radjou india oct14
TRANSCRIPT
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India: The Emerging Innovation Giant
Navi RadjouVice President, Principal Analyst
Forrester Research
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2Entire contents 2006 Forrester Research, Inc. All rights reserved.
Source: Deepak Lal, In Praise of Empires: Globalization and Order, Palgrave
Macmillan, 2004
GDP
inde
x
(PPP$)
0
100
200
300
400
500
600
700
800
900
1500 1600 1700 1820 1870 1913 1998
China India USA
(Russia = 100)
After ceding its crown as a global economic giant
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3Entire contents 2006 Forrester Research, Inc. All rights reserved.
0
10000
20000
30000
40000
50000
60000
70000
80000
2000 2010 2020 2030 2040 205
BillionsofU
S$
India GDP + China GDP
India GDP
China GDP
US GDP
Source: Goldman Sachs
India is attempting to regain it
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4Entire contents 2006 Forrester Research, Inc. All rights reserved.
Indias world-class invention capabilities
Source: www.isro.org
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Indias world-class transformation capabilities
Source: http://akgoyal.com/wp-content/uploads/2007/09/india-wins-t20-world-cup.jpg
Source: http://www.washingtonpost.com/wp-dyn/content/
article/2008/06/25/AR2008062500566.html?hpid=entnews
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Indias world-class innovation brokeringcapabilities
Source: www.regalhotel.com
Source: www.jobsletter.org.nz
Source: cache.eb.com/eb/image?id=74050
Source: http://upload.wikimedia.org/wikipedia/commons/
thumb/f/ff/EdictsOfAshoka.jpg/455px-EdictsOfAshoka.jpg
http://upload.wikimedia.org/wikipedia/commons/f/ff/EdictsOfAshoka.jpg -
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Theme
Indias core competency lies in
transforming and brokering
innovations for local and globalconsumption instead of
merely inventing new things
just for the sake of inventing
them
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Agenda
How does the Indian market differ from otheremerging markets?
Which Indian organizations are championinginnovative best practices?
How do Indian companies exploit technology todrive innovation and sustain growth?
What are the key market opportunities for US
vendors in India? Public policy implications for the US
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9Entire contents 2006 Forrester Research, Inc. All rights reserved.
Agenda
How does the Indian market differ from otheremerging markets?
Which Indian organizations are championinginnovative best practices?
How do Indian companies exploit technology to driveinnovation and sustain growth?
What are the key market opportunities for US vendors
in India?Public policy implications for the US
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10Entire contents 2006 Forrester Research, Inc. All rights reserved.
The myth . . .
Source: http://www.people.hbs.edu/tkhanna/Khanna.jpg
Source: images.barnesandnoble.com/images/
14910000/14910017.JPG
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11Entire contents 2006 Forrester Research, Inc. All rights reserved.
The reality . . .
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12Entire contents 2006 Forrester Research, Inc. All rights reserved.Source: Rama Bijapurkar (http://www.ramabijapurkar.com)
The reality . . .
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13Entire contents 2006 Forrester Research, Inc. All rights reserved.
Success criteria for made-in-India innovations:
1. Simple (hassle-free, intuitive use)
2. Low-cost
3. High-volume
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14Entire contents 2006 Forrester Research, Inc. All rights reserved.
Case in point: Nano
Sources: http://uberdesi.com/blog/wp-content/uploads/2008/01/nano.jpg and http://imod.co.za/wp-content/uploads/2008/01/tata-nano.jpg
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15Entire contents 2006 Forrester Research, Inc. All rights reserved.
Agenda
How does the Indian market differ from other emergingmarkets?
Which Indian organizations are championing innovative
best practices?
How do Indian companies exploit technology to drive innovationand sustain growth?
What are the key market opportunities for US vendors in India?
Public policy implications for the US
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16Entire contents 2006 Forrester Research, Inc. All rights reserved.
Tata Motors Innovation Network
T
S
Inventor
R&D cranked out 40 patents for Nano design
(2007)
Transformer
Supply chain and marketing functions are focusedon scaling Nano design into a commercial reality:250,000 units by 2009 (one million units beyond2011)
T
Financier
CFO office finances invention and transformationactivities (emphasis on latter!)
S
Broker
Sales and distribution functions broker access to anationwide dealer network to speed time-to-volume
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17Entire contents 2006 Forrester Research, Inc. All rights reserved.Source:Tata Motors (http://www.tatapeoplescar.com/)
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18Entire contents 2006 Forrester Research, Inc. All rights reserved.
Indias first truly multinational R&D firm: Suzlon
Source: www.suzlon.de
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19Entire contents 2006 Forrester Research, Inc. All rights reserved.
