UNLEASHING INNOVATION ACROSS THE VALUE CHAIN By:

Prakhar NigamPritish SareenPGDM (2012-14)

Innovation

• Innovation – iPhone, Stick-up Notes• Innovation vs. Invention• Innovation vs. Improvement

2

CASE STUDY:ITC e-Choupal

ITC-International Business DivisionChallenge:

•Global Competition- Cargill, Mitsubishi, ConAgra

•Highly Volatile

- Foreign Exchange Fluctuations

- Government Policies

- Perishable nature of Commodities

•Unfavorable risk return ratios

•Low Margins

Y C Deveshwar: “ITC wants to create a high-quality low-cost fulfilment channel for rural India”

Approach to Challenge

•Innovation over Efficiency •Question all Assumptions

Step 1- Blowing Up Old Business Model

Step 2- Strategy as Symphony•Idea Generation- Team of 32 and Field Experts•Methodology Shift- Presentation to Brainstorming•Focus Shift- Commodity to Servicing•Project Symphony- - CRM(Customer Relationship Management) Initiative - Farmers & Supply Chain Initiative (Choupal) - Risk Management Initiative - Learning Initiative

Source: “Making Breakthrough Innovation Happen” by Porus Munshi

Step 3- Innovations in Play

•Reverse the Transaction- Empower the Farmer•Unbundle the Bundled - Free Flow of Price Information - Transaction•Co-opt Intermediaries

Source: “Making Breakthrough Innovation Happen” by Porus Munshi

E-Choupal Business Model

Source: knowledgecommission.com

FIRM INFRASTRUCTURE

HUMAN RESOURCE MANAGEMENT

TECHNOLOGY DEVELOPMENT

PROCUREMENT

INBOUND LOGISTICS

OPERATIONS OUTBOUND LOGISTICS

MARKETING

& SALESSERVICE

PRIMARY ACTIVITIES

SUPPORT

ACTIVTIES

Value Chain Cost Analysis

•Cost limited to Operations, Outbound Logistics, Procurement and Technology

Role of Manager

Mr. Sivakumar’s Role:• Idea Generation Stage- -Facilitating over ordering -Involve everyone -Look outside

• Idea Development Stage- -Symphony of ideas over reductionist logical steps -Capture the latent value

• Idea Dissipation Stage- -Combat Dilution -Enrolling Stakeholders- Prototype (Give proof), Push Programme

Source: “Making Breakthrough Innovation Happen” by Porus Munshi

Innovation Measurement

Source- BCG Innovation Survey

Innovation Measurement

INNOVATION MEASUREMENT

Case Analysis : Tata Innometer• Initiative of Tata Group Innovation Forum

Innometer

Innovation Process

Innovation Culture

Source: tataquality.com/innometer

Innometer Report

Source: tataquality.com/innometer

Building transformational

Leaders

Research

EducationOutreach

• Interdisciplinary• Business Engagement

• Special Electives• Onsite Workshops

• Publications• Industry Institute Partnership

Role of Educational Institutes

Source: isb.edu/clic

THANK YOU !• Questions ?