students

MumbaiBengaluruKolkataNew DelhiGrand Finalein New Delhi

20-21 September 201320-21 September 201323-24 September 201330 Sept–1 Oct 20135 October 2013

17th Student Management Games (SMG -2013)

NorthBannariErodeCoimbatorePuneOnlineUdaipurHyderabad

17-19 September 201324-25 September 201326-27 September 201330 Sep & 01 Oct 201303-04 October 201307-08 October 201317-19 October 201328 Oct-01 Nov 2013

SYMP Goa 4 October 2013

Young Leadership Retreat Shivinder M SinghExecutive ViceChairman, FortisHealthcare&Vineet AggarwalJt. Managing Director,Transport Corporationof India

Goa 4 – 6 October 2013

MSME Workshop - "Pathway to Business Success: A Way Forward"

Dr J S Juneja Indore 24 October 2013

3rd PSU Summit Sudhir VasudevaChairman &Managing Director,Oil and Natural GasCorporation Ltd

Delhi 25 October 2013

Session with Jack Trout Jack Trout, PresidentTrout & Partners

New Delhi 13 November 2013

AIMA | AIMA EVENTS CALENDAR | AUGUST 2013

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To view full calendar please visit www.aima.in

aimanews@aima.inFor any feedback, suggestions or advertising queries please write to,

Published and released by AIMA Corporate Communications.also follow us on

Event Conference Director Venue Date

National Management Quiz SouthEastWestNorthGrand Finale

05 December 201314 December 201319 December 201321 December 201321 December 2013

Women in Leadership Summit New Delhi 21 November 2013

Senior Leadership Retreat Anil Sachdev Founder & CEO School of Inspired Leadership (SOIL) and B Muthuraman Chairman, Tata International Ltd. Vice Chairman, Tata Steel Ltd

Goa 13-15 December 2013

Conference on Corporate Governance

New Delhi 13 December 2013

HRM Summit Mr. Yogi Sriram Senior Vice President, Corporate HR, Larsen & Toubro

New Delhi 29-30 January 2014

Brand Summit Meera Harish Vice President, Sales & Marketing, Global & India Biz, Tata Coffee Ltd.

New Delhi 05 February 2014

Foundation Day and National Management Day

New Delhi 21 February 2014

Opportunity to interact with ace business minds and academicians, affiliation to Local Management Associations, election to the AIMA Council of Management, unlimited access to library, concessional rates for management development programs... the benefits just keep adding on. In short, a management package that makes hundred percent business sense. Not surprisingly, till date are over 3000 institutional and 30,000 individual members enjoying the advantages of an AIMA membership.

Online registration also available. Please visit www.aima.in

Opportunity to interact with ace business minds and academicians, affiliation to Local Management Associations, election to the AIMA Council of Management, unlimited access to library, concessional rates for management development programs... the benefits just keep adding on. In short, a management package that makes hundred percent business sense. Not surprisingly, till date are over 3000 institutional and 30,000 individual members enjoying the advantages of an AIMA membership.

Online registration also available. Please visit www.aima.in

All India Management Association Management House, 14 Institutional Area, Lodhi Road, New Delhi-110003

Tel.: 011-24645100, 43128100 ; Fax: 011-24626689, Website: www.aima.in