IIPM News Broadcast: October 2008

Friday, October 31, 2008

Experienced

This stage comes when you want to experiment with your car to the extent of destroying its resale value. Because any modifications beyond this will have two side effects, they’ll cost a substantial amount and will potentially adversely affect the resale value of your car. So, if you plan to modify your car beyond the beginner level, better make sure that it’s not the family car which your dad and mom use frequently!

With that warning out of the way, welcome to the next level. Here the stakes are higher, but the potential rewards (attracting a hot babe with you drop dead sexy looking car) even higher. And almost everything goes in terms of modifying your car (inside as well as outside) and money flows. First things first, the staid, mundane every-car look of your ride has to be changed. It’s time to add some mean looking spoilers with a dash of funky side skirting and some custom-made fibre glass bumpers to the mix.

All this, coupled with the previous modifications will give your car the look of an imported sports car, and that, at much less of a price. But don’t be satisfied with just the look, it’s time for your ride to act like a sports car too! Drive your baby to any reputed car modification garage and pop the hood, the first step is unlocking your car’s ECM (Electronic control module). Using sophisticated software the mechanic can unlock the hidden horsepower of the engine that the manufacturers lock away to avoid paying that extra duty and to balance out the fuel consumption. Sure, doing this will ensure that your car starts competing with the Hummer in terms of fuel economy, but you knew that going in, didn’t you?!

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs

Thursday, October 23, 2008

Honda has always been regarded as one of the most deadly Japanese warriors. And its ‘wait and watch, then attack’ strategy has served the company well. Question is: How far will this take Honda? And will the market still desire such mean machines which many others offer too? Surely, if nothing comes up, there’ll be just the mean guys left to ride its mean machines!

Issac Asimov’s three laws of robotics have always appeared Honda

too far-fetched for most rationalists, all throughout the century gone by. And apart from science fiction, even over half-a-century of cutting edge research could not rupture the meshwire of confusion around what many call robotics. Notwithstanding the frustrations, hard work and neuron burning fixations of numerous mega-brains, advanced positronic devices have still remained the biggest whim of all times and an indigestible food for thought for many! But hey, all was not in vain and today we have some good news! Yes, the fruits of labour have started to pay-off and the first step towards a workable ‘humanoid robot’ prototype has finally been taken...

And this is where we enter the Honda labs. It took the mighty Honda Corporation almost 22 years of rigorous R&D exercise (not forgetting the costs involved) to get the ASIMO (Advanced Step in Innovative Mobility) right. Standing at 129 cm, weighing 54 kg and walking on its own two feet, this robot is the most advanced android prototype ever built and promises to be the basis of future developments. With ASIMO, Honda of Japan has shown the world its capabilities in advanced technologies and complex designs. Ironically this is not the first time that the company has broken the shackles of mediocrity. The VTEC engine technology for instance, developed way back in the year 1982; has revolutionised modern cars to the hilt. With its technological wizardry, Honda has won over 90 podium finishes at F1 alone and is currently the supplier to maximum teams competing in the glorified sport. And it’s not just cars; even when it comes to two-wheelers, Honda has shown its seriousness, ruling the sales charts on the back of its technologically sparkling range of sports and cruiser bikes. The company sold 13 million two-wheelers last year. Finaly, we have someone who gets it right when it comes to R&D expenses! Or are we just being too optimistic?!

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative
Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...
domain-b.com : IIPM ranked ahead of IIMs

Tuesday, October 21, 2008

No money, honey!

FCI is yet to receive funds...
It seems that the food supply shortage and inflation was not enough

for the Indian government to learn a lesson. “Why?” you ask? Well, they now seem to be waiting for a few more disasters to happen before they can react. The HRD ministry and the rural development ministry are yet to disburse Rs. 220 billion to Food Corporation of India (FCI). This delay is eventually hampering the supply and distribution of food grains for Mid-Day Meal programmes and employment guarantee schemes. It must be noted that the Mid-Day Meal Scheme is a vital part of primary education across India. Similarly the NREGA and other employment schemes may also fall flat due to late delivery of food grains. Every year the FCI is paid well in advance for the supply of food grains to be distributed through the Public Distribution System (PDS). This delay is also negatively affecting the distribution of food grain to the Armed Forces.

