do we have the imagination and perseverance to innovate?

For Private Circulation only

Do we have the imagination and

perseverance to innovate?

The Regulators & Policy makers Retreat 2012

24th August 2012 Goa

Dilip Chenoy

CEO&MD

1 Proprietary and confidential. This information does not represent and should not be construed as, legal or professional advice. © 2011 NSDC. All Rights Reserved.

Imagination

Imagination is the ability to form a mental image of something

that is not perceived through the senses. It is the ability of the

mind to build mental scenes, objects or events that do not

exist, are not present or have happened in the past. Memory

is actually a manifestation of imagination. Everyone

possesses some imagination ability. In some it may be highly

developed and in others it may manifest in a weaker form. It

manifests in various degrees in various people.

"Since we live in an age of innovation, a practical education must prepare a man for work

that does not yet exist and cannot yet be clearly defined."

— Peter F. Drucker


Innovation

‘Innovation is defined as a process by which varying degrees of measurable

value enhancement is planned and achieved, in any commercial activity. This

process may be breakthrough or incremental, and it may occur systematically

in a company or

sporadically; it may be achieved by:

- introducing new or improved goods or services and/or

- implementing new or improved operational processes and/or

- implementing new or improved organizational/ managerial processes

in order to improve market share, competitiveness and quality, while reducing

costs.’

Innovation and competitiveness have a dynamic, mutual relationship.

Innovation

thrives in a competitive environment and in turn, plays a key role in the

achievement of such an environment. Innovation generates economic value,

new jobs in the economy and cultures of entrepreneurship. By virtue of its

relationship with competitiveness, Innovation emerges as a factor in

promoting economic growth.


India has a history of innovation and excellence

Temples & other monuments

Crafts

Textiles

Universities

Science

………


Source: BCG Analysis

Imagination + Perseverance = Innovation + Success


Is India an important strategic destination for innovators?

Global ranking of India in Company’s strategy for filling jurisdictions in their 10 year

strategy.


a Barometer for recent trends in innovation ?)

IP filings (Resident + Abroad, Including Regional) and Economy


Is the situation changing ?

Incubation centres of technical and management institutes

across the country report a rise in number of innovations that

have been commercialised. Applications for the Federation of

Indian Chambers of Commerce and Industry's (FICCI) DST-

Lockheed Martin India Innovation Growth programme has

grown to 915 from 102 between 2007 and 2011—a nearly

800% jump in five years. Most of these have already reached

the market.


Is the Indian environment conducive to innovation ?

A resident filing refers to an application filed in the country by its own resident; whereas a non-resident filing

refers to the one filed by a foreign applicant. An abroad filing refers to an application filed by this country's

resident at a foreign office.

Source: WIPO statistics database

Patent Applications (Direct and PCT National Phase Entry)


Sectors where innovation has happened



How do we compare

2000 2005 2009

Total 771766 912977 952837

China 23376 86735 160562

India 627 672 621

Singapore 757 1432 1556

• Global Ranking of India

• Patents ( Residents)( 2010) : 20

• Trade Mark Applications (2010): 37

• Industrial Design Applications (2009): 8



Goal ?

China’s goal for annual patent filings by 2015 is two million. That

number includes “utility-model patents,” which typically cover

items like engineering features in a product and are less ambitious

than “invention patents.”

"Innovation has nothing to do with how many R&D dollars you have. When

Apple came up with the Mac, IBM was spending at least 100 times more on

R&D.

It's not about money. It's about the people you have, how you're led, and

how much you get it."

— Steve Jobs


The National Knowledge Commission

Systematic reform of the higher education system (including skill based

marketable vocational education) in India.

Effective collaboration between industry, educational institutions and the

government and the consumer.

Innovation also needs to become as wide spread as possible, spreading

across the entire economy, from the grassroots to the large firm level.

Effort to address these issues would act as a critical enabling factors for

India to be amongst the leading global leaders in innovation.


External forces could influence nature of innovation.

"To raise new questions, new possibilities, to regard old problems

from a new angle, requires creative imagination and marks real

advance in science."

