Research Paper on Innovate, Restructure, Reorganise - By Mradul & Garima

7/28/2019 Research Paper on Innovate, Restructure, Reorganise - By Mradul & Garima

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Research PaperOn

Innovate, Restructure,

Reorganize: Challenges for India

Inc.

Subtheme: five Innovative ways to sustain- TalentManagement, Information Literacy, Knowledge

Management, Proximity Marketing and Social Media

By- Mradul Raj Pachouri

IBS Pune

Email Address:[email protected]

Phone num: 09373509229

Garima Gupta

IBS Pune

Email Address:[email protected]

Phone num: 09595504311
mailto:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]:[email protected]


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Innovate, Restructure, Reorganize: Challenges for India Inc.

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Abstract

Nations, like stars, are entitled to eclipse. All is well, provided the light Returns and the

eclipse does not become endless night- Victor Hugo

Change or die, is the mantra for this fast moving, volatile and revolutionary era.

Customer is not the king anymore; he is turned into the god today. Better, faster,

cheaper is something that this god is asking from all the amazing people who share

the passion for solving complex problems and for turning innovative ideas into

realities. It is Peoplewho are at the back of every new success and innovation. No

machine can think for a new idea, its people, their thinking ability and their willingness

that create wonders. Everyday someones success dumps others efforts. Success isrelative; your first mover advantage can be cancelled by an aggressive and smart

strategic move by your competitor or vice versa. For Survival; innovation, renovation

and realignment of scarce resources are of paramount importance which should be

dealt nicely and wisely. This is the Plug and Play era where citizens of different

countries have turned Netizens. There is no place for people who seek standard

solutions as problems are unprecedented in nature, and hence solutions should also be

in the same form. This Paper will try to uncover and unveil the critical role of Talent

Management for success or failure of any organization. Paper also tries to highlight

the importance of Knowledge Management Platform in organizations and Information

Literacy skills, which should be created on incremental Basis. This paper will throw

light on some innovative strategies like Proximity Marketing as well as Social Media

Marketing; if adopted properly that can create a better value for customers as well as

fortune for the various Indian organization.

Keywords: Innovation, Renovation, Reorganize, Talent Management, Knowledge

Management and Information literacy, Social Media and Proximity Marketing.


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Literature Review

Since the last few decades, Innovation, Renovation and Restructuring of the

organization are few of the hottest topics for many researchers, countries, and

organizations. Especially in Period ofeconomic Meltdown also known as: Downturn,Recession, and Depression. If we look critically, the roots go back to the great

depression (1930) when the entire western part of the world was suffering from

economic Meltdown. The Great Depression originated in the United States; historians

most often mark the stock market crash of October 29, 1929, as the beginning of great

depression, which is also known as Black Tuesday. Researchers like Timothy M. Koller

and Zane D.Williams (2003) in their Paper Anatomy of the bear Market also tried to

analyze The Internet Bubble Burst in Information Technology and Telecom Sector,

which occurred in 2002 and have tried to show that how innovation is the only solutionto resolve problems created by downturn and economic meltdown. Tom Nicholas

(2008), an Associate Professor at The Harvard Business School in his paper Innovation

from the 1930s tried to analyze the term innovation with reference to The Great

Depression (1930); He has tried to bring out the similarity and has tried to relate: The

Great Depression (1930) with the recent turmoil that we are facing. His paper compared

the patents growth cycle in U.S. Market over the period of fifteen years (1928-1943).

The paper also through light on how innovators like DuPont, Hewlett-Packard and

Polaroid has evolved as success stories.

There are forums like World Economic Forum on Latin America (2008), it has

published a very rich and valuable research report on Economic Situation, Trends and

Innovation. This Report says that Essence of Management lays in oneself that how

much one wants to transform; learn; how motivated one is and how intelligent one is in

selecting the best information for ones own purpose.

Further researches were done by Chuck Frey and Renee Hopkins Callahan (2008); these

researchers came up with Innovative strategies for the Global Recession. They have

done a good analysis of all the Blogs of interviews of all the Famous Management

Personality and Suggested few strategies like Customer driven approach, waste

minimization and Product Portfolio Management.
http://en.wikipedia.org/wiki/United_Stateshttp://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/Wall_Street_Crash_of_1929http://en.wikipedia.org/wiki/United_States


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Full Paper

India Inc. may not go for salary hikes in 2009: Survey (Business Standard, Dec 18,2008, New Delhi). When I saw this line, I started shivering. As a management

Professional or even as a common man it was a bad news. India, where people struggle

day and night, not only to earn their bread and butter but also to fulfill their dreams.

