Value Innovation from a South Asian perspective - Mr. Bhupendra Sharma
VALUE INNOVATION-THE SOUTH ASIANPERSPECTIVE……CHARTERED INSTITUTE OF MARKETINGSRILANKA – JUNE 2013
Nxtlyf is an enterprise thatoffers specialized services in StrategicInnovation. Itis committed to increasing the success of Innovations out of India.It is set to be the enterprise of tomorrow working collaboratively with theworld’s experts and big ideas.
―The last few decades have belonged to a certain kindof person with a certain kind of mind—computerprogrammers who could crank code, lawyers whocould craft contracts, MBAs who could crunchnumbers. But the keys to the kingdom are changinghands. The future belongs to a very different kind ofperson with a very different kind of mind—creators andempathizers, pattern recognizers and meaningmakersThese people—artists, inventors, designers,storytellers, caregivers, consolers, big picture thinkers—will now reap society’s richest rewards and share itsgreatest joys.”Dan Pink, A Whole New Mind
• Notwithstanding the stupendous growth inindustrial poultry, rural poultry productionremained stagnant.The Industrialized approach to poultry was costintensive and had created barriers to growth andscale.RURAL POULTRY IN INDIA - 1990
RURAL POULTRY IN INDIA - BROAD CONTOURS Nearly 30 million households raise poultry in villages Poultry keeping was an age-old traditional householdactivity of women Village stocks being non-descript and low yielding,Poultry keeping was not a particularly remunerativeactivity Village Poultry was essentially a ‘no-cost’ naturallyregenerating activity, and was sustained by birds foraginghousehold, agricultural, natural waste with minimalsupplementary grains All birds essentially coloured, white birds not acceptable SO..WHAT IS THE PROBLEM HERE???
A Possible Opportunity?Could we possibly develop a multi-coloured birdwhich would produce more eggs, more meat andlive better in the harsh village scenario,essentially on scavenging no-cost materialsthereby converting an incidental householdactivity of village women, into a remunerativehousehold activityTo the advantage of both village households andKeggfarms.
Genetic Development of aHardy Village-Specific PoultryVarietyTo deliver significant gain inproductive performance inhostile & resource poor foragingvillage conditionsDevise a System to minimizeEarly Chick Mortality andprovide modicum ofimmunization.Create a Cost EffectiveDelivery System of ‘Started’chicks to Householders’doorstep in remote villages insmall numbers.The Challenge
Development of a village-specific genetic product branded ‘KUROILER’which is capable of expressing its performance potential in a hostile,resource poor, foraging village environment.Egg production 150 compared to 40. Male body weight 3.5 Kg. comparedto 1 Kg. of the ‘Desi’ male. Female 2.5 Kg. against 0.9 Kg. of ‘Desi’female.The innovation….
Mother Units –Development of motherunits, which offervocational opportunitiesand enables supply of‘Started’ birds for rangerearing in villagehouseholds, thusminimizing early chickmortality. And ameasure ofimmunization.The Innovation…2
Village Vendors –Development of VillageVendors providesoccupationalopportunity throughvending of ‘Started’chicks and also is acost effective deliverysystem tohouseholders in remotevillages in various partsof the country.The Innovation…3
The Innovative System• This Systemeffectively enables gainsof modern science andtechnology to percolatedown to remote villagehouseholds at the verybottom of the pyramid• Benefits each stakeholder
LEARNINGS THROUGH THE JOURNEY• A symbiotic relationship betweenmembers of households and poultrybirds- women and children in particular• Each bird is an identified and valuedindividual• Village poultry birds able to live inaccordance to their natural instinctsand habits. Their happiness shows• Householder fulfilment – beyondfinancial improvement includessense of status, security, purposeand well-being, specially for women• Kuroilers through natural mating,upgrade non-descript village poultry
Keggfarms is the only organization anywhere in the world to successfullyaddress the rural poultry market in significant numbers on a commerciallysustainable basis.Keggfarms currently services over 1 million village households in 13states. Generating a supplementary income of approx. US $ 100 millionprimarily from no cost waste.Keggfarms innovative delivery network involves 400 dealers, 1500village vendors, all self employed and over 1500 mother units- each amicro enterprise.Keggfarms also services around 1500 small poultry farms in rural India,each a micro enterprise.Rural Poultry- Keggfarms Impact - DIRECT
VILLAGE POULTRYA Tool forPoverty Alleviation, Woman Empowerment and Food Securityfor the rural poor.SO..WHAT”S THE VALUE IN THIS INNOVATION!!!!
