Pratibimb december 2013 by Pratibimb TAPMI

December 2013

A Students’ Initiative

T. A. Pai Management Institute Manipal, Karnataka

About TAPMI T. A. Pai Management Institute (TAPMI) is a premier management institute situated in Manipal and is well known for its academic rigor & faculty-student interaction. The Institute has been recently ranked amongst top 1 per cent of B-schools in India & 4th in the South Zone by The Week Magazine. Founded by the visionary, Late Shri. T. A. Pai, TAPMI’s mission is to provide much needed impetus to the task of building professional management capability in the country. In the process, it has also played a role in strengthening the existing educational and health infrastructure of Manipal.

Our Mission “To excel in post-graduate management education, research and practice”. Means: 

By nurturing and developing global wealth creators and leaders.

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By continually benchmarking ourselves against best in class institutions.

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By fostering continuous learning and reflection, achievement orientation, creative interdependence and respect for diversity.

Value Bounds: 

Holistic concern for ethics, environment and society.

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Directorâ&#x20AC;&#x2122;s Message

It is with great joy that I congratulate the Pratibimb team on the release of yet another issue. The world of business is changing; it is getting more diverse and challenging by the second. In such an environment, it is important, more than ever that the business leaders of tomorrow be equipped; not just with the right knowledge and skill, but also with the right attitude. TAPMI attempts to inculcate this attitude in its students through activities that complement the coursework. The institute in recent times finds itself at the helm of many activities and events, both research and practice based. The Pratibimb team has been doing a commendable job in bringing in ideas and insights from its counterparts in other leading institutions, to the TAPMI community, while also sharing the same with the rest of the world. I wish them the very best with their forthcoming editions.

Dr R C Natarajan Director, TAPMI

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PRATIBIMB TAPMI’S MONTHLY e-MAGAZINE

DECEMBER, 2013

TAPMI’s e-Magazine - is the conglomeration of the various specializations in MBA (Marketing, Finance, HR, Systems and Operations). It is primarily intended to provide insights into the plethora of knowledge that relate to the various departments of Management and to give an opportunity to the students of TAPMI and the best brains across country to exhibit their creative cells. The magazine also strives to bring expert inputs from industries, thereby bringing the academia and industry together. Pratibimb the e-Magazine of TAPMI had its first issue in December 2010. The issue comprised of an interview of well known writer Ms. Rashmi Bansal along with a series of articles by students and industry experts like MadhuSudan Rao (AVP-Delivery, Mahindra Satyam) & Ed Cohen who is a global leader and chief learning officer who led Booz Allen Hamilton & Satyam Computer Services to the first rank globally for learning & development . It also included a hugely successful and engrossing game for finance geeks called “Beat the Market” to bring out the application based knowledge of students by providing them the platform where they were expected to predict the stock prices of two selected stocks on a future date. The magazine is primarily intended for the development of all around management knowledge by providing unbiased critical insights into the modern developments. TAPMI believes that learning is a continuous process and is not limited to the four walls of the classroom. This viewpoint is further enhanced through Pratibimb wherein students manage and contribute to create a refreshing learning environment outside the classrooms which eventually leads to a holistic development process. The magazine provides a competitive platform and opportunity to the students where they can compete with the best brains in the B-Schools of the country. The magazine also provides a platform for prominent industry stalwarts to communicate their views and learning about and from the recent developments from their respective fields of business which in turn helps to create a collaborative learning base for its readers. Pratibimb is committed in continuing this initiative by bringing in continuous improvement in the magazine by including quality articles related to various management issues and eventually creating a more engaging relationship with its readers by providing them a platform to showcase their talent. We invite all the best brains across country to be part of this initiative and help us take this to the next level. Pratibimb | December 2013 | 4

From the Editor’s Desk Editor in Chief Arun Stephen

Dear Readers Greetings from Pratibimb!

Marketing & Advertising Abhineet Rastogi Bhavnita Nareshkumar

Pratibimb’s dearest wish in this issue is to bring the same newness into your perspective, and with this goal in mind we present to you the following refreshing set of articles.

Creative & Cover Design

First, in the HR department, we have ‘Integration of CSR and Big Data in Supply chain’ by Tridoshanjay Jain from IIM Kozhikode, which works at finding common ground between the two. We have ‘The Impact of Emerging Technologies on Employee Relations’ by Mr. Karan Shorey and Mr. Aditya Nair from XIMB. This article looks at the impact on the core objectives of employee relations such as job opportunities/manpower requirements, emerging skill gap, higher pay packages, changing expectations of the workforce etc. Further, Mr. Rahul and Ms.PratimaGoswami from National Institute of Agricultural Marketing have expressed their views in the article ‘Transforming HR for new business priorities’, where they explore the HR field from a variety of perspectives, finally culminating into the lessons we may learn from their exploration.

Kannan Venkat Shubha Prabhu

Next, we have some bright insights into Marketing, through articles such as ‘Koutons- The story of an outlandish Marketing Strategy that went wrong’ by Mr.Navajith U M from DoMS IIT Roorkee, which explores specific Marketing stories in a beautiful yet substantive way, and ‘IKEA’s market entry into India’ byMr.AbhishekKundu from IIM Bangalore,who analyses every aspect of the situation flawlessly, as you shall read and find out for yourself. Ms.MrinalJha from Great Lakes Institute of Management talks about the Healthcare Industry regarding mHealth in her article ‘mHealth and its role in Healthcare Services’. These innovative views and perspectives will help you gain fresh new ideas in this fresh new year, and Pratibimb leaves you with the same words as always :

“Keep reading, keep reflecting”

Editor Arun Stephen

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Avni Mooljee Communications

Operations Aditya Bhat Publishing Lloyd George Sub Editors Akash Gupta Amruth C Avni Mooljee Ayon Kumar Debayan Bhattacharya Gayathri Mohan Pallavi Prasad Priyam Goyal Faculty Advisors

Prof. Chowdari Prasad Dean (PR) & Chairman-Admissions

Prof. Aparna Bhat

Contents Integration of CSR and Big Data in Supply chain

Tridoshanjay Jain

IKEAâ&#x20AC;&#x2122;s Market Entry into India

by Abhishek Kundu, IIM Bangalore

The Impact of Emerging Technologies on Employee Relation

Karan Shorey, Aditya Nair, Xavier Institute of Management, Bhubaneswar

Kuotons - The Story of an Outlandish Marketing Strategy That Went Wrong

Navajith U M, DoMS IIT Roorkee

mHealth and Its Role in Healthcare Industry

Mrinal Jha, Great Lakes Institute of Management, Chennai

Transforming HR for New Business Priorities Pratima Gowsami, Rahul, National Institute of Agricultural Marketing

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Integration of CSR and Big Data in Supply Chain Tridoshanjay Jain

