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.
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.