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never a trading or money-making mentality, but of wanting to be recognized in our field and to establish a corporation. We did things never tried before in India. We wanted to prove that even with meager capital we could do bigger things.”...Sunil Bharti Mittal Story behind his name His parents (father Sat Paul Mittal, a bania, and mother, a khatri—Hindu castes) had an inter caste marriage, which created a brouhaha at that time, forcing them to adopt the surname Bharti. Sunil Bharti reclaimed the surname Mittal much later in life. The Journey Mr. Mittal started his first business in 1976 at the age of 18, with an investment of Rs 20,000 borrowed from his father. His first business was to make crankshafts for local bicycle manufacturers. In 1980 he sold his bicycle parts and yarn factories and moved to Mumbai. Later, in 1982 he became the exclusive dealer for Suzuki Motors's portable electric power generators imported from Japan. His business was running smoothly but later on the government banned the import of generators as two Indian companies were awarded licenses to manufacture generators locally. Then in 1986, Sunil Bharti Mittal incorporated Bharti Telecom Limited (BTL) and entered into a technical tie up with Siemens AG of Germany for manufacturing of electronic push button phones. Gradually he expanded his business and by early 1990s, Sunil Mittal was making fax machines, cordless phones and other telecom gear. In 1995, Sunil Mittal founded Bharti Cellular Limited (BCL) to offer cellular services under the brand name AirTel. Soon, Bharti became the first telecom company to cross the 2 million mobile subscriber mark. In 2001, BCL entered into a joint venture with Singapore Telecom International for a $650-million submarine cable project, India's first ever undersea cable link connecting Chennai in India and Singapore. Always enthusiastic and brimming with ideas, Mittal, has revolutionized India's mobile telephony and shown to the world the power of a market called "India". Famous for his guts to take business risks, it's no wonder that accolades and awards have followed Mittal in quick succession. In fact, he was chosen as one of the top entrepreneurs in the world in 2000 and was leveled amongst 'Stars of Asia' by 'Business Week'. Not only this, he received IT Man of the Year Award in 2002 from Dataquest and CEO of the Year, 2002 Award (World HRD Congress). He features in the Forbes 2007 list of world's billionaires at rank 69. Despite his hectic schedule, Mittal still remains quintessentially a simple, down-to-earth man who loves spending whatever time he could get, with his family. A man, for whom yoga is a great stress buster, Mittal's never-say-die attitude and his risk-taking abilities are sure to take him to new heights of glories.
ERP Implementation for Midsize companies – Necessary Expense or Strategic Investment?
Enterprise Resource Planning (ERP) has become quite an established term over last couple of decades. For most of us it means a tool that helps an organization run various functions of its day to day operations and also help drive strategic decisions. Evolution of ERP followed the general evolutionary trend of Information Technology (IT). Long ago organizations worldwide started realizing how adoption of an ERP system makes some of them distinctly competitive and others an exact opposite. On the other hand ERP product development over last three decades has ensured that ERP products are not just a competitive differentiator for large companies, but a critical enabler for midsize companies as well. For every midsize company, not enabling itself with a good ERP system today is like trying to conduct business without using basic technological tools like emails. To clarify for the uninitiated, Enterprise Resource Planning (ERP) is an integrated system which facilitates the required collaborative effort for various departments of an organization such as marketing, sales, production, quality management, materials management, logistics, financial accounting and financial control. At the very basic level, integration of such a system helps in ensuring accuracy of information, productivity, efficiency, scalability and above all reliability. This system unleashes possibility of implementing management practices that make one organization fundamentally different from another. BASICS OF GUARANTEEING A RETURN ON THE INVESTMENT Not every collection of features is an ERP product: ERP is a software product. ERP product market has evolved over last two decades to have clear market leaders and a host of other products. Choosing the right product is very basic to ensuring that one gets highest return from the investment. Implementing an ERP system and fine tuning it to be a business enabler over a well defined roadmap requires that the product chosen by you does not exhaust itself as you go beyond operational execution and look to enable your strategic insight, competitive edges and USPs. Just as it is well understood today that developing a software system from scratch as your own ERP is a big waste of energy, choosing a product that covers 75% of your operational execution is as imprudent. Explosive growth and high returns come from your ERP system when you are able to take beyond operational execution and use for one of following: • • • • Operational Excellence Strategic Decision Making Competitive advantage Scalability Enabler
It’s important for the product that you choose as your ERP system to be able to enable all of the above over a period of time. Most immature ERP products exhaust themselves at the level of Operational Execution itself, and leave no scope for growing to subsequent steps of evolution. Implementing the Product well is as important as the product itself -Implementation is a crucial exercise in ensuring the success of an ERP initiative. Implementation process does not mean just setting up the transactional parameters and master data for a product so that it can function for a specific company. It’s a purely business driven exercise of bringing about a change and taking the organization along with it. It’s too elaborate a topic to address in a few paragraphs but just as a word of caution, like any other change initiative all the following are critical success factors – 1. Selection of a worthy partner who can bring definitiveness to your project in terms of time lines and ability to give you the best solution for your business 2. A clear solution strategy and implementation plan 3. Buy-in and support from company leadership 4. Buy-in on the solution features from all function leaders 5. Communication strategy for every section of ERP user 6. Commitment of right resources to the project 7. Single minded pursuit to finish the project on original schedule 8. A project control procedure that leaves no room for lack of accountability and has the ability to incentivize everyone involved WHERE DO YOU GET THE RETURN ON INVESTMENT FROM? • • Lower Cost of Operation – Higher productivity and efficiency leads to lower cost of operation across the organization. Higher Serviceability to Customers – A company that operated at 85% serviceability ratio to its customers can operate at 95% of serviceability as a result of collaborative efficiency between sales, production, quality check and logistics. This translates to 10% more revenue collection and proportionate profits year after year. Higher Throughput – Getting more out of your installed capacity could mean crores of saved capital investment. With a good ERP product and a well implemented solution one can optimize its production capacities and coordinate with sales to achieve higher throughput. Faster Inventory Turns – Most manufacturing companies have 70% of their cost in the raw material. Faster inventory turns means significantly lower amount of working capital and its cost. Lower Cost of Compliance – Accurate and demonstrable operational execution means higher statutory compliance. This translates into saving significant amount of money on ensuring compliance and management time. Control on intended inefficiency – As the organization grows, visibility and transparency is sacrificed. Trust based system leads to scope of mismanagement. A good ERP system brings a huge deterrent of audit trail and traceability into the system. This leads to crores of money saved over a period in material handling itself.
Dr. Mahesh Taneja, AVP Finance and Information Technology at Munjal Showa Ltd and a doctorate in Inventory Optimization says – “For a company that is past 50 Cr INR turnover, cost of the best ERP solution can be recovered from the material handling efficiency itself”. Apart from tangible benefits there are plenty of intangible benefits. Can we really think of implementing vendor evaluation or distributor management if we can’t measure a few key result areas accurately in real time. Can we possibly incentivize our dealer network if our marketing department’s vision of a rebate system cannot be automated through our ERP system. Is it going to be possible to sell to a OEM in Europe if our ERP system does not help us in tracing the component supplier in case our client had to unfortunately recall its product. What if my USP is fastest order-to-delivery, if I cannot make it happen through my ERP system. Can I ever ignore the fact that a core of well defined processes that is embedded into my ERP system can free my management to drive the company to a growth target in 4 years time that was otherwise to be achieved in 5 years time. The list of ROI elements goes on. On one hand ERP is as necessary to a business as an email system. On the other hand a good ERP system can be source of sustainable competitive advantage, higher profits and scalability. For an Indian manufacturer growing beyond about 50 crores INR turnover, having a good ERP solution is a must. The great news is that it is actually a wealth creator.
It forced telecom players to change their strategies and start innovating their business models. The start and the progress The most important and cost centric touch point for the telecom operators has been the Contact Centers. Telecom industry in this country has undergone many tumultuous transitions and experienced rapid changes in the business practices. cost reduction and the addition of revenue-generating services have become the top winning strategies. The focus on core competencies of the own organization and leveraging of others became top agenda for the telecom operators. most importantly. Product and Place. deep fluctuations in the rules of the game couldn’t dither the survival of the players. the Products included a variety of specially crafted recharges or the different values added services offered and the Place was meant for the network coverage and the availability of the products. Strategic outsourcing and partnerships and alliances (with the customer being at the center) were established as the cornerstones of the new competitive theme. The pricing and profits have been spiraling southwards and the break out of the price war doesn’t seem to be ebbing in near future. If Porter ever coined the term competitive advantage he always believed the same can be gained by adopting and embracing differentiators for the business. As in the case of all the nascent markets the differentiators for telecom operators were Price. The Price depicted usage charges. Analyzing the history of telecom operations in India one can easily conclude that the industry has been operating with infinite elasticity. But with passage of time and explosion in the subscriber base this model became inefficient due to lack of professional commitment. The easiest available option was to establish local level call centers with smaller volume of operations meant to cater the calls originating from the circle itself. lack of scalability and poor quality of services. Price. Telcos realized that their core competencies were sales and marketing of the services and supervision of the service delivery rather than managing the trivial affairs like payroll and . It all basically started with setting up of a small facility for receiving calls from customer with employees on rolls and space owned. but as the operations started getting wider and deeper the challenges to manage the inbound call flow became difficult. But the rapid changes in market dynamics and the hypercompetition has changed the differentiators. Small time entrepreneurs were asked to commit and the operations were ghost managed by the operators themselves. retains customers and also the touch points making the customer experience the levels of services offered by the operators have multiplied with the passage of time and changing levels of technology.The Changing Face of Contact Center Indian Telecom Operator’s Perspective “The only permanent thing in this world is change”. focus on costs alone. metamorphosis of the competitive landscape. Customer Service Excellence.the adage has stood the tests of time and couldn’t have stood truer for any other sector than telecom. Enough evidences are there that excellent service attracts and. Product and Place are passé as differentiators and Service remains the only sustainable differentiator.
Leveraging the economies of scope – The BPOs also provided an opportunity to realize different revenue streams like upselling (generating revenue from the callers at inbound call center by selling VAS services etc). limited manpower and scalability were hindering the service to the growing subscriber base. Telcos started to leverage this core competency of the Indian BPOs by forming strategic partnerships. Scalability. lack of competencies. Establishing command centers for optimizing resource utilization – The consolidation spree necessitated establishment of centralized command centers with aim of optimizing resource utilization at each of the contact centers. A specialized team.Defined SLAs and risk sharing with partners. The BPOs with hiring & training facilities and deep pockets were more capable of providing desired scalability to telcos cocktailed with high class professional competencies and commitment. call center technology and contact center operations. in a state of the art environment. This diffusion of knowledge and practices made the BPOs move closer to the much celebrated productivity frontier and become best in the class.Retaining customers is always cheaper than acquiring new ones Predictability. The need to outsource was further fueled by desire to attain.Gearing up for growth Increased Retention. . network management and maintenance. vendors and alliances The Indian BPOs were having advantages of learning curve from different world class operations supported and amalgamation of best practices from different global companies. working round the clock. Consolidate to leverage economies of scale – The scatter bed local contact centers with their own standalone and non-standard practices were posing hindrances in operations.Having predictable cost structures Accountability. The unification of the contact centers enabled the cutting of costs and benefits of economies of scale with one facility serving for 3-4 circles or more.accounting or even the other areas of strategic importance like information technology. The salient factors which assisted the telecom operators in making the choice were Management of heavy call volumes – The swelling call volumes at the contact centers. delivers the following benefits • • • • • Improved forecast accuracy Real time work load management Improvement in accessibility and service levels Business continuity and contingency management Optimized resource utilization This optimization will always have to balance the strike of the double edged sword of decreasing the costs and maintaining the Customer Satisfaction.