With globalization and availability of information and forces like social media have entirely changed the rules of the game and hence it becomes essential for companies to adapt themselves to this new environment. The need of the current situation is very much different from the past. Consumer is more demanding; with increasing competition there is more pressure to bring the cost down than ever and therefore how to sustain and do business in this scenario and where to improve is the big question. Supply chain, being the backbone of any business activity also has evolved over the period of time. New practices are emerging and with the shift of focus on emerging economies, various practices are also shifting. One of such practice is the inclusion of Corporate Social Responsibility in Supply Chain Management. Issues related to CSR shift with the trends in SCM. As more and more companies are moving their operations in emerging economies because of the cost factor managing supply chain has become a more tedious job. These economies suffer from lack of infrastructure and technology and poor labour practices such as child labour, low wages etc. are prevalent. Therefore for MNCs lifting suppliers’ and other stakeholders’ policies to the same standards has become more challenging than ever. And this again has created a challenge of keeping the cost of operations low- the very reason of MNCs shifting their operation in these economies. So where to draw the line, how to optimize and imbibe corporate social responsibility in the supply chain is an important issue for companies to address. In addition to their own operations companies are also held accountable for their suppliers’ actions and their alignment towards environmental and labour standards. The existing literature in this domain had suggested factors such as – environment, procurement, labour practices and affirmative purchasing acting. Times to time many well known brands are being criticized for their ignorance towards such critical issues. In early 80’s companies like Taco Bell and Campbell soup were criticized by NGOs and labours for improving wages among produce farmers. (Prewitt 2002a, b, Terry 1983) The case of NIKE in the late 1990s is an example of ignoring this aspect of suppliers. NIKE’s ignorance towards child labour and exploitative practices in its suppliers' operations earned a lot of unwanted attention for the brand. The public backlash and their increasing interest in such issues in apparel industry also led to consumers’ willingness to pay higher price to support improvement on this front. It is imperative for a company to configure its supply chain accordingly- as soon as possible. NIKE is still struggling with its suppliers’ issues. Hiding or not disclosing the list of suppliers is no more an option. Even Apple had to disclose its ‘secret’ suppliers’ list after facing accusations of ‘lack of transparency’ by a Chinese coalition of NGOs. But it is not that easy for any company to integrate corporate social programs with existing supply chain. Every domain requires specific skill and competencies which cannot be gained or learnt in a short span of time.

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Also if a firm has involved itself with any social cause related program then there is only one way to do it- doing it RIGHT at the first time itself? Such initiatives are beneficial for companies in the long run, but these benefits come at a huge downside risk. What if something goes wrong? What if the community perceives it in a wrong way? What if the stakeholders backfire? Therefore some companies prefer to work with organizations with the relevant skillets. Companies can tie up with organizations possessing relevant expertise and similar values. For example a world known company in household furniture market, IKEA partnered with UNICEF and “Save the children” to tackle the problem of child labour issues. It has also partnered with WWF to promote sustainable forest management. IKEA has expertise in its own domain and that too an extent that it has revolutionised the industry. But it did not possess the required competencies to tackle the issue of child labour. Hence it’s a win - win situation for IKEA, UNISEF & for the community.

There is so much of data around and all of it has so much of economic value added to it that an entire industry can be created around it. In existing data supply chain contains data exist in such a form that it raises issues of privacy and multiplicity if shared freely. The existing data supply chain is not capable enough to leverage the opportunities over social media to increase the parameters like customer engagement and content quality.

Companies also look for taking care of the community in the region they are operating. No business can sustain itself in silos. So here strategy is to focus on developing the local community by involving them. Norwegian oil and gas giant Statoil Hydro follows this strategy. This firm sources materials from local communities. To achieve sustainable development at the ground level Statoil Hydro is trying to provide opportunities to the local people. The firm also invests in developing competitive local enterprises.

Such technologies are not only improving the major supply chain issues but also helping companies to serve customer in a better manner by improving their delivery management, supply capacity planning, transportation optimization etc. Let’s look into an example of automobile industry.

Visibility

According to a report on by Supply Chain Insight, second major issue after the demand and supply volatility is the lack of ability to use the data in supply chain. For a supply chain to function efficiently, visibility and velocity should be high. Visibility here refers to the availability of information at each point. However, the data available is increasing tremendously in volume and complexity which brings in the utility of Big Data analysis techniques to boost the supply chain’s performance.

General Motors is the largest vehicle manufacturing firm worldwide. Supplier-sourced parts comprise approximately two-thirds of GM’s automotive costs.

Velocity

Variability

As Customer demands more comfort, GM is putting a lot of sensors and gadgets in the vehicle. On one hand all these sensors and gadgets are provide multiple functionalities to the customer and on the other hand GM is also getting a huge amount of real time data. This data comprises of customers’ driving habits, behaviours, vehicles performance, Engines’ functioning etc. GM uses this data not only in designing new products but also in forecasting demand across regions. This also helps GM in Product Call back whenever Integrating Big Data in Supply Chain Management: required. One of the emerging trends in supply chain management is to leverage the technologies such as Big Data. In the mod- Initially General Motors has outsourced data warehousing to ern era the consumers hold much power over the market- HP but recently the launched its first data centre in Warren, Michigan. ers, we trade data for free goods and services. But there are still many roadblocks. For example in emerging economies like China, the regional stakeholders look towards CSR as an important activity for the export related business and they also accept the fact that it’s lagging in comparison to western economies. But until required by clients these local companies don’t bother about these CSR activities. So it is not a standard practice yet and contains huge potential in nearby future.

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It cost GM around $130 million, with a capacity of more than 20,000 square feet worth of commodity servers. GM has integrated IBM’s InfoSphere Big Insights platform with Teradata’s MPP-based 6700 Enterprise Data Warehouse to create an advanced, custom data warehouse which can handle huge chunk of data.

This helps Walmart identify the problem before the issuer realises they have a problem. This not only benefits the credit card companies, but also the retailer in a major way as the customer doesn’t have to walk away with making the purchase. World’s second-largest retailer (measured by profits), Tesco PLC also leverages on similar technologies. This British multinational grocery has stores in 14 countries across Asia, Europe and North America. The supermarket chain aims to save over €20m a year by using big data and sophisticated business intelligence technology to ensure its refrigerators operate at the right temperatures. This has helped firm in bringing down costs in the supply chain that involves storing of fresh grocery items at the optimum temperature.

GM is also involved heavily in developing various vehicle related APIs. These APIs fall mainly in two categories: Remote APIs and In-Vehicle APIs and hence help GM in collecting the real time data about customers’ driving, Vehicles’ performance etc. With all data in sync GM has also improved its Web site section enabling GM engineers and suppliers to gain immediate access to inventory reports, schedules and general information. Dealers can also log on to check the status of their received, outstanding or debited returns with the GM Warranty Parts Centre, 24 hours a day, Further, at a general level, there is a team of analysts at Tesco that is heavy on maths and analytics, and they use seven days a week. insights from big data to improve profits and reduce waste at the supermarket giant. Tesco uses ‘Teradata’ to warehouse This integration on Big Data to its supply chain has helped their supply and inventory data. GM in providing Responsible Connectivity, Informed Driving, Location Services and Telematics convenience to its custom- Therefore on one hand inclusion of corporate social responsibility in supply chain helps companies to build trust in the ers. supply chain and an environment of collaboration and hence Apart from automobile, retail industry is also thriving on Big creating a win-win platform for all the stakeholders, on the data. Analysing information from transactions in real time other hand Bog Data helping in improving the efficiency and has helped Walmart boost sales by discovering banking er- effectiveness of overall supply chain. It’s a valuable asset rors. When the credit cards used during purchase were from a Customer Experience Management (CEM) and Voice getting an error code on each transaction, it was identified of the Customer (VoC) point of view. But both of these practhat there could be something wrong with the issuing au- tices have one thing in common- improving overall customer thoriser's switcher. satisfaction. Who knows this might be just a tip of an iceberg. Figure: Ability to use data- as an important issue for SCM managers

