But what forces are reshaping our world? Doug Baillie, CEO and MD of Hindustan Unilever Ltd outlined five forces that are reshaping the world, in his keynote address at Serveskriti, a seminar organized by FMS Delhi. Said Mr Baillie, "The world is changing dramatically. Understanding the key factors that are shaping our world provides a framework, or what CK Prahalad says 'Innovation Sandbox', within which businesses have to operate."
Mr Baillie's identified following five forces:
#1 Digitization: By 2012, 5 billion people are expected to be online across the world, said Mr Baillie. That will have a huge impact on markets and marketing processes. Availability of virtually free broadband, emergence of mobile as a ubiquitous communication tool and many other factors are making the online population explode. Said Mr Baillie, "The key opportunity for businesses is to connect with this new virtual community." Mr Baillie gave the example of Facebook, Google and other new media platforms that are changing the flow of information.
#2 Co-creation: Talking about the phenomenon of co-creation, Mr Baillie said, "Today mass personalization and customization is possible because of technology and active consumer interest levels." He gave the example of NikeID, an online service from Nike, where customers can design their own shoe and get them delivered to their homes.
#3 Price-performance Disruption: Many players are changing the existing price-performance equation in a given markets. They are offering good services at much lesser price points, thereby creating a disruption in the marketplace. Mr Bailie offered the example of Bangalore based Narayan Hrudayalaya, which offers world class cardiac treatment at a fraction of the cost of US market. Businesses have to innovate constantly to redefine existing price-performance equation, said Mr Baillie.
# 4 Scale: Offering the example of ICICI Bank and Reliance Industries, Mr Baillie said that businesses have to scale up fast and make an impact.
# 5 Sustainability: Environment protection and sustainability was the last of the five forces described by Mr Baillie. "Sustainable development is a real survival issue for businesses. Businesses must follow the rules of the land and contribute to a better society," said Mr Baillie. He gave the example of cola majors which have suffered in the marketplace because they are seen as not environment friendly companies.
Closing his influential addresses, Mr Baillie said, "Businesses should move from the transactional mindsets to relationship oriented mindset. That applies even to product companies like Unilever. Through our Project Shakti, HUL has started a process of engagement with rural India which goes beyond selling soaps and detergents."
Mr Baillie's address kicked off the annual seminar Serveskriti 2008 which is being organized by University of Delhi, Faculty of Management Studies (FMS), South campus. The theme of the seminar is "Services: Jumping into Higher Value Orbit". The seminar is organized by MBA-Management of Services on December 15-16 in South Delhi Campus.
India's leading management portal MBAUniverse.com is the Official Management Portal of this seminar.
