Sunday, September 15, 2019


How I should develop Strategy in my Organization? How I will be able to predict the future? How I do I connect internal and external customers?  How do I create disruption? These are the most difficult questions being faced by the CEO and MD of an organization. Identification of the pole star has become one of the critical aspects for the survival of this organization.

Data analytics are being used to identify the patterns for internal business growth. Well, the same data analytics can be used for creating Collaboration. I would rather term it as collaborative analytics. Yes, collaborative analytics helps an organization to solve the critical question raised within the minds of the top management. Collaborative analytics based on data analytics. Collaborative analytics can help to reduce cost and also improve efficiency in resource management within an organization. Data analytics are being deployed to create a solution. The same solution can be achieved through collaboration within every corner of an organization.

Collaboration is often and most commonly applied for selling of products or reaching out with the product to the people. Well, I am not discussing the same collaboration over here. Collaborative analytics can be deployed to redefine an organization. Product development done in isolation cannot help an organization to remain sustainable over the long term.  Collaborative analytics is connecting with social capital, creating a network internally and externally not for sale of products but for all.

Innovation can be created through collaboration. Collaborative analytics would help an organization to identify future trends. The same, when applied within an organization, increase the cross-department solutions. These cross department solutions improve the organization output from the internal perspective. Internal COLLOBORATION breaks silos within an organization. Collaboration helps to create innovative products and solutions.

Every organization has huge pool of talent but divided in terms of geography or divided in terms of P&L. Internal collaborative analytics helps to create synergy at a higher level.  This collaborative analytics leads to a huge pool of experience and solutions creating to exponential growth for the organization and makes the organization strong enough in terms of solution. This new redefined strength enables an organization to take up complex projects and drive solution.  Collaboration in innovation helps to come out of the fear of gaps of future.  General Electric took the collaboration analytics to bridge the gaps of internal part of the organization where they created collaborative talent pool to provide innovative solution to its process, products and consumer.

Collaborative networks leads to concept development which further leads to engagement and creating disruption for an industry.  The answerer to any disruption is through collaborative analytics. The biggest boon of collaboration is that it creates momentum of winning within an organization structure as well as the organization skills in every corner increases to new level.

When an organization does face the risk or threat of falling down? When an organization becomes silos it faces the nightmare of falling down and getting out of competition.  This is a hardcore fact which often is ignored. Collaborative analytics helps to stay abreast of future developments.
Collaborative analytics have a direct impact on the bottom line of an organization that too on a sustainable basis.

But what makes this collaborative analytics so powerful. Well, when we outsource a particular segment or work under JV we develop a connection with social capital. This social capital is of a mass weapon which helps an organization to scale into new heights.

General Motors developed collaborative analytics where is acquired many startups, hired resources and created product and solutions to business.   There are plenty of examples where collaborative analytics have helped organization to face tough situations.  Isolated approach kills the organizational growth.

Social capital based collaboration leads an organization to execution focused operational element to a network of connection that links the entrepreneurial part of product and service innovation. At the same time the organization internal and external collaborative efforts raise the scale of the organization.

Collaboration leads to economies scale and business growth. It’s no longer time to focus only on collaborate sales. The collaborative analytics is the only path to survive in the long term.

Friday, September 13, 2019

Your Business Strategy Solution are in the 17 Goals

What should be the strategy for my company? What should be my product? Which segment of the consumer to focus?  Where should invest to grow my business? How I can grow mine exponentially? These questions are common but seem to be powerful enough to keep the management awake at night.  Fragile economic growth has changed the dynamics of doing business. Instability within the global economy is another factor which asks companies to reinvent and redefine its every corner to grow with the changing economic circumstances.

What does sustainable business model mean? It means uplifting the society into a productive society which feeds the process of growth over generations. Every day functioning at every level of an organisation makes things sustainable. It is not a one day or a time-bound activity. The sustainable organisation includes the place from where a company source raw material, to labour, to the person to whom the finished goods are sold. All these come under the sustainable business organisation.

United Nation came up with a list in 2016 of 17 Goals which are known as Sustainable Development Goals. These goals are one of the paths shown to the global corporates and economic to design, develop, invest and grow. It has been found that these goals have the potential of creating $12trllion of exponential revenue growth. Sustainable business growth leads to economic value creation.