Of the total amount, Rs.200.94 billion is pending with the rural development ministry while Rs.24.57 billon is to be paid by the HRD ministry. This payment-delay is also affecting the cash-credit limit of FCI. Worse, the penal interest above Rs.350 billion charged by banks will also eventually increase the expenditure of FCI. All-in-all it’s ‘wake-up’ time for the Centre.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Read these article :-
ZEE BUSINESS BEST B SCHOOL SURVEY
B-schooled in India, Placed Abroad (Print Version)
IIPM in Financial times (Print Version)
IIPM makes business education truly global (Print Version)
The Indian Institute of Planning and Management (IIPM)
IIPM Campus

Top Articles on IIPM:-
'This is one of Big B's best performances'
IIPM to come up at Rajarhat
IIPM awards four Bengali novelists
IIPM makes business education truly global-Education-The Times of ...
The Hindu : Education Plus : Honour for IIPM
IIPM ranked No.1 B-School in India, Management News - By ...
IIPM Ranked No1 B-School in India
Moneycontrol >> News >> Press- News >> IIPM ranked No1 B-School in ...
IIPM ranked No. 1 B-school in India- Zee Business Survey ...
IIPM ranked No1 B-School in India :: Education, Careers ...
The Hindu Business Line : IIPM placements hit a high of over 2000 jobs
Deccan Herald - IIPM ranked as top B-School in India
India eNews - IIPM Ranked No1 B-School in India
IIPM Delhi - Indian Institute of Planning and Management New Delhi ...domain-b.com : IIPM ranked ahead of IIMs

Monday, October 20, 2008

Torque n’ Roll...

The middle-class customer never had it so good when it comes to four-wheeled toys... But will the two wheeler giants give up easy?!

“I wish I had a car for just a day like this,” Ramesh Pawar fretted

and fumed while running for the bus stand shade in the torrential rains. Pawar like various middle-class Indians has an aspiration to own a car but like others, he too has an income which is just about enough to cover his basic needs. Even though he has saved enough to be soon able to own a bike, Pawar still longs for a car; at least for his family. The want to own a car has never been so strong in India, especially when only 8 people out of 1,000 own a car here! The most hyped car of the season, the ultra cheap Tata Nano is also trying to persuade millions of motorcyclists to upgrade to their first car. Many have already taken the bait and are anxiously waiting for the affordable car to hit the market!

Enticed by the prospects, now Renault-Nissan, Toyota and even scooter giant Bajaj are all set to unleash their own versions. It is said that the stagnant growth in primary markets like US, Europe and Japan has forced major manufacturers to look at colossal opportunities available in the emerging markets. Here, even though lower real income (but a high aspiration value) calls for small affordable hatchbacks (which carry lower margins), anticipation of huge volumes are forcing many to rethink their strategies. According to Roland Berger Strategy Consultants, the under $10,000 vehicle market is likely to touch 18 million cars by 2010. The study also indicates that about 1.6 million motorcyclists will upgrade to a car over the next five years.

Higher standards of living might run in favour of these carmakers, but the rising fuel prices and interest rates may spoil the party in the long run. Playing on a different tune, players like Hero Honda and TVS for instance are taking the tried and tested route instead of diversifying. Hero Honda for instance, expanded 18% between April-July 2008-09 and sold 1,149,753 two-wheelers and is confident of the two-wheeler segment. “Interesting developments, but there is no competition from small cars.

This is because the cost of ownership of bikes is less than that of a car, which includes fuel cost, insurance cost, maintenance cost etc.,” explains Anil Dua, SVP, Hero Honda to B&E. TVS on the other hand is betting big on its progressive two-wheeler product range. “Our focus remains on two-wheelers even if Bajaj and the others are launching low-cost cars,” opines Venu Srinivasan, Chairman, TVS Motor on questions concerning threat from small cars. Like them, there are a number of players in the market for whom two wheels remain the mainstay despite the hoopla.

