EDITOR’S LETTER “"With Evolution, Changes happen in every part of the world every day, every time."” Welcome to the seventeenth edition of “LAKSHYA”, our monthly supplement designed for people who dare to think above the average and believe in connecting the dots. In an age where technology has taken over every sphere, information is abundant and data is omnipresent, we have planned to bring to you a collection of thoughtfully created and carefully crafted pieces of work by some bright aspiring minds of ICFAI Business School, Hyderabad on the current trends and receiving close review in the field of Operations Management and their relevance in different industries. From the ninth edition, we created a new segment, ‘The Corporate Angle’ where article will be featured from prominent business leaders which will enlighten minds of young managers and business enthusiasts. IBS Hyderabad and Club Kaizen express a sign of gratitude to all corporate leaders for taking out time and scripting their thoughts for our magazine. We look forward to providing you with some valuable insights and inculcate the passion for reading. We hope that you enjoy this issue and do let us know if there are any topics you’d look forward to be covered in upcoming editions. Please write to us and become a part of this discussion Email ID: kaizenclub.ibs@gmail.com
An Initiative by:
MAHESH HIREMATH JOINT SECRETARY – KORE Kaizen – IBS Hyderabad Batch 2018-20
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CONTENTS
From the Mentor’s Desk
03
What Changes When a Startup Transforms Into a Corporation?
04
Blockchain to Counterfeit Generic Medicine
07
Overview on Business Sustainability Plan
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Is Augmented Reality the next future?
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From the Mentor’s Desk
In the era of competition, it is imperative for students to be prepared for the ever-changing business environment. Knowledge creation plays an important role to learn to tackle the dynamic nature of business. I appreciate and congratulate the initiative of club KAIZEN for bridging the gap between corporate world and academia through LAKSHYA which is an excellent platform where industry practitioners, academicians and researchers can share their knowledge and experience, acting as a beacon guiding students to reach their goal. My best wishes to club KAIZEN in their endeavour of knowledge creation through LAKSHYA.
Nishit Kumar Srivastava Mentor, Club Kaizen
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The Corporate Angle What Changes When a Startup Transforms Into a Corporation? Mr. Pranav Jain
Assistant Manager, TrucksDekho.com
While you assemble the required tactics to escalate; customer type, management style and fast-response teams will substantially differ from your current stance; which are quintessential for you to uphold. A few days ago, me and a friend of mine – Mrs. Sharma, who is also a founder of a startup in the automotive telematics space, were discussing the risks involved while going from 1 to n. Her company had started moving towards mainstream buyers and the numbers were taking a major upturn. Her question seemed very interesting as I had read about a number of startup founders being “promoted” to the chairman’s position once the company started becoming a big business. A new CEO would eventually be hired, usually from a “more” process driven company to take his place. In a nutshell, the question that required attention was – What changes when a startup transforms into a corporation? Let’s look at the answers. Shift in the Type of Customer Thought it might seem linear and simple, but a firm’s transformation from a small startup to a larger company involves a lot more managerial efforts than just administering sales. The growing numbers require embracing an extensive customer base beyond the early adopters. Geoffrey Moore, a management consultant, in his seminal work on “Technology adoption life cycle” has elaborated on how early stage ventures need to “cross the chasm” and move towards mainstream market. As Mrs. Sharma’s startup aligns its minimum viable product and starts testing its model in the market, it meets the first set of customers called early adopters. These customers are technology enthusiasts and visionaries who believe in the potential of the product. Not only are they interested in an unfinished product, these set of customers are even willing to assemble the product based on their needs. These guys become evangelists of the product and help market it in their ecosystems. Typically, quality early adopters bring great value to a firm as they guide the founders towards the mainstream customers.
