Showing posts with label IIPM Best B School. Show all posts
Showing posts with label IIPM Best B School. Show all posts

Monday, July 29, 2013

Smokers, cough up more

 The Saradha scam will further aggravate Bengal’s economic crisis

The unraveling of the Saradha scam in West Bengal could not have come at a more inopportune time for Chief Minister Mamata Banerjee. It has only confirmed the growing perception that the state is in the throes of severe misrule and inept governance at the hands of Didi and her Trinamool Congress Party. Even if we ignore the obvious links between the TMC and Saradha supremo Sudipto Sen, Banerjee's actions in the wake of the scam have only earned her further ridicule and derision.

Even if there is nothing wrong in bailing out the financially-fleeced victims, why impose a tax burden on people who had nothing to do with Saradha's misdeeds? Banerjee plans to raise Rs.150 crore from imposing an additional levy on cigarettes (which seems to be sensible) and the remaining Rs.350 crore (of the Rs.500 crore liability incurred by depositors) from the raised petro-prices. These higher taxes come close on the heels of the recent hike in VAT slabs in the state. However, the additional levy on cigarettes is sure to pinch a lot of pockets considering that taxes were raised by 5 percent only a month ago. Even though Banerjee is well within her rights to increase taxes on items she feels merits such an imposition, she also has a moral responsibility to ensure that the money earned is well spent.

But that does not appear to be the case. Instead, Didi's populism has been a key factor in straining the government's budget to breaking point. The state's subsidy figure has already jumped to Rs.2171.56 crore in the current fiscal from Rs.1512.95 crore in 2012-13. Much of this is being squandered on populist programmes, ranging from extending dole for unemployed youths to compensating imams of the mosques (directly linked to vote bank appeasement).

Such spendthriftiness could have been condoned only if the state was not staring at bankruptcy – a distinct possibility given the debt figure of Rs.49366.65 crore and administration’s struggle to meet its wage liability of Rs.42,000 crore.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles

Thursday, June 6, 2013

Sitting ducks in jails

Failure to protect the lives of prisoners is reprehensible.

The death of the Indian prisoner Sarabjit Singh in Lahore jail and the subsequent reactionary attack on Pakistani prisoner Sanauallah in KotBalwal jail in Jammu & Kashmir are the kind of grisly incidents that could easily have been prevented. Though there is no denying the fact that both India and Pakistan share a bitter history, a humane treatment of each other's nationals in custody is something that the two countries need to follow if only to meet the bare requirements of basic civilization norms and those of international jurisprudence, compassion and security. However, Pakistan's conduct in this matter has been particularly egregious.

Singh’s story bears out Pakistan's callousness in the way it treats Indian prisoners lodged in its jails. Given the fact that at the time of the attack Singh had already acquired the status of a high-profile prisoner, one would have expected the Pakistan government to have ensured that Singh was accorded maximum security so that an untoward incident damaging bilateral relations could have been avoided. Instead Pakistan chose to ignore the death threats and kept him in prison without the necessary security.

Though the subsequent retaliatory attack on Pak prisoner Sanauallah is no less regrettable, the attenuating feature is that it was at least not premeditated as in Singh's case. Prima facie, it appears to be a case more of personal acrimony, which went out of hand. But India has at least allowed officials from Pakistan to meet the injured prisoner. On the other hand, Sarabjit’s vital organs were found removed when his body was handed over to India.

As in the case of Sarabjit, Indian prisoners in Pakistani jails, of whom there are about 800 languishing, are allegedly subject to humiliation and third degree torture. The ones who are lucky to come out alive have gory tales of horror to relate. Quite a few of them, who have come out of incarceration, have been found to have gone soft in the head.

Islamabad and New Delhi need to learn lessons from Singh’s and Sanaullah's tragic saga and accord importance to an issue that both had been wishing away. Both sides need to evolve a prisoners’ policy, including consular access and a monitoring mechanism of their physical status and safety. It's unfortunate that India does not have this kind of bilateral agreement with many nations, including Pakistan.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Tuesday, June 4, 2013

Karin Cook to Her Mother

In 1989, 52-year-old Long Island resident Joan Cook Carpenter passed away after succumbing to breast cancer — a battle which she had chosen to keep from her loved ones until her final days. In 1999, a decade after Joan's death, her 29-year-old daughter, Karin, wrote her the following letter. Karin wrote an award-winning novel partly inspired by the experience, titled What Girls Learn, in 1998.

November, 1999

Dear Mom,

What time was I born?
When did I walk?
What was my first word?

My body has begun to look like yours. Suddenly I can see you in me. I have so many questions. I look for answers in the air. Listen for your voice. Anticipate. Find meaning in the example of your life. I imagine what you might have said or done. Sometimes I hear answers in the echo of your absence. The notion of mentor is always a little empty for me. Holding out for the hope of you. My identity has taken shape in spite of that absence. There are women I go to for advice. But advice comes from the outside. Knowing, from within. There is so much I don't know.

What were your secrets?
What was your greatest source of strength?
When did you know you were dying?

