Reforms Needed For Reinventing India – Mr. D Shivakumar, Chairman and CEO of PepsiCo India Holdings

Mr. D Shivakumar, Chairman and CEO – India Region, PepsiCo India Holdings Pvt. Ltd.

AIMA conducts its annual flagship event – National Management Convention with an aim to address the prevalent challenges of corporate ecosphere in India, their repercussion on the business scenario and deciding the tactics to handle it efficiently in coming years. A topic of national importance is taken as a theme in the convention and is addressed by The Convention addresses a topical theme of national importance and is addressed by prominent speakers from all spheres of life. Its grandeur can be understood by the fact only that last year almost 800 delegates from Industry, government, media and academia attended NMC and it is rising exponentially. There were number of prominent speakers this at 41st NMC. Topic of concern this year was “Changing Times: Reinventing the India Story”, and speakers from different fields of the industry put their thoughts through interactive sessions.

One such profound insight was laid upon by Mr. D Shivakumar, Chairman and CEO – India Region, PepsiCo India Holdings Pvt. Ltd. and former president of AIMA. In his session at NMC, he talked about reforms which should be undertaken when it comes to reinvent India for better. He said we have made progress and there is scope to achieve lot more in the coming years. He started his presentation with some facts. The people living under poverty line have come down to one-third, from its peak 70-80% to 33% in these years. Looking at the infrastructural growth now, ten folds growth has been seen in roads. Number of airports has reached to 125 and we now have 13 major sea ports in last 60 years. So it is clear from the numbers that we definitely have made progress in the infrastructure. Then he spoke about importance of women growth. Though literacy rate of women has risen from 9% to 74%, still involvement of woman in workforce needs to be worked on.

On the front of technological facts, aspired products of people have moved from owning bicycles to personal technology products like smart phones, tablets and much more. It is a mark of definite progress he said. Then he talked about these key reforms which should be undertaken for changing the face of progress in India. Firstly, there should be no small versus big ideology, ecosystem should be small and big working together. He further added that India is a scale country and we need to move forward from era of ‘jugaad’ to a thinking about brand, innovation and design to move up in the chain because then only it can contribute in reinventing India and products it has to offer. He also said that attitude should be changed. Mindset should be to put something back there as opposed to perennially complaining and moaning. What can I do to make a change that can make move forward? – This should be the point of ponder upon. Next point is about the lands. 90% of land is disputed and it should be reformed if we want anything to be done. Another thing is to invest in Teachers, if you want yield of high quality students. Focus should be on providing skills, not degrees along with emphasis on women. Last point on his presentation was of developing smart cities which involves lots of technology which will sure path to be taken for reinventing and changing times. He concluded by saying that if these little things are kept in mind, there is nothing which can stop in bringing a reinvented and desirable future.

The above article is an excerpt from the speech delivered by Mr. D Shivakumar, Chairman and CEO – India Region, PepsiCo India Holdings Pvt. Ltd. at AIMA’s National Management Convention which was held in September 2014.

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Innovation is countering inertia of change – Sangeeta Talwar, Former Managing Director NDDB

Sangeeta Talwar, Former Managing Director NDDB

I believe, innovation is countering inertia of change, which we all find very difficult to undertake. Its certainly about confronting gravity, and severing the tethers of what ties us to tradition. It’s scaling the walls of doubt and turning them into windows of opportunity. You must have heard this morning. It’s about doing new & different things.  But it’s also about doing new and different things, differently! And, I think, doing a lot of new and different things, differently, there is a certain synergy that comes together and has thistransformative effect that innovation brings to organisations. As this book, ‘Orbitfuring Innovations’ has mentioned, it usually starts with the out of the box challenge. I think, Tanmay also mentioned it. ‘Tell me what the problem is’, and let’s look for that out of box idea, which is very clear definition of out of box challenge.

