SYMBIOSIS INSTITUTE OF BUSINESS MANAGEMENT, PUNE

Innovation in Companies
Final Report on Case Analysis
MBA-1, Division C 10/6/2012

Submitted By: Sudir Choudhary (35248) Surajit Bhattacharya (35249)

Case Analysis Objective: To study the Innovation in companies Mode of Research: 1. 2. 3. 4. Data and Information collection through Web(Desk Research) Company visit/ Factory visit Interaction/Interview with company professionals Analysis and Report

Innovation Areas: 1. Innovation in manufacturing process( L&T) 2. Innovation in Services- Customer Experience- Tata Motors 3. Innovation in HR policies- Compensation and Benefits( Infosys) 4. Innovation in Employee engagement Programs- AccNet( E&Y) 5. Innovation in Process( Cheese processing in Goverdhan Milk Products) 6. Innovation in Marketing 7. Innovation in outdoor advertising 8. Innovation in supply chain management 9. Innovation in pharmaceutical Industry 10. Innovation in Companies a. Mahindra b. Bajaj Auto Focused Areas: 1. 2. 3. 4. 5. Innovation in Product Design/Construction Innovation in Marketing- advertising, brand building, customer surveys etc. Innovation in HR policies Innovation in Customer Services Innovation in Employee Engagement Programs

Table of Contents

1. 2. 3. 4. 5.

Introduction Why do companies go for Innovation? Worlds most Innovative Companies Indias most Innovative Companies Focussed Areas a. Innovation in Product Design/Construction b. Innovation in Marketing- advertising, brand building, customer surveys etc. c. Innovation in HR policies d. Innovation in Customer Services e. Innovation in Employee Engagement Programs 6. Conclusion

1. Introduction: In today's knowledge-driven economy, innovation is the prime driver of progress. India's ability to generate wealth and create social good will come to naught unless we monetize innovative ideas by unshackling entrepreneurship. For innovation to flourish, we need to fund ideas to take them to market. Without capital, even the most transformative ideas can die before they take wing. Amazon, Facebook, Google, Apple and most other global consumer Internet leaders today are product driven companies. Product is their core strength. They are (usually) good at sales too, but thats not where they differentiate. They are simply outstanding at building products, and consumers self-discover their products/services and stick with them. 2. Why do companies go for Innovation? Ask any group of senior executives why they think innovation has become such an imperative, and the answer is invariably, Because it drives growth. This is quite a reasonable and obvious way of thinking. Pushed into a relentless and never-ending race to grow earnings faster than the industry average, companies are increasingly turning to innovation as todays best bet for closing the growth gap. Trouble is, by thinking of innovation almost solely in terms of growth, many executives are actually missing the bigger picture. For most companies today, the real issue is not how to grow earnings by a certain percentage from quarter to quarter. Its how to avoid the big and unexpected downside. Because the thing that kills companies today is not whether they are growing by 8% instead of 12%; the thing that kills them is when they miss some turn in the road some fundamental change in the external environment that axes the share price by 50% and sends the firm into the toilet. This is what has wrecked so many companies in so many industries.

It might be a disruptive new technology that causes all the trouble, the way digital photography decimated Kodaks traditional film-based business. It might be a fundamental shift in customer preferences, lets say from gas-guzzling SUVs to economical, environmentally-friendly hybrid vehicles. It might be another companys game-changing business model; the equivalent of a Dell in computing, an Amazon.com in books, or an easyJet in air travel. It might be regulatory upheaval in the market, opening up the floodgates to a horde of aggressive new competitors, as we have seen in countless markets and in all manner of industries. Or it could be a lifestyle trend that suddenly turns millions of people off the food, or the drinks, or the clothes, or whatever else it is that you make.
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So, yes, of course top line growth is important; nobody would argue with that. Maximizing the upside is all well and good. But the real issue is: how do you minimize the downside? A lot of people would reply that minimizing the downside is about being careful and conservative; its about avoiding risks. In fact, its precisely the opposite. Minimizing the downside is about continually experimenting with new things, recognizing that we are living in a world where the old things can quickly lose their value and become irrelevant. In this new disruptive age, competitive strategies and business models dont last anywhere near as long as they used to. Therefore, unless a company is innovating deeply and strategically at the level of the core business itself economic growth can very quickly turn into economic failure, decay and even death. Of course, the financial risks of experimentation have to be managed too. But, essentially, in todays turbulent times, the only long-term insurance against the downside is rampant and radical innovation. Thats the real reason for the innovation imperative

3. Worlds most Innovative Companies In 2005, Business Week began creating a list of the worlds one hundred most innovative companies. It based this list on a Boston Consulting Group survey of executives who voted on the companies. A quick look at the list shows Apple at number one and Google at number two. Ok, intuitively that sounds right. But based on the methodology, the list is largely a popularity contest based on past performance. Do GE, Sony, BMW, and Toyota really deserve to be on the list of most innovative companies today?

Business Week list of most innovative companies (2005-2009) Business Week Rank 1 2 3 4 5 6 7 8 9 21 22 23 24 25 Company Apple Google Microsoft Toyota General Electric Procter and Gamble IBM Nokia Sony Dell Cisco eBay Walmart Southwest Innovation Premium Rank 1 2 3 4 5 6 7 8 9 21 22 23 24 25 Company Amazon Apple Google Procter & Gamble Starbucks Microsoft Nintendo Research in Motion Cisco Systems BMW Toyota Honda Sony Samsung 5 year innovation premium 57% 52% 49% 35% 35% 29% 26% 20% 19% -26% -26% -27% -28% -29%

