PRATIBIMB FINANCE | GENERAL MANAGEMENT | HUMAN RESOURCE | MARKETING | HEALTHCARE | OPERATIONS | SYSTEMS

The Reflection of Management

A Students’ Initiative

December 2013

Pratibimb | December 2013 | 2

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.

“To excel in post-graduate management education, research and practice”.

Means:

By nurturing and developing global wealth creators and leaders.

By continually benchmarking ourselves against best in class institutions.

By fostering continuous learning and reflection, achievement orientation, creative

interdependence and respect for diversity.

Value Bounds:

Holistic concern for ethics, environment and society.

T. A. Pai Management Institute

Manipal, Karnataka

About TAPMI

Our Mission

Pratibimb | December 2013 | 3

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

Director’s

Message

Pratibimb | December 2013 | 4

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 TAPMI’S MONTHLY e-MAGAZINE DECEMBER, 2013

Pratibimb | December 2013 | 5

From the Editor’s Desk

Arun Stephen

Abhineet Rastogi

Bhavnita Nareshkumar

Kannan Venkat

Shubha Prabhu

Aditya Bhat

Lloyd George

Akash Gupta Amruth C

Avni Mooljee Ayon Kumar

Debayan Bhattacharya Gayathri Mohan

Pallavi Prasad Priyam Goyal

Prof. Chowdari Prasad

Dean (PR) & Chairman-Admissions

Prof. Aparna Bhat

Editor in Chief

Marketing & Advertising

Creative & Cover Design

Communications

Operations

Publishing

Sub Editors

Dear Readers

Greetings from Pratibimb!

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.

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.

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

Avni Mooljee

Faculty Advisors

Pratibimb | December 2013 | 6

Contents Integration of CSR and Big Data in Supply chain 7

Tridoshanjay Jain

IKEA’s Market Entry into India 11 by Abhishek Kundu, IIM Bangalore

The Impact of Emerging Technologies on Employee Relation 15

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

Kuotons - The Story of an Outlandish Marketing Strategy That Went Wrong 19

Navajith U M, DoMS IIT Roorkee

mHealth and Its Role in Healthcare Industry 22

Mrinal Jha, Great Lakes Institute of Management, Chennai

Transforming HR for New Business Priorities 25 Pratima Gowsami, Rahul, National Institute of Agricultural Marketing

Pratibimb | December 2013 | 7

With globalization and availability of information and forces like social media have en-

tirely 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 competi-

tion there is more pressure to bring the cost down than ever and therefore how to sus-

tain 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 fac-

tor 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 la-

bour, 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 im-

portant issue for companies to address.

In addition to their own operations companies are also held accountable for their sup-

pliers’ actions and their alignment towards environmental and labour standards. The

existing literature in this domain had suggested factors such as – environment, procure-

ment, 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' opera-

tions 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 ex-

isting supply chain. Every domain requires specific skill and competencies which cannot

be gained or learnt in a short span of time.

Integration of CSR and Big Data

in Supply Chain Tridoshanjay Jain

Pratibimb | December 2013 | 8

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. Compa-

nies can tie up with organizations possessing relevant exper-

tise 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 la-

bour 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 revolution-

ised the industry. But it did not possess the required com-

petencies to tackle the issue of child labour. Hence it’s a win

- win situation for IKEA, UNISEF & for the community.

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 materi-

als from local communities. To achieve sustainable develop-

ment at the ground level Statoil Hydro is trying to provide

opportunities to the local people. The firm also invests in

developing competitive local enterprises.

But there are still many roadblocks. For example in emerg-

ing 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.

Integrating Big Data in Supply Chain Management:

One of the emerging trends in supply chain management is

to leverage the technologies such as Big Data. In the mod-

ern era the consumers hold much power over the market-

ers, we trade data for free goods and services.

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 multi-

plicity 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.

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 tremendous-

ly in volume and complexity which brings in the utility of Big

Data analysis techniques to boost the supply chain’s perfor-

mance.

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.