The 17 sustainable development goals (SDGs) to transform our world:
GOAL 1: No Poverty
GOAL 2: Zero Hunger
GOAL 3: Good Health and Well-being
GOAL 4: Quality Education
GOAL 5: Gender Equality
GOAL 6: Clean Water and Sanitation
GOAL 7: Affordable and Clean Energy
GOAL 8: Decent Work and Economic Growth
GOAL 9: Industry, Innovation and Infrastructure
GOAL 10: Reduced Inequality
GOAL 11: Sustainable Cities and Communities
GOAL 12: Responsible Consumption and Production
GOAL 13: Climate Action
GOAL 14: Life Below Water
GOAL 15: Life on Land
GOAL 16: Peace and Justice Strong Institutions
GOAL 17: Partnerships to achieve the Goal

The above goals are sufficient  enough to create new industries, drop-down traditional practices, change in manpower and their abilities and the most important thing redefine the whole organisation.
The SDG is also being focussed by the government and hence one needs to keep a close eye on the government policies which are framed towards these goals. The country which adopts these goals within its government policies that economy and those companies who realign their strategies are poised to grow exponentially.

Upcoming all-new business strategies will depend on social business and growth. Exponentially growth will be achieved by that product or service which is linked with the social segment.

Now after the product has been identified it is the people who play a critical role in designing and adapting the redefined company. But on which people or what type of people an organisation needs to achieve this redefined growth. Well those people who have CSR aspect mindset is the best army of people who can really adapt and take forward the redefined organisational growth.

All the Vision and Mission statement of the companies will be redefined where social development based and impact creating objectives will be adopted. I this journey of redefining many people will leave and many new people will come but the ones who have CSR aspect mindset can create a change and impact the growth of an organisation.

The one who understands the shortcomings of the current period, process, strategy are the ideal person for building the team. These are the people who identify the gaps between organisations and as they are linked with CSR activities or mind-set are the key people to be part of the turnaround. Remember one thing very clearly that redefine of an organisation cannot happen without the same set of the mindset of people.

Sustainable business impacts customer, communities, process and society. For example, the Indian government is taking many steps like clean water, save water, smart cities, gender equality, bridging gap of income inequality etc. All these are nothing but opportunities of redefining the companies and industries. The ban on use of plastic is an indication for the manufacturer to look for recycles product to be manufactured. If water saving is promoted then industrial manufacturing needs to re-design the products which saves water or uses minimum water.

In Indian Financial market SEBI has come with the RIA model and scrapping the Regular model. This change is designed to bridge the income inequality gaps. RIA helps to promote savings and investments with proper advice. Distribution industry rule has been changed and hence the plan for redefining of the organisation is already laid off. Income inequality gap can be reduced when the RIA model grows and reaches to the poorest person and advise them to invest.

Cashless mode of business has growing stupendously.  The prime objective is that Parallel economic growth needs to be closed. Sweden is the country which has taken a total cashless objective. If you visit Sweden, be sure to take your credit card or mobile phone with you. Only 15% of payments involve cash transactions, and it’s rare that a person will be limited to paying with cash. A popular mobile payment app, Swish, used by half of the country’s 10 million population enables payment transfers to people and businesses.

For example, Grameen Bank achieved viability through several operating innovations, such as using peer groups to manage the loan process. Group members had to approve of each other and could not take additional loans unless all members had repaid. Group lending reduced the need for credit assessment (since the groups did the screening); for collections departments (the groups encouraged its members to pay); and, for loan loss reserves (since peer pressure and repayment of group members’ loans assured low losses). These attributes changed the cost structure of lending and made microcredit economically viable.

Aravind Eye Care System3 created a self-sustaining business model that allows it to serve the poorest people in need for eye care, for free. Key operating model innovations include a highly efficient production process (performing high-quality cataract surgeries much faster than traditional models); its own manufacturing facility for producing intraocular lenses at a much lower cost; and, a dual hospital set-up (a somewhat higher quality facility for paying patients and a lower cost facility for the poor). These operating decisions allow for a pricing structure in which revenues from the full paying patients create profits which subsidize those who cannot pay.