— Albert Einstein


Customer driven innovation …1

The customer is the primary external factor that leads

more than half of the large firms to innovate.

37.3% of large firms have introduced breakthrough

Innovation, while 76.4% have introduced incremental

Innovation, which may be an indication that large firms in

India are still in the mindset of incremental Innovation as

compared with breakthrough Innovation.


Customer driven innovation ?.....2

"The difference between the impossible and the

possible lies in a man's determination."

— Tommy Lasorda


Policy and innovation ? Drivers ? …1

Calling party pays : Missed Call !


Policy and innovation? Drivers? …2

"It must be remembered that there is nothing more difficult to plan, more doubtful of success,

nor more dangerous to management than the creation of a new system. For the initiator has

the enmity of all who would profit by the preservation of the old institution and merely the

lukewarm defense in those who gain by the new ones."

— Italian philosopher and playwright Nicolo Machiavelli (1469-1527)


Making a fortune at the bottom of the pyramid

"Desire is the key to motivation, but it's determination and commitment to and unrelenting pursuit

of your goal - a commitment to excellence - that will enable you to attain the success you seek."

— Mario Andretti


Enabling the creation of fortune at the bottom of the pyramid


The environment challenge ! Only those who persevere ….

Socialism Free market

Industrial Policy Deregulation

Public Sector Private Sector

First come first serve Auction

Toll gates Free Roads

Free power User charges

New product , service Lowest/ highest bid


“Innovation is the central issue in economic prosperity”

Michael Porter

"People will rise to meet seemingly insurmountable obstacles and challenges if they understand the worthiness

of the personal sacrifices and effort. Supporting that understanding must be mentors who provide leadership;

without both ingredients, a cause will go unrealized and a mission is likely to fail."

— Glenn R. Jones

Creating a Leadership Organization with a Learning Mission in The Organization of the Future


Are firms sustaining innovation ? Top 10 Indian Companies (by Market Cap BS 1000)

1990 2000 2010

Tata Steel Wipro Reliance Industries

ITC Hindustan Unilever ONGC

Tata Motors Infosys Technologies TCS

Century Textiles Reliance Industries Coal India

Hindustan Unilever ITC Infosys Technologies

Mafatlal O N G C SBI

Reliance Industries HCL Technologies NTPC

Grasim Pentamedia Graphics Bharti Airtel

G S F C Zee Entertainment ITC

ACC M T N L ICICI Bank

"Somewhere out there is a bullet with your company's name on it. Somewhere out there is a competitor,

unborn and unknown, that will render your strategy obsolete. You can't dodge the bullet –

you're going to have to shoot first. You're going to have to out-innovate the innovators."

— Gary Hamel


Innovation and perseverance: the fate of 3 ideas

Website for automatic phone list conversations from one phone to other.

Hands free GPS with bluetooth connection to the helmet.*

Voice to web solution to organize the unorganized in Skill Development.

Ideas Innovation

Perseverance


Do we have the imagination and perseverance to innovate?

• Indian’s : Many

• Possible in India : In pockets

• What sizes / types industry will succeed : SME’s better,

Social enterprises

emerging

• Across Industries : ?

• Systematic or Sporadic : Not yet Systematic

• Would it be of the scale required : No

• Can it change : Yes

• Will it (be allowed) change : HOPE

• Can we make a difference : Yes

Thank you

Contact Information:

[email protected]


Learning by rote !

I/K Ratio is culture dependent. In a given field of intellectual ability, I/K ratio is field and person

dependent.

Imagination is more important than

knowledge,. For knowledge is limited,

whereas imagination embraces the entire

world, stimulating progress, giving birth

to evolution.

- Albert Einstein


Conformity and lack of acceptance of failure a challenge

If you stand up and be counted, from time to time you may

get yourself knocked down. But remember this: A man

flattened by an opponent can get up again. A man flattened

by conformity stays down for good."

Thomas J. Watson, Jr.


Did reforms help?

do we have the imagination and perseverance to innovate?

Education

professional advice

economy proprietary

history of innovation

age of innovation

drucker proprietary

bcg analysis proprietary

imagination ability

new jobs