Strategy Wall - 17th Edition

Page 1

VOLUME 23 ISSUE 1

THE STRATEGY WALL SUPPLY CHAIN MANAGEMENT IN HEALTHCARE INDUSTRY PERFORMANCE APPRAISAL TO PERFORMANCE FEEDBACK DIGITAL OR NOT, OUTRAGEOUS MARKETING EXISTS!

THE STRATEGY AND CONSULTING CLUB OF IIM ROHTAK


“Perception is strong and sight weak. In strategy it is important to see distant things as if they were close and to take a distanced view of close things.� Miyamoto Musashi


Contents 01

SUPPLY CHAIN MANAGEMENT IN HEALTHCARE INDUSTRY

03

PERFORMANCE APPRAISAL TO PERFORMANCE FEEDBACK - SHIFTS IN THE PMS

05

DIGITAL OR NOT, OUTRAGEOUS MARKETING EXISTS!

07

BRANDS AND COLOURISIM - WAY FORWARD

10

ADVANCED METHODS IN MARKETING RESEARCH

12

THE WORLD POST COVID - 19


SUPPLY CHAIN MANAGEMENT IN HEALTHCARE INDUSTRY CHIRAG SHETTY, SBM NMIMS MUMBAI

Supply chain Management in Healthcare industry

Having

a

rigorous

supplier

onboarding

has been like a side hero who was never recognized

processes in place so as to assess potential

however good he acted, but the COVID-19 pandemic

vendors and mitigate risks involved.

has completely changed this scenario. While the

Real

world awaits the vaccine with bated breath what is

performance

more important to see is whether the current SCM

responsiveness of the supply chain.

can manage to deliver vaccines to all those who

Leveraging supplier data and gathering insights

need it as early as it can.

to uncover hidden possible supplier risks and

time

collaboration evaluations

capabilities to

fast

and track

make strategic decisions for the business Procurement and Strategic sourcing: Global uncertainty arising because of the pandemic

Sourcing and Procurement teams will continue to

has disrupted many supply chains, as suppliers,

play a vital role in steering their businesses through

customers and enterprises alike work to respond to

the new normal. With its focus on developing a

these

resilient and agile supply chain, Sourcing will be

unpredicted

business

disruptions.

Procurement leaders in Healthcare have quickly realized that in order to safeguard and sustain their

instrumental in: Recovering with Resilience

supply chains, they need visibility beyond their Tier

Sourcing teams across the globe are posed with a

One vendors. In wake of uncertain scenarios

new challenge due to unexpected disruptions and

prevailing in the world, ensuring a resilient supply

are being expected to respond with agility and

chain is now a major driver of strategic sourcing

flexibility. Teams with successful recovery strategies

initiatives, and Healthcare procurement leaders are

prioritized their organization’s resilience and ability

trying to strengthen their supplier partnerships by:

to adapt quickly to the changing world.

PAGE 1


Technologically streamlining processes like vendor

A pivotal role in standardization has been played by

onboarding and providing their teams with

Strategic

real-time collaboration capabilities, leading strategic

systematize

sourcing teams pivoted operations and continued

efficiencies

supporting the business remotely–without missing a

alignment of purchase decisions. In medical and

beat.

pharma sector acquiring inventory such as mobile

Procurement

teams

empowered

with

sourcing—where

health efforts

procurement through

better

systems to

unlock

governance

and

technology will have better visibility into their

medical

pipeline and will be better able to plan strategically.

equipments need to be maintained to gain value out

Leading with Empathy

equipment

is

just

one

phase,

these

of it over the years. This is the reason why it is

Going forward sourcing leaders across sector will

believed that hospitals benefit when they apply a

agree that empathy must be at the apex of

strategic

procurement strategy. It has become mandatory for

equipment purchase and servicing program.Inorder

leaders to prioritize human connection in their

to successfully activate that model for suitable

professional relationships by activities ranging from

financial gains, engaging a proven healthcare

empowering their teams with right technology and

technology management vendor is vital.

sourcing

model

to

their

healthcare

tools to creating partnership with suppliers. One way to do so is by increasing the collaborations. While