I wish I had paid closer attention. The things that really matter you gave me early on—a way of being and loving and imagining. It's the stuff of daily life that is often more challenging. I step unsure into a world of rules and etiquette, not knowing what is expected in many situations. I am lacking a certain kind of confidence. Decisions and departures are difficult. As are dinner parties. Celebrations and ceremony. Any kind of change. Small things become symbolic. Every object matters—that moth-eaten sweater, those photos. Suddenly I care about your silverware. My memory is an album of missed opportunities. The loss of you lingers.

Did you like yourself?
Who was your greatest love?
What did you fear most?

In the weeks before your death, I knew to ask questions. At nineteen, I needed to hear your hopes for me. On your deathbed, you said that you understood my love for women, just as you suggested you would have fought against it. In your absence, I have had to imagine your acceptance.


There are choices I have made that would not have been yours. Somehow that knowledge is harder for me than if I had you to fight with. My motions lack forcefulness. I back into decisions rather than forge ahead. This hesitancy leaves me wondering:


I search for information about your life. Each scrapbook, letter, anecdote I come across is crucial to my desire to understand you and the choices you made. I have learned about affairs, abuse, all things you would not have wanted me to know. Yet they explain the missing blanks in my memory bank and round out your humanity.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Sunday, June 2, 2013

365 Days of Solitude

Akhilesh Yadav is being written off as a failure by the Delhi media. What is the reality? Anil Pandey and Avinash Mishra look beyond the headlines 

Great expectations often lead to bitter disappointments. Contemporary political history in India is littered with examples. Back in 1977, when the badly underestimated and maligned Indian voter threw out Indira Gandhi in the aftermath of the Emergency, the new Janata Party government was expected to transform Indian politics, governance and India. Nothing of the sort happened. In 1985, a battered and bruised India looked up at Rajiv Gandhi as the new hope. Bofors killed those hopes and dreams. Then came the messiah V.P. Singh who was expected to clean up the

Augean stables and banish corruption. He turned out to be a false prophet.

Is something similar happening with Akhilesh Yadav? For most of 2011, when the mainstream media in Delhi was obsessed with Rahul Gandhi and his plans to revive the Congress in Uttar Pradesh, the 39 year old Akhilesh Yadav was touring the state on a bicycle and connecting with both party workers and voters at the grassroots level. His low profile and unsung travels were similar to what the late Y.S Rajasekhara Reddy did in Andhra Pradesh when the mainstream media was obsessed with Chandrababu Naidu and his computer gimmicks. When results of the assembly elections were announced in March 2012, both the mainstream media and Rahul Gandhi were stunned. Suddenly, hacks in Delhi "discovered" how Akhilesh Yadav promises to transform the rotten state of affairs in UP. He became Shiela Dixit, Narendra Modi, Shivraj Chauhan, Raman Singh and Naveen Patnaik rolled into one.

And now, the same set of Delhi hacks seem to have written off the man. His first year as Chief Minister has been projected as a year of communal malice, of the return off the goons, of lawlessness and of the worst kind of corruption and governance. Many think Akhilesh Yadav has missed his date with history; his ambitions and plans gobbled and crippled by contemporaries of his father Mulayam Singh Yadav who just won't allow him to deliver good governance.  But hold on, has he been a failure all the way? Is he reaping the curse of great expectations? And is he a victim of the Delhi media that applies different yardsticks to judge the Congress and other governments? As it happens, there is an element of truth in all three presumptions. How much importance you give to each presumption depends on your ideological prejudices.

In a gleaming white kurta and pyjama and his trademark black jacket and sneakers, Akhilesh Yadav greets us effusively at his home on March 15, at 10.30 AM. The walls are adorned with paintings of Lucknow chikan work and the room is very simple looking without any gaudy displays of power and wealth. That typically impish and charming smile is intact, though the eyes clearly reflect shadows of the weight of power. But even cynical journalists can see that his earnest manner and his passion for the state is not a made for camera cameo. This man is real and he means what he says.

Akhilesh is no doubt perturbed by the manner in which the Delhi media has slammed his performance as chief minister. He feels that even one law and order situation or event makes the media completely forget the intentions and achievements of his government. But in his quietly confident manner, the young leader says that the policies and steps he has initiated will have a transformative impact on the State in the long term.

Just a few days before Akhilesh met us for this story, he had unveiled one such transformative step. At a huge public function attended by thousands, he had distributed the first set of laptops to students who had finished their plus two studies. About 10,000 laptops were distributed that day. Akhilesh gets emotional when he describes to us how girls wept with joy after getting their laptops. He is hurt by media reports that highlight only things like his image on the screen savers and how some students are selling their laptops. He says, "I am convinced this step and the one to provide all class ten pass students with tablets, will bring about a massive change. But that change will not happen overnight. It will be a few years before the impact can be seen. Just imagine how the education and careers of an entire generation will be positively impacted. Not just that. The tablets and laptops will benefit entire families including poor farmers with weather forecasts." The Akhilesh government is committed to providing free tablets to all students clearing class 10th and free laptops to all students clearing class 12th. This year alone, his government will distribute 26 lakh tablets and 15 lakh laptops.

And this will happen year after year. One such beneficiary is Rambha Gupta, an 18 year-old physically challenged girl from Gorakhpur whose father Devi Prasad is a poor farmer. "I had never dreamt of ever owning a laptop," says Rambha who still cannot believe her luck. Akhilesh has a committed voter in Rambha who gushes about how the Chief Minister walked up to her and personally handed over the laptop. You can do your electoral math and figure out how educated and laptop cum Blackberry lugging aides of Akhilesh describe this as a game changer. More than 40 lakh beneficiaries a year becomes tens of millions of voters if family members are added. Seeing the passion and conviction with which Akhilesh talks about this scheme, we have to grudgingly agree that the Delhi media has only trivialized this policy.

