Technology and Innovation as motivators of Economic and Social Changes An evaluation of the Indian Model

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Technology and Innovation as motivators
ofEconomic and Social ChangesAn evaluation of
the Indian Model
Presented By Mr. Saurabh Mehta Managing
Director, Avani Cimcon Technologies Ltd.
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Faces of India

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Scenario

• India is slowly becoming one big wired village
• Society is becoming more aware, more demanding
  and making informed decisions.
• Technology is moving into every aspect of the
  social fabric
• Business, Governments and people are adapting and
  optimizing technology for growth
• The Paradox Big differences and a long way to go
  but things are moving in the right direction

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Co-Existence
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Modern City skylines
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Grass Roots technology penetration
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The Wired Indian
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Technology parks
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Electronic city Bangalore Largest Technology
Park in Asia employing more than 100,000 people
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There were no models that India could readily
borrow, because the economic development in the
context of its diversity and democratic set-up is
unique. It had to learn and develop its own
model . This meant creating and
multidisciplinary collaborations from the
conceptual level. Effective public-private,
private-private, public-public collaboration is a
major success factor for absorption of
technology Indians are innovative, flexible and
adaptable. Given a more or less free environment
they have been able to create an platform
conducive to growth and prosperity
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Historical Perspective

• India has strong science and mathematical
  tradition
• Arya Bhata to Information Technology
• Traditional and modern education systems
  encourage scientific temper
• Indian scientists and engineers have been
  academically very successful, quantitatively and
  qualitatively
• Average Indian family spends much of its
  resources on childrens education

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Current Technology and Industry scenario

• Maturing IT industry climbing the ladder of new
  technology
• Bio and chemical sectors thriving medical
  tourism, KPO businesses taking off
• Outsourcing taking off in all verticals, IT,
  Telecom, Automobile, Pharma RD
• Internationalization of Indian business
• Multitude of Govt. departments, institutes,
  universities engaged in a mind boggling variety
  of projects

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Catalysts in India's Technology revolution

• Government Initiatives
• Education

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Science and Technology Policy Benefits to all
Funds, human capital, knowledge resources
Deals with everything Policy, Strategy and
Implementation
Common man
Govt, institutes, Universities
Technologies , products and services
Benefits , goods, services, security
Business, craftsmen, NGOs, other local
infrastructure
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Political Speak

• Dr. Abdul Kalam (Past President and an eminent
  rocket scientist)
• In a world where the powers are determined by
  their share of knowledgeit is important for
  India to put her acts together to become a
  continuous innovator and creator of ST products
  
• Dr.Manmohan Singh (Prime Minister of India,
  eminent economist)
• science must grapple with key challenges
  ..increasing population, greater health risks,
  degraded natural resources and dwindling
  farmlands we need new science and technology,
  new paradigms to address fundamental challenges
• Mr.Kapil Sibal Minister for Science and
  Technology
• India is in a position to engage in the global
  knowledge economy rather than remaining on the
  margins

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The Vision and the Dream
India 2020-2050 Focus - Global leadership through
knowledge revolution
India 2010-2020 Focus Delivery to all
India 2006-2010 Focus Growth and build
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Short and medium term strategiesFocus-disseminati
on and delivery

• Acquire necessary Science and Technology in most
  efficient manner. Indigenous or otherwise.
• Make better use of the leapfrog technologies.
• International quality benchmarks and best
  practices in local market
• Provide qualitative and quantitative advantages
  to the Technology and Innovative companies
• Provide Tax breaks for RD expenses.
• Introduce technology entrepreneurship at school
  level

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Long term strategiesFocus-global leadership

• Separate RD, technology and delivery processes
• Decentralize Science and Technology
  infrastructure,
• Put industrial RD, in private hands,
• Provide incentives for setting knowledge base
  institutions for learning.
• Make sustainability a mandatory criteria
• International agreements for sharing leadership
  benefits.
• Validate every major international agreement for
  technology implications (e.g. WTO, Kyoto
  protocol, FTAs)

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Role of Education

• Huge pool of literate people, even with 40
  literacy India has 400 million people, Bigger
  then the population of most countries
• Just 10 educated workforce would make it 100
  million people available for work.
• Every year India adds more then half a million
  technology graduates
• Largest pool of English speaking educated people,
  legacy of a colonial past
• Growth of technology has allowed audio video
  education to penetrate to rural areas and this is
  going to incrementally increase educated
  manpower.

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Communications

• Wireless
• Internet
• Visual Media / Television

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Telecommunication and Wireless in India

• Wireless moving at a blistering pace Cell phones
  at 250 million
• Lowest cell tariff (voice calls) in the world,
  2 cents a minute
• SMS Very popular in India gt Used widely for
  business even more then email
• India overtakes U.S to become 2nd Largest
  Wireless Network in the world
• July 2008 has set an all time record with
  addition of 9.22 million wireless subscribers.
• Revolution has left no one untouched, from the
  farm to the cities

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Communications Digital Media

• Wide spread use of technology, unfettered media
• Involvement of the common man in issues of
  interest
• Increasing expectations and demands
• Bridging the divide in terms of exposure and
  understanding
• Awareness that there is a big different world out
  there
• Allows for more informed decisions
• Satellite channels has brought about a complete
  revolution

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Communications Internet

• Extremely cost effective Broadband provided at
  6 a month in urban areas and cheaper still in
  rural areas
• The number of broadband subscribers in India
  stands at 8 mn. growth is mainly coming from
  Wired DSL Broadband
• DOT has a target of 20mn for 2010
• This increase in subscriber numbers will see the
  momentum spread to other Web / Internet sectors.
• Literally every town in India is provided
  broadband coverage either wired or wireless 

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Outsourcing

• Inflow of monies into the country
• Inflow of existing technology
• RD outsourcing brings in knowledge
• Outsourcing leads to increase in Salaries of
  employees
• Manpower intensive outsourcing allows for
  distribution of income
• Increases the spending power, adds more jobs,
  grows other businesses
• Money, international exposure, knowledge,
  processes, technology etc.

