India has the capability to create a globalized cost structure
How important will be the people capability in the next orbit of business?
People capability is the most critical factor to a nation’s success – be it Japan, India or the United States. And this is a very crucial time to build people capabilities. India as a country has achieved good economic growth and the future aim is to reach to even higher levels. In 1991, when the Indian economy liberalized, it was very much behind the world. Over the last two decades, we have honed our entrepreneurial capabilities and have attained a reasonable stature across several industry verticals. However, at the same time, there are sectors such as infrastructure, education, healthcare, et al, that need considerable focus in terms of FDI, government support, investors, et al. It is therefore imperative that companies build strong people capabilities, invest in human capital, and inspire people to outpace the world.
What intangible components will constitute tomorrow’s organization?
The most important components that the next generation enterprise must possess are openness of culture, empowerment of people, continuous focus on retraining to build capabilities, infusing latest technologies. Also the ability to understand the changing consumer behavior and introducing cutting edge services to meet customer requirements will gain prominence in future.
What broad changes in business strategies can be foreseen to ensure an outward focus and keep Indian companies ahead of competition?
To ensure this outward focus, it is important that Indian companies start globalizing themselves. India has a scale and the capability to create a globalized cost structure. Americans, Germans and Japanese achieved this scale 50 years back. In India, organizations like the Tata Group, the Birla Group, Bharti, et al, have begun to embrace changes in aspects such as corporate governance, building leaders who are global in their approach and attitude, building global brands, et al. This is a very big change, which needs to be addressed in order to move to the next orbit and to build next generation enterprises.
What changes will organizations need to embrace?
No external change can take place without internal change – that is the first pre-requisite. And the change has to be in the organizational culture in terms of openness, flexibility, empowerment, coaching and training. Organizations will stumble if they don’t embrace these changes. Companies who unlock these changes with an open mind are more likely to succeed in the next orbit.