VOLUME 21
THE STRATEGY WALL
THE STRATEGY AND CONSULTING CLUB OF IIM ROHTAK
Special Purpose Acquisition Company(SPAC) Entrepreneurship in the Times of COVID-19
“Our Goals can only be reached through the vehicle of plan. There is no other route to success” —Pablo Picasso
Content 01
Special Purpose Acquisition Company (SPAC) “The Strategic Alternative to an IPO”
04
Entrepreneurship in the Times of COVID-19
07
India's GDP
10
Financial Analytics
12
Are Sweet Sugar’s Bitter Days Over?
14
Marketing Innovations in Industry 4.0
SPECIAL PURPOSE ACQUISITION COMPANY (SPAC) “THE STRATEGIC ALTERNATIVE TO AN IPO” RAMJAS COLLEGE, UNIVERSITY OF DELHI
Imagine the front door of your house is locked. What would
WHAT IS A SPAC?
you do? Take the back door entry, if the house has one. Right?
As the name suggests, SPAC is a company formed by a
Likewise, the Initial Public offer (IPO) is the front door for
team of institutional investors, professionals belonging to
companies seeking listing. But entry through this door is
private equity or hedge funds, and high profile CEOs for the
subject to certain criteria. Now what would a company do if it
sole purpose of acquiring other company (called the target
does not meet the criteria? The company will take the back
company) i.e. the one who is seeking listing directly through
door. Here comes the concept of SPAC. Virgin Galactic,
the back door or the one who sought it through IPO (i.e.
DraftKings, Opendoor and Nikola Motor are some of the
front door) but failed. SPAC does not perform any other
companies which took this route to get listed. Around 200
function or operation. Then how SPAC get the money for an
SPAC’s went public in 2020 and raised $64 bn in total
acquisition? Here’s the catch. The SPAC arranges money by
funding. And this spree is continuing in 2021 with 359 SPACs
making an IPO.
raised a combined $95 bn so far. So what is a SPAC? How exactly it works? Why it has become popular?
PAGE 1
The SPAC makes an IPO, raises the public fund, get itself
WHICH OPTION IS BETTER?
listed, and merged with the target company. This way the
The paper ‘A Sober Look at SPACs’ concludes that the
target company becomes public & listed. The staggering
first option of swapping shares & remaining invested in
fact is that the investors in an IPO have no clue about the
the merged entity actually causes loss to the investors.
prospective target company. It’s altogether a blind
How? Because of the capital structure arbitrage, a
investment. Then why investors are pursuing it? It’s the
strategy in which market mispricing is used to make
convincing power of professionals with great track record
profits. On a closer look, the shares of SPAC have a nature
that lures the investors to give money even to the blank
of bond as investors can get it redeemed. Therefore, the
check company.
actual option value i.e. premium over intrinsic value lies in the warrants. But the innocent investors attribute
HOW IT WORKS?
higher option value to the shares as it represents equity
SPAC offers units (comprising of both shares and
(i.e. ownership) and carries higher volatility (risk) in their
warrants) in IPO. The proceeds of the IPO are collected
minds. This leads to over-valuation of shares and under-
and deposited in an interest bearing trust account. The
valuation of warrants and ultimately it causes mispricing
team of SPAC has 2 years after the IPO to find the target
of securities. Now, the investors on exercising option 1st
company. If they fail to do so, the SPAC is liquidated and
sell the warrants at a very low price and hold the shares
all the money is refunded together with interest. However
of the merged entity rather they should have sell the
on founding the target company, the acquisition deal is
shares and hold the warrants (actual equity). The
signed subject to the approval of the investors in SPAC.
institutional and professional investors (i.e. sponsor of the
Once approved, the deal is finalized. But if they reject the
SPACs) do the vice-versa and make a huge profit out of
deal, the quest of search goes on for another target
this mispricing. In my opinion, both the options could be
company.
used simultaneously by redeeming the shares and
On materialization of the deal, the investors can either:
holding the warrants to avoid the risk of loss.
Swap their shares for the shares of the merged entity or Redeem SPACs shares or warrants to get back the original investment plus the interest accrued in the trust account.
PAGE 2
WHY SPACs?
