17 th National Convention of

The Institute of Management Consultants of India (IMCI)

January 21, 2011

Dilip M. SarwateProfessor Emeritus & Certified

Management Consultant

Enterprise of the Future

Of what?•Economy•Technology

•Polity•Any other?

Are you worried about the future?

IBM Global CEO Study

This presentation is based on a study of conversations with more than 1,000 CEO's and Public Sector Leaders

worldwide.

How research was conducted?The study was done in 40 nations around the world, 32

different industries, 19 % companies employing more than 50,000 employees and 22 % employing less than 1000 employees

Research is based on surveys of 1,130 CEO s, general managers and senior public sector and business leaders from around the world.

IBM leaders conducted more than 95 percent of these interviews face to face. The Economist Intelligence Unit administered the remainder by telephone.

The sample breakdown was Japan (121), Asia Pacific including India (248), European Union (364), Non European Union (39), North America (290) and South America (68).

Introducing the Enterprise of the Future

These findings — across industries, geographies and organizations of different sizes — paint a surprisingly similar view of the traits that we can believe will be needed for future success.

At its core,

Enterprise of the Future is …

Session IHungry for

Change

CEO’s foresee significant changes ahead. But their confidence in their ability to mange the change is

not nearly as high.

What are the major change drivers?

Who manages change better?

Implications

Accept change as a state of being. It will be the only constant

Hire, position and reward innovators and change leaders

Focus on delivering business outcomes

Operate like a venture capitalist

Session IIInnovative beyond

customer imagination

ImplicationsFind ways to make offerings relevant to new markets and increasingly prosperous consumers

Understand timing and network effects

Connect everyone to the customer. They are the best idea generators

Use technology to anticipate shifts faster than the competition

Session IIIGlobally integrated

ImplicationsIntegrate capabilities globally to differentiate

Build carefully calibrated global business design through Mergers & Acquisitions

Find and eliminate integration barriersGroom global leadersRecognize the importance of social connection within and across organizations

Session IVDisruptive by

nature

ImplicationsThink like an outsiderDraw breakthrough ideas from other

industriesEmpower entrepreneurs (Create

Intrapreneurs)Experiment creativity in the market,

not just in the laboratoryManage today’s business while

experimenting with tomorrow’s model

Types of Business Models

Enterprise model: Specializing and reconfiguring the business to deliver greater value by rethinking what is done in-house and through collaboration

Revenue model: Changing how revenue is generated through new value propositions and new pricing models

Industry model: Redefining an existing industry, moving into a new industry, or creating an entirely new one

Session VGenuine, not

generous

ImplicationsUnderstand Corporate Social Responsibility (CSR) expectations

Inform but do not overwhelmStart with greenInvolve NGO’s as part of the solution

Make work part of making the world a better place

Executive SummaryOrganizations are bombarded by change, and

many are struggling to keep up.CEO s view more demanding customers not as

a threat, but as an opportunity to differentiate.Nearly all CEO s are adapting their business

models, two-thirds are implementing extensive innovations.

CEO s are moving aggressively toward global business designs, deeply changing capabilities and partnering more extensively.

Financial outperformers are making bolder plays.

There is one more attribute evident in CEO’s

responses despite the challenges and issues it

faces.

The Enterprise of the Future is fundamentally

optimistic

What do we learn from this study?Rapid changes are observed in business,

technology and global marketsNeed to reinvent the products & services to

globally integrate and change the way we work with our clients, approach to R & D, workplace practices and way to run a company

Boldest plays pursuing the most global collaborative and disruptive business models innovation are outperforming peers.

Statistical and financial analysis will provide a unique perspective on the future of enterprise.

Proof of any leader’s decisions is in their outcomes

Is something missing?Yes

The Competition!

The Competitive EnvironmentCompetition will emerge from…Similar or substitute products/ servicesFrom organized as well as unorganized

sectorsFrom low cost economies like BRIC (Brazil,

Russia, China & India) and many other emerging economies like South Korea, Taiwan, Malaysia, Thailand and many others

It will necessitate investing in Competitive Intelligence

What is Competitive Intelligence?Competitor Intelligence: This will call for

compiling data on who is your competitor, what are his strengths & weaknesses, how does he react to your strategies and so on. This is called Competitive Reconnaissance

Competitive Intelligence: This will include all factors in the world and changes thereof which can affect your competitiveness.

Few examples include Kargil, 9/11 and 26/11.CI is futuristic, proactive and decision support

system (DSS)

One more thing that will be crucial. That is

developing a Global Strategy.

Remember Strategy is King

Developing a Global StrategyResearching the marketsDefining the target marketsEvaluating the competitionCompetitive positioningStrategic alliancesBrand buildingManufacturing efficiencyFaster innovationsEfficient logistics

Ultimately, what will matter is your

Competitive Advantage

A passive company will soon face Extinction

An adaptive company will manage to Survive

It is only a creative company which can hope for Phenomenal Growth.

This is going to be the Mantra for building your

Enterprise of the Future

Success will be yours

Use, re-use and keep on refining

Thank you&

Best of Luck