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Disruptive Value Innovation
 

Disruptive Value Innovation

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The fusion concept of Disruptive Value Innovation to usher in true technology returns to bottom of the business pyramid

The fusion concept of Disruptive Value Innovation to usher in true technology returns to bottom of the business pyramid

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    Disruptive Value Innovation Disruptive Value Innovation Document Transcript

    • Venkateswar Reddy Melachervu Head of Technology and Solutions Apollo Hospitals Group Date: 25th Oct 2011Disruptive Value InnovationUshering in the power of technology to the bottom of businesses pyramidringing in real IT returnsTagsDisruptive Value Innovation, The IT Leverage Drivers, The Big Enterprise IT Puzzle,Cloud Technologies, Reality Check, Cost Effective Technology Innovations for Bottom ofThe Business Pyramid, Integrated IT, Wireless Broadband, No-frills Turn-key Solutions,True Technology RoIs, Leveraging ITDisclaimerThe views, concepts, notions expressed in this column are personal and may notrepresent the views of the employer or publisher of the column writer.PrologueInformation Technology has been available largely for the last 5 to 6 decades for thebusinesses. Most of western and many of rest of the world businesses have beenleveraging the IT to be competitive and achieve scales of business economies acrossvarious layers of their organizations – operations, offerings, supply chain, businesspartnerships, workforce productivity, sales etc.However, leveraging IT cost-effectively and seamlessly in an integrated way catering to360 degrees of constituents an organization remains an unsolved jigsaw puzzle for mostof the organizations in emerging economies (e.g. BRIC1 Nations) and sizable companiesin developed nations in today’s globalized economy.The following chart is a representation of where various industries stand in adaptingand leveraging IT for achieving scales of economy, efficiency, winning, retaining theircustomers and staying as leaders in their respective businesses for longer periods, un-beaten. As you can see very few organization are above the lower threshold of adaptionand leveraging IT – which is a minimal point of true technology RoIs2. ©”…dare to dream; care to win…”1 BRIC – Brazil, Russia, India and China2 RoI – Return on Investment Email: vmelachervu@gmail.com | website: www.linkedin.com/in/vmelachervu © Venkateswar Reddy Melachervu 2009-2011. All rights reserved.
    • Venkateswar Reddy Melachervu Head of Technology and Solutions Figure 1: IT Adaption and Leverage Across BusinessesIT Leverage DriversSome of the key factors that influence espousing and leveraging IT by the organizationsacross industries are:  Type of business – new age businesses or traditional businesses  Average education level of the organizations  Minimal IT usage skill level of the organization  Complexity of IT solution(s)  Cohesiveness of multiple IT sub-systems  Multitude of IT vendors  IT investment (upfront and operating)  Operational efficiency goals  Global business opportunities and competition  Seamless and sufficient data connectivity – wired, wireless, urban, remote etc.  State promotion and subsidies on IT usageThe Big Enterprise IT Puzzle ©”…dare to dream; care to win…”When we look deep into the challenges faced by the businesses in the bottom of thegraph above, we can deduce that these challenges are nothing but variousmanifestations of the key factors addressed in IT Leverage Drivers above which lookslike a big jigsaw puzzle - The Big Enterprise IT Jigsaw. Email: vmelachervu@gmail.com | website: www.linkedin.com/in/vmelachervu © Venkateswar Reddy Melachervu 2009-2011. All rights reserved.