It is interesting to note that while many new patrons have been added to the car segment, many more are making their way into the motorbike segment! Last year, the two-wheeler segment alone recorded a growth of 38% with at least 700,000 two-wheelers being sold every year. According to Yezdi Nagporewalla, of KPMG, “In volumes the motorbike segment is 7 million units strong and the competition from Tata’s Nano and others will at best be around 1 million units.” Interestingly, even though both the sides (two-wheelers & ultra-cheap cars) have their own take on the possible outcome of the battle, neither has the consumer figured-out for sure. Maybe that’s why they say, ‘Consumer is King’!

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Saturday, October 18, 2008

“We are presently spending 3% of our turnover on R&D”

N. K. Minda, MD, NK Minda Group
B&E: What do you think are the major challenges that this

industry is facing?
NKM: The challenges that the auto component industry is facing is the same as what the Industry is facing in general. This include rising raw material prices, slowing demand due to high interest and oil rates, rising manpower cost, attrition and resultant squeeze in margins.

B&E: What is Minda’s next step?
NKM: At Minda, export is an ongoing thrust area, our exports which were at 10% a couple of years ago are today at 18%. Our export thrust is not dictated by a slowing domestic demand but is a conscious decision on our part where we are aiming at 25% of our group revenues coming from exports. We were the first company from the auto sector to set up a plant in Indonesia and are actively exploring setting up plants in Vietnam, Uzbekistan and Brazil. As far as competition is concerned, it only serves as a reminder to us that we have to constantly innovate and offer better value to our customers in order to retain their trust.

B&E: What is your R&D expenditure? Do you have a presence in foreign locations?
NKM: We are at presently spending 3% of our annual turnover on R&D and the aim is to gradually take this up to 5%. We have a plant in Indonesia and are exploring the option of setting up plants in Vietnam, Uzbekistan and Brazil in the next 2-3 years. We have overseas offices in Turin, Vietnam, China, Italy and Japan.

B&E: What kind of opportunities exist for the Indian component industry in foreign markets?
NKM: Indian auto component industry is today emerging as one to be reckoned with. With more and more global auto majors setting up manufacturing facilities in India, the Indian auto component sector is getting exposed to internationally accepted manufacturing practices. However, concerns about quality still remain. Also, we are still lacking in original research & development activities. But slowly I am sure that these issues will get resolved and India’s potential of emerging as the global auto hub will also be realised.

B&E: What effects has the rupee appreciation had on the company?
NKM: The Indian rupee has been depreciating in the recent past rather than appreciating. We typically have clauses in our export import orders wherein foreign currency fluctuation beyond a certain limit are factored in. Our exports are largely to Europe and are Euro denominated, so we have been relatively insulated from dollar fluctuations.

B&E: In terms of profitability, market share or turnover, what are the plans?
NKM: The NK Minda group has crossed the Rs.10 billion turnover mark and our next aim is to triple this turnover to Rs.30 billion crores in the next 3-4 years. In terms of profitability we are in challenging times and the aim is to increase our net margins to 10%, so that we can justify the faith of our stakeholders. Today we have roughly 70% market share in off road switches, 50% share in four wheeler switches, 40% market share in horns, 70% market share in CNG/LPG kits, 15% market share in automotive lighting. Besides this we are into EOVM (Electronic over view mirrors) and automotive batteries where we have just entered. The plan is to have domestic leadership in all product categories where we are not the leaders in the next couple of years.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Friday, October 17, 2008

Been there, done that? Now do even more!

