ICSI International Conference Monday, 12 May 2008

1. ICSI International ConferenceMonday, 12 May 2008 Creating Solutions for Effective Performance in Slowing Global Economy Presentation by Balwant Kulkarni Director (Academics)

2. Creation is a process

3. Solutions are a response to problems

4. Problems are well defined and understood

5. You need to unleash creativity through the systems at all levels of organization

6. Mindset that is attuned to solutions looks at problems as opportunities in disguise

7. Volatility in Stock Market is not an enigmaGeorge Soros and Warren Buffet have made their fortunes by being one step ahead of volatility

8. Statement of problems sometimes show grave approach

9. Let us look at the following statements: • The measure of the pressure that human activity exerts on the resources of the earth was 60 per cent of the earth’s capacity to renew itself in 1960. • It has presently reached 130 per cent of the earth’s capacity. • We are no longer living off the earth’s revenue account. We are eating into its capital.

10. Scientists project that if China and India grow the way the West has, within 25 years they will require another whole planet earth to support them alone!

11. Scientists and technologists have looked at evidentiary proof of the earth’s physical resources

12. Mental and intellectual resources of the human kind are immeasurable and infinite

13. Statements of problems sometimes overlook human creativity

14. They also overlook the blessedness of the humankind

15. They may also be overlooking the crookedness of the humankind and its greed

16. As Mahatma Gandhi said “the world has enough to satisfy everyone’s need but does not have enough to satisfy a single man’s greed.”

17. Was the sub-prime mortgage crisis in the US a reflection of the human greed?

18. US economy was expected to go into a downturn The prediction followed years of cheap liquidity

19. Cheap liquidity created a lot of new risk vehicles in which people were investing

20. JP Morgan Chase taking over Bear Stearns with the aid of the US Federal Reserve could be a creative solution.

21. TATAs’ creation of Nano could be an economic statement of performance through smallness

22. Creativity at practical level is called innovation

23. Schumpeter stressed the role of innovation and creativity to turn up the wheels of the economy

24. Innovation may be a process that is breakthrough or that is incremental

25. Innovation may occur systematically in a company or sporadically

26. Innovation is a process by which varying degrees of measurable value enhancement is planned and achieved

27. National Knowledge Commission says… innovation may be achieved by… • Introducing new or improved goods or services • Implementing new or improved operational processes • Implementing new or improved organizational/managerial processes to improve market share, competitiveness and quality, while reducing costs.

28. Entrepreneurship and intrapreneurship are products of creative human mind

29. Schumpeter also looks at entrepreneurship as solution to economic depression

30. Out of destruction a new spirit of creativity arisesInnovative entry by entrepreneurs is the force that will sustain long-term economic growth

31. Companies that once revolutionized and dominated new industries have seen their profits fall and their dominance vanish as rivals launched improved designs or cut manufacturing costs Example Xerox in copiers or Polaroid in instant photography

32. The policy option is acceleration of productive growth in an environment of high economic growth

33. This will free the entrepreneurial spirit in the economy

34. High and uneven inflation enhances risk

35. It is inimical to innovation and risk taking

36. The pickup in productivity tends to create even greater increases in aggregate demand than potential aggregate supply

37. Monetary policy should deliver low and stable inflation

38. It should also be expected to deliver low and stable inflation

39. That way the monetary policy can give sustainable growth its best chance

40. Accelerating productivity growth entails a matching acceleration in the potential output

41. This causes a corresponding rise in the real incomes available to purchase the new output

42. Chinese economy grew by 11.2% in the last quarter of 2007, when the US GDP growth was flat

43. Chinese Government showed that domestic consumption accounted for a bigger slice of GDP growth than investment and exports

44. This happened for the first time in China since the year 2000

45. This happened in China in spite of the inflation rate higher than the rate in India

46. With 40 percent of the world’s population between the two countries, plenty of opportunities exist

47. What is required is strong leadership and business initiatives

48. Sino-Indian bilateral trade stood at $38.7 Billion in 2007

49. Proper management by both States can ensure stability for bilateral relations, South Asian security, and the evolving global balance of power.

50. The Elephant and the Dragon will have to learn to tango