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Technology in governance
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Gujarat State Wide Area Network (GSWAN)

• Establish a reliable horizontal and vertical
  communication corridor in the state
• Enable the state administration and the
  government to be more productive
• Enables electronic record keeping
• Allows for electronic transactions
• Achieve e-governance commitment
• Brings governance closer to the people
• Strengthens the disaster management capacity

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E-Mitra (Friend), A project by Rajasthan
Government

• E-Mitra - an integrated e-governance project that
  aims to provide all government information and
  services to rural and urban masses through
  e-enabled centers and kiosks
• Project being implemented on PPP model
• Aims
• Improving service delivery to all stakeholders
• Back end Computerization
• IT Infrastructure Creation
• Human Resource Development

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Internet Kiosks

• A village kiosk consists of

• Local Entrepreneur
• Equipment
• Computer
• Printer
• Battery backup
• Web-cam
• Speakers, Microphone
• Connectivity
• Antenna assembly

• Cost of setting up a village Kiosk - 1,000

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Services provided

• education
• Emails
• Information
• International VOIP calls
• Entertainment
• Connectivity to the village

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Low Cost Rural Banking
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Features of the Innovation

• Developed by the TecNet group of IIT-Madras
• Deployed in rural kiosks in collaboration with
  ICICI bank
• Deposits, withdrawal, and loans Cost 800/
• Conventional ATM costs 15,000/
• Uses extremely low cost finger print
  authentication system (1/)
• Use of plastic ID cards smart or otherwise not
  viable in rural areas

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Private initiative ITC E-Chaupal
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The Model in Action

• e-Choupal leverages Information Technology to
  virtually cluster all the value chain
  participants, delivering the same benefits as
  vertical integration does in mature agricultural
  economies like the USA.
• e-Choupal makes use of the physical
  transmission capabilities of current
  intermediaries aggregation, logistics,
  counter-party risk and bridge financing while
  disintermediating them from the chain of
  information flow and market signals
• With a judicious blend of click mortar
  capabilities, village internet kiosks managed by
  farmers themselves, enable the agricultural
  community access ready information in their local
  language on the weather market prices
• Allows for dissemination of knowledge on
  scientific farm practices risk management,
  facilitate the sale of farm inputs and sales

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• Real-time information and customized knowledge
  enhance the ability of decision making and their
  farm output with market demand
• Gives farmers access to high quality inputs from
  established and reputed manufacturers at fair
  prices.
• As a direct marketing channel, virtually linked
  to the mandi system for price discovery,
  e-Choupal eliminates wasteful intermediation
  and multiple handling. Thereby it significantly
  reduces transaction costs
• e-Choupal ensures world-class quality in
  delivering all these goods services through
  several product / service specific partnerships
  with the leaders in the respective fields, in
  addition to ITCs own expertise
• Farmers benefit through enhanced farm
  productivity and higher farm gate prices, ITC
  benefits from the lower net cost of procurement

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Technology and Innovation Examples

• Technology of E-ticket enabled Air Deccan to
  start its services Today we have fleet or low
  cost carriers. Big impact on the full fare
  carriers who had to lower their costsAllowed for
  E-Ticket reduces the costs and middleman
  commissions.
• Innovation and providing a One Rupee sachet for
  shampoo Changed industry way of doing
  businessVolumes have gone through the roofFocus
  was to get to the people who have very little
  money on hand
• Micro Finance which a mix of technology and
  innovation Brought about a major revolution in
  the social fabricEnabled millions of people to
  get a loan and start something of their ownLoans
  for poor starting from USD 100 to start home
  business like buying a goat, buy vegetables to
  sell them etc. Less than 5 delinquency and
  always profitable.

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More Cases

• Technology has enabled online booking of Indian
  RailwaysThe largest rail network in the
  worldCarries the maximum passengers in the
  worldFor most it is the only mode of long
  distance transportationBooking has moved to the
  internetFuelled growth of credit cards
• Technology has brought IT outsourcingLed to
  larger disposable incomesIncreased spending
  habits Increased movement o money through
  economyIncreased job opportunitiesInflow of
  foreign money into the countryPercolation of
  monies into the economy

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Urban/Rural Growth

• Growth of Urban centers like Bangalore, Mumbai,
  Pune, Hyderabad
• Inflow of residents in all al walks of life not
  only technology
• India a family oriented system, Urban money has
  started percolating into rural economy
• Growth of secondary cities taking place as first
  tier cities become too expensive and crowded
• Stated themselves become competitive in
  attracting business
• As technology becomes available in rural areas
  low tech business moves rural, ultimately
  benefits percolate to all

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Conclusion

• There is a lot happening but there is a lot to be
  done
• India is in the phase of high growth but control
  mechanisms are still evolving
• Social and Economic benefits are being seen in
  all strata of society
• We are a very large country and have a very large
  population
• We still have a long way to go for all our people
  to benefit
• We are moving exponentially and there is no
  turning back

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• Thank You