DISADVANTAGES OF SPACs
The SPAC model offers the following advantages:
Post-merger, the wealth creation depends on the
The Private Company is not required to follow
target company. As stated earlier, the investors have
strenuous path of IPO.
no idea about the target company. Therefore, inexact
No rigorous due diligence.
evaluation (due to absence of intense due diligence)
It helps in raising public funds quickly. Generally, the
of company’s functions by SPAC team can cause
deal is finalized within few months as compared to 6
investors in the long-run.
months in case of an IPO.
SPAC may end up paying more for the target
It saves time and cost which otherwise is involved in
company due to its bargaining power.
an IPO.
The target company may suffer if the SPACs
The target company enjoys negotiating power in
shareholders reject the deal.
relation to the terms of the deal especially the valuation. It can fix its valuation with the SPACs team.
WHAT DOES THE FUTURE HOLD?
This flexibility is not available in case of an IPO.
The growth of SPACs does not seem anywhere near to
As the target company can fix its valuation, it helps to
slowing down. SPACs are garnering more and more
reduce the risk of volatility and uncertainty which is
funds each year. Besides being the smart alternative, it
common on the day of listing.
can actually contribute to the real economy as it
The small and mid-size companies get influx of public
facilitates the listing of private companies (especially
capital for R&D or brand promotion which is
start-ups). One point of discussion could be the fact that
otherwise difficult for them.
the average return from SPACs merger during 2015 to
Access
SPACs
2020 fell short of the average return for investors from an
management team. This enhances the confidence of
to
professional
expertise
of
IPO. However, most companies decide to remain private
the investors.
due to the concerns over listing process. SPAC is solving this problem and thus it will continue to be backed by many companies in the near future.
PAGE 3
ENTREPRENEURSHIP IN THE TIMES OF COVID-19 SYMBIOSIS INSTITUTE OF BUSINESS MANAGEMENT, BENGALURU
The year 2020 brought one of the worst crises that
As soon as COVID-19 spread its reach globally and
humanity has ever had to face in the form of a virus
economies all over the world began to go downhill, the
called severe acute respiratory syndrome coronavirus 2
go-getters of the world grabbed the opportunity to
(SARS-CoV-2), which disrupted the globe's supply chain.
create something right out of the worst. Be it a group of
While there is a cry for help across the industry
high school students from Atlanta who started an
worldwide, this crisis presented itself as an opportunity
organization to deliver free meals for hospital workers
in
and
or a group of engineers from Colombia who build low-
opportunistic kind of all businessmen, whom we call
cost ventilators from scratch; innovators worldwide
Entrepreneurs.
started creating solutions to the problems encountered
A Mckinsey survey across industries mentions that more
during the pandemic. Indian MSME sector also found
than 90% of executives expected the fallout from
ways to sustain their market position by pivoting to
COVID-19 to change the way businesses operate in the
other products and services, which had newfound
past intrinsically. Moreover, 3 out of every four executives
demand and very little competition in the market-
agreed that these changes across industries brought out
hand sanitizers, masks and PPE-based kits, and other
by COVID-19 would pioneer extensive opportunities.
products, which suddenly found a spike in demand
disguise
to
perhaps
the
most
optimistic
and were short in supply while on the other hand, The other side of the coin is that the number of
doorstep delivery and Edu-tech were the services with
opportunities has increased tremendously, the risk-
a sudden ascended demand in the market. These Covid
taking capability or rather willingness to innovate has
inspired innovations are excellent business models and
witnessed an enormous decline (Pharmaceutical and
can be easily turned into sustainable businesses that
Medical
will continue past the immediate crisis.
being
an
exception).
Furthermore,
it
is
understandable since more and more companies would instead focus on recovering the losses and stabilize their short-term issue than explore the uncharted territories.
