Bet on value addition, innovation, India Inc.
Industry heads share their views on staying competitive.
What they say:
The only way to extract a price premium is through value addition and innovation.
Increasing compensation to tackle attrition will lead to a vicious cycle.
Companies should build on the platform of good practice and governance.
Chennai, April 8:
Industry's competitiveness is resting too much on labor cost advantage than on innovation, according to Mr. R. Seshasayee, Managing Director, Ashok Leyland Ltd and Vice-President, Confederation of Indian Industry (CII). Addressing a session on emerging challenges in sustaining growth at the CII's annual regional meeting here on Saturday, he said that the only durable way companies can extract a price premium is through value addition and innovation.
Cost vs. value:
Intellectual capital needs to be a significant part of the wealth of companies. "Not low-cost labor or arbitrage in labor cost - that is transient," he said. The cost of inputs, and of commodities is bound to increase and can impede growth. Industries globally have addressed this through efficiency increase. Internal efficiency and continuous improvement have become a "part of today's DNA of Indian industries" in dealing with input costs and defending margins. But this cannot go on forever, Mr. Seshasayee said. "Why would people pay more?" he asked. The differentiation by which companies can command a price premium is in delivering value. Value addition by an order of magnitude, changing the rules of the game to develop novel packages - that has been the success of the industry leaders. Continuous innovation is the challenge for Indian industries, he said.
Areas of concern:
Mr. Ashok Soota, Chairman and Managing Director, MindTree Consulting Pvt Ltd, who spoke on employee attrition and increasing costs, felt that wage increase was a manifestation of success. But there has been a swing from one extreme - pathetic low wages a decade ago - to another and short-term cost increases could lead to a loss of competitiveness. Increasing compensation to tackle attrition would only lead to a vicious cycle. One solution would be for companies to move into new geographical areas to tap new human resources.
Another concern is the 'Dutch Disease' - one sector growing at the cost of another - with the boom in information technology driving wages to levels that other sectors cannot afford. On the supply side, the issues of the quality and quantity of the workforce need to be addressed. Educational institutions churn out graduates who are 'unemployable.' But there is also talk of expanding reservation. That would be a wrong decision, as this would only take away quality. Industries need to focus on training to improve the quality of the workforce, Mr. Soota said.
India has demographics on its side. It has the human resource capacity to meet the global demand for knowledge workers by 2020. It is the time to act now - but unfortunately when things are going well, action is difficult, he said.
'Conform to global standards':
Mr. Ravi Uppal, Vice-Chairman and Managing Director, ABB Ltd and Deputy Chairman, CII Southern Region, said conforming to international standards despite the costs is a necessity for companies that are looking at a presence in the global market. Whether a Sarbanes-Oxley accounting disclosure or the home-brewed Clause 49 of SEBI, companies need to have systems to instill confidence in the stakeholders. The Indian stock market cannot afford another scandal. India scores higher than China on credibility and transparency. Companies should build on the platform of good practice and governance. "It is a must - Not an option," Mr. Uppal said.
Stress on CSR:
Mr. Y.C. Deveshwar, Chairman of ITC Ltd and CII President, called for a system that provided an incentive or placed a value on a company's initiative in corporate social responsibility and environment conservation. The media too has a role in sensitizing civil society to good practices. India has 17 percent of the world's population but 2 percent of the landmass and 4 percent of water. So conserving natural resources and enabling a skilled workforce is a concern for all. The entire society should place a value on conservation.
From India, Pune
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108Industry heads share their views on staying competitive.
What they say:
The only way to extract a price premium is through value addition and innovation.
Increasing compensation to tackle attrition will lead to a vicious cycle.
Companies should build on the platform of good practice and governance.
Chennai, April 8:
Industry's competitiveness is resting too much on labor cost advantage than on innovation, according to Mr. R. Seshasayee, Managing Director, Ashok Leyland Ltd and Vice-President, Confederation of Indian Industry (CII). Addressing a session on emerging challenges in sustaining growth at the CII's annual regional meeting here on Saturday, he said that the only durable way companies can extract a price premium is through value addition and innovation.
Cost vs. value:
Intellectual capital needs to be a significant part of the wealth of companies. "Not low-cost labor or arbitrage in labor cost - that is transient," he said. The cost of inputs, and of commodities is bound to increase and can impede growth. Industries globally have addressed this through efficiency increase. Internal efficiency and continuous improvement have become a "part of today's DNA of Indian industries" in dealing with input costs and defending margins. But this cannot go on forever, Mr. Seshasayee said. "Why would people pay more?" he asked. The differentiation by which companies can command a price premium is in delivering value. Value addition by an order of magnitude, changing the rules of the game to develop novel packages - that has been the success of the industry leaders. Continuous innovation is the challenge for Indian industries, he said.
Areas of concern:
Mr. Ashok Soota, Chairman and Managing Director, MindTree Consulting Pvt Ltd, who spoke on employee attrition and increasing costs, felt that wage increase was a manifestation of success. But there has been a swing from one extreme - pathetic low wages a decade ago - to another and short-term cost increases could lead to a loss of competitiveness. Increasing compensation to tackle attrition would only lead to a vicious cycle. One solution would be for companies to move into new geographical areas to tap new human resources.
Another concern is the 'Dutch Disease' - one sector growing at the cost of another - with the boom in information technology driving wages to levels that other sectors cannot afford. On the supply side, the issues of the quality and quantity of the workforce need to be addressed. Educational institutions churn out graduates who are 'unemployable.' But there is also talk of expanding reservation. That would be a wrong decision, as this would only take away quality. Industries need to focus on training to improve the quality of the workforce, Mr. Soota said.
India has demographics on its side. It has the human resource capacity to meet the global demand for knowledge workers by 2020. It is the time to act now - but unfortunately when things are going well, action is difficult, he said.
'Conform to global standards':
Mr. Ravi Uppal, Vice-Chairman and Managing Director, ABB Ltd and Deputy Chairman, CII Southern Region, said conforming to international standards despite the costs is a necessity for companies that are looking at a presence in the global market. Whether a Sarbanes-Oxley accounting disclosure or the home-brewed Clause 49 of SEBI, companies need to have systems to instill confidence in the stakeholders. The Indian stock market cannot afford another scandal. India scores higher than China on credibility and transparency. Companies should build on the platform of good practice and governance. "It is a must - Not an option," Mr. Uppal said.
