Monthly Archives: January 2008

Destructive Innovation

We have been hearing about innovation and creation for a long time now (ever since there has been human presence on this mother earth). There are many books available for reading and there are many eminent personalities to explain the same too. However, for a common human being, this term is still on the higher end. End of the day, every time we hear this term, we have one question in our minds – How does it matter to me? That’s a very correct point. I doubt if all of us understood the metal steel as well, until we heard the SAIL (Steel Authority of India Limited) punch line – There is little bit of steel in everyone’s life (Now it is rephrased to There is little bit of SAIL in everyone’s life). How true?

Innovation is all together a different process and all of us innovate in our own way to make lives simpler and happier. Consider an example of getting the newspaper from the gate to your sofa? We have seen in films and also in real life many people execute this – train the pet dog to fetch things. Remember the last time you did something destructive at home and you had an innovative lie to your parents. Do you remember the time when you had a better way to memorize those formulae? Everyday, you figure out a new way to home from work to avoid traffic and reach home soon. If I go with the list, we have many. But, how many times have we really innovated destructively? Yes…something to think about.

This is what exactly happened to Automobile industry on the 10th January 2008, with the Tata’s creating the Rupees One Lakh Car.

My co-blogger and friend Thejesh has consolidated most of the important comments by various personalities on his blog. None from the automobile industry provided a good citation of this innovation. Well, they are not able to digest. Deep in their hearts, they are happy, but the position they are in, does not allow them to comment more than that.

In their book Innovative India, Radhika Chadha and Parmit Chadha write about Auto, the most popular and amazing public transport vehicle which is well lauded by everyone (keeping the nosiness and pollution apart). When was the auto last re-invented after it has been invented? Almost never. There have been only 2/3 players in the Indian market and Bajaj is the leader in this. Why has there not been any change in the design or technology to make it better and safer? Interestingly, the authors have taken pains to speak to owners about how they feel and most of them felt that the auto needs more innovation and they are ready to pay more price as long as it is making sense. Why the manufacturers have’s not thought about doing something? Is it because they feel that they have the monopoly? Probably Yes.

Today, why am I writing about all these things is because I sincerely feel that Tata have Destructively Innovated something which no one has ever dreamt of. They have created the People’s Car and millions are waiting to own one.

Innovation is in thought process, commitment and the dare to dream big. Before Maruti 800 came on to road’s 20 years back, we thought that a car is only for the upper class and always have had a picture of the big RR or Ford’s which were with only limited in number. Maruti revolutionized the aspect of a car for family to travel. Now, Tata has again revolutionized the aspect of mobility.

In his article Decoding the Rs 1 lakh message, Mr. Ajit Balakrishnan in Business Standard today, mentions how confusing and tough make the west understand the terminology of “Lakh” in relation to the ‘millions’ which they have. Now, the whole world will understand what a Lakh means.

I am going to my hometown tonight and when I called my dad yesterday, he said “Can you please pick that 1 Lakh car and drive home?” I was really amazed. He was following the news channels and he wants to own one immediately. Mr. Tata, thank you for realizing my dad’s dream to own his own car with his own money (he retired as Principal for Government High School 12 years back and lives on his pension) instead of us, his children wanting to buy him one (He never allowed us to buy a car, because he wanted to own his own car).

There are many testimonials good and bad. However, I look at things optimistically. Let us wait and see what it is actually when it is on the road.

The 1 Lakh car is Destructive Innovation demystified.

Microplace

Microfinance is a very popular term and it has become a very lucrative business for many organizations. However, there is a lot of difference between banking institutions having a microfinancing arm and an NGO working towards providing micro loans to people below the poverty line. There have been innumerable discussions on this topic and the whole practice depends on how it is utilized.
On one hand, providing micro-loans to people below the poverty line in groups, provides an opportunity for them to build up their livelihood instead of depending on bank loans (which for various reasons are more tough to get) and on the other side, there have been questions and debates on the interest rates which are being charged.
I am working on a white paper based on my understanding and will publish this soon.
Many major organizations are venturing into this business and e-Bay has recently launched their microfinance arm – MicroPlace. MicroPlace is an organization which has tie-up’s with other NGO’s who work at the grass root level to provide loans. Users can invest in MicroPlace and then the money is provided to organizations for the kind of investment the user chooses. The user has access to all profiles / organizations which are listed on the site and looking for any kind of investment and decide as to where his/her money goes. The most lucrative aspect of microfinancing is that the repayment rate is close to or more than 98% most of the time.

Twittering life

Of late, I am spending a lot of time on my twitter home page. In a day, at least I take 30 minutes to go thru all the twitters over the time. Also, twittering from my Nokia E62 is really being a pleasure. Why is twittring addictive? Is there anything special about it? My friend asked me – “What do you get by sharing what your thoughts are? Why do you want every one to know everything? ” I do understand that it might be sensitive for people to exactly share what is in their minds, but twittering is just not about that. It gives you an opportunity to share information to your friends when you like. Unlike blogging, twittering expects your expression to be shared in 160 characters, which will add to your language skills 🙂

Twittering is a recent development and as on date, we do not have more than 2000 people Indian registrants on twitter. But this trend is soon to take shape.

More about KickStart

As the event is fast approaching, the event is shaping up better and I am quite sure there is more than just showcasing entrepreneurial innovations. We have the event covered by bloggers who have been supporting since the beginning. Read in detail about the event, how to send your nomination / how to participate at KickStart web site.  Also, read more about the event and interview with the organizers on PluggdIn, and another event description by Prasanth on his TechBangaloreMansi wrote about the event and also  Webyantra covered it. If you are inspired and writing about the event, please use the tags KickStart, HeadStart.

The Arc of Ambition

3 Weeks back, I borrowed a book from my cousin – The Arc of Ambition, Defining the Leadership Journey and it took me close to three weeks to complete it. Every chapter is a must read. The authors James Champy and Nitin Nohria did a lot of research in writing this book and I think I will have to give this a 5 Star rating for all the efforts. Each example which has been illustrated is a classic by itself.

The authors begin the book by defining the arc of ambition. There are various stages in the arc from beginning the journey to giving a graceful exit:

  • See what other’s don’t
  • Follow a steadfast path
  • Seize the moment
  • Temper ambition
  • Inspire with a greater purpose
  • Never violate values
  • Keep control by giving up
  • Change or die
  • Leave gracefully

Each page is a facinating read and this is a must for every individual. These rules need not apply to only enterprises or this book is not only for people who have high horizons, but for every person in this world to evaluate themselves and live for a purpose.

I don’t have any more words to write about this read, it was really worth the time.

My next read is going to be parallel, want to finish How to change the world and take on the Elephant, the Tiger & the Cellphone by Shashi Tharoor.

New Year Wishes

Opportunity is missed by most people.

Because it is dressed in overalls and looks like hard work.


Do you know what opportunity looks like?

Real opportunity most often looks like a lot of long, hard work.


Do you know where to look for opportunity?

You are most likely to find it in the problems, the frustrations and the challenges about which the most people complain in the most, loudly.


Do you know what to do with opportunity when you find it?

The best thing you can do is to take full responsibility for transforming it into something of real and lasting value.


How do you do that?

With an unshakable commitment, a positive attitude, the willingness to make whatever effort is necessary, and the persistence to continue until is done.


Do you understand what opportunity is not?

It is not a free ride, or a lucky break, or an innovation to get something for nothing.

 

Do you want to make the most of a great opportunity?

Then get busy and put everything you have, into making it happen, for if you do, it will.

Wishing all my readers the best of the New Year and wishing that you don’t miss any opportunities coming your way