 The birth of payment banks came up from these government policies of cashless economy. Sustainable business growth comes when people within an organisation have the mind-set to bring and adapt changes.  

In simple terms, all your questions are answered by the goals mentioned by the UN. When you connect your product or services with the goals you redefine your company. But it’s the product and the people who had the mindset to take forward the re-definition of the organisation into a new level. Grameen Bank could not succeed if people were having traditional mind-set of operating Bank, same with Aravind Eye Care System3 or with the payments banks.

Sustainable business growth aligned with population and mass usage is the key to growth of an redefined organisation. All your business strategy questions are within the society which one needs to identify and work upon.

Tuesday, September 3, 2019


The whole economy is focusing on credit growth and many well-renowned rating agencies,  consultants, advisors and few  MNC have painted this picture that credit growth will not happen through consolidation of the banking industry. Well everything is not linked with easy money flows into the pocket of the corporate. It is about building the economy into a lean structure, cutting out the extra fat.

Today we have to comply with Basel III and after few years Basel 4, Basel 5 etc will pop up in the next decade and the government has to keep injecting liquidity into the system. What nightmare it will be to keep the norms intact for so many Banks in India. My 2nd point is that despite having so many banks did the same reduce the gap of penetration of banks in rural India. Why did the NBFC business scaled up in the last decade where banks struggled with NPA created by political influenced banking people. Why every year the Indian government has to inject millions to billions into the Banking system. This money belongs to the taxpayer’s money. The same liquidity can be offered as tax incentive by reducing the tax slabs to the individual taxpayers. The same can be given as an enhancement under section 80C to the individual people.

The merger will release a lot of obligations for the future. The Indian economy does not need so any banks.  Future NPAs will come down, existing NPA will come down, the business will become easier for ARC and the biggest boon will be that the corporate Indian will not be able to take advantage of splitting up of loans and loan reconstruction by the corporate India. The post banking merger benefits cannot be measured overnight and the same cannot be derived in terms of valuations.  The Banking industry lacked in reaching to people. They even did not pass the benefits of the RBI rate cuts despite a repeated effort by the RBI.

PSU Banks got Rs 1.95 lakh crore capital infusion in 18 months. Every year the Govt have to inject the tax payer’s money into several banks just to keep them afloat. This same money can be utilized and invested in economic growth-related matters rather writing of loan created by manipulated bankers and credit risk analyst in a joint effort with corporate or under political influence. In future, this type of liquidity injection will not be required and the same inflow can be utilised in some other place.

In a recent report where an a joint study by Assocham-Crisil  states that Indian banks' gross non-performing assets (NPAs) stood at ₹9.4 lakh crore as on March 31, 2019. Much of this will come down and the government will be able to control the NPA issues.

Competition within banks will improvise and better control will come up. The new round of consolidation will bring down the number of public sector banks to 12 from 27 just a few years ago. These lenders will have no choice but to become more competitive because they’ll have to price consumer loans by linking them to the central bank’s policy rate. Banks are not for making a profit at the cost of Govt, but to bridge the gap for the consumers. This is a very strong and brave effort for the betterment of the economy.

The way NBFC have grown their business and their unsustainable business model raises lost of risk for the Indian economy in the long term.  The merger of Punjab National Bank, Oriental Bank of Commerce and United Bank with business worth ₹7.95 lakh crore to make India’s second-largest bank. The other merger will be between Canara Bank and Syndicate Bank, which will make the country's fourth-largest bank, with ₹15.2 lakh crore in business. 

Also, Union Bank of India will be merged with Andhra Bank and Corporation Bank to build India’s fifth-largest public sector bank with ₹14.59 lakh crore in business. Indian Bank will be merged with Allahabad Bank to make India’s seventh-largest PSB with a business of ₹8.08 lakh crore. These economies of scale of business will make a huge impact on the long term benefit of the economy. As I said earlier every benefit cannot be measured right now.

Banking audit system has collapsed long back and no point of discussing internal control and concurrent audit etc. the Rising NPA and mismanagement and fraud cases have broken the faith of the audit. Consolidation will at least reduce the nightmare of the collapse and management of the banking industry will improvise.