With impetus on rise in expected demand of

many may not be able to meet in a conference

healthcare

room,

capabilities

like

tea

chats

and

products

the

managers

must

look

video-

towards elevating strategic sourcing more than

conferencing have greatly enhanced productivity

ever. Also. with the global supply chain image

among remote teams. Procurement leaders around

changing because of the worlds outlook towards

the globe are working closely with suppliers to find

China its all the more necessary in the new normal

middle grounds with suppliers by finding solutions

to have multiple vendors and sources for each of the

that benefit all stakeholders like renegotiated

raw material with preferably more impetus on

minimums and accelerated payment conditions.

developing

Elevating Strategic Sourcing

multiple

local

vendors

to

ensure

business continues as normal in most uncertain of

Even in situations of uncertainty enterprises globally

scenarios as well.

have always relied on procurement teams to maintain business continuity. While sourcing leaders have always rose to challenges posed by the uncertain situations and played crucial roles in contingency planning and plotting ways and course for business continuity thus ensuring a stable future. Being

backed

by

modern

technological

developments, successful teams across sectors have found creative solutions to preserve cash, further build and strengthen supplier relationships and mitigate potential business risks. Sourcing teams generally have complete visibility and knowledge into their processes and pipeline plans, thus are better able to prioritize initiatives from the list and plan strategically in setting up the new normal for the business in near future.

PAGE 2


PERFORMANCE APPRAISAL TO PERFORMANCE FEEDBACK – SHIFTS IN THE PMS NIRALI DOSHI, IITM “Performance management isn’t dead. The old way of thinking about it is.” -Anita Bowness

What started with year-end performance appraisals

Many of the big names in the corporate world –

on paper, moved on to become automated, more

Microsoft,

frequent, and more inclined towards numbers.

Accenture, HCL, KPMG, IBM, Infosys, TCS, Wipro,

Somewhere between the bell curve, balanced

Cisco, Goldman Sachs, SAP - have started moving

scorecards, and 360-degree feedback, the true

away from forced rankings or performance ratings.

purpose of performance management was lost.

Research conducted by Bersin suggests that almost

What

70%

was

meant

as

a

medium

to

facilitate

of

Deloitte,

the

Adobe,

companies

are

General

Electric,

re-evaluating

the

development of employees turned into a tool to

performance management approach used by them.

justify promotions or pay raise.

The main reason for this is that the rating system places

heavy

importance

on

rewards

and

By 2006, debates started to stir up about the

punishments of financial nature. Another reason is

efficiency of the performance management systems

that the employees are held accountable for

and how it can be changed. The trend moved from

behaviors or actions of the past. This hinders

performance

improving current performance and development.

appraisals

to

integrating

talent

management with performance management, to engaging the employees and has finally come to

A change in performance appraisal is needed for

empowering the employees. While there is no

various reasons. The nature of work is changing. The

consensus on the type of system that is to be

issue with using numerical forms of performance

followed, companies are now trying to frame the

appraisal is that it will not show how work gets done

system as per the organization’s requirements. This

in organizations today because of the continuous

change is seen in the form of real-time feedback or

change in the nature of work. Organizations no

regular feedback.

longer prefer goals set on a yearly basis.

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How much of an impact can the performance

With a limitation of facilities and social connections

management

the

available at home, there is a need for clear and pro-

organization? Effective performance appraisals can

active communication, which is often not set in

benefit the organization in many ways such as lower

place. Flexibility at the company level is the most

rate

of

system

turnover,

actually

on

the

employees,

essential skill required today. More often than not,

the

employees’

employees working remotely are working beyond

strengths and weaknesses, providing a basis for

their 9 to 5 shift. The focus for performance

training and development, increasing productivity,

management systems needs to then move away

reducing

from these numbers towards looking into quality

providing

motivating

have

information

role

about

ambiguity

in

employees,

and

validation for promotions, hires, and terminations.

work through providing regular feedback. This can facilitate the organization to stay ahead of the curve

What if performance appraisals set up at the

as well as show the employees that they are cared

organization

for.

were

ineffective?

Ineffective

performance appraisals can also have a negative

With

more

satisfaction

comes

higher

productivity.

impact on employee productivity. When a positive and significant effect exists between performance appraisal

and

productivity,

ensuring

that

the

performance appraisal system is effective will lead to higher levels of profit for the organization. Researches by Onyije and Pettijohn suggest that there

is

a

correlation

between

performance

appraisal and employee productivity. Kopelman, through nine studies concluded that feedback has a positive effect on employee productivity. When a theoretical understanding of performance feedback, especially positive feedback, is implemented along with a collaborative environment, it results in an increase

in

employee

productivity.