Establishing multiple channels for service delivery – The outsourcing of contact centers freed the resources of telcos to focus more on development of channels through which the customers could be served without agents. Types of Voice Self-Service . The telecom operators outsourced the entire contact center operations to 4-5 BPO corporations for managing the operations of the entire country. speech. The BPOs have developed capabilities of managing the business processes of varied types and have competencies to handle complex operations with higher standards of service delivery. of strategic partners they tied-up with and ensuring that the contact center sites got located conveniently at the non. Gaining from the core competencies of the BPOs – The contact centers are meant for providing uniform services to all the callers by adhering to the processes. What the future has in store? Voice Self-Service The contact centre is caught in the centre of the ‘Demand Delta’ the gap between customers’ increasing expectations and organization’s ability to deliver service. consistency and control. Transforming multiple standalone operations. email and internet channels. Voice Self-Service is a communication channel providing opportunities to balance cost control with customer service and to address the issue of demand delta. 3. universal customer access via telephone. 2. MoU (Minutes of Usage) and revenue contribution. The operators took a two-pronged approach of limiting the no. This approach was followed by the below mentioned strategies 1. For retention of the best customers the companies started the loyalty and the privileged customer programs which required better skilled contact center agents and superior management of processes.metro locations with regional language preferences to cut costs and manage attrition.Offering segmented service delivery – The hyper-competitive telecom market necessitates that the entire base of the customers be segmented into different buckets depending upon their AON (Age On Network). Developing and enabling a systematic process to make rapid adjustments to service delivery in order to ensure customer service excellence. The increased use of IVR (Interactive Voice Response). Providing unified. into a single virtual call center for maximum efficiency. Reducing the application integration backlog that slows down agents and makes them less productive. web and other non-voice channels of customer contact through customer education and influence was targeted. This could only be achieved by better systems for training and operations. to open less costly and more convenient interaction channels while preserving quality and consistency across all channels 4.
In terms of guidelines for the implementation of Voice Self-Service the telecom operators would need to: 1. Personality – “You’ve got to know it’s not a person” 3. customer experience may be the only way to differentiate the brand and create sustainable competitive advantage. hence giving better revenues. it can actually buckle its expenditures on marketing. Select situations where customers make repeat calls 2. Moreover. 4. From agent to expert The agent is becoming increasingly central to the delivery of customer experience within the contact centre. Pick applications where speed and convenience are particularly important 4. In terms of usability. Even a trivial problem or issue can translate into multitude of calls in a contact centre. with customers becoming more demanding and less satisfied with the contact centre experience. Fall out – Provide the option to ‘escape’ to a live agent 4. some key considerations that will have to be kept in mind: 1.The challenge would be effective implementation of the Voice Self Service because IVR should involve customer preferences without making the system too complex and slow to use while supporting the brand values of the organizations. 5. The word of mouth and referrals by the present customers cause a Snow-ball effect leading to an ever magnifying base of customers. Marketing: If an organization can create ‘raving fans’ or ‘apostles’. However. Speed of IVR – “Neither too slow and nor too fast” 2. Customer experience There are several compelling reasons for improving the customer experience: 1. Offer customers the choice of application. 2. the agent often gets caught in the management of contradictions as they try to balance the demands of the organization (increase efficiency) with the needs of the customer (get service). Reduce or eliminate ‘cost to failure’: The costs resulting from a poorly designed or implemented customer experience can be enormous. there are evidences galore that consumers are willing to pay a premium for a positive experience. Introduction by an education program 5. As we move into the future the call centre agent needs to become more . New technologies: New technologies such as the Internet and CRM. Test. 3. Strategic: The burgeoning competition and heavy regulation has commoditized the telecom services. are aiding in improved customer experiences. Identify areas where call numbers are large and for a specific purpose 3. test and re-test for usability with customers. In rapidly commoditizing markets. Customer retention: A customer receiving a better service and warm experience will always have a better retention probability.
high quality. experts themselves are responsible for maintaining and updating their working practices and knowledge. One model has evolved over the other with the passage of time and dynamism of the industry dealing with complexity. customer knowledge from the CRM and knowledge system. The rest of journey is going to be more tumultuous and full of challenges. These models are: • Mass Production – The Agent. A mass production contact center’s goal is to maximize throughput. locale. discipline. an expert. appropriateness and availability. based on their expertise. Another concept of virtualization is in nascent shape in the Indian context but with the passage of time the concept will be fully embraced by the industry and will gradually advance . control and quality produces three general types of contact centre model and contact centre employees. deliver uniformity and minimize costs. ultimately. The concept of Hub and Spoke model of contact center operations is catching the fancy of operators due to scalability and flexibility involved. rigorous process definition and employee compliance. Experts could be anyone in the organization with a particular expertise in a customer.than a transaction processor. and move into the role of an advisor and. • Networked Expert – The Expert. Unlike the previous two models. interaction skill. It is solely driven by productivity based KPIs for management of the operation and the goals of the business which often leads to behaviors that are detrimental to the customer experience (such as ‘call bouncing’) • Mass Customization – The Advisor. adding little value. Conclusion The evolution of the contact center for telecom operators have been a painful exercise and has already crossed several stages discussed in the paper. delivering value and customer satisfaction. product or service. They may work anywhere (and for anyone) but they will have customer queries routed to them intelligently. These experts do not necessarily reside in a traditional centralized contact centre – but could comprise a mixture of office based. It is based on centralized control. where work is monitored (to different extents) and knowledge is presented to agent at the appropriate moment in the workflow. Agents become advisors. Costs in this model are not managed through simply counting transactions and volumes of calls but by measuring and eliminating waste (and cost) through the identification of ‘cost of failure’ demand (characterized by measures such as FCR (First Contact Resolution). A ‘Mass Customization Model’ is characterized by high levels of employee autonomy and empowerment. personalized customer experiences using flexible processes. mobile and home based workers. Right now most of the contact centers are following the mass production model of operation wherein the agents are having higher burnouts and organizations are facing acute attrition and performance problems. High levels of first time resolution and customer satisfaction are the norm. The Demand Delta trade-off between cost. Mass customized contact centers aim to deliver effective.
Om works in the service delivery function of a leading telecom company in India. This journey of evolution is going to be further bolstered by advent of break-through technologies and management fundamentals. so the idea of utilizing the IVR and self-service is catching the attention and turning out to be a necessity. Ranchi and worked for Mahindra for a couple of years based at Pune. He has done PGDM in Operations Management from KJ Somaiya Institute of Management Studies and Research. He also holds a B.towards the mass customization model. Some telecom operators are pressing their BPO partners towards the concepts of FCR and analysis of nature of calls with the aid of CRM but this trend will take time to consolidate since the basic model being followed is still the mass production. .Tech in Metallurgy and Materials from National Institute of Foundry and Forge Technology. Mumbai. The costs of serving customers through agents is turning out to be prohibitive in scenarios of falling overall revenues and declining margins.
have also developed their own strategies and models for lending in this sector. the micro credit is characterized by self help groups (SHG) and NGOs. To obtain loans. Before moving ahead let us gain some insight on micro financing. Dr. microfinance is considered to be recession proof and in fact is booming like never before in these turbulent times. UTI etc. This led to timely repayment of the loans. HSBC.Microfinance – The Next Big Thing Out of Recession View Comments Written by Prashant Satyam. Bank gave credit to centre. Standard Chartered Bank. which in turn forwarded it to one or two members of each group. Because of isolation of rural India from global financial meltdown. This was because of one of the most pioneering principle of the system – mutual accountability. Such is the gaining popularity of micro finance industry that many commercial and multinational banks are increasingly starting their operations in this sector. These groups are promoted by NGOs who act as ‘centers’ as in the case of Gramin Bank. This system has worked wonders and Gramin bank has now over 1000 branches in every province of Bangladesh. Its lending system was peculiar but effective. ICICI.. Failure of repayment on part any borrower may lead to ineligibility to receive any further credit to the whole group. the loan recovery rate was as high as 98%. The concept of micro credit was visioned by the now Noble laureate. ABN AMRO. potential borrowers had to form a group of five. success of micro credit institutions sounds interesting. This loan was given to members without any collateral security. India In the backdrop of heavyweight multinational banks going bust. Gramin Bank concentrated on disbursing loans to poor and needy people from rural areas. In India. generally poor women forming a group. Hence the borrower is kept under constant pressure from his group members to repay the loan. MBA Student IBS Hyderabad. In spite of any collateral security. NABARD is the biggest institution in India which advances grants and loans to . He established “Gramin Bank” in 1976. SHG is an association of individuals. borrowing groups in 28000 villages. 12 lakh borrowers with over 90% being women. Mohammad Yunus of Bangladesh. HDFC. Many groups in a village were federated in a centre.
The government has also announced opening up of the external commercial borrowing (ECB) route for the micro finance institutions to allow cheaper foreign funds for the sector. Among the multinational banks. Starting a micro finance institution (MFI) has become easier with the government’s backing to the sector. Other private sector banks like HDFC (175 cr). This has led to many fresh graduates.these SHGs. Standard Chartered Bank (15 cr). . Mohammad Yunus “it’s (micro edit) an important tool to create self employment. as it shows laid off employees a way to stand up again on their own”.. but certainly has immense potential and as some consider it is ‘the next big thing’. (85 cr). laid off employees and social activists starting their own venture. In the words of Dr. and HSBC bank (12 cr) have also developed their own strategies and models for lending to the sector. This provides an immense potential to micro financing industry in India. Microfinance still reaches only about 10 to 12 % of the poor in the country. Sixty-seven percent of the population in the country has no bank accounts and 80% have never taken a loan from a formal source. Its importance has increased in the present scenario of economic downturn. UTI (100 cr) etc. ABN AMRO Bank. More and more entrepreneurs are starting their own venture in the field of micro credit. are also looking at microfinance as a serious business opportunity. This recession has provided us an opportunity to overlook some of the glamorous jobs and ventures to contemplate about micro credit which in no way is as glamorous.. It bears more significance in terms of recession. 720 cr. (Please note: these figures are as of 2005). ICICI bank through its ‘partnership model’ has already achieved an outstanding of Rs.
nurturing and leveraging such intangible assets before it is too late. In this context. conferences. it becomes extremely important to identify ways to exploit the IP. most of the talk across seminars. If one were to look at the recent events in the banking system of developed economies. intangibles running an entire global market would require identifying. and decide the best strategy to manage it. To determine these. especially Intellectual Property (IP). intangibles have started occupying a higher proportion of many corporate balance sheets than ever before. the holder needs to assess the current and the potential value of the IP under each scenario.Valuing Intangibles in a Complex and Competitive World In an increasingly flat world defined by globalization and fast technology driven markets. understanding. with a number of inspiring legislations in place to . while surpassing competition. and in expanding across geographies. over the past decade. managed IP in an enterprise can help it in attracting new investment. Success is no longer just dependent on ownership and management of tangible assets. workshops and some boardrooms today revolves around creating value out of intangibles. If one were to look at India. in hiring the best and brilliant minds. in new research and product development. Intangibles. When we take an historical view. In a similar vein. During this period. are recognized as one of the most valuable asset of an enterprise. managing. over the past three decades many enterprises have attained leadership position through effective IP management. a key reason for the banking system to be so close to a complete meltdown could be attributed to the poor understanding amongst key stakeholders of the complex financial instruments. assess the risks and rewards associated with it. A well—identified. India has been on the forefront of putting IP frameworks in place.
