Presentation on "IndEcoSocial Framework" delivered by Dr. Pallavi Mody & Dr. Anil Vaidya at Asia Competitiveness Forum 2012 in Thought Leadership Track

1. Asia Competitiveness Forum 2012
26-27 April ‘12 Delhi India
Competitiveness – Economic Development
Prosperity and Creating Shared Value
IndEcoSocial Framework
Dr. Pallavi Mody
Dr. Anil Vaidya
S.P. Jain Institute of Management and Research (SPJIMR) Mumbai, India
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2. The Changing World Economic Order
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3. China and India Emerge as the
Powerhouses of 21st Century
GDP Growth in India & China Size of the Economy India & China
Nominal GDP in US $ Billion
India China
(Proj)
14
12.7 13
1990 2000 2010 2020
12 11.3
10.4
10
10.1
9.6 9.4 9.6 9.9
9.5
India 300 500 1,600 4,000
9.1 9.2
8.1
8
6.8
7.4 China 400 1,000 6,000 12,000
6.4
6
GDP at PPP $ Billion 2010
4
2
India 4000
0 China 10,000
2004 2005 2006 2007 2008 2009 2010 2011
Source: IMF, Figures rounded
Source: IMF
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4. Businesses: The India Way
• Western Efficiency and Eastern Ethos
• Stakeholders vis-à-vis Shareholders
• Businesses and Socio-Economic Goals
• Businesses and Economic Development
• Prosperity and Shared Value
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5. IndEcoSocial Framework
1. The businesses that started with more out of
“Societal Concern”. Some Examples:
• Amul
• Lijjat Papad
• Fabindia
2. The IT industry and its impact on economic
development through clusters and shared values
creation through "IndEcoIT" model.
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6. The Story of Amul
The Co-operative Milk Procurement
• 3.1 million milk producer member families
• 9.4 million litres of milk procured per day
• Rs. 150 million ($ 2.99 million) disbursed
in cash daily
• 15,760 village societies
• 15 District Unions
The Co-operative Marketing
• 50 sales offices
• 5,000 wholesale dealers
• 7,00,000 retailers
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7. The Story of Lijjat Papad
Co-operative Entrepreneurial initiatives
of Female Empowerment
• 43,000 women
• 79 branches
• 27 divisions
• Turnover of Rs. 650 crore
• Exports Rs. 29 crores
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8. The Story of Fabindia
For Profit Business but with a Mission to
Protect Traditional Art and Artisans
• 40,000 artisans consider Fabindia as their
business partner and well-wisher
• Rs. 400 crore of turnover
• The artisans grew with the firm by learning
techniques for greater value addition
• Fabindia has become a brand that cares
• Fabindia earns the highest net margin in the
retails industry
• Valuation of Fabindia is soaring
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9. Amazing Developments in
India IT World
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10. The India IT
The Players and Environment
Indian IT
Firms
& their global
delivery
model Customers -
Global and
New Information Economy Domestic
Government and
initiatives Global dynamics
Indian
Society
& economic
Development
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11. Growth of IT-BPO sector
Social Year 2000 Year 2005 Year 2011
Indirect
Value 56,000 105,000 2,500,000 Employment
employees employees employees 9 million
Creation
Economic Year 2000 Year 2011 Urban & Bangaluru,
Value Rural Hyderabad
1.1% of 6.4% of
Creation Development & 2nd , 3rd
GDP GDP
. tier cities
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12. Shared Value Creation through
Clustering & Corporate Communities
• IT industry in India evolved through phases
– Low cost application development, BPO, IT services
towards
High Value Product Development, Engineering etc.
• Clustering and Interdependence has been mainstay of the industry
• In addition to economic value generation social value creation has been
high on industry agenda
– Direct involvement through sustainability efforts
– Indirect contribution through government initiatives
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13. E-Governance
Social value through transparency and efficiency
• Government of India and State Governments have launched various
programs towards
– Openness and transparency
– Efficiency in government processes
• Government-citizen interface - examples
– Land records, Income tax, Corporate affairs
– Agricultural support to farmers on rain, soil, prices etc.
– Medical help in rural areas through VSAT communication
• IT firms develop and implement government digitization &
communication projects
– In India as well as other countries
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14. Synthesizing two models: IndEcoSocial Framework
Social Entrepreneur Model
Social value &
Social Social Economic
Entrepreneurs cause Balance
Economic Indirect
Performance Social
value
Indian IT Thru
Firms Clustering
, Communities, I
nnovations &
Shared value Economic
creation Developm
Direct ent
Social IndEcoIT Model
value of Indian IT companies
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15. Thanks
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