To answer these questions, another list of innovative companies based on expectations of future innovations was developed. The best way to do that was to see investors- voting with their wallets and purses could give insights into which companies they believe are most likely to produce new products, services, or markets. The author of the book The Innovators DNA teamed up with HOLT( a division of Credit Suisse) that had done a similar analysis for The Innovators Solution) to develop a methodology for determining what percentage of a firms market value could be attributed to its existing
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products, services and markets. If the firms market value was higher than the cash flows attributed to its existing businesses, then the company shows an innovation premium. This is the proportion of a companys market value that cannot be accounted for from cash flows of its current products and businesses in its current markets. Investors give this premium because they expect companies to come up with profitable new products or markets. For example, Sony and Samsung have historically produced innovations in the consumer electronics industry, but recently investors havent seen large profits from them and dont expect to in the future. So the authors decided to generate their own list of most innovative companies based on their innovation premium. They focussed on large public companies (more than $10 billion in market value). Their ranking revealed that looking into the future, Salesforce. Com is ranked number one. Does it deserve to be at top? Investors seem to think so. Salesforce.com not only has led the charge with the cloud computing but has also introduced the AppExchange- which Forbes called the iTunes of Business software and which won awards from the Software & Information Industry Association. The AppExchange offers more than a thousand applications for business in much the same way that the iPhone offers a multitude of applications for consumers. Moreover, Salesforce.com recently unveiled Chatter, a new social software application seen as Facebook for business.

Innovation Premium Rank 1 2

Company Name Salesforce.com Intuitive surgical

Amazon.com

4 5. 6

Celgene Corp Apple Google

8 9 10

Hindustan Level/Unilever Heavy Electricals Reckitt Benckiser Group Monsanto Co. Bharat Heavy Electricals

Industry/Key Businesses Cloud Computing software for business Da Vinci system robots for robotic assisted surgeries Online discount retailer, Kindle, cloud computing Pharmaceuticals Computers, software, music devices, phones Software, primarily for information retrieval Household products

5 Year Innovation Premium 73% 64%

57%

55% 52% 49%

47%

Household products Seeds, genetically modified seeds Electrical equipment

44% 44% 44%

What is Innovation Premium? It is calculated first by projecting a companys income (cash flows, in this case) from existing businesses, plus anticipated growth from those businesses, and look at the net present value (NPV) of those cash flows. The NPV of cash flows from existing businesses is compared with a current market capitalization. Companies with a current market cap above the NPV of cash flows have an innovation premium built into their stock. The ranking is based on the innovation premium, which is a measure of how much investors have bid up the stock price of a company above the value of its existing business based on expectations of future innovative results (new products, services and markets). Members of the list must have $10 billion in market capitalization, spend at least 2.5% of revenue on R&D and have seven years of public data.Source: Book: The Innovators DNA co-authored by Harvard Business School professor Clayton M Christensen
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Why Salesforce.com Ranks #1 On Most Innovative List?

Salesforce.com once again ranks first on this years Forbes list of Most Innovative Companies. To understand the metrics at work here, take a look at the full list. We aim to capture the premium investors are willing to pay for future innovation. I recently caught up with Salesforces evangelistic CEO and co-founder, Marc Benioff, to talk about what drives disruptive ideas inside his company. His answer reveals a lot about the nature of real innovators: They adapt how they do it. As Benioff explained, for years Salesforce has looked within to push big ideas ahead. Those ideas often came from the outside customers and partners, the marketplace. But the drive to turn those ideas into products was an internal one. No longer. This year Benioff spent $1 billion, the most ever, acquiring two firms: Radian6 and Buddy Media. His rationale: We couldnt afford to wait. The initial spark was a video Benioff watched on YouTube showing Dells social media command center where the computer maker used Radian6 to watch its torrent of social mentions. Dell is a big Salesforce customer and Benioff is close with CEO Michael Dell. Game over, I thought. This company is doing exactly what we should do, says Benioff. These two deals will form the backbone of a new division within Salesforce, the Marketing Cloud, which will help brands know what is being said about them on social networks and then tailor messages to those audiences. Buddy Media places 10% of all ads on Facebook. Benioff has acquired 24 firms in all, and admits not all have succeeded. He is okay with failure, because thats part of risk-taking. Everyone learns something along the way: Innovation is a continuum. You have to think about how the world is evolving and transforming. Are you part of the continuum?

Source: www.forbes.com

Interview taken of Software developer working for Salesforce.com

sudhir choudhary <sudhirchoudhary27@gmail.com>

Innovation at salesforce.com
2 messages

sudhir choudhary <sudhirchoudhary27@gmail.com>

Fri, Oct 5, 2012 at 11:57 AM

To: sandeep singhal <sksworld10@gmail.com>, sksworld50 <sksworld50@yahoo.com> Dear sandeep, I am doing a project study on innovation happening in companies. I want to get some inputs from you on the innovation that your company and you are doing. On that front could you please answer following questions. 1. What kind of innovative approach or solution have you recently offered to your client? 2. Why did you feel the need to innovate and how did you do it? 3. Since you are involved in the salesforce technology for the last two years, what innovation have you seen happening in this space? 4. Why do you think continuous innovation is necessary in this business? Could you please reply me today itself. You may answer the question in general and are not required to divulge any confidential information if that may restrict you. Thanks & regards, Sudhir

Sandeep Singhal <sksworld10@gmail.com>

Fri, Oct 5, 2012 at 10:24 PM

To: sudhir choudhary <sudhirchoudhary27@gmail.com>, sudhir choudhary <sudch27@gmail.com> Hi Sudhir,

Please find my response inline.