Stress on CSR:
Mr. Y.C. Deveshwar, Chairman of ITC Ltd and CII President, called for a system that provided an incentive or placed a value on a company's initiative in corporate social responsibility and environment conservation. The media too has a role in sensitizing civil society to good practices. India has 17 percent of the world's population but 2 percent of the landmass and 4 percent of water. So conserving natural resources and enabling a skilled workforce is a concern for all. The entire society should place a value on conservation.
From India, Pune
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Dear all,
Techniques for Creative Thinking
Collectively, there are several hundred techniques published in books by Michael Michalko, Andy Van Gundy, James Higgins, Dilip Mukerjea, and others. Techniques are like tools in a workshop, with different tools for different parts of the creative process. For example, there are techniques for defining a problem, exploring attributes of a problem, generating alternatives, visual explorations, metaphors, analogies, and evaluating and implementing ideas.
Today we would start with this tool, "Questions."
Poem by Rudyard Kipling
Following the story "Elephant's Child" in "Just So Stories."
I keep six honest serving-men (They taught me all I knew); Their names are What and Why and When And How and Where and Who. I send them over land and sea, I send them east and west; But after they have worked for me, I give them all a rest. I let them rest from nine till five, For I am busy then, As well as breakfast, lunch, and tea, For they are hungry men. But different folk have different views; I know a person small She keeps ten million serving-men, Who get no rest at all! She sends them abroad on her own affairs, From the second she opens her eyes One million Hows, Two million Wheres, And seven million Whys!
Ask "Why" Five Times
From "What a Great Idea" by Chic Thompson.
Ask "Why" a problem is occurring and then ask "Why" four more times.
For example...
1. Why has the machine stopped?
A fuse blew because of an overload.
2. Why was there an overload?
There wasn't enough lubrication for the bearings.
3. Why wasn't there enough lubrication?
The pump wasn't pumping enough.
4. Why wasn't lubricant being pumped?
The pump shaft was vibrating as a result of abrasion.
5. Why was there abrasion?
There was no filter, allowing chips of material into the pump.
Installation of a filter solves the problem.
The Six Universal Questions
Idea Generators should be aware of a simple universal truth. There are only six questions that one human can ask another:
What? Where? When? How? Why? Who?
Have a great day!!
Cheers, Rajat
From India, Pune
Acknowledge(0)Amend(0)
Techniques for Creative Thinking
Collectively, there are several hundred techniques published in books by Michael Michalko, Andy Van Gundy, James Higgins, Dilip Mukerjea, and others. Techniques are like tools in a workshop, with different tools for different parts of the creative process. For example, there are techniques for defining a problem, exploring attributes of a problem, generating alternatives, visual explorations, metaphors, analogies, and evaluating and implementing ideas.
Today we would start with this tool, "Questions."
Poem by Rudyard Kipling
Following the story "Elephant's Child" in "Just So Stories."
I keep six honest serving-men (They taught me all I knew); Their names are What and Why and When And How and Where and Who. I send them over land and sea, I send them east and west; But after they have worked for me, I give them all a rest. I let them rest from nine till five, For I am busy then, As well as breakfast, lunch, and tea, For they are hungry men. But different folk have different views; I know a person small She keeps ten million serving-men, Who get no rest at all! She sends them abroad on her own affairs, From the second she opens her eyes One million Hows, Two million Wheres, And seven million Whys!
Ask "Why" Five Times
From "What a Great Idea" by Chic Thompson.
Ask "Why" a problem is occurring and then ask "Why" four more times.
For example...
1. Why has the machine stopped?
A fuse blew because of an overload.
2. Why was there an overload?
There wasn't enough lubrication for the bearings.
3. Why wasn't there enough lubrication?
The pump wasn't pumping enough.
4. Why wasn't lubricant being pumped?
The pump shaft was vibrating as a result of abrasion.
5. Why was there abrasion?
There was no filter, allowing chips of material into the pump.
Installation of a filter solves the problem.
The Six Universal Questions
Idea Generators should be aware of a simple universal truth. There are only six questions that one human can ask another:
What? Where? When? How? Why? Who?
Have a great day!!
Cheers, Rajat
From India, Pune
Acknowledge(0)Amend(0)
Hi Umalme,
Thanks for so many informative articles, and you are continuing this subtopic.
But how do you apply all these questions to the word 'Life'?
I am glad you have found these articles on Lateral thinking informative and useful.
Hmm, you have asked a good question about how one applies all these to "LIFE," implementation in the practical sense, whether they are just good as a theory with zero meaning for day-to-day life.
Well, my friend, it's got everything to do with life as it spells success and happiness and achieving one's goals.
We all, including me, are able to hold onto our present jobs depending on how we successfully solve the problems for our superior officers. Sometimes these solutions require us to think out of the box.
Hmm, not convinced yet? Please allow me to share this article below on Dhirubhai Ambani, one of the greatest entrepreneurs of our times.
RELIANCE: STRATEGIES FOR SUCCESS
Dhirubhai Ambani evokes strong reactions from people, but nobody can be indifferent to his achievements. To the many happy shareholders of Reliance, he is good enough to deserve the Bharat Ratna, and at the other extreme, he is vehemently reviled for his business methods. On being criticized for his modus operandi of openly using political influence for corporate gain, Dhirubhai has repeatedly asserted: "That is only a minor element of our work. Why not focus on the major portion related to implementation, where so many organizations goof up?" He adds: "I give the least importance to number one. I was nothing but a small merchant, but I reached this level here. I consider myself fortunate to be in this position, but I have no pride. I am as I was."
Reliance is globally admired for its rapid and time-bound implementation methods, and those are where lateral thinking is employed to the maximum.
Reliance executives are constantly encouraged to think out-of-the-box, rather than traditionally or sequentially. The top bosses themselves have this tremendous ability to think laterally and look at business as a series of processes as illustrated by their quotes: "The leadership of Reliance Industries has always shunned incremental thinking," says Anil Ambani, MD of the Reliance group. Older brother Mukesh Ambani says: "We work in concentric circles, rather than in straight ranks, but there's always a center of accountability. We don't believe in core competence. We believe in building competence around processes and people to create value."
Dhirubhai adds: "The world is a series of orbits hierarchically stacked up with peons and clerks at the bottom and leading industrialists and politicians at the top. To be successful, you must break out of your orbit and enter the one above. After a spin in that orbit, you must break into the next one and so on till you reach the top."
