Growth In­no­va­tion and Lead­er­ship In­dia 2018 sum­mit

At Frost & Sul­li­van’s Growth In­no­va­tion and Lead­er­ship (GIL) In­dia 2018 sum­mit, new busi­ness mod­els in the CV in­dus­try were touched upon.

Commercial Vehicle - - CONTENTS - Story by: Ashish Bha­tia

At Frost & Sul­li­van's Growth In­no­va­tion and Lead­er­ship (GIL) In­dia 2018 sum­mit, new busi­ness mod­els in the CV in­dus­try were touched upon.

The 10th edi­tion of Frost & Sul­li­van’s Growth In­no­va­tion and Lead­er­ship (GIL) In­dia 2018 Sum­mit was con­cluded on Oc­to­ber 10, 2018, in Mum­bai. At the GIL In­dia 2018 Sum­mit, new busi­ness mod­els in the com­mer­cial ve­hi­cles in­dus­try amid dig­i­tal of­fer­ings were touched upon, with an un­der­ly­ing thought that change is the only con­stant. Call­ing ‘dig­i­tal trans­for­ma­tion’ as a key dif­fer­en­tia­tor for the com­mer­cial ve­hi­cle ecosys­tem over the fu­ture, the sum­mit shared in­sights on the non-lin­ear busi­ness model par­a­digm, and touched upon how or­gan­i­sa­tions in the com­mer­cial ve­hi­cle in­dus­try could lever­age the ex­po­nen­tial or ac­cel­er­ated growth in other al­lied in­dus­tries. In­dus­try ex­perts and vi­sion­ar­ies came to­gether at the sum­mit to en­vis­age the next wave of in­no­va­tion emerg­ing from var­i­ous con­verg­ing sce­nar­ios. Aroop Zut­shi, Global Pres­i­dent & Manag­ing Part­ner, Frost & Sul­li­van, in his key­note ad­dress, ex­pressed that tech­nol­ogy is all-per­vad­ing, and busi­nesses need to as­sess its im­pact. “It is ex­tremely crit­i­cal to iden­tify growth en­gines, in­dus­try con­ver­gence and busi­ness model in­no­va­tion for long-term suc­cess,” he men­tioned. Draw­ing at­ten­tion to en­ter­prises in the present day world fac­ing an era of un­prece­dented and dis­rup­tive change, he em­pha­sised on it be­ing im­per­a­tive for busi­nesses to have a vi­sion for the fu­ture, de­liver value to ex­pe­ri­ence ex­po­nen­tial growth and thrive in these times of change. Marked by chal­lenges and op­por­tu­ni­ties, opined Zut­shi, the change has ne­ces­si­tated a fun­da­men­tal shift across pro­cesses, func­tions, cus­tomer en­gage­ment and many other as­pects of the busi­ness. Zut­shi within the con­text of the rapid changes wit­nessed by the CV in­dus­try in par­tic­u­lar ex­plained

how some or­gan­i­sa­tions were do­ing good while oth­ers were reel­ing un­der the pres­sure to quickly align with the mas­sive dis­rup­tion in the ecosys­tem. “Or­gan­i­sa­tions that were un­til some time ago not even heard of, have to­day be­come house­hold names as a re­sult of dis­rup­tions and the ar­rival of dis­rup­tive tech­nolo­gies,” he quipped.

New mo­bil­ity busi­ness mod­els

The ses­sion on ‘Emer­gence of new mo­bil­ity busi­ness mod­els driven by dig­i­tal trans­for­ma­tion’ by Kaushik Mad­ha­van, Vice Pres­i­dent, Mo­bil­ity (Au­to­mo­tive & Trans­porta­tion) Prac­tice, Frost & Sul­li­van, had the pan­elists de­lib­er­at­ing on the tran­si­tion from con­ven­tional fuel pow­ered ve­hi­cles to elec­tric ve­hi­cles. At­ten­tion was paid to the tran­si­tion from con­ven­tional fuel pow­ered CVs to elec­tric ones in par­tic­u­lar. The theme of tran­si­tion was fur­ther ap­plied to dif­fer­ent con­texts like rideshar­ing, shared mo­bil­ity, multi-modal trans­port, plat­formi­sa­tion of trans­port, and tran­scen­den­tal mo­bil­ity. The panel em­pha­sised on how mo­bil­ity providers need to take a col­lab­o­ra­tive ap­proach in­stead of a dis­rup­tive ap­proach if they were to serve bet­ter in the fu­ture. The dis­cus­sion to fur­ther touch upon new rev­enue streams and how mo­bil­ity ser­vices are ex­pected to grow into a tril­lion dol­lar mar­ket by 2025. Ma­jor themes im­pact­ing the fu­ture of mo­bil­ity in­clud­ing growth in au­ton­o­mous ve­hi­cles, fu­ture sce­nar­ios of mo­bil­ity, growth of down­stream ser­vices, new mo­bil­ity busi­ness mod­els, sub­scrip­tion ser­vices, dig­i­tal trans­for­ma­tion and data mon­eti­sa­tion, rise of au­ton­o­mous taxis and shut­tles, de­liv­ery bots and fly­ing ur­ban ve­hi­cles were delved upon. Kaushik drew at­ten­tion to the Ex­pe­rian, Frost & Sul­li­van anal­y­sis on fu­ture au­to­mo­tive rev­enue growth from down­stream ser­vices. He high­lighted that the study has pegged the growth of mo­bil­ity ser­vices by 2025 to a CAGR of 12 per cent, that of the fi­nan­cial ser­vices to five per cent, driv­ing ser­vices to 11 per cent, and ve­hi­cle ser­vices to eight per cent.