Another game changer is something that Akhilesh seems to have borrowed from  Shiv Raj Singh Chauhan of Madhya Pradesh and Nitish Kumar of Bihar. And that is provision of cash incentives to girls for higher studies. One scheme is called Kanya Vidyadhan Yojana under which all girls from economically backward families will get a sum of Rs 30,000 on clearing plus-two. This is indeed a huge incentive. In the long run, tens of millions of young girls and their families will benefit from his scheme. According to aides of Akhilesh, Rs 30,000 may seem a small sum to Delhi media, but has the potential to transform lives in rural UP. Another scheme for the girl student called "Padhen bitiya, badhein bitiya"  will have an even bigger impact. All girls from poor families will get a cash scholarship of Rs 30,000 on making it to class 11. These two moves will have a tremendous impact on human development indicators in the long run.

Says Abhishek Mishra, former professor of IIM, Ahmedabad and a Cambridge University alumni who is now a minister in the Akhilesh government, "Parents used to traditionally stop the education of their daughters after class 7 or 8. This one scheme will transform an entire generation." According to Mishra, all poor girls getting admitted in engineering and medical colleges in UP will be exempt from fees, apart from getting cash scholarships. Quite clearly, this is a win-win situation for everyone and will definitely change the social structure of the State in about a decade. And of course, Akhilesh and his team are banking on the fact that like laptops and tablets, cash scholarships for girl students will create a constituency of committed voters.

Yet another potential game changer is the unemployment allowance that is being provided to the youth of the State. According to this scheme, all educated and unemployed youngsters are entitled to a Rs 900 per month allowance till they get a job. This will be applicable to all those who have registered themselves as unemployed with the State. There is little doubt that this is a populist move aimed at creating new vote banks for the Samajwadi Party.  Says Professor A. P. Tiwari, Dean Academics of Dr. Shakuntala Mishra Bishwavidyalaya, "The dole is a good idea. But in the long term, what will really matter is the creation of employment opportunities that can come manly in the farm sector." Many analysts think that this dole will reduce frustration and crime, and create a positive scenario for volatile youngsters.

Akhilesh, who is himself a computer and Internet buff who likes sending mails and Blackberry messages, seems to have learnt some historical lessons from the experience of former Andhra Pradesh Chief Minister Chandrababu Naidu whose political career seems to be in the doldrums. While emphasizing the importance of computers and e-governance and e-initiatives, Akhilesh seems to be betting on agriculture and the farm sector to boost the economy of the State. Says Akhilesh, "In our budget, we have allocated 74 percent of funds for poor farmers and villages." With this move, he seems to be taking a leaf out of the book of Chhattisgarh Chief Minister Dr. Raman Singh who has invested heavily in agriculture and reaped handsome electoral dividends. Also taking a leaf out of the UPA regime, the Akhilesh government has waived off farm loans worth about Rs 1000 crore.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Thursday, May 30, 2013

Book Review: Ash in the Belly: India's Unfinished Battle against Hunger

Silent suffering

India in the 21st century surges ahead, impatient to claim its long-sought status as an economic giant, with a burgeoning middle class. Confident and predatory, Indian business leaders stalk the world for new corporate acquisitions. According to Forbes, the combined wealth of India’s fifty-five wealthiest people was $ 246.5 billion in 2011. Between 1996 and 2008, wealth holdings of Indian billionaires are estimated to have risen from 0.8 per cent of GDP to 23 per cent. Yet it is an irony that India is also home to the largest number of impoverished people who sleep on an empty stomach in the world’s largest producer of milk and the second-largest wheat grower.

Often neglected by the government and dismissed by the middle class, 360 million poor people estimated by Planning Commission are around us in our films, literature, poetry and find a mention in  election manifestos and budget speeches at regular intervals. Even now our attention is diverted when 24x7 electronic media invades the countryside with their intrusive cameras and accusatory interrogation to break exclusive stories of starvation deaths.

Harsh Mander, the author of Ash in the Belly, has fought a long battle to put an end to hunger – as a former bureaucrat in districts of central India, a member of the Sonia Gandhi-led National Advisory Council and as a food security campaigner along with noted activists like Kavita Srivatsava, Jean Dreze, Colin Gonsalves and Biraj Patnaik, among many others.
Alternating between analyses and harrowing life-cycle tales of hunger narrated by destitutes from intensely food-insecure social groups in eight villages in Odisha, Rajasthan and Andhra Pradesh, Mander, in his book, attempts to uncover the political economy of hunger in India, its sociology and psychology and the achievements and failures of public policy in battling its occurrence.
 
The book moves the reader enough even before one embarks on the first chapter as the author’s note and prologue establishes how hunger, reality of millions of Indians, is insufficiently acknowledged except by those who are condemned to live with it.
Gajalachmi, 32, a widow from dalit Madiga caste of Andhra Pradesh in Medak district, died of hunger and caught in the vicious cycle of debt. In death, she had to be buried as she had lived without solace and dignity. “And without even a fistful of rice,” notes the author.

