Prof Prahalad stresses need to see new frontiers

How best can Indian business grow and keep up with future challenges? This issue was answered by Prof. C.K.Prahalad, Harvey C Fruehauf Prof of Business Administration & Prof of Corporate Strategy and International Business University of Michigan Business School in a special address which he delivered at the 5th Manufacturing Summit organized by Confederation of Indian Industry in Mumbai on 19 and 20 December.

Prof Prahalad laid the foundation of his theory by pointing out that there was a marked shift in the management ecosystem, which is no longer just product - based but also a service-based industry. Given the direct relation between manufacturing and consumer-centric developments which lead to globalization, the focus should move towards manufacturing intelligent products which would also have the advantage of 'software integration'.

Prof C K Prahalad said that t o sustain fast-paced growth in the Indian manufacturing sector, and to sustain competitiveness in the global market, it is imperative to find more and more methods of innovation and not be satisfied with a follow up of the best practices in use till date.

While growth in the manufacturing industry was positive, much more could be achieved in the future especially with better skill development. Elucidating further, he said, "Networking and skill development are the key drivers for the future in the industry."

Prof Prahalad stressed the need to look at the 'next frontiers'. "As industrial boundaries are morphing - the convergence of telecom, IT and entertainment, for instance - manufacturers should take advantage of this trend", he said.

He gave the example of a heart pacemaker. "Imagine, if you could link it with a hospital, and get an SMS alert every time you have a sweet or a high-calorie diet," he said, adding that this would be the right sort of value addition which would enable the company go further in the future. "But this is precisely where innovation comes in," he said. What will enable such a scenario is intelligent embedded software, connectivity and database analytics," he added.

"There's an opportunity to disrupt the old concept of manufacturing. In pace-maker, the value lies in what you surround it with "� IT, database, analytics,'' said Prof. Prahalad. He asked Ms Swati Piramal,

There is a need to migrate from a product-centric view of value to a personalized, co-creation of value, he added. He gave the example of the Diabetes Management Eco-system being pioneered by ICICI Prudential along with network partners as an apt example. Dr Prahalad posed a question to Ms Swati Piramal, director, Nicholas Piramal Ltd about her experience with this.

"ICICI Prudential has tied up with diagnostic centres such as Wellspring, Metropolis and Dr Mohan's Diabetes Specialities Centre, as also entered into partnerships with pharmaceutical companies such as Nicholas Piramal where insulin and oral drugs can be obtained at a discount, and this is working out quite well," she said.

Based on Ms Swati Piramal's response, Dr Prahalad said this would be all about translating innovation in products, processes and business models into results through flawless execution.

The 5th Manufacturing Summit was organized by Confederation of Indian Industry with the theme, "Innovate & Win".