On Fri, Oct 5, 2012 at 11:57 AM, sudhir choudhary <sudhirchoudhary27@gmail.com> wrote: Dear sandeep, I am doing a project study on innovation happening in companies. I want to get some inputs from you on the innovation that your company and you are doing. On that front could you please answer following questions. 1. What kind of innovative approach or solution have you recently offered to your client? It happened with me two times when I have offered some innovative suggestion to my client like : i) to maintain complete track of the requirement/issues on any third platform to keep clarity and to avoid any misconception in between. and will be able to touch our target as soon as possible. ii) to discuss about to real case scenario with end user without leaking any confidential information in order to make our product more capable to complete end your user's need. 2. Why did you feel the need to innovate and how did you do it? I always think to keep this thing on top of the mind before or while working in project because this is only the thing which does not written in nurture requirement as usual but may lead it in to good form of big product which may explore again some new ideas like enhancement parts of the product which we work on. I did this after thinking best to best and worst to worst scenario many time. 3. Since you are involved in the salesforce technology for the last two years, what innovation have you seen happening in this space? Yes Sudhir, good question. Salesforce itself is an great innovation example because in current local & global market, CRM is a back bone for any business from beginning to touch customer's real satisfaction level. Salesforce did this by providing such a strong, intuitive, user friendly "User interface" with strong security.which play most important part in current market. (for more information I need to take help from any knowledge source) 4. Why do you think continuous innovation is necessary in this business? From my perception. I believe innovation always lead competition and to chase it, again new innovations are required.This business gives us new challenges every day and we(developer to end user) love to face those.We get ample amount of ideas while resolving these challenges.

Thank you so much to give me a chance to write up on this such wonderful topic. I love to write more

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whenever you want. Could you please reply me today itself. You may answer the question in general and are not required to divulge any confidential information if that may restrict you. Thanks & regards, Sudhir

-Regards, Sandeep Kumar Singhal

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We tried applying the HOLT technique to Indian companies to come up to a Innovation premium score, but most of the Indian companies do not have the data required to calculate that index and the companies which are innovating do not have that data for that many years. Top 10 Innovative Indian Companies 1. Narayana Hrudayalaya Hospitals For bringing high-quality medical care to Indians' doorsteps. In addition to its network of hospitals offering everything from heart surgery to dialysis, the low-cost, high-volume provider started a new program last December called Home Health Care Services. Professionals administer care and treat minor illnesses in people's homes, curbing long and costly trips to distant and crowded hospitals. 2. RedBus For computerizing India's analog bus system. RedBus pulled more than 350 of India's estimated 2,000 risk- and tech-adverse bus operators into the digital age with a computerized reservation and bus tracking system. Travelers can book tickets and choose their seats over the phone, online, via SMS, or in person at 75,000 outlets, cutting out the fickle travel agent middleman. The ultimate goal: to fully computerize the nation's unorganized private bus operator market. 3. Flipkart F. or adapting the Amazon formula to local needs. Cash is king in India, accounting for more than 90% of the nation's retail transactions. This online retailer was the first of its kind to provide a credit-card averse population with the option of speedy, cash-on-delivery shipment of books, electronics, and other goods. With 2011 bringing more than $50 million in funding, the company plans on expanding its delivery network to 25 new cities, causing its Western counterpart to take notice: Amazon launched an Indian warehouse to meet the nation's unique concerns in February. 4. Eko For leveraging communities to ensure financial inclusion. Bank accounts and savings are a foreign concept to most Indians: Out of 1.2 billion people, less than 360 million use a bank. Eko created a mobile platform that lets its more than 180,000 users save and transfer money with the State Bank of India through SMS. Five hundred mom and pop shops--or kiranas--act as local banks, collecting customer info and recording 7,000 transactions a day through their own mobiles. 5. Tata Motors For still thinking small. Although India's largest automobile company increased the price of most of its vehicles last year, it kept its best seller, the Tata Nano, affordable at $2,500. But it didn't stop there. "The people's car" got a few upgrades in the form of luxe interiors, Holi-bright exteriors, and improved fuel efficiency--making the Nano one of the lowest CO2 emitting vehicles in the country. Tata Motors expanded sales of the Nano to all of India in 2011. 6. Wipro
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For creating Supernova, India's fastest supercomputer. Indian Space Research Organization and The Energy and Resources Institute are already using Supernova to process huge volumes of data to create virtual models on space launches and climate change. The result of three years' work, Wipro hopes to eventually reach 500 teraflops of processing power (one teraflop can zip through one trillion mathematical instructions a second). 7. Adani Group For harnessing India's growing solar power. Solar energy in India is poised to edge out coal as a cheap and viable power source by 2015, according to industry leaders. News of Adani's plans to build India's largest solar power plant in Gujarta hints at the nation's growing interest in renewable energy. Gujarta's government is already offering subsidies to homes and offices that install solar panels. 8. Tree House Education .throughout India are keeping some kids out of the classroom. But The Tree House has stepped in, offering a combination of Montessori and "play work" to children as young as a year old. With more than 200 preschools, Tree House Education runs the largest network of self-operated preschools in the country. 9. Naandi Community Water Services For showing the market can do good. Naandi builds village water purification plants that pump clean, filtered water into rural and urban communities. Government and individual donations fund the facilities; villagers pay a small fee (around 5 cents per liter, much cheaper than bottled water) for access. The organization, backed by Indian business bigwigs, including the chairman of Dr. Reddy's Laboratories, currently runs 460 plants, with a goal of reaching 725 by 2012. 10. ITC For providing farmers with the information they need to succeed. ITC's Agri Business division developed e-Choupal, a web-based program that provides India's farmers (who make up a majority of the population living under the poverty line) with the know-how to compete in the market. More than 4 million farmers log on to the site to read up on market prices, weather warnings, tips, and farming techniques.

Source: http://www.fastcompany.com/most-innovative-companies/2012/industry/india

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Focused Innovation Areas: a. Innovation in Product Design/Construction: Mahindra Yuvraj We created a tractor designed for small farming that is enabling farmers to mechanize for the first time.