PAGE4
The businesses like online shopping, food delivery, video gaming, or video conferencing industries enjoyed the benefits of pent-up demand, which led them to exit their survival mode and get back into a profit-making mode. However, it is an entirely different story for businesses in the hotel, restaurant, retail, entertainment, or sports industries. These sectors are considered a big "NO! NO!" from an innovation or new investment point of view. Start-ups like Ethereal Machines (a Bengalurubased start-up), Helyxon (Based in Chennai), Staqu (From Gurugram) have paved the way to fight the pandemic back by providing cutting-edge tech-based solutions. Lockdowns due to pandemic prompted us to devise a new way to carry on with the communication related to since
live
conferences
and
emerged as a significant market player in this pandemic. Zoom, the video conferencing service providers, stepped on the peddle and turned this opportunity to their favor by providing a relatively simple solution to a very complex problem. What differentiated zoom from the rest of its competitors is the simplification of its UI (User Interface) which made it easier for even a tech-novice to access it comfortably. Sectors Confronting the Pandemic "The new normal," a slang widely used during the peak pandemic period. Let us look at some of the
The Age of Webinars
work
A company that was barely heard about before
face-to-face
engagement activities were out of the question for an inexplicit duration of time. Moreover, the obvious method to do that was through webinars and online sessions. Customer engagement was also made a part of these digital discussions. Furthermore, that is how a sea of webinars started emerging across industries. Hosting of events and even award ceremonies were organized in an online mode. Government officials began to use online modes as the only method to communicate even
sectors of the Indian economy which adopted the new normal, passed their survival test stoically, and now will be reaping the benefits that the pandemic has brought to themDigital and Internet Businesses- "Data is the new oil," this has never been proven righter than during a pandemic. Data analytics has always been a value proposition. With lockdown in effect and the world at a halt, people started spending a longer time on social media; advertising industries quickly utilized this opportunity by paying more attention to content marketing.
the official matters.
PAGE 5
Tracking consumer behavior patterns and their online traffic patterns and analyzing this data became essential data analytics elements that organizations can benefit from to boost their online sales. FMCG and Retail- The supply chain disruption created a hefty dent in this industry, but the essential commodities sector is not one of those which would go down that easily. Post pandemic, this sector has found new and better ways to fulfill the demand for products by providing value-based services. Local Kirana shops were witnessed providing various e payment methods and athome delivery even in the country's remotest
Conclusion The COVID-19 pandemic was one of the worst events in human history. The virus may not have proven to be lethal for humanity, but it was undoubtedly fatal for the world economy. Nevertheless, remembering the Survival of the Fittest theory of Charles Darwin in a nutshell, "Whatever doesn't kill you, makes you stronger." Industries across the globe were able to adapt themselves, get into a survival approach, and adjusted/corrected how to do business. Furthermore, the world entrepreneurs once again proved that no matter how bad the situation, where there is a will, there is a way.
locations, boosting the slow pace of digitization within the nation. Healthcare Sector- The healthcare sector showed us where exactly we were lacking and how this sector can be the perfect start for a budding entrepreneur considering the current challenging times. The demand for both products (Oximeters, PPE kits, Masks) and Services (Pharmaceutical deliveries, Mental Health experts) has witnessed a sudden necessity.
PAGE 6
INDIA'S GDP MANAGEMENT DEVELOPMENT INSTITUTE MURISHABAD
Recently new data was released about GDP of the
And second in 1979-80. When the GDP had fallen to
country. According to it, the annual GDP growth of
-5.2%. There were two main reasons. First, there was a
the country in the last Financial Year, in the Financial
drought in the country because of the Agriculture
Year of 2020-2021, has touched -7.3%. Since the
Production. Second, there was revolution in Iran
independence of the country, there has never been
because of which the petroleum supply to the country
such a terrible annual GDP Growth Rate in the
was quite disrupted. And event worse than these two
Country.
events was during the Covid-19 pandemic, when the
It was the worst GDP Growth Rate in the history of
country’s
our country. Ever since the Independence of the
Obviously, India isn’t the only country to be facing this.
country till today, the annual GDP Growth rate was
There are 166 countries around the world sees negative
negative five times only. Only two of them were
growth.
during major times. First in 1965-66, when the
The Government would like to shift the blame wholly on
country’s GDP fell down to -2.6%. The reason for it
the pandemic. But we know that even before the
was that we were at war with Pakistan. And because
pandemic, the GDP Growth Rate of the country has
of the war, the economic situation of the country
been falling after 2016-2017.
GDP
Growth
Rate
has
reached
-7.3%.
was terrible.
PAGE 7
But the good news is that the GDP Growth Rate of the
A year when the majority of the people became poorer,
last Quarter was positive (+1.6%). And the RBI expected
some were pushed in poverty, in the same year, the
that the growth rate of the Financial Year would be
multibillionaires of the country, become richer.
-7.5%, but it was only -7.3%. So that’s good news too.