Though hunger is an unremitting way of life in India, Mander warns us not to reduce people living with hunger to statistical ammunition, subjecting their suffering and valiant resistance only to cold economics of costs and benefits, and calculus of calories.

A group of women of the Musahar community in Uttar Pradesh, Mander recalls in their conversation that the most terrible of lessons that each one has to teach her children is the lesson about how to sleep hungry. “If they are small, we sometimes beat them until they sleep. But as they grow older, we try to teach them how to live with hunger. This lesson will equip them for a lifetime. It will be their companion for the rest of their lives”.

Similarly Antamma in Andhra Pradesh, widowed early, only begged once for the leftovers from the government-funded school meal for children. Soon she was torn by guilt afterwards that she had eaten the children’s share.

One wonders how India could be on a trajectory of higher growth often highlighted by policy-makers when millions of children, women and men go to sleep hungry every night. Anyone complacent about the development that India has achieved should read this compelling and insightful book that reminds us that the right to food with dignity is indeed the right to life.
Though these tales may evoke sympathy, they equally reminds us that a much larger population who struggle daily to feed their families and themselves co-exist with readers and policy makers who gloat over shining India or high growth story.
“People living with hunger are not helpless – pitiable and passive receptacles of charity agents and state largesse – but are active agents with often sturdy spirit and humanity, who stoically endure want and oppression,” Mander writes, while passionately arguing for the passage of a universal right to food law which guarantees food to all persons not as State benevolence but as a legal entitlement.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

Wednesday, May 8, 2013

The seven things that surprise new Chief Executives

Harvard Business School professors Michael E. Porter, Nitin Nohria and Jay W. Lorsch, write on surprises that new CEOs get at the workplace

Most new chief executives are taken aback by the unexpected and unfamiliar new roles, the time and information limitations, and the altered professional relationships they run up against. Here are the common surprises new CEOs face, and here’s how to tell when adjustments are necessary.

Surprise One:
You Can’t Run the Company

Warning signs: You are in too many meetings and involved in too many tactical discussions. There are too many days when you feel as though you have lost control over your time.

Surprise Two: Giving Orders is Very Costly

Warning signs:
You have become the bottleneck. Employees are overly inclined to consult you before they act. People start using your name to endorse things, as in “Frank says…”

Surprise Three: It Is Hard To Know What Is Really Going On Warning signs: You keep hearing things that surprise you. You learn about events after the fact. You hear concerns and dissenting views through the grapevine rather than directly. Surprise Four: You Are Always Sending A Message

Warning signs: Employees circulate stories about your behaviour that magnify or distort reality. People around you act in ways that indicate they’re trying to anticipate your likes and dislikes.

Surprise Five: You Are Not The Boss

Warning signs: You don’t know where you stand with board members. Roles and responsibilities of the board members and of management are not clear. The discussions in board meetings are limited mostly to reporting on results and management’s decisions.

Surprise Six: Pleasing Shareholders Is Not The Goal

Warning signs:
Executives and board members judge actions by their effect on stock price. Analysts who don’t understand the business push for decisions that risk the health of the company. Management incentives are disproportionately tied to stock price.

Surprise SEven: You are still only human

Warning signs:
You give interviews about you rather than about the company. Your lifestyle is more lavish or privileged than that of other top executives in the company. You have few – if any – activities not connected to the company.

Implications for CEO Leadership

Taken together, the seven surprises carry some important and subtle implications for how a new CEO should define his job.

First, the CEO must learn to manage organisational context rather than focus on daily operations. Providing leadership in this way – and not diving into the details – can be a jarring transition. One CEO said that he initially felt like the company’s “most useless executive,” despite the power inherent in the job. The CEO needs to learn how to act in indirect ways – setting and communicating strategy, putting sound processes in place, selecting and mentoring key people – to create the conditions that will help others make the right choices. At the same time, he must set the tone and define the organisation’s culture and values through words and actions – in other words, demonstrate how employees should behave.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles

Tuesday, May 7, 2013

The worst ceos of 2012 and why smart ceos make bad decisions

CEOs today face far greater challenges than just perfecting the art of outperforming bottomline target estimates quarter after quarter. From keeping activist shareholders at bay, to satisfying consumers who demand innovation at the blink of an eye, today’s Chief Executives have their hands full. Not surprisingly, many of these highly-regarded strategists stumble. Prof. Sydney Finkelstein, Steven Roth Professor of Management, Tuck School of Business, writes on why such business leaders fail

2012 has been an eventful year as far as business is concerned. The global economy was stuck somewhere in between managing a full blow financial crisis on one hand and dealing with its after-effects on the other. However, this year did give CEOs an opportunity to reconsider changes that had been impacting their businesses and reinvent in response. And I would say that this is one area where business leaders have faced a great deal of trouble.

For many CEOs, adapting to change – especially dramatic and technological change – is disturbing. Companies like Motorola, Research in Motion and Kodak had to deal with big changes in the recent past mostly due to technological shifts in the economy and their respective industries. What they’d been doing effortlessly in the past stopped working. And unfortunately, they continued doing what made them successful in the first place. Business model innovation is a tricky proposition because even from a psychological point-of-view, it’s difficult to stop doing something for which one has been amply rewarded – and consistently so – in the past. However, the repercussions of not adapting are evident. Motorola was acquired by Google (not for a great line-up of products but more so for the patents), Kodak filed for bankruptcy and Research in Motion is struggling to sustain operations.