Four out of five Indian farms are smaller than five acres (<2 hectares), and tractor size and cost means that only a small percentage of these farms are mechanized. Providing access to mechanization became the mandate for designing the Yuvraj 215, a 15 HP tractor that delivers trusted Mahindra quality at a fraction of the cost of other tractors. Through aggressive sourcing and four years of careful design, we were able to create a small, fuel efficient tractor with the same hydraulics as our larger tractors and able to haul up to 1.5 tonsat a price competitive with buying and feeding a pair of bullocks. The Yuvraj is making mechanization and a quantum leap in productivity possible for small farmers across India. The Yuvraj 215s low cost of ownership and best-in-class fuel efficiency is bringing mechanization opportunities to farmers with small landholdings across India and revolutionizing earnings capabilities. We designed the Yuvraj 215 for small farm operations. With one cylinder and 15 HP, the Yuvraj 215 is compact and easy to operate. We built it for long life and low maintenance, durability and dependability. It offers the first water-cooled single cylinder engine in the 15 HP segment, and its side shift gear is easy and comfortable to use. The Yuvraj 215 achieves a top speed of 25 kmph, the highest in its class. It can haul up to 1.5 tons. Its ideal for farmers ready to upgrade from bullocks or power tillers, or for farmers who
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need an additional machine for specific applications like inter-culture, power generation, or water pumping. Farmers who cultivate vegetables, tend orchards, or raise cash crops can all benefit from the Yuvraj 215s strong value proposition of affordability, power, and performance. Results The Yuvraj is selling faster than we can produce itover 2,000 units in the first 4 months of launch Farmers are reaping tremendous productivity gains of up to 4x times their original yields Golden Peacock AwardInnovative Products and Services, 2010

Mahindra Shaan

Conceptualized from the ground up, the Shaan has revolutionized tractor technology and marketing in India. It began when an observant Mahindra employee noted that Indian farmers are increasingly managing one crop per year and looking for supplementary income. He also saw farmers using tractors for transport and for hauling items such as construction materials and vegetables off the farm. Our Farm Equipment business put together a creative team to design and produce a multi-utility tractor in direct response to usage on the ground. With a built-in trolley, the Shaan is ready-made for both farming and hauling. At the same time, we set about changing the way tractors are perceived, redefining them as a lifestyle product, and engaging the youth who were increasingly leaving agriculture.

The Shaan is a modern multi-utility tractor with the ideal combination of looks and performance that will help you with more than just agricultureits multi-utility design will help
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you put your entrepreneurial ideas into practice. Weve built in a trolley with a payload of 750 kg so you can use the Shaan for a range of activities to suit your ambitions. With a top speed of 40 kmph and a 23.5 HP engine, the Shaan is fast enough to be not only a farming tractor, but also a goods or people carrier. Its got versatile style too, with a conventional tractor look coupled with chic features including a soft-top canopy and windscreen with wipers. Its comfortable seat and car-style clutch, accelerator, and gears will have you speeding through your work. In 2007, the Shaan was recognized with the American Society for Agricultural & Biological Engineers Award for being one of the 50 Outstanding Innovations of the Year. From agriculture to transportation, the Shaan is ready to support you in every business activity.

Results AE50 Outstanding Innovation Award from the American Society of Agricultural and Biological Engineers, 2007 The Shaan is the subject of a Harvard Business Review case study on innovation

Source: www.mahindra.com

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b. Innovation in Marketing- advertising, brand building, customer surveys etc. The Coca-Cola Company

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Source: www.coca-cola.com

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Case of Hindustan Unilever, worlds 7th most Innovative Company

Indias Hindustan Lever not only has been a consumer products innovator but has also used an innovative network - marketing approach to sell its products through thousands of underprivileged rural women throughout India. This has allowed Hindustan lever to sell in over 135, 000 villages and become the most trusted Indian brand used by two out of three Indians. Earlier, it wondered how it could reach millions of potential consumers in small Indian villages where severe constraints existed: no retail distribution network, no advertising coverage, and poor roads and transport. Collectively these constraints challenged its existing business model and produced a fundamental question: How might we sell products in small villages without any access to traditional distribution networks, advertising, or infrastructure? The answers ultimately surfaced from direct selling business models. In close partnership with NGO, banks and the government Hindustan Lever recruited women in self help groups across rural Indian to become direct to consumer sales distributors for its soaps and shampoos. The company also provided substantial training for them to succeed as micro entrepreneurs. By 2009 the innovative solution in highly constrained country context produced over forty five thousand women entrepreneurs selling Hindustan Level products to three million consumers in a hundred thousand villages.

Source: Book: The Innovators DNA co-authored by Harvard Business School professor Clayton M Christensen

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1. Detailed Analysis on Innovation in HR policies :

INNOVATIONS IN KEY HR FUNCTIONS Innovative HR practices build competencies and capabilities for superior and winning performances today and simultaneously create long term fertility for innovation of business ideas and strategies for future. The innovative strategies are formulated by the companies in the following significant functions of HRM such as Recruitment and selection, Learning and development, Rewards and recognition, Career planning, Compensation and benefits, Performance management, Leadership and development, etc. in order to ensure their organizational Excellence. 1. Managing diversity of workforce "Workforce Diversity" refers to policies and practices that seek to include people within a workforce who are considered to be, in some way, different from those in the prevailing constituency. Steps to manage diversity: Some of the steps to manage diversity in organizations are summarized as follows:

Recognition Respect Acknowledgement Valuing the differences among the people Clarifying Motivation Clarifying Vision Expanding Focus Auditing Corporate Culture Modifying Assumptions Modifying System Helping People Pioneer Continue Affirmative Action

2. Managing pressures for more labor rights in third world countries Political changes, external competitive forces, increased open trade, and frequent moves of MNCs around the world are forces working toward convergence in labor system. This occurs primarily as MNCs seek consistency and coordination among their foreign subsidiaries. 3. Managing a multinational workforce Organizations follow a growing strategic trend, thus entering foreign markets and create multinational workforces. The manager faces many issues with multinational workforce, and such issues may affect the organization's ability to adapt in the foreign market. Multinational
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workforces face many barriers, which include language differences, creating difficulty in communication.

