Transcript Navi Radjou: India - Council on Foreign Relations

India: The Emerging Innovation Giant
Navi Radjou
Vice President, Principal Analyst
Forrester Research
After ceding its crown as a global economic giant…
900
GDP index (PPP$)
800
700
600
500
400
300
200
100
0
1500
1600
1700
1820
China
1870
1913
India
1998
USA
(Russia = 100)
Source: Deepak Lal, In Praise of Empires: Globalization and Order, Palgrave
Macmillan, 2004
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…India is attempting to regain it
80000
US GDP
Billions of US$
70000
China GDP
60000
India GDP
50000
India GDP + China GDP
40000
30000
20000
10000
0
2000
2010
2020
Source: Goldman Sachs
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2030
2040
2050
India’s world-class invention capabilities
Source: www.isro.org
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India’s world-class transformation capabilities
Source: http://www.washingtonpost.com/wp-dyn/content/
article/2008/06/25/AR2008062500566.html?hpid=entnews
Source: http://akgoyal.com/wp-content/uploads/2007/09/india-wins-t20-world-cup.jpg
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India’s world-class innovation brokering capabilities
Source: www.regalhotel.com
Source: www.jobsletter.org.nz
Source: cache.eb.com/eb/image?id=74050
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Source: http://upload.wikimedia.org/wikipedia/commons/
thumb/f/ff/EdictsOfAshoka.jpg/455px-EdictsOfAshoka.jpg
Theme
India’s core competency lies in
transforming and brokering
innovations for local and global
consumption — 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 other
emerging 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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Agenda
• How does the Indian market differ from other
emerging 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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The myth . . .
Source: images.barnesandnoble.com/images/
14910000/14910017.JPG
Source: http://www.people.hbs.edu/tkhanna/Khanna.jpg
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The reality . . .
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The reality . . .
Source: Rama Bijapurkar (http://www.ramabijapurkar.com)
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Success criteria for made-in-India innovations:
1. Simple (hassle-free, intuitive use)
2. Low-cost
3. High-volume
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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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Agenda
How does the Indian market differ from other emerging
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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Tata Motors’ Innovation Network
R&D cranked out 40 patents for Nano design
(2007)
Inventor
T
Transformer
T
S
S
CFO office finances invention and transformation
activities (emphasis on latter!)
Financier
Broker
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Supply chain and marketing functions are
focused on scaling Nano design into a
commercial reality: 250,000 units by 2009 (one
million units beyond 2011)
Sales and distribution functions broker access to
a nationwide dealer network to speed time-tovolume
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Source:Tata Motors (http://www.tatapeoplescar.com/)
India’s first truly multinational R&D firm: Suzlon
Source: www.suzlon.de
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India’s national R&D labs now broker global
connections
CSIR
http://www.csir.res.in/
Global partners include:
Du Pont, GE, EXXON Mobil
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Agenda
How does the Indian market differ from other
emerging 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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At L&T, IT brokers and transforms innovation
“When it comes to innovation,
I want my IT staff to specialize
in just two roles: 1) innovation
sourcing (internal and external) and
2) project management (to monetize
inventions).”
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Anantha Sayana
Group CIO
L&T
Indian tech leaders don’t invent -- but transform and
broker innovation . . . globally
Hatches a new idea or creates new product, new service, or new
business model
Inventor
T
T
Converts inputs from inventors into market-relevant and usable
products, services, or processes
Transformer
S
Facilitates global interactions among Inventors, transformers, and
financiers globally
Broker
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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 ICICI’s global network”
- Pravir Vohra, group CTO, ICICI
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Agenda
How does the Indian market differ from other
emerging 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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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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Microsoft’s “Unlimited Potential” program drives
social innovation in Indian villages
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Cisco has begun to de-Westernize its organization by
opening its 2nd headquarters in…Bangalore
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Agenda
How does the Indian market differ from other
emerging 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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We are transitioning to a post-American tech
economy…
• India has fastest IT growth rate compared to other
emerging markets – and the US!
SAP added 6 new
Indian clients
every working day!
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…characterized by a multipolar tech world order
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Nuclear deal will turbocharge US-India Innovation
Networks
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US-India Innovation Networks will be anchored by
region-to-region, not state-to-state-level, cooperation
“The role of the economic
development practitioners should
be to broker innovation networks,
connecting inventors, financiers,
and transformers to produce
results”
http://www.bayeconfor.org/media/files/pdf/InnovationDrivenEconomicDevelopmentModel-final.pdf
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Summary
• Innovation made-in-India must meet the “low-cost/highvolume” criteria.
• Indian firms — especially Indian IT leaders — are
adept at transforming and brokering innovations on a
worldwide basis.
• US vendors can handsomely profit by serving India’s growing
corporate AND social innovation needs . . .
• Shunning protectionism, US policy-makers (at the regional
level) must learn to broker US-India Innovation Networks
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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
[email protected]
650.581.3849
www.forrester.com
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Selected bibliography
• Forthcoming research, “Silicon Valley 3.0”
• October 2, 2008, “Microsoft Unleashes India’s Creative
Capitalism”
• September 9, 2008, “ICICI Banks On Global Innovation
Network Success”
• June 6, 2008, “Indian CEOs Seek Continuous Business
Innovation”
• March 6, 2006, “President Bush’s Historic Visit To India
Accelerates US–India Tech Cooperation”
• November 5, 2005, “How India, China Redefine The Tech
World Order”
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