Write back to Jack & Suzy Welch at editor@businessandeconomy.org
Que: At my old company, we did everything to retain customers: built

dedicated facilities, designed innovative packaging, offered aggressive pricing and delivered quality second-to-none. Still, a few major accounts dumped us. Is costumer loyalty dead? (Carl Warren, Ridgefield, Conn.) Ans: Not dead, but different. Time was, you could “earn” a customer’s loyalty with tickets to a big game, a Disney World vacation or even a nice dinner a few times a year. And you could pretty much keep that loyalty with what used to be called belly-to-belly selling, or put less graphically, relationship building.

You’d listen to your customers’ dreams and worries, visit them to see how your product fit their needs and trouble-shoot their problems. In more competitive situations, you’d add the sort of extra services you mention in your letter. And, usually, this was enough. Price did matter, sometimes a lot. We’re only talking about, say, 10 years ago. But it never mattered like it matters in today’s fierce economy. Internet, in particular, has made pricing transparent & purchasing global, & it’s increasingly becoming a buyer’s world.

But we’re not ready to bury customer loyalty, only to redefine it from a transaction to a two-way street which means you and your customers don’t have a deal as much as you have mutual dedication. Because you, the seller, are not delivering on just price, quality and service. You are demonstrating intense loyalty to your customer by giving him a comprehensive, inimitable way to win. Better productivity. Faster throughput. Lower inventory. More innovative products. You are delivering something – anything – that makes you indispensable to your customer’s success in the marketplace. Then, and only then, will you get complete loyalty in return. Now, you may be thinking, “We did that! We built dedicated plants. We designed special packaging.”

To which we’d ask: But did those services – no doubt costly to you – fundamentally change the game for your customers? Did they allow your customers, for instance, to expand into profitable new markets or catapult old competitors? It seems unlikely; how could they have walked away? They couldn’t have.

Modern loyalty, then, ultimately comes down to that old saying: “What goes around comes around.” The more fervently committed you are to making your customers win big in the long haul – not just meeting their immediate demands – the more fervently committed they will be to you. That’s a hard order, of course, but the only road to take in today’s world.

Que: What are the characteristics of a good company “university?” (Vladamir Glazunov, Moscow)
Ans: Your question, of course, mainly applies to large companies, as most other organisations do not have luxury of affording an in-house learning center. And what a luxury it is too, as effective management development programs can provide a real competitive advantage. Note the word “effective,” however. Because corporate universities too often are not. The most common reason is that companies bring in outside “actors” to do the teaching – typically B-school professors and consultants. Talk about undermining the process.

You want your own managers in front of every class, demonstrating for employees what “success” thinks and acts like in your organisation. That’s motivating – and it can also provide a heck of a lot of growth (not to mention fun) for the managers temporarily donning professorial robes. In-house universities also fail for a second, more insidious reason: They become warehouses – a polite word for “dumping grounds” – for employees who can be spared for a few weeks.

Companies must ensure managers understand, and abide by the fact, that the in-house development program is a reward for superior performance. Only the best get selected. In-house universities are pretty rare, and well-run ones don’t come easy. But when done right, they can be a potent force for change.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Thursday, October 16, 2008

Not a ‘NYSE’ road!

KKR’s decision to go public is quite inopportune at this juncture
It’s a rough road; wherever they choose to go. But then, they

have to make a choice, which Kohlberg Kravis Roberts & Co. L.P. (KKR) has now done. The company has entered into a contractual agreement with KKR Private Equity Investors LP (KPE) providing for acquisition of all assets and assumption of all liabilities, of KPE by KKR. After this happens, KKR will become publicly listed on the New York Stock Exchange (NYSE), heralding another landmark incidence of a PE firm taking the public route.

“It should give them access to capital, particularly when the debt markets still don’t seem to be open to deals (at least the large deals for which KKR is known),” said Malcolm E. Polley, President & Chief Investment Officer, Stewart Capital Advisors. Interestingly, this deal does not actually give KKR any new capital. Rather, it is being used to purchase an affiliate currently listed on the Amsterdam (KPE). While this affiliate has struggled, KKR has long stated its belief that the affiliate was significantly undervalued relative to its asset values. Also, it gives KKR future access to the capital markets. “This offering is meant as a unique solution to a unique problem”, feels Malcolm.

