icsi international conference monday, 12 may 2008
DESCRIPTION
ICSI International Conference Monday, 12 May 2008. Creating Solutions for Effective Performance in Slowing Global Economy Presentation by Balwant Kulkarni Director (Academics). Creation is a process. Solutions are a response to problems. - PowerPoint PPT PresentationTRANSCRIPT
1
ICSI International ConferenceMonday, 12 May 2008
Creating Solutions for Effective Performance in Slowing Global
Economy Presentation by
Balwant Kulkarni
Director (Academics)
2
Creation is a process
3
Solutions are a response to problems
4
Problems are well defined and understood
5
You need to unleash creativity through the systems at all levels of
organization
6
Mindset that is attuned to solutions looks at problems as opportunities in disguise
7
Volatility in Stock Market is not an enigma
George Soros and Warren Buffet have
made their fortunes by being one step ahead of
volatility
8
Statement of problems sometimes show grave
approach
9
Let us look at the following statements:
• The measure of the pressure that human activity exerts on the resources of the earth was 60 per cent of the earth’s capacity to renew itself in 1960.
• It has presently reached 130 per cent of the earth’s capacity.
• We are no longer living off the earth’s revenue account. We are eating into its capital.
10
Scientists project that if China and India grow the
way the West has, within 25 years they will require
another whole planet earth to support them alone!
11
Scientists and technologists have looked at evidentiary
proof of the earth’s physical resources
12
Mental and intellectual resources of the human kind are
immeasurable and infinite
13
Statements of problems sometimes overlook human
creativity
14
They also overlook the blessedness of the humankind
15
They may also be overlooking the crookedness of the
humankind and its greed
16
As Mahatma Gandhi said
“the world has enough to satisfy everyone’s need but
does not have enough to satisfy a single man’s greed.”
17
Was the sub-prime mortgage crisis in the US a reflection of the human
greed?
18
US economy was expected to go into a
downturn
The prediction followed years of cheap liquidity
19
Cheap liquidity created a lot of new risk vehicles in which
people were investing
20
JP Morgan Chase taking over Bear Stearns with
the aid of the US Federal Reserve could be a creative solution.
21
TATAs’ creation of Nano could be an economic
statement of performance through smallness
22
Creativity at practical level is called innovation
23
Schumpeter stressed the role of innovation and
creativity to turn up the wheels of the economy
24
Innovation may be a process that is
breakthrough or that is incremental
25
Innovation may occur systematically in a company
or sporadically
26
Innovation is a process by which varying degrees of
measurable value enhancement is planned
and achieved
27
National Knowledge Commission says… innovation may be achieved by…• Introducing new or improved goods or
services • Implementing new or improved
operational processes• Implementing new or improved
organizational/managerial processes to improve market share, competitiveness and quality, while reducing costs.
28
Entrepreneurship and intrapreneurship are products of creative
human mind
29
Schumpeter also looks at entrepreneurship as solution to economic
depression
30
Out of destruction a new spirit of creativity arises
Innovative entry by entrepreneurs is the force that will sustain long-term
economic growth
31
Companies that once Companies that once revolutionized and dominated revolutionized and dominated new industries have seen their new industries have seen their profits fall and their dominance profits fall and their dominance
vanish as rivals launched vanish as rivals launched improved designs or cut improved designs or cut
manufacturing costsmanufacturing costs
Example Xerox in copiers or Example Xerox in copiers or Polaroid in instant photographyPolaroid in instant photography
32
The policy option is acceleration of productive
growth in an environment of high economic growth
33
This will free the entrepreneurial spirit in
the economy
34
High and uneven inflation enhances risk
35
It is inimical to innovation and risk
taking
36
The pickup in productivity tends to create even greater increases in
aggregate demand than potential aggregate
supply
37
Monetary policy should deliver low and stable
inflation
38
It should also be expected to deliver low and stable
inflation
39
That way the monetary policy can give sustainable
growth its best chance
40
Accelerating productivity growth entails a
matching acceleration in the potential output
41
This causes a corresponding rise in the real incomes
available to purchase the new output
42
Chinese economy grew by 11.2% in the last
quarter of 2007, when the US GDP growth was flat
43
Chinese Government showed that domestic
consumption accounted for a bigger slice of GDP growth than investment
and exports
44
This happened for the first time in China since
the year 2000
45
This happened in China in spite of the inflation rate higher than the rate in
India
46
With 40 percent of the world’s population between the two countries, plenty of
opportunities exist
47
What is required is strong leadership and business initiatives
48
Sino-Indian bilateral trade stood at $38.7 Billion in
2007
49
Proper management by both States can ensure stability for bilateral relations,
South Asian security, and the evolving global balance of
power.
50
The Elephant and the Dragon will have to learn to tango