Impact of technology and globalization An Indian perspective

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Impact of technology and globalization - An
Indian perspective

• Second City of London Biennial Meeting
• December 12, 2001

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Transformation in the world economy driven by

• Globalization
• Deregulation and integration of global markets
• Gradual convergence of broad economic policies
  across countries
• Global capital, knowledge, talent technology
  flows
• Rapid advances in technology
• Death of distance, time and location
• Significant increase in volume and speed of
  transactions
• Reduction in entry barriers
• Proliferation of technology-based distribution
  channels

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Transformation in the world economy driven by
(contd.)

• Access to knowledge
• Leveraging knowledge as a key resource
• Knowledge is an asset which does not deplete
• As the number of people who access a pool of
  knowledge increases, the pool expands

The above forces are mutually reinforcing and are
leading to unprecedented competition, changing
the basic requirements for succeeding in the new
economic order
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A nations success in the new economic order
depends on the presence of a diversified and
globally competitive industrial base with a focus
on quality and efficiency. Certain key building
blocks are required to achieve this.
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The nations building blocks need to be
supplemented by effective corporate strategy for
managing contemporary organizations...
Building blocks - Nations
Succeeding in the new economy

• Quality infrastructure
• Efficient movement of material by road, rail,
  ports etc.

Economies with these building blocks provide the
right foundations for contemporary organizations
to align their strategy with the new economic
order
Availability application of technology
Large pool of quality human resources
Global mindset

• Environment facilitating investment inflow
• Efficient financial system

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Strategy for managing contemporary organizations

• In the past
• Long term planning
• Fishbowl management
• Long lasting competitive advantage
• Going forward
• Short term planning cycles
• Proactive environment shaping in shrinking time
  frames
• Agility and ability to handle continuous chaos,
  and evolving competitive advantages

The need for this change in strategy has revealed
certain existing structural issues
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Structural issues

• Global players are overburdened by
• Obsolete technology
• Organizational overhang
• Legacy systems
• Low levels of computerization
• Manpower
• Excessive
• Possessing outdated skill sets
• Fight for talent

To overcome these structural issues, corporates
need to develop certain strategic responses based
on key building blocks
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Building blocks - Companies
Succeeding in the new economy
Culture/ organizational structure
The right combination of these building blocks
will allow corporates to respond effectively to
the requirements of the new global economic
environment
Organizational values
Human capital
Knowledge capital
Brand identity
Speed capital
Quality efficiency
Technology capital
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Impact of global economic environment on the
Indian economy
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Indian economy - Past present
The phased deregulation of the Indian economy has
been accomplished due to certain key strengths
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Indian economy - Key strengths

• Presence of a broad and large industrial base
• Reforms have reduced investment bottlenecks
• Encouraging FDIs
• Large pool of talented people leveraging domestic
  opportunities
• Quality educational institutions (IITs / IIMs)
• Global mindset
• Global success of Indian IT sector
• Large domestic market with huge untapped
  potential
• 4th largest economy (purchasing power parity
  terms)

These strengths have made India competitive with
respect to its peers
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With knowledge, technology, scale and global
mindset as the key resources in the new world
economy, India is well positioned to be a key
player in the global arena
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Thank You