General Motors is the largest vehicle manufacturing firm

worldwide. Supplier-sourced parts comprise approximately

two-thirds of GM’s automotive costs.

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 cus-

tomers’ driving habits, behaviours, vehicles performance,

Engines’ functioning etc. GM uses this data not only in de-

signing new products but also in forecasting demand across

regions. This also helps GM in Product Call back whenever

required.

Initially General Motors has outsourced data warehousing to

HP but recently the launched its first data centre in Warren,

Michigan.

Visibility

Velocity

Variabil-

ity

Pratibimb | December 2013 | 9

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 han-

dle huge chunk of data.

GM is also involved heavily in developing various vehicle

related APIs. These APIs fall mainly in two categories: Re-

mote APIs and In-Vehicle APIs and hence help GM in col-

lecting the real time data about customers’ driving, Vehicles’

performance etc. With all data in sync GM has also im-

proved its Web site section enabling GM engineers and sup-

pliers to gain immediate access to inventory reports, sched-

ules 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,

seven days a week.

This integration on Big Data to its supply chain has helped

GM in providing Responsible Connectivity, Informed Driving,

Location Services and Telematics convenience to its custom-

ers.

Apart from automobile, retail industry is also thriving on Big

data. Analysing information from transactions in real time

has helped Walmart boost sales by discovering banking er-

rors. When the credit cards used during purchase were

getting an error code on each transaction, it was identified

that there could be something wrong with the issuing au-

thoriser's switcher.

This helps Walmart identify the problem before the issuer

realises they have a problem. This not only benefits the cred-

it card companies, but also the retailer in a major way as the

customer doesn’t have to walk away with making the pur-

chase.

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 tem-

perature.

Further, at a general level, there is a team of analysts at

Tesco that is heavy on maths and analytics, and they use

insights from big data to improve profits and reduce waste at

the supermarket giant. Tesco uses ‘Teradata’ to warehouse

their supply and inventory data.

Therefore on one hand inclusion of corporate social respon-

sibility in supply chain helps companies to build trust in the

supply chain and an environment of collaboration and hence

creating a win-win platform for all the stakeholders, on the

other hand Bog Data helping in improving the efficiency and

effectiveness of overall supply chain. It’s a valuable asset

from a Customer Experience Management (CEM) and Voice

of the Customer (VoC) point of view. But both of these prac-

tices have one thing in common- improving overall customer

satisfaction. Who knows this might be just a tip of an iceberg.

Figure: Ability to use data- as an important issue for SCM managers

Pratibimb | December 2013 | 10

References

Erica Gies (2012). Is This Apple's Nike Moment? Retrieved from: http://www.forbes.com/sites/ericagies/2012/01/20/is-this-

apples-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-on-future-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

Pratibimb | December 2013 | 11

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, Posi-

tioning 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, Bed-

room, Laundry, Lighting, Children’s IKEA, Cooking, Living Room, Outdoor, Decoration,

Dining, Eating, Hallway, IKEA Family Products, Kitchen, Secondary storage, Small stor-

age, 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, ultra-

modern look. Wide aisles and accessorized displays make for a wholesome shopping

experience. Customers can drop off children at a beautifully designed, company-

operated 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.

Pratibimb | December 2013 | 12

IKEA’s Global Positioning

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

sales assistance, furniture that requires assembly and lim-

ited assurance of durability. But this bare-bones value prop-

osition is supplemented with a store environment and ser-

vices that are virtually unheard-of among typical low-end

participants. These have already been described under the

head ‘IKEA’s global offerings’.

The Global IKEA brand

Globally IKEA is a ‘LIFESTYLE BRAND’. The brand stands for a

lifestyle that customers around the world embrace as a sig-

nal that they've arrived, that they have good taste and rec-

ognize 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.

Points of Parity and Points of Difference

Points of Parity Category Points of Parity (POP) include cus-

tomer’s basic requirements from furniture in terms of func-

tionality (for example a bed should provide sound sleep, a

sofa should provide comfortable seating etc.). Formal Prod-

uct Warranties can also be seen as a Category POP if one

considers organized furniture retail. Limited attention can be

paid to Competitive POP’s since IKEA’s competition in India

is highly fragmented.