Here we can see the effect of recession in one or the other way, either in the form of

pink s lips or in the form of heavy losses in this volatile market. In this scenario, when

whole world is stirred up due to recession, everything else looks like a bad nightmare.

But still life moves on, hard times makes us more intelligent, it is like a challenge which

Indian Inc. is trying to take as an opportunity, where only the best will survive and the

rest will die. Best are the ones which are ready to Innovate, Adapt, Realign their

processes; empower their people and the ones updating their technology and skill set as

per the demand of the present times. Innovation, a very commonly used word, means

an uncommon sense which is very much important for this recessive world.

The world has changed significantly because of deregulation, lowering of trade barriers,rapid technological advancements, demographic shifts, and greater urbanization, so the

strategies that worked a decade ago are unlikely to do the same anymore. Aniconoclastic approach is needed where everyday company should try to build upon their

strengths by exploring new prospects, by Incremental learning and on the same time

working upon all the weaknesses. In developing country like India, consumers aretraditionally value conscious and for providing that value, an organization should be

faster in developing and introducing highly value driven products, implementing

strategies and responding to the changing customer needs. Innovation is somethingwhich is required at each and every level of organizational hierarchy. Innovation is not

about an Idea generation, it is more than that. It has to be understood that merely having

ideas alone cannot leads to success. Any Business or Company cannot emerge

successful by having a warehouse of ideas alone. Wal-Marts Supply chain

management system, Dells online business model, Apples IPod, Toyotas Futuristic

cars are few very good examples of how to renovate any Business Model by


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Transforming innovative ideas into realities which is the toughest task for any

organization. It requires synchronized efforts of all resources of any organization i.e.

People, Process and Technology.

Lets try to explore some solutions for India Inc. which can solve the purpose of

beating recession if applied properly.

Talent Management

Every employee has some value associated in terms of his efficiency, honesty, loyalty,

and his skills. Every organization should try to associate that value tag so that it can

differentiate between its key employees and other employees. Organizations should try

to put efforts in retaining those key employees by proper communication and with the

help of timely motivation so that such highly talented people becomes the driving force

behind the real change to beat the recession. Human Resource Department has a criticalrole to play in recession, where they can show their value by eliminating the

unproductive or less productive employees while staying in their legal boundaries.

Generally when the word recession comes, the word recruitment dies . In good

times or say in economic boom, for acquiring the best talent you have to pay a premium

but in the time of recession organization can get the actual talent at cheaper cost, which

can create higher value for money. Recession is the best time when any organization

can work over and remove the organizational slack.

Japanese Culture like Nemawashi or decision by total involvement , should be

inculcated in every process and at every level so that every individual in the

organization not only tries to align themselves with organizational goal but on the same

time gives their best shot for making a change or innovation as workable option and

solution. Job rotation can be a good method by which we can foster the seeds of

innovation as we know overspecialization is not only reducing the capability to think

with holistic approach but on the same time, damping the prospect of new innovations

or transformations.


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Knowledge Management and Information Literacy Key to Success

SCONUL S EVEN PILLARS MODEL FOR INFORMATION LITERACY

Society of college, National and University Libraries

Information Literacy and Knowledge management are demand of todays critical times

where knowledge and information acts as a major and valuable resource to any

organization. Employees should be able to recognize that there is some or the other

change that is required: due to some problem or for increasing effectiveness of the

system. They should be competent enough to arrange the information required forsolving any problem. In many Indian companies, employees are so unaware that they

dont know that they are literally sitting on the pile of information and due to lack of

awareness they cant recognize, which is the most authentic source and how to use the

readily available information for deriving the real solution to unlock the

problem/opportunity. This is an era for knowledge workers where each and every


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problem is unique in nature; accordingly employee should be able to take wise

decisions, by using problem solving skills and information literacy. Knowledge sharing

is something which can solve many complex problems by achieving wisdom in the long

run. Informal groups, Blogging groups and other such activities which can increase

productivity should be appreciated where people can come on the same juncture and the

same platform to discuss problems more freely than ever. Consequently Knowledge

sharing should be promoted. We can easily see this concept effectively being used in