Nevertheless, there have been two chief executives in particular who, despite their short tenures, have demonstrated phenomenal leadership and a strong strategic outlook. Marissa Ann Mayer of Yahoo! and Tim Cook of Apple definitely stand out this year.

If you consider Meyer, she’s really given Yahoo!! a shot in the arm. She’s given the company a sense of purpose and if you ask employees and shareholders at Yahoo! today, they’ll tell you that they have much more confidence in the future direction of the company. In recent past, she has proved herself a leader at one of the most successful Internet businesses of our times – Google. And currently, that shows in her understanding of strategy. There is clear consensus now that Yahoo! is a media company – something which previous CEOs could not clearly establish. Further, Meyer has started unlocking some value that lay dormant in Yahoo!’s assets.

On the other hand we have Tim Cook, who has put up a commendable performance at Jobs’ exit. He launched the iPad Mini (despite Steve Jobs’ belief that the market wouldn’t like a small tablet) demonstrating that he is ready to adapt and change. He also had the courage and honesty to accept that Apple Maps was a mess. Some critics have been blaming him for the loss in the stock value of the company. But I don’t see how he’s responsible for any of that. Agreed that Apple didn’t launch a freakishly great product, but the iPhone 5 still sold record units. Apple’s market capitalisation is a case study in itself. To justify such high valuations, you literally need to reinvent the world. And I think Cook has done a fairly decent job till now. He deserves a little more time to demonstrate something even better.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
BBA Management Education

Friday, May 3, 2013

"Our competitors are... good people!"

Life for S. D. Shibulal, CEO & MD, Infosys Ltd., hasn’t been particularly smooth since he took over the helm. With volatility in the environment persisting and Infosys’ growth engine hitting a speed bump, Shibulal is under severe pressure to bring in numbers that cheer the market in the short term. However, as he reveals to Virat Bahri, Editor, B&E, these pressures aren’t on his priority list

B&E: The Infosys 3.0 transformation was launched some time back. Where do you stand with respect to its impact on your numbers?
S. D. Shibulal (SS):
We have completed our strategic transformation. ‘Building tomorrow’s enterprise’ is a framework for innovation and co-creation. We organised ourselves completely into global industry verticals with new leadership in place. The strategy is in place, and we have a new structure and new leadership in place. We are purely in the execution mode. At the same time, where we started the transformation, we were coming out of the high of 2009; the environment was much more stable. Today, it is much more volatile. So actually, there are some delays in realising the benefits of the transformation; but we are confident that in the medium to long term, we should be fine. In any kind of transformation, you look at early indicators, but receipts are getting delayed. So we look at other early indicators. Traction is excellent with respect to our clients. We have conducted 50 plus workshops on building tomorrow’s enterprise with CXOs. Look at some of the wins we have announced like Atlas Copco & United Laboratories – some of them are driven by our workshops. Airtel and India Post are also driven through our innovation process. We have built a $380 million TCB on our products and platforms, which is a very strong booking. It is a new and different business. In a KPMG survey, we were ranked the most innovative in India. A recent Forrester report has also completely endorsed our strategy on IP & asset-based service portfolio.

B&E: There are challenges in the short term in your key verticals. What is your outlook?
SS:
Retail is doing well for us. We are very well recognised in the digital market – digital commerce & social commerce. We have a SocialEdge platform for social commerce, a BrandEdge platform for marketing solutions and a TradeEdge platform for international business. We have strong service as well as IP capability in that space. Retail is growing above company average. Manufacturing is another industry where we are seeing very good traction and mostly in the business and IT operations space. Harley is a good example of that and so is Syngenta. In manufacturing, our wins are driven by the drive for efficiency in operations as well as IT. Financial services remains an area of challenge, especially capital markets. We have a higher dependence on financial services, where revenues are not going up. There are regulatory problems in a volatile situation and there is an enormous amount of focus on cost. So we continue to be challenged. In the Energy and Utility Communications Services provider space – there the segment in communication services has been an issue for us. Now we are increasing our investments in wireless and cable, where the spend is happening. So we expect medium term gains.

B&E: Critics lament your focus on margins, which make it hard to grow. How relevant is that?
SS:
One thing you must remember. People link price and margin directly. Margin is a reflection of the company’s aspirations, philosophy, efficiency in operations, how do you manage, et al. So onsite-offshore ratio will impact margins. Utilisation will impact margins; the pyramid structure will impact margins. Currency will impact margins and so will portfolio. Some services have higher margins. Even client choices impact margins. We should delink the two. Everything that we do is to meet our aspirations. Our aspirations are to have above industry average growth and to have leading margins. I am having this margin conversation for the last ten years, or even longer. There is no guarantee for the future. But with our new focus areas – building tomorrow’s enterprise, balanced portfolio, global verticals, increasing consulting and system integration, products and platform strategy – it’s all going to meet our aspirations for the future.