Innovation needs a lot of courage. You need to stand up to the change and you need to stand by the change. And I think that is a very critical aspect of innovation. If you don’t have the courage the stamina to stand by what is being created, it will fall by the way side. You must have seen a lot of passion and zeal, all of this morning and afternoon. That’s the call for innovation! The way it works is infectious and transcends the boundaries around you. Transcends the boundaries of reasons and metamorphosis all of them. It’s a drive of unfathomable Continue reading

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Competitiveness and Innovation – Mr Dilip Shanghvi, Managing Director of Sun Pharmaceutical

Mr Dilip Shanghvi, Managing Director of Sun Pharmaceutical

I’m thankful to AIMA for giving me this opportunity to share my thoughts on ‘Competitiveness and Innovation’ with this distinguished audience. Innovation is a subject that is really close to my heart.Pharmaceutical business, worldwide, is linked to its ability to manage innovation for its success. Creating intellectual capital and the ability to grow the business with innovation is the reason why at Sun Pharma we’ve been successful. As a company, we have always focused on innovation and ability to do more with less by focusing on excellence and that I think, in a significant way, has differentiated our performance over last 30 years that we’ve been in existence.

Shiv talked about return on capital employed and linkage with competitiveness and innovation. It’s an return on capital employed over the last thirty years that has been consistently in excess of 30 percent and that to me is the reason, which reflects our internal focus on innovation. When we look at innovation there are no shortcuts to manage and achieve it. Innovation is a process by which companies or countries focus on doing things differently. People talk about innovations in ideas, innovations in execution.What I find in Indian context,which is a bigger challenge,is the ability to manage complex innovative tasks, as a group. And, as we learn to manage this process, I think we will continue to improve on our performance on innovation. Continue reading

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Why Waste a Good Recession? – Mr. Kurush Grant, Executive Director, ITC Ltd

Mr. Kurush Grant, Executive Director, ITC Ltd

Ladies and gentlemen, a very good morning! A few years back when the last financial meltdown took place, the Advertising Agencies Association of India had a seminar in Mumbai, and I would like to repeat the name of that seminar because I think it fits in with what we are going through at this point of time. It is – ‘Why Waste a Good Recession’ and a lot of us laughed at it and thought they were being too clever but what we found is that those companies who leveraged to good recession actually did well and those companies who panicked and who did the traditional stuff, which Mr. Bajaj also talked about, didn’t perhaps do so well.

One of the issues raised in the brief up of this particular recession was, ‘is it worth while changing vision, is it worthwhile changing strategy during times of uncertainties and difficulties? And if you were to look at various examples of companies around the world, what we find is that those companies who stick to a vision and whose strategies are robust and whose strategies actually work across time, never actually change their strategies. What does certainly happen is that they change tactics, they change logistics, they change supply chain possibilities but in the long run, strategies are very very rarely changed. But the issue is what short term is & what is long term?

Successful companies throughout the world have actually, apart from the traditional aspect of having a three layered goal and three layers of new product innovation- the short term, the medium and the long term, what successful companies actually do is that they have three layers of planning and three levels of actual strategic formulation for the short, medium and long term. Continue reading

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If you don’t give up, you can not fail! – Mr D ShivaKumar, CEO PepsiCo & Past President AIMA

Mr D Shiva Kumar, CEO PepsiCo & Past president AIMA

Thank you Ladies and gentlemen. We have already had 10 wonderful sessions and we have heard a lot on the theme of courage and uncertainty. I think, we can say if we conclude that uncertainty is here to stay amongst us and not go away.

How do firms deal with uncertainty? Some firms behave like an ostrich and soon they cease to exist. They are in denial mode and they start to externalise a lot. They start blaming others for their problems. Some firms get all rational and get into analysis paralysis mode. They think they are making great progress because of the number of slides and data points they have. This is what I call ‘death by PowerPoint’. Some firms get into an activity mode and unleash the activity trap, forgetting that the first thing you need when you go through an uncertain stage is focus. Some firms freeze, hence they lose. Some firms liberate to what I call emotional engagement. Courage is one part, logic many parts magic. And magic happens when we show emotions, when we tap into the emotional energies of people.

I want to show you a clip from the 1992 Barcelona Olympics and then I will talk about what happened after that to end with what courage all means.

