IndEcoSocial Framework

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Presentation on "IndEcoSocial Framework" delivered by Dr. Pallavi Mody & Dr. Anil Vaidya at Asia Competitiveness Forum 2012 in Thought Leadership Track

Presentation on "IndEcoSocial Framework" delivered by Dr. Pallavi Mody & Dr. Anil Vaidya at Asia Competitiveness Forum 2012 in Thought Leadership Track

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  • 21st Century is the Asian Century-IMF, WB

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  • 1. Asia Competitiveness Forum 2012 26-27 April ‘12 Delhi India Competitiveness – Economic Development Prosperity and Creating Shared Value IndEcoSocial Framework Dr. Pallavi Mody Dr. Anil Vaidya S.P. Jain Institute of Management and Research (SPJIMR) Mumbai, IndiaInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 2. The Changing World Economic OrderInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 3. China and India Emerge as the Powerhouses of 21st Century GDP Growth in India & China Size of the Economy India & China Nominal GDP in US $ Billion India China (Proj) 14 12.7 13 1990 2000 2010 2020 12 11.3 10.4 10 10.1 9.6 9.4 9.6 9.9 9.5 India 300 500 1,600 4,000 9.1 9.2 8.1 8 6.8 7.4 China 400 1,000 6,000 12,000 6.4 6 GDP at PPP $ Billion 2010 4 2 India 4000 0 China 10,000 2004 2005 2006 2007 2008 2009 2010 2011 Source: IMF, Figures rounded Source: IMFInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 4. Businesses: The India Way • Western Efficiency and Eastern Ethos • Stakeholders vis-à-vis Shareholders • Businesses and Socio-Economic Goals • Businesses and Economic Development • Prosperity and Shared ValueInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 5. IndEcoSocial Framework 1. The businesses that started with more out of “Societal Concern”. Some Examples: • Amul • Lijjat Papad • Fabindia 2. The IT industry and its impact on economic development through clusters and shared values creation through "IndEcoIT" model.Influencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 6. The Story of Amul The Co-operative Milk Procurement • 3.1 million milk producer member families • 9.4 million litres of milk procured per day • Rs. 150 million ($ 2.99 million) disbursed in cash daily • 15,760 village societies • 15 District Unions The Co-operative Marketing • 50 sales offices • 5,000 wholesale dealers • 7,00,000 retailersInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 7. The Story of Lijjat Papad Co-operative Entrepreneurial initiatives of Female Empowerment • 43,000 women • 79 branches • 27 divisions • Turnover of Rs. 650 crore • Exports Rs. 29 croresInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 8. The Story of Fabindia For Profit Business but with a Mission to Protect Traditional Art and Artisans • 40,000 artisans consider Fabindia as their business partner and well-wisher • Rs. 400 crore of turnover • The artisans grew with the firm by learning techniques for greater value addition • Fabindia has become a brand that cares • Fabindia earns the highest net margin in the retails industry • Valuation of Fabindia is soaringInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 9. Amazing Developments in India IT WorldInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 10. The India IT The Players and Environment Indian IT Firms & their global delivery model Customers - Global and New Information Economy Domestic Government and initiatives Global dynamics Indian Society & economic DevelopmentInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 11. Growth of IT-BPO sector Social Year 2000 Year 2005 Year 2011 Indirect Value 56,000 105,000 2,500,000 Employment employees employees employees 9 million Creation Economic Year 2000 Year 2011 Urban & Bangaluru, Value Rural Hyderabad 1.1% of 6.4% of Creation Development & 2nd , 3rd GDP GDP . tier citiesInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 12. Shared Value Creation through Clustering & Corporate Communities • IT industry in India evolved through phases – Low cost application development, BPO, IT services towards High Value Product Development, Engineering etc. • Clustering and Interdependence has been mainstay of the industry • In addition to economic value generation social value creation has been high on industry agenda – Direct involvement through sustainability efforts – Indirect contribution through government initiativesInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 13. E-Governance Social value through transparency and efficiency • Government of India and State Governments have launched various programs towards – Openness and transparency – Efficiency in government processes • Government-citizen interface - examples – Land records, Income tax, Corporate affairs – Agricultural support to farmers on rain, soil, prices etc. – Medical help in rural areas through VSAT communication • IT firms develop and implement government digitization & communication projects – In India as well as other countriesInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 14. Synthesizing two models: IndEcoSocial Framework Social Entrepreneur Model Social value & Social Social Economic Entrepreneurs cause Balance Economic Indirect Performance Social value Indian IT Thru Firms Clustering , Communities, I nnovations & Shared value Economic creation Developm Direct ent Social IndEcoIT Model value of Indian IT companiesInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR
  • 15. ThanksInfluencing Practice & Promoting Value Based Growth Copyright @SPJIMR