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India: The Emerging Innovation Giant

Navi RadjouVice President, Principal Analyst

Forrester Research

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2Entire contents 2006 Forrester Research, Inc. All rights reserved.

Source: Deepak Lal, In Praise of Empires: Globalization and Order, Palgrave

Macmillan, 2004

GDP

inde

x

(PPP$)

0

100

200

300

400

500

600

700

800

900

1500 1600 1700 1820 1870 1913 1998

China India USA

(Russia = 100)

After ceding its crown as a global economic giant

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3Entire contents 2006 Forrester Research, Inc. All rights reserved.

0

10000

20000

30000

40000

50000

60000

70000

80000

2000 2010 2020 2030 2040 205

BillionsofU

S$

India GDP + China GDP

India GDP

China GDP

US GDP

Source: Goldman Sachs

India is attempting to regain it

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4Entire contents 2006 Forrester Research, Inc. All rights reserved.

Indias world-class invention capabilities

Source: www.isro.org

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5Entire contents 2006 Forrester Research, Inc. All rights reserved.

Indias world-class transformation capabilities

Source: http://akgoyal.com/wp-content/uploads/2007/09/india-wins-t20-world-cup.jpg

Source: http://www.washingtonpost.com/wp-dyn/content/

article/2008/06/25/AR2008062500566.html?hpid=entnews

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6Entire contents 2006 Forrester Research, Inc. All rights reserved.

Indias world-class innovation brokeringcapabilities

Source: www.regalhotel.com

Source: www.jobsletter.org.nz

Source: cache.eb.com/eb/image?id=74050

Source: http://upload.wikimedia.org/wikipedia/commons/

thumb/f/ff/EdictsOfAshoka.jpg/455px-EdictsOfAshoka.jpg

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7Entire contents 2006 Forrester Research, Inc. All rights reserved.

Theme

Indias core competency lies in

transforming and brokering

innovations for local and globalconsumption instead of

merely inventing new things

just for the sake of inventing

them

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8Entire contents 2006 Forrester Research, Inc. All rights reserved.

Agenda

How does the Indian market differ from otheremerging markets?

Which Indian organizations are championinginnovative best practices?

How do Indian companies exploit technology todrive innovation and sustain growth?

What are the key market opportunities for US

vendors in India? Public policy implications for the US

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9Entire contents 2006 Forrester Research, Inc. All rights reserved.

Agenda

How does the Indian market differ from otheremerging markets?

Which Indian organizations are championinginnovative best practices?

How do Indian companies exploit technology to driveinnovation and sustain growth?

What are the key market opportunities for US vendors

in India?Public policy implications for the US

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10Entire contents 2006 Forrester Research, Inc. All rights reserved.

The myth . . .

Source: http://www.people.hbs.edu/tkhanna/Khanna.jpg

Source: images.barnesandnoble.com/images/

14910000/14910017.JPG

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11Entire contents 2006 Forrester Research, Inc. All rights reserved.

The reality . . .

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12Entire contents 2006 Forrester Research, Inc. All rights reserved.Source: Rama Bijapurkar (http://www.ramabijapurkar.com)

The reality . . .

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13Entire contents 2006 Forrester Research, Inc. All rights reserved.

Success criteria for made-in-India innovations:

1. Simple (hassle-free, intuitive use)

2. Low-cost

3. High-volume

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14Entire contents 2006 Forrester Research, Inc. All rights reserved.

Case in point: Nano

Sources: http://uberdesi.com/blog/wp-content/uploads/2008/01/nano.jpg and http://imod.co.za/wp-content/uploads/2008/01/tata-nano.jpg

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15Entire contents 2006 Forrester Research, Inc. All rights reserved.

Agenda

How does the Indian market differ from other emergingmarkets?

Which Indian organizations are championing innovative

best practices?

How do Indian companies exploit technology to drive innovationand sustain growth?

What are the key market opportunities for US vendors in India?

Public policy implications for the US

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16Entire contents 2006 Forrester Research, Inc. All rights reserved.

Tata Motors Innovation Network

T

S

Inventor

R&D cranked out 40 patents for Nano design

(2007)

Transformer

Supply chain and marketing functions are focusedon scaling Nano design into a commercial reality:250,000 units by 2009 (one million units beyond2011)

T

Financier

CFO office finances invention and transformationactivities (emphasis on latter!)

S

Broker

Sales and distribution functions broker access to anationwide dealer network to speed time-to-volume

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17Entire contents 2006 Forrester Research, Inc. All rights reserved.Source:Tata Motors (http://www.tatapeoplescar.com/)

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18Entire contents 2006 Forrester Research, Inc. All rights reserved.

Indias first truly multinational R&D firm: Suzlon

Source: www.suzlon.de

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19Entire contents 2006 Forrester Research, Inc. All rights reserved.

Indias national R&D labs now broker global

connections

Global partners include:

Du Pont, GE, EXXON Mobil

http://www.csir.res.in/

CSIR

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20Entire contents 2006 Forrester Research, Inc. All rights reserved.

Agenda

How does the Indian market differ from other emergingmarkets?

Which Indian organizations are championinginnovative best practices?

How do Indian companies exploit technology todrive innovation and sustain growth?

What are the key market opportunities for US vendors

in India?Public policy implications for the US

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22Entire contents 2006 Forrester Research, Inc. All rights reserved.

T

S

Inventor

Hatches a new idea or creates new product, new service, or new

business model

Transformer

Converts inputs from inventors into market-relevant and usable products,services, or processes

T

Broker

Facilitates global interactions among Inventors, transformers, andfinanciers globally

Indian tech leaders dont invent -- but transform and

broker innovation . . . globally

ICICI f li ti i ti b t ti

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23Entire contents 2006 Forrester Research, Inc. All rights reserved.

ICICI focuses on replicating innovative best practices

across its global business network

I consider myself as the chief innovation

orchestrator -- tasked with delivering the

innovation piece wherever it was conceptualized

within ICICIs global network

- Pravir Vohra, group CTO, ICICI

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24Entire contents 2006 Forrester Research, Inc. All rights reserved.

Agenda

How does the Indian market differ from otheremerging markets?

Which Indian organizations are championinginnovative best practices?

How do Indian companies exploit technology to driveinnovation and sustain growth?

What are the key market opportunities for US

vendors in India?Public policy implications for the US

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25Entire contents 2006 Forrester Research, Inc. All rights reserved.

India is emerging as a global R&D hub

Top-ranking destination countries by number of

research and development projects

Source: IBM-Project Location International (IBM-PLI) Global Investment Locations Database (GILD)

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26Entire contents 2006 Forrester Research, Inc. All rights reserved.

Multinationals expand their R&D presence in India

Source: August 3, 2006 Offshore Product Development Has Arrived Report

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27Entire contents 2006 Forrester Research, Inc. All rights reserved.

Microsofts Unlimited Potential program drives

social innovation in Indian villages

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28Entire contents 2006 Forrester Research, Inc. All rights reserved.

Cisco has