Ex­press­ing an opin­ion that ev­ery en­tity in the sup­ply chain could po­ten­tially turn au­ton­o­mous, Mad­ha­van drew at­ten­tion to close work­ing en­vi­ron­ments like ware­houses where au­ton­o­mous fork­lifts and au­ton­o­mous yard ve­hi­cles are ex­pected to dom­i­nate the fu­ture. “In trans­porta­tion, in con­trast, the first and mid­dlemile trans­porta­tion is ex­pected to be led by au­ton­o­mous trucks and hy­brid fleets,” he stated. A dis­cus­sion on last mile trans­porta­tion, ground last mile bots and de­liv­ery drones fol­lowed. Touch­ing upon fly­ing car taxi ser­vices, the panel ad­di­tion­ally delved upon the need for nec­es­sary sup­port­ing in­fra­struc­ture. Averred Mad­ha­van, that in­vest­ments in this area are ex­pected sooner than later. To sup­port his state­ment, he stressed upon the Volo­copter case study. The lat­ter has de­vel­oped an air taxi sta­tion con­cept that can cater to 10,000 pas­sen­gers per day. It com­prises of an air taxi sta­tion or the Volo hub, a mass tran­sit point that fa­cil­i­tates a fly­ing car to take off and land ev­ery 30 sec­onds be­side a Volo Port that fa­cil­i­tates take-off and land­ing over ma­jor shop­ping malls, com­pa­nies, and train sta­tions.

Touch­ing upon the much awaited Fame II scheme meant to en­cour­age al­ter­nate fuel ve­hi­cles, Mad­ha­van em­pha­sised upon the top five learn­ings from the re­cently con­cluded MOVE Sum­mit. He drew at­ten­tion to the re­cent an­nounce­ment about mak­ing al­ter­nate fuel CVs per­mit-free as part of a strat­egy to drive elec­tric, bio­fuel, and ethanol pow­ered CV growth. Also dis­cussed were the em­pha­sis on 7Cs to drive mo­bil­ity in In­dia by the prime min­is­ter. The 7Cs, an­nounced Kaushik, are com­mon, con­nected, con­ve­nient, clean, cut­ting-edge, con­ges­tion-free and charged. Even as Mad­ha­van high­lighted the con­tin­ued fo­cus on EV poli­cies for­mu­lated by the state govern­ments, a pan­elist drew at­ten­tion to how in­stead of a na­tion­wide EV pol­icy, state govern­ments are be­ing en­trusted to de­velop lo­cal and re­gion spe­cific EV ecosys­tems. In con­text to the move to­wards al­ter­nate fu­els, the panel touched upon mi­cro-fi­nance op­tions for last­mile con­nec­tiv­ity star­tups and en­trepreneurs. How they could pro­mote pri­vate in­vest­ments in the last mile con­nec­tiv­ity space in met­ros and tier 1 cities. Mad­ha­van cited a pre­sen­ta­tion made by the state of Ma­ha­rash­tra, which in­cluded the show­cas­ing of UMTA frame­work as an in­te­grated in­sti­tu­tion to make mo­bil­ity shared and ac­ces­si­ble to all cit­i­zens. The frame­work high­lighted the need for a com­mon sub­scrip­tion for multi-modal mo­bil­ity, traf­fic con­ges­tion man­age­ment and seam­less con­nec­tiv­ity across dif­fer­ent modes en­com­pass­ing first and the last mile trans­porta­tion.