TATA group, where they have successfully reaped the benefits of knowledge

management. Management is all about a concept of goal congruence, the importance of

knowledge management can be ascertained by quoting a beautiful example: exchanging

a rupee with another individual will leave both the people with 1 rupee but with the

exchange of one idea in lieu of another will end us up with two ideas, which can further

create a new masterpiece solution to any problem. Tata Group understood the need for

knowledge management so their employees are not only learning from their experiencesbut are also learning from others mistakes as well as accomplishment.

COP (community of practices) is also a new concept that all the smart organizations

are applying nowadays. Members on the community share their past failure and success

experience that makes other employees acquainted with the idea of what to do and

what not to do for achieving any goal. Indian Organizations should try to develop more

learning-friendly environment where their human resource can be exposed to explicit as

well as tacit knowledge. Information technology has made everything possible.

Innovative Promotional waysProximity Marketing and Social Media

In the times of recession, Companies try to create barriers for all the outflow of money

and then seeks for inflow of the same. These barriers sometimes become hurdles in the

achieving better inflows also. Promotion budget is reduced substantially which leads to

fading of the brand image of the organization as well as of the offerings in the mind of

all internal and external customers. This is a very critical issue, promotion should be

done on regular basis which in turn reinforces the top line sales but on the same time it

should be effective enough to achieve the bottom line that is profit. Indian companies

have been using different marketing methods like printing ads in newspapers, sending

mails, in-store promotion. These Traditional Promotion techniques are generally quiteinflexible or costly. In the mobile and fast-changing world, advertisers have to keep up

with the trends. If potential customers are busy people with an active life, they are


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unlikely to spend hours in front of the TV. Technology makes it possible for the

companies to reach out to them through every possible means.

Proximity Marketing is an example of innovative marketing technique with almost

insignificant cost.

Sources:http://www.icefactor.com/images/ICE%20DIAGRAM%20VIA%20BLUETOOTH.gif

http://www.mobiletechnologyblog.com/wp-content/2009/02/bluetooth-marketing.gif

With an ultimate aim to reach the target audience and to ensure that they get what they

actually want, Marketers are using the latest technology known as Proximity

marketing. We can define it as a localized wireless distribution based on Bluetooth

arrangement that has the potential to distribute any message or advertisement content

within a particular geographic area. These messages or advertisements can be received

by anyone who wishes to receive them, in the particular location with compatible

mobile phone with blue tooth feature in it. This technique is not only an effective means

of promoting your Organization, your product / service offerings but on the same time,

it can also make your customers feel that you and your company cares for them. By

providing personalized messages such as text message, video clips, audio file and

Pictures, which adds flexibility to the Promotion. In India, SMS has the disadvantagethat it cannot include picture unlike MMS which is a costly way, on the same time all

networks and mobiles do not support it.

Few intelligent Indian companies have also started relying on this concept which makes

their marketing efforts more cost effective in reaching to the actual target market.

Proximity marketing can easily initialize Viral Marketing, once the ad reaches to the
http://www.icefactor.com/images/ICE%20DIAGRAM%20VIA%20BLUETOOTH.gifhttp://www.icefactor.com/images/ICE%20DIAGRAM%20VIA%20BLUETOOTH.gifhttp://www.icefactor.com/images/ICE%20DIAGRAM%20VIA%20BLUETOOTH.gifhttp://www.mobiletechnologyblog.com/wp-content/2009/02/bluetooth-marketing.gifhttp://www.mobiletechnologyblog.com/wp-content/2009/02/bluetooth-marketing.gifhttp://www.mobiletechnologyblog.com/wp-content/2009/02/bluetooth-marketing.gifhttp://www.icefactor.com/images/ICE%20DIAGRAM%20VIA%20BLUETOOTH.gif


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customer on his mobile, he/she can forward a business message to other person who can

be prospective customers. For an instance: Bangalore based TELiBrahma ConvergentCommunications, which is a Pioneercompany in the field of proximity marketing has

provided its valuable services to many big names like Nokia, ICICI Bank, ITC, and

Britannia. The company was recognized as one of the top innovators in India by

Nasscom.

