MESSAGE FROM THE CHAIRMAN’S DESK
SUB: Innovation
I dedicate this write-up to Godrej & Boyce Mfg. Co. in recognition of their generous offer to
hold a program for WZCC members on an innovation concept related to a new product
named “Chotukool” and its development in terms of performance characteristics and market
promotion.
The average life of a Fortune 500 company is estimated at less than 40 years, with success
declining over time. If an organisation –like the Godrej Group – has been successful and
long standing, then it must have adapted to changing times; it must have entrepreneurially
tried new things or acquired the benefits derived from innovation.
A recent survey conducted with 400 global CEOs on key factors responsible for
manufacturing competitiveness reveals that it is innovation, more than any other factor that
drives progress.
We need to recognise, therefore, the importance of innovation for
sustainable and profitable growth of a business.
The world famous Toyota Production System (with emphasis on Lean Manufacturing) is
quoted in management literature as an example of “unconscious” innovation. The two US
companies, Google and Apple, are perceived to be “natural innovators”, because their culture
and mindset is towards innovation.
Another interesting example concerns aviation (reference Newsweek’s July 26, 2010 issue).
In 1985, commercial aircraft consumed 8 litres of fuel per passenger per 100 kms; in
comparison, modern aircraft consume between 3 and 4 litres. However, the new Airbus 380
carrying 800 passengers, now in service, consumes less than 3 litres of fuel per passenger
per 100 kms. That’s amazing when you consider that the Toyota hybrid – ‘Prius’, will burn 3.8
litres to travel the same distance as compared to a modern car with an 1800 cc engine
consuming approximately 10 litres for the same distance.
That bring us to the question of what is innovation? Reference to dictionaries suggests that it
can be one or more of the following:
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A truly revolutionary change
A departure from the old
Introduction of new methods
Breaking a precedent
Introduction of a new product or service developed from study and experimentation.
Let’s look at just two of the many outstanding examples of innovation in our country.
1. The Economic Times of 24th July 2010, in the Editorial column, covered the news of
the HRD Minister, Mr. Kapil Sibal unveiling a personal computer – a sleek touch
screen device, that’s Wi-Fi enabled for internet access with all the applications
available on a PC. This tablet PC is ultra power efficient requiring just 2-Watt supply
or a battery backup via a solar cell. The device has no hard-disk and instead makes
use of a memory disk. Users will have access to applications equivalent to Microsoft
Office suite, with an open source Linux software. The tablet PC was developed by
teams at the Indian Institute of Technology sponsored by the National Mission on
Education through Information and communication technology. What is most
remarkable is that it costs Rs.1500. This path-breaking innovation points at a world
of possibilities for dramatic technology aided development and universal access to
information and technology.
2. When we speak of innovation the thought that comes immediately to mind, is that of
the Tata Motors ‘Nano’ – an outstanding example. Unlike what one might expect, the
NANO was not a product of market research and the Chotukool by Godrej might just
fall in the same basket, meaning it too, as I understand, is not a product of market
research. The Nano as we now know started as a concept from Mr. Ratan Tata, to
provide an entry level car that would be affordable, safe and environment friendly.
The realisation of Mr. Tata’s vision was made possible by adoption of a set of criteria
before the design stage, viz.
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Its cost
Basic performance characteristics
Quality systems
Since the car was meant for export, it had to undergo over a 100 tests at the
Automotive Research Association of India, for a period of 4 months, to be ultimately
ratified as conforming to Euro IV emission standards, as well as noise, vibration,
harshness and crash worthiness.
What is most important is that the management created an environment in which the team,
never had to fear failure and at all times had the opportunity to use their creativity to the
maximum. We must recognise this as a basic requirement for innovation to thrive.
Innovation is no more an option – it is a necessity. “Innovate or Die” is the famous quote
attributed to Tom Peters, American writer on business management.
“In today’s highly
competitive and ever evolving world, only the fittest survive; only the innovative stay fit.”
We at WZCC wish Godrej & Boyce Manufacturing Co. great success with “Chotukool”, and
many more successful innovations in the future.
P.P. Kharas