Grill 2 Lm2 Nanovation


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This is the second learning metaphor which we are all familiar with .Learning from a innovation to create other Nanovations.
This is a presentation i put together last year after drawing a pattern to the way nano was built and read other news reports on innovation and drew a parallel and a common thread to arrive at NANOVATION with connections to other companies as well.
The Nanovation model can be visibly replicated as well.More importantly could be taught in the clasroom leading to a field project.
More Power to you
Warm regards
Shravan Shetty
Career Analyst |Executive Coach|Facilitator

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Grill 2 Lm2 Nanovation

  1. 1. Get<br />Real<br />Impact<br /> Learning<br />Leaps<br />Learning Metaphors from everywhere<br />A concept of compilation & learning device leverage from<br />ShravanShetty<br />Career Analyst |Executive Coach|Facilitator<br />Metaphor # 2 : Learning from a innovation model to replicate it.<br />Source :Various reports online amd offline<br />
  2. 2. Content Development& <br />Concept interpretation by <br />ShravanShetty<br />[Career Analyst| Executive Coach|Facilitator]<br />NANOVATION – Applying the NANO model of innovation<br />
  3. 3. NANOVATION<br />"Great companies are built on creating new markets, not increasing market share in existing ones,"<br />
  4. 4. What is Innovation?<br />WHAT THE Customer DESIRES?<br />
  6. 6. Broad Innovation Guidelines<br />Reference : John Seely and John Hagel:co-chairman and independent co-chairman, respectively, of the Center for Edge Innovation, a part of Deloitte & Touche USA LLP<br />
  7. 7. INNOVATION INSIGHTS<br /># 1 Don’t compartmentalize the impact of these innovations on the edge of the global economy<br /># 2 What's initially on the edge soon comes to the core<br /># 3 “These innovations will become the basis for 'attacker' strategies that can be used to challenge incumbents in more developed economies” <br />John Seely & John Hagel in “INNOVATION BLOWBACK”<br />
  8. 8. Launch of the NANO<br /><ul><li>The announcement in January by Tata Motors of its newest car, the Nano, was revealing on many levels.
  9. 9. This generated extensive coverage and commentary, but just about everyone missed the Nano's real significance, which goes far beyond the car itself</li></li></ul><li>Road to the nanovation<br />HOW NANOVATION WORKS?<br />
  10. 10. Lets start with the car <br /><ul><li>At $2,500 retail, the Nano is the most inexpensive car in the world.
  11. 11. Its closest competitor, the Maruti 800, made in India by MarutiUdyog sells for roughly twice as much.
  12. 12. The price of the entire Nano car is roughly equivalent to the price of a DVD player option in a luxury Western car. </li></li></ul><li>Thinking outside the box<br />How could Tata Motors make a car so inexpensively? <br />It started by looking at everything from scratch, applying what some analysts have described as 'Gandhian engineering' principles - deep frugality with a willingness to challenge conventional wisdom. <br />A lot of features that Western consumers take for granted - air conditioning, power brakes, radios, etc - are missing from the entry-level model.<br />
  13. 13. wHat makes the nano so cheap?<br />The engineering design<br />
  14. 14. How nano is engineered?<br />NANO is much lighter than comparable models .<br />Reduced amounts of steel in the car (including the use of an aluminum engine) and the use of lightweight steel wherever possible <br />NANO does more with less. The engineers worked to ensure that the car is smaller in overall dimensions than the Maruti.<br /> It offers about 20 per cent more seating capacity as a result of design choices such as putting the wheels at the extreme edges of the car.<br />
  15. 15. NANOVATION – ENVIRONMENT friendly & FUEL EFFICIENT<br />The car currently meets all Indian emission, pollution, and safety standards, though it only attains a maximum speed of about 65 mph. The fuel efficiency is attractive - 50 miles to the gallon<br />
  16. 16. Nano – real innovation ???<br />Western executives doubt that it represents real innovation. <br />They think of innovation as product innovation using breakthrough technologies; often, specifically, on patents.<br />Patent Comparison<br />Tata Motors filed 34 patents - design of the NANO, which General Motors files roughly 280 patents every year. The figure tallies all of GM's research efforts.<br />POINT<br />if innovation is measured only in terms of patents, no wonder the Nano is not of much interest to Western executives.<br />COUNTER POINT<br />The most valuable innovations take existing, patented components and remix them in ways that more effectively serve the needs of large numbers of customers. <br />
  17. 17. Measuring progress solely by patent creation misses a key dimension of innovation<br />
  18. 18. Nano s modular design <br />Tata Motors itself did not draw a lot of attention to what is perhaps the most innovative aspect of the Nano: its modular design.<br />
