Tuesday, March 1, 2011

REFORMATION OF INNOVATION:MR/MRS CHINA AND INDIA


After a hectic day ,i want to share some  interesting stuff out here,by the way trying to revitalize the evening .i  have invented a mood driver topic today...sorry it was invented but was just seeking your attention here...yes you are right we are talking about the global innovation...here we go...starting with the country of rising sun..,


So japan is a country with rapidly aging people and has little resources.at the same time the country also facing challenges ranging from environmental problems to dwindling natural resources.its society faces numerous problems which are needed to be solved as soon as possible.and also getting danger signals from such issues,today or tomorrow japan will slowly but surely going to decline. 

 here, japan is trying to put its level best efforts to transform its society,and picking up the growth strategies to answer the unsolved myths.
where is the solution for the problem…do they know how to revitalize…every time they come up with something unique and advance one…but what about recent issues…and just look at below….

 it was the time 1980, American car executives were so shaken to find that Japan had replaced the United States as the world’s leading car maker that they began to visit Japan to find out what was going on.

They are really gonna mad with these Japanese solutions; one question roaming around here and there was ….. How could the Japanese beat the Americans on both price and reliability? 

And the second question was about the 1 minute Maggi solutions, how did they manage to produce new models so quickly?

And the one and only answer was not related to anything like subsidies or industrial policies, it was all about the Japanese business innovation. And of course the accelerator of their new system was so called “lean manufacturing”.

What we know as business innovation is a past for a country like japan.They are so innovative in their way that they are able to come up with products and services which are dramatically cheaper than their western counterpart.

I have gone through a report which states that $3,000 cars, $300 computers and $30 mobile phones that provide nationwide service for just 2 cents a minute. They are reinventing systems of production and distribution, and they are experimenting with entirely new business models. All the elements of modern business, from supply-chain management to recruitment and retention, are being rejigged or reinvented in one emerging market or another.

Yesterday we are talking about the country like china as a cheaper one…but what about today…can you please give me a name of the country without china products and services. And one more thing right here right now, I had able to find that they are also quite graduated to positioning themselves as a high segmented brands.

Whenever I asked for a Chinese product in retail stores like staple, forum or big bazar, I find that costlier than any other origin branded products.After going through such experiences here and there.one more question you may eager to ask my dear friends….

Why are countries that were known for their cheap brands now becoming leaders in innovation?

 And the answer is that the local companies are dreaming bigger dreams. Driven by a mixture of ambition and fear—ambition to bestride the global market and fear of even cheaper competitors in, say, Vietnam or Cambodia—they are relentlessly climbing up the value chain. Emerging-market industrial giants have not only proved themselves as highly competitive in their own backyards, they are also going global themselves.

The United Nations World Investment Report calculates that there are now around 21,500 MNC’s based in the emerging world. The very best knows are  such as India’s Bharat Forge in forging, China’s BYD in batteries and Brazil’s Embraer in jet aircraft, are as good as anybody in the world.(AS PER REPORTS)

At the same time Western MNC’s are investing ever bigger hopes in emerging markets. They regard them as sources of eco- growth and human resources (skilled professionals), the MNC’s expect about 70% of the world’s growth over the next few years to come from emerging markets, with 40% coming from just two countries, China and India. 

On the other hand they have also able find out that China and to a lesser extent India have been pouring resources into education over the past couple of decades. China produces 75,000 people with higher degrees in engineering or computer science and India 60,000 every year. which is termed as a warning by the renowned president of America Mr. Barack Obama.

At the same time MNC’s also very much interested in setting up the biggest R&D centre’s in emerging markets.as per some of the recent research reports “Companies in the Fortune 500 list have 98 R&D facilities in China and 63 in India”. This data itself is the evidence of trendy scope in the emerging markets.

I want to share some of the biggest R&D  milestones of the emerging countries. Particularly India and china.

General Electric’s       invested:  $50m          Place:Bangalore(biggest in world)
Cisco                                   invested:  $1 bln          place: Bangalore (second)
 Microsoft                                                                   place: Beijing (largest outside usa)
Accenture                                                                    largest workforce is in India. 

It seemed that they are also realized that they need to try harrderif they at prosper in these booming markets.

Because it is the time to appeal the billion dollar market, it also tells the unforgettable experience in the past of Google and yahoo in India and china. Here the opportunities also lie in the bottom of the pyramid.

Here, we should notice the conversion of millions of low class people to upper-middle class in the coming years and so on. (both in India and china)
If we are taking about the graduates then  in China over 5m people graduate every year and in India about 3m.

OLD IS GOLD OR NEW IS BOLD: INNOVATION RESTRUCTURE

It’s time to thinking about the modification of new edition of innovation. It is not limited to the incremental improvements to products and processes. E.g. Wal-Mart’s exemplary supply system or Dell’s application of just-in-time production to personal computers.

Alright, it is the time to end up the post here, my post will conclude by asking only 1 or 2  questions,
 What this entire means for the developed countries and for the balance of economic power.
 America adopted Ford’s production line and Alfred Sloan’s multi-div firm and swept all before it until the 1960s. The country of innovation Japan invented lean manufacturing and almost destroyed the American car and electronics industries. 

Now the emerging markets are developing their own distinctive management ideas, and Western companies will increasingly find themselves learning from their rivals, of course the developing nations. People who used to think of the emerging world as a source of cheap labor must now recognize that it can be a source of disruptive innovation as well.

Yes, Indian human resources are no more measured in the quantity yardsticks. Proudly calculated as a source of brainy population.

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