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Technology Adoption Life Cycle Curve by Geoffrey Moore Would you like to read more about Management Innovation The next sets of customers, the mainstream market, are high volume buyers that represent a real demand. This set will bring in the required sales numbers and scale to Mrs. Sharma’s company. These people are extremely practical in their buying behavior and compare you with the existing competition or alternatives before indulging further. Once you display a clear value proposal vis-à-vis the ownership costs, your product is good to go. But having said that, these buyers are extremely demanding and will push you to innovate and calibrate as you move towards a bigger pie of their attention. The Evolving Style of Management As Mrs. Sharma’s company moves from early adoption to mainstream market, her entrepreneurial management style needs to be succeeded, by a process oriented management style that brings in the necessary culture and organizational structure. But this step should not be confused with the ideology that everything needs to “go by the books.” Mainstream market has its own set of uncertainty and an innovative ethos will always follow suit. Though both, Startup chaos and corporate rigidity, are very important in their scope of time for company building, but the objective, here or rather now, is to create an organization that land exactly in between the chaos and the rigidity to bring predictable and repeatable success. Hence to bring in the optimized agility with a much larger group of people, it is imperative to embrace a process driven management that promotes innovation and synergy among departments bridging any bureaucratic outsets. Building Fast-Response Teams While dealing with early adopters, Mrs. Sharma had created functional departments that would respond to customers, competitors and market opportunities. Moving ahead towards mainstream customers, she would have to turn those departments into fast-response teams to implement decisions consistently faster that would lead to a tremendous, often decisive, advantage. And to do that, her company needs to follow an agile-decentralized decision making management system. Since, in most cases, the employees who are at the point of decision understand the true situation better than the “executive leader,” it is dangerous for a small company to go for a formal, upward centralized decision making process. Speed, here, would mean reducing the 5|K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
time needed to make decisions and to incorporate feedback. And the aim would be to be faster than your competitors or cash burn rate, taking real advantage of timing. Source: This column first appeared in http://www.entrepreneur.com / Entrepreneur India. To read the author’s previous columns, please go to https://www.entrepreneur.com/author/pranav-jain About the author: The columnist, a consultant, is an author at http://www.entrepreneur.com, https://yourstory.com/ & http://www.businessworld.in/ Linkedin: http://www.linkedin.com/in/pranav-jain-04a1527b Twitter: @jainpranav94
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Blockchain to Counterfeit Generic Medicine Aditi Tiwari (MBA 2019-21)
The Indian pharmaceutical industry is the third biggest on the planet as far as volume, representing 10 percent of the world's creation. With fares to in excess of 200 nations, India is the world head in the generation of nonexclusive medications and antibodies. The awful news anyway is, as indicated by the World Health Organization (WHO), 35 percent of phony medications sold everywhere throughout the world originate from India. The issue of phony and fake medications inside the production network costs the pharma business billions. Additional upsetting is the way that it puts patients at more serious hazard, especially in creating countries where the WHO gauges that one of every 10 restorative items (For e.g. pills, immunizations, and symptomatic packs) is inadequate or counterfeit. All around, in excess of a million people kick the bucket each year in the wake of devouring fake prescriptions. Medication producers are battling to locate a viable method to safely, straightforwardly, and quickly track the root of these medications; or access information required to battle fake medication deals. In its interest to increase proceeded with trust in sent out pharmaceuticals from India, the Government of India is taking a gander at a component to get continuous perceivability into all medications created and traded from the nation. It additionally needs to give patients and controllers around the world, the way to confirm the validity of medications made in India. Proliferation of Generic medicines: Before we go any further, it is basic to see how fake medications figure out how to discover their way into the production network. There are different, unsubstantiated and unbound purposes of contact, any of which, could be a section point for deadly phony medications. • Complex worldwide inventory affixes make it harder to decide the inception of the medications or medication fixings.