In the era of un­prece­dented changes

The panel on ‘Lead­ing and win­ning in an era of un­prece­dented changes’ be­gan by set­ting the con­text for strate­gic im­per­a­tives and as­pi­ra­tional ideas for growth. Call­ing tech­nol­ogy as to­day’s

steam en­gine, Zut­shi em­pha­sised on In­dus­try 4.0. He stressed upon the cur­rent trend of au­to­ma­tion and data ex­change in man­u­fac­tur­ing tech­nolo­gies by draw­ing at­ten­tion to how or­gan­i­sa­tions should look at them­selves as tech­nol­ogy com­pa­nies. Warn­ing that they could no longer be con­tent with lin­ear growth prac­tices, he stated, “It is time to ex­pe­ri­ence ex­po­nen­tial growth.” Cit­ing an ex­am­ple of the freight lo­gis­tics in­dus­try as a tra­di­tional sec­tor “wit­ness­ing death by a thou­sand cuts” to drive home the point, Zut­shi opined that freight lo­gis­tics com­pa­nies were cur­rently ex­pe­ri­enc­ing a sweep­ing trans­for­ma­tion of the scale last wit­nessed in the 1990’s. It was then that IT first rev­o­lu­tionised the lo­gis­tics sec­tor. High­light­ing ‘ship­per’ com­pa­nies as de­mand gen­er­a­tor, ‘bro­ker com­pa­nies as me­di­a­tor’s, ‘car­rier

com­pa­nies as freight for­warders, and ‘ware­house’ com­pa­nies as freight de­liv­ery car­ri­ers, the ses­sion touched upon the top emerg­ing in­dus­tries fore­casted for 2020. The list in­cluded vir­tual com­merce, 3D print­ing, Big Data and the cloud com­put­ing space. Ex­pressed Zut­shi that they have im­mense mar­ket po­ten­tial, . Speak­ing of the in­no­va­tion kalei­do­scope, in a bid to pre­pare the in­dus­try for the fu­ture, the ses­sion high­lighted in­dus­try con­ver­gence, mega­trends and dis­rup­tive tech­nolo­gies.

Within in­dus­try con­ver­gence, the panel touched upon au­to­mo­tive and trans­porta­tion sec­tor, en­ergy and en­vi­ron­ment, aero­space and de­fense among oth­ers. Con­nec­tiv­ity and con­ver­gence, new busi­ness mod­els, fu­ture of mo­bil­ity, ur­ban­i­sa­tion among other trends were touched upon as the mega trends. In case of dis­rup­tive tech­nolo­gies, mi­cro­elec­tron­ics, sen­sors and in­stru­men­ta­tion, en­ergy and util­i­ties, chem­i­cals and ad­vanced ma­te­ri­als, and ad­vanced man­u­fac­tur­ing and au­to­ma­tion were high­lighted. Con­ver­gence of in­dus­tries, prod­ucts and func­tions were also delved upon. Con­ver­gence of in­dus­tries like man­u­fac­tur­ing and IoT was la­belled as man­u­fac­tur­ing au­to­ma­tion. Draw­ing at­ten­tion to aug­mented re­al­ity and smart de­vices, a pan­elist spoke about how it could give rise to lo­gis­tics ware­house au­to­ma­tion. Men­tioned an­other pan­elist that sen­sors and CVs would give rise to self-driv­ing ve­hi­cles.

In his speech dur­ing the GIL 2018, Nick Glid­don, Chief En­ter­prise Busi­ness Of­fi­cer, Voda­fone Idea Lim­ited, ex­pressed that there was never a bet­ter time to be in In­dia. He cred­ited the govern­ment

for in­tro­duc­ing ini­tia­tives like ‘Skill In­dia’, ‘Make in In­dia’, ‘Smart Cities’, and ‘Startup In­dia’. Stat­ing that these ini­tia­tives were re­it­er­at­ing In­dia’s po­ten­tial as a land of op­por­tu­ni­ties, Glid­don urged or­gan­i­sa­tions to lever­age the power of mo­bil­ity, IoT and cloud ap­pli­ca­tions if they were to be more ag­ile in the face of dis­rup­tions. They should take ad­van­tage of the growth op­por­tu­ni­ties, he added. Opin­ing that those busi­nesses, which make a case for trans­for­ma­tion by pick­ing the right tech­nolo­gies were best placed to drive ex­po­nen­tial growth. He ex­plained that In­dia had trans­formed over the last two years, from be­ing an ana­logue so­ci­ety to a dig­i­tal so­ci­ety ow­ing to the ram­pant use of tech­nol­ogy in ev­ery sphere. The au­to­mo­tive sec­tor, he added, had come to fea­ture along­side sec­tors like Tele­com es­pe­cially as the In­dian econ­omy strives to breach the USD 1 tril­lion mark by 2050.