Why did this happen? Lets discuss some basics. GDP is
And for the next year, it is being expected that if there
made up of four main components. Consumption,
is no destructive third wave in the country, things
Corporate
remaining as predicted, the outlook of the future looks
Exports.
positive. The GDP Growth Rate can be anywhere
In the last 1 year, the Private component was affected by
between +7% to +9% next year. But the biggest question that We have ask here is this; What does this number means? Can this GDP figure reflect the burdens of a citizen, or the conditions and situations that a common man is going through in the country? A household survey was done by the CMIE, that showed that the income of 97% of the Indian population is less than the income of the last year.
investment,
Government
Spending,
Net
the most by the pandemic. People lost their jobs, or their salaries reduced. Because of all these, people didn’t have the money to spend. And so, private consumption fell a lot. But things like Government Spending depends on the government. If the government spends more, it will drive up the GDP. From here, you’ll start where things went wrong. The citizen is suffering through, the conditions that a common man is facing, how is it not reflected in the GDP figure, this is small example of it. If the government spends a lot of money and the private consumption falls by a lot, the GDP will not fall down as much because of the increase in Government Spending. And the Government spending did increase last year. The area on which the government spends matter a lot as well. P. Chidambaram, a former Finance Minister, says that the government should increase its spending. But not on any just project like the Central Vista, where a lot of money will be spent this year.
PAGE 8
Chidambaram suggests that the government should
The next problem is that from the perspective of the
spend in such areas which will put more money with
GDP, the bigger the thing is, the better. But in reality, is
the people. This will lead to an increase in the
it not always so. The more the financial sector kept on
Private Consumption component as well.
going and becoming out of control eventually leads to
Another interesting problem with the GDP indicator.
a financial crisis. An it is worse with perspective to
For example, to make a low-quality road again and
environment because most of the natural resources are
again due to corruption. But for the GDP, this is
limited. But to maximize the GDP we need to keep
actually a good thing. Similarly, there are numerous
increasing the consumption.
useless activities in the country and the world at
But GDP is still a very important indicator regardless of
large, that do increase the GDP but in reality, neither
the limitations and problems. Because the GDP gives
are the people benefitted by it nor does the country.
an overall idea of the economy, to judge the economy.
A problem related to it is that maximizing GDP does
It will continue to be the important indicator in the
not mean that the happiness of the citizens is
coming years as well. The things that the GDP hides to
maximized. Neither does it mean that efficiency or
uncover them, we need to examine the other
convenience is maximized.
indicators.
The next problem is that the GDP is only an aggregate. It does not tell you about the distribution of wealth in the country. If only 10% of the people are very rich in the country they earn the most and control the economy of the country, Their spending can lead to the rapidly rising GDP even if the 90% are extremely poor. This inequality can affect the average a lot. And it is likely seen in our country as well. If we check the GDP for the common people then that GDP might be way worse that it is now.
PAGE 9
FINANCIAL ANALYTICS IIT MADRAS
Some fancy terms like ‘Analytics’, ‘Data Science’ and
In addition to that, financial institutions and
‘Machine Learning’ never go out of the earshot and
companies use analytics not just to maintain
they definitely are not going out of fashion. All these
customer databases but also to provide them with
terms loosely connect to data and its analysis which
personalised suggestions and recommendations
caters to better decision making. So, what happens
regarding the financial products they might be
when such analysis is performed on financial data?
interested in next. This not only helps them retain
Let's dwell deeper.
customers by improving their experience but also
Major forms of financial data exist as assets, equity,
helps the company in analysing how their
liabilities, income, expenses and cash flows. But the
customers behave to the trends the former might
categories of data in their datasets could vary
be setting, how their customers behave in a
depending on the type of service or product the
specific financial condition, the choices of their
company is rendering. And what type of data is being
clientele while building a bigger one at the same
used for analysis depends on what the objective of the
time and in categorising people based on how
company is for involving ‘analytics’. Some of the key
much risk they are intending to take. This helps
objectives of performing financial analysis on these
them design better machine learning algorithms
datasets could be to accomplish set goals on time, to
which inturn can be used to better their existing
make informed decisions, to build dynamic profit loss
products, hence increasing the revenue. Apart
statements and to keep an eye on real time sales and
from that, machine learning is used to make
revenue generation.
interactive chatbots which can assist the users
To begin with, assessing the amount of damages and
through the necessary procedures to follow for a
worthiness, risk analysis and management are of
transaction, involve itself in knowledge transfer by
paramount importance to any given company. All
conveying the relevant information in a layman’s
these can be easily measured and predicted at any
language, maintain, sort and structurize data
given time with the power of data analysis. Making
inputs provided by the users for easy retrieval later
strategic
pertinent
and perform sentiment analysis based on the
interpretations from the analysis helps the company
feedbacks, suggestions and ratings provided by
change relevant criteria while paving the way for its
the customers with which the company can find
prosperity and better security.
out the liking by its customers of any specific
decisions
after
studying
the
product
or
service
being
rendered
by
the
company.