4. Contracting out and out-sourcing HR functions Globalization has an effect on employment patterns worldwide. It is an important rationale of out-sourcing that it, on the one hand, enables an enterprise to concentrate on its core competencies, and on the other hand, it makes service work more productive. Outsourcing is needed not just because of the economics involved. It is required equally because

It gives opportunities, income and dignity to service work and service workers Gives more opportunity for more part-time and temporary work (especially among women, the elderly and students) Introduction of new technology Pushing for a more deregulated and flexible labour market More emphasis on productivity and quality Greater employee involvement in the design and execution of work Shifting the focus of collective bargaining from the nation/industry level to the enterprise level.

5. Changes in organizational design and reward management systems Globalization is also seen as changing organizational structures where expenses can move up or down as the business climate dictates (Garr, 2001). In terms of organizational design and human resource management, globalization means that there is need for more 'responsive' and 'flexible organizations'. Companies from the US have especially closed production plants in the US and created offshore professional and operations centres and relocated them to where labor is cheap. For example IT industries have moved to India's Bangalore City popularly known as the Silicon Valley. The employees in India are highly skilled yet they demand pay which is a fraction of what a similarly skilled person in the U.S would demand. 6. Downsizing the workforce The spread of economic competition and shareholder activism has motivated large firms to embrace the 'lean and mean' conception of control and thus implement downsizings. This has involved measures such as -flexible working hours, part-time work, different types of employment contracts to the standard ones familiar to collective IR flexibility in functions, so that employees who are multi-skilled are not confined to the performance of only one task. They can cover up for absenteeism, and make some jobs redundant. INNOVATIVE HR STRATEGIES Some of the innovative HR strategies that can be followed by the corporate in meeting the current global challenges are discussed as follows:
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1. Attract and access the talented In the current scenario there is a shortage of talented people, and hence there is a need to find out new ways to attract them to the organization. Some of the ways through which talented people can be attracted include stock options, more time off, learning and training programs, or the chance to work in other countries or try different roles. The companies also design good reward system and provide better career development opportunities so that companies can retain good people. 2. Develop and grow the potential Nowadays organizations need to recognize the aspirations of employees and focus on their growth and development. Many organizations provide job rotation opportunities to high performing employees from operations division.

3. Engage and align the Best Employee engagement has retained the focus of organizational leadership and many companies keep launching new practices to engage their employees. They are using innovative practices like "Loyalty Interview"- to find out what is it that makes its employees stay on, the feedback from loyal employees often reflects on the leadership style and is seen to work as a great motivation. 5. Transition Movement of talent within the organization and outside of the organization sends strong signals to the employees about the organization's care and concern. Right from the induction, which is often the first impression the employees carries, to the exit interview, the sensitivity displayed by the organization has a lasting impact on all employees.