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• Before drugs land at their last goal, as a general rule, they go through different exchanging organizations who don't check quality • One or a few players in the store network might be degenerate: Contaminating, subbing or mis-marking items in the inventory network • The maker probably won't know that the fixings perhaps originated from an uncertified source • Ingredient or medication makers present effectively as real pharmaceutical organizations with the assistance of bogus administrative work. Problem: With such a significant number of purposes of passage and no vigorous or secure framework set up to track the medication production network, represents a major test. The obstacles to the present store network framework can be in any way similar to: • Absence of brought together and interoperable marking and distinguishing pieces of proof standard • Soloed, divided and dark store network framework. There is no unmistakable method to follow an item's adventure over the inventory network that can uncover the genuine cause and touch points • Improper virus chain the executives and observing • Multiple difference in hands, including bundling and coordination supplier, as the medications are given off between different stages, which could be potential purposes of passage for misleading medications • Different makers embracing various frameworks. This prompts the requirement for wholesalers and affiliates to keep up various sorts of arrangements over their store network frameworks, which can cause a chaos in the information or conveyance and extreme hazard to a purchaser The Answer - Blockchain Understanding blockchain: In the event that this innovation is so intricate, why call it "blockchain?" At its most essential level, blockchain is truly only a chain of squares, however not in the customary feeling of those words. At the point when we state the words "square" and "chain" in this specific situation, we are really discussing advanced data (the "square") put away in an open database (the "chain"). "Squares" on the blockchain are comprised of advanced snippets of data. In particular, they have three sections: Squares store data that recognizes them from different squares. Much like you and I have names to recognize us from each other, each square stores an exceptional code called a "hash" that enables us to disclose to it separated from each other square. Suppose you made your binge spend buy on Amazon, however while it's in travel, you 8|K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
choose you can't avoid and require a subsequent one. Despite the fact that the subtleties of your new exchange would look about indistinguishable from your prior buy, we can in any case distinguish the squares as a result of their one of a kind codes. While the square in the model above is being utilized to store a solitary buy from Amazon, the fact of the matter is somewhat unique. A solitary square on the blockchain can really put away to 1 MB of information. Contingent upon the size of the exchanges, that implies a solitary square can house two or three thousand exchanges under one rooftop. How does it solve the problem? A blockchain based medication production network will rely upon having all the necessary elements like the producer, wholesalers (3PL), and drug specialist or emergency clinic on a believed system fuelled by blockchain. An obvious store network, which incorporates all partners like providers, sellers, wholesalers and accomplices, is made when medication bottles are marked with sequential numbers and bundles containing these sequential numbers are checked and recorded on the blockchain at each point along its adventure from processing plant to drug store. Truth be told, in any event, fabricating inputs, similar to concoction fixings can be followed and connected to the completed items. Moreover, the blockchain can archive basic subtleties like area and temperature from IoT gadgets appended to the bundles, making the voyage obvious to every concerned element, while significantly lessening the probability of record altering. At the point when an item travels through the store network going through different hands, every exchange would be caught, recording a lasting history of the item. Directly from the purpose of production to deal, this framework fueled by blockchain, will have an advanced record of each difference close by. This would empower an approach to profoundly decrease time delays, expanded expenses, and human blunder that plague exchanges today, and even help discover the glitch in the framework that permits fake medications channel in. The production network is made straightforward, secure, decentralized and certain other than connecting escape clauses the inventory of credible prescriptions and cutting costs associated with identifying defective zones. This could likewise be reached out to patients expending drugs. A few organizations are taking a shot at gadgets that can be attached to a patient's computerized personality and report utilization to the prescriber or insurance agency through inserted remote gadgets associated with the blockchain. This can assist alert with appropriating parties when a patient is utilizing more drug than endorsed or when somebody neglects to take significant prescription on plan, provoking mediation. Government and Industry Collaboration: Indian approach think-tank Niti Aayog accepts blockchain is one of the responses to the forging troubles of the nation's pharmaceutical industry. They think finding a way to move 9|K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
the total, extensive stock of medications produced and devoured in India onto a blockchainfueled framework, can assistant disposal of channels for fake and deceptive medications. In this activity, private players have a focal task to carry out. Innovation and industry pioneers need to join forces with the administration to stem the rising flood of phony medications. The medication forging exchange has gotten more rewarding than the opiates business. Innovation suppliers can utilize their assets, skill and advancements to build up a blockchain-controlled answer for dispose of the issue. Not simply creating countries, even created economies are confronting this emergency of fake medications attributable to the ubiquity of online drug stores. Notwithstanding the administration and innovative work (R&D) spend; a straightforward and secure inventory network is basic for conveying drug equations to ensure lives. By embracing blockchain, pharmaceutical store network substances can significantly improve their proficiency and spread undeniable meds over the planet. Normally, with the expanding accessibility of unique medications, patients will remain to pick up as to lessening dangers, too have the option to freely confirm the legitimacy of items.