There are many proprietary and specialized approaches to IP valuation. . The increase in awareness of IP amongst scientists and enterprises is also seen in the increased filings for patents and trademarks at the Indian Patent Office (IPO). we cannot arrive at value with certainty but valuation requires an intermediate perspective between ignorance and certainty and requires skill.. making it complex and difficult to get consensus on the best method of valuation applicable. perceptions and judgment. Before valuing IP. Conducting an IP valuation that makes sense to more than a few experts is a Herculean challenge. One size fits all approach does not work in case of valuation of IP as it is unique by nature. this article aims to be a primer that touches upon some of the new and traditional concepts associated with valuing the intangibles. As rightly quoted by Aristotle “It is a sign of an educated mind not to expect more certainty from a subject than it can possibly provide”. These range from subtraction theory of value.000 per year. As India moves towards a knowledge and increasingly IP-based economy and is emerging as a globally sought-after IP destination. sale of IP and alliance/JV decisions. while trademark filings would increase to about 150. The best that can be said about current methods of IP valuation is that they are better than nothing. the valuer has to gain an understanding of the purpose and context of valuation. Today there are nearly 50 methods of valuation of IP. But there is no standard approach followed. Some of the key traditional approaches to valuation include the following: Cost Approach: Two different styles are often applied in valuing IP on cost basis.protect and promote IP management. filings for patents are expected to touch 100. The value of an IP depends on the expected future cash flows derived from use or exploitation of the IP. Valuation is of high significance as it helps in valuing IP in the in-licensing/out-licensing processes. protecting and maximizing the value of IP is of paramount importance for companies of all sizes and across most industries. to a profit-split approach. Measuring. to VALMATRIX® and Brand Value Equation (BVETM) proprietary methodologies. By 2010. for employee inventor compensation related to technology transfer and for patent pooling. But how much is a question of substantial disagreement. It is time and context based.000 per year. experience and judgment. It is a matter of high subjectivity involving various assumptions.
logical and applicable to all types of intangible assets. One point of caution is that we should not forget to include the opportunity cost of delayed market entry in calculating the cost. This method does not reflect any potential earnings out of the IP and hence is not highly appreciated in many cases and is least applicable when the asset is old or hard to recreate Its correlation to the utility or the market value is least. This is one of the widely used approaches as the information necessary to determine value using this approach is usually relatively accurate and often readily available. duration of the income stream and risks associated with generation of the income stream. the asset is valued based on the cost incurred in developing the IP. it also ignores the deal leverage. when the data is available. Knowledge express. One example of such an application is to make decisions of licensing out during one of the stages of clinical trials. However. IP is valued by comparing recent sales or transactions involving similar assets in similar markets. Such an approach would require an active market. when reliable data is available. this approach often (but not always) provides the floor price or minimum value. Some of the common sources for such market data include Royalty source. However. market approach is considered the most direct and systematic approach to value. sufficient number of similar exchanges/transaction and publicly available price information. Income Approach: This approach is based on determination of future income streams expected from the asset under valuation. Apart from the major problem being finding of a comparable asset. Royalty stat. Future income attributable to the IP is projected for an estimated duration of the income stream taking into . The parameters required in this approach include future income stream. The second style considers current prices to calculate the costs of replicating the asset today. in practice. Also. As per this approach. Market Approach: Under this approach.(i) (ii) Historical Cost basis Replacement or reproduction cost basis In the first style. In any event. the market approach is practical. an asset will be worth the present value of future economic benefits that will accrue to its owner. this may be the only data found or suitable to the context in some cases.
Production Savings Method: This method gives importance to the contribution of IP to inputs which result in cost savings for the entity possessing IP. There are some other IP specific valuation methods including “The Twenty Five Percent Rule”. This method is better for process than product technology. this method is of higher significance. An appropriate tax charge is then applied and the resultant cash flows are discounted to the present value to realize the ultimate value of the IP. In this method. the licensor should receive 25% of licensee’s gross profit attributable to the licensed technology. As per the “Twenty Five Percent Rule”. Royalty rate of a comparable asset is considered and this rate is applied to the projected revenues attributable to the IP. There are four variations to income approach: Price Premium Method: Price premium method measures excess over guideline company earnings of companies that do not possess the IP being valued. Relief from Royalty: This is a commonly used method when the revenues attributable to the IP over its economic life can be separated from other sources of revenue. Residual Method: When the earnings attributable to the IP cannot be separately estimated. thefair return on average balances of other assets are subtracted and net present value of resultant cash flows is considered as the value of the IP.consideration the risk associated with generating the projected income stream. This percentage could be adjusted upward or downward on a case to case basis to reflect respective investment and risk in licensed technology. Ranking & Rating methodology is a qualitative approach where the IP is ranked and . The main advantage of this method is that a sensitivity check can be done on the assumed parameters that go into valuation of the property. Ranking and Rating. Monte Carlo Analysis and Real options. the operating earnings after taxes are estimated.
But the point to be noted here is that the NPV values are no better than the range of extreme values selected. and then get mastery over the science and art of applying them correctly. while the acquisition of the essential skills would ensure a bounty harvest of the value vested in an IP. These variables could be price variables like price premium and additional units sold or cost variables like cost of goods sold and Selling & General administrative expenses. Real option is viewed as an option to develop the IP further or to abandon it or sell it depending on future technology and market information. In the current economic climate. to obtain most likely NPV. it is crucial that the IP team should understand which of those methods best suit their company's unique circumstances. . The valuer should identify the primary methodology that best satisfies the valuation criteria and where possible should support or cross check the valuation with other acceptable methodologies. In addition to developing an awareness of the various methods and approaches available for valuing the IP. and would be perfectly-placed to enter the global IP marketplace of the near future. This method is most useful for IP investments with long-term returns and high risks because it recognizes that risk of IP investment is not uniform over time as additional technical and market information becomes available. This has been a brief overview of methods that are commonly used for IP valuation but care should be taken not to over simplify the process involved. Monte Carlo simulation is a process where a probability is assigned to a set of random values within a range and these values are assigned to the variables used in the valuation process. The failure to understand and master IP valuation by the IP finance team would result in poor performance and umpteen suboptimal decisions. an enterprise should take steps to understand the tools. it is important that steps should be taken by the IP Finance team to attain the critical goals along the path. means. the team that makes the right calls on key decisions would emerge stronger post-recession. methodologies and techniques that could help them to deal with and quantify both the upside potential and downside risk related to these situations. Calculation of net present value of the cash flows derived on the basis of the variables is repeated for a number of times and multiple NPVs are then plotted by frequency of occurrence. This is more useful qualitative method for comparative analysis between various intellectual properties and is a good tool for the management to take some important strategic decisions for better management of IP. While making an outline of the path to enlightenment. In other words.rated on some important parameters.
Advertising. Advertising can also be used to generate awareness among public that which product they use and to which product they can say no.Its Impact on Society View Comments Written by Antora Dutta Written By: Antora Dutta Every time you switch on the TV and you will see some products being pushed on you with some assurance. etc. Thus increasing the consumption and as a result also increasing the demand of the product. With out advertisement not a single farm or company can grow in this world of competition. Advertising is the promotion of product or services. They can decide which product they need and why. This is advertising. If it has some positive aspect of social and economical impact on society then it do have some negative impact also. Charities can use media to advertise about the illnesses and encourage people for donations. Advertising a public welfare program has positive social impact whereas exposing woman in an advertisement has negative impact on society.AIDS. TB. This gives companies a way to expose their products to people and hence maximize their sales. Advertising is the mostly debated topic now. There are also various blames that advertising is causing negative social impact on . And all these credits goes to proper advertising. Advertising can also be used to inform public about social events like concerts and performances. which consumer will get from that product. Seeking help through advertisement during epidemics or natural calamities can help a lot. They focus more on the benefits. Advertising is a mass marketing technique. Diseases like Polio could never been controlled if the timings for polio drops aren’t advertised regularly. Like every other thing it has also some positive as well some negative points. rather than the product itself.). Assorted techniques are used for advertising which persuades the consumers that why they need the product which is being advertised. Even the backward people are now aware of many diseases and their problems. Your mind is being sold to these advertisers. It can also be used to educate people about certain diseases or danger (example: . Through advertising. Social organizations and NGOs can use the mean of advertisement for promoting their campaigns. products can be known to public easily. viral diseases.
Materialism is being much glorified through advertisements. Both of them are of same products. because we always just want to have more. can divert the society a lot. We are starving for material goals. The balance. Advertisement can create contentment but can also simultaneously create discontentment. but with different forms. Thus the need of raw materials also increases. It plays with the emotions of general public and encourages them to think that buying and depleting are the activities of life. Our society and the marketing of products depend so badly on advertisement that even its negative impact on society can’t outweigh the many positive social and economical effects. that is ice-cream. Advertising posters of modern films. the more we destroy the environment. being advertised as they can bring all the happiness in our lives. shown below. it can be ruled out that is has bad impact also. Even if advertising has a vast good impacts on society. but its also true that the more we consume. . where sexuality is shown much than the actual theme of the movie. because if demand increases production also increases. It is true that advertising increases consumption. So. We want to earn more and more money so that we can buy happiness in forms of products. There are two advertisements. of what is necessary and what really not needed should be focused more. Products which are heavily advertised are expensive due to the cost spent on advertising. One can judge from them that which one have positive and which one can have negative impact on society. we can say that advertising has positive as well as negative impact on society.lives. which can again have dangerous consequences Society is becoming ignorant towards social or world issues because we are too obsessed to satisfy our newly created needs.
concepts. If advertising is shown with the combination of words along with something new factor highlighted then it bring a favorable response of the consumers. ‘Words’ not only control the minds but it also changes the view points completely and help the customers to climb the ladder of inquisitiveness. It is found that advertising is just not only the way to sale products or services but it also acquires its own importance by educating and providing knowledge to customers. We have to accept the fact that advertising rely on the heart of marketing strategy which includes public relations. Advertising means selling but for this one need a creativity of mind with the work of beauty and art. and newspaper do business due to sale advertising which earns revenue and helps in economic growth worldwide. Advertising proves magical by the ‘power of word‘which leaves an image on the mind of the customers. It sells us dreams and has become fabric by selling life style. product.Its Importance In Marketing View Comments Written by Tanushree Bhattacharya Written By :. radio. Advertising acts as a guide book which tell us what to buy or not to buy. Advertising is one of the parts of ‘marketing Mix’. promotional programs. Advertising can be said both powerful and magical. pricing. Companies and customers can share a strong bond of relationship through branding. word of mouth and channel relationships among other strategies.Advertising . In the present market scenario advertising is experiencing a period of rapid economic growth worldwide. We can find that people of the society have tremendous impact of advertisements. advertising is among one of them which try to draw the attention of prospective customers and try to quench their thrust for products and services by presenting them in a favorable manner. creativity. customer service. In today’s fast moving media driven world it plays a vital role in customers’ mind and sentiments. Promoting public relation is one of the . ideas and innovation to promote new products and remind about changes in the old one. Building of brand image through advertising is important as brand always lives in the memory and hearts of the customers. So advertisements reach to them through the route of emotion which is a powerful one in advertising. It can be said as revenue generator as many media outlets such as television. If an advertising campaign proves effective then it invites more and more customers with greater frequency.Tanushree Bhattacharya Advertising is a potent vehicle which includes imagination. packaging. Like many other marketing tools.