  19. 19. RATAN TATA ,CHAIRMAN: TATA GROUP observed in an interview with the “Times of London “<br />So we would create entrepreneurs across the country that would produce the car. We would produce the mass items and ship it to them as kits. <br />That is my idea of dispersing wealth. The service person would be like an insurance agent who would be trained, have a cell phone and scooter and would be assigned to a set of customers."<br />"A bunch of entrepreneurs could establish an assembly operation and Tata Motors would train their people, would oversee their quality assurance and they would become satellite assembly operations for us. <br />
  20. 20. Case in point - Cummins<br />A WiMAX breakthrough in India<br />In 2000 Cummins designed innovative 'gensets' (generation sets) to enter the lower end of the power generator market in India. <br />These modular sets were explicitly designed to lower distribution costs and make it easy for distributors and customers to tailor the product for highly variable customer environments. <br />Using this approach, Cummins captured a leading position in the Indian market and now actively exports these new products to Africa, Latin America, and the Middle East.<br />
  21. 21. ManjeetKripalani, BusinessWeek's India bureau chief on the breakthrough element of innovation citing Cummins as a case reference<br />While most of the companies pursuing this type of innovation are Indian, the US engineering firm, Cummins demonstrates that Western companies can also harness this approach and apply it effectively.<br />"This is part of a broader pattern of innovation emerging in India in a variety of markets, ranging from diesel engines and agricultural products to financial services. . <br />
  22. 22. Reality check <br />The days of customizing cars to personalize them and push their performance limits are rapidly receding into distant memory for the average customer<br />The Tata Motors/Nano approach contrasts with the strategy of most other manufacturers. For more established automakers each new model represents an advance in tight integration, with more and more of the functionality deeply embedded in electronics that truly represent a 'black box' to the customer.<br />
  23. 23. Beyond customer co-creation<br />Companies such as Tata and Cummins are going far beyond 'customer co-creation' in the narrow sense of soliciting isolated ideas from customers<br />They are building long-term personal relationships with customers, enriched by the specialized capabilities of broad networks of third parties that generate much deeper insight into customer needs and afford opportunities to tailor value.<br />
  24. 24. Book value<br />Kathleen Franz, makes it clear in her wonderful book, Tinkering: Consumers Reinvent the Early Automobile, it was the open design of early automobile models that blurred the lines between consumption and invention and led to a wave of innovations that were later embraced by the auto industry.<br />
  25. 25. Flipchart Activity<br />GUIDELINES<br />Each team has been given a flip chart and been allocated 15 minutes for brainstorming and flip chart preparation keeping in mind that you will have 5 minutes to present.<br />Your team task is to list other low cost products that hold the key to the future. Can you think of other areas where we can apply nanovation to.<br />
  26. 26. Breaking free – Tata housing<br />Tata group launches Nano homes under the name ShubhGriha, priced between Rs 3.9 lakhand Rs 6.7 lakh.<br />The first township comprising of one bedroom-kitchen flats, to be built by the group's property development arm Tata Housing Development Company will come up in Mumbai suburb Boisar, in Thane district. This model will be later expanded across several metros, tier II and III cities in the country<br />Other developers <br />Puravankara, Omaxe ,Housing Development & Infrastructure that have moved to the affordable housing segment, as there are no or few takers for expensive homes. <br />India faces a shortage of 24.7 million dwelling units, with three-fourths of this deficit being in the middle and low-income groups. <br />
  27. 27. Management gurus <br />Business frameworks which capture the race to the bottom<br />
  28. 28. Blue ocean strategy<br />CREATING NEW MARKETS <br />
  29. 29. Fortune at the bottom o f the pyramid business model <br />Bottom up innovation<br />
  30. 30. Nanovation toolkit<br /># 1 Ask the entire team to think out of the box<br /># 2 Biggest challenge is to bring down the costs . Accept it.<br /># 3 Start looking at various business models to help keep the overall project cost low<br /># 4 List out every single task that is outsourced and not outsourced. Look into it seriously to keep manpower costs low . Leverage the strengths of those more skilled on the job.<br /># 5 Keep a tab on cash flows and also ensure that quality and safety is never compromised <br />
  31. 31. ProtoypingNanovation<br />Analyze the business model of the following low cost products which intend to redefine their market space <br /># 1 Phillips - low cost lanterns and wood stove (Chullahs) developed with Maharshtra based NGO: Tara<br /># 2 General Electric – Low cost healthcare equipment through Healthy Imagination <br /># 3 IFFCO & Freeplay energy india – lanterns and torches that run on mechanical energy generated manually<br /># 4 Chotukool , a Rs 3200 nano fridge co-created by Godrej & Boyce and SwayamShikshanParyog – an NGO –microfinance institution through Sakhi retail co.<br /># 5 SKS Microfinance leveraging MFI into distribution channels fro Metro , Nokia , Airtel & Basix partnering with eureka forbes for Aqua Sure <br />