On the positive end, they can learn from past failures. As per Isabel Schauerte, Analyst, Securities & Investments Group, Celent, “KKR should learn from the Blackstone IPO adventure and not cash out or sell shares.” But primarily, this isn’t the most opportune time for them to go public. Had the market for PE (or public equity, debt, etc) been better, KKR probably wouldn’t have taken such a decision. Some other PE IPOs (like Fortress and Blackstone) have not fared well. “Fortress and Blackstone offered their shares for cash. KKR also initially filed for the offering in that way but with market places so depressed, they didn’t do that”, opines Andrew Richards, Stock Analyst, Morningstar. Analysts feel the current market slump could correct itself soon and so they could have waited before launching their IPO.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Wednesday, October 15, 2008

You’ve just got ‘bill’ed dude!

Housing bill will help neither the homeowners nor the taxpayers
W hat Bush has tried to show as a blessing in his housing bill,

is, in reality, ‘a curse in disguise’. The bill has been cleared by the Senate, saying that it would rescue America’s cash-strapped home buyers and borrowers, but it would do more harm than good. The huge package that Bush signed into a law aims at safeguarding the nation’s two biggest mortgage companies, Fannie Mae and Freddie Mac. It also plans to save an estimated 1.5 million families from going on the streets. As per the new law, the Federal Treasury can save the two mortgage companies if and when they are about to collapse, by spending billions of dollars of taxpayers’ money, besides providing financial help to an estimated 400,000 troubled families by replacing their loans with subsidised government loans.

All these expensive plans would put an additional $800 billion burden on the already overburderned taxpayers. The amount of risk that they would be forced into would also be substantially higher than before, since the money would go to bankrupt companies and people.

Besides, the law would not help the housing sector much. “The housing sector will continue to post a correction as long as the inventory overhang continues to place downward pressure on prices. The housing market is largely functioning independent of the housing bill, and will come under downward seasonal pressure through Q4,” explains Michael R. Englund, Principal Directors and Chief Economist, Action Economics to B&E. Housing prices have already fallen by 15% and if market trends are anything to go by, they would further fall by another 10% or more thus bringing down the housing valuation further.

The double whammy has caught the homeowners on the wrong foot between rising mortgage payments and falling home values. Moreover, revival of the mortgage lending companies seems to be a distant dream. And as these illogical policy initiatives continue, the ultimate sufferers of this perilous situation will be the tax-payers & home owners.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Tuesday, October 14, 2008

Noble Piece Prize?!

The war on terror is an excuse to boost the sales of US defence MNCs
When Lockheed Martin had embarked on the ambitious F-16 project

[which eventually became one of the world’s most versatile and successful fighter aircraft], little did it know that this nuclear-capable strike aircraft that can literally wipe out a city would one day be termed as a tool for fighting terrorism. And if the respected Mr. George W. Bush is to be believed, these aircraft are such a potent force in the fight against terrorism that Pakistan would desperately need a diversion of funds to the extent of $230 million for the ‘upgrade’ of its ‘ailing’ fleet of F-16s from the Foreign Military Fund (FMF), which otherwise could have been used to strengthen the counter terrorism expertise of Pakistani forces engaged in the Afghan-Pakistan border. This is in addition to the 36 new F-16s that Pakistani Prime Minister, Yusuf Raza Gillani (extreme left) has engineered from the US. That the $230 million ‘upgrade’ money will be diverted to causes other than aircraft maintenance is a bygone diplomatic finality. That the upgraded F-16s can be well used to deliver bombs on ‘civilian’ territories speckled with spartan ‘terrorists’ resulting in more civilian casualties than terrorist ones, is a fact well proven in the past. But that these aircraft can be put to immediate use to show excessive love to Pakistan’s neighbours [Did someone whisper India?], is something that suspiciously seems to be the primary reason these F-16s are being bought in the first place.