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References

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Erica Gies (2012). Is This Apple's Nike Moment? Retrieved from: http://www.forbes.com/sites/ericagies/2012/01/20/is-thisapples-nike-moment/ Corporate Responsibility in Scandinavian Supply Chains, Author(s): Robert Strand; Source: Journal of Business Ethics, Vol. 85, Supplement 1: 14th Annual Vincentian International Conference on Justice for the Poor: A Global Business Ethics (2009), pp. 179-185 Accessed on 02/10/2013 Retrieved from company website: http://www.gmsustainability.com/ issues_supply.htmlhttps://developer.gm.com/ Supply Chain Insight (2012). Big Data- Go Big or Go Home? Retrieved from: http://supplychaininsights.com/wp-content/ uploads/2012/07/Big_Data_Report_16_JULY_2012.pdf MARIA DEUTSCHER (2013) GM’s $130M Data Center Takes After Facebook, Runs Hadoop Retrieved from: http:// siliconangle.com/blog/2013/05/15/gms-130m-data-center-takes-after-facebook-runs-hadoop/ Stephen Edelstein (2013) Siri Eyes Free, Big Data and goodbye Idiot Light: GM tech chief talks future car tech Retrieved from: http://www.digitaltrends.com/cars/siri-eyes-free-big-data-and-the-death-of-the-idiot-light-gms-head-of-car-connectivity-onfuture-car-tech/ Accenture Outlook Report- 2011Mac Wheeler (2013). Walmart Demonstrates the Value of Big Data Retrieved from: http:// www.custvox.org/walmart-demonstrates-the-value-of-big-data/ Suraj Shah (2013) Real-time big data analytics is the next big thing, says Walmart security director Retrieved from : http:// www.computing.co.uk/ctg/news/2273918/realtime-big-data-analytics-is-the-next-big-thing-says-walmart-security-director Bill Goodwin (2013). Tesco uses big data to cut cooling costs by up to €20m Retrieved from: http://www.computerweekly.com/ news/2240184482/Tesco-uses-big-data-to-cut-cooling-costs-by-up-to-20m

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IKEA’s Market Entry into India Abhishek Kundu, IIM Bangalore

Introduction In January 2012, the Indian government allowed 100 per cent ownership of operations in the country by foreign companies. Later in June, 2012 the Swedish home furnishings giant, IKEA, applied to the government with its plans to invest €1.5 billion (around Rs 13,500 Crore) in the country to set up 25 stores. The company was founded in 1943 and it has grown into a retail titan in home furnishings and a global cultural phenomenon, what BusinessWeek called a “one-stop sanctuary for coolness” and “the quintessential cult brand.” It has approximately 300 stores in 38 countries and its revenues in 2011 topped €24.7 billion. But IKEA’s plans for India in recent past remained mired in a back and forth with the government for a considerable time over investment norms, chiefly the one on sourcing from Indian micro, small and medium enterprises. However on 20 November 2012, India’s Foreign Investment Promotion Board (FIPB) approved IKEA’s plan to invest €1.5 billion to set up 25 stores in the country. As IKEA has recently zeroed in on 4 states for opening stores in India recently still there are several questions on how this strategic move would evolve. The objective of this article is to answer them. This article seeks to establish IKEA’s global offerings, Customer Value Proposition, Positioning and Branding and identify Points of Parity and Points of Difference for IKEA. It also establishes Purchasing Power Parity (PPP) prices in Indian currency for a range of IKEA’s products. It recommends IKEA’s potential target market segment, changes in IKEA’s global Customer Value Proposition, Positioning and Branding vis-à-vis India. IKEA’s Global Offerings Product Range IKEA offers a wide range of well-designed, functional home furnishing products, which are split according to usage into different departments: Bathroom, Bedroom, Laundry, Lighting, Children’s IKEA, Cooking, Living Room, Outdoor, Decoration, Dining, Eating, Hallway, IKEA Family Products, Kitchen, Secondary storage, Small storage, Textiles and rugs, Workspaces, Youth Room etc. In-store Experience A big part of what IKEA offers its customers is the in-store experience. Its stores have an airy, ultramodern look. Wide aisles and accessorized displays make for a wholesome shopping experience. Customers can drop off children at a beautifully designed, companyoperated day care center while they shop. They can stop for lunch at a delightful cafi (café). IKEA’s Global Customer Value Proposition IKEA’s global Customer Value Proposition is ‘STYLE AT LOW COST’. The company targets young furniture buyers who want style at low cost. IKEA achieves its low cost by a. Employing a self-service model based on clear, in-store displays, b. Designing its own low-cost, modular, ready-to-assemble furniture, and c. Expecting customers to do their own pickup and delivery while offering a delivery service at nominal fee.

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 Globally IKEA employs a ‘REVERSE POSITIONING’ to distin-  guish itself from middle-tier furniture stores, low-end ware-  house stores and big-box retailers. It offers limited in-store  IKEA’s Global Positioning

Airy, ultra-modern look, Wide aisles and accessorized displays, In-store cafes, and

In-store child care. sales assistance, furniture that requires assembly and limited assurance of durability. But this bare-bones value proposition is supplemented with a store environment and ser- Recommendations vices that are virtually unheard-of among typical low-end The following recommendations have been based on market participants. These have already been described under the research and rigorous analysis: head ‘IKEA’s global offerings’. Target Consumer Target Market Segment The recommended target market segment for IKEA in India is: The Global IKEA brand Globally IKEA is a ‘LIFESTYLE BRAND’. The brand stands for a ‘Young, aged 22-35 years old, urban, upwardly mobile and lifestyle that customers around the world embrace as a sig- belonging to the Consuming Class but not wealthy.’ nal that they've arrived, that they have good taste and rec- Consumer Profile The profile of consumers likely to be most ognize value. BusinessWeek magazine has argued that an enthusiastic about buying IKEA is provided in the table beIKEA store is a trusted safe zone where buyers can enter and low. be part of a like-minded cost/design/ environmentally- IKEA’s modern and stylish furniture offered at low cost, selfservice model and extended store hours are in alignment sensitive global tribe. with the needs and wants of this market segment. The instore child care service is in alignment with the needs of Points of Parity and Points of Difference Points of Parity Category Points of Parity (POP) include cus- young couples with children. Possible pain-points such as tomer’s basic requirements from furniture in terms of func- the requirement for assembly, relatively lower durability and tionality (for example a bed should provide sound sleep, a limited in-store sales assistance are thought to exclude older sofa should provide comfortable seating etc.). Formal Prod- as well as semi-urban and urban consumers who are unlikely uct Warranties can also be seen as a Category POP if one to overcome entrenched thinking and behavior with regard considers organized furniture retail. Limited attention can be to the purchase of furniture. paid to Competitive POP’s since IKEA’s competition in India The target market segment clearly satisfies the five Criteria for Segmentation: Measurable, Substantial, Accessible, is highly fragmented. Points of Difference Points of Difference for IKEA would in- Differentiable and Actionable. clude: i. Superior functionality through Swedish design at low prices, ii. One-stop solution for all home-furnishing needs (deriving from unmatched product mix and width of product line offered through single store), iii. Suggested interior design through product arrangement in the store, iv. In-store experience, through Demographics Age

22-35 years

Education

Well-educated

Income Geographic

Belongs to ‘Consuming Class’ Urban

Behavioral

Functionality seeking

Possible scriptor

segment

de-

the

Young, urban, upwardly mobile consumer

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Customer Value Proposition The Indian consumer mindset, which indicates that the target consumer holds functionality as the most important purchase criterion, necessitates an adaptation of in IKEA’s global Customer Value Proposition of ‘Style at Low Cost’ vis-à-vis India. The target consumer is not happy with just pieces of furniture that satisfy basic requirements such as comfort and strength, but instead looks for superior functionality. In the furniture space for example, the consumer looks at space requirement, aesthetic fit, storage space (for cupboards), posture support (for chairs) and so on. The Customer Value Proposition for IKEA in India can be summed up as: ‘The best functionality at best prices.’ Positioning IKEA’s global ‘Reverse Positioning’ is seen as unsuitable for India. Unlike Western markets (where organized retailers compete with each other by offering additional features and services) where IKEA could distinguish itself through that positioning, the Indian market is much more fragmented.