Facebook, Twitter, Linkedln and Orkut can act as strong platform where Indian

companies can invest in order to reach out to the customers, employees and partners.

According to a survey done by MarketingSherpa on effectiveness of Social Media, it is

an innovation which can help Companies survive in this Recessive Market by deriving

higher value for money for the companies.

Source: MarketingSherpa Social Media Marketing and PR Benchmark Survey 2008

Methodology: Fielded Dec 4-10, 2008 N=1886

Social Media can be used for reaching out to existing and future consumers, finding

and hiring talent, Managing and monitoring corporate image and contacting peers for

career development. India has one of the largest internet population in the world around

60 million regular users, that is the main reason why Indian companies have started

leveraging on informal social networks to engage people, mollify customers, strengthen

their brands and even hire people.

Kaushik Ray, SeniorDirector, HRD, Dr Reddys Lab, an alumnus of XLRI Jameshdpur

got an invitation to join the Linkedln network of his fellow XLRI alumnus Prabir Jha

who happened to be Senior VP and Global Chief of HR, Dr Reddys Labs. The two

started exchanging messages over this site and within five months after the two

connected over Linkedln, Ray Found himself working with Jha. Now see the cost

involved in recruiting a talent like Kaushik Ray. That is almost Zero. There are many


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examples of such recruitments these days but very few Indian companies are using this

Innovative platform for creating value for themselves and their beloved customers.

These social media platform are also acting as a funding platform where Venture

capitalists are there to support Innovative Business Models. Employees can create

Formal and informal relationship to strengthen their network which can work as USPfor any Employee as well as his company.

Maruti Suzuki Pioneer was a pioneer in the digital marketing space, but around 2007 it

started using social media. Recently for launching Ritz, blogs and social media were

used heavily which enabled Maruti Suzuki to target large member groups both official

and non official members on Orkut and Facebook.

Even Nokia has used social media for promoting its new E-series and N-series specially

its E75 device. Nokia created accounts on Orkut, Twitter and Facebook to promote itsdevice. In addition to this, the company also set up a shoutbox where people could

write their comments and send queries to it, which would then be answered by experts.

Indian People have started using net for getting information about the product /service

they are planning to buy, major players in the market, their offerings and by analyzing

others comment by reading blogs and bulletin boards. Social Media also have the same

challenges like Proximity Marketing. Privacy is always a matter of concern whenever

any company goes for Social Media and Proximity Marketing. Especially For a

company like Wipro which is also involved in business to business interactions cannotconsider Social Media as an ideal platform for such interactions. So these are few issues

that should be resolved in proper manner so that more and more Indian companies can

come and use these resources in creating the wealth and value.

Conclusion:

Innovation is an ongoing process which should be imbibed in the DNA of every Indian

Company. Value of a process is significant and is connected with total effectiveness of

company. Indian Companies should try to involve a risk taking culture which supports

innovations and innovative Resources.

In recessionary times the Indian Companies needs to realize that Innovative Marketing

is the need of the hour coupled with technological and process innovations, because

when the horizon extends from quarter to quarter it is better to adapt and Restructure

Business model according to environment, minimize cost and be a survivor in the short

term to ascertain market sustenance in the long run.


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References

1. Philip Kotler: Marketing Management (13th edition)2. http://www.informationliteracy.org.uk/3. http://hbr.harvardbusiness.org/4. http://www.mckinseyquarterly.com/Strategy/Innovation/Innovation_lessons_from_the_1930s_

2266?gp=1

5. http://www.mckinseyquarterly.com/Anatomy_of_a_bear_market_1267#6. http://www.businessweek.com/innovate/content/oct2008/id20081027_851140.htm?link_positi

on=link57. http://www.steveshapiro.com/2008/11/20/the-innovators-dilemma-and-the-us-economy/8. http://completeinnovator.com/2008/11/20/the-innovators-guide-to-a-galaxy-in-recession/ 9. http://www.innosight.com/blog/251-financial-pressure-and-disruption.html10.http://www.customerthink.com/blog/customer_driven_innovation_beat_recession11.http://images.ientrymail.com/webpronews/article_pics/social-media-chart.jpg12.http://www.marketingsherpa.com/
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Research Paper on Innovate, Restructure, Reorganise - By Mradul & Garima