Points of Difference Points of Difference for IKEA would in-

clude:

i. Superior functionality through Swedish design at low pric-

es,

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

Airy, ultra-modern look,

Wide aisles and accessorized displays,

In-store cafes, and

In-store child care.

Recommendations

The following recommendations have been based on market

research and rigorous analysis:

Target Consumer

Target Market Segment The recommended target market

segment for IKEA in India is:

‘Young, aged 22-35 years old, urban, upwardly mobile and

belonging to the Consuming Class but not wealthy.’

Consumer Profile The profile of consumers likely to be most

enthusiastic about buying IKEA is provided in the table be-

low.

IKEA’s modern and stylish furniture offered at low cost, self-

service model and extended store hours are in alignment

with the needs and wants of this market segment. The in-

store child care service is in alignment with the needs of

young couples with children. Possible pain-points such as

the requirement for assembly, relatively lower durability and

limited in-store sales assistance are thought to exclude older

as well as semi-urban and urban consumers who are unlikely

to overcome entrenched thinking and behavior with regard

to the purchase of furniture.

The target market segment clearly satisfies the five Criteria

for Segmentation: Measurable, Substantial, Accessible,

Differentiable and Actionable.

Customer Value Proposition

The Indian consumer mindset, which indicates that the tar-

get consumer holds functionality as the most important pur-

chase criterion, necessitates an adaptation of in IKEA’s glob-

al 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 cup-

boards), 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.

Demographics

Age 22-35 years

Education Well-educated

Income Belongs to the

‘Consuming Class’ Geographic Urban

Behavioral Functionality seeking

Possible segment de-

scriptor Young, urban, upwardly

mobile consumer

Pratibimb | December 2013 | 13

. 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 Swe-

dish 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:

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 en-

couraging them to redecorate more often, in line with the

lower durability of its products.

ii. Lifestyle branding can help IKEA address the likely chal-

lenge 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.

Building a lifestyle brand is likely to take time but IKEA can

help speed up the process through its communication strat-

egy. This is addressed in the recommendation on

‘Communication Strategy’ below.

Competitive Stance

The fragmented nature of the Indian furniture and furnish-

ings market where there is no clear market leader, com-

bined 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

communicate its Customer Value Proposition, Posi-

tioning and Brand to its consumers,

address pain-points, especially the one on lower du-

rability 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 cus-

tomers 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 commu-

nication strategy alone).

The global IKEA price, translated in PPP terms, has been cal-

culated in the above table. It can be seen that the prices are

in similar ranges as other products available in Indian mar-

ket. 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 com-

munication strategies for two different phases of its market

entry: a) Launch Phase, and b) Post-Launch

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 mar-

keting’ (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.).

b. Post-Launch

Post the initial launch phase, the company’s Value Proposi-

tion would be obvious to any customer visiting its store. At

this time IKEA should shift focus to

addressing the biggest pain-point of lower durability

by encouraging consumers to redecorate their homes

more often,

emphasizing the superior functionality offered by

Swedish design, in line with determined customer

preferences, and

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).

Pratibimb | December 2013 | 14

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

Pratibimb | December 2013 | 15

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 tradition-

al 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 inter-

vention, 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 rela-

tions in organizations. Employee relations constitute two broader aspects. One, the

relationship between employers and employees, and second, the relationship of em-

ployees 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 rela-

tions (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 employ-

ees 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) moni-

toring 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 im-

portant influences of technology which make the practice of employee relations in-

creasingly complex and seemingly easy at the same time.