To keep moving in an upward spiral, Dhirubhai has liberally used lateral thinking, far more than any other industrialist, as revealed in Gita Piramal's book, Business Maharajas, among other sources.
RELIANCE FIRSTS
Dhirubhai was the first Indian industrialist to cater to the needs of the small investor. This was more by default rather than design because of his inability to fund his operations initially, yet it was a major deviation from the established practice of raising money from financial institutions. He introduced the equity cult in small towns in India. He is also recognized as having single-handedly revitalized the Indian capital market by focusing on capital appreciation instead of dividend, which was the norm.
Apart from his macro strategy, his tactics also reveal a lateral disposition. When the bear syndicate connived to hammer down his share prices, Reliance bought all of its own shares and demanded delivery by creating a 'friends of Reliance' association to buy those shares that the management technically could not. The consequent furor and shutdown of the stock market brought him into the national limelight. He also pioneered the conversion of convertible debentures into shares. This was so successful that it was oversubscribed six times once and prompted him to use the idea to convert non-convertible debentures.
Dhirubhai was the first industrialist in India to build factories comparable to the best in the world. Then, in a prime example of turning the situation on its head, he created capacity ahead of actual demand. Working on the premise that supply creates its own demand, he would sometimes plan a plant with a capacity of almost five times the actual or projected demand running into thousands of tons. Reliance is known to have accepted tenders that were 250 percent higher than the lowest bid because the contractor delivered on time or flew somebody abroad to buy a critical component.
Against conventional wisdom, Reliance started manufacturing synthetic fabrics on a huge scale, realizing that the poor got more value for money as polyesters implied an image boost. Facing opposition from traditional cloth merchants whose loyalty lay with the older mills, he ignored the established wholesale trade, created his own exclusive showrooms, explored markets, and selected agents from non-textile backgrounds. Finally, Reliance achieved the impossible by building a cryogenic terminal to transport ethylene in deep seas when conventional methods failed, the first time this was tried in India.
INNOVATIONS GALORE
At a time when India's equity market was in the bear phase, Reliance was the first group to tap the overseas debt market with long-term debt, including the 100-year Yankee bond.
It was also the first Indian corporation to make a GDR issue and the first to get Moody's and S&P ratings. Reliance was a zero-tax company for several years because its continuous tax credits helped it to offset its profits. When the finance minister imposed a compulsory corporate tax of 30 percent, Reliance capitalized their total debt for the entire contracted term of debt. They argued that interest accrues from the date of availing a loan until its repayment, and that all loans would be repaid on their due dates. This enabled them to retain their zero-tax status.
The Reliance website is replete with examples of lateral thinking even in micro-management. The company uses unconventional methods to get a job done, especially when customer satisfaction is involved. Employees have disguised themselves to directly deliver an important consignment to a customer. Reliance has reached out to their client's customers to create broader loyalty bases. Anil and Mukesh Ambani directly approach their lower-level staff without going through the departmental heads. They have tied up with a management institute to teach trainees in six months what they learn in MBA courses in two years. The Ambanis look at initiative and individual potential rather than paper qualifications.
A SKILL THAT CAN BE LEARNED
There is a misleading belief that creativity belongs to the world of art and is a matter of talent and chance, and nothing can be consciously done about it.
Lateral thinking is specifically concerned with changing preconceived notions to bring out new ideas and can be acquired and practiced as a skill. It is a special information handling process like mathematics, logical analysis, or computer simulation. Thinking techniques, once mastered, can be used both individually and in a group, dispensing with brainstorming. In all the examples of lateral thinking given in this article, unconventionality clearly comes to the fore. According to de Bono, one should be free of constraints, tradition, and history to be creative. But that freedom is more effectively obtained by using certain deliberate techniques rather than by hoping to be free. There is a prevailing belief that structures are restrictive for creative thinking, but this is not entirely true. A cup does not limit one's choice of drink, so one can consciously avoid being limited by structures and apply them to one's field.
On a lighter vein...
Lateral thinking can save your life, as illustrated in this story. Two men were on a jungle safari in Africa. Suddenly, they came across a tiger that started roaring. Both men were frightened, and one of them started wearing his shoes. The other one said: "How is this going to help? We can't outrun the tiger." The first man replied: "I don't have to outrun the tiger; I only have to outrun you." 😄
Hope this has answered some of your issues.
Cheers,
Rajat
From India, Pune
Acknowledge(0)Amend(0)
Thanks for so many informative articles, and you are continuing this subtopic.
But how do you apply all these questions to the word 'Life'?
I am glad you have found these articles on Lateral thinking informative and useful.
Hmm, you have asked a good question about how one applies all these to "LIFE," implementation in the practical sense, whether they are just good as a theory with zero meaning for day-to-day life.
Well, my friend, it's got everything to do with life as it spells success and happiness and achieving one's goals.
We all, including me, are able to hold onto our present jobs depending on how we successfully solve the problems for our superior officers. Sometimes these solutions require us to think out of the box.
Hmm, not convinced yet? Please allow me to share this article below on Dhirubhai Ambani, one of the greatest entrepreneurs of our times.
RELIANCE: STRATEGIES FOR SUCCESS
Dhirubhai Ambani evokes strong reactions from people, but nobody can be indifferent to his achievements. To the many happy shareholders of Reliance, he is good enough to deserve the Bharat Ratna, and at the other extreme, he is vehemently reviled for his business methods. On being criticized for his modus operandi of openly using political influence for corporate gain, Dhirubhai has repeatedly asserted: "That is only a minor element of our work. Why not focus on the major portion related to implementation, where so many organizations goof up?" He adds: "I give the least importance to number one. I was nothing but a small merchant, but I reached this level here. I consider myself fortunate to be in this position, but I have no pride. I am as I was."
Reliance is globally admired for its rapid and time-bound implementation methods, and those are where lateral thinking is employed to the maximum.
Reliance executives are constantly encouraged to think out-of-the-box, rather than traditionally or sequentially. The top bosses themselves have this tremendous ability to think laterally and look at business as a series of processes as illustrated by their quotes: "The leadership of Reliance Industries has always shunned incremental thinking," says Anil Ambani, MD of the Reliance group. Older brother Mukesh Ambani says: "We work in concentric circles, rather than in straight ranks, but there's always a center of accountability. We don't believe in core competence. We believe in building competence around processes and people to create value."
