Technology & Digitization Create Fundamental Shift in Business Management

Technology, digitization and changing demographics have been creating a fundamental shift in the way businesses are run. In India, the growth drivers include internet adoption, rapid urbanization, emerging markets and the rise of the start-up culture, says Volvo India’s MD Kamal Bali.

“Youngsters, between 31-35 years of age, in metro cities in India, comprise our start-up ecosystem. Aggregators and e-Commerce have matured; education, healthcare and fintech are emerging, and AI is the next big thing. Almost 325 new start-ups are working at addressing India’s challenges in education, healthcare and energy,” Bali said at the Visionary Leadership Summit at the Indian Institute of Management (IIMB).

Students of the Post Graduate Program in Enterprise Management (PGPEM) hosted new economy leaders and entrepreneurs at ‘Drishti’ – a Visionary Leadership Summit and Alumni event, on February 11. The event also marked the 20^th year of the PGPEM.

Bali urged entrepreneurs as well as policymakers to address fundamental issues like providing the right education and skills. More should be done to deliver public services digitally, empowering rural areas and raising farm incomes, providing sustainable mobility and infrastructure.

“When people say India, they should think “value”. Indian Micro, Small & Medium Entreprises (MSMEs) should occupy the space between Germany – the brand that brings to mind hi-tech precision and China – the brand that most associate with “mass production,” he added.

“Identify what sets you apart, balance the culture-structure steering systems, empower, excite and galvanize teams, develop a mindset of trust, transparency and collaboration, nurture diversity and the habit of innovation and experimentation, and stay relevant to your customer and enhance value creation by co-creation,”

Bali also called for disruption in the education system. “Almost 40% of what our Class 12 students are studying will not be relevant 10 years from now when they begin working because they will be working at jobs that are yet to be imagined or created.”

The solution, he declared, was in disruption. “From asset-led businesses of the past, we have moved to idea-led businesses that are asset light like Uber and Air BnB.”

Technology, digitization and changing demographics have been creating a fundamental shift in the way businesses are run. “Organizational arrogance is passé; we have to take the way of collaboration and partnership. Iconic brands like Kodak and Nokia have learnt this, the hard way,” he added.

In India, the growth drivers include internet adoption, rapid urbanization, emerging markets and the rise of the start-up culture. Listing start-ups from across the world, from Africa to the UK, that Indian start-ups can draw inspiration from, Bali spent a few minutes on disruption in the automotive sector and shared the recipe for entrepreneurial leadership in a VUCA (Volatile, Uncertain, Complex and Ambiguous) world.

“Identify what sets you apart, balance the culture-structure steering systems, empower, excite and galvanize teams, develop a mindset of trust, transparency and collaboration, nurture diversity and the habit of innovation and experimentation, and stay relevant to your customer and enhance value creation by co-creation,” he added.

Moderating a panel on Big Data and AI, Professor U Dinesh Kumar, faculty and Chair, Data Analytics Lab at IIMB, offered a brief overview of the growing opportunities for application of AI in enhancing business revenues.

The first panelist, Sairam Krishnan, Director BAI and Insights, Microsoft, spoke on how Artificial Intelligence transforms business with data and AI, using case studies from Rolls-Royce, ThyssenKrupp and Deschutes Brewery.

“AI can add value – almost $ 1.2 trillion in revenue in the next three years – by augmenting businesses’ reasoning, understanding and interacting abilities,” he said. Start-ups should leverage digital transformation and AI to deliver rich customer experiences by optimizing operations, anticipating customer needs, enabling employees and transforming products,” he added.

The second panellist, Prakash Palanisamy, Country MD, Thorogood Associates, and IIMB alumnus (PGPEM 2016), spoke on Technology Disruptions and IT Services and the entrepreneurial opportunity that AI provides.“In a VUCA world, we are all in muddy waters – we do not know what will happen in our businesses in the long term.

“We need direction. IT service providers can give this direction by providing agility to businesses and helping them keep an eye on the future. Tech entrepreneurs can contribute to understanding business goals, defining technical possibilities and understanding the opportunities,” he said, urging them to build niche services organizations which would become profitable and sustainable. (Image Source:Wikipedia.org)