. In India IKEA should position itself as a one-stop solution for all the customers’ home furnishing needs, versus its competitors who (even those in organized retail) would find it hard to match IKEA’s product mix and width of product line. Additionally the Points of Parity and Points of Difference analysis should be factored in. This leads to the following positioning statement suitable for IKEA in India: ‘To the young, urban, upwardly mobile Indian consumer, IKEA is a one-stop solution for all home-furnishing needs, offering the best value- the superior functionality of Swedish design at low prices.’ Branding It is recommended that IKEA retain its global branding when it enters India. Globally the IKEA brand stands for a lifestyle that customers around the world embrace as a signal that they've arrived, that they have good taste and recognize value. BusinessWeek magazine has argued that an IKEA store is a trusted safe zone where buyers can enter and be part of a like-minded cost/design/ environmentally-sensitive global tribe. This has obvious advantages:

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communicate its Customer Value Proposition, Positioning and Brand to its consumers,

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address pain-points, especially the one on lower durability through its communication strategy (it is felt that the lower durability of IKEA ‘s products derives from its use of particle board and its belief that customers must redecorate more often; this is even as an inviolable part of the overall IKEA offering that the company is unlikely to change for one market and therefore should look to address through its communication strategy alone).

The global IKEA price, translated in PPP terms, has been calculated in the above table. It can be seen that the prices are in similar ranges as other products available in Indian market. This means that, keeping any local cost considerations in mind, as long as IKEA is able to translate its global prices to India in PPP terms, no major price adaptation is required. Communication Strategy Finally, it is recommended that IKEA follow different communication strategies for two different phases of its market entry: a) Launch Phase, and b) Post-Launch

i. Lifestyle branding can help IKEA create loyal customers to whom it can then cross-sell through its wide product mix and line of home furniture and furnishing products. It can also increase these customers’ frequency of buying by encouraging them to redecorate more often, in line with the lower durability of its products. ii. Lifestyle branding can help IKEA address the likely challenge it will have to face of cheap knock-offs of its stylish, well-designed, highly functional products. Consumers are much less likely to lean towards these knock-offs if they see IKEA products as part of and representing their lifestyle. iii. Lifestyle branding is also likely to encourage consumers to pay less attention to possible pain-points such as lower durability, furniture as knocked-down kits etc.

a. Launch Phase In the launch phase, IKEA’s objective should be to inform (about its Value Proposition) and to get customers to visit its stores. It can achieve the former through online marketing, in line with its target market segment, and achieve the latter through both online marketing as well as ‘buzz marketing’ (IKEA is known for its marketing stunts which create stories that generate buzz for the company. For example, managers at IKEA’s Atlanta USA store invited locals to apply for the post of Ambassador of Kul (Swedish for fun). The five winners wrote an essay on why they deserved $2,000 in vouchers. There was one catch: They would have to live in the store for three days before the opening, take part in contests, and sleep in the bedding department.).

Building a lifestyle brand is likely to take time but IKEA can help speed up the process through its communication strategy. This is addressed in the recommendation on ‘Communication Strategy’ below.

b. Post-Launch Post the initial launch phase, the company’s Value Proposition would be obvious to any customer visiting its store. At this time IKEA should shift focus to

Competitive Stance The fragmented nature of the Indian furniture and furnishings market where there is no clear market leader, combined with IKEA’s natural advantages (financial power and its distinctive, contemporary, highly functional furniture at great prices) and its focus on a specific market segment (young, urban, upwardly mobile), means that the company’s entry into India may go unchallenged. The caveat is that it must successfully

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addressing the biggest pain-point of lower durability by encouraging consumers to redecorate their homes more often,

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emphasizing the superior functionality offered by Swedish design, in line with determined customer preferences, and

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building its lifestyle brand (through the marketing stunts it is known for and its unique catalogs; the store experience and all features of IKEA’s offerings will contribute to this).

Pricing Strategy

References               

http://www.thenational.ae/thenationalconversation/industry-insights/retail/ikea-goes-flat-out-with-ideas-in-india http://www.livemint.com/Industry/rG58h5SMVwmBu4Qby9Y0sM/Government-has-not-asked-us-to-reapply-Ikea.html http://www.businessweek.com/stories/2005-11-13/ikea http://www.ikea.com http://www.livemint.com/Industry/rG58h5SMVwmBu4Qby9Y0sM/Government-has-not-asked-us-to-reapply-Ikea.html http://www.firstpost.com/business/ikea-scouts-for-land-zeroes-in-on-4-states-for-india-stores-1027545.html http://www.ikea.com/ Moon, Youngme (2005). “Break Free From The Product Life Cycle”. Harvard Business Review; May2005, Vol. 83 Issue 5, p86-94. Porter, Michael E. (1996). “What Is Strategy?”. Harvard Business Review; Nov/Dec96, Vol. 74 Issue 6, p61-78. Moon, Youngme (2005). “Break Free From The Product Life Cycle”. Harvard Business Review; May2005, Vol. 83 Issue 5, p86-94. http://www.businessweek.com/stories/2005-11-13/ikea http://www.businessweek.com/stories/2005-11-13/ikea http://www.businessweek.com/stories/2005-11-13/ikea http://www.businessweek.com/stories/2005-11-13/ikea http://www.businessweek.com/stories/2005-11-13/ikea

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The Impact of Emerging Technologies on Employee Relation Karan Shorey, Aditya Nair, Xavier Institute of Management, Bhubaneswar

Hemant Dua, 35, an employee working as a cashier in one of the retail units of a big FMCG company makes a distress call to his wife. “I fear I might lose my job, they are getting in some technology to take away my job, I don’t know what to do”.Hemant is referring to the technology enabled concept of self-checkout.Self-checkout machines provide a mechanism for customers to pay for purchases from a retailer without direct input to the process by the retailer's staff. They are an alternative to the traditional cashier-staffed checkout. The number of self-checkout machines is estimated to reach 430,000 units by 2014. (Source: http://en.wikipedia.org/wiki/Self_checkout) Another phenomenon of emerging technology, the concept of lights out factory is soon catching up. What is a lights out factory? A fully automated factory which takes raw materials as inputs and produces output as finished products, with zero human intervention, therefore needs no lights on! These examples are only a tip of the iceberg. We are increasingly witnessing a huge impact of emerging technologies on the way businesses and organizations function, leading to a significant impact on Employee Relations. First of all, let us try and decode the term ‘employee relations’ to be able to appreciate the major impact that emerging technologies have or could make to the employee relations in organizations. Employee relations constitute two broader aspects. One, the relationship between employers and employees, and second, the relationship of employees among themselves (Figure 1) ‘Employee Relations’ as a concept has evolved from the erstwhile practice of ‘Industrial Relations’. While the Industrial relations majorly focused on handling the trade unions and collective bargaining related issues, the employee relations take a more holistic view of the functioning of an organization and the role of the employees therein. Therefore, considering the changes in the way business is conducted in modern times and the two aspects highlighted above (Figure 1), the core objectives of employee relations (Figure 2) accepted today by most of the organizations worldwide are, 1) creating a work culture that is challenging and productive, 2) enhancing the confidence, skills and creativity of the workforce by training, motivatingand building teams, , 3) ensuring fairness in all transactions across all sections of the workforce, 4) engaging the employees by maintaining effective communication channels and grievance handling, 5) fixing remuneration, providing basic, recreational and health facilities, 6) emphasizing the role of employees in success of the organization and managing expectations 7) monitoring the compliance to process and policiesand finally, the most elusive objective of 8) achieving participation of the workforce in corporate decision making. Now, as we to try to understand the impact of technology on employee relations in the purview of the above mentioned objectives, we will focus on some of the most important influences of technology which make the practice of employee relations increasingly complex and seemingly easy at the same time.