In case of advertising whatever we see may not be reality and if it shows reality it is quite possible we may not see it. D stands for Desire. To create a good brand and its effectiveness is a long battle although it makes selling easier. So one of the oldest and traditional conceptual model for creating any advertising is AIDA model: get Attention. At last A stands for Action which is the final stage and depends on the determination of customer for taking action to buy that product. . That means the first task of an advertisement is to make customer aware about a product. Through the help of the above model advertising can knock the mind of customers and if it proves effective customers will definitely try the product at least for once in their whole life and if it meet their expectation then it becomes their lifetime product. In a whole advertising is important for marketing. The desire to obtain that may be generated in the mind of the customer. arouse Desire and then obtain Action. hold Interest. I stand for Interest. This model conveys that A stands for Awareness and Attention.greatest ways to form a brand because it only helps customers to understand a company and its products. It means when a customer will come to know about a product it will automatically create an interest in the mind of that customer regarding the product.
”. the up-most action-item is to bring about Rural Transformation. Categorization of task backed by limitation of choices in the Rural India eventually widened the chasm between not only the Rural and Urban Youth communities but also between the opportunities made available to them. I am sure. specially the resource-poor (comprising mostly of agricultural laborers and farmers with very small landholding) on land is enhanced because of the lack of access to other productive assets and skills. I believe. The divide formed uneven income groups starkly differentiating the Urban and the Rural Youth. there has been evident reason for the Rural Youth to remain engaged in the “business” which they had for generations. In India.Prevalent Scenario “…countries advance not because of their size but by the manner its people lead their lives and by the character they possess and by the skill of their hands and intelligence they possess to do things.is predominantly dependant on agriculture for its livelihoods and the burgeoning population coupled with more efficient farm practices has made it unsustainable for agriculture to continue to sustain its traditional “market share” of rural employment. Prevalent Scenario – Need to Eradicate Urban Rural Divide As we are aware majority of Rural India population has been engaged in the core agricultural work till date.The Point Blank | Transforming Rural India. but only contributes to about 18% to nation’s GDP. bring mass awareness.like Former President APJ Abdul Kalam who have already shown pathway for the same.000 villages with more than two third of total population living in the villages. in order to achieve nationwide transformation and push our country in the orbit of ‘developed nation’. I believe there is a need for a model which.000 at that time). In this scenario. This. create an advanced educated society of citizens and above all in order to witness India transformed after 75 long years of independent rule. Pandit Jawaharlal Nehru in the 1950s during a visit to the small township of Dayalbagh (population 5. the differentiation factor responsible for disparity is. sadly so. Amidst all the efforts we direct to make India a developed nation. it would do so because such people live here and not because 36 crore people live in this country. And. being the most accepted-and-followed Socio-Economic model. Eradicating barrier of Urban Rural Divide would help us address plethora of our prime concerns such as poverty and population explosion (or implosion?!) to name a few. i) Provides requisite opportunities to Rural Youth . the divide not only barred the opportunities but also the exposure of advancement to the youth of Rural India. Today. however. The dependence of village communities. luckily. the ‘unavailability of opportunities’ to Rural Youth and certainly NOT ‘unavailability of talent’. Today agriculture employs more than 70% of rural population. Moreover. WE are a nation of approximately 638. India is in the race of being a super-power and. Unarguably the ‘Rural India’ – to what some prefer to refer as Bharat . the pressing need of time is to eradicate the opportunity difference between Urban and Rural Youth. Having noted the need for highly-scalable model which can bring mass awareness and help the nation prosper. If India would make progress. there are many visionaries . about 200 kms from Delhi.A pertinent quote of India's first Prime Minister. fight against enemies such as poverty and population.
For better utilization of their time and efficiency ii) Creates employment with even opportunities for both men and women iii) Eliminates the difference of exposure between Urban and Rural areas iv) Proves to be the most competitive yet economical model wherein comparison with other conventional/ traditional existing models. the development of India will not be comprehensive or complete unless there is development in our rural areas. To receive appropriate feed-back c. For getting trained b. where as Mahatma Gandhi used to say the heart of India throbs . With 70 percent of our population living in villages.a. Our objective of inclusive development will not be achieved unless villages do not prosper. v) Itself should be a highly scalable for leveraging the untapped potential of the Rural Youth.
g. better results and developments can be achieved through the extension of the innovation processes outside of borders of an organization. In some cases open innovation processes are performed in informal development teams. opens (theoretically) . The paper introduces open innovation and explains the role of open innovation in endurance of enterprises with briefing about challenges of open innovation. services or capabilities of an organization. 1. and involving partners in the processes: suppliers. The paper ends with role of open innovation in small and medium enterprises (SMEs) to show importance of the same for their survival. LM Thapar School of Management. new ways are to be sought to survive and sustain. In these cases the goal-oriented approach is more challenging. but there is a bigger possibility for radically new solutions. The paper touches human side of innovation and based on all these.. The research paper analyzes the past and reframes the future. When resources are scarce and/ or constraints are imposed. Organizations realized the importance of opening their innovation processes. Role of Open Innovation The open innovation approach changes some traditional innovation and R&D processes: while innovative solutions are traditionally serious business secrets. but especially the end users of the new products and services. customers. while extending the innovation process outside the organization borders. Prashant Kumar. proposes a framework for open innovation. and using external resources. approaches into the innovation process. but there are several levels of this openness. be it large companies or SMEs. Mozilla. For the innovation process both internal and external knowledge can be used. MBA Student. The CEO Insights Abstract Innovation is a key to success and for survival as well. This has direct impact on enterprises.Open Innovation In Slowdown View Comments About the Author: Mr. Financial turmoil has shaken the whole world and all governments. or new knowledge can be generated. and Google web applications). The paper proceeds with what can be achieved by open innovation in recession and explains the necessary actions for open innovation in recession period. Same is the situation at present in the world economy. competencies and possibilities of internal innovation are limited. It proposes a framework for the enterprises to survive based on open innovation and strategic correlation. The capabilities. Based on the open innovation approach. Mozilla developed a legal and functional model that allows the open source community and Mozilla itself to cooperate in product development (Mendonca and Sutton 2008). Introduction The concept of open innovation approach is becoming more and more popular over the years. Innovation process is the development or refinement of new products. The main advantage of open innovation is the involvement of new thoughts. or application existing solutions in new ways. where only weak central coordination supports the processes (e. and several organizations adopt this kind of methodology. this new approach makes the future solutions visible not only for the future users. 2. Campus Editor. Linux. networks. business partners. but also for competitors.
e. etc. the company faced with a problem related to DNA sequences. Organizations can more effectively capitalize on skilled labor that is mobile and independent. better able to deal with uncertainty of markets and enables technology development processes that are more adaptive and efficient. in practice. a company can directly use the results of the open innovation. achieving success). • Fame (to show the world of capabilities). fail quickly and often.unlimited capacities. where the experience from other fields or interdisciplinary areas can be useful for the innovation process. or figure out the current development plans for an organization. Challenges The biggest challenge in open innovation is the motivation of participants. Innovation for recession 3. and offering intangible motivation factors. or image (Burghin et al 2008). We are reaching the end of knowledge monopolies based on conventional business models. • Fun (fun of problem solving). Open innovation is about more than a small change in R&D. prices. It is advisable to get involved early. Another important challenge is to convince the innovating organization itself about the benefits of open innovation: decision makers usually afraid of presenting the future plans or current developments of the company. Globalization trends require increased knowledge to compete in other markets. Because they have failed to solve the problem. or offer indirect products and benefits (e. Through extending the innovation boundaries a wider expert base can be achieved. It has the potential to revolutionize business. The best way to meet knowledge and labor limitations is to use open innovation methods. However. the fame achieved in an open innovation project or in the open community could result a good paying contract from another company.g. 3. 3. and he could reframe an existing technology for the actual problem (Lagace 2006). who is not even working close the problem domain. more personal factors have more important role: • Curiosity. the open innovation process is chaotic. learn . Every company is facing greater demands to respond faster to their market and open innovation can enhance those efforts. but he could understand it.2 Distributed knowledge and labor.1.) can be challenging and interesting for several participants. In the case of a biotechnological firm.1 Speed. they opened the problem area for outsider scientist.. • To be part of the community. in open innovation approaches organizations should make emphasis on building a suitable virtual environment for cooperation of participants. Through open innovation it is not hard for competitors to see. By surprise the winning solution was presented by a scientist. Based on these motivation factors.1 Achievable benefits The two key benefits are speed and the ability to capitalize on knowledge and labor regardless of where it resides. or use the by-results of the innovation process. Open innovation is more agile. Open innovation fosters faster exchanges of ideas through innovation action networks and shared development. related to Linux). or can be a good reference even for a company.1. As output. However direct compensation (salary. But at this stage of the revolution. 3. Participants can even convert these benefits in other relationships. • Intellectual challenge of the problem (process of problem solving.. like customer loyalty.g. companies are reducing their internal knowledge bases in an effort to run lean.
suppliers. make sure IP issues are addressed up front. If you are in such a business. suppliers do not squabble over IP so they can maintain client relationships. IP issues are handled upfront and the framework supports innovation-against-specification and mission innovation based on the closer engagements between the client and members.2 To implement open innovation in an organization The biggest issue with implementation is that one cannot simply copy another company. 3. implementation deals with an intangible problem created in a company probably already in shock from too many recent changes to the organization. internally prequalified. Some of the disadvantages include the tendency towards innovation against specification which can be too myopic. It just doesn’t work that way.from your mistakes and develop best practices for your company. Another issue comes as a result of the lack of company-wide engagement. • Suppliers have inside knowledge of your strategy. Every company is unique and must develop an approach to open innovation that fits its needs. The primary detractor is the cost associated with . typically R&D. 3. open innovation is dead. A go-getter director initiates a program for a department. and crowd sourcing in different literatures: • A Solution Bounty offers a reward for offering a solution to a specific question. Finally. and they are more inclined to think bigger and understand the innovation mission. are more likely to generate disruptive technology. In several cases clients expressed remorse that an open innovation project took two full quarters to implement and then came the realization that the market potential for the project is too small. Some detractors with engaging business partners include the danger that the partner can claim the joint project and you end up boxed out. and typically you will find an extremely large number of innovators connected.3 To assemble a good open innovation network Without a network. they have a lot to lose if something fails. There are examined the different types of connections: solution bounty. • Not all businesses have strong opportunities in Crowd Sourcing. too. Make sure the engagements are the right size. On the positive side. making the open innovation effort seem trivial. Also. Supplier relationships tend to mitigate IP issues. • Business Partners typically are rich in resources compared with typical small innovators. Too often a CEO mandates an open innovation initiative because it works for another company and thinks it can simply be duplicated. crowd sourcing builds customer loyalty and practical knowledge of your value proposition. If they value your business. it is easy to establish through a third-party. and the rest of the company is indifferent or even resistant to the changes. And transparent problem briefs signal strengths and weaknesses to your competitors. • Internally Prequalified typically exist in the largest companies. and ideally. business partners. making it unable to process yet another restructure or corporate culture adjustment. So normally.
