AIMA case presentation

1. By:
Prakhar Nigam
Pritish Sareen
PGDM (2012-14)

2. Innovation
• Innovation – iPhone, Stick-up Notes
• Innovation vs. Invention
• Innovation vs. Improvement
2

3. CASE STUDY:
ITC e-Choupal

4. ITC-International Business Division
Challenge:
•Global Competition- Cargill, Mitsubishi, ConAgra
•Highly Volatile
- Foreign Exchange Fluctuations
- Government Policies
- Perishable nature of Commodities
•Unfavorable risk return ratios
•Low Margins
Y C Deveshwar: “ITC wants to create a high-quality low-cost fulfilment channel for rural India”

5. Approach to Challenge

6. Step 1- Blowing Up Old Business Model
•Innovation over Efficiency
•Question all Assumptions
Step 2- Strategy as Symphony
•Idea Generation- Team of 32 and Field Experts
•Methodology Shift- Presentation to Brainstorming
•Focus Shift- Commodity to Servicing
•Project Symphony-
- CRM(Customer Relationship Management) Initiative
- Farmers & Supply Chain Initiative (Choupal)
- Risk Management Initiative
- Learning Initiative
Source: “Making Breakthrough Innovation Happen” by Porus Munshi

7. Step 3- Innovations in Play
•Reverse the Transaction- Empower the Farmer
•Unbundle the Bundled
- Free Flow of Price Information
- Transaction
•Co-opt Intermediaries
Source: “Making Breakthrough Innovation Happen” by Porus Munshi

8. E-Choupal
Business Model
Source: knowledgecommission.com

9. Value Chain Cost Analysis
FIRM INFRASTRUCTURE
SUPPORT HUMAN RESOURCE MANAGEMENT
ACTIVTIES TECHNOLOGY DEVELOPMENT
PROCUREMENT
INBOUND OPERATIONS OUTBOUND MARKETING SERVICE
LOGISTICS LOGISTICS & SALES
PRIMARY ACTIVITIES
•Cost limited to Operations, Outbound Logistics, Procurement and
Technology

10. Role of Manager
Mr. Sivakumar’s Role:
• Idea Generation Stage-
-Facilitating over ordering
-Involve everyone
-Look outside
• Idea Development Stage-
-Symphony of ideas over reductionist logical steps
-Capture the latent value
• Idea Dissipation Stage-
-Combat Dilution
-Enrolling Stakeholders- Prototype (Give proof), Push Programme
Source: “Making Breakthrough Innovation Happen” by Porus Munshi

11. Innovation Measurement
Innovation Measurement
Source- BCG Innovation Survey

12. INNOVATION MEASUREMENT
Case Analysis : Tata Innometer
• Initiative of Tata Group Innovation Forum
Innometer
Innovation Innovation
Process Culture
Source: tataquality.com/innometer

13. Innometer Report
Source: tataquality.com/innometer

14. Role of Educational Institutes
Research
• Interdisciplinary
• Business Engagement
Building
transformational
Outreach
Education Leaders
• Publications
• Special Electives
• Industry Institute Partnership
• Onsite Workshops
Source: isb.edu/clic

15. THANK YOU !
• Questions ?