On the price front, we are quite flexible. You have to look at your portfolio and your strategic clients. You don’t walk out of a deal with a strategic client because price does not meet by say 50 cents. Today our industry verticals have full flexibility with respect to pricing decisions.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman

ExecutiveMBA

“There are certainly more drivers apart from price”

Dr. Manish Gupta, Director – IBM Research, India asserts that innovations for the Indian market aren’t only about bringing down the price points

B&E: IBM has been driving a lot of R&D activity from India. What is your view on reverse innovation potential from this market?
Dr. Manish Gupta (MG):
I am not parochial in this regard. I am not claiming that innovation will only happen here, it will happen in all parts. I feel that cost is just one aspect, and we in India often make the mistake of equating innovation with low cost. A lot of times, people talk about how can you bring down the cost. That’s only one form. In our work, we have seen several different drivers for ‘reverse innovation’. They can be related to the scale and price point, and they may simply be linked to different needs unique to the Indian market, which does not mean they are necessarily low cost. I prefer to use the term leapfrog innovation for this kind of innovation, where you have to rethink a solution, take a different approach to solving a problem, and then you can apply the same ideas to other markets.

B&E: What drivers do you see that will enable more of such innovation coming from India?
One driver is often scale, which many other people have pointed out. Often, the scale of what you see in a country like India and China is much higher as compared to the US. One example is what our own lab colleagues have done in the context of telecom accounts. As you know, IBM provides the entire IT infrastructure for telecom companies like Bharti Airtel and Vodafone. We deployed a solution in one of the telecom accounts in India I cannot name. We developed a first of a kind solution where instead of having different kinds of analytics applications working on their own copy, of what is call detail record data, we have brought in a streaming data solution. As the data gets generated, even when the data is new, different apps start their own processing. You have the data flow through different applications. While it was driven initially by scale & price point, it delivered some real business value, as the company can now access the same day’s data rather than the four days old data it accessed earlier. It has been pitched to the likes of AT&T, et al.


Source : IIPM Editorial, 2013.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles

Friday, April 19, 2013

“We see a significant potential in India’s supercar market”

The niche luxury car category is now becoming the new battleground in the Indian auto story. Over the past year, super premium sports cars like Bugatti Veyron, Ferrari, Aston Martin, Bentley, Jaguar, BMW, Porsche, Koenigsegg and Lamborghini have all hit the Indian roads.

This past November, Italian marquee Automobili Lamborghini launched its latest supercar Aventador LP 700-4 in India, priced at 36.9 million rupees ($750,000) and available at outlets of Exclusive Motors, the sole partner for selling the Italian supercar brand in India. James Page, Marketing Manager at Lamborghini SPA of South East Asia and Pacific, talks to B&E’s Deepanshu Taumar about how he sees the market for super luxury sports cars growing in India and the completely new level of performance and sets of standards that the Lamborghini Aventador offers in the sports car category.

B&E: What kind of strategy are you putting in place for selling a super expensive car like the Lamborghini Aventador LP-700-4 in India?
James Page (JP):
Our strategy in India will definitely be aggressive and we will expand our network and ramp up our marketing. Our relations with Exclusive Motors have been good and Satya Bagla (MD of Exclusive Motors) has been a great partner. We believe the alliance will pay off handsomely and show up good numbers in terms of unit sales. Exclusive Motors has already got us 20 bookings of the car within days of its launch in the country.

B&E: How do you plan to create a market for a mega expensive sports car in the country? What kind of sales numbers are you looking at in India?
JP:
We will do it step by step. We have already started delivering to our initial customers. From research and development at Lamborghini Houston (service centre) to bringing the car to market - it’s been pretty tiring so far but we are going about it in a surefooted manner. Right now getting the first few units out for our early customers is the company’s main priority. We will continue to deliver the units and take more orders on a year-on-year basis. Exclusive Motors has recorded 20 bookings of Aventador and new customers will have to wait for 18 months for the delivery of the car. Since March onwards – when Aventador LP700-4 was introduced to the world – 1500 cars have been booked worldwide. We are aiming to sell 100 cars annually in India.

B&E: Every country is different and unique in terms of consumer buying behaviour. What do you think Lamborghini has to offer that will win it potential customers in India?
JP:
We want to meet the expectations of our prospective customers from different parts of the world. Basically our strategy is to be aggressive but in a good way. Our first step is to show the people our car. We get them on the wheels to experience the emotions that comes while driving the car. This makes them feel and experience the Lamborghini brand values. We are an Italian car brand with extreme and uncompromising value propositions. The design of the car is really aggressive and is based on aeronautics. This has been done so that our customers get to feel that owning a Lamborghini brings with it a whole lot of emotions that are different from owning any other supercar. This unique emotional bonding and identification with the brand is what Lamborghini is all about.

B&E: How has Lamborghini been performing in the Asian markets as compared to the developed markets?
JP:
China is becoming the No.1 market for us in the world. Five years ago, we were able to sell only a handful of cars (five cars maybe). Now by this year-end, we are on course to sell more than 300 cars. So you can see the ground we have covered and the kind of growth we have been able to achieve in China. India may not grow that fast but we still see a significant potential in the country. This is evident from the success of Formula One and the kind of response we are getting from the market here.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
For More IIPM Info, Visit below mentioned IIPM articles
 

Monday, April 15, 2013

B&E Indicators

A bumpy road ahead?