Case Study:
1.Emersonhas been actively engaged in such projects in a number of PSUs and has a large share of the market in the industrial goods and services sector. Mr Khekale focussed on the HR function of Emerson India and told the students about the innovative HR practices that are required to meet the enormous demands for manpower in the energy sector and also the customized practices as adopted by Emerson. He gave the students an idea about the characteristics that a company requires to build in its human resource to gain tactical and strategic advantage in the cut-throat competition today. Also put forth were the methods adopted by HR to plan careers of individual recruits and succession planning. One of these is a slight variant of the balanced scorecard developed and used exclusively by Emerson to rate its employees worldwide. Mr. Khekale introduced the students to the organisation structure of Emerson India. He also
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mentioned the diverse needs of the industry that requires a wide array products and services, which is sustaining a burgeoning engineering and services industry in India. The requirement currently in the industry is twofold- to consolidate and to give the customer a better experience post sales. Mr. Khekale also exhorted the students to perform at their best so that they can position themselves as the future leaders in the industry before ending the lecture with a question and answer session. 2.Minter Ellison (ME) is a full service law firm with offices in the Asia Pacific and UK. While Minter Ellison Perth is a member of the national and international ME Legal Group, it is locally owned and controlled. Industry: The legal profession is known for its long and anti-social hours, competitive culture and intense pressure on staff to meet financial targets and personal performance indicators. Despite women comprising more than 50% of law graduates in many parts of the world, women lawyers continue to be disproportionately clustered in the lower echelons in managed positions, are assigned less prestigious work, and earn less money than men, despite the prevailing discourse of gender equality. 1. Background: In 2006, ME Perth suffered from a staff turnover rate of around 50% per year. Internal staff surveys showed low levels of staff engagement and the firm was experiencing decreases in revenue. External consultants were brought in, and recommended a root and branch reevaluation of the offices entire operation. In 2006, after prompting from one of the consultants, the current Managing Partner (MP) was appointed from within the firm and he led and continues to lead the structural change. Program profile: Work-life balance initiatives by their very nature need to be flexible. ME Perth works hard to meet the evolving needs of their people and provide the right forums and culture for the WLB arrangements to work. The firm recognises that the needs of employees are many and varied. Staff take-up work-life balance initiatives (FWA) for diverse reasons, including: family, study, working in the family business, second careers, transition to retirement, volunteer interests, health, house renovations and sporting interests. ME FWA include part-time, job-share, flexi-time, rostered time off, time in lieu and flexi-place (working at home or interstate), and range in length from a few weeks to a permanent arrangement. Paid parental leave includes paid leave of up to 14 weeks (after one years service) for the primary caregiver. Broader work-life balance initiatives include 5 weeks annual leave for senior staff; the ability to purchase additional leave; health and wellbeing programs (such as gym membership, subsidised in-house massages, yoga, pilates, and seminars); paid study/scholarship leave; an extra days paid leave to undertake volunteer work in the community; a counselling service for employees and their immediate family; deferred starting dates for graduates wishing to travel; and extended leave without pay arrangements. An annual Kids Day is held each
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October for children and grandchildren of employees to come to lunch in the boardroom and participate in a range of fun activities with parents or grandparents. The take-up rate of FWA is approximately 50% across the firm. Strategies for implementation: Provide high level commitment The MP believes a good team comes from using positive energy to empower others to be the best that they can be in an ethical way, which is the complete opposite of the command and control model. The MP makes obvious to all his commitment to FWA (reflected at a micro-level by his encouragement of FWA for those who report to him (the management team), through to firm-wide level by ensuring those on FWA continue to receive the same opportunities and recognition as others) and in doing so, reassures staff that the organisation is committed to FWA in practice. Lead by example Two partners and 5 of the 7 managers are currently on an FWA. Have ongoing staff input Formation of a staff taskforce in 2006, with representatives from all levels and departments in the firm, led to WLB initiatives being identified as a means of improving the business. At the same time the firms (now annual) climate survey was designed and introduced to gather feedback on partners and staff perceptions and opinions about working at me. Other means of engaging with staff include the biennial values review; regular MP and People and Development Manager meetings with different focus groups of staff; and one-on-one discussions between individuals and their responsible person or People and Development staff. Communicate with staff Communication about WLB begins during recruitment when the candidates preferred employment terms are discussed. After induction training, communication continues through fortnightly internal newsletters; the intranet Family and ME and an online discussion board. Engage with clients Firms can operate as though clients have 24 hours a day access to their lawyers. ME Perth have been discussing these perceptions with clients and sought feedback on how the specific FWA in place is operating. Where certain practice areas do not lend themselves to traditional FWA, such as part-time work, ME Perth makes full use of alternative FWA such as working from home arrangements to accommodate staff requests. Application, trial and review Staff interested in a FWA, are encouraged to discuss a proposal with their manager and/or the People and Development Team. Criteria for evaluation include the employees personal circumstances, client service requirements, impacts on the team, and the employees personal attributes e.g. reliability. Continuous innovation ME Perth encourage a culture of thinking differently where most policies and procedures are subjected to ongoing review and enhancement to reflect best practice. The firm takes the approach of being receptive to any request and tries to find ways to meet requests in a mutually beneficial way, rather than restricting FWA to a narrow list of prescribed types.
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Values led The organisations values are also a significant part of ME Perths culture. WLB initiatives are a key component of ME values, (including make it work, sustainably and success through collaboration). Change the business model The model that forms the framework for the business planning process puts people first and financial outcomes last, based on the belief that getting the preceding factors right (people, clients, wellbeing of the organisation) leads to financial success. Change remuneration Generally, performance and remuneration models in legal firms are based on inputs rather than outputs, with fee earners required to record as many billable hours as possible. Embed in Performance management Partners and staff are held accountable to the firms values through the performance management framework. Annual performance reviews and advancement applications include a self and manager rating on each of the five values, including a commitment to WLB initiatives. Evaluation of partners goes further to include a broader 360 degree review which is conducted by an external provider and invites self, manager, peer and team members ratings in terms of the 25 individual value statements. These results are then collated and provided to partners by way of a one-on-one individual feedback session with an external psychologist. Equity ME Perth was very aware that staff could perceive the use of FWA as primarily being for mothers, or as potentially impairing advancement. Communication is focused on the breadth of FWA available and the promotion of examples within the firm. Provide training and development Management recognised not only the business case for ongoing professional development, but the overwhelming desire of employees for these opportunities. Many training sessions are presented on more than one occasion to accommodate the needs of those on FWA. Adopt technology To support the needs of partners and staff on FWA, the firm provides remote access and a Blackberry to all senior staff and on application to any other member of staff who would benefit from the additional support. CONCLUSION:In the present competitive world, the companies are facing lot of skill shortage, talent crunch and attrition those reached historically height ever, that made the companies feel the internal customer also more important equally with external customers, so every company try to devise innovative HR practices to attract best talent , giving them nice environment to work with, that enables the company to retain talents, the above said practices are conceived and implemented and found successful by the leading companies in India.

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4.Innovation In Customer Services:

Innovation differentiates, and differentiation drives profitability. So, innovation wins. Except when it loses because you are so engrossed in using a new thing that you forget why you introduced the innovation: your customer. Areas of innovation - den Hertzogs model Thus den Hertog (2000) who identifies four dimensions of service innovation, takes quite a different direction to much standard innovation theorizing. 1. The Service Concept: refers to a service concept that is new to its particular market a new service in effect, or in Edvardssons terminology, a new value proposition. Examples might include new types of bank account or information service. In some service sectors, such as retail, there is much talk about formats, such as the organization of shops in different ways (more or less specialized, more or less focused on quality or cost-saving, etc.). 2. The Client Interface: refers to innovation in the interface between the service provider and its customers. Examples might include a greater amount of self-service for clients visiting service organizations. There is a French literature on service innovation that focuses especially on this type of innovation, identifying it as innovation in servuction. 3. Technological Options: these most resemble familiar process innovation in manufacturing sectors. Together, relationship management and on-going support can profitably serve a healthy segment of certain markets; and exceed the value of innovation.