and ‘management incentives not supporting innovation’ (31%) as the biggest barriers to effective innovation.4 To evaluate open innovation As with any field that is new. Nokia and others who are successfully adopting open innovation models. To assess open innovation by output. aligned incentives. and cultures that support strategic experimentation and reward collaborative results. that ideas and technologies (or the processes to find them) are the keys to success. executives cited ‘short term focus’ (63%). Marketing guru Seth Godin sums up the sentiment well. One of his studies showed that when each of these groups were shown a newspaper and asked to count the number of pictures. But.1 The human side: a missing element It’s easy to assume. They have created in their organizations what is called an “Open Innovation Mindset”. What percentage of sales came from externally licensed technologies? Is this percentage increasing or decreasing compared with 2-3 years ago? What percentage of net income last year came from technology licensed out to other companies? Is this percentage increasing or decreasing compared with 2-3 years ago? In assessing opening innovation in terms of time to market. As an example of this ‘filtering’. Has this interval changed in the past five years? How? What percentage of internal ideas is offered for external license? How much time elapsed between the patenting of ideas and their external licensing? 4. At leading companies like P&G. Richard Wiseman’s book “Luck Factor”.managing customer-feedback processes.2 Five keys to creating an open innovation mindset Key 1: Broaden your view We all see the world through the ‘lens’ of our own experiences and pre-conceived viewpoints. when he says “What’s missing isn’t the ideas -. Compare the results and time to market of open innovation to previous methods. We can start by examining how open innovation compares to traditional internal methods. According to a recent survey by Strategos. the key to success in making open innovation happen is in overcoming the significant barriers and perceived risks on the people side of the equation. 3. Ultimately. open innovation should increase profitability compared with only using internal methods. For this reason. a book about his study of self-reported 'lucky' and 'unlucky' people. we should ask how long it takes for patented ideas created inside the company to be transitioned to the firm’s own products and services. no final answer is available.it’s the will to execute them”. 4. Only 15% cited ‘lack of out-of-the-box ideas’ as a major barrier. The human element of open innovation 4. especially since much of the open innovation movement focuses on identifying external sources of innovation. ‘lack of time/resources’ (52%). on average the self-reported unlucky people spent about two minutes on the exercise . the stories behind the scenes are tales of inspired leadership. we can ask a series of questions. it’s interesting to look at a study from Dr. having the right people doing the looking and having the right mindset becomes critical in where/how you look for innovation and how you filter what you discover.
In fact. each is much too quick to ‘fill in the blanks’ with assumptions about the other sides intentions and needs."Stop counting. When viewed through the lens of managing risk. One of the most common mistakes occurs when functional groups across the companies (whether marketing or engineering) negotiate and develop plans with counterparts in other organizations. This is a critical point to remember: you are especially susceptible to misunderstandings when the differences are subtle."Stop counting: there are 43 photos in this newspaper". tell the experimenter you saw this and win $250". functional and organizational goals are often in direct conflict with the overall stated goals.in big type -. But if you look deeper. mindsets and competencies needed for discovery and innovation are not only different from those needed for mass market optimization. The three types of roles include that of Integrator. Licensors license the innovation (or brand) to another company to take it to market. they conflict…” Open innovation initiatives can be thought of as strategic experiments in many ways. especially conflicting goals across functional groups. Key 2: Create alignment across the innovation ecosystem Creating alignment within any company is critical to achieving the organization’s goals. not results All of the great skills that larger established companies bring to the task of optimizing current business can become an obstacle to nurturing nascent opportunities within an open innovation environment. Lucky people see what is there and not just what they're looking for". Key 3: Adapt to your organization’s tolerance for risk Authors and consultants James Andrew and Harold Sirkin11 present a framework for alternative approaches to new product and business development. Orchestrator and Licensor. Integrators manage all steps necessary to generate profit from an idea. but the next one about halfway through -. The reason? Lucky people tended to spot the message on page two -. The lesson: "Unlucky people miss chance opportunities because they're too busy looking for something else. you’ll often see that incentive systems. and lack of alignment is often cited as a barrier to effective innovation. the unlucky people tended to miss not only this message. these approaches can be adapted to suit an organization’s culture and needs. Because they believe that they ‘speak the same language’. academics Markides and Geroski state “The skills. Orchestrators carry out some steps and link with partners to carry out the rest (the traditional view of co-development). which is valuable as a tool for structuring strategic initiatives that are in line with an organization’s tolerance for risk. Key 4: Put the focus on learning. In open innovation initiatives.while self-reported lucky people spent seconds. and are often quick to agree on certain aspects of the approach or program. the focus should be on accelerating learning. at the highest levels it appears that groups are aligned. not solely . Often in collaborative relationships. These barriers become even more pronounced in cross-company collaborations. because they agree on the major goals to be achieved. In their work on the fallacy of ambidextrous organizations.
and the negative career implications associated with failed efforts. One of the best options for recessionary times.” With the economy softening. Solving the right problems is half the battle of innovation. One of the biggest reasons you see entities coming together is to make a given partnership scale up quickly should its efforts be successful. Others are straightforward co-development projects between strategic players. to codevelop and co-market them. and wasted investments—is less than desirable. In the Netflix/LG Electronics deal. There are many examples of successful open innovation efforts today. It doesn't have to be this way. Some take the form of pan-industry innovation networks that share in the risks and rewards of their findings. developing and marketing new ideas. the impact—lost momentum. Open innovation is about connecting with others to find new ideas and. and. profits.1 Higher levels of brainpower applied. Continued exposure to these innovators and these initiatives within a somewhat ‘protected’ and risk-reduced environment will over time create the kind of innovation mindset that otherwise would likely never become reality. LG gets ready customers (who it expects will buy . the team has access to field conditions where the essential issues lie. even in expansive times. it's a recognition and calmness about the process of trial and error and a development of informed instinct as to when it's appropriate to continue with the challenge or move on to the next one. Such broadly defined problems increase the chances for more holistic. Framework for Recession: A Ripe Time for Open Innovation “Recessions present a good opportunity to collaborate with others on finding. breakthrough solutions to emerge. But while this might look like a smart move. Many of the entrepreneurial companies and individuals that you are likely to partner with in an open-innovation initiative are often just these types of transformational champions – the Michael Boehm’s of the world. The reference points and shared values that teams derive by working with users on a daily basis helps them zone in on the right problems up front. Especially in open-innovation situations that involve a potential provider and a customer.3 Quicker to scale. 5. 5. team dispersion.2 Validity. As the old saying goes. market share. 5. 5. Key 5: Transform your culture from the outside in Individuals and organizations that repeatedly fight their way through to transformational events acquire an ability to champion innovative and potentially risky ideas." When companies with aligned interests come together. there is a better chance the problem at hand will be more broadly defined and there is less chance of falling prey to group-think. It's not blind optimism. it's tempting for companies to turn off the lights and shut the door on innovation efforts until things pick up.results. Think foregone investment. Theory-focused planning and other more flexible planning approaches recognize these differences and put the focus where it belongs: on learning. is to join forces with another entity with complementary innovation goals. primarily because working on the wrong problems is so costly. some would argue. often. "two heads are better than one.
while Netflix gets a new media platform that makes it more competitive. when it's really an issue of redefining some internal roles and rethinking your innovation organization much more broadly. it is often more productive to understand each company's legal culture. The most successful efforts seek to build win-win cultures where both parties benefit in equal measure. money is short and cutbacks loom. Although it should be an expectation to involve lawyers at some point. It's important for the team to meet in person at the outset of the effort. Before initiating and/or participating in open innovation efforts.millions of its new boxes). Survival of the Innovative — Doing More with Less When the economy is down. one virtual. recessionary times or not. These things can inform a more casual letter of intent that can guide the early stages until more is known. Start with a big idea—after all. 5. the first instinct at ." Open innovation is a leap of faith. one of the advantages of open innovation is that a team of companies can accomplish more than one alone. Managing intellectual property is always the stickiest part of collaborative innovation. its successes and failures in past relationships. 6. And sometimes partners can be found in existing networks where you can "meet" and perhaps "date" before getting "married" into a tighter co-development relationship. Obviously. But the effort also needs clear goals and milestones that partners commit to. things can move more quickly if companies already have a relationship. organizational culture can be an obstacle to open innovation. open innovation should be put on the top of the list of core competencies for the foreseeable future. 5. Success requires a toplevel vision and a lot of internal communication as the initiative is rolled out. 5. and what the expected timetable would be to draw up a more exact picture of the future business relationship. any time the team is working to draw conclusions from their separate analyses or when decisions are being made. then it is time to formalize a business contract. The job of leadership is to make it a short leap.7 Manage IP. says Venture2's Docherty.5 Have a big idea with clear goals. "it's almost magical to watch the transformation as companies actually become more innovative when they learn to partner with creative companies and entrepreneurs on the outside. 5. That document would include the fundamental goals of the united effort. Other than that.6 Plan two team workspaces—one physical. bear in mind a few important things that need to be aligned from the outset: 5. and any assets being brought to the table. Internal groups often perceive open innovation as a code word for outsourcing. When exploratory activities result in a tangible concept of what the parties will produce and a business model is formulated. an agreement in principle regarding the resources being brought to the table. This means access to something new to the world that could only have been co-created. but that is not essential. But. But given how many recent collaborative efforts have been successful.8 Create a new mindset. concentrate on using virtual tools to post and share documents and communicate through regularly scheduled calls.4 Identify partners who share a common vision. Instead. it is often unproductive to have them driving the early meetings before the parties have had the chance to explore the commercial or investment requirements of the partnership. In many cases.
the regular objections — "let's not break what's running". “let’s not rock the boat”. IT hasn’t changed — demand for computing services within the organization continues to increase. considering the increasingly important role small and medium sized firms play in innovation. Not having enough money makes you think out of the box.1 Innovation that Saves Money We often think of innovative technology as something that goes beyond the ordinary that allows you to make things bigger. a crisis might suddenly provide freedom to perform core architectural changes. 6. The reason should be no news to anyone reading this paper: The state of enterprise. while those who take the "sit and wait" approach take the risk of being left behind. or think of innovative ways to produce the same level of services — or even better services! — With less resources. "it’s not company standard" — are not going to cut it. After all. one of the main drivers for innovation is economic pressure. and the existing infrastructure. would previously have been very difficult to achieve. When budgets are cut. often based on the N-Tier distributed computing model. But while this may be a natural reaction to the crisis. Many surveys have shown and indicated that open innovation is also becoming increasingly popular among SMEs. The name of the game is “survival of the innovative” — those who push forward new ideas that will improve efficiency are most likely to survive. Doing something — something innovative — is key to IT’s very survival in these tough times and is true for any company in any sector. small firms often lack resources to develop and commercialize new product in- . Innovation in SMEs SMEs play an increasingly important role in innovation and job creation. This is not a surprising. I’ll argue in this paper that it is the wrong reaction. and is actually the riskiest and most dangerous option for companies today. But in fact. 6.many organizations is to freeze and do nothing. inefficient and difficult to scale. When survival is at stake. making yourself even more prone to the next round of budget cuts. better. is to do things differently. and faster. you have two choices: deliver less to the organization. and stakeholders rally around new ideas which might save the day. is still as cumbersome. But this isn’t an easy task: being more efficient requires you to look into how your current systems are running and re-examine some of your most basic assumptions. No new projects. which has been analyzed mainly within the context of large. and prove the true value of IT within the enterprise. Yesterday you could still solve things by throwing money at the problem. 7. cover up and wait for the storm to pass. technology user firms (Chesbrough. for example. although badly needed. many barriers to innovation fall. which. The current crisis might be exactly the time to take a bold technological leap which addresses the glaring inefficiencies in the existing infrastructure. But today there’s no budget for expensive machines. For the architect. The only way to deliver the goods. no new ideas — just keep a low profile. 2003). complex integrations or armies of consultants. but are nevertheless left out of the research on open innovation. and discover how to do more with less. Under today’s market conditions.2 Time for a Change It is an interesting irony that sometimes the strongest incentive for a change is “we have no choice”.