The Impact of Emerging Technologies on

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

Pratibimb | December 2013 | 16

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 redun-

dant. This impact is clearly highlighted when we look at the

example of Hemant Dua. This is a definite reason for con-

cern and known as one of the most feared impact of tech-

nology. 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, “Increase in automation has

lowered demand for labor.Newer technologies have come

and workforce has moved out in large numbers.”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 technolo-

gies. A perfect example of this phenomenon is the post lib-

eralization 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

sector contributed 7.5% to our country’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 multi-

skilled and have a flexible mindset. With 65% of Indian popu-

lation 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 organ-

ization using audio/video conferencing across locations, con-

necting employees to experts using structured online train-

ing programs which reduce the time lag between demand

Pratibimb | December 2013 | 17

and availability. Tools such as GoToMeeting have not only

transformed the way meetings are conducted in organiza-

tions 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 packag-

es. Today, we are witnessing jobs which did not exist yester-

day. 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 experi-

ence of traditional marketing with the new technology phe-

nomenon such as web analytics and search engine optimiza-

tion. 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 wit-

nessed and participated in the advancement of emerging

technologies that we have today. A research paper pub-

lished by Elon Journal of Undergraduate research in commu-

nications 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 sys-

tems 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 ca-

reer planning are disruptive trends and help in creating a

coveted employment brand and hence stronger employee

relations.

Stronger employee relations are also based on communica-

tion. 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 tech-

nology in the last decade. E-mail, the most prevalent com-

munication medium has seen a boost. With brands like IBM,

Apple and Microsoft rolling out newer versions of their e-

mails clients Lotus, Mail and Outlook respectively, the inte-

gration 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 tech-

nology 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 ses-

sions 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 dis-

semination has become quick and unrestricted, and it is diffi-

cult to control even the unnecessary or malicious communi-

cation. Most of the organizations are struggling with filtering

the information for dissemination. So, the technology has

impacted the communication in three ways, a) the communi-

cation 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 employ-

ee 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 be-

come a source of concern and frustration for the employees.

Here we observe an adverse effect of technology of employ-

ee relations. At the same time, technologies are also great

levelers that ensure fairness and transparency. An ATM ma-

chine for example wouldn’t prefer any person based on his/

her designation, social stature or net worth, whereas, a hu-

man 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 technolo-

gies on the core objectives of employee relations such as job

opportunities/manpower requirements, emerging skill gap,

higher pay packages, changing expectations of the work-

force, mediums and speed of communication, and overem-

phasis on use of technology. We can be rest assured that

technology will continue to impact the businesses,

Pratibimb | December 2013 | 18

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 assess-

es the acceptance of technology by taking employee behavior into consideration. Bank of Baroda successfully used this ap-

proach 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 em-

ployees 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

Pratibimb | December 2013 | 19

There are two things which can influence the buy-

ing decisions of Indians – ‘Discounts’ and ‘Getting

something free with a product’. Koutons retail

India was one such brand which was reaping ben-

efits based on the first strategy -Heavy dis-

counting throughout the year.

The story of Koutons is that of an apparel manufacturing company that forward inte-

grated 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 strat-

egy?

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 un-

like 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 reap-

ing 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 provid-

ed 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.

Kuotons - The Story of an Outlandish

Marketing Strategy that went Wrong

Navajith U M, DoMS IIT Roorkee

Pratibimb | December 2013 | 20

Then one has to wonder why they followed the heavy dis-

counting strategy. The strategy worked initially and gave

them huge revenues. But gradually the consumer got en-

lightened. The feel good factor which the heavy discounting

provided slowly diminished. Moreover, venturing into Kids

and Ladies segment actually resulted in brand dilution. Cus-

tomers started questioning the high MRPs and the hefty dis-

counts 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).

The failure of Koutons is a result of non-compliance of their

positioning and marketing strategy, coupled with uncon-

trolled growth and expansion. Koutons should have resorted

to normal and economic pricing instead of inflating the price

and then offering high discounts. Though the Indian consum-

ers 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

strategy followed by Koutons took a major hit then, once the

perceived value of Koutons products came down.

