Capabilities Management

1. Morphing – Adaptation to Emerging Economies
Managing the Business Software
K V Ramesh
November 21, 2006
Guest Lecture to the Rotary Club, Chennai
© 2006 K V Ramesh
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2. Dominating Economies Across the World
Return
Under Developed Nations
Agricultural On
Economy
Developing Nations
Investment
Developed Nations
Industrial
Economy
Service
Economy
Revival
Through Knowledge
Genetic Economy
Engineering
© 2006 K V Ramesh
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3. Paradigm Shift in Business Management
20th Century 21st Century
Application of Tools to Materials Application of Logic to Work
Industrial Economy Deploys Knowledge Economy Deploys
Depreciating Assets Appreciating Assets
(Plant & Machinery) (People Skills & Orgn. Knowledge)
© 2006 K V Ramesh
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4. Profitability Hierarchy
Market Segments Customers
Competency Management
Concepts Order
Strategy Management
Design
And R & D Fulfillment
Knowledge Capabilities
Service Capabilities
Processing Capabilities
Procurement Capabilities
© 2006 K V Ramesh
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5. Execution Skills – Project Management
Creative Risks
Financing &
Returns
Program
Management
Investor
Measures Opportunity
& Pipeline
Rewards Project Project
Tools
Contract
Employee Customer &
Management
Methods
Capability Delivery
Process
Organizational Learning
Strategies & Architectures
© 2006 K V Ramesh
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6. HRD vs. HCM
 Human Capital Management is NOT same as Human Resources Development
 HRD is often:
 Recruitment
 Development
 Compensation & Benefits Administration
 Performance Evaluation
 Termination Processing
 HRD is at times:
 Skills Inventory Management
 Counseling
 Resource Usage Policies Management
 HCM is the capabilities Management of an Organization
© 2006 K V Ramesh
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7. Defining Human Capital
Human Capital
is the Business Software (Capabilities)
that rides on the
Business Hardware (Resources)
to Generate Value
© 2006 K V Ramesh
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8. A view of the Business Software
Business Space
Strategic Disruption Generation
Management Talent Acquisition & Retention
Outsourcing > Best-in-Class
Development
This Collection
Technology Absorption
Management Practice
Is
Delivery
Intrinsic Value
Business Software
Perceived Value
Market
Management Realized Value Or
Redefining Value
Economic Value Capabilities Asset
Utilization Value
Resource
Management Environmental Value
Stakeholder Value
© 2006 K V Ramesh
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9. Towards Intrinsic Intelligence
 The Business Software should be independent of the Business Hardware
 Business Software becomes a Neuron
 Neuron Networks generate the best value
 Human body & mind is the classic neuron network driving the value
generation
© 2006 K V Ramesh
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10. In Summary Thank You
Interoperability
Reliability Portability
Business
Software
Scalability Reusability
Upgradeability
Manage the Business Software – Capabilities – Human Capital
Build Appreciating Assets on Aligned Aspirations Platform
© 2006 K V Ramesh
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