Dhirubhai adds: "The world is a series of orbits hierarchically stacked up with peons and clerks at the bottom and leading industrialists and politicians at the top. To be successful, you must break out of your orbit and enter the one above. After a spin in that orbit, you must break into the next one and so on till you reach the top."
To keep moving in an upward spiral, Dhirubhai has liberally used lateral thinking, far more than any other industrialist, as revealed in Gita Piramal's book, Business Maharajas, among other sources.
RELIANCE FIRSTS
Dhirubhai was the first Indian industrialist to cater to the needs of the small investor. This was more by default rather than design because of his inability to fund his operations initially, yet it was a major deviation from the established practice of raising money from financial institutions. He introduced the equity cult in small towns in India. He is also recognized as having single-handedly revitalized the Indian capital market by focusing on capital appreciation instead of dividend, which was the norm.
Apart from his macro strategy, his tactics also reveal a lateral disposition. When the bear syndicate connived to hammer down his share prices, Reliance bought all of its own shares and demanded delivery by creating a 'friends of Reliance' association to buy those shares that the management technically could not. The consequent furor and shutdown of the stock market brought him into the national limelight. He also pioneered the conversion of convertible debentures into shares. This was so successful that it was oversubscribed six times once and prompted him to use the idea to convert non-convertible debentures.
Dhirubhai was the first industrialist in India to build factories comparable to the best in the world. Then, in a prime example of turning the situation on its head, he created capacity ahead of actual demand. Working on the premise that supply creates its own demand, he would sometimes plan a plant with a capacity of almost five times the actual or projected demand running into thousands of tons. Reliance is known to have accepted tenders that were 250 percent higher than the lowest bid because the contractor delivered on time or flew somebody abroad to buy a critical component.
Against conventional wisdom, Reliance started manufacturing synthetic fabrics on a huge scale, realizing that the poor got more value for money as polyesters implied an image boost. Facing opposition from traditional cloth merchants whose loyalty lay with the older mills, he ignored the established wholesale trade, created his own exclusive showrooms, explored markets, and selected agents from non-textile backgrounds. Finally, Reliance achieved the impossible by building a cryogenic terminal to transport ethylene in deep seas when conventional methods failed, the first time this was tried in India.
INNOVATIONS GALORE
At a time when India's equity market was in the bear phase, Reliance was the first group to tap the overseas debt market with long-term debt, including the 100-year Yankee bond.
It was also the first Indian corporation to make a GDR issue and the first to get Moody's and S&P ratings. Reliance was a zero-tax company for several years because its continuous tax credits helped it to offset its profits. When the finance minister imposed a compulsory corporate tax of 30 percent, Reliance capitalized their total debt for the entire contracted term of debt. They argued that interest accrues from the date of availing a loan until its repayment, and that all loans would be repaid on their due dates. This enabled them to retain their zero-tax status.
The Reliance website is replete with examples of lateral thinking even in micro-management. The company uses unconventional methods to get a job done, especially when customer satisfaction is involved. Employees have disguised themselves to directly deliver an important consignment to a customer. Reliance has reached out to their client's customers to create broader loyalty bases. Anil and Mukesh Ambani directly approach their lower-level staff without going through the departmental heads. They have tied up with a management institute to teach trainees in six months what they learn in MBA courses in two years. The Ambanis look at initiative and individual potential rather than paper qualifications.
A SKILL THAT CAN BE LEARNED
There is a misleading belief that creativity belongs to the world of art and is a matter of talent and chance, and nothing can be consciously done about it.
Lateral thinking is specifically concerned with changing preconceived notions to bring out new ideas and can be acquired and practiced as a skill. It is a special information handling process like mathematics, logical analysis, or computer simulation. Thinking techniques, once mastered, can be used both individually and in a group, dispensing with brainstorming. In all the examples of lateral thinking given in this article, unconventionality clearly comes to the fore. According to de Bono, one should be free of constraints, tradition, and history to be creative. But that freedom is more effectively obtained by using certain deliberate techniques rather than by hoping to be free. There is a prevailing belief that structures are restrictive for creative thinking, but this is not entirely true. A cup does not limit one's choice of drink, so one can consciously avoid being limited by structures and apply them to one's field.
On a lighter vein...
Lateral thinking can save your life, as illustrated in this story. Two men were on a jungle safari in Africa. Suddenly, they came across a tiger that started roaring. Both men were frightened, and one of them started wearing his shoes. The other one said: "How is this going to help? We can't outrun the tiger." The first man replied: "I don't have to outrun the tiger; I only have to outrun you." 😄
Hope this has answered some of your issues.
Cheers,
Rajat
From India, Pune
Acknowledge(0)Amend(0)
Thank you for sharing such an informative article. Lateral thinking opens up new avenues for unusual practices, which is one aspect of life in a corporate career. However, life holds more meaning beyond just that. Dhirubhai possessed exceptional and unusual abilities that allowed him to carry out operations efficiently, defeating time and emerging as a pioneering leader in the corporate world.
Art serves as a method of learning creativity, but today, it finds applications in our daily lives, providing us with new ways to recognize and break societal norms.
From India, Delhi
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Art serves as a method of learning creativity, but today, it finds applications in our daily lives, providing us with new ways to recognize and break societal norms.
From India, Delhi
Acknowledge(0)Amend(0)
Dear all,
One of the students raised this point: Innovation by nature is the opposite of organization. Organization thrives when everything happens in a predictable way, thus adding manageability to the process. Innovation, on the other hand, is disruptive, disjointed, and unpredictable. Therefore, the spirit of innovation goes against the principles of organization.
Any comments or views, please?
Regards,
Rajat
From India, Pune
Acknowledge(0)Amend(0)
One of the students raised this point: Innovation by nature is the opposite of organization. Organization thrives when everything happens in a predictable way, thus adding manageability to the process. Innovation, on the other hand, is disruptive, disjointed, and unpredictable. Therefore, the spirit of innovation goes against the principles of organization.
Any comments or views, please?
Regards,
Rajat
From India, Pune
Acknowledge(0)Amend(0)
Good question. Innovation is the means to survive in today's world. Innovation in organizations thrives through business management processes and procedures that create infrastructure, upon which innovation thrives.
I'll give you an example of an international insurance company that introduces new incentives and small schemes to its insurance agents every fortnight to sell insurance policies to its customers. It is impressive for an insurance company to innovate in the core area of its business and become a leader in a market that may seem stagnant by its nature.