So. There is certainly no one unique ways in which SMEs deploy open innovation strategies. To survive. Strategic partnership and collaboration will generate new ways to survival for enterprises. Games the First Boss should play with the fresh recruits from Colleges and Universities . a result that is not surprising given the technological commitment of these firms. It has also been found the significant differences between different SME-sizes which show that there are different open innovation strategies and practices among SMEs. but we have no further specifications about these different strategies. In addition. The purpose of the research is to communicate a message to all the companies and enterprises in India that world economy is changing its faces and economical focus is shifting to Asia. the survey results show that open innovation is not entirely different for services and manufacturing firms as we expected based on the literature. Many times. Manufacturing firms are on average more active in the outsourcing of R&D and the out-licensing of IP. Several motives have been found in studies for firms to start open innovation practices and barriers that SME managers encounter when they open up their innovation process. the time has come when all companies in the economy should join hands with their suitable partners and to support each other in survival against all the odds. no matter which type of open innovation practice is pursued. innovation is the only way ahead. leaving them preparing stronger platform for themselves. In addition. 8. to participate in other firms and to involve user in the innovation process.house and as a result are more often inclined to collaborate with large firms. Corporate renewal is second most important driver towards open innovation. it has been proved that collective efforts have shown more substantial results than individual efforts. Since. Most SMEs use a broad set of methods to meet the ever-changing customer demand and to stay competitive. but they do not differ with service firms on other open innovation activities. Conclusion The recession and financial meltdown has provided companies an opportunity to come close to each other and to behave with each other in a way of partners in an industry than competitors. many barriers for open innovation in SMEs are related to corporate organization and culture. India is a country having a large number of SMEs who contribute a major percentage in economic development and growth. it is required to understand the role of innovation in their survival. when the resources are scarce and constraints are increasing. Open innovation is mainly motivated by market-related targets: these are the most important driver for firms to engage in venturing.
Your responsibility is to make them true leader and a performer in the long run. friend. Be candid and polite to them and make them understand that they have been recruited for these specific task and should be ready to and willing to go for hard work in order to achieve the targets that they has been assigned for. Responsibility and Challenge: The first Boss is an important person in everyone’s life. In a professionally managed organization performance is the only thing that matters. When specific targets are given along with time deadlines they may feel little bit nervous not for achieving the targets within that deadline it's the First Boss job to show them the process how to achieve the targets within the deadlines. You are the leader. optimism and with good academic and training background they are recruited from colleges and universities to the corporate. With lot of expectations. 1. careers and individual goals along with the corporate goals. Make them successful because their success is your success. motivator. energy. as we commonly say first impression is the best impression the first boss makes lasting impression in the fresh recruits’ mind. Every year they join the corporate in the month of April. they play most pivotal role in building and shaping the new recruits careers and help them to build them as leaders in future. They are the managers(First Boss) to whom the new recruits report. Games the First Boss should play with these young and fresh graduates just coming out from colleges. making and shaping these young people’s mind. manager. Task and Target Oriented: Right from the day one makes them accountable for the job they have been assigned for. and major and most important player (THE FIRST BOSS) plays an important role to make these young people to work and perform at their best. 2. The role the First Boss is very important in setting directions .This is the hiring time for all fresh engineers and MBAs. May. . philosopher. mentor. Undoubtedly this very challenging task and a stupendous responsibility to become the first boss in some ones life. Be task an oriented Boss not a task master. These young educated people have tremendous potentials and they can perform at their peak performance provided they are given a very conducive environment where they can perform brilliantly. vigor. and June. and guide to these young men. These fresh recruits look out for Conducive Corporate Environment.
If you respect these young recruits they not only reciprocate but automatically take responsibility. it increases the confidence level in these young minds and the “Can Do” attitude starts developing. Teacher and Coach: The First Boss right from the day one make the business process understand to these young recruits. make use of the "Can Do" attitude artfully. enable them to open up their mind which can be a bonanza. Remember handholding is a part of mentoring. once he teaches them his job becomes easier. Don’t shout at them if the decision is wrong they will close them up get back in to their cocoon. slowly give them additional responsibility and bigger task and targets. Power house of Encouragement: The First Boss is the source of encouragement. Delegate and Encourage Them to Take Decisions: The First Boss should delegate little power and ask them to take small decisions. Can Do Attitude Initiator: Appreciations by First Boss is like wining first 100 meters flat race in schools. Help them to make good decision makers. Never get irritated even if they ask you very stupid questions. and once they take full . if the outcome is poor sit with them to analyze where it went wrong and what precaution they should take while making the next decisions. 8. Look out carefully for the outcome of the decisions if it’s good give them appreciations. 5. it involves lot of teaching and coaching for these young resources. After all decision making is the most important thing in business. 4. 7. 6. After they accomplish small task and targets. he is the person who will break all the fears and doubts in the mind of these your people. Respect Leads to Responsibility: The First Boss should never ever disrespect these young recruits’ . 9.Respect works like magic. Encourage them to come out with new ideas of doing the job and help them to do the "Out Of The Box Thinking". Appreciation Catalyst: The First Boss should be loud in their appreciations even for little achievements that these young guys make.3. they remain obligated and indebted to you throughout their life.Hand Holding If Necessary: The First Boss should never hesitate to roll up his sleeves and make his hand dirty to teach complex things to these young recruits. Remember your parents did hand holding while making you walk.
please don’t get afraid of them. Make the communication is an adult -adult mode. Here come the maturity calm and composed character strength of the First Boss. 10. 13. Never Be Afraid of Smart and Intelligent Recruits: Last but not the least the First Boss may come across young recruits much smarter and intelligent than him. if you have a 360 degree appraisal system working in your firm they will fix you up then. Ask them to find out their own mistakes/drawbacks and remedial measures which they need to overcome them. 11.responsibility they start delivering the goods. Credit stealing by a boss is like digging his own grave in the professional organization. . Give them suggestions about the blind spots which you may find by using Johary window. Smart people working in your team can make you and your team smarter. Never Steal Credits: The First Boss should never be a credit stealer. Delivering results becomes a habit. Results give confidence. If you can make them “Think Big” they can achieve big by’ Thinking Big" is a practice and it stays lifelong.Office politics reduces energy and in turn reduces efficiency. So he has to “Think Big” in order made others “Think Big”. Don’t involve them in Office Politics: Every office has got office politics. 14. don’t think them as your threat. remember these young people are very smart they understand every thing. Mutual Respect is a 'Win-Win" situation. Make Them “Think Big”: The First Boss should be able to make these young guys to “Think Big”. engagement and the involvement in the work that these young recruits are doing. 12. 15. These are all old saying and observations. and confidence building is a step by step method. These young guys will come to know office politics and lobbying in due course . it’s just like old wine in the new bottle. Encourage Them to Do Self Audit And Introspection: The First Boss should make sure that the young recruits are making the “Self Audit” after first ninety days of work and correcting themselves on the basis of their audits. Close Monitoring: The First Boss should keep a strong vigil about the quality of learning. Keep always the communication channel open. the First Boss should never use these young recruits as pawn in the office politics that he may be involved in.
It’s easier said that done. and . Some BOSS you want to remember throughout your life and some you don’t want to remember at all. Indians are in general risk averse and look for employment opportunities rather than engaging in business and industry. It’s true the impact of the FIRST BOSS lasts long. Just after academics’s entering into the new unknown big corporate world is a transformation stage.One interesting survey was conducted by an agency and it was found that 47% of the employees don't leave the organization but actually leave their Boss. INDIA TO FOCUS ON LAG OF ENTREPRENEURIAL TALENTS AMONG RURAL YOUTH WITH THE HELP OF SUPPORTIVE DEVELOPMENT INSTITUTIONS UNDER PUBLIC PRIVATE PARTNERSHIP MODEL. With my experience and observations I have written this topic after working in various firms watching many bosses and training and building many careers by being a boss. some perform and excel and some don’t. It may also be mentioned that some sections of Indian people have earned name and fame almost globally as entrepreneur of small retail business houses particularly in provisions. and they are your nightmare. clothes. However in recent years some change is visible particularly in urban and metropolitan areas. where a professionally qualified student has to perform and deliver.
It is interesting to note that such entrepreneurs could be traced in most of the counties of the world as since time immemorial these people have migrated from India to set up their trading businesses in various parts of the world. It also needed no formal education. waiver and charity from governments and charitable institutions. It would be possible to develop an appropriate entrepreneurship model if rural youths are empowered with marketable skills. attack of pesticide and volatility of prices of agricultural products farmers over the years developed a mindset of fatalist and cursed their fates for any calamities and sought doles. Moreover but for monsoon failure. However it is equally true that India lagged in Schumpeterian model of entrepreneurship for quite some time and of late only this could be seen emerging in metropolitan and also in some developed parts of urban areas. FORTUNE AT THE BOTTOM OF PYRAMID Dr C k Prahlad of Wharton in his famous book ‘The Fortune at the bottom of Pyramid’ has brought out how poor people in rural India could become employable by adopting new growth models suitable for generation of new employment opportunities and economic growth. It would not be difficult as the recently developed supply chain management techniques empowers industries to reach easily and in cost-effective way to the remotest area of any place. as that helped them to build their vote banks. However these efforts have led to growth of market for MNCs but have not helped villagers to develop their latent potentiality of becoming full fledged entrepreneur as manufacturer of goods. NEED CHANGE IN MINDSET IN FRAMING POLICY . He emphasized that the present trend of MNCs to cater for mature markets need to be changed and to extend the same even to poorly developed markets in villages and semi-urban areas by introducing some strategic changes like packaging and pricing. Some initiative of this nature has already been taken by some consumer goods industries and no doubt these efforts have helped these industries to capture more space and also have helped villagers not only to earn and spend but also to produce and consume these along with people residing in urban and metropolitan towns. However it would be wrong to assume that villagers could not be transformed as entrepreneurs as they have been found developing many innovations even with primitive traditional knowledge for survival. GLUED TO FARMING Most of the Indian villagers remained glued to farming only partly because the traditional farming was seasonal and provide enough time to laze away. seeds. It is true some of the villagers could develop some supply chain management and retail business in the process. the risk in farming was almost negligible and hence remained attractive for generations. It would not be wrong to say that successive governments and politicians even after independence followed a policy to keep farmers and artisans under their thumbs by making them dependent on their doles. In fact even in agriculture like sugarcane etc Indian farmers have enriched many backward countries through their entrepreneurial skill. It would be further interesting to note that most of these people migrated from their villages and towns and stayed over there for generation. In this regard he stressed that the role of multi national companies has to be re-defined.gold and silver ornaments businesses. grants and subsidies etc. However with the emergence of risks beside monsoon viz.