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Figure 1

Figure 2

Job Opportunities/Manpower Requirements, this is one of the most prominent impact of technology. The concept of Technological Unemployment (TU)has gained traction very fast, when the tasks are automated, the employees who were manually handling the tasks earlier, become redundant. This impact is clearly highlighted when we look at the example of Hemant Dua. This is a definite reason for concern and known as one of the most feared impact of technology. Some of researches in United States attribute a loss of 2 million clerical jobs to technological unemployment. India has lost close to 5 million jobs in the manufacturing sector from 2005-2010. Mr. Venugopal Dhoot, Chairman Videocon Industries, quoted, â&#x20AC;&#x153;Increase in automation has lowered demand for labor.Newer technologies have come and workforce has moved out in large numbers.â&#x20AC;?But when we look at the flip side, the concept of TU is often debated as new technology also creates new and unrelated jobs. Creative people have benefitted with emerging technologies. A perfect example of this phenomenon is the post liberalization growth of IT sector in India. While almost the entire country feared the adverse effects of technological unemployment, the present day situation has justified the proponents of IT liberalization. As of year 2012, Indian IT

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sector contributed 7.5% to our countryâ&#x20AC;&#x2122;s GDP employing 2.8 million people directly and creating indirect employment for 8.9 million people. Given this situation, job security, which forms the basis of employee relations, has become a major worry for employees. This challenge necessitates bridging the skill gap between the requirements of the new jobs and skills of the employees available. Building employee relations means preparing the employees for the jobs of the future through training, and this in turn can also be achieved through technology. The use of technology demands a good acumen and adaptability. Any technology which is relevant today will become old/obsolete in a few years and hence the employees need to be multiskilled and have a flexible mindset. With 65% of Indian population aged below 35 years, India has a distinctive advantage in this regard. That is why many international organizations are starting operations in India.ER challenge is to make the employees aware and comfortable with new technologies by faster collaboration and knowledge sharing across the organization using audio/video conferencing across locations, connecting employees to experts using structured online training programs which reduce the time lag between demand

and availability. Tools such as GoToMeeting have not only transformed the way meetings are conducted in organizations but also made virtual training programs for large groups (up to 100 people) convenient and feasible. This dawn of emerging technologies and need for training has created niche jobs which command higher pay packages. Today, we are witnessing jobs which did not exist yesterday. Organizations now need specialists for everything. Online Marketing Director is one such job with a projected growth rate of 60% and commands a salary in excess $100,000.It requires an employee to combine the experience of traditional marketing with the new technology phenomenon such as web analytics and search engine optimization. This job is one of the top 10 best paying jobs of future and all of these 10 jobs listed have a common thread, awareness, know-how and use of technology. Greater awareness and availability of technology has greatly influenced the expectations of the workforce where every employee looks to understand his/her contribution to the success of the organization. Gen Y, a term used to refer to people with birth dates between 1980 and 2000, has witnessed and participated in the advancement of emerging technologies that we have today. A research paper published by Elon Journal of Undergraduate research in communications claimed that Gen Y students who decided to quit social media showed the withdrawal symptoms of a drug addict who has quit stimulants. In such a scenario, the only way for organizations to build a brand among Gen Y is to use extensive technology to engage the employees. Engagement of employees through social media such as Facebook and Twitter has become a norm. Many organizations like Infosys and TCS have created their own learning management systems to engage with employees even before they join. IBM leads the charge here, with its path breaking idea of Smarter Workforce. This idea is about equipping people with tools and technology that they need to get something done and in turn, find people who can use the tools and technology. The use of analytics to gain insights into the engagement levels, end to end recruitment solutions, and the proposed use to Watson (IBM’s cognitive computing system) for career planning are disruptive trends and help in creating a coveted employment brand and hence stronger employee relations. Stronger employee relations are also based on communication. An aspect which is a critical success factor (CSF) for employee relations in any organization, and, communication is also a factor which has seen the greatest impact of technology in the last decade. E-mail, the most prevalent communication medium has seen a boost. With brands like IBM, Apple and Microsoft rolling out newer versions of their e-

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mails clients Lotus, Mail and Outlook respectively, the integration of various features such as video calling in the instant messaging applications, IBM’s ready-made social networking platforms, Google’s hangouts etc. indicate the focus on technology enabled communication in today’s scenario. In the mobile communications, the success of instant messaging apps like Watsapp and Wechat has reinforced the paradigm. Employees have become more forthright in sharing their grievances, opinions and asking tough questions using these mediums. Many organizations conduct online town hall sessions to capture the ideas and grievances of the employees. While this feedback is being captured, its use in corporate decision making is still limited. Most of the decisions are still driven top down through executive boards. Information dissemination has become quick and unrestricted, and it is difficult to control even the unnecessary or malicious communication. Most of the organizations are struggling with filtering the information for dissemination. So, the technology has impacted the communication in three ways, a) the communication can happen irrespective of the geographical location and time zone, without delays and almost cost free, b) there are definite listening mechanisms for collecting feedback and grievances of employees, c) there is a significant threat of unwanted information spreading at unparalleled pace,all the three points can act as a make or break factor in the employee relations of any organization. As we talk about the make or break factors for employee relations, the impact of emerging technologies as intrusive forces have made a significant dent in certain cases. There is a risk of overemphasis on the use of technology. Fingerprint swipe and retina scan for entering the office, data records of an employee’s browsing preferences, system timed tea and lunch breaks, health information, and complex policies and processes such as system based approvals, raising tickets for menial tasks, daily update of tasks completed etc. have become a source of concern and frustration for the employees. Here we observe an adverse effect of technology of employee relations. At the same time, technologies are also great levelers that ensure fairness and transparency. An ATM machine for example wouldn’t prefer any person based on his/ her designation, social stature or net worth, whereas, a human is susceptible to such fallacies and strong employee relations are built on pillars of fairness and transparency. Now that we have looked at impact of emerging technologies on the core objectives of employee relations such as job opportunities/manpower requirements, emerging skill gap, higher pay packages, changing expectations of the workforce, mediums and speed of communication, and overemphasis on use of technology. We can be rest assured that technology will continue to impact the businesses,

organizations and employee relations therein in a significant manner. The challenge is to channelize the positive impacts for achieving the desired objectives. To become successful at making a positive impact on employee relations through use/ implementation of any technology in an organization, Technology Acceptance Model (TAM) can be used. This model assesses the acceptance of technology by taking employee behavior into consideration. Bank of Baroda successfully used this approach during its transformation from a legacy culture to implementation of technology enabled core banking solutions. This example highlights a customer centric approach towards the employees. As long as the organizations consider the employees as customers and then analyze the adoption of technology, they will continue to enjoy stronger employee relations and happier employees. References:

            

http://en.wikipedia.org/wiki/Self_checkout http://en.wikipedia.org/wiki/Lights_out_(manufacturing) http://www.aei-ideas.org/2013/04/technological-unemployment-and-the-loss-of-2-million-clerical-jobs-since-2007/ http://en.wikipedia.org/wiki/Information_technology_in_India http://www.gotomeeting.in/fec/ http://en.wikipedia.org/wiki/Demographics_of_India http://indiatoday.intoday.in/story/india-lost-5-million-jobs-during-2005-2010-india-today/1/252585.html http://www.cbsnews.com/8301-505125_162-57197981/six-figure-jobs-financial-analyst-gaming-industry/?tag=mwuser http://www.forbes.com/sites/joshbersin/2013/01/31/ibm-launches-its-smarter-workforce-initiative/ http://asmarterplanet.com/blog/2013/05/the-top-5-checkpoints-to-building-a-smarter-workforce.html http://www.citehr.com/177662-ppt-made-me-employee-relations.html#post773294 http://dspace.iimk.ac.in/bitstream/2259/629/1/technology.pdf http://www.elon.edu/docs/e-web/academics/communications/research/vol2no1/01Cabral.pdf

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Kuotons - The Story of an Outlandish Marketing Strategy that went Wrong Navajith U M, DoMS IIT Roorkee

There are two things which can influence the buying decisions of Indians – ‘Discounts’ and ‘Getting something free with a product’. Koutons retail India was one such brand which was reaping benefits based on the first strategy -Heavy discounting throughout the year. The story of Koutons is that of an apparel manufacturing company that forward integrated into retail. Koutons had its inception in 1991 with the formation of a partnership firm M/s Charlie Creations. In 1994 promoters incorporated the company as Charlie Creations Pvt. Ltd. which was later renamed as Koutons Retail Private Ltd. in 2006. The company went public and thereby became Koutons Retail India Ltd. in June, 2006. Their 1st retail store was inaugurated in Delhi in 2002. Koutons grew real fast. They became the largest retail apparel chain in India. By 2009, Koutons had almost 1400 EBOs (Exclusive Brand Outlets) in 500 plus cities in India. Koutons had net sales CAGR of around 65.7% in 2010. Their target customers were middle-class Indians of the age group 22-45 years. They introduced another brand, Charlie Outlaw targeting the age group of 14-25 years. Later Koutons Retail India Ltd. decided to expand their market and venture into kids apparels and ladies apparel via ‘Koutons Junior’ and ‘Les Femme’ respectively. Global recession also hit during the same period. And then the downfall of Koutons started. But one has to think what the real reason for their downfall was. Was it the uncontrollable growth? Was it the expansion into Kids and Ladies apparel at the wrong time? Or was it the gradual result of an incorrectly implemented marketing strategy? The marketing strategy followed by Koutons was that of heavy discounting. ‘50%+40% off’ and ‘Buy 1 Get 4’ were some of the common discounts offered by Koutons. But unlike the major retail brands, Koutons offered discounts throughout the year. Koutons was trying to get a psychological edge over the Indian consumers who like to bargain and get discounts on products. The heavy discounts offered and the brand promotion with the tagline ‘The Way Ahead Always’ gave the consumers a feel that they were getting a good bargain. Koutons shirts were available for Rs.450 after discount. It was a good buy, of course. Even after providing products at such low prices Koutons was reaping in profits. The reason was that they had no middlemen. They directly manufactured the products and sold the same via their retail outlets. They followed a FOFO (Franchisee Owned Franchisee Operated) model, where only the inventory was provided by the company. Koutons targeted the Tier-2 and Tier-3 cities where other brands were not established, giving Koutons more visibility. This also helped them in shifting unsold inventories from Tier-1 cities to Tier-2 and Tier-3 thereby preventing pile-up of unsold stocks. Kuotons positioned themselves as a ‘High Fashion value for money’ brand. . So the ultimate aim was to provide good quality at reasonable prices.

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Koutons Retail Business Model (Source: ICICIdirect Research, 2008)

Then one has to wonder why they followed the heavy discounting strategy. The strategy worked initially and gave them huge revenues. But gradually the consumer got enlightened. The feel good factor which the heavy discounting provided slowly diminished. Moreover, venturing into Kids and Ladies segment actually resulted in brand dilution. Customers started questioning the high MRPs and the hefty discounts offered. Moreover, customers started complaining about poor quality also at a later stage. All this resulted in the drop of sales. This resulted in rising inventory costs, which was their biggest risk. Koutons had incurred heavy debts by then. Revenue came down drastically and they were unable to repay the debts and the stock prices also collapsed. Stock prices fell steeply from Rs.738 per share in Jan 2009 and are presently trading at Rs.2.35 per share (As on September 20, 2013).

At this point, Koutons should have attempted a different strategy, tried for re-positioning the brand or even rebranding itself. Instead, they got carried away by the high profits and revenues created during the retail boom and tried to get the maximum out of it. Koutons went for high expansion as well as brand extension. They borrowed money as long term and short term debts, piled-up their inventories, and when the sales went down their entire strategic steps backfired. Heavy debt, drop in sales, high inventory costs and falling share value gave Koutons the final knockout punch.

In May 2011, Koutons downsized its operations from 1400 outlets to 900 outlets. 150 stores of Charlie Outlaw were also closed down. And presently, there are hardly any functioning outlets of Koutons. The company is presently trying to keep its head above water and has changed its board of The failure of Koutons is a result of non-compliance of their directors recently. Anyhow in coming days, Koutons will be positioning and marketing strategy, coupled with uncon- remembered for its outlandish marketing strategy which trolled growth and expansion. Koutons should have resorted went totally wrong and eventually led to its downfall. to normal and economic pricing instead of inflating the price and then offering high discounts. Though the Indian consumers got attracted to this offer initially, they understood the real scenario after sometime. The customers understood that the product value was not worth the quoted MRP. The Diagrams in the next page. strategy followed by Koutons took a major hit then, once the perceived value of Koutons products came down.

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Stock price variation of Koutons Retail India Ltd. (Source: economictimes.com)

Yearly net sales of Koutons Retail India Ltd. (Data: economictimes.com)

References

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http:// economictimes.indiatimes.com http://content.icicidirect.com/mailimages/Koutons% 20Retail.pdf

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http://www.fashionunited.in http://www.sebi.gov.in/dp/koutonsdraft.pdf http://www.nseindia.com/content/corporate/ eq_KOUTONS_base.pdf

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Yearly Profit After Tax (PAT) of Koutons Retail India Ltd. (Data: economictimes.com)

mHealth and its Role in the Healthcare Industry Mrinal Jha, Great Lakes Institute of Management, Chennai

mHealth Healthcare domain is of vital importance for any developing country across the globe. There has been major scientific & technological research to find new ways to improve the quality & expand the reach of healthcare globally. In this context, mobile technology can be used as a means to spread quality healthcare across the countries. Availability of device, user friendliness & declining cost of mobiles phones makes it as potential tool for providing healthcare service. The emerging technology which would help in achieving the intended goal is termed as mHealth. Advanced mobile devices and hosted mobile applications, working in sync with cloud computing, big data analytics and social networking and have laid the platform to enable a disruptive methodology of providing health care to the consumer. It has an untapped potential of access expandability of health care services, cost reduction and improved results. It has already started to transform the patient-doctor interaction process and how diseases are diagnosed, treated, billed and paid for. The ecosystem of health care and its agents – doctors, patients, payers & providers has undergone a dramatic transformation through this technology. Key Drivers for mHealth

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It requires a synergy among various technological tools such as smart mobility, cloud computing, social networking and dig data analytics all working together.