Advertising is another area where innovation is crucial, accounting for 100 percent of its impact. Even parables, like drawing a bigger line without removing it, highlight the presence of innovation. Innovation is essential as an adjective for organizations.
From India, Delhi
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I'll give you an example of an international insurance company that introduces new incentives and small schemes to its insurance agents every fortnight to sell insurance policies to its customers. It is impressive for an insurance company to innovate in the core area of its business and become a leader in a market that may seem stagnant by its nature.
Advertising is another area where innovation is crucial, accounting for 100 percent of its impact. Even parables, like drawing a bigger line without removing it, highlight the presence of innovation. Innovation is essential as an adjective for organizations.
From India, Delhi
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Dear all,
I would like to share information on NLP as it is an important source of creativity.
NLP Techniques
Practitioners of Neuro-Linguistic Programming (NLP), also known as the "science of subjective experience," have produced a number of techniques that can be used to describe the strategies used by highly effective people.
Essentially, experts are carefully studied and analyzed (or modeled in NLP parlance) as a way to make conscious and unpack the mental strategies they used to get expert results. Once the strategies are decoded, they are then available for others to enhance their own expertise. Milton Erickson, the well-known hypnotherapist, and Virginia Satir, one of the world's best-known family therapists, were among those who were modeled by NLP practitioners.
Interestingly, it appears that people can be modeled even after they have died! A case in point: Robert Dilts (one of the creators of NLP) recently modeled Walt Disney. He studied his writings, observed films of him doing his work, and interviewed people that worked with him. From this, he extracted the Disney Creativity Model, which will be briefly described below.
The basic strategy for modeling people is to either observe them while performing or to have them mentally go back to a time when they were performing extremely well, and to have them describe (while reliving a particular moment of great human performance) the thought patterns, physiology, and context that supported the performance.
The modeler might also choose to elicit a strategy that led to poor performance or a failure to get the same results as a "counter model." This is done to provide a contrast that clearly points out the distinctions between the two states of "success" and "failure." NLP provides a set of linguistic and observational tools that ensure useful descriptions and models.
Walt Disney
Dilts concluded that Walt Disney moved through three distinct states when he produced his work. Dilts called them Dreamer, Realist, and Critic. Each of these three stages has distinct physiology and thought patterns and can be consciously employed by individuals who want to improve their creative performance.
It is beyond the scope and mandate of this FAQ to elaborate any further on Dilts's work. If you want more information, consult his books: "Tools for Dreamers" and "Skills for the Future". Details are in FAQ Part 1.
Anchoring
NLP techniques are also useful to help you remember, at an instant, what psychological state you must be in to be creative. NLP practitioners can "anchor" a particular state in which you are most creative. In fact, you anchor these states yourself. Many people have to be in a certain room, or standing or walking, or in some particular context in order to be creative. The context is the anchor that reminds your mind/body to be creative.
A Demo on using NLP As An Aid to Creativity
The next time you find yourself being creative, for example, when you are noticing it is easy to generate a lot of ideas or you find it easy to elaborate on an idea, notice the position of your body and observe the context in which you are operating. Record as much as you can about how you "made yourself" creative. You can then use that information (the more details, the better) to set the state for being creative in the future, i.e., put yourself in a matching body posture and in a similar particular context as before.
Another technique is to make a tape recording of everything that is going on in your mind and body when you are being creative. If you're with someone else, have them tell you everything they noticed you doing. (Tell them to focus on behaviors, not interpretations of the behavior, e.g., the observation "you were smiling" is not as useful as "the corners of your mouth were turning upwards"). Then, listen carefully to their report and use that information to recreate the context the next time you want to be creative.
A Caution And An Invitation
Keep in mind, the suggested activities outlined in the last two paragraphs do not, in any way, do justice to the sophistication of NLP techniques. If you're interested in NLP as a way to enhance your creative potential, read, talk with those who know a lot about NLP, and find a good trainer.
Other NLP Resources
- <link outdated-removed> Web site.
- NLP FAQ and Resources The home of the alt.psychology.nlp newsgroup.
- NLP and DHE Neuro-linguistic programming and design human engineering.
Regards,
Rajat
From India, Pune
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I would like to share information on NLP as it is an important source of creativity.
NLP Techniques
Practitioners of Neuro-Linguistic Programming (NLP), also known as the "science of subjective experience," have produced a number of techniques that can be used to describe the strategies used by highly effective people.
Essentially, experts are carefully studied and analyzed (or modeled in NLP parlance) as a way to make conscious and unpack the mental strategies they used to get expert results. Once the strategies are decoded, they are then available for others to enhance their own expertise. Milton Erickson, the well-known hypnotherapist, and Virginia Satir, one of the world's best-known family therapists, were among those who were modeled by NLP practitioners.
Interestingly, it appears that people can be modeled even after they have died! A case in point: Robert Dilts (one of the creators of NLP) recently modeled Walt Disney. He studied his writings, observed films of him doing his work, and interviewed people that worked with him. From this, he extracted the Disney Creativity Model, which will be briefly described below.
The basic strategy for modeling people is to either observe them while performing or to have them mentally go back to a time when they were performing extremely well, and to have them describe (while reliving a particular moment of great human performance) the thought patterns, physiology, and context that supported the performance.
The modeler might also choose to elicit a strategy that led to poor performance or a failure to get the same results as a "counter model." This is done to provide a contrast that clearly points out the distinctions between the two states of "success" and "failure." NLP provides a set of linguistic and observational tools that ensure useful descriptions and models.
Walt Disney
Dilts concluded that Walt Disney moved through three distinct states when he produced his work. Dilts called them Dreamer, Realist, and Critic. Each of these three stages has distinct physiology and thought patterns and can be consciously employed by individuals who want to improve their creative performance.
It is beyond the scope and mandate of this FAQ to elaborate any further on Dilts's work. If you want more information, consult his books: "Tools for Dreamers" and "Skills for the Future". Details are in FAQ Part 1.
Anchoring
NLP techniques are also useful to help you remember, at an instant, what psychological state you must be in to be creative. NLP practitioners can "anchor" a particular state in which you are most creative. In fact, you anchor these states yourself. Many people have to be in a certain room, or standing or walking, or in some particular context in order to be creative. The context is the anchor that reminds your mind/body to be creative.