But essentially villages have remained agrarian with low and disguised unemployment. MODEL RECOMMENDED . The answer is not very far to seek. professionals and managers.It appears there is need for some paradigm change in our policy thinking as well as our mindset particularly of our politicians. transports. It is the lack of infrastructure that has led to such migration of youth. It would therefore need to be multiplied to help spreading knowledge and technology to rural youth. It is difficult to fathom out the type of mindset of politicians who actively advertise such projects and feel complacent and happy as if they have been doing great work for poor villagers. doles and waiver of loans instead of investment in infrastructure development in rural areas. FOCUS ON DISPARITY IN INVESTMENT IN RURAL AREAS In fact investments made in rural areas though undertaken extensively and at times even massive amounts have been earmarked for various rural projects but all these generally have proven ineffective as most of these are in the form of subsidies. This would obviously make them lazy and some of them even come out to refuse digging mud and to carry the same for dumping at some allotted place. Accordingly this has to be stressed in all efforts to rejuvenate rural youth and transform them as entrepreneurs. institution and technology platform. It is therefore high time for policy makers not to introduce employment opportunity plan like ROJGAR YOJNA (NREG) where unemployed rural youths are either given work of mud lifting or paid even when no work could be allotted to them.President Kalam’s vision of providing urban facilities in rural areas (PURA) is worth mentioning as this is possibly one such step that would help transforming agri-business potential through knowledge. NEED TO CHANGE MINSET OF POLICY MAKERS However if something has to be done for rural poor it would be necessary to change the mindset of policy makers and bureaucrats. In fact the highly noticeable disparity in between rural and urban infrastructure like roads. Lack of infrastructure in rural areas have made private sector also hesitant to develop industries over there. In this regard our ex. In fact rural areas should not be considered as agricultural belts and rural youth should not be taken for granted as farmers and artisans only. enlightened institutions and individuals to come forward with projects both agriculture and other sectors including service and manufacturing to provide opportunities to rural youths to work in these village projects and enterprises. In fact rural youth like all other youth should be considered as human resource and could be shaped like all other youths as entrepreneurs. It is therefore natural question that would arise in the mind of any rational man what for these migrations should continue and why not such thing could not be done in rural areas. In fact many rural youth after getting some education have migrated to urban areas and have developed many new business and even industries. innovators. It has to be borne in mind that technological innovations could also emerge in the laboratories of life as rightly pointed out by Dr. These also failed to generate effective delivery institutions and virtually generated highly corrupt institutions manned and fanned by politicians and rural elites. power and communication have created the hiatus in economic growth of rural and urban areas. In fact it would not be wrong to state that ‘the program seemed well designed for bureaucrats and politicians to siphon off money’. Mashelkar. It is true the scene is changing and some new industries are growing in villages or its outskirts. It would therefore be necessary for government.
It would therefore be imperative that institutions under public private partnership model should be developed to fund and organize ventures to provide services and to manufacture product. western economic development (WD) program provided funding to third-party organizations including industry associations and those making up the Western Canada Business Service Network (WCBSN). In recognition of the importance of community-based delivery of services and support to Small. In some of the developing countries including India some efforts have been made to institutionalize development activities even in rural areas but these have not been specifically assigned the much needed role to act as catalyst for growth of individual entrepreneurs.ca.gc. however to achieve real success it is imperative that these institutions should shoulder the risk of farms and firms in rural areas run by rural farmers and artisans. This obviously a better model than usual pattern followed by micro financing institutions to act as lender to farmers. www.google.rural. States in developing countries have assumed the role entrepreneurs. These are the employment engine of the region. APPLICATION OF RECOMMENDED MODEL In recent years some efforts have been made to hold hands of farmers and artisans by some micro financing institutions particularly in south.ca.In this regard it is worthwhile to keep in mind that there would be some lag in developing village entrepreneurs as there would be dearth of capital to develop village projects and enterprises but this could be dealt with by developing institutional entrepreneurship as is done to meet the capital needs of urban entrepreneurs by creating development banks.and Medium-sized Enterprises (SME) development. However in this strategy also there could be some difficulty as overall supply of individual entrepreneurs and mangers with necessary education and aptitude might not be readily available.tbs-sct. This has obviously led to improved access to business information. which in turn deliver business services and support to entrepreneurs. Such organizations should conceive projects for compact lands for farming and for clusters of artisans for manufacturing.gc. Only with such transformation of rural people particularly youth who outnumber others could make India a developed country and decouple her from the present global meltdown. training. business . In fact villagers could have been as good as city dwellers but for lack of infrastructure including education. A LIVE CASE STUDY of CANADA-A SUCCESS STORY* *(adapted from www. trade and commerce. www. Pragati Bandhus in Karnataka is one such model as these groups of marginal farmers named as Pragati Bandhus not only provided hassle free loans to farmers but also physically stayed with them to help them to prepare crop planning along with marketing and technology support. It would therefore be necessary to hold the hands of villagers for some period and enable them to grow as entrepreneurs and managers without getting the shocks of market and monsoon or such other natural risks for some time as these have created fear psychosis in villagers for generations and obviously they need some time to get over such psychology and become an entrepreneur rather than remain as fatalist and dependent on doles alms and such other charities. The ultimate need is to enable them to get enough confidence and managerial and financial strength to become entrepreneurs on their own.com ) Business Development and Entrepreneurs Small businesses are the source of nearly 80 per cent of new jobs in Western Canada.
Operating from head offices located in Kelowna. Saskatoon and Winnipeg and services are also available through a network of regional CBSC and Aboriginal service sites. members of the WCBSN and other organizations. These include lean manufacturing practices (identification of new trends. WD has undertaken a number of initiatives to encourage SMEs and R&D organizations to be innovative in improving their productivity and competitiveness. and . who knew local issues and could identify business opportunities. including training. In addition to support through the WCBSN. municipal and non-government sources.ca/rpts/audit/lifp/ic-eng. provincial. mainly helped in achieving success in grooming entrepreneurs and their business enterprises in 2005-2006. this organization was stabilized through new. It improved business productivity by addressing the needs of SMEs and entrepreneurs through a number of service delivery mechanisms and partnerships including more than 100 offices.asp. and 64 per cent indicated that the Government of Canada should influence private sector financial institutions to do lending to eliminate the gaps. FEDOs provide enhanced services to francophone entrepreneurs. education and training. the WEIs improve access to financing.gc. WD has responded with the development of two types of SME loan programs. business and community economic development. seamless gateway to information for businesses and maintain an extensive database of business and trade information from federal. and networking. exporters (29 per cent) and manufacturers (27 per cent). Edmonton. Women's Enterprise Initiatives (WEIs) WEIs work to provide customized services to help women entrepreneurs face challenges and succeed. the development of innovative strategies and the implementation of new processes). and people located in rural communities. With head offices in Winnipeg. Edmonton and Vancouver. It has provided operating funding to the CFDCs since 1995 to enable them to provide local strategic economic planning services. technology and management training and academic and industry internships and exchanges. It engaged Community volunteers. Calgary. access to capital. information. loan aftercare. information services. Through work with financial institutions.wd. Evaluation 1. young enterprises . marketing advice. Canada Business Services Centres (CBSCs): The CBSCs provide a single. multi-year agreements providing operating support for member Community Futures Development Corporations (CFDCs) Furthermore CFDCs were floated as a national community economic development program implementation organization that would help people in rural communities respond to local needs. networking and mentoring for women entrepreneurs. Francophone Economic Development Organizations (FEDOs): FEDOs enhance the vitality of Official Language Minority Communities (OLMCs) in Western Canada and strengthen economic opportunities for francophone business.-source The evaluation found that: the Loan Investment Fund Only 16 per cent of Loan and Investment Program loan clients could have obtained financing from other sources. WD has contributed to increased investment in targeted western Canadian firms. business advice. Those more likely to experience difficulties in obtaining financing included innovative businesses (40 per cent). Improve Business Productivity It provided operating and loan funding to a number of other organizations that in turn delivered targeted loan programs. Sub-Activity: Access to Capital A 2004 Statistics Canada Survey on Financing of Small. business advisory services and training for entrepreneurs. WD Loan and Investment Program (previously Program) at:http://www. In particular.advisory services and capital for all western Canadians. including women and francophone entrepreneurs. Western Canada CBSCs are located in Vancouver. 82 per cent of the small business financing experts surveyed indicated that there are gaps in loan financing available to small-and medium-sized enterprises. Saskatoon and Winnipeg.defined as those that started operation in 2002 (34 per cent).and Medium-sized Enterprises found that 20 per cent of SMEs cited obtaining financing as an obstacle to business growth. Regina. business counseling and loans to small businesses in rural communities.
3 million. Ference Weiker & Company estimated that "the average EDP and UEDI loan client generates 260.The Loan and Investment Program does not significantly duplicate other loan programs and services. Results for 2005-2006 An evaluation of the Entrepreneurs with Disabilities Program (EDP) and the Urban Entrepreneurs with Disabilities Initiative Fund (UEDI) undertaken in 2005 is available on WD's website at:http://www. information and communications technology (ICT) and value added resources and contribute to the development and commercialization of new technologies and technology based services and products in Western Canada. In the evaluation. life sciences.gc. Program Activity: Innovation .ca/rpts/audit/edp-uedi/default-eng.4 million and projected to create or maintain 156 jobs.3 million. totaling $1. Advice and Business Loans to Entrepreneurs with Disabilities loan (ABLED) and francophone (FEDO) agreements provide loans averaging $14.000 in revenues and 6 person years of employment over the first five-year period after they receive assistance that is attributable to the assistance that they received. The results for CFDCs in rural areas and WEIs serving women entrepreneurs are summarized below: Total statistics above include: 68 loans to entrepreneurs with disabilities. 2.wd. WD investments in innovation are an important building block for creating a diversified economy in Western Canada. 236 loans to Aboriginal clients.000 to very small and start-up businesses. the majority of WD investments have been made in knowledge infrastructure and technology adoption and commercialization. which help set the foundation for clusters and future growth.such as environmental technologies. and. WD's network members also provide SMEs with path finding services and referrals to alternative sources of financing. and SMEs operated by women. totaling $7. totaling $2. most of the western technology clusters are in their earliest formative stages. francophone. Recognizing this. A innovation process that translates knowledge into new products and services is an important driver of long-term economic competitiveness and prosperity.. 113 loans to youth. Loan loss agreements have been negotiated to leverage additional loan capital from credit unions for rural business lending by CFDCs in British Columbia. young entrepreneurs or those with disabilities. Developmental loans delivered by the Western Canada Business Service Network and Entrepreneurs with Disabilities Program (EDP) urban delivery agents WD has provided WCBSN network members with funds to support repayable loans to SMEs in rural areas. total external financing leveraged by FEDOs was estimated at $2. According to the cluster life-cycle model. The urban micro-loan." In 2005-2006.asp. As the clusters mature. investments will address gaps and opportunities and will be connected to markets and collaborative research opportunities with the United States through the ERI. .18 million. These investments support the emergence and growth of technology clusters in key sectors .
licensed to an external user. Sub-Activity: Technology Skills Development . The following graph illustrates this distribution: WD works with many partners when developing and funding innovation projects. WD approved almost $52.7 million to support the growth and development of technology clusters and the innovation system as a whole. The department's work in this area has led to broad results including an increase in the number of technologies developed in research institutions that have commercialization potential. For innovation projects approved in 2005-2006. collaboration. but also support for the operating or increased capacity of R&D canters and increased availability of skilled personnel Sub-Activity: Community Innovation Innovation at the community level can identify new opportunities and enhance the viability of traditional sectors.4 million from other sources. In 2005-2006. WD has invested in applied R&D leading to a new product or process that will have a near or midterm commercial potential. protect and license technologies to support that encourages technology adoption and adaptation. Sub-Activity: Technology Adoption and Commercialization Technology commercialization ultimately occurs in industry. and community businesses adopting new technologies. Firms in clusters are often active in export markets and international supply chains. and conferences to exchange information and increase awareness. increased capacity in communities based on the generation of new knowledge. and contribute to economic growth and diversification by reinvesting in new R&D activities and creating or retaining highly skilled jobs. or form the basis for a new company. investments in R&D and knowledge infrastructure are drawn to and developed in the region. resources such as highly qualified personnel (HQP). WD's efforts have led to increased technologies adopted by existing firms. On average. as demonstrated by intellectual property (IP) protection. Increasing investment and support for the commercialization of new technologies in Western Canada is a priority for WD. WD support will leverage funding of $146. The ultimate goal is to bring new products and services to the marketplace. the department contributes 33 per cent of the costs of an innovation project.By strengthening the innovation system and enhancing technology clusters. This has resulted not only in applied R&D leading to technologies with commercialization potential. Sub-Activity: Technology Research and Development To support technology R&D. WD's support for community innovation in 2005-2006 resulted in planning studies used by communities as a tool for economic development. In addition. large anchor companies. WD supports all phases along the technology commercialization continuum from support to organizations such as university technology transfer offices that identify. venture capital. WD has increased connections and synergies among innovation system members through new partnerships/networks. Sub-Activity: Technology Linkages Through its work in innovation.