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Overview on Business Sustainability Plan K N V R L G RAHUL (MBA 2019-21)
Business Sustainability Plan (BSP) is developed an organization to achieve the goals that create financial, society favouring and environmental sustainability. A business impacts economies and wealth, so it is in the best interests of the community, the business owner and the customer to take these steps towards sustainability. Reasons to Build a Sustainable Business: • Making the case for a sustainable business is simple: an environmentally friendly business can be a profitable one. • You can decrease your business’s negative impact on the environment and potentially save money. • Only take it from the many companies around the world that generate revenue from sustainable products or services of at least $1 billion a year. Such businesses make everything from burritos to sports cars. Collectively, these firms produce more than $100 billion in annual revenue from their green product lines alone, and they are able to outperform rivals by almost 12 percent annually. • Through a small business sustainability strategy, small businesses can quickly adapt these activities and apply them in their own organizations. • From saving money and promoting public health to improving public relations, the benefits of building a sustainable business might surprise you. Principles of BSP: Diversity: To be resilient, the company needs a variety of resources, assets and investments. Although diverse investments are seen to draw on capital and consume managerial energy, the 11|K A I Z E N ’ S O P E R A T I O N S & R E S E A R C H E N T I T Y
enterprise may be exposed to higher risks by a single line of business, specific sources of revenue, or people with similar mindsets. Organizations can't just stick to the knitting anymore. Modularity: Matrixed organizations are often seen to promote the flow of information. These organizations, however, are not just resource-intensive, they expose the entire organization to shocks as they reverberate through the organization. Organizations need to be less interdependent, and focus on modularity, so they can be insulated from shocks. Openness: Resilient companies need to know what's happening outside their borders. Some businesses can see challenges on the horizon. They track the external environment on an ongoing basis and create examples of possible futures. Not only do they expect to react to these potential futures, but they also help shape them. The link between the company and the outside sector and the natural environment is critical, permeable and malevolent. Slack resources: Slack resources are often seen as expensive and wasteful in an age of just-in-time growth. Innovation and adaptation, however, require financial and creative investment as well as space to change direction. Organizations that can ride hurricanes need to give a little more time to accommodate new thinking concepts, situations, and changes. Matching cycles: Organizations also talk about performance management and getting more out of less. Yet, this mindset places companies on a treadmill, doing the same thing quicker every day — and it has them bumping against the constraints of capital. Resilient companies think of cyclical processes rather than constant growth: growth and recession cycles, output cycles, and customer purchasing trends cycles. Knowing the market and environment cycles would allow the organization to synchronize meaningfully with them and not overreact to what is likely to be just a process. Such concepts must be developed and tested. But they provide a starting point for dialog for a sustainability-based business model of the 21st century. Supporting Bodies: The Sustainability Consortium (TSC): A multinational non-profit committed to changing the CPG industry through a metrics-driven approach based on science.
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World Wildlife Fund (WWF): The leading conservation organization in the world provides companies with 50+ performance indicators to determine supply chain risks. The Sustainability Accounting Standards Board (SASB): a non-profit that offers material information on sustainability results to investors across 10 industries. CDP: A non-profit, formerly known as the Carbon Disclosure Project, runs the global disclosure system that allows companies, cities, states and regions to measure and manage the impact on the environment. Global Reporting Initiative (GRI): An international non-profit organization that helps businesses and governments around the world understand their effect on sustainability and how positive change can be made.