At this point, Koutons should have attempted a different

strategy, tried for re-positioning the brand or even re-

branding 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 mon-

ey as long term and short term debts, piled-up their inven-

tories, 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 knock-

out 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 func-

tioning outlets of Koutons. The company is presently trying

to keep its head above water and has changed its board of

directors recently. Anyhow in coming days, Koutons will be

remembered for its outlandish marketing strategy which

went totally wrong and eventually led to its downfall.

Koutons Retail Business Model

(Source: ICICIdirect Research, 2008)

Diagrams in the next page.

Pratibimb | December 2013 | 21

Stock price variation of Koutons Retail India Ltd.

(Source: economictimes.com)

Yearly net sales of Koutons Retail India Ltd.

(Data: economictimes.com)

Yearly Profit After Tax (PAT) of Koutons Retail India Ltd.

(Data: economictimes.com)

References

http:// economictimes.indiatimes.com

http://content.icicidirect.com/mailimages/Koutons%

20Retail.pdf

http://www.fashionunited.in

http://www.sebi.gov.in/dp/koutonsdraft.pdf

http://www.nseindia.com/content/corporate/

eq_KOUTONS_base.pdf

Pratibimb | December 2013 | 22

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 achiev-

ing the intended goal is termed as mHealth. Advanced mobile devices and hosted mo-

bile 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 trans-

form 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, pay-

ers & providers has undergone a dramatic transformation through this technology.

Key Drivers for mHealth

It requires a synergy among various technological tools such as smart mobility,

cloud computing, social networking and dig data analytics all working together.

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 compa-

nies

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

Privacy & Security Issues:With increasing amount of data sharing and connectivi-

ty among doctor, patients & health care service providers, there is issue of secu-

rity & privacy coming to surface. Apprehension & reluctance to provide accurate

data fearing misuse of data is causing a slow adoption rate to mHealth technolo-

gy. The manageability & confidentiality becomes a key challenge to address in

implementation of mHealth.

Limited Electronic Health Information : There is lack of available electronic infor-

mation for large segment of population. Most of the health records are main-

tained manually in health care service especially in rural & suburban areas.

mHealth and its Role in

the Healthcare Industry

Mrinal Jha, Great Lakes Institute of Management, Chennai

Pratibimb | December 2013 | 23

mHealth Model

To provide intended benefit of mHealth to the underprivi-

leged & lower strata of society at a low cost requires phase

wise conversion of the historical manual health data to elec-

tronic form and making them available at a central reposito-

ry.

Behavioral Constraint from Healthcare Industry : Wide-

spread acceptability of mHealth requires a modification in

the outlook of stakeholders of Healthcare industry. The In-

dustry needs to undergo a behavioral change & have to de-

part 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.

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, ad-

vancements 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 technolo-

gy 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 de-

livery system for the rural population.

Pratibimb | December 2013 | 24

Technology Enabler Patient Impact Emerging mHealth Use

Smart Mobility Communicate with doctors & hospitals

Manage & Monitor chronic Disease

Access health related information

China is expected to become the biggest

mobile health market by 2017, with diag-

nosing & monitoring applications reach-

ing out to the wider population.

Cloud Computing Providing heavyweight health care ser-

vices & information through light-

weight mobile applications

Reliable & Secure storage of patient infor-

mation with personalized care.

Around 600 patients of Radiological Soci-

ety of

North America’s Image Share

Project has reported cloud computing the

more suitable & efficient way to store &

provide access to their medical infor-

mation.

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 net-

working 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 frame-

work for privacy to isolate the patient

identification from data it analyses to

track pattern of care and outcomes.

Technology Innovation and Impact on patients:

Future of mHealth

Public-Private sector Integration is essential for suc-

cessful mHealth implementation. Government & Reg-

ulatory bodies have access to network & infrastruc-

ture necessary for developing the framework of the

mHealth whereas Private sector has most innovative

state-of-the-art technical solution for public health

care challenges. Working in collaboration of Public-

private sector will bring about the intended goal of

wider reach & cost efficient system.

Disruptive Innovations will be needed at continuous

intervals to improve the efficiency & service experi-

ence of mHealth. The most promising innovation

should be quickly deployed & implemented on pilot

project. Successful results from pilot project should

lead to wider application of innovation in the system.