The world economy is set to slow down in 2011, as government and central bank policies are tightened and key developed markets go through a deleveraging process. While both US & Europe are trying to avert a financial collapse, Japan has already lapsed back into recession after a devastating natural disaster. Considering this, IMF projects the world growth at around 4% in both 2011 and 2012, down from over 5% in 2010.

The Japanese effect pulls down averages

World trade has come under pressure in recent months, due to the tightening of interest rates in emerging markets and the disruption to production experienced as a result of the Japanese earthquake. The disaster disrupted supply chains not only within Japan but also internationally, particularly in the automotive sector. However, economists expect this to be a temporary blip, as opposed to a long term drawn out affair.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 
2012 : DNA National B-School Survey 2012
Ranked 1st in International Exposure (ahead of all the IIMs)
Ranked 6th Overall

Zee Business Best B-School Survey 2012
Prof. Arindam Chaudhuri’s Session at IMA Indore
IIPM IN FINANCIAL TIMES, UK. FEATURE OF THE WEEK
IIPM strong hold on Placement : 10000 Students Placed in last 5 year
IIPM’s Management Consulting Arm-Planman Consulting
Professor Arindam Chaudhuri – A Man For The Society….
IIPM: Indian Institute of Planning and Management
IIPM makes business education truly global
Management Guru Arindam Chaudhuri
Rajita Chaudhuri-The New Age Woman
IIPM B-School Facebook Page
IIPM Global Exposure
IIPM Best B School India
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Saturday, April 13, 2013

B&E This Fortnight

INTERNATIONAL
BUSINESS, ECONOMY & FINANCE
Hello moto!


In a move that will instigate its full fledged entry into the telecommunications hardware business, the global search giant Google is set to buy Motorola Mobility for a staggering $12.5 billion. If approved, this will be Google’s most expensive acquisition ever. The deal will boost Google’s mobile OS – Android. Since its launch in 2007, Android has been installed in 150 million devices. Further, more than 550,000 devices join the Android ecosystem daily through a wide network of 39 manufacturers and 231 carriers spread over 123 countries. It’s an all cash deal where in Google will be paying $40 a share – a 63% premium. The deal will put Google in the competition zone with Apple, Nokia and Research in Motion, resulting in significant competitive advantage. The deal is supposed to close by end of this year or early 2012 subject to regulatory approvals in the US and EU. Even after the deal, the Android platform will remain open source as Google plans to operate Motorola Mobility as a separate business entity. The mobile major currently holds around 17,000 patents and the deal will enable Google to better protect Android from anti-competitive attacks from Microsoft, Apple, and other companies. The development will create phenomenal synergies that would enhance the Android ecosystem.

AIG sues BofA
American International Group (AIG) has filed a $10.5 billion lawsuit against Bank Of America (BofA) over the sale of residential mortgage backed securities that are allegedly marred by fraud, misrepresentation and omission. The claim, which is one of the largest to raise its head in the aftermath of the 2008 financial crisis, blames BofA and its subsidiaries to have issued defective mortgages to borrowers who were not in position to repay, packaged them into supposedly low risk securities and sold $28 billion worth to AIG using offering documents that misrepresented the quality of the loans. Despite the huge losses incurred from the collapse of the mortgage market, very few claims have been filed over the past three years. Last year, Goldman Sachs paid $550 million to settle allegations from Securities and Exchange Commission (SEC) for its alleged fraud in marketing of mortgage backed securities called Abacus, which the company did not admit doing.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
 
For More IIPM Info, Visit below mentioned IIPM articles
 

Wednesday, March 6, 2013

‘Slym’ing down is no more a priority for the ‘Beast’

GM has long realised that it cannot wish away India if it plans to stay in the Asian reckoning. But while it has been a leader in China, the intensely competitive Indian market is yet to take off for GM. Pawan Chabra drills and grills GM’s MD Karl Slym for a deeper look into how the company plans to change that orientation

Barack Obama’s entourage to India will include a whopping representation from 215 large and mid-sized American companies, who will seek to further the blooming American business interests in the country. Taking him around during his three day visit will be the Beast, a fortress that is disguised as a Cadillac, which is America’s First Limo. It is regarded as the world’s most advanced vehicle in terms of security, one whose myriad features are a closely guarded secret – held by its manufacturer and the US Secret Service.

As the Beast rumbles into India with the world’s most powerful man as its occupant, it carries a symbolic appeal for GM as well; being one of the many American businesses that have sought and attained welcome respite from their diving fortunes in the Indian market. And just like Barack Obama, GM’s expectations from its India connection are now reaching unprecedented heights, as Karl Slym, MD & President, GM India, would excitedly tell me.

In fact, the past three years that Slym has been in the Indian market have been full of action, both in India and back home in US. In his tenure, the parent company back in Detroit made its way to Chapter 11 reconstruction. For GM India – and for Slym personally – that time was perchance the worst as a significant number of prospective GM customers, worrying whether GM India would continue if GM global collapsed, either delayed their purchases or simply shifted their preferences. Slym smiles wryly as he reminisces to me the tough decisions he took to ensure that the business in India did not take a hit because of the problems back in the US. Be it the decision to be himself the brand ambassador of the company in the ‘There for you – There for India’ campaign or the host of other activities that the company carried out, Slym tells me he’s very much confident that Chevrolet now stands as one of the most promising brands in the Indian automobile circuit. Now that the bankruptcy woes are almost over and GM has made a comeback in both India and back home, the company is focused on larger objectives. After the company got the third cousin in the small car segment in January this year in the name of Beat, the battle for a much larger market share in India is very much on.