Su­nil Gupta, Ex­ec­u­tive Di­rec­tor and Pres­i­dent, Net­magic, in his ad­dress, said that the key driv­ers of growth in In­dia were ‘dig­i­tal’ in na­ture. He drew at­ten­tion to a statis­tic from In­ter­net and Mo­bile As­so­ci­a­tion of In­dia that pegged the pen­e­tra­tion of in­ter­net at 35 per cent with a user base of over 460 mil­lion. He also touched upon the ex­plo­sive growth of the mo­bile phone user base and the speed of broad­band. Em­pha­sis­ing on Ar­ti­fi­cial In­tel­li­gence (AI), vir­tual re­al­ity, IoT and new-age an­a­lyt­ics that has trig­gered rapid ad­vance­ments in the adop­tion of cut­ting-edge tech­nolo­gies by the CV in­dus­try among other busi­nesses, Gupta cited a study that has es­ti­mated 43 per cent of busi­nesses to have fully im­ple­mented a cloud strat­egy. “By 2020, cloud ser­vices are ex­pected to have a mar­ket size of USD-four bil­lion,” he stated. Given the rise in cloud ser­vices, it is ex­pected that the In­dia cy­ber se­cu­rity mar­ket would grow at a CAGR of over 19 per cent in the pe­riod be­tween 2018 and 2023. Ex­pected to lever­age the growth po­ten­tial are CV mak­ers in In­dia who have been in­creas­ingly re­ly­ing on cloud­based tech­nol­ogy to pro­vide bet­ter own­er­ship ex­pe­ri­ence to their cus­tomers.

The ‘Think Tank’ con­ducted by Frost & Sul­li­van’s Anand S., Vice Pres­i­dent, shared in­sights on the ‘hot’ 50 tech­nolo­gies that are ex­pected to guide the strate­gic moves of in­no­va­tion fo­cused or­gan­i­sa­tions and pro­fes­sion­als in the next cou­ple of years. Among those dis­cussed were bio-sen­sors, LiDAR sen­sors, sen­sor fu­sion, smart sen­sors and the ad­vent of ul­tra high-strength met­als for lightweight­ing CV frames. Also dis­cussed was the pos­si­ble con­ver­gence of sev­eral tech­nolo­gies that would open up un­prece­dented op­por­tu­ni­ties for new rev­enue mod­els and the next gen­er­a­tion of in­no­va­tive prod­ucts and so­lu­tions for the CV in­dus­try.

The win­ners

Frost & Sul­li­van’s Growth In­no­va­tion and Lead­er­ship (GIL) In­dia 2018 Sum­mit con­cluded the day with the fifth An­nual 2018 In­dia Best Prac­tices Awards Ban­quet that fol­lowed the flag­ship event. The awards hon­oured com­pa­nies that cre­ated break­through busi­ness mod­els and strate­gies through in­no­va­tive use of trans­for­ma­tive tech­nolo­gies, and how they de­liv­ered ex­cep­tional per­for­mance across in­dus­tries. A to­tal of 45 awards were pre­sented across mo­bil­ity, techvi­sion, vi­sion­ary science (chem­i­cals, ma­te­ri­als and food), trans­for­ma­tional health, mea­sure­ment and in­stru­men­ta­tion, and in­dus­trial au­to­ma­tion and process con­trol. In the mo­bil­ity sec­tor, Trim­ble Mo­bil­ity So­lu­tions In­dia Pvt. Ltd., won the ‘In­dian Telem­at­ics So­lu­tion Provider of the Year’ award. Vis­teon Cor­po­ra­tion won the award for the ‘In­dian Mo­bil­ity Elec­tron­ics and Soft­ware So­lu­tions Tech­nol­ogy In­no­va­tion’. KPIT Tech­nolo­gies Ltd., won the Ín­dian Shared Mo­bil­ity So­lu­tions Vi­sion­ary In­no­va­tion Lead­er­ship’ award. Sun Mo­bil­ity Pvt. Ltd. won the Ín­dian Mo­bil­ity Startup Vi­sion­ary In­no­va­tion Lead­er­ship’ award. TVS Au­to­mo­bile So­lu­tions Pvt. Ltd., won the ‘In­dian Mo­bile Af­ter­mar­ket So­lu­tions Cus­tomer Ser­vice Lead­er­ship’ award. Scha­ef­fler In­dia Lim­ited won the ‘Ín­dia Auto Com­po­nent Man­u­fac­turer Cus­tomer Value Lead­er­ship’ award. Mahin­dra and Mahin­dra, Tr­ringo won the ‘In­dian Agri­cul­ture and Farm­ing Vi­sion­ary In­no­va­tion Lead­er­ship’ award, and Volvo Con­struc­tion Equip­ment won the ‘In­dian Con­struc­tion and Min­ing New Prod­uct In­no­va­tion’ award.

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