A Demo on using NLP As An Aid to Creativity
The next time you find yourself being creative, for example, when you are noticing it is easy to generate a lot of ideas or you find it easy to elaborate on an idea, notice the position of your body and observe the context in which you are operating. Record as much as you can about how you "made yourself" creative. You can then use that information (the more details, the better) to set the state for being creative in the future, i.e., put yourself in a matching body posture and in a similar particular context as before.
Another technique is to make a tape recording of everything that is going on in your mind and body when you are being creative. If you're with someone else, have them tell you everything they noticed you doing. (Tell them to focus on behaviors, not interpretations of the behavior, e.g., the observation "you were smiling" is not as useful as "the corners of your mouth were turning upwards"). Then, listen carefully to their report and use that information to recreate the context the next time you want to be creative.
A Caution And An Invitation
Keep in mind, the suggested activities outlined in the last two paragraphs do not, in any way, do justice to the sophistication of NLP techniques. If you're interested in NLP as a way to enhance your creative potential, read, talk with those who know a lot about NLP, and find a good trainer.
Other NLP Resources
- <link outdated-removed> Web site.
- NLP FAQ and Resources The home of the alt.psychology.nlp newsgroup.
- NLP and DHE Neuro-linguistic programming and design human engineering.
Regards,
Rajat
From India, Pune
Acknowledge(0)Amend(0)
Dear all,
Try to solve the puzzle below and let me know your answers.
4 criminals are caught and are to be punished. The Judge allows them to be freed if they can solve a puzzle. If they do not, they will be hanged. They agreed.
The 4 criminals are lined up on some steps (shown in the picture). They are all facing in the same direction. A wall separates the fourth man from the other three.
To summarize:
Man 1 can see men 2 and 3.
Man 2 can see man 3.
Man 3 can see none of the others.
Man 4 can see none of the others.
The criminals are wearing hats. They are told that there are two white hats and two black hats. The men initially don't know what color hat they are wearing. They are told to shout out the color of the hat that they are wearing as soon as they know for certain what color it is.
They are not allowed to turn around or move.
They are not allowed to talk to each other.
They are not allowed to take their hats off.
Who is the first person to shout out and why?
PS: There is no trick to the question, just logical deduction.
From India, Pune
Acknowledge(0)Amend(0)
Try to solve the puzzle below and let me know your answers.
4 criminals are caught and are to be punished. The Judge allows them to be freed if they can solve a puzzle. If they do not, they will be hanged. They agreed.
The 4 criminals are lined up on some steps (shown in the picture). They are all facing in the same direction. A wall separates the fourth man from the other three.
To summarize:
Man 1 can see men 2 and 3.
Man 2 can see man 3.
Man 3 can see none of the others.
Man 4 can see none of the others.
The criminals are wearing hats. They are told that there are two white hats and two black hats. The men initially don't know what color hat they are wearing. They are told to shout out the color of the hat that they are wearing as soon as they know for certain what color it is.
They are not allowed to turn around or move.
They are not allowed to talk to each other.
They are not allowed to take their hats off.
Who is the first person to shout out and why?
PS: There is no trick to the question, just logical deduction.
From India, Pune
Acknowledge(0)Amend(0)
The amazing success story of K B Chandrasekhar
July 26, 2006
The story of K B Chandrasekhar, founder-CEO of Jamcracker Inc, is highly inspirational, especially for all the enterprising young Indian men who desire to be successful entrepreneurs.
Chandra's journey started in Kumbakonam, Tamil Nadu, where he was born, moving on to Trichy where he spent his early years, and then to Chennai where he received his school and college education, and finally to Silicon Valley in the United States.
It was in Silicon Valley that he struck gold, in a big way. His story is a classic modern-day tale of a middle-class young man turned multi-millionaire.
Chandra describes himself as "a serial entrepreneur and risk-taker who empowers others to accomplish their dreams."
This is his story.
The Early Years
"I come from a classic middle-class family: my grandfather, grandmother, father, mother... all living together in a joint family. Family values were strongly embedded in me as a result of this.
I was born in Kumbakonam but was in Trichy until 1968. I did my schooling at Ramakrishna School in Chennai and then joined Vivekananda College to pursue my BSc in physics because I couldn't get into engineering. In 1980, I gained admission to the Madras Institute of Technology at Anna University.
Although I was not exposed to any sort of business, my father, in those days, dabbled in shares. He encouraged me to have freewheeling discussions on various aspects of business. Those were the seventies, but I was given enough freedom to think freely. My parents were always there, supporting and encouraging me.
I didn't realize the value of it all then, but later on, I understood the impact those discussions had on my thinking. More importantly, they encouraged me to take risks. In the eighties, when working in the public sector was considered safe, I was encouraged to venture into uncharted territory, like computers.
I entered the world of computers very early, back in 1983 when I joined Wipro. Wipro is an entrepreneurial company that gave me the opportunity to explore various avenues."
To the USA
"In 1990, I moved to the US for a job assignment. Would I have had the courage to start something on my own if I had stayed in India? I believe I would have done the same thing even if I were in India. In fact, I had packed my things to return to India in 1992 because my wife and I decided we wanted to start something on our own in Bangalore. It just so happened that we found an opportunity to begin in the US.
What I mean is, the willingness to venture out on my own was always present. In 1983, I drafted a small business plan to create 'Casio calculator-based ticket punching machines' for bus conductors and sent it to Casio. We even explored starting companies by importing game kits from Korea and Taiwan for $1 per kit.
However, those ventures did not take off due to our middle-class background, lack of funds, and our inexperience.
I would have pursued business in India as well, but perhaps not on the same scale. Indian companies had the luxury of time. If you look at some successful companies in India, you will notice that it took them nearly 20 years to reach the first $100 million. However, in the US, there is no such luxury; you need to grow rapidly. The willingness to take risks was more pronounced there, and I acquired that mindset from being in the US.
I might not have had that same courage if I had been in India because I would have been more concerned about security."
First venture: Fouress
"When we were prepared to return to India, a friend at Sun Microsystems informed me about a project but wanted me to stay in the US to work on it. That's when my true entrepreneurial spirit emerged.
At that time, BFL and Mastech had just commenced operations. B V Jagadeesh, who founded BFL, was my colleague at Wipro. Jagadeesh and Sundar, one of the Mastech founders, encouraged me by saying, 'Chandra, you lead this. We will support you.'