But why would Bush, who has mentored the war on terror, want to do something like this? Well, the issue is simple. When it comes from the US, ‘aid’ is merely a transfer of funds, which is then routed back to US as the equipment are mostly bought from US vendors only. Consider this $230 million which Bush is planning to transfer to Pakistan; this money would help no one but Lockheed Martin, the original manufacturer of F-16s, in more ways than one.

The US Armed Forces have stopped procuring the F-16s a long time back as they are looking forward to the arrival of the fifth generation Joint Strike Fighter. So Lockheed Martin [read Bush] is trying very hard to sell off the remaining pieces to the third world and also make as much possible from the repair of the vintage artefacts that were sold nearly a couple of decades back. Had Bush been really serious about helping Pakistan in its war on terror – at the same time making money – he would have rather given Gillani the brand new AC-130 gunship, the one that the US has regularly used to attack Al-Qaeda in Somalia and Afghanistan. But then, there is no dearth of cash rich buyers for AC-130 gunships. Why waste a hot selling product over bad rubbish? Further, the moment Pakistan acquires the F16s, India won’t be far behind to order more armaments from the US.

All in all, the entire war on terror is nothing but a tool to help the US defence industry. In a CATO Institute Policy Paper (No-539), the famed Charles V. Pena writes, “The US could better fight the war on terrorism by investing in better intelligence gathering unmanned aerial vehicles, special operation forces and language skills... It is important to remember that the large US military with its forward-deployed global presence was not an effective defence against the 9/11 hijackers.” Yet, when the priority is maximising the profit of the US multinationals, who cares if the war is eventually lost or won, and who cares if millions of Pakistanis remain malnourished! Mr. Bush could well end up winning the Noble Piece Prize; er, for the pieces he’s made of this globe...

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

Monday, October 13, 2008

“India will fuel Cisco's growth in emerging markets...”

Cisco is looking forward to benefit from the transformational changes taking place in Indian industries across verticals
Naresh Wadhwa, President & Country Manager, India & SAARC, Cisco India, talks at length about Cisco's travails in the Indian market, as well as his own plans for the future in this exclusive interaction with B&E

B&E: Please elaborate on Cisco’s experience in India since inception?

Naresh: When we started off, we got involved in building teams, getting the right talent in and most importantly, dealing with the right partners.

We decided not to focus on big cities alone and moved beyond them.

That was the time when we decided to enter into security and wireless areas in a big way and formed incubation within our teams, which basically focussed on small virtual teams used to look at specialist technologies. In the next 3-4 years, the focus was on operational excellence. But achieving that was a problem because not only were we growing as a team but we were also growing as an eco-system. All along this while, new market verticals started developing like BPOs and call centres. The service provider market was highly de-regulated (BSNL being one of the exception). That was when ISP market opened, which brought in huge growth for us. The next phase for Cisco began when India got recognised as a global hub of activities. The Indian IT industry then became more visible outside the country. And Cisco India was playing a significant role not only due to the growth that we were seeing in this market but also because of some of the innovations we were deriving out of here.

B&E: How does the Indian market fit in with Cisco''s global strategy?

Naresh: India’s contribution as a percentage to Cisco''s global revenue is increasing for the past 12 years primarily because this is a growth market. So, if you are in a growth market and you are growing faster than the average, obviously your contribution as a percentage also increases. As India continues to transform and drive IT, our share will continue to grow. When I joined Cisco, we were not even a drop in Asia-Pacific, but today, we are recognised in the global market in terms of revenues. And this is not only true for Cisco but for the whole IT industry. Today, the Indian IT market is substantially larger than what it was a few years ago. As the market continues to grow, we will continue to have a larger share. So, from my perspective, it will not be an innovation hub ''only''. In fact, this will fuel Cisco’s growth in the emerging markets as well. If we are able to innovate and approve the models here in India, then other emerging countries will be willing to take that model. But the first phase of growth will happen here and then it will be transformational.

B&E: How have you gone about driving innovation in the Indian market?