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The epicenter of health care system has gradually shifted from hospital, health care center to where patients are. This poses a challenge for Life science companies

Through the means of mobile devices, the cost of healthcare can be slashed by more than 60 percent while providing quality services. The key features & benefits for the usage of this technology can be put in the below matrix as shown in figure 1. Challenges of MHealth

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Privacy & Security Issues:With increasing amount of data sharing and connectivity among doctor, patients & health care service providers, there is issue of security & privacy coming to surface. Apprehension & reluctance to provide accurate data fearing misuse of data is causing a slow adoption rate to mHealth technology. The manageability & confidentiality becomes a key challenge to address in implementation of mHealth.

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Limited Electronic Health Information : There is lack of available electronic information for large segment of population. Most of the health records are maintained manually in health care service especially in rural & suburban areas.

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mHealth Model

To provide intended benefit of mHealth to the underprivileged & lower strata of society at a low cost requires phase wise conversion of the historical manual health data to electronic form and making them available at a central repository. Behavioral Constraint from Healthcare Industry : Widespread acceptability of mHealth requires a modification in the outlook of stakeholders of Healthcare industry. The Industry needs to undergo a behavioral change & have to depart from the outlook of protecting its self-interest. It has to understand that providing cost efficient personalized care to patients will only increase the overall growth of the industry &adopting to mhealth will only provide improved patient care and highly regulated administrative system.

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mHealth in India For example, the usage of mobile is growing rapidly in India with 70 percent of its population is having the device. Its unparalleled reach coupled with advancement of technology can be leveraged to give rise to the new network of healthcare services in India. Changing disease profiles, advancements in mobile technology, increased adoption of smart phones and greater focus on health and wellness are laying concrete foundation for mHealth in India, findings of an analysis survey conducted by Frost & Sullivan. At present, there are about 20 initiatives for mHealth in the country. This number is set to grow as India has a robust mobile technology infrastructure in place to support the growth of mHealth. With the increasing penetration of mobile services in rural areas, mHealth solutions can consolidate the healthcare delivery system for the rural population.

Technology Innovation and Impact on patients: Technology Enabler

Patient Impact

Emerging mHealth Use

Smart Mobility

Communicate with doctors & hospitals Manage & Monitor chronic Disease Access health related information

Cloud Computing

Providing heavyweight health care services & information through lightweight mobile applications Reliable & Secure storage of patient information with personalized care.

China is expected to become the biggest mobile health market by 2017, with diagnosing & monitoring applications reaching out to the wider population. Around 600 patients of Radiological Society of North America’s Image Share Project has reported cloud computing the more suitable & efficient way to store & provide access to their medical information.

Social Networking

Provides relative comparison of various health care services in terms of cost, treatment quality etc. Enables Peer advice on treatment for patients with chronic disease

23% of the US internet users with chronic health conditions have used social networking to find others with similar health concerns.

Big Data Analytics

Enables personalized health care services catering to specific need of patients Facilitates Relative cost comparison among different providers.

A new US clearinghouse, cognizant of patients’ privacy Concerns, uses a HIPPA-compliant framework for privacy to isolate the patient identification from data it analyses to track pattern of care and outcomes.

Future of mHealth



significant & measurable positive impact on the health care services especially in emerging economies.

Public-Private sector Integration is essential for successful mHealth implementation. Government & Regulatory bodies have access to network & infrastruc- References ture necessary for developing the framework of the  Z. Ahmad, “mHealth: A Paradigm Shift in Delivery of mHealth whereas Private sector has most innovative Healthcare,” PIMA Biennial Convention, 2012. state-of-the-art technical solution for public health R. Wootton, N. G. Patil, R. E. Scott and K. Ho, “Tele- health in care challenges. Working in collaboration of Public-  the Developing World,” Royal Society of Medi-cine Press, private sector will bring about the intended goal of IDRC, 2009. ISBN 978-1-85315-784 wider reach & cost efficient system.  “MHealth Education: Harnessing the Mobile Revolution to  Disruptive Innovations will be needed at continuous Bridge the Health Education & Training Gap in Developing intervals to improve the efficiency & service experiCountries,” MHealthEd, Irish Global Health Education Innovation Institute (IHEED), June 2011. http:// ence of mHealth. The most promising innovation www.mobileactive.org/files/file_uploads/ should be quickly deployed & implemented on pilot iheed_report_updates.pdf project. Successful results from pilot project should The Boston Consulting Group & Telenor Group, “The Sociolead to wider application of innovation in the system.  Economic Impact of Mobile Health,” April 2012. Conclusion  Health concerns have increased in developing nations at alarming pace and started to include chronic diseases with communicable diseases. To counter these challenges, mHealth is adequately positioned with emerging technology  support. Proper incentives also need to designed to encourage every stake holders to contribute towards developing mHealth. The long-term objective of all the concerned effort towards building mhealth framework should be to ensure

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UN Foundation, “mHealth for Development: The Opportunity of Mobile Technology for Healthcare in the Developing World,” 2009. http://unpan1.un.org/intradoc/ groups/public/documents/unpan/unpan037268.pdf World Health Organization (WHO), “Global Health Observatory Data Repository.” http://apps.who.int/gho/data/ node.main.475

Transforming HR for new Business Priorities Pratima Gowsami, Rahul, National Institute of Agricultural Marketing

Do you create value within the markets or business units you serve and will that value have an instantaneous impact on quantitative business objectives? The days of anHR leader being the people person with soft skills have long passed. There aren't any soft skills, there's solely business acumen. Each call, plan, or method must be aligned with the core business strategy. As a real business partner, HR should be able to add value to the organization’s overall strategic objectives by using a shared mind-set and responsibility to key performance indicators. The main target has shifted from what HR will do to what they deliver. Merely explicit, the bar has been raised. To feature value, HR should initiate and still step outside of ancient roles and proactively hunt down opportunities to find out the business we have a tendency to support. To participate and contribute in business discussions, HR business partners should not solely guarantee swish systems and processes; however think about the strategic impacts of talent and organization decisions. It’s all concerning making and delivering value aligned with the organization’s objectives. HR leaders should initial be strategic business partners simply happen to manage the foremost valuable assets of the organization—its human capital. Human Resources Management is a crucial plus to any business. It provides experience in:

   

Managing amendment and facilitating coaching and development Recruitment, choice and employee relations Pensions and advantages Communicating with employees

An HR manager's role is to confirm that business managers apply HR policies and procedures systematically through all business units. This helps to develop partnerships across completely different groups that support company aims and objectives. In the past, HR transformation centered totally on creating existing HR functions a lot of economical and effective. The unspoken assumption was that HRwas already doing all the stuff that is required to be done; it simply involvestrying and doing them quickly and efficiently. But excellence at ancient HR services – like integrated HR systems, timely access to manpower information and effective service delivery – is currently the value of entry, now not a competitive advantage. Today, HR capabilities should not solely support the business, however modify business strategy.

