Recession and Innovation
Is this recession time is the time to sit idle for our company and do nothing just wait for time to come out from recession time by government measure? Of-course not, Companies need to take step. India is in advantageous state comparatively because of many reasons. One is that there is huge domestic market. So our economy can be transferred from export driven to domestic driven. Second, that there is still lot of scope for Indian company to innovate as we have just entered in global competition and we are far behind to developed country, where as developed country struggling to come out by selling its assets or cutting cost, as cost is much higher there relatively. So there is time for company first to cut un-necessary cost. It is also needed to prune the innovation pipe line. It does not mean to cut innovation cost but to select a fewer project, by anticipating the future demands, and do them well. One example is of NANO, launched by TATA, another one is light weight agriculture vehicle made by Mahindera. This will have market not only in India or other developing country but can be adapted by developed country. Developed country giant, like car giant GM are struggling to come out of recession and they will soon selling of their assets. If Indian firms pickup a good distribution network it can capture their market. Another key area, where Indian companies can innovate is efficient way to utilize renewable energy sources. It is necessary to implement the adjacency innovation during the economic downturn. The time when developed countries were developing the non-renewable energy sources are in abundance and cheap, while renewable sources were very costly. So they went for setting up a network which encouraged using of fossil fuels. But now the scenario has changed. In India where 60% of country has inadequate transmission and distribution infrastructure, it will not be wise to go spent trillions to replicate the same modal as was implemented by developed country. Rather, a focus should be given to de-centralize power, with local generation and redistribution naturally favor the use of renewable energy source such as bio mass or wind energy. Now is time to develop existing renewable energy technologies, scale them up and commercialize them, which definitely hold the key of future market.
So to conclude India has lot of opportunity in recession period to innovate and innovate differently by anticipating the future demand and sources.
So to conclude India has lot of opportunity in recession period to innovate and innovate differently by anticipating the future demand and sources.
|
|