PAGE 10
Natural language processors which are auto
TBefore the advent of analytics or introduction of its
regressive models come in handy when in need.
usage in financial institutions, companies had to use
GPT-3 by OpenAI and Jurassic-1 by AI21 Labs are
spreadsheets to maintain databases and had to look
the biggest and the best language processing
after their compilation of codes that they used.
models ever made, with both of them being able
Harnessing the power of analytics has now given
to handle over 175 Billion parameters. One another
them an edge making their lives a cakewalk.
reason for financial institutions and companies to
Customers no longer need to stand in never ending
stick to analytics is algorithmic trading. This
queues to make transactions, all the undertaking
requires making predictions for future markets
and activities can be simply done online, hasslefree.
based on the inferences drawn from huge data
In conclusion, it can be stated that both the
sets. All this involves complex mathematical
customers’ and the financial service providers’ lives
formulae and accurate calculations which these
are basically a cinch. Financial analytics is not only
machine learning algorithms can compute with
catering to the present but its interpretations and
lightning fast speeds. Certain other reasons for
betterment is making the companies stay one step
financial analytics could include fraud detection
ahead, preparing them for the future. The progress
by looking for patterns and outliers in the
of the companies only means secure and effortless
transitions being made by their consumers and
lives for its customers. All these companies are yet to
clientele, customer data management, business
get more and more edges as ‘Financial Analytics’ has
reporting and for finding out its own and its
a long way to go.
competitors financial status.
PAGE 11
ARE SWEET SUGAR’S BITTER DAYS OVER? SHRI RAM COLLEGE OF COMMERCE, UNIVERSITY OF DELHI
Commodities have enjoyed a sensational year, be it
Why has this industry become an immediate
the stock market or the government schemes, they
target of the government in recent times? Is it an
have been the hot topic everywhere. One such
achievable target? Doesn‘t it affect food security
commodity that has enjoyed a remarkable run is
or is the government trying to kill two birds with
Sugar. A commodity despite being sweet, tasted
a single stone?
bitter for the investors because it had been on a
Before finding answers to these questions, let's
negative trend for many years. The turn of the
first understand Ethanol blending capacity. So
decade spelled misfortunes for many but it has
ethanol, made from molasses and grains, results
surely increased the sweetness of sugar for those
in fuel when mixed with petroleum. Thus, the
concerned. Global demand, rising prices and
government plans to increase the ethanol’s
increased government support are some of the
blending capacity with petroleum.
reasons that have led to these good times. Ethanol,
Now, the answer to the above questions lies in
a key by-product of the sugar industry, has been
the fact that the government plans to cut down
the center of attraction in major government
oil import bills and fight the climate change
rulings and this has impacted the sugar stocks and
battle by shrinking carbon footprint. Thus, this
sugar industry in a positive way. Will the sweetness
brings a great positive impact on the economy,
increase further or will it stabilize is something that
by promoting ethanol as an inexhaustible non-
everyone has their eyes on.
polluting fuel. A few government officials believe
To begin with, ethanol supply for the present year
that this helps in achieving multifold objectives
2020-21 is more than 300 crore litres which is a
while a few caution the government to maintain
remarkable achievement, considering it is only a
balance in food security needs.
by-product. Not only this, the central government also plans to achieve a blending target of 20 percent by 2025 by increasing the investment to at least Rs. 41,000 crore in the ethanol sector.