PIGS - The disease of samenessCannot Stand out between offerings/strategies
If you pass the PIGS test then itmeans there is no greatdifferentiator in your services&offerings.It would be good to fail inthis test.Think about this
The PIGS areresponsible inexpediting theprocess of DECAY.Think about this
Decay is a negative feeling that permeates & breeds Pigs, andoften tired ones.It is a detractive force and is often unnoticed, non-traceable andyet has a huge impact on the success of the organization as it isthe main driver that defines how teams take on responsibilityand accountability.
Innovation Focus..SIGNIFICANTSMALL&LOCALReactive ProactiveTRIGGERIMPACTCreative problemsolvingdisruptive Game changingimprovement
MindsetsMarico Parachute VersusHindustan UnileverMindset of LEADERS and notDEFENDERS.“We will fight the battle of ideasnot resources”Copyright Nxtylf 2010Organization
Mindsets Copyright Nxtylf 2010Organization INDUSTRY“…The whole process where peopleget an idea and put together a team,raise the capital, create a product andmainstream it -- that can only be donein the US. It cant be done sitting inIndia. The Indian part of the equationis to help these innovative UScompanies bring their products to themarket quicker, cheaper and better,which increases the innovative cyclethere. It is a complementarity weneed to enhance”. CEO, Infosys,quoted in The New York Times,Inspired Rajesh Hukku
Mindsets Copyright Nxtylf 2010IndustryOrganization COUNTRYSingapore AirlinesInfluenced the image of thecountry
Mindsets Copyright Nxtylf 2010IndustryOrganization Country CULTURALFrench Wines“ new world winesare for theunsophisticated”
The Leadership Imperative – Breakthrough Mindsets….The Search for thebasis of ideas!!!!
Insights & not Ideas alone….Unique RealizationsData – Awareness.I don’t know this, I’ve just found out.New InformationI am aware (of my perspective), I discover newinformation around it (other’s perspective).InsightI discover new meaningMy view/ understanding of thecontext of business/customercompletely changes.The Start point to seek unique Insights isusually from the periphery of the currentcollective know how of the organization/Industry – towards the core.
What do these things have in common? Cellular phones, Walkmans, Childrens’ disposable camera, Online grocery stores, Sugar substitutes, CDs, Fax machines that copy/scan/videoconference… KuroilersNo body askedfor these
NarcissismLooking ahead through the rear-view mirrorSelf projecting
NarcissismEstablished• Car for the Indian rural market• Tetra Pak• Kellogg Cereal• Smokeless StovesUnder-served
What Consumers ReallyWantBusinesses broadly misjudgewhat consumers want fromthem online. In particular,marketers often believe thatconsumers interact with themon social media to join acommunity and feelconnected to the brand. Butconsumers have little interestin having a relationshipbeyond the merelytransactional.Their top reasons forconnectingonline : to get information anddiscounts, and to buy things.
Baton Passing ( secondary source oflearnings and knowingInsight cannot be cut-paste – it only happens whenit is first hand.Fertilizer company –What do farmers want?
Insights is a process ofuncovering blindspots&cancome by speaking to just oneperson too.Insights don’t need asample sizeThink about this
Same Insight SourcesInsights cannot be different if the sources are thesame.
What Blocks Insight?• Narcissism• Baton Passing• Same Insight Sources
Insight Sourcesw Value Creation, Models, industry impactNew ValueCreation, Models,industry impactForms, Formatsand BenefitsMe-too SolutionsPrice/ packaging/communicationAspirationLevelofdifferentiationSources of InsightFamiliar Unfamiliar,SimilarUnfamiliar,Dis-similarCurrent users, non-users, potentialintending customers,channel, existingcompetitionEarly adopters/alliedindustries/new start-ups -disruptivesolutions/ selfexperimenting usersLeaders of dissimilarindustries/ Futurists/crowd sources/visualizers/ Historicaldeterminants
Insights at multiple levels..Opportunity Insights-workabilitySolution Insights-acceptabilityScale Insights - scalabilityRetail Industry in India
The Leadership Imperative – Breakthrough Mindsets….Preparing yourorganization/team!!!!The Search for the basis of ideas….
The ‘V’ Map- nXtlyf’s Innovation Leadershipframework
Where are ‘V’?BEHAVIORSHigh• Quality andrichness of ideas• DemonstratedInitiativeHigh• Understanding thepurposeof the ideasat work..• Interpersonal Level• connect to the Plan
Where are ‘V’?BEHAVIORSLOCATIONOutwardInwardTRIGGERChallenge/aspirationsMandateSelf preservationFunctionalexcellenceSelf-Preservation
My personal beliefs-VinodKapoor• It is the mindset that has the greatest influence on anindividuals approach to any situation• Only through aligning the mindset to the realities ofthe situation that the most situation-specific answersemerge• Effective solutions often lie beyond theboundaries of convention• It helps to persevere against odds if one lifts anEndeavor to the level of a Cause