From the video, Derek Redmond showed enormous courage in dealing with failure, 150 meters into the race and 250 meters to go.

His decision to complete the race shows determination. His hopping for 250 meters shows endurance through pain. His father’s act shows empathy, compassion and the need for emotional anchors in uncertainty. His tears show vulnerability. That’s what courage is all about. And courage shown through these emotions has an astounding impact on 65000 people in that stadium. He didn’t win the race but he won admiration for life and that’s what courage is all about.

Two years after this Derek’s doctor told him that he couldn’t run again because he had had multiple challenges with his feet. So Derek without losing dedication decided to choose another game. He picked up basketball when Toronto represented United Kingdom in basketball. So, Derek represented the country twice, once in athletics and second in basketball. This Barcelona video brought him lot of fame. This was used by the Olympic committee on a theme called ‘humanity’. It was used by the Visa brand to promote the Olympic movement. It was used by Nike for ‘Acts of courage’. And this is what the Olympic committee or the movement said of this film when they ran it. They said force is measured in kilograms. Speed is measured in seconds. But courage, you can’t measure it!

On that note I would end my session. Thank you ladies and gentlemen.

The above article is an excerpt from the speech delivered by Mr D Shiva Kumar, CEO PepsiCo & Past president AIMA  at AIMA’s National Management Convention which was held in September 2013

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Courage in Uncertainty – Mr Rajiv Bajaj, Managing Director, Bajaj Auto Ltd

Mr Rajiv Bajaj, Managing Director, Bajaj Auto Ltd

Good morning everyone. This is perhaps the third or fourth time AIMA has invited me to speak and I don’t know why they have called me up again but I’ll tell you why I like coming here. Well, first of all, because Rekha is wonderful and also, Shiv, Gautam and Sanjiv and the others, you all are very nice and very warm and welcoming. But most of all and I say this from my heart, I find that this is the best audience to be with. I mean, there is always so much energy in this room.

The theme of the conference is ‘courage in uncertainty’ and when I was given the executive summary, this is what it said: facing the future and uncertainty with courage is not a way, but the only way. This is what I received from AIMA. Well, this in itself is not new. Aristotle said centuries ago, that courage is the first of all virtues because without it we cannot act on any other virtue. So, that has been acknowledged a long time back. But let me also share with you what a very well known doctor said, a very long time back, Dr. Michael Boyd. He said, “All that which is powerful for good is potent for evil”. It’s good to diet, but it’s not good to diet too much. It is good to exercise, but it’s not good to exercise too much. It’s good to work, but it’s not good to work too much. Therefore, all that is powerful for good is powerful for evil as well. So, courage, I think, is powerful for good but courage can also be very potent for evil, and that is why my presentation starts with a question- “courage is uncertainty?” What I mean to convey is that there is a lot of uncertainty that we find ourselves in, self inflicted, brought upon us by ourselves because we’re being too courageous, perhaps full hardy. So, what I’m going to do for the next few minutes is as Shahrukh said to all of us yesterday, he’s here less to talk about success and more about failure in the context of success. Continue reading

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Focus on customers rather than on Product – Mr. Gyan Gupta CEO, Dainik Bhaskar Digital Business

Mr. Gyan Gupta CEO, Dainik Bhaskar Digital Business

Henry Ford has been known for producing the mass production system in the American history. He is known as the most senseless and the most brilliant marketer at the same time. Senseless because all he gave to the customers was one black car and brilliant because he could create the production system that could create a car for 500 dollars, and he could sell millions of them. Henry Ford was a real marketer; he did not produce a 500 dollar to produce an assembly line. He actually figured out if he can produce a 500 dollar car, he would be able to sell million of those to the customers. So he kept the customers in mind and focused on a low cost production system. So, there’s a fine line between the customer & the product.
Not the strongest, not the most intelligent but the most flexible species will survive in today’s world. People from big publications think that they are in the business of newspaper; in fact they should focus on the news rather than the newspaper. Newspaper was a medium that was convenient some time back. The consumer today still wants news, they still want credible news from the trusted sources but the medium has changed due to advanced technology. Consumers are changing & they are adapting themselves to the current changes in the environment. Continue reading