With just $4,500 in hand and no capital, I, along with Jagadeesh and Sundar, launched Fouress, a software design company. Our mutual understanding, belief, and trust enabled us to grow the company from scratch to over a million dollars in the first two years.
I credit much of my success to my wife for her moral and physical support, standing by me and making sacrifices. For several months, we survived on basic necessities because we couldn't afford more. I didn't need to endure that because I had an $80,000 job in hand at that time. This meant it was a self-imposed challenge that you can only overcome when you are fully committed.
Additionally, we led a nomadic life without a car or home, which kept us adaptable. Had I gone to the US for studies, I may not have achieved all this as quickly."
Starts Exodus Communications
"By the end of 1993, Jagadeesh joined me as a co-founder, and together we aspired to build a larger, revolutionary company. The Internet had not yet taken off, but we ventured into the Internet business in 1993 itself, ahead of the curve. We may not have fully comprehended the risks we were undertaking. Fortunately, after we initiated our venture, the Internet boom occurred, placing us in the right place at the right time."
Destiny and Kanwal Rekhi
"I believe in destiny. Jagadeesh and I faced bankruptcy multiple times, borrowing money without assets, yet we persevered.
Destiny brought individuals like Kanwal Rekhi into our lives. He is a pioneering Silicon Valley entrepreneur who founded his first company in 1982, which went public in 1987.
By chance, I attended a TiE (The IndUS Entrepreneurs) meeting where I encountered Kanwal Rekhi. After the meeting, I expressed my interest in sending him a business plan. He provided his fax number, and I vividly remember it was in May 1995.
The very next day, I sent him a five-page executive summary of my business plan. For three months, we heard nothing from him. Then, one day, we received a voicemail from him expressing his desire to meet us. This was a pivotal moment; someone was willing to listen to us.
During his visit to our office, on the first day, he critically analyzed our plan. Despite our naivety, he recognized our passion, hunger, and willingness to take risks to make our vision a success.
Over the following months, we engaged in late-night discussions at his home about my aspirations, akin to Krishna and Arjuna. I vividly recall explaining to him on a rainy day why he should support me. And he did; he presented us with a $250,000 check.
Exodus Communications went public in 1998, marking one of the most successful IPOs of that year."
Jamcracker Inc
"Jamcracker Inc evolved from Exodus Communications. While Exodus focused on infrastructure, Jamcracker aimed to simplify IT, treating it as a utility. With this straightforward vision, I, along with two Stanford MBA graduates, Herald Chen and Mark Terbeek, founded Jamcracker Inc in 1999.
Although we faced initial challenges, Jamcracker has now become a leader in on-demand IT services."
For rural India
"I initiated efforts for rural India through n-Logue due to the significant urban-rural divide I observed. The key question was, 'How do we ensure that the masses benefit from IT?' This was not charity-driven, as I believe in purposeful actions.
Our one-year-old company, Akshaya, which is experiencing rapid growth, combines communication with on-ground personnel. My greatest satisfaction lies in implementing innovative methods to streamline transactions in rural settings, aggregate small volumes into larger ones, establish branding, and create a robust distribution network. We are encouraging farmers to enhance productivity by introducing new approaches. My role in this endeavor is that of a facilitator."
Indians, crabs?
"Indians were once likened to 'crabs' due to a perceived lack of mutual assistance. The belief was that two Indians would never support each other. However, my success, and that of many others, can be attributed to support received from Indian counterparts globally. Notably, my initial $200,000 loan was provided by a Pakistani.
I always advise budding entrepreneurs, 'Do not believe that lack of funds impedes progress. All you need is a grand vision and the dedication to pursue it wholeheartedly. Others will invest in your dream only if they see your unwavering commitment.'"
Indians, cautious?
"Our upbringing often emphasizes caution over risk-taking. Rather than encouraging trial and possible failure, we are guided to be cautious. We tend to prioritize saving over spending and are consistently concerned about the future. This cautious approach may stem from limited opportunities in the past."
Indians, innovators?
"Indians are undoubtedly capable of innovation, hindered only by a system that discourages risk-taking. When Indians operate in other environments, they exhibit a willingness to take risks. This shift is not inherent in our nature; rather, it is influenced by the surrounding environment. The landscape is evolving, especially in recent years."
"Why a research centre at Anna University?
I envision India becoming the global knowledge hub, necessitating world-class research. Previously, research activities were confined within various institutes. Establishing the center also reflects my affection for my alma mater. It serves as a testament to the importance of educational institutions evolving into centers of excellence.
I am dedicated to showcasing the capabilities of Indian talent and proving our capacity to produce global leaders. The incubator, named svapas (www.s
From India, Pune
Acknowledge(0)Amend(0)
July 26, 2006
The story of K B Chandrasekhar, founder-CEO of Jamcracker Inc, is highly inspirational, especially for all the enterprising young Indian men who desire to be successful entrepreneurs.
Chandra's journey started in Kumbakonam, Tamil Nadu, where he was born, moving on to Trichy where he spent his early years, and then to Chennai where he received his school and college education, and finally to Silicon Valley in the United States.
It was in Silicon Valley that he struck gold, in a big way. His story is a classic modern-day tale of a middle-class young man turned multi-millionaire.
Chandra describes himself as "a serial entrepreneur and risk-taker who empowers others to accomplish their dreams."
This is his story.
The Early Years
"I come from a classic middle-class family: my grandfather, grandmother, father, mother... all living together in a joint family. Family values were strongly embedded in me as a result of this.
I was born in Kumbakonam but was in Trichy until 1968. I did my schooling at Ramakrishna School in Chennai and then joined Vivekananda College to pursue my BSc in physics because I couldn't get into engineering. In 1980, I gained admission to the Madras Institute of Technology at Anna University.
Although I was not exposed to any sort of business, my father, in those days, dabbled in shares. He encouraged me to have freewheeling discussions on various aspects of business. Those were the seventies, but I was given enough freedom to think freely. My parents were always there, supporting and encouraging me.
I didn't realize the value of it all then, but later on, I understood the impact those discussions had on my thinking. More importantly, they encouraged me to take risks. In the eighties, when working in the public sector was considered safe, I was encouraged to venture into uncharted territory, like computers.
I entered the world of computers very early, back in 1983 when I joined Wipro. Wipro is an entrepreneurial company that gave me the opportunity to explore various avenues."