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 encour-

age 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

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

Z. Ahmad, “mHealth: A Paradigm Shift in Delivery of Healthcare,” PIMA Biennial Convention, 2012.

R. Wootton, N. G. Patil, R. E. Scott and K. Ho, “Tele- health in the Developing World,” Royal Society of Medi-cine Press, IDRC, 2009. ISBN 978-1-85315-784

“MHealth Education: Harnessing the Mobile Revolution to Bridge the Health Education & Training Gap in Developing Countries,” MHealthEd, Irish Global Health Education Inno-vation Institute (IHEED), June 2011. http://www.mobileactive.org/files/file_uploads/iheed_report_updates.pdf

The Boston Consulting Group & Telenor Group, “The Socio-Economic Impact of Mobile Health,” April 2012.

UN Foundation, “mHealth for Development: The Oppor- tunity of Mobile Technology for Healthcare in the De-veloping World,” 2009. http://unpan1.un.org/intradoc/groups/public/documents/unpan/unpan037268.pdf

World Health Organization (WHO), “Global Health Ob- servatory Data Repository.” http://apps.who.int/gho/data/node.main.475

Pratibimb | December 2013 | 25

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 responsi-

bility 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 oppor-

tunities to find out the business we have a tendency to support. To participate and con-

tribute in business discussions, HR business partners should not solely guarantee swish

systems and processes; however think about the strategic impacts of talent and organi-

zation decisions. It’s all concerning making and delivering value aligned with the organi-

zation’s objectives. HR leaders should initial be strategic business partners simply hap-

pen 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 proce-

dures 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.

Transforming HR for new Business

Priorities

Pratima Gowsami, Rahul, National Institute of Agricultural Marketing

Pratibimb | December 2013 | 26

models. The goal is to make a typical world HR delivery

framework which will be tailored to the stress of native mar-

kets and business units – a mass customization approach

that gives differentiated services to varied segments among

the business.

Cloud-based HR solutions are laying birth the muse for real

time HR analytics and broad-based benchmarking. This ad-

vance in technology represents a seismic shift within the

ability of HR to maneuver from historical coverage to devel-

oping prognostic capabilities.

Not solely is that the design of HR transformation dynamic;

the sequencing of its implementation is changing yet. His-

torically, organizations launched HR transformation efforts

in established, giant markets like the North American coun-

try and kingdom. Today, firms are introducing HR transfor-

mation in markets that provide the best business price, as

well as rising markets, and building the design out from

there. This could mean prioritizing business impact over

short price savings.

What’s driving this trend?

Keeping pace with growth, rise in business performance

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

Ancient HR transformation was driven by its ability to get

cost-saving solutions. That mandate has shifted. Today,

firms wish HR transformation refocused on the foremost

necessary growth and business opportunities. To giant or-

ganizations, the selection of whether or not to remodel HR

to eke out savings, or to take a position during a climbable

and versatile platform that permits the corporate to pene-

trate the booming Asian markets, is obvious.

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 & ac-

quisitionsand joint ventures is changing into an essential HR

HR

mission. This demands HR leaders deliver climbable, target-

ed, solutions to organizations, usually in far-flung regions.

must modify and accelerate these business methods, not

slow them down.

Enabling technologies

New technologies are providing HR leaders with innovative

tools to visualize, set up and execute transformation solu-

tions. Cloud, social, mobile, collaboration and analytics are

quickly changing into the norm, not optional features and

functionality. Current and prospective workers in each ma-

ture and rising market are utilizing social and mobile technol-

ogies to act with the organization and among it. Analytic

tools are manufacturing new insights gleaned from “big in-

formation,” resulting in higher decision-making for business

strategy and transformation preparation choices.

Practical implications

Talent-led methods: Distinctive and developing consequent

generation of company leaders has become a transparent

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

match them to the correct development opportunities across

the corporate and in key markets. Talent management meth-

ods 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

aligned talent to assist win it.

