Research Paper On “Innovate, Restructure, Reorganize: Challenges for India Inc.

Subtheme:

five Innovative Information

ways

to sustain-

Talent

Management,

Literacy,

Knowledge

Management, Proximity Marketing and Social Media

By- Mradul Raj Pachouri IBS Pune Email Address: mradulraj1234@gmail.com Phone num: 09373509229 Garima Gupta IBS Pune Email Address: garimagpt378@gmail.com Phone num: 09595504311

Innovate, Restructure, Reorganize: Challenges for India Inc.

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 „People‟ who 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 someone‟s success dumps others‟ efforts. Success is relative; 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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Innovate, Restructure, Reorganize: Challenges for India Inc.

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 of economic „ 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 solution to 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 analyz e 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 select ing the best information for one‟s 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.

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Innovate, Restructure, Reorganize: Challenges for India Inc.

Full Paper

I

ndia 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 slips 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. An iconoclastic 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 are traditionally 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 something which 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-Mart‟s Supply chain management system, Dell‟s online business model, Apple‟s IPod, Toyota‟s Futuristic cars are few very good examples of how to renovate any Business Model by
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Innovate, Restructure, Reorganize: Challenges for India Inc.

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. Let‟ s 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 critical role 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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Innovate, Restructure, Reorganize: Challenges for India Inc.

Knowledge Management and Information Literacy – Key to Success

SCONUL S EVEN PILLARS MODEL FOR INFORMATION LITERACY Society of college, Nati onal and Uni versity Li braries

Information Literacy and Knowledge management are demand of today‟s 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 for solving any problem. In many Indian companies, employees are so unaware that they don‟t know that they are literally sitting on the pile of information and due to lack of awareness they can‟t 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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Innovate, Restructure, Reorganize: Challenges for India Inc.

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 experiences but 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 ways –Proximity 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 quite inflexible 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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Innovate, Restructure, Reorganize: Challenges for India Inc.

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 disadvantage that 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
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Innovate, Restructure, Reorganize: Challenges for India Inc.

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 Convergent Communications, which is a Pioneer company 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 Medi a Marketing and PR Benchmark Survey 2008 Methodol ogy: Fiel ded 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, Senior Director, HRD, Dr Reddy‟s 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 Reddy‟s 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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Innovate, Restructure, Reorganize: Challenges for India Inc.

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 USP for 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 its device. 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 other‟s comment by re ading 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 cannot consider 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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Innovate, Restructure, Reorganize: Challenges for India Inc.

References
1. 2. 3. 4. Philip Kotler: Marketing Management (13th edition) http://www.informationliteracy.org.uk/ http://hbr.harvardbusiness.org/ 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=link5 7. http://www.steveshapiro.com/2008/11/20/the- innovators-dilemma-and-the- us-economy/ 8. http://completeinnovator.com/2008/11/20/the- innovator‟s- guide-to-a-galaxy-in-recession/ 9. http://www.innosight.com/blog/251- financial-pressure-and-disruption.html 10. http://www.customerthink.com/blog/customer_driven_innovation_beat_recession 11. http://images.ientrymail.com/webpronews/article_pics/social- media-chart.jpg 12. http://www.marketingsherpa.com/

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