Well, Post Merger India might soon get tax cut for individual citizens. Well balance of revenue and expenditure is art and the current government knows it well. How we can expect cut down in tax when the same money is being injected into liquidity management for the banks.


Digital transformation has become essential for every organization. But the biggest problem is that we all are focusing on Digital Distribution but in terms of revenue, we are laggards. Companies spend millions on the product and of IT infrastructure to develop the distribution of the products. But the real truth is that Digital Transformation itself is the product for long term sustainable business model.  The Traditional strategic management theory of Product Life cycle is over. It is now the time for treating Digital Transformation as the product life cycle. Did we ever measure the life cycle costing of Digital Transformation?

Few Examples of Digital Transformation before moving ahead.
At Hasbro, digital transformation is child’s play. The toy and game company made big investments in its digital and data strategies that paid off in a big way. In late 2012, Hasbro realized that instead of focusing on children, it really should be marketing to their parents, who are the people who actually make the purchases.

Home Depot, once just a hardware store, The Home Depot today has a robust data and IT department to fuel its ongoing digital transformation. Home Depot has also improved its use of data to better understand customers.

Honeywell also made major changes in itself. Honeywell uses data to determine the best spinoffs and movements for its company.  Along with its own digital transformation, Honeywell uses data to help its customers. In 2016 Honeywell started its own internal digital transformation group. It introduced new technologies, including more IoT-connected and data-centric devices and offerings. As it reinvents industrial process control and offers more technology solutions for its customers, Honeywell also shows off its renewed focus on customer data and internal solutions.

Disney has acquired other companies to advance their digital transformation. Disney recently spent $52.4 billion to acquire the assets of 21st Century Fox to be able to connect directly with consumers rather than through distributors and advertisers. 

It is not the product consumed by the consumer but the Digital Transformation is the product which is consumed by people. Trivago, RedBus,Ola, Uber, Digital Banking any industry has Digital Transformation as the product. It is not the product mix which gives growth to an organization. It is the Digital Transformation which gives growth to an organization.

 The new strategic management speaks that Digital Transformation is the product and one has to measure the Life cycle Costing of the Digital Transformation. This means there is a shift from A traditional product-based life cycle costing to Digital Transformation based life cycle costing analysis.
In most cases it has been found that Digital transformation of an organization means copy paste the model from other companies.  The problem begins from here only. It is true that the Digital Transformation needs a basic level to match the industry where copy paste can be implemented but the same level cannot transform revenue growth.

 Innovation in the digital transformation which bridges the gaps and improves the society is going to the winner. Your product or digital transformation should make the consumer feel that it is part of building the future. It should not turn out that you are imposing the change on them forcefully. Once the consumer gets a feel of forced imposition then they will never accept the product.

The digital Transformation when reaches a maturity level then it is obvious that the organization or the industry revenues will come down as the product reaches the maturity level. Now if a company which does constant innovation and creates new segments of digital Transformation treating it as a product, then that organization creates new frontiers and new growth paths for the industry as well as for itself.

The digital transformation should add value to the existing market, create new market or give value to the consumer. Most of the companies spend million on how to reach to a consumer but they don’t measure the maturity of the Digital initiatives taken by the company.

In many instances it has been found that how tweaking in Digital Transformation a company has revived or has got a significant exponential jump in its growth.

ROA is nothing but the efficient utilization of the data using various analytics and integrating the same into the Digital Transformation platform. The life cycle of an organization also depends upon the from anticipating a need, to design, to manufacture and test, to install, use and maintain. This can only be done by measuring the life cycle of the Digital Transformation.

Companies are focusing on data analytics to explore new opportunities but are we focusing on integrating the same in Digital Transformation or focusing on product mix. Yes, this theory of product Mix has changed now. It is now the Digital Mix. The insights about the same will be shared in the next article.

Sunday, September 1, 2019


Indian economy has plummeted to 5% and that has become a matter of concern for the neoclassical economist. Well, every market player is an economist and every management consultant becomes an expert adviser in these times. Well, Indian economic growth of 5% was sufficient enough. The GDP number seems to be low since the same so-called management consultants and economist have made robust growth projection based on which they corporate took the decision making.