Indias national R&D labs now broker global
connections
Global partners include:
Du Pont, GE, EXXON Mobil
http://www.csir.res.in/
CSIR
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20Entire contents 2006 Forrester Research, Inc. All rights reserved.
Agenda
How does the Indian market differ from other emergingmarkets?
Which Indian organizations are championinginnovative best practices?
How do Indian companies exploit technology todrive innovation and sustain growth?
What are the key market opportunities for US vendors
in India?Public policy implications for the US
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22Entire contents 2006 Forrester Research, Inc. All rights reserved.
T
S
Inventor
Hatches a new idea or creates new product, new service, or new
business model
Transformer
Converts inputs from inventors into market-relevant and usable products,services, or processes
T
Broker
Facilitates global interactions among Inventors, transformers, andfinanciers globally
Indian tech leaders dont invent -- but transform and
broker innovation . . . globally
ICICI f li ti i ti b t ti
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ICICI focuses on replicating innovative best practices
across its global business network
I consider myself as the chief innovation
orchestrator -- tasked with delivering the
innovation piece wherever it was conceptualized
within ICICIs global network
- Pravir Vohra, group CTO, ICICI
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24Entire contents 2006 Forrester Research, Inc. All rights reserved.
Agenda
How does the Indian market differ from otheremerging markets?
Which Indian organizations are championinginnovative best practices?
How do Indian companies exploit technology to driveinnovation and sustain growth?
What are the key market opportunities for US
vendors in India?Public policy implications for the US
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25Entire contents 2006 Forrester Research, Inc. All rights reserved.
India is emerging as a global R&D hub
Top-ranking destination countries by number of
research and development projects
Source: IBM-Project Location International (IBM-PLI) Global Investment Locations Database (GILD)
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Multinationals expand their R&D presence in India
Source: August 3, 2006 Offshore Product Development Has Arrived Report
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27Entire contents 2006 Forrester Research, Inc. All rights reserved.
Microsofts Unlimited Potential program drives
social innovation in Indian villages
http://blogs.msdn.com/blogfiles/healthblog/WindowsLiveWriter/UnlimitedPotentialfortelehealth_6857/image_4.pnghttp://blogs.msdn.com/blogfiles/healthblog/WindowsLiveWriter/UnlimitedPotentialfortelehealth_6857/B%20(2).png -
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Cisco has begun to de-Westernize its organization by
opening its 2nd headquarters inBangalore
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29Entire contents 2006 Forrester Research, Inc. All rights reserved.
Agenda
How does the Indian market differ from otheremerging markets?
Which Indian organizations are championing
innovative best practices?
How do Indian companies exploit technology to drive
innovation and sustain growth?
What are the key market opportunities for US vendors
in India?
Public policy implications for the US
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30Entire contents 2006 Forrester Research, Inc. All rights reserved.
We are transitioning to a post-American tech
economy
India has fastest IT growth rate compared to otheremerging markets and the US!
SAP added 6 new
Indian clients
every working
day!
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31Entire contents 2006 Forrester Research, Inc. All rights reserved.
characterized by a multipolar tech world order
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Nuclear deal will turbocharge US-India Innovation
Networks
US-India Innovation Networks will be anchored by
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US-India Innovation Networks will be anchored by
region-to-region, not state-to-state-level, cooperation
http://www.bayeconfor.org/media/files/pdf/InnovationDrivenEconomicDevelopmentModel-final.pdf
The role of the economic
development practitioners
should be to broker innovation
networks, connecting inventors,financiers, and transformers to
produce results
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Summary
Innovation made-in-India must meet the low-cost/high-volume criteria.
Indian firms especially Indian IT leaders are
adept at transformingand brokeringinnovations on a
worldwide basis.
US vendors can handsomely profit by serving Indias growing
corporate AND social innovation needs . . .
Shunning protectionism, US policy-makers (at the regional
level) must learn to broker US-India Innovation Networks
Ch k t bl M d I I di
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Check out my blog:Made In India(http://discussionleader.hbsp.com/radjou/)
Source: (http://discussionleader.hbsp.com/radjou/)
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Thank you
Navi Radjou
650.581.3849
www.forrester.com
mailto:[email protected]:[email protected] -
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Selected bibliography
Forthcoming research, Silicon Valley 3.0
October 2, 2008, Microsoft Unleashes Indias CreativeCapitalism
September 9, 2008, ICICI Banks On Global InnovationNetwork Success
June 6, 2008, Indian CEOs Seek Continuous BusinessInnovation
March 6, 2006, President Bushs Historic Visit To IndiaAccelerates USIndia Tech Cooperation
November 5, 2005, How India, China Redefine The TechWorld Order