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.

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