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  1. 1. 12 International Indexed & Refereed Research Journal, ISSN 0974-2832, (Print), E- ISSN- 2320-5474, Aug-Oct, 2013 ( Combind ) VOL –V * ISSUE – 55-57 Introduction The complexity, uncertainty, and turbulence of the present dayglobal environment ofindustryhave led to a frantic search for new ways of coping with the chal- lenges of change and competition. It has been esti- mated that as much as 20% to 40% of the working capital of Indian companies is unproductively locked up inthe inventorycarried bythem.Furtherassociated costs are generated in the form of warehousing, mate- rials handling, logistics and deterioration of stock overtime. These factors have pushed up cost of pro- duction. Costs ofoverstaffing, delays and lowproduc- tivity,escalatecostfurther.Consequently,Indianfirms are easily priced out of the market by their foreign competitors.Therefore,searchforContinuingandlast- ing source of organisational rejuvenation requires a new,radicaland completerethinkingofthefundamen- tals of business. ChangesinworldIndustry: • Shorter product life cycler • Shorter product change over cycle • Higher rate of new product development • Rapid development and use of IT • Competitive strategy based on technology and train ing of employees in multiple work skills, participa tion, and responsibility. • Increasing use of automated decision aids like, de cision support systems,(DSS) expert system (ES), and simulation experiments • Development of hybrid technologies. Reinvention, involves focus towards devel- oping new horizons of opportunity, conceptualising new road maps for the future, and visualising and pro- viding the value that is whole purpose of the business. Reconceptualising the nature and purpose, thrust and direction of firm's business strategy. Reinvention of the enterprise is directed toward rede- fining its relationship with its environment, and reconfiguring its structure and relationships accord- ingly. It is both externally and internally oriented in synchronous manner. Its unit of analysis is the com- pany as whole. It involves review of basic question: • What the products/service are about? Research Paper -Commerce Aug- Oct , 2013 Global Competitiveness and Reinventing anEnterprise * Dr. Dilip B Bhanagade * DepartmentofCommerce,DnyanasadhnaCollege, Thane. • What is the nature of products as modes of deliv ering service? • What are unique customer values that may be cre ated/invented/or delivered reconfiguring? • In what new ways can the firm integrate with the outside world -customers, suppliers, and firms in and across industries? Reinventing Strategies: Viewpoints of the majorthinkersarebrieflyoutlinedthereinventingstrat- egies. Rethink the Nature and Purpose of Products: According to Ohmae, strategy is about creating value for customers, products are modes of delivering it. It demands rethinking of company's products/services. Matching competitors move by move through cost cutting, automation, price reduction, downsizing and so on, is not strategy. Strategy implies resisting the easyanswerin search forbetter creative waysto create and deliver superior value to customer. Develop Core Competence and Create New Competitive Space: The firms should concentrate on developing world- class distinctive core competen- cies, which should form the basis of its core products, and leveraged across product and markets. The com- panies should focus on new competitive space for escaping from being locked up in tyranny of served market.Withoutthecapacityto generatenewcompeti- tive space, they have to remain trapped in conven- tionalandshrinkingproductmarket.Itrequiresconfig- uring the matrics of customer needs and product functionalities to innovate new product concept. DevelopBest-In-theWorldCorecapabilities: Core capabilities include, core (technologi- cal) competencies, but also extend to areas of market- ing, logistics, distribution, databases, and so on. It implieshighlevelofserviceskillwhichisperceived as unique by customers. The companies should focus on developing 'best- in-the-world' knowledge intensive core capabilities and outsource their other require- ments. They should fill their other gaps through stra- tegic alliances with other high performance firms. ReinventValuethroughKnowledgeandRelationships: The strategy is about reinventing value. It is not just limited to adding value to products/customers. The keytask isto reconfigure rolesand relationshipamong
  2. 2. 13SHODH, SAMIKSHA AUR MULYANKAN International Indexed & Refereed Research Journal, ISSN 0974-2832, (Print), E- ISSN- 2320-5474, Aug-Oct, 2013 ( Combind ) VOL –V * ISSUE – 55-57 suppliers, business partners, customers-in order to mobilise creation of value in new form and by new players. The focus of strategic analysis is no longer a company or even the industry, but the value creating- system itself within which economic sectors like sup- pliers,business partners/allies, customers, work to co- produce value. The strategy is reinventing value through the continuous design and redesign of the value-creating complex business system. Change Context and Become a Different Company: Reinventing is not changing what is, but creating what is not there. Reinventing involves becoming a differ- ent company, by breaking with the past and outmoded present, and creating a new context for working and competing.To reinvent a companyis to decide that the only way to compete in long term perspective, is to be a totally different company. Transforming Organizations into Learning Laboratories: Thisstrategyhold thatwithoutlearning, there cannot be any organisational improvement and vice versa. Organisation learning involves efforts to- ward mapping, challenging, and improving the mental maps that people use to see, understand, and act on the dynamiccomplexityallaround them.Therateatwhich the organisation learns may be the only source of sus- tainable strategic advantage. The concept of corpo- rateas'laboratoryforlearning'isbasicallyrelatedtothe factthatknowledgeconstitutesthemostbasicresource today.Globallycompetitivefirmsarethosewhichhave the insight and foresight to mobilise and allocate to new productive uses. Are those The successful com- panies are those that consistently create new knowl- edge, disseminate it widely throughout the organisation, and quickly embody it in new technolo- gies and products. These activities define knowledge- creating company, whose sole business is continuous