Numbers seem to flowing well for Slym. As per the J.D. Power Asia Pacific 2010 India Vehicle Dependability Study, the Spark and U-VA model of the company have topped the vehicle dependability index in their respective segments. As compared to the total sales of 87,000 that the company made in the financial year of April-March 2010, GM India has sold close over 51,000 vehicles in the first six months of this financial year. Slym is seemingly confident of the fact that he will be able to break the one lakh tag this fiscal year. “We expect to sell 2,00,000 units by the end of 2012 and 300,000 units by the end of 2013,” says Slym.


Source : IIPM Editorial, 2012.
An Initiative of IIPM, Malay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles

 

Tuesday, March 5, 2013

B-SCHOOL SURVEY PANEL MEET, 2010

August 12, 2010, saw Planman Media and Business & Economy magazine play host to eminent corporate personalities of India, in a Panel Meet discussion, for Business & Economy magazine’s highly coveted annual issue – India’s Best B-Schools Special Issue 2010. The most unique element about the B&E B-school ranking is that in this particular ranking, the B-schools are ranked by renowned industry leaders (please refer to ‘List of 20 Panel Members’ section for the names of panelists). The final list of 30 B-schools, which is handed over to the panelists for their individual ratings, is chosen from an initial list of 150 B-schools (the initial ratings are obtained from 5,000 respondents across the cities of Delhi, Mumbai, Kolkata, Bangalore, Chennai, Pune, Hyderabad and Ahmedabad, using a structured questionnaire). Considering the importance of the meet, four distinguished industry leaders – Dr. Wilfried Aulbur (CEO, Mercedes-Benz India), Mr. Michael Boneham (MD, Ford Motor Co. India), Mr. Naresh Gupta (MD, Adobe India) and Mr. Brian Tempest (Former CEO, Ranbaxy and presently, Independent Director, Religare Hichens Harrison) – sent their comments and discussions through the audio/visual format. The round-table discussion revolved about the parameters on which B-schools are judged today, and means by which such ranking can be made more transparent and just. Professor Arindam Chaudhuri, Editor-In-Chief of Planman Media expressed his views on how “faculty and course contents” are the two most important elements to deliver overall knowledge in B-schools. He also stressed upon a need for a constant focus on personality development and communication skills. Mr. Sandeep Aneja, MD of Kaizen PE, elaborated on why a “right student base and world-class faculty” is mandatory for any B-school, adding that his most valuable learning during his Stanford days was from a course that prompted students to question who they were, sociologically. Mr. Girish Vaidya. Former Director, Infosys Leadership Institute spoke about why B-Schools should be ranked on the basis of “curriculum, global exposure and cultural stability, along with the extent to which entrepreneurial programs” are encouraged. Mr. Dhiraj Mathur, Exec. Director, PwC gave a strong argument on why “a strong orientation towards ethics” is important for a B-school. While K. M. Nanaiah, MD, Pitney Bowes India, also highlighted the need for a “globalised curriculum and industry interface”, Mr. Sumeet Nair, Chairperson of Fashion Foundation of India justified the need for “encouraging an entrepreneurial zeal” amongst the B-school students. The event was a huge success and all the participants concluded that much more needs to be done to arrive at the ideal B-school of tomorrow. [The aggregate of ratings given by the 20 panelists will be released in print in the November 26, 2010 B-school Special Issue of B&E.] 


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles


Thursday, February 7, 2013

Lost in LONDON

The results of UK’s General Elections were a forgone conclusion, but this long drawn out impasse might throw some strange bedfellows, reports James Landale from London

In 1974, Ted Heath famously asked the question, “Who governs Britain?” It is not a bad question to ask the day after the 2010 general election.

The first decision has come from Gordon Brown. Despite losing seats, despite coming second, he has chosen not to resign. He has instead paved the way for cross-party negotiations to begin by allowing civil servants to “support” the Conservatives and Liberal Democrats in any talks they may have.

If Brown had resigned, Cameron would have gone directly to Buckingham Palace and a minority government would have been formed.

The prime minister’s aides and ministers are making it very clear that they believe some kind of deal with the Liberal Democrats is possible, a kind of anti-Tory “progressive alliance” with an agreement on electoral reform at its heart.

The ball thus moves to Nick Clegg’s side of the court. He says he will stick by his campaign promise to allow the party with the most seats and votes – thus the Conservatives – to have the first right to seek to government.

He says, “It is now for the Conservative Party to prove that it is capable of seeking to govern in the national interest.” In other words, what are you offering, David Cameron? Clegg is not saying that he will never talk to Labour or do a deal with them, just that he will talk to the Tories first. He will listen to what Cameron offers him and take it to his party tomorrow. He will not move fast.

The Liberal Democrats will not want to do much with the Tories unless proportional representation is on the table. Remember that Clegg will have to take his party with him; he cannot operate alone in these talks.


Source : IIPM Editorial, 2012.
An Initiative of IIPMMalay Chaudhuri
and Arindam Chaudhuri (Renowned Management Guru and Economist).

For More IIPM Info, Visit below mentioned IIPM articles.