When Innovation fails....

Nortel makers of telecommunication and computer network equipment and software recently filed for bankruptcy, giving Cisco a more open space to play with I guess. What exactly went wrong is series of events which are "out of scope" for this writing.

One thing though which has been pointed out is :

"Why the organization which had two years ago embraced innovation and design to make it out of the troubled times, failed to do so and went ahead to seek protection from creditors ?".

The management envisioned to make the best from the emerging technologies, focusing at its R&D as the captain to sail them out of the losses. Nortel spend something in the vicinity of $2 billion to re-align its R&D and focus on new products as well as revamping the existing one.
"The organization worked hard to create virtual world , even brought in Incubation Program and Innovation Lab to identify and develop new technologies such as Web 2.0 applications that allowed employees to collaborate with one another online" as stated in BW. The company worked hard to connect with the customers to reposition themselves into the innovators segment.

Nortel still failed, popping the question why innovation couldn't provide a life line , which got answered stating that "it was not at all a sufficient time for the company to stage a turn around riding on the back of innovation. Innovation cannot mend what has been overlooked for years . If innovation is too late , not a part of the smart strategical decision , doesn't have a connect with the customers and heads south when you wanted to go east or west , it cannot be banked upon to create a profitable future for any organization.

Business of Carbon

In the times of uncertainty , a complex picture of energy demand will/has surface(d). The future will see an increased emphasis on carbon legislation and energy policies posing newer challenges to the innovators/engineers/marketers and the organizations servicing these innovations to the market. More stringent environmental regulations will bring in need for still lower emissions , continued investments in use of renewable and nuclear ( if India and Pak dont go to war ).

Carbon Trading is one such business segment which has been given birth by this hunger for lower emissions and cleaner environment for the better future mankind.

Where does this come from , as mentioned in wiki "Emissions trading (or emission trading) is an administrative approach used to control pollution by providing economic incentives for achieving reductions in the emissions of pollutants. It is sometimes called cap and trade."

A business area which has been already penetrated by some big energy industry giants is all set to make it a profit making cow of the future. Multiple business opportunities will surface. If we take a look at McKinsey Quaterly tutorial on CCS ( Carbon Capture and Storage ) , we can identify the growth opportunities or new business areas that an organization would like to venture.

They can be listed as:

1. Capture of Carbon - Orgs with expertise in fuel / its combustion and its related areas will focus here. Its already a big bet business segment for the companies and regulations will do them good to create a market , the onus will then lie of the marketers to create the right mix. India may/will have to be targeted with micro-segmentation since it will have lots to do with number of small scale manufacturing units varying across products within same region.

2. Transport - The technology used for transport of natural gas will be leveraged here. The emerging markets will be the places to hunt for the profits since the technology is existent , tried and tested now who gets these in the local market meeting the price expectations and the regulations will be the boss of the game.

3. Storage - Sequestration of Carbon dioxide away from atmosphere. Players in the O&G exploration and production area will find a adjacent business area to venture into, to inject the CO2 below the earth surface they will leverage their existent expertise. However their is still a new area to capture when the storage medium is ocean. The technology to look after will be to dispense with the carbon dioxide to make it the part of the global carbon cycle.

These regulations will bless the renewable power generation market and "wind energy" has already made a grand entrance into this market. With Wind providing cheap energy , no-emmison alterantive its certainly a business future to look for ...

Preparing for a digital future

Good Read.

Andrew Swinand Talks about :

• Focus on Emerging Markets.
• How focus is also on the similarities between markets and synergies between them rather than just regionally focusing on marketing strategies.
• Economic Crises leading to innovation? ( Do we need more voices repeating it :)....)
• Throws a little on the power of the digital media.
• VivaKi model which combines combines the power and scale of media and digital assets. http://www.vivaki.com/

A Simple Example

What sells to the female customers , the beauty products tops the list any given century any given second :) . ...

GSK launched a new version of their already established brand Horlicks for the Modern Indian Women . As quoted in BS "With no added sugar and low in fat, Women’s Horlicks promises to address the daily nutritional needs of the modern Indian woman. "

I saw a change in the AD which floated across the TV Channels between the duration when the product came first to market to now when it has been a almost a year into the market.

The initial AD focused on the statement of nutrition , how the women of today is deprived of the essential nutrients due to the hectic work-life schedule and how the new "Women Horlicks" would be the health drink that provides them with these essential nutrients , becoming the part of their daily life.

The AD which is published across now, carries a different "coat" over these factors, it focuses on the beauty of the women ( remember the opening lines of this writing :) ), the skin, the nails ,the hair. It carries ahead with it how essential are the nutrients which this drink would provide to keep them as beautiful as ever. It nourishes from inside ....

I would say a good and simple example of positioning...

Winning in India

Great Article on:

• How LG and Samsung have registered wins in the Indian Market.
• How a premium segment player is moving to touch the masses and how the volume driven company is moving to be an aspirational brand.
• Innovation : The key to success. What we have been reading all around comes with this practical example in localized market.
• Channelizing correctly and the sustaining your customers to stay strong in the market.

http://knowledge.wharton.upenn.edu/india/article.cfm?articleid=4338

What Nokia did in India was great , what these Korean duo are doing is phenomenal too.