Abstract
All large firms around the world are concerned about value creation through organic growth and innovation. In fact, continuous innovation is the only source of sustainable advantage. Indian industry can be a source of innovations, not just for the Indian market but also for the global market. And for this, India has to focus on the next practices, not just be content with the best practices.
The competitive landscape is being altered by five major forces that will reshape the basis for competition: They are: i) Deregulation of a large number of industries such as telecom, power, health, and financial services bringing a significant change; ii) Globalization giving rise to ‘micro multinationals;’ iii) Emerging markets like India and China growing rapidly and already positioned to be the No. 2 and No. 3 economies of the world; iv) Convergence of technologies and industries wiping out old business boundaries and creating new ones; and v) Ubiquitous connectivity having a big impact on how business is done as more than a billion people are connected through wireless and personal computers (PCs).
The innovation and the value creation debate around the world are centring on these five issues and the firms that adapt themselves fast to the changing scenario are going to be the winners. In this lecture, the author addresses the following questions:
Where will the ‘next practices’ come from? How do we start seeing a pattern of opportunity that others may not yet recognize? How do we commercialize complex technologies? How do we understand the changing nature of the key driving forces that will create the next
world economic order? How do we create a global perspective irrespective of our work or our current preoccupations?
The author cites, as examples, specific case studies of innovation taking place in India in a wide variety of areas: hospitality industry, adult education, automotive, health care, and communications and computing. He believes that these examples represent the harbingers of next practices.
The author has the following suggestions for the Indian industry to move to the next phase – to lead:
Indians need to have the confidence and commitment to leverage their capacity for experimentation into the global marketplace. India needs to recognize the emerging patterns and develop a methodology for radical innovations. India needs a full measure of knowledge creators and thinkers. Indian companies are in a cusp of a very good opportunity and those who have the courage and imagination to move forward, experiment, consolidate, and leverage will be at an advantage.