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models. The goal is to make a typical world HR delivery mission. This demands HR leaders deliver climbable, targetframework which will be tailored to the stress of native mar- ed, solutions to organizations, usually in far-flung regions. kets and business units – a mass customization approach must modify and accelerate these business methods, not that gives differentiated services to varied segments among slow them down. the business. Cloud-based HR solutions are laying birth the muse for real time HR analytics and broad-based benchmarking. This advance in technology represents a seismic shift within the ability of HR to maneuver from historical coverage to developing prognostic capabilities.

Enabling technologies New technologies are providing HR leaders with innovative tools to visualize, set up and execute transformation solutions. Cloud, social, mobile, collaboration and analytics are quickly changing into the norm, not optional features and functionality. Current and prospective workers in each ma-

Not solely is that the design of HR transformation dynamic; ture and rising market are utilizing social and mobile technolthe sequencing of its implementation is changing yet. His- ogies to act with the organization and among it. Analytic torically, organizations launched HR transformation efforts tools are manufacturing new insights gleaned from “big inin established, giant markets like the North American coun- formation,” resulting in higher decision-making for business try and kingdom. Today, firms are introducing HR transfor- strategy and transformation preparation choices. mation in markets that provide the best business price, as well as rising markets, and building the design out from

Practical implications

there. This could mean prioritizing business impact over Talent-led methods: Distinctive and developing consequent short price savings. generation of company leaders has become a transparent What’s driving this trend? Keeping pace with growth, rise in business performance

talent imperative. Meanwhile, the worldwide race for talent continues rapidly driven by the necessity to fill essential skills. HR leaders are orienting talent management methods consequently, distinctive high performers and serving to

Growth comes from two sources that is developing new product and services and increasing into new markets. From a talent perspective, following these methods usually needs scaling up existing talent and developing and retentive a manpower on short notice during an extremely dynamic, competitive market. HR leaders gear their talent models toward maintaining with the pace of growth and removing bottlenecks within the talent pipeline. Emerging markets

match them to the correct development opportunities across the corporate and in key markets. Talent management methods at forward-leaning corporations currently target rising leadership development programs, initiating new manpower coming up with capabilities and performance management tools and fast diversity programs. One world health care and Drug Company centered their world strategy on developing new product for the China market. The corporate looked to HR to mobilize workers and establish an innovation hub in

Shanghai. HR leaders centered first on the business goal so Ancient HR transformation was driven by its ability to get aligned talent to assist win it. cost-saving solutions. That mandate has shifted. Today, firms wish HR transformation refocused on the foremost Emerging market-led methods: Corporations are developing necessary growth and business opportunities. To giant or- HR capabilities to match their dynamic, world presence. Talganizations, the selection of whether or not to remodel HR ent leaders are rising world quality programs to maneuver to eke out savings, or to take a position during a climbable prime talent round the world a lot of expeditiously and simpand versatile platform that permits the corporate to pene- ly. Firms are encouraging the surroundings that permit world trate the booming Asian markets, is obvious.

and virtual groups to collaborate and thrive and that they are coming up with new, climbable staffing models which will

Supporting mergers, acquisitions and new ventures Slow economic process has led to a brand new parade of mergers, acquisitions and divestitures across the company in the world. Supporting the talent wants of mergers & acquisitionsand joint ventures is changing into an essential HR HR Pratibimb | December 2013 | 26

flexibly draw upon contingency staff or use outsourcing as required. Underpinning these HR efforts may be a deep understanding of the markets and why they are key to the business strategy. HR leaders perceive however the business surroundings and strategy take issue in every market, have

determined what drives those distinctions, and use those business with deep data of wherever to use services and insights to make the solutions essential to the company’s solutions. Chief Human Resources Officer at leading organisuccess. A global insurance firm with over 60,000 employees zations are establishing business metrics for his or her Busiin more than 80 countries realized that its HR organization ness Partners, not merely HR metrics. This implies with sucwas too expensive and not fully causative to business strate- cess desegregation acquisitions to enhance performance; gy. About 180 completely different HR and payroll systems guarantee firms have the correct talent to drive innovation; served this world manpower. Given the dimensions of the and serving to firms operate effectively in rising markets by challenge, the corporate determined to launch its world HR clearing potential roadblocks like tax a worldwide manufactransformation program in rising Asian markets. This strate- turer Janus-faced fierce competition in home and new margy enabled the corporate to target smaller, strategic parts of kets, beside new leadership and a brand new business stratethe business, permitting it to realize quick wins and build gy. Company leadership turned to HR to review and redefine vital momentum. Though the scope was advanced as well as the company’s world HR and governance structures to create case management technology, new HR technology, and new them a lot of centered on the organization’s strategic priorioutsourced payrolls, the initial pilot programs were com- ties. The new HR structure depends on HR Business Partners plete in but six months. Since then, the answer has been to guide consequent stage of HR transformation, involving systems replacement and a spotlight on talent analytics, deployed to over 30 countries with 23,000 employees. learning and leadership development. Mergers and Acquisition led methods: Leading firms read this method as an opportunity not solely to integrate two or Lessons from the front lines a lot of existing systems, however as a chance to vary and improve HR systems for the new organization. HR’s new capabilities ought to embrace the power to effectively and dependably mix two distinct workforces into a really integrated organization which will facilitate the business win its growth goals.

Start a new conversation with the board centered on business priorities. Are asking their boards to take a position in an HR transformation that guarantees to deliver a brand new HR system or new payroll provider? Or are they beginning a new speech with the board, centered on business priorities, like remodeling HR to complete acquisitions firms in half the

In the wake of an unsuccessful acquisition, a worldwide tele- time or standing up a brand new, climbable HR perform becommunications company launched a significant cost-cutting cause the company advances into new markets? Marketing initiative which uncovered serious challenges to its HR sys- enhancements and upgrades to current systems is not any tems. The company’s existing HR technology platform was longer spare. In creating the case for HR transformation, tarexpensive, non-complaint in essential areas, and now not get strategic outcomes, not technologies and ways. supported by several of its software package suppliers. The necessity to upgrade the system was flagged as a looming business risk and a driver of even higher prices. Many months later, a new, thriving acquisition was completed, providing the chance for a full scaleHR transformation program that enclosed advantages administration outsourcing, multi-yearHR systems prioritization, consolidation and improvement. The result is the reduced prices these days and also the elimination of sudden prices within the future.

Develop playbooks through active simulation. The HR team ought to produce playbooks which will be enforced given a range of business things. These playbooks are developed by actively simulating completely different eventualities so manufacturing action plans supported these simulations. Rather than drawing up new plans to fulfill each new challenge, HR systems, processes and programs should be repeatable, particularly for business events that are possible to recur, like new market entry, mergers & acquisitions and

HR organization-led methods: As HR leaders target key busi- world quality. Be ready to run quite one play. HR transforness priorities, they're additionally centered on building out mation can't be one-dimensional. An organization might core HR operations, as well as shared service centers and have a payroll risk issue that must be addressed within the centers of experience. This target business priority is shining North American country, whereas increasing in China. the sunshine as bright as ever on the role of HR business Meeting these demands might need drawing from quite one partners. Implementing an efficient business-partnering playbook, combining both the rising market-led strategy and model may be efficient thanks to accelerate the evolution of an HR organization-led strategy issues or talent gaps. HR functions. HR Business Partners match deep data of the

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