Innovation at Services:
Wipro has established an Advisory Board and Innovation Council to invest in and manage innovation projects. Tata Motors has initiated a New Product Introduction process that defines business processes for new productstackling everything from understanding customer requirements to commercialisation, and everything in between. LifeSpring Hospitals Pvt. Ltd, which tries to bridge the yawning gap between the substandard maternity services offered by underfunded public hospitals on the one hand and expensive ones available in private hospitals on the other. Anant Kumar, chief executive officer of the Hyderabad-headquartered company, was working at Hindustan Latex Family Planning and Promotion Trust, selling condoms and pills to stop unplanned pregnancies, when he came face to face with the crumbling government infrastructure where the supposedly free maternity services could be accessed only after paying bribes to security guards and nurses. Acumen Fund, which invests in businesses that focus on their social impact, has invested $1.9 million (around Rs8 crore today) for a 50% stake in LifeSpring Hospitals. Funding
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from Acumen and 50% ownership by HLL Life care Ltd (formerly Hindustan Latex) has helped the firm grow from its opening in 2005 to nine hospitals today. There are other more independent ventures such as Dhruv Lakras Mirakle Couriers, which he quit Merrill Lynch to start and run in Mumbai in late 2008. Lakra employs 63 deaf adults and two able-bodied professionals (the reverse ratio for such employees is prevalent in a typical Indian company). Lakra says he has steered clear of investors because he did not want the fact of having to give commercial returns make him lose sight of his main objective, which was to help the six million deaf people in India. Innosight Ventures, which funds firms venturing into disruptive innovation, was here in India when the Tata Nanoundoubtedly a disruptive innovationwas being showcased, and was amazed at the potential that such companies had in India and also the rest of Asia. Village Laundry Service Pvt. Ltd (VLS), the full-service wash-dry-iron-deliver start-up that is much cheaper than boutique laundry services and more hygienic than the roadside dhobi services, is Innosight Ventures first incubation in India, done in 2007 with an initial investment of $1.5 million. While VLS Chamak, Mirakle Couriers and Pronto Franchising Pvt. Ltd, or Mr. Pronto, (a Chennai-based shoe repair chain) do not explicitly target the working poor, they all employ workers from this population who, in turn, can act as spokespersons to the community they represent. In India, a common problem for firms targeting the working poor is the suspicion of the target consumer. Kumar of LifeSpring Hospitals says that his patients although exploited by the government hospitals are suspicious of the LifeSpring Hospitals offering because simply put they think it is too good to be true. Many of the most powerful Indian companies grew by disrupting higher-cost Western competitorsInfosys is a great example of this. Western companies are fighting back on those companies home turf. Consider General Electrics well publicized reverse innovation efforts, where it develops new medical devices that are attuned to the needs of lower-income customers in emerging markets. Wouldnt it be a twist if the emerging giants lost the battle on their own turf? If they dont frame their domestic markets in the right way, they just might, he adds.

5.Innovation In Employee Engagement Program :

Co-creation through innovation is the new mantra in todays business. Enterprises are looking to engage employees across the globe to efficiently create new products, services and processes. Studies have consistently shown that engaged employees are more active contributors to an organisations growth. A poll on employee engagement shows that companies with high levels of employee engagement improved 19.2 per cent in operating income while companies with low levels of employee engagement declined 32.7 per cent.

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Global Workforce Study, 2007-2008

Companies with high employee engagement increased operating income by 19 percent and earnings per share by almost 28 percent Those with low employee engagement saw operating income decline more than 32 percent and earnings per share decline more than 11 percent

Global Workforce Study, 2010 Employees have extremely low confidence in their leaders. Employees say they want a senior leader who:

Is trustworthy: 79 percent Cares about the wellbeing of others: 67 percent Encourages development of talent in the organization: 56 percent Is highly visible to employees: 42 percent Manages financial performance successfully: 42 percent

So - engaged employees produce outstanding business results. But engaging them in this economic environment requires a major commitment from organizational leaders. The payoff is more profound when you consider that employee engagement doesn't have to be expensive. Rewards Rewardsboth financial and non-financialcan play an important part in an innovation initiative. However, at Brightidea we recommend that financial or material rewards be reserved primarily for public campaigns, where incentives are necessary to attract attention and drive large-scale participation. For example, GEs Ecomagination Challenge has attracted tens of thousands of participants motivated by the $200 million purse. Non-financial rewards can be:

Lunch with the CEO Assignment to develop and implement the idea, and see it through to completion Days off or workplace perks (e.g. premium parking spots, etc.)

By thinking outside the box and creatively tapping the spirit of co-creation and collaboration, non-financial rewards can have a positive impact on sustaining participation from employees in a variety of different internal innovation campaigns. Recognition Recognizing employees for their contributions can provide much more than just a psychological benefit. Management consultant and author Cindy Ventricle states that, as long as employees have what is considered a fair wage, money is not really a factor in how motivated they are.
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Instead, it comes down to feeling valued in the workplace, that their thoughts and opinions matter, and that there is opportunity for learning and advancement. Managers can recognize employees in a variety of ways:

Employee of the month plaque or featured on the company website or internal intranet, or campaign homepage Email newsletters or company blogs Department leader boards that highlight the top performers and create friendly competition Public acknowledgment during meetings or other events A personal note to say thank you

While these are all virtually without cost, they are essential to building trust between employees and managers, and can encouraging your employees to achieve more and continue to think outside the box. There are several practices to take into consideration when approaching employee recognition. Some of the most important practices are:

Consistency: Its crucial that recognition is consistent to avoid confusion and hurt feelings. It will also make it easier for other employees to model the desired thoughts and actions. Establish a guideline for desired performance or actions to help keep recognition consistent. Communication: Its important to be clear about what and why your employee is being recognized. Not only is it a chance to make it apparent that youre paying attention, but also you have the opportunity to provide other feedback areas of improvement, weaknesses, etc. Personalization: Different employees want different recognition. Some may want to be publicly recognized, others may simple want a pat on the back. Its important to always keep your recognition personal. A boilerplate note given to every team member does little to inspire them to go the extra mile. Reward Effort, Not Just Success: Enthusiasm and effort are as just as important to recognize as success. Even if it ends in failure, constructive criticism along with praise will build trust and encourage employees to take meaningful risks.

Streamline and Automate Recognition Engaging and recognizing employees on multiple fronts can seem like a daunting task. However, software solutions (such as Bright idea) can help you manage your recognition plans by creating a single platform for both employee collaboration and recognition from management. These solutions integrate recognition systems with features such as:

Blogs Reputation Points for system activity (log-ins, idea submissions, votes, comments) Homepage Leader board Widgets/Navigation
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Activity feeds and micro-blogging Collaboration Rooms Project Fan-pages

With dynamic user profiles and analytics on all system activity, innovation management software can also help you keep track and compare user activity and give you real-time statistics about top contributors and the impact on the company from concept to cash overtime.