PAGE 12
Now let's quantify these facts and understand the
The turn of the financial year brought in a ray of hope
government's blueprint to achieve its set target. India is
for many sugar producing companies because of the
the third largest oil consumer in the world after the US
positive news that was floating around regarding this
and China with oil import bills of over $100 Million in the
sector. A sector that had witnessed a rigid 5 years in the
past two years. This clearly justifies the inclusion of the
stock market where little or no movement was seen,
Ethanol
the
suddenly saw a huge spike after 1 April 2021 and this
government's radar. The government plans to set aside
rally continued till Mid-July. Shares of all ethanol-sugar
sugarcane for the increased production of ethanol. This
producing companies touched new highs and a
solves
employment
deadlock seemed to have broken. Shares of Dhampur
opportunities in rural areas and boost in agricultural
Sugar Mills, Balrampur Chini Mills, Triveni Engineering
economy.
and many others doubled within a span of 4 months. A
The Union government modified a scheme in order to
sector that interested no investor saw trading in huge
promote ethanol production in the country. Under this
volumes. The shares surged almost 100% and the
scheme sugar mills will be provided cheaper loans to
brokerages continue to feel that there is a huge
set up ethanol blending factories. On the other hand, oil
potential that is still left to be tapped. So the entire EBP
marketing companies are going to be given assurances
clearly justifies this boom in the sugar producing
of buyers for the next 10 years. Interestingly, India is the
companies.
Blending
two
targets,
Programme,
firstly
EBP,
increased
under
second largest producer and largest consumer of sugar globally. This acts as an advantage for the country.
To conclude, if we go by the numbers, the demand for
However, in this extremely appealing process and
sugar is going to increase in coming years as India is
boom, the major problem lies in the fierce competition
being seen as one the young markets in sugar
between food and fuel crops for fixed resource, land. As
exports.Sugar production has touched all time high and
always, increase in production of cash crops for food
the companies involved in manufacturing are reporting
and not fuel is a matter of great concern. Another
unbelievable profits. This has spelled good times for the
problem lies in the interstate movement of ethanol. To
investors as well as the manufacturers.The government
ensure smooth transport of ethanol across the country,
support has regenerated a dead sector that was being
the central government made certain provisions under
looked upon by everybody. However, the government
the Industries Development and Regulations Act.
also has withdrawn the export subsidies that were
However, the problem lies in the fact that only 14 states
earlier given to this sector for the September quarter.
implemented it.
Although this news has little or no relevance in comparison to what the government is planning for this sector. However it definitely lays emphasis on the fact that the current benefits are being withdrawn from the sector for benefits that will be reaped after 4-5 years. So a similar pandemic like uncertain situation can shake this industry heavily. Will the industry continue to blossom on future prospects or will it lose its charm in the coming years, we will leave it for time to tell.
PAGE 13
MARKETING INNOVATIONS IN INDUSTRY 4.0 SYMBIOSIS INSTITUTE OF MANAGEMENT STUDIES
As of 2011, when a group of Germans pooled their
In Industry 4.0, Marketing innovations mean the
ideas
their
digitization of products and services, which helps
manufacturing industry, the term Industry 4.0 has
companies recognize how their services and products
been officially adopted by the professionals. To make
are being utilized, improve their current products,
this vision a reality, however, technology has only
create new ones based on usage data, and create
recently developed. Industry 4.0 or the Fourth
digital business models to enable them better access
Industrial Revolution refers to the new stage of the
to customer satisfaction.
industrial
on
Customers and other market participants, such as
interconnection, automation, machine learning, and
business partners or suppliers participating in a large
real-time data. Innovative interconnected technology
digital business ecosystem, should all be considered
has revolutionized the way parts and products are
as stakeholders of the ecosystem. Considering this,
designed, produced, and used. This is a combination
we can form 5Cs of marketing in Industry 4.0
of automated, improved communication and self-
(Nosalska & Mazurek, 2019):
monitoring, smart machines that can diagnose
a) Co-operation
problems without the need for human intervention.
b) Conversation
This Industry 4.0 is based on 6 key principles:
c) Co-creation
1) Interoperability
d) Cognitivity
2) Virtualization
e) Connectivity
to
improve
revolution,
competitiveness
which
mainly
in
focuses
3) Decentralization 4) Ability to work in real-time 5) Service orientation 6) Modularity and configurability
PAGE 14
Ways Industry 4.0 can change the ways of Marketing: Evolution of Sales Channels: Through Industry 4.0 technology, digital information from various physical
Enhanced Productivity through Automation and
and digital sources can be combined and shared,
Optimization: As manufacturers around the world
such as the Internet of Things (IoT), advanced
integrate automation and new technologies into
sensors, predictive analytics, artificial intelligence
their
(AI), or cloud solutions. By effortlessly integrating
Companies are working with higher efficiency and
with other systems, these technologies can capture
higher employee productivity. For employees, their
information and establish digital records, providing
work portfolio is becoming less repetitive and more
real-time
visualization.
demanding.