Emerging market-led methods: Corporations are developing

HR capabilities to match their dynamic, world presence. Tal-

ent leaders are rising world quality programs to maneuver

prime talent round the world a lot of expeditiously and simp-

ly. Firms are encouraging the surroundings that permit world

and virtual groups to collaborate and thrive and that they are

coming up with new, climbable staffing models which will

flexibly draw upon contingency staff or use outsourcing as

required. Underpinning these HR efforts may be a deep un-

derstanding of the markets and why they are key to the busi-

ness strategy. HR leaders perceive however the business

surroundings and strategy take issue in every market, have

Pratibimb | December 2013 | 27

determined what drives those distinctions, and use those

insights to make the solutions essential to the company’s

success. A global insurance firm with over 60,000 employees

in more than 80 countries realized that its HR organization

was too expensive and not fully causative to business strate-

gy. About 180 completely different HR and payroll systems

served this world manpower. Given the dimensions of the

challenge, the corporate determined to launch its world HR

transformation program in rising Asian markets. This strate-

gy enabled the corporate to target smaller, strategic parts of

the business, permitting it to realize quick wins and build

vital momentum. Though the scope was advanced as well as

case management technology, new HR technology, and new

outsourced payrolls, the initial pilot programs were com-

plete in but six months. Since then, the answer has been

deployed to over 30 countries with 23,000 employees.

Mergers and Acquisition led methods: Leading firms read

this method as an opportunity not solely to integrate two or

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 inte-

grated organization which will facilitate the business win its

growth goals.

In the wake of an unsuccessful acquisition, a worldwide tele-

communications company launched a significant cost-cutting

initiative which uncovered serious challenges to its HR sys-

tems. The company’s existing HR technology platform was

expensive, non-complaint in essential areas, and now not

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 pro-

gram that enclosed advantages administration outsourcing,

multi-yearHR systems prioritization, consolidation and im-

provement. The result is the reduced prices these days and

also the elimination of sudden prices within the future.

HR organization-led methods: As HR leaders target key busi-

ness priorities, they're additionally centered on building out

core HR operations, as well as shared service centers and

centers of experience. This target business priority is shining

the sunshine as bright as ever on the role of HR business

partners. Implementing an efficient business-partnering

model may be efficient thanks to accelerate the evolution of

HR functions. HR Business Partners match deep data of the

business with deep data of wherever to use services and

solutions. Chief Human Resources Officer at leading organi-

zations are establishing business metrics for his or her Busi-

ness Partners, not merely HR metrics. This implies with suc-

cess desegregation acquisitions to enhance performance;

guarantee firms have the correct talent to drive innovation;

and serving to firms operate effectively in rising markets by

clearing potential roadblocks like tax a worldwide manufac-

turer Janus-faced fierce competition in home and new mar-

kets, beside new leadership and a brand new business strate-

gy. Company leadership turned to HR to review and redefine

the company’s world HR and governance structures to create

them a lot of centered on the organization’s strategic priori-

ties. The new HR structure depends on HR Business Partners

to guide consequent stage of HR transformation, involving

systems replacement and a spotlight on talent analytics,

learning and leadership development.

Lessons from the front lines

Start a new conversation with the board centered on busi-

ness 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

time or standing up a brand new, climbable HR perform be-

cause the company advances into new markets? Marketing

enhancements and upgrades to current systems is not any

longer spare. In creating the case for HR transformation, tar-

get strategic outcomes, not technologies and ways.

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 chal-

lenge, HR systems, processes and programs should be re-

peatable, particularly for business events that are possible to

recur, like new market entry, mergers & acquisitions and

world quality. Be ready to run quite one play. HR transfor-

mation can't be one-dimensional. An organization might

have a payroll risk issue that must be addressed within the

North American country, whereas increasing in China.

Meeting these demands might need drawing from quite one

playbook, combining both the rising market-led strategy and

an HR organization-led strategy issues or talent gaps.

Pratibimb | December 2013 | 28

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