Employee Engagement -YES BANK

YES BANK today is India's fastest growing Indian Bank, and has been built on the foundation of Professional Entrepreneurship. Since inception in 2004, it has created a paradigm in Indian Banking through Innovation & Excellence. YES Bankersthroughout the organization have fostered an entrepreneurial culture which has stimulated creativity, thereby enabling the bankto deliver superior, customer centric financial products and services to our valued clients, and firmly establishing a robust andhighly differentiated institution of lasting excellence. Over the last 6 years, we have leveraged on Creative Management Frameworks, Innovation and cutting-edge Technology, concurrently ensuring a Development Focus in our relentless pursuit to emerge as the Professionals Bank of India. YES BANK pursues a strong Employee Value Proposition of Creating & Sharing Value, with a vision to build an organization,driven by Professional Entrepreneurship, where all YES Bankers truly partner to direct, manage and accelerate thedevelopment of YES BANK as the Professionals Bank of India & the Bank For Future Businesses of India. The Human Capital Management practices at YES BANK are targeted at developing the YES BANK brand as an Employer of Choice. The bank has focused on attracting and retaining the best talent from India and abroad. Some of the key features of YES BANK policies and practices followed through the human capital lifecycle - acquisition,induction, performance management, career growth, retention and succession planning.

Standard Chartered Bank:

Background: The pace of growth for Standard Chartered India is considerable and anticipated to increase further. Headcount increased by 160 per cent to over 6,000 between 2007 and 2011. Approach:Set a clear and ongoing people agenda through a series of performance objectives that ensures we attract, select and retain the right employees. Implemented innovative procedures with a deep cultural resonance to publicly recognise high performers for their ontribution.Communicated aspiration for growth and priorities through town-hall meetings, and local leader success stories via video. Outcome:Indias engagement reached a world class level 4.42 on a scale of 1 to 5, where 5 is the highest score. This is based on the Banks global employee engagement survey, conducted by the Gallup organisation.

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A lot of Innovation in India is invisible A lot of this innovation is invisible, but innovation nevertheless. And it is this invisible innovation that is helping India. To start with, globally segmented innovation is now the norm. India is home to a dozen multinational R&D facilities where small armies of scientists work on global products. The way the work is divided, it becomes impossible to tell where the product was created. Yet global consumers rarely recognise India as the country of innovation because most of the innovation takes place in the B2B context. Case in point: The number of patents filed by Indian subsidiaries of US multinationals rose from 35 in 2001 to 800 in 2007. As Indians spend time working in these facilities, the country will inevitably begin to notice the benefits of a sinking skill ladder. What does this mean? Initially, MNCs were comfortable outsourcing only the most basic of research. But after a few years, they reach a point where they either move higher end work to India or take it to their higher cost home country. Most inevitably move work to India helping Indians climb up the skill ladder. Kumar and Puranam accept that for now it is bottom end work that is coming to India, but are confident that in time this will change. Other examples abound. Take the much touted global delivery model that IT companies pioneered in the wake of the Y2K scare. Companies like TCS, Wipro and Infosys used this opportunity to build their reputations and have since taken on more tasks that are integral to the business process of their clients. As India gets more important for global companies, there will inevitably be more Indians reaching the top of global corporations that would lead to more work being sent to India. Then there is outsourced work for global companies on a contract basis. Dr. Reddys Laboratories is a clear winner here. It set up Aurigene Discovery Technologies with offices in Boston to take advantage of outsourced work from Western pharma companies. And lastly, there is process innovation where companies like 24/7 Customer have blazed the trail. Its journey is particularly inspiring for call centres caught in the rut of a business with declining margins and increasing staff attrition. 24/7 Customer went from taking calls to reading minds. The company mined customer data to understand customer preferences. Soon it could tell that a man visiting a Web site on a Wednesday afternoon between 3 and 5 p.m., through a cable connection in San Jose... is more likely to buy product X than a woman visiting on Thursday between 10 and 11 a.m. through a dial up connection in San Antonio even though both spent five minutes browsing the jewellery section. That helps its agents make
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contact with the most promising clients. The authors term this the injection of intelligence. When you have millions of intelligent and overqualified people working at call centres, innovations like this are bound to happen. So what can cause a stutter in Indias evolving innovation trajectory? For one, Indian companies have been loath to allocate more money to R&D. At present, they spend 0.6 percent on research compared with 3 percent in the West. Technology companies in the US usually spend 5-6 percent on R&D and the number rises to 15 percent for pharma companies. Still, its not all gloom and doom. Two trends point to a bright innovation future for Indian companies. As they build their own research facilities, theyre bound to raid trained manpower from India development centres of the multinationals. When people working in these development centres set up their own firms, India will have a Silicon Valley-like culture of innovation. And thats when India should get its own iPod, Google

Our Conclusion:

Innovation in Indian business enterprises has been increasing steadily on the rise. More and more investments are being made in R&D leading to steady increase in R&D intensity. More importantly companies doing R&D have under them most part of the market. It is also apparent that R&D doing enterprises are more productive than the enterprises not doing R&D. But the R&D intensity of Indian enterprises is yet to rise to the level of Chinese enterprises. In few Sectors like drugs and pharmaceuticals which recorded the maximum net increase in R&D intensity the result is clearly visible but the other sectors mainly the manufacturing needs to take the cue. Barring L&T which has come 9th in the worlds most innovative companies, Indian manufacturing has to go a long way. Also, service industry has to do a lot in terms of creating its own products rather than being only support providers.

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References:
1. Dr. Sengupta Nilanjan & Choudhary Ray Manodip (2002) "Managing Multiculturalism and Diversity In Organizations", HRM Review 2. Gary Dessler, Human Resource management, Pearson Education(Singapore) pre ltd., Indian branch, 8th Edition. 3. http://www.citehr.com/107855-innovative-hr-practices.html 4. http://www.jigyasaconsulting.com/services/employee_motivation.htm 5. ttp://Awww.expressindia.com/fe/daily/20000308/faf05055.html 6. http://www.diversityworking.com 7. http://www.indianmba.com 8 .http://www.innovationexcellence.com/blog/2011/02/22/turning-employee-engagement-intoinnovation/

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