Now why I said that 5% GDP growth is enough since the period between April to June 2019 was an election month and all investments and consumption decision was under hold. Then how one can expect growth in this period. 2ndly when the investments and consumption were getting slower post the NBFC crisis then how one can expect to make decisions about spending. Unless a fully-fledged government comes into place corporate decision making always remains a slow strategy framework.

Hence all those economists and management consultants’ calculations were based on baseless factors. Growth revival of an economy cannot happen unless the people on the street have faith in the consumption and his monthly salary intake. One should be thankful for the Indian economy that a 5% growth was achievable when the Trade war has turned the table of Global growth into a recession phase.  

Now let’s comes to these people who made the prediction of GDP to 6% and 6.5%. Well, Post-recession of 2008 and technological advancement have simply made the neoclassical economic theories redundant. Same story rather worst situation is of all those management consultants who have not kept par with the evolving academic theories and still living in the traditional management theories.

Indian GDP will suffer more if the Indian corporate house don’t change their ears and mouth about the strategic cost management and resource utilization.  The myopic vision of management consultants and lack of understanding about technological advancement  followed with identification of change of pattern is the key supporter for the Indian corporate houses.

Corporate defaults or bankruptcy is happening? Why day by day business is becoming unsustainable? What makes the business fragile and weak? Why diversification of business verticals is not generating profits? Why I have sale a business which did not turn out to be cash cow after a few years. Where all these did go wrong? Well above all these did 2008 recession happens and business just collapsed. Well, advised by these traditional management consultants who could imagine or predict the changes. Identification of the revolution of changes and acting upon the same is critical survive.

The decline of Indian GDP is also linked to these above points. Did Indian corporate is making a sustainable business model with efficient identification of changes. 

Just as technological advancement has happened the same story is applicable for economics and management. Strategic cost management based on technology has changed dramatically. Traditional cost management strategies are redundant in the times of Exponential disruption based growth.

We are witnessing many corporate failures in India and more are about to come. What is the recipe which went wrong for these corporations in their decision-making process? Well, the management advisors went wrong in guiding the top management. Short cuts in business development followed with myopic thought process on profits and most importantly they lacked sustainable business model designs.

Sustainable business is the only way to save from any shortcomings. Every 10 years the global economy will face recession trends if business and strategy are based on short term myopic vision. Most of the senior management people don’t have a sustainable business model. ROI is the least focus whereas profit remains the main target. Why don't we discuss ROI and not profit? This is the place where we lack.

Cutting down cost and expanding business is one of the greatest recipes of the short term based business models and revenue models. Resource allocation has been left behind and cost-cutting is the oxygen we breathe. We love those management consultants who share insights or avenues of cutting down cost but what about resource utilization and optimization. Cutting down cost cannot expand the business. It is just a chapter of a book of cost management.

When we speak about sustainable business model we mean resource allocation, replacement and adoption of technology, aligning with long term industry dynamics and the identification of the patterns of change to take forward the sustainable business model.

Lack of decision making and not acting promptly will cost the Indian corporate in the long term.  Any Industry which does not make a change in its management consultants theories then there is no doubt they will suffer.

But what is wrong with these management consultants and neoclassical economist? They are simply lacking the education of the new management theories which are evolving either from college research labs or from the global failures. Yes, failures teach us where we went wrong. 2008 recession and still the slow growth is a big lesson. Sustainable business model within verticals will be key success mantra.

We have heard that many corporate sells no core business. Well, nothing is noncore if you have enough technical knowhow to run the show. It’s the management and the consultants who run the show and their lack of education kills the business.

Without expansion one cannot grow. Focusing on one business should have given birth to Jio mobile connection. It’s the management of the diversification which leads to success. One business might go down but others will save. It is just like product mix where you do business mix. Now this theory was not given in any book. Business mix efficiently carried out can create a sustainable business model.
Today the one business which you run may not be sustainable in the long term. Then, in
that case, you think what should be doing?

Well about the management consultants –if they were so smart they should have become billionaires.  We need those economist and management consultant who can predict the change and develop theories of management of a business. We don’t want traditional knowledge since they are not written POST recession of 2008.

Indian GDP will grow in the coming months based on the faith of the people of the street. Faith is very important to run an economy and business.

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