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Is Augmented Reality the next future? Varun Viswanathan (MBA 2019-21)
The phrase “Fourth Industrial Revolution�, which was introduced by Klaus Schwab, the executive chairman of the World Economic Forum, pointed out the transformation of the industries towards automation and data exchange in manufacturing technologies which included cyber-physical systems (CPS), the internet of things (IoT), industrial internet of things (IIOT), cloud computing, cognitive computing, artificial intelligence, etc. One of the major component which has taken a leap in this era is the Augmented Reality. What is Augmented Reality (AR)? It is an interactive experience of a real world environment enhanced by computer generated perceptual information across multiple sensory modalities like visual, auditory, haptic, somatosensory and olfactory. The basic functionality is to provide a real world experience to a user virtually, by combining real-time interaction and accurate 3D registration of virtual and real objects. So, is this a new step to the digital world? AR, has its roots in providing a real world experience in entertainment platforms like Snapchat, Mobile games, Play station games, etc. But, as the technology exponentially improved, it became an integral part in industries in providing business solutions. AR integrated in almost every industry starting from healthcare to manufacturing. It is playing a major role in providing business solutions that help the industry in making the least amount of errors that would help the company is boosting up its operational activities with least chance for making mistakes. The major industries which are benefitting with the breakthrough of this cutting edge technology are:
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1. Education
In education industry, AR technology made a huge difference by engaging the users and by making the concepts interactive. Incorporating gaming elements into the classroom, AR provides a great experience for students in understanding the concepts and visualizing the same when it comes to practical use. This makes explanation easy for teachers as they are able to give a detailed information of the concepts. Not only in schools, but also engineering and medical colleges AR hel[s in providing assistance in simplifying the concepts of complex models. 2. Healthcare
One of the majorly benefitted industry is the healthcare. Surgeons are being provided training through AR which helps them improve their skills in virtual environment before engaging in the real world situations. This assists them in honing their skills and improves their confidence during emergency situations. It helps enhance their precision and success ratios in treatment of ailments. AR also helps in designing the medical equipments like MRI, CT which diagnose accurate problems and assist the doctors in prescribing the right medication to the patients. 3. Furniture
The furniture industry faced a major problem in selling large items as the customers were unsure of whether the item would fit in their home as judging the required space for the items are unpredictable. AR assists them in displaying the item through AR supported devices. For sellers, this helps in eliminating, the return of goods from their customers and helps increase their business operations. 4. Automobile
In automobile industry, AR helps, assisting in manufacturing, designing and also in servicing. Designing of automobile parts started becoming easier as designers were able to easily visualize and develop the components through this technology. In manufacturing, AR helped in spotting manufacturing errors which increased the productivity and also reduced the cost of fixing those errors. Servicing of vehicles became easier as AR helped the technicians to eliminate the trial and error method to identify the problems and accelerated the process for faster and efficient service. All these sectors witnessed a boost in their performance and started implementing in their respective sectors on a large scale. But there were some disadvantages in the process of implementing this high-end technology.
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1. Cost
One of the major issues was the implementation cost. AR devices were to be fabricated for a specific equipment or purpose which involved a huge investment. Developing and installing the AR devices for industries requires a lot of investment and time. Additionally, upgradation of conventional equipments to that the support AR devices costs a fortune to the company. 2. Health affects
Use of this technology by humans caused mental illness. Extreme usage of this technology leads to eye problems, visual impairment, etc. Continuous exposure of virtual world lead to illusion of things in the real world for the users. Abnormalities in the reflex actions were observed due to sudden change in the environment.
Augmented Reality is the next step in the digital world, which is going to be integrated by various sectors to help assist them in providing business solutions. It is going to help reduce their cost and increase their efficiency. But, it is still under testing phase and it requires a lot of improvement to become an integral equipment to be widely used by companies for making situational business decisions. What are your thoughts about it?
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ABOUT US The word “Kaizen”, where “Kai” = change “Zen” = good, simply means “believes in relishing in the essence of "Constant Change and Evolvement" and hence we, as an organization work willingly for the betterment of the student community. KORE- Kaizen’s Operations and Research Entity, one of our primary wings which flaps to cater to the needs of students and motivate them to soar high by polishing their technical competencies. KORE’s area of expertise includes Case Based Research, Consultancy, Live Projects and Workshops. LAKSHYA, an initiative taken by KORE primarily focuses on the concepts of operations management and various articles based on the day to day operations and logistics of an organisation. Change for better”. In English Kaizen is typically applied to measures for implementing continuous improvement. It is an approach to activity organisation based on common sense, self-discipline, order and economy and is a strong contributor and fundamental part of a lean production process model in lean manufacturing. Kaizen- The Official Operations Club of IBS Hyderabad
- DHANANJAY HARKARE KORE HEAD Batch 2018-20
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LAKSHYA is an academic print and is not for any commercial sale. Reliability and Responsibility, for sources of data for the article vests with the respective authors. Please feel free to drop in your suggestions at kaizenclub.ibs@gmail.com KORE: Kaizen’s Operations & Research Entity. Kaizen – The Official Operations Club of IBS Hyderabad All Rights Reserved
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