As
global
Predictive analysis can be coordinated with different
automation
and
new
other technologies Internet of Things(IoT), machine
operations, as can be expected, different innovations
learning, Software-as-a-Service (SaaS), and cloud
are impacting a variety of occupations and fields,
solutions
leading to major changes in workers and business
predictive
to
assist
analysis
and
traditional
manufacturing
operations,
the
results
are
encouraging.
manufacturers technologies
integrate into
their
companies to understand customers and determine
processes.
potential sales targets better.
Digital Marketing and Marketing Automation: Digital
Strengthened Direct Contact with End Customers:
mediums like search engine, social media, e-mail,
With such swift advancement of technology in this
marketing and others are used by businesses to
new world, the end customer establishes direct
communicate
contact with the manufacturer at the beginning of
customers. As a result, companies can reach a much
the purchasing process. This helps manufacturers
larger audience than with traditional methods, and
learn
avoiding
they can target the prospects who are most likely to
intermediaries. After initial sales, interconnected
purchase their product or service in the future. It is
products
economically
directly and
from
customers
technologies
provide
revenue
with
better
current
option
and
than
prospective
traditional
opportunities that were previously not easy to
advertising. In Industry 4.0, Marketing Automation
obtain. The Internet of Things expands relationships
helps us use marketing actions based on intent to
by providing seamless connections and using it now
convert site visitors into leads. It helps us to
to provide updates, service additions, and even new
individualize our messaging to reach out to specific
features throughout the product lifecycle; it has
customers. With the help of automated messaging,
vastly changed the way modern sales are done. Sales
we can nurture leads down the funnel. All-in-one
and marketing now interact directly with customers
marketing and sales platform increase online sales
after the sale and throughout the life cycle providing
and revenue through better sales processes and
important fixes and upgrades along the way.
targeted marketing.
PAGE 15
New Target Audiences: Marketing innovations
Incorporating
help to understand customers better. Through
process automation The introduction of 4.0 tools will
social networks, credit cards and other Internet
result in a significant shift in the workflow. This is
footprints,
relevant
primarily a matter of streamlining the production
information about everyone. By processing big
process. Workflows have changed as a result of
data, they can gain a close understanding of
changes in the way work is organized. As a result of
customer
all of this, companies' organizational structures will
companies
behavior
will
have
and
adjust
their
IoT
and
other
technologies
into
communication mix according to their needs,
change,
thereby gaining greater satisfaction. Improving
abandoned.
communication with the target group helps to
It
acquire new customers. Each marketer tries to
companies are focused on quality and precision
provide an enhanced consumer experience so
processing as a competitive strategy. The opposite is
that products and services can be personalized.
also true: Industry 4.0 increases production efficiency
Impacts: The impacts of Marketing innovation,
and lowers costs. The price may then be the
especially
in
Industry
4.0,
are
huge
and
will
and
traditional
increase
line
models
competitiveness.
will
be
Industry
4.0
competitive advantage for a company.
noteworthy. It would improve Productivity. Due to increased productivity, less time will be consumed. It's important to note that the entire production process, including development and post-production, is interconnected, which will ultimately speed up and refine the whole production
process.
It
would
help
in
the
Emergence of new business models. Business models based on new technologies and big data are
centered
on
new
services,
value-linked
ecosystems, and the customer's perspective, allowing for better user-focused design in the manufacturing process as well as to better align with the processes and contexts involved in creating value for the customer.
PAGE 16
THE STRATEGY AND CONSULTING CLUB OF IIM ROHTAK
snc@iimrohtak.ac.in
ANKIT PALIWAL GARGI GARIMA KUMARI KRITI SETHI MADHU PRIYA MACHADI PARNIKA SHARMA POOJA CHAUDHARY RASTRA KUNWAR MAURYA RUDRAJIT BANERJEE
ABHAY JAIN FATHIMA HEERA F KEERTHI CHAITANYA SAPTADWEEPA BANJI SHIPRA AGRAWAL SWAPNIL GUPTA YASH BANSAL
FOLLOW US ON: DISCLAIMER: THE VIEWS AND OPINIONS EXPRESSED IN THIS MAGAZINE ARE THOSE OF THE AUTHOR AND DO NOT NECESSARILY REFLECT THE OPINION OF THE STAKE HOLDERS OF IIM ROHTAK