    • Venkateswar Reddy Melachervu Head of Technology and Solutions 3 Figure 2: The Big Enterprise IT JigsawThese jigsaw puzzle pieces are applicable across the industries, verticals and businesssizes. These pieces are more visible and tangible especially in SMEs4, traditionallyconservative sectors like healthcare, construction, manufacturing etc.With the proliferation and innovations in technologies like – virtualization, cloudcomputing, 3G data, wireless broadband, web 2.0, power-in-the-palm (smart phones),convergence of web, PSTN5 and PLMN6, throw-away bandwidth charges - companiesacross all cross-sections have better and opportune environment now in adapting andleveraging IT than in ever.Just imagine the power and reach a small business in the nook and corner of a countrycan get with the potent combination of Wireless Broadband (4G7) and an integratedbusiness IT applications offered in Cloud and accessed through simply a browser!Disruptive Value Innovation ©”…dare to dream; care to win…”Like innovations that changed the world – electricity, automobile, telephone, computer,internet etc., emerging innovations – cloud computing, power-in-the-palm (smart phoneand tab) combination stand on a firm and potent ground that will change the landscapeof leveraging IT enabling organizations in rapidly and instantaneously responding todynamically changing markets and customers in this globalized competitive world –forever.While we have been witnessing SaaS8, PaaS9, IaaS10 for some time now, the criticallymissing things are:3 TOC – Total Cost of Ownership4 SMEs – Small and Medium Enterprises5 PSTN – Public Switched Telephony Network6 PLMN – Public land Mobile Network7 4G – 4th Generation Network8 SaaS – Software as a Service9 PaaS – Platform as a Service Email: vmelachervu@gmail.com | website: www.linkedin.com/in/vmelachervu © Venkateswar Reddy Melachervu 2009-2011. All rights reserved.
    • Venkateswar Reddy Melachervu Head of Technology and Solutions  The true integration of SaaS, PaaS, IaaS flexibly catering to 360 degrees IT needs of the organizations of different sizes – especially those at the bottom left quadrant of the graph  Lack or absence of associated innovative business models in offering cost- effective, truly integrated, wholistic, platform-centric, core business-focused services-driven, turn-key IT offerings for the organizations especially at the bottom of the graph ushering in true returns of the ITTo create a conceptual model that addresses the above lacunae, let us examine twopowerful contemporary conceptual frameworks that are well respected and acceptedglobally.  Disruptive Innovation - helps create a new market and value network and eventually goes on to disrupt an existing market and value network - principally driven by technological innovations  Value Innovation - the simultaneous pursuit of differentiation and low cost that creates new demand in an uncontested market space or a Blue Ocean amongst Red Oceans – principally driven by innovations in business models that create value to the consumers  Integrated Platform-centric Approach - It is also important to understand the evolutionary approaches that some of the IT industry leaders like Raman Roy are envisioning in emerging economies for the next leapfrog Figure 3: The Next Leapfrog for IT Companies11 ©”…dare to dream; care to win…”Now imagine an innovative value-driven integrated technology platform-centric modelcombining a disruptive integrated services-based business model. It is not a silver bulletframework nor a magical new notion, but an evolutionary fusion approach ofcontemporary notions emphasizing the integrated technology platform, turnkeyintegrated services and flexible framework - the combine of which will create valueinnovatively ushering in true returns on technology investments for the businesses of allsizes and across the industries – Disruptive Value Innovation.10 IaaS – Infrastructure as a Service11 Source : Raman Roy, Quatrro, presentation to NASSCOM 2010 Email: vmelachervu@gmail.com | website: www.linkedin.com/in/vmelachervu © Venkateswar Reddy Melachervu 2009-2011. All rights reserved.
    • Venkateswar Reddy Melachervu Head of Technology and Solutions Figure 4: Disruptive Value Innovation™Some of the expected outcomes of Disruptive Value Innovation framework are outlinedin the below diagram. ©”…dare to dream; care to win…” Figure 5: Characteristics of Disruptive Value Innovation™I plan to detail and unravel how Disruptive Value Innovation framework can solve TheBig Enterprise IT Jigsaw and benefit in multi-dimensions across cross-section ofbusinesses and industries with case studies – especially for those business where thetechnology adaption and leveraging IT is beneath the threshold and the technology RoIsare not clear and real, in the coming weeks through this guest column series – DisruptiveValue Innovation. Email: vmelachervu@gmail.com | website: www.linkedin.com/in/vmelachervu © Venkateswar Reddy Melachervu 2009-2011. All rights reserved.