WD supports projects that increase training. CONCLUSION It is obvious therefore that the present lag in entrepreneurial development in rural areas in India could be overcome if institutional entrepreneurs under public private partnerships are formed. Sub-Activity: Knowledge Infrastructure Investments in knowledge Infrastructure provides the foundation for technology clusters.. It would make them also real entrepreneurs after they start tasting success in their enterprises jointly managed with state partnership. WD's investments in this area have resulted in increased physical assets for R&D and/or training and new investments to the field. In the process they would also be groomed as better managers under the enlightened and better educated executives drawn and recruited by the state. This would not only help in risk minimizing but also in risk sharing and that would help risk averse rural youth to undertake business and farming with more gusto and less fear.. education and skill building in the new economy sectors.Under this sub-activity. WD has contributed to several initiatives that increase the number of qualified individuals in the field and build linkages with industry.. .
Telecom Asia Awards 2005 Best CEO. He established the first company to manufacture push button telephones in India. Institutional Investor. Economic Times. The importing of telecom equipment was banned by the Indian Government as ITI (Indian Telecom Industry) monopoly practices & sole OEM for Department of Telecommunication. he is married. Voice & Data. born October 23. NDTV Business Leader Awards 2008. with three children. India. He was one of the first Indian entrepreneurs to identify the mobile telecom business as a major growth area and launched services in the city of Delhi and the National Capital Region in the year 1995. into India's largest mobile phone operator in just ten years. 2005 Ernst & Young Entreprener Of The Year 2004. Fortune Magazine 2006 Telecom Person of the Year. In 1980 he sold his bicycle parts and yarn factories and moved to Mumbai. with a capital investment of Rs 20.Sunil Bharti Mittal. He has been Chairman & Managing Director of Bharti Group since October 2001. from the President of India Asia Businessman of the Year. Ernst & Young . he started his first business in 1976 at the age of 18. His first business was to make crankshafts for local bicycle manufacturers. 1957 is the Chairman and Managing Director of the Bharti group. 2005 Business Leader Of The Year. The USD 5 billion turnover company runs India's largest GSM-based mobile phone service. at the Frost and Sullivan Asia Pacific ICT awards 2006 Best Asian Telecom CEO. along with two siblings.000 borrowed from his father. The son of a politician. A first generation entrepreneur. Sunil Mittal is from the town of Ludhiana in Punjab. GSMA Chairman's Award 2008 Padma Bhushan in 2007. Residing in Delhi. Awards Sunil has received several awards including: Transforming India Leader. 2006 CEO of the year 2005. He has built the Bharti group.
This belief has resulted in Bharti Foundation. Sunil was ranked among the Top 25 Philanthropists in the World in 2009 by the Barron’s Magazine.000 people. which is operating 242 primary schools and 5 Senior Secondary Schools catering to over 30.Japan CEO Forum and India. Sunil was Co-chairman of the World Economic Forum at Davos in 2007 and is a member of its International Business Council. Chairman and Group CEO of Bharti Enterprises. Bharti Airtel. the flagship group company. Sunil is also on the Telecom Board of the International Telecommunication Union (ITU).Sunil Bharti Mittal is the Founder. and NDTV. Wal-Mart. He served as the President of the Confederation of Indian Industry (CII). Sunil is associated with several world-class academic institutions . He has received the GSM Association Chairman's Award for 2008. Sunil has been recognized with the Padma Bhushan. retail. member of the Dean’s Advisory Board of Harvard Business School. India. one of India’s leading business groups with interests in telecom. the premier industry body in India (2007-08). the leading UN Agency for Information and Communication Technology. Sunil started his career at 18 after graduating from Panjab University in India in 1976 and founded Bharti. The US-India Business Council has also honored him with ‘Global Vision’ Award 2008. Wellesley.Sri Lanka CEO Forums. Sunil believes that a responsible corporate has a duty to give back to the community in which it operates. He is a Commissioner of the Broadband Commission at ITU. he was chosen Asia Businessman of the Year by Fortune and Asia Pacific CEO of the Year by Frost & Sullivan. He is a member of the Prime Minister's Council on Trade & Industry and serves on its Sub-Committee on Promoting Financial Inclusion. He is a member of several business forums including the India-US CEO Forum. Singtel. Sunil has been awarded the Global Economy Prize 2009 by The Kiel Institute.000 under-privileged children in rural India. Bharti Airtel. In 2006. Bharti has joint ventures with several global leaders. one of India’s highest civilian awards. including The Economic Times. He has also been conferred the Lal Bahadur Shastri National Award for 2009. He is also a member of the Academy of Distinguished Entrepreneurs. a group company of Bharti Enterprises. AXA and Del Monte. He was the Ernst &Young Entrepreneur of the Year in 2004. Massachusetts. is among the leading global telecom services providers with operations in Asia and Africa. member of the Executive Board of the Indian School of Business. . member of the Cambridge India Partnership Advisory Board. He is a member of several premier international bodies – Board of Trustees of the Carnegie Endowment for International Peace and the Leadership Council of The Climate Group. has a market capitalization of over US$ 30 billion. member of the Governing Body of London Business School. Germany. realty and agri-products. Today he heads a successful enterprise which employs over 30. India-Italy CEO Forum. India-UK CEO Forum.member of the Board of Governors of Indian Institute of Management (IIM) Ahmadabad. Sunil has been named Business Leader of the Year by several important media houses. Babson College. Business Standard. financial services.
UK and the degree of Doctor of Science (Honoris Causa) by the Govind Ballabh Pant University of Agriculture & Technology. He is an alumnus of Harvard Business School. Sunil Mittal’s sprawling corporate office is in the shadow of the Qutub Minar. But right from a young age. Sunil’s parents were of different castes. He is an Honorary Fellow of The Institution of Electronics and Telecommunication Engineers. The fact is that he has built a massive business empire from almost nothing. Satisfied employees are seen everywhere. The man who built the brands of "Bharti" and "Airtel" and made them household names. Sunil Bharti Mittal is the biggest name in Indian telecom. which created uproar at that time.Sunil has been conferred with the degree of Doctor of Laws (Honoris Causa) by the University of Leeds. USA. Sunil's father was a Member of Parliament. . Sunil reclaimed their family of "Mittal". They were forced to adopt the surname of "Bharti" (they gave up their family name of Mittal as they were ostracized by their community). had always been in public life. Today. and came to be known as Sunil Bharti Mittal. Sunil wanted to create a big mark for himself in the world of business. But later on. The positive undertone hits you as you enter the office. probably this is the business secret of the great Sunil Mittal.
We did things never tried before in India. Sunil was quick to identify this. This was just the beginning. with push button telephones being introduced in the country. Sunil saw the opportunity and set up a facility to manufacture push button telephones in India. He started operating from Delhi and Mumbai. manufacturing capsules. "Right from the beginning. Sunil replied. answering machines. But Sunil Mittal’s vision was wide. the Airtel brand is the biggest mobile phone brand in the country. The telecom revolution was beginning. The Bharti group launched the “Airtel” brand of mobile telephone service in Delhi in 1995. We are very fair to the people we work with (suppliers. Today. and the group moved into manufacture of Cordless phones. There is no "owner-worker" kind of feeling . In all these product segments. The business began to grow slowly and steadily but Sunil's sights were on something much larger. put him in the bracket of the richest people in the world. Sunil's foresight paid off. He was conducting the business of importing products from abroad. as the Bharti group's telecom business. worth Rs. Sunil set up his first company. After a few years. ours was never a trading or money making mentality.20000 as capital." An excellent initiative in the Bharti management is that all employees own stocks of the company. At that time. He did this by borrowing Rs. and move forward. But the break that Sunil was looking for came to him in a totally different and unexpected dimension. In 1983. staff). As a result of this. and distributing them in local markets. and this opened up a world of opportunity for Indian entrepreneurs. the Bharti group had been the first to launch them in India. he started a small factory manufacturing cycle spare parts in Ludhiana. import of many products was banned. buyers. he shifted his base to Delhi.When he was just 18. Once again Sunil seized the opportunity and dived headlong into this business. we are working to make it an institution. They. Now a corporation. he knew that the Indian economy was at the threshold of becoming one of the largest emerging economies in the world. the Indian government wanted to encourage indigenous manufacture of goods within the country itself. fax machines and others. Bharti Healthcare. which had become the nation’s commercial capitals. Once when asked what he would attribute his success to. therefore have a sense of belonging. soon after. In the early I990's mobile phones were slowly becoming popular in the world. but of wanting to be recognized in our field and to establish a corporation. We wanted to prove that even with meager capital we could do big things.1200 crores today.
Sunil attracted many key executives from Reliance ADAG.” Amid all this pressure. But I thrive on my work. how does he relax? “I used to play golf before. which is the highest honour in the global telecom sector. the Bharti group has a turnover of US$5 billion. Truly. besides yoga and exercise. Sunil is an ardent family man. In November 2006.that prevails in the Bharti's corporate environment.” says Sunil Bharti Mittal. to start a number of retail stores across India. of jealousy. Today. which works towards furthering the cause of education. In July 2006. . NIS Sparta and created Bharti Comtel. The Bharti group is conscious about their social obligations and has set up the "Bharti Foundation''. He meditates and chants mantra's every morning. the intensity of competition. his vision has transformed the lives of millions across India. Sunil has not neglected his role towards society. He has a daughter and twin sons. So each individual is motivated and works towards the common goal including his ones. On the personal side. They have also donated Rs. was conferred on him for his tremendous contribution to the development of India’s telecom sector. is high. not stress. In Madhya Pradesh. 2008. they have funded over 50 schools. This Award. He spends quality time with them whenever he can spare time from his hectic schedule. And the popular "Hire and Fire" policy does not exist in his company either. now sometimes I play tennis. the US retail giant. But I won't say there's no stress. On February 13. Sunil Bharti Mittal was awarded the GSM Association Chairman's Award 2008. As you come to the top of the pyramid. 20 crores to IIT Delhi for building a Bharti School of Technology and Management. He once said “Having a positive frame of mind can help overcome extremely bad situations. he struck a joint venture deal with Wal-Mart. work is love. For me. which are in rural and semi urban locations.
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