- Pankaj Jain

Sr. Vice President, Marketing - Kalyani Steel Ltd.

oing business is becoming Dinteresting and challenging. What we are going to experience in the next 5-10 years, we may not have imagined in the last 50 years. And surely, steel may not be an exception industry.

During all reviews and strategy discussions, its time to even Question the Questions we ask – even if the same look stupid.

To trigger your thoughts, let me put forth some stupid questions.

• Resources like Nickel, Molybdenum etc are limited. The same are greatly used in special steels manufacturing – especially stainless steel. Can we entirely replace these without compromising on the product performances?

• Graphite electrodes are used mainly in electric arc furnace steel production. They are also used to refine steel in ladle furnaces and in other smelting processes. In recent times (6 months), the prices of

these electrodes have zoomed by more than 500%, and the shortage is projected to be there. Can’t we find a replacement and be done with graphite electrodes and the problem?

• Can we eliminate one of the major manufacturing processes; let us say one rolling or a heat treatment process? Can the current yield parameters be completely challenged?

• We all use Mobile phones – and look for an aluminium body phone. Why can’t the steel industry develop some steel grade – possibly which is not only having high strength but also tough, lightweight and provide better aesthetics.

Let’s stop worrying for what can go wrong in the journey of innovation; let’s just be excited with what can go right.

Any disruptive innovation – product/process/business model is very simply for the purpose of creating a new market and value network which makes true economic sense. The same disrupts an existing market and value network, displacing established market leaders and alliances. All industries, be it steel or otherwise, need to remember – the efforts for cost reduction and for improving efficiency are very good and required for short term and may help to fight during downturn. But long term and sustained success will only happen when there is a constant pursuit for innovation.

The innovation journey of India is okay by some standards but it’s time to change gears. Its high time we move from “Passenger trains or even few Shatabdis” to “BULLET TRAINS”. At global level, The

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In-Sight

Innovation will differentiate in 21st centurywhether country/ industry/ individual… and the Indian steel industry need to move fast

In-Sight

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World Intellectual Property Organisation (WIPO) in its 10th edition of the ‘Global Innovation Index (GII)’ ranked India 60th on its list of 130 most innovative countries in the world. While India moved up six positions in 2017, there is still long way to go. It is ranked 10th in category of graduates in science and engineering, 27th on e-participation, 14th on the presence of global research and development companies, 33rd on government’s online service, 32nd in general infrastructure, 18th on creative goods exports, 30th on knowledge impact and 29th on intellectual property payments.

The journey from walking to sprinting in the marathon of innovation can onlyhappen when we create a culture of sustained innovation.

Sustained innovation can only come when an organisation is able to develop a collective sense of purpose – to do something better. When that happens as a part of culture, people not only make efforts to recognize unconventional opportunities, but also creatively examine each activity that they do on a routine basis. While major product or service breakthroughs make headlines, it’s the steady incremental innovations made by employees every day that give an organisation the sustained growth it needs.

• Creating a Culture of Innovation Starts with the Leader.The leader plays a critical role in creating the right atmosphere for innovation to flourish. Having a clearly articulated message allows everyone to focus on innovation where it can deliver the greatest value. And it is important to create a feeling in the organisation that when efforts are made with right intentions, failure is an acceptable option. Actually, when things are not failing, it is an indication, that not much innovation is happening.

• Open communication between management and employees sets the stage for an atmosphere of trust. Good ideas and innovation can only happen in organisations where there are discussions or debate on any subject which are Open, Honest and Two-way.

• Instilling a sense of ownership – Can we create entrepreneurs within our

organisations? Can we create organisations where responsibility equals accountability equals ownership? In my view, once this happens, this can be the best weapon to fight the war in our industries. An ownership mentality creates a powerful incentive for inventive thinking. When an individual is clearly aware of how his or her interests are aligned with those of the company, he or she has a strong reason to “go the extra mile” to further the mission

• Rewarding and Recognising the performers – Recognition is proven as among the best method of improving work motivation and employee engagement. As per one study, 1 minute spent on recognizing behavior = 100 minutes of initiative in return. While financial rewards are often tied to innovations, rewarding only the individual or team responsible for the “big idea” or its implementation, sets up a subtle competitive atmosphere that discourages the smaller, less dramatic improvements.

It is a well known fact that steel industry is a money guzzler especially when it

comes to adding any capacities. The margins are also known to be always under pressure and the business cyclical.

On one hand, other industries like aluminium and plastic are doing everything possible to encroach and on the other hand unexpected disruptions like electric vehicles and 3D printing are challenging traditional steel company business models.

The bottom-line therefore is that steel industries, whether in commodity or special formulate their strategies not only to address current challenges but also to prepare themselves to handle the disruptions before it is late.

Change is the only thing that is permanent ; and we better start intuitively changing everything we do. Without change, there is no innovation or creativity. It is really inevitable that those who initiate change will have a better opportunity to manage change. And “Innovation” will differentiate between tomorrow’s successful companies and not so successful once.

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