innovation. The firms will be differentiated by their ability to leverage knowledge and intellect in creating greater value than by exclusive focus on exploiting physical assets and skills. Co-innovatewithCustomers: Decidingtoinnovatewhat,whyandforwhom, are difficult critical issues. Lack of innovation means stagnation,decay,and declineofacompany. Co-inno- vatingwithcustomerstowardsdevelopingfuturetech- nology products and work systems, provide a highly viable option . This indeed forms the strategic focus of Xerox company it worked with its customers on tech- nology and system that do not yet exist and on needs that are not yet clearly defined. The company tries to prototype a need or use before prototyping a system. Cope with Change through Stable relationship: This strategy is value addition based on relational architec- ture and stability. Outstanding businesses derive their strength from a distinctive structure of relationships with their employees, customers and suppliers. With- out an active support and harmonious relationships, the goals and vision, the plans and programmes of the company cannot be effectively be translated into real- ity. Continuity and stability in these relationships is essential for a flexible and cooperative response to change. DevelopandAlignTechnologicalandOrganisational Capabilities: The capabilities may be of two types viz; organisational and technological. The organisational capabilityconsistsofstructuralflexibilityandcreative human resources. The technological capabilities con- sist of technology absorption, innovation, and world- class manufacturing i.e. TQM, JIT, CAM. Both these capabilities need to be developed, and aligned, in dy- namically adaptive manner toward meeting following requirements. • To asses business environment for anticipating and responding to evolving needs of customers, and es- tablishing backward and forward synergies with vendors,customersandotherfirms(strategicalliance). • Competingintime • To utilise commercial potential of newtechnology withminimumlag. • Toproduceproduct/servicesthoseunfailinglymeet customer'sexpectationintermsofquality,costand performance. • To utilise the creativity and knowledge of organisationalmembersasvaluedresourcetowards generating new ideas, concepts, methods for cre ating new source of value. Methodology for Reinventing: The three apparently different methods but with dominant emphasis on human creativity are: • Concept Research • Thought Experiments • Envisionments and Imagineering Exercises Concept research is oriented towards generation, visualisation,andexplorationofpreviouslyunthought- of conceptual possibilities, alternatives, and opportunities. Thought experiments and Envisionments ,throughboththemethod it maymovefrompossibleto practical, potential to actual, benefits to constraints, and development to testing. It concentrates on value systems of the customers, suppliers, and firms value chain, and on employees. The thrust and direction is towardspooling,developing, and reallocatingcompe- tencies, activities, and roles of firm's relationship to-
  3. 3. 14 International Indexed & Refereed Research Journal, ISSN 0974-2832, (Print), E- ISSN- 2320-5474, Aug-Oct, 2013 ( Combind ) VOL –V * ISSUE – 55-57 wards truly innovative value-creating system. RoutetoReinvention: There is no unique pathway or procedure for reinventingan enterprise.However, theconditions are identical like change management. The steps in rein- venting are: Assemble a critical Mass of Key Stakehold- ers: This requires bringing together group of people whose knowledge, skills, and reputation would be of critical importance towards implementation of rede- signandchange.Italsocallsforrealignmentoftheflow of communication across traditional department/sec- tional boundaries DoanOrganisationaudit: A company cannot move from its present state to desired future state without first knowing what the present state is. For this purpose, it needs to iden- tifyandcriticallyexamine: • Whatassumptionsarewemakingaboutourstrategic position that may no longer be valid? • Whichfunctionalunitsaremostinfluential,and will theybe asimportant in thefuture as theywere in the past? • What are the key systems that drive the business? • What are the core competencies or skills of the enterprise? • What are the shared values? • What is/are the system for tracking information? CreateUrgency,DiscusstheUndiscussable: The Company must confront its most life threatening problem situations in order summon the courage to break with past and embrace a new future Harness Contentions: The control of contention kills invention,learning,and commitment.Thecontentions should be used to jump start the creative process. Engineer Organisational breakdown: There will be many breakdowns along the way to reinvention: sys- tem that threaten to fall apart, deadlines that cannot be met etc. These breakdowns make it possible for organisationsandindividualsto takehard lookatthem, and confront the work of reinvention. When an organisation set out to reinvent, breakdowns should happen by design rather by accident. The purpose of breakdowns is to provide opportunities to enable both theorganisationanditsexecutivesto operatefromnew context. Conclusion: Reinventing, fast-cycle capacity, and mass communication,are latestdevelopment inthe seriesof emergingrecentstrategicinnovations vizTQM,FMS, team base management and so on. They are cause and consequencesofintensifyingglobalcompetitiondriven bytechnology.Theyaremeans,notanend. Rethinking the fundamentals of business strategy, highlighting the need and requirement of organisational reinven- tion,reflect thesearchforreconceptualisation ofgoals and ends. Formulations concerning the nature and significance of reinventing enterprises are thus a vital part of the continuing efforts of an enterprise to cope withthecomplexity,turbulence,uncertainty,and com- petitive intensity of their business environments. Ef- forts of an enterprise to reinvent itself represent its search for a new identity in a highly dynamic milieu. 1. Rastogi,P . , Management of Technology and Innovation, Sage Publications, New Delhi 2. Rastogi,P. , Determinants of Competitiveness in a global Marketplace, Allied Publishers New Delhi 3. Waterman S, R, The Renewal Factors, Bantam Books, New York 4. Hamel, G. and Prahalad, C., Competing for the Future Harward Business School Press , Boston. 5. Hammer, M. and Champy J. Reengineering the Corporation Harper Business, New York R E F E R E N C E