When we speak of innovation, the reference typically is to technologies which leads to the creation of a new solution or some new characteristics in an current solution. This can be in the service sector as well, exactly where a new providing is offered to prospects in, say, banking or insurance coverage or e-commerce. Dhargalkar, in this rather intriguing book It’s Logical, talks about company models that have innovation at their core which have to have not necessarily place one thing physical on the table. Innovation in performing company is a quite highly effective tool to additional the best line and can be completed by deep pondering and have to have not necessarily involve building a new solution or service. As the reader peruses the pages and absorbs the examples provided by the author, 1 can get an concept of what methods should really be incorporated. In truth, what seem to be rudimentary thoughts are essentially deep-rooted and the reader would agree that it is just as well very simple that they are highly effective.
Let us see how this performs. Conventional economics talks of all the things getting a zero-sum game exactly where any obtain for 1 individual has to be a payment produced by an additional. But can we consider of a win-win circumstance exactly where everybody ends up gaining? This is manifested in the now popular Uber model which began off with Uber asking fleet operators to use their vehicles for ferrying passengers, which later got extended to the cab drivers owning cars and operating them primarily based on the Uber principles on pricing and guidelines on accepting fares. Everyone gained and Uber runs a business with no inventory and commuters spend a reduced expense, though the drivers personal an asset and make cash and work as lengthy as they want to. This is an revolutionary company model which performs and we can consider of various such situations exactly where a win-win circumstance is developed.
The author also offers an instance of how a competitor of a client was capable to export goods of an identical make at a a great deal reduced cost, which looked like a loss that can not be sustained. But the revolutionary element of the company program was that the competitor leveraged the duty drawback scheme offered by the government and applied the advantage to sell other imports at 3 instances the cost in the domestic industry, as opposed to the client who purchased highly-priced machinery for the solution that was getting made. In a way, this is lateral pondering and though formulating methods, corporations can discover such selections which assist in increasing the company devoid of the regular strait-jacketed method.
Dhargalkar makes use of these type of examples to showcase the energy of innovation, which goes beyond technologies. Besides, he argues that technologies comes in only just after the finish user is understood. Here, he shows how Ford produced the error of decreasing some luxury characteristics like automatic windows for rear seats in India to maintain fees down, realizing how cost-sensitive the industry is. This was a miscalculation, as in India, such vehicles are driven by chauffeurs, though the owner sat behind and missed this facility. The model, therefore, did not work. In western nations, men and women drive their personal car and, therefore, rear auto widows are not expected. Therefore, understanding the user or the final-mile user connect is expected to run a company effectively. Also, when plasma screen TVs came in, some did not succeed as they have to adjust the size and appear with the walls in the homes and the space occupied.
This is a book which is filled with stories and sounds sensible and genuinely tends to make entrepreneurs consider. Usually, books on tactic and innovation have a tendency to turn out to be pedagogical and the reader may well drop interest. This 1 is various and therefore tends to make straightforward reading. The query answered is irrespective of whether 1 can do much better by working about the company models which may well not involve a new technologies. Working smarter by way of crafting cutting methods can work much better. The author talks of how a road anyplace has to deal with myriads of stakeholders, which implies that a lot of believed has to go into how it should really be structured to take care of public transport, parking, two-wheelers, beggars, vendors, garbage collection, sweepers and so on and this is one thing which is missed by public authorities. Careful application of the thoughts can essentially make commonplace items like roads superior to other folks.
He does place ahead of the reader his personal experiences as a consultant-cum-teacher, which are rather intriguing and throw some beneficial insights. Investment advisors have to have to do a deep-dive evaluation of their clientele and though most consultants appear at demographics, Dhargalkar argues that finer sub-classification of neighborhood can add delta to the understanding, as India is heterogenous and age and earnings are just preliminaries, though area and neighborhood have their personal traits. To hit the nail on the head, 1 can do such evaluation which clicks with clientele.
At an additional level, he also shows how corporate methods can be drawn from motion pictures and cricket and offers illustrations which illustrate how non-urban India is increasing and has its demands that have to have to be satiated. This has to be leveraged by company as it is a big chance and therefore customising solutions for this section is an vital element of tactic.
It’s Logical is a book that all CEOs should really study so that they can introspect their company and then ask concerns on irrespective of whether they can do much better for themselves by pondering differently. Very usually, the answer will be a yes. He also has an instance of why prospects shunned 1 bank branch though other folks did nicely. It was a very simple issue like access to types that had to be provided, for which 1 had to maintain going to various counters. Even deciding on which drink does a vada pav eater likes was discovered by way of a game exactly where tea was preferred rather than a cold drink! This is wonderful although very simple assistance primarily based on the author’s approaches.
Madan Sabnavis is chief economist, CARE Ratings