Naresh: When Cisco entered the Indian market, it was highly de-regulated. To look at broader emerging company needs while sitting in the Indian market, we had to have an understanding of the domestic needs, which were not necessarily common across different countries. A lot of factors had to be considered while we were devising our strategies like how do we address the market, how will India act as a platform for globalisation and what was common between India and the remaining emerging countries. That culminated in setting up Cisco’s globalisation office in Bangalore, and today India is clearly designated as our second world office. Therefore, we have started to look for far more innovative solutions out of here. We are also looking at building an eco-system, which will take us to the broader emerging countries'' market and I think that is the way transformation has happened over a period of time.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

Saturday, October 11, 2008

The creator’s

7th day dream
God created the universe in six days and on the seventh day

when he was resting, he thought of a place where, as an ordinary human being, he would like to relax, a place free of the thrust and parry of daily rivalries, a place where relaxation will be the deserved reward of six days of toil, where indulgence will be free of guilt and each pleasure will be a trophy well deserved... Come to Bora Bora and feel the bliss of a well earned holiday, a place where you would feel like swallowing the sun and drinking the sea. Bora Bora is an island paradise about 160 miles northwest of Tahiti, undoubtedly, one of the most beautiful islands in the world. Bora Bora’s most spectacular facet is its azure, jewel-toned lagoon and the twin peaks which stick out from it forming a gorgeous view.

If relaxing on the seashore and watching crabs scoot through the sand isn’t the only thing you are looking for, then there are a variety of water sports, activities and boat trips to take part in on the stunning Bora Bora island. The high on adventure quotient snorkeling and scuba diving are fun, and if you have the heart for it, one can also opt for an excursion to feed the sharks and sting rays, if you please. Bora Bora’s waters are filled with all sorts of marine life, fish (the most colourful of them), sharks, sting rays and other sea creatures. Apart from the various excursions, most hotels offer snorkeling from their personal beaches – or even from your own room – if you happen to be in one of their overwater bungalows.

Bora Bora has charmed, stimulated and captivated visitors ever since these islands were first discovered. Visiting the Bora Bora islands is truly a remarkable experience that’s second to none. The allure of these islands is not only due to the cordial Polynesian people and their amazingly gorgeous islands, but also due to the authentic ambiance that exists here - the lush tropical sweet-smelling slopes where the valley blossoms with hibiscus and the palm trees encircling the lagoon like a queen’s delicate necklace.

It is often said that people who set sail for Bora Bora have been known to disappear from contemporary life entirely, never to return from the perfect white-sand beaches, which give way to the emerald waters. Undoubtedly the most fabulous amongst the Pacific islands, Bora Bora remains the island of all dreams.... So go ahead and live the dream called Bora Bora.

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative

Friday, October 10, 2008

‘Serb’ia & protect

Is Serbia breaking ties with Russia?

More than 50 years since its birth after the Treaty of Rome,

the European Union today proudly brags about being one of the strongest political communities with 27 member countries (and many more nations wanting to join the league). With the very recent pro-European victory in Serbia, do we see Serbia joining the leagues of the rest of the Balkan countries to become an EU-certified entity? If that were to happen, there’s one nation that wouldn’t really be amused – Russia (oopsssss...); what with Russia lending a hand to Serbia while dealing with the fragile Kosovo situation (although the objective of being such a Good Samaritan was purely economic considering trade between the two touching $2.7 billion and of course with the more recent Energy Co-operation Agreement between them).

If Serbia was to join the EU ranks (on invitation of the French President), it would mean a minus from the Russian sphere of influence! Despite a lot of nationalists opposing it, the chance to associate with the likes of Germany, France & Italy is a huge chance for Serbia to augment its credentials as the Balkan Tiger. Putin wouldn’t be smiling about it though!

For Complete I I P M Article, Click on IIPM Article

Source : IIPM Editorial, 2008

An IIPM and Professor Arindam Chaudhuri (Renowned Management Guru and Economist) Initiative