Transcript Balwant Kulkarni, Director (Academics)

ICSI
International Conference
Monday, 12 May 2008
Creating Solutions for Effective Performance in
Slowing Global Economy
Presentation by
Balwant Kulkarni
Director (Academics)
1
Creation is a process
2
Solutions are a response to
problems
3
Problems are well defined and understood
4
You need to unleash creativity
through the systems at all levels of
organization
5
Mindset that is attuned to solutions looks
at problems as opportunities in disguise
6
Volatility in Stock Market is not
an enigma
George Soros and Warren Buffet
have made their fortunes by
being one step ahead of volatility
7
Statement of problems sometimes show
grave approach
8
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.
9
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!
10
Scientists and technologists
have looked at evidentiary
proof of the earth’s physical
resources
11
Mental and intellectual
resources of the human kind are
immeasurable and infinite
12
Statements of problems sometimes
overlook human creativity
13
They also overlook the
blessedness of the humankind
14
They may also be overlooking the
crookedness of the humankind
and its greed
15
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.”
16
Was the sub-prime mortgage crisis in
the US a reflection of the human
greed?
17
US economy was expected to go into a
downturn
The prediction followed years of
cheap liquidity
18
Cheap liquidity created a lot
of new risk vehicles in which
people were investing
19
JP Morgan Chase taking over Bear
Stearns with the aid of the US Federal
Reserve could be a creative solution.
20
TATAs’ creation of Nano
could be an economic
statement of performance
through smallness
21
Creativity at practical level is called
innovation
22
Schumpeter stressed the role of
innovation and creativity to turn up
the wheels of the economy
23
Innovation may be a process
that is breakthrough or that
is incremental
24
Innovation may occur
systematically in a company
or sporadically
25
Innovation is a process by
which varying degrees of
measurable value
enhancement is planned and
achieved
26
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.
27
Entrepreneurship and
intrapreneurship are products of
creative human mind
28
Schumpeter also looks at
entrepreneurship as solution to
economic depression
29
Out of destruction a new spirit of
creativity arises
Innovative entry by entrepreneurs is
the force that will sustain long-term
economic growth
30
Companies that once
revolutionized and dominated new
industries have seen their profits
fall and their dominance vanish as
rivals launched improved designs
or cut manufacturing costs
Example Xerox in copiers or
Polaroid in instant photography
31
The policy option is
acceleration of productive
growth in an environment of
high economic growth
32
This will free the
entrepreneurial spirit in the
economy
33
High and uneven inflation
enhances risk
34
It is inimical to innovation and risk
taking
35
The pickup in productivity tends to
create even greater increases in
aggregate demand than potential
aggregate supply
36
Monetary policy should deliver
low and stable inflation
37
It should also be expected to
deliver low and stable inflation
38
That way the monetary policy
can give sustainable growth its
best chance
39
Accelerating productivity growth
entails a matching acceleration in the
potential output
40
This causes a corresponding
rise in the real incomes
available to purchase the new
output
41
Chinese economy grew by 11.2% in the
last quarter of 2007, when the US
GDP growth was flat
42
Chinese Government showed that
domestic consumption accounted for a
bigger slice of GDP growth than
investment and exports
43
This happened for the first time in
China since the year 2000
44
This happened in China in spite of the
inflation rate higher than the rate in
India
45
With 40 percent of the
world’s population
between the two countries,
plenty of opportunities
exist
46
What is required is strong
leadership and business initiatives
47
Sino-Indian bilateral trade stood at
$38.7 Billion in 2007
48
Proper management by both
States can ensure stability for
bilateral relations, South Asian
security, and the evolving global
balance of power.
49
The Elephant and the
Dragon will have to learn to
tango
50