To the USA
"In 1990, I moved to the US for a job assignment. Would I have had the courage to start something on my own if I had stayed in India? I believe I would have done the same thing even if I were in India. In fact, I had packed my things to return to India in 1992 because my wife and I decided we wanted to start something on our own in Bangalore. It just so happened that we found an opportunity to begin in the US.
What I mean is, the willingness to venture out on my own was always present. In 1983, I drafted a small business plan to create 'Casio calculator-based ticket punching machines' for bus conductors and sent it to Casio. We even explored starting companies by importing game kits from Korea and Taiwan for $1 per kit.
However, those ventures did not take off due to our middle-class background, lack of funds, and our inexperience.
I would have pursued business in India as well, but perhaps not on the same scale. Indian companies had the luxury of time. If you look at some successful companies in India, you will notice that it took them nearly 20 years to reach the first $100 million. However, in the US, there is no such luxury; you need to grow rapidly. The willingness to take risks was more pronounced there, and I acquired that mindset from being in the US.
I might not have had that same courage if I had been in India because I would have been more concerned about security."
First venture: Fouress
"When we were prepared to return to India, a friend at Sun Microsystems informed me about a project but wanted me to stay in the US to work on it. That's when my true entrepreneurial spirit emerged.
At that time, BFL and Mastech had just commenced operations. B V Jagadeesh, who founded BFL, was my colleague at Wipro. Jagadeesh and Sundar, one of the Mastech founders, encouraged me by saying, 'Chandra, you lead this. We will support you.'
With just $4,500 in hand and no capital, I, along with Jagadeesh and Sundar, launched Fouress, a software design company. Our mutual understanding, belief, and trust enabled us to grow the company from scratch to over a million dollars in the first two years.
I credit much of my success to my wife for her moral and physical support, standing by me and making sacrifices. For several months, we survived on basic necessities because we couldn't afford more. I didn't need to endure that because I had an $80,000 job in hand at that time. This meant it was a self-imposed challenge that you can only overcome when you are fully committed.
Additionally, we led a nomadic life without a car or home, which kept us adaptable. Had I gone to the US for studies, I may not have achieved all this as quickly."
Starts Exodus Communications
"By the end of 1993, Jagadeesh joined me as a co-founder, and together we aspired to build a larger, revolutionary company. The Internet had not yet taken off, but we ventured into the Internet business in 1993 itself, ahead of the curve. We may not have fully comprehended the risks we were undertaking. Fortunately, after we initiated our venture, the Internet boom occurred, placing us in the right place at the right time."
Destiny and Kanwal Rekhi
"I believe in destiny. Jagadeesh and I faced bankruptcy multiple times, borrowing money without assets, yet we persevered.
Destiny brought individuals like Kanwal Rekhi into our lives. He is a pioneering Silicon Valley entrepreneur who founded his first company in 1982, which went public in 1987.
By chance, I attended a TiE (The IndUS Entrepreneurs) meeting where I encountered Kanwal Rekhi. After the meeting, I expressed my interest in sending him a business plan. He provided his fax number, and I vividly remember it was in May 1995.
The very next day, I sent him a five-page executive summary of my business plan. For three months, we heard nothing from him. Then, one day, we received a voicemail from him expressing his desire to meet us. This was a pivotal moment; someone was willing to listen to us.
During his visit to our office, on the first day, he critically analyzed our plan. Despite our naivety, he recognized our passion, hunger, and willingness to take risks to make our vision a success.
Over the following months, we engaged in late-night discussions at his home about my aspirations, akin to Krishna and Arjuna. I vividly recall explaining to him on a rainy day why he should support me. And he did; he presented us with a $250,000 check.
Exodus Communications went public in 1998, marking one of the most successful IPOs of that year."
Jamcracker Inc
"Jamcracker Inc evolved from Exodus Communications. While Exodus focused on infrastructure, Jamcracker aimed to simplify IT, treating it as a utility. With this straightforward vision, I, along with two Stanford MBA graduates, Herald Chen and Mark Terbeek, founded Jamcracker Inc in 1999.
Although we faced initial challenges, Jamcracker has now become a leader in on-demand IT services."
For rural India
"I initiated efforts for rural India through n-Logue due to the significant urban-rural divide I observed. The key question was, 'How do we ensure that the masses benefit from IT?' This was not charity-driven, as I believe in purposeful actions.
Our one-year-old company, Akshaya, which is experiencing rapid growth, combines communication with on-ground personnel. My greatest satisfaction lies in implementing innovative methods to streamline transactions in rural settings, aggregate small volumes into larger ones, establish branding, and create a robust distribution network. We are encouraging farmers to enhance productivity by introducing new approaches. My role in this endeavor is that of a facilitator."
Indians, crabs?
"Indians were once likened to 'crabs' due to a perceived lack of mutual assistance. The belief was that two Indians would never support each other. However, my success, and that of many others, can be attributed to support received from Indian counterparts globally. Notably, my initial $200,000 loan was provided by a Pakistani.
I always advise budding entrepreneurs, 'Do not believe that lack of funds impedes progress. All you need is a grand vision and the dedication to pursue it wholeheartedly. Others will invest in your dream only if they see your unwavering commitment.'"
Indians, cautious?
"Our upbringing often emphasizes caution over risk-taking. Rather than encouraging trial and possible failure, we are guided to be cautious. We tend to prioritize saving over spending and are consistently concerned about the future. This cautious approach may stem from limited opportunities in the past."
Indians, innovators?
"Indians are undoubtedly capable of innovation, hindered only by a system that discourages risk-taking. When Indians operate in other environments, they exhibit a willingness to take risks. This shift is not inherent in our nature; rather, it is influenced by the surrounding environment. The landscape is evolving, especially in recent years."
"Why a research centre at Anna University?
I envision India becoming the global knowledge hub, necessitating world-class research. Previously, research activities were confined within various institutes. Establishing the center also reflects my affection for my alma mater. It serves as a testament to the importance of educational institutions evolving into centers of excellence.
I am dedicated to showcasing the capabilities of Indian talent and proving our capacity to produce global leaders. The incubator, named svapas (www.s
From India, Pune
Acknowledge(0)Amend(0)
We lost the creativity to score good marks from the school exams itself where we learn to do the things where every answer has a limit and a boundary. As it is said, "Children lose marks in artwork when the color they use goes outside the boundary." Let's explore, think better, and do better.
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