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How to attain Sustainable Competitive Advantage – Mr. Arunabh Das Sharma – President, Bennett Coleman

Mr. Arunabh Das Sharma – President, Bennett Coleman

The concept of competitive advantage is slightly outvoted concept today.  What it means today and what it meant in 90’s is vastly different. In this age of dramatic & disruptive technology how can we manage the product life cycle is the main question. I have been fortunate to be associated with brands which have managed it successfully.  I have been fortunate to be a part of the journey of brands like Coke, Whirlpool & Times of India which are more that 100 yr old brands .According to me, the concept of product life cycle is dead. I think more and more people are trying to manage the brand life cycle as oppose to the product life cycle today. Because products that constitute the brand can come & go but the brand value will stay forever.

Product life cycle is an inverse s shaped curve, where you would start slow and then there’s rapid growth and then you start slowing down and at the end it would decline. Let’s take an example of Colgate dental cream. It is probably a 65 – 70 year old brand and yet it continues to be the leader primarily in same form & fashion. It is a very successful brand & product. I would however argue that the reason why Colgate dental cream is so successful is because the company has managed to figure out that there is a core set of consumers & there is a peripheral set of consumers & Colgate has been successful in focusing on both these categories by launching different products under same mother brand of Colgate, for e.g.:  Colgate total, Colgate sensitive & Colgate whitening. Continue reading

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Linking Mahatma Gandhi’s philosophy to Business – Mr. R Mukundan, Managing Director,Tata Chemicals

Mr. R Mukundan, Managing Director,Tata Chemicals

Marketing is an art as well as science and to make it successful you should have a soft side to understand the emotions of customers. Mahatma Gandhi was a great man who literally made people to understand the concept of freedom. That’s a far more difficult thing to do. That’s the brilliance of him and we can learn many lessons from him. We operate in 3 businesses and we call ourselves life. We have a good team and we have constantly increased our market share in key categories over the time. When I joined Tata Salt we had the market share of around 19%, today it stands at around 60 -65%. The number 1 & number 2 brands are with us. Because we could not grow the first brand fully, we launched the second brand to attack it & we have two brands from the same family in one product category and we are thinking to launch another brand.

We also sell water purifiers and we have just started to sell pulses, which is a growing business area that is compounded every year at 16000+. When we create a brand the amount of power we have in market place is tremendous. The second piece of our business is industrial chemicals. This is truly a global business; we are present in 4 continents: Europe, Asia, Africa & United States. We are the 2nd largest glass making company. When you drink a glass of water or when you wash clothes there a bit of TATA in it. We are the key supplier to Procter & Gamble & Unilever for same. Our 3rd piece of business is focused on farm essentials. We have the largest foot-print in rural India. Tata rural retail has been profitable from past 20 years. We have 700 stores spread over UP, Haryana, Punjab & in West Bengal. Through our company Ralus we are running one of the finest & profitable rural businesses. When you look at top 10 farm brands, top 7 belong to us. We are about a 15000 crore company and we have an innovation centre too, one of our product Swacch came out of that innovation centre. You cannot address bottom of pyramid without focusing on innovation. Continue reading

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Role of Analytics in CRM – Clifford Patrao Director/Partner, Global Business Services IBM India Pvt Ltd

Clifford Patrao Director/Partner, Global Business Services IBM India Pvt Ltd

CRM & Analytics have been across different type of industries for long time. Analytics has always been meant for enriching customer experience and to maintain good customer relationship. In 2012 we did a global CEO study, where we interacted with close to 70 CEOs from 64 countries. We asked them which is the best information which can give you the most correct insight about business, most of them answered that would like to know about information related to customers to get business insights.

What has really changed in analytics and CRM recently is the emerging empowered customers. Consumers are now dictating the relationship that they have with the business. Business is no longer focusing on the push marketing where push the message across the customers. Now, it’s the other way around and customers are telling us what they want and what promises and kept and not kept in a particular product/service provided.   Continue reading

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