Employees

themselves agree that providing regular feedback will prove to give the organization a competitive advantage. The increasing number of employees working from home

has

performance

only

raised

more

management

concerns systems.

about More

companies such as Infosys, HCL Tech, and TCS announcing

that

a

greater

segment

of

their

workforce will continue to work remotely even after the situation stabilizes. With this shift, there is an inevitable need for change in the performance management system.

PAGE 4


DIGITAL OR NOT, OUTRAGEOUS MARKETING EXISTS! SHRUTI S. CHOUGULE, SAVITRIBAI PHULE PUNE UNIVERSITY

Technological

advancement

has

influenced

A

perfect

example

will

be

the

1920’s

Jello

evolution of traditional print media advertising

Advertisement to be America’s most favourite

towards digital advertising but one thing has not

dessert by depicting a little black kid serving Jello to

changed so far that customers’ “emotions” is still

a White madame.

central focus of any marketing and promotional strategy. Over the years, marketers have realized that adapting to customers reality should be the prime objective for successful promotional campaign. Satisfaction of emotional and social needs is being targeted so that people will buy product for Psychic satisfaction, more than they buy for any other reason. Over the years, marketers are pouring thought on, what is the most important emotion that people feel when they come across an advertisement? But outrageousness is the answer that they are seeking. Marketers have an eye for sensitive content; Be it racism, gender inequality, cultural

differences,

religious

attachments

or

modern era’s issues like casteism, feminism (names have become fancy, issue is still same!), etc. Sometimes we, as marketers, go beyond our limit of decency, emotional or social boundaries in an attempt to create attention-seeking advertisements.

Fig 1- Jello Advertisement that encouraged Racism and Slavery Source-Businessinsider.com/20-ads-that-changed-how-we-think-about-race-inamerica-2013-2?IR=T

PAGE 5


Another advertisement like this was 1957’s Van Heusen advertisement. It showed a woman dressed in robe, accessorized with perfect hair and make-up kneeled

and

serving

breakfast

to

“seemingly

sophisticated” man. The company had aim of satisfying male ego by quoting, “Show her it’s a Man’s world”.

Fig 3- Nivea advertisement Source-Thedrum.com/news/2017/04/04/nivea-perspires-after-white-purity-adsembolden-white-supremacists

These were only the few among thousands of advertisements with offensive content. As long as there exist emotions, there will be selling of values in order to increase product appeal. Being Marketing professionals and face of organization, we should realize that responsibility lies in our hand. We are well aware of the fact that advertisements, till some extent, influence peoples’ mentality. Therefore, there should be all-inclusive, open-minded and nonoffensive approach while targeting emotional need of potential customer. After all, we are in a profession that delivers value to customers (not offence) for personal and organizational benefits.

Fig 2- Van Heusen Advertisement that encouraged Gender inequality Source-lalaini.blogspot.com/2013/09/13-incredibly-sexist-ads-from-50s.html

Simpler and direct the appeal, better will be the results. In this way, marketers focus on one single message (whether positive and negative) that they strive to convey to their potential customers in every possible way. Recent advertisement by Nivea gained popularity due to massive outrage it has caused. The company had quoted, “White is purity” which enraged people because of the racist remark.

PAGE 6


BRANDS AND COLOURISM – WAY FORWARD P.PRUDVI TEJA, SIBM BANGALORE

As I was strolling down the departmental store, I

While a few advertisements portray babies, who are

came across an aisle filled with baby diapers from

wheatish, they can easily be misled as being white.

various brands, all wrapped in beautiful and

This dichotomy of the brands’ perception of what

appealing

something

the Indian babies look like and the actual truth is

peculiar with almost every brand’s package – The

ironic as they invest a substantial amount in their

baby on the package was white skinned. While the

research and surely, they must know the country’s

majority of the Indian babies are brown skinned and

tropical climate and the level of melanin that’s

the products are sold to the parents of the babies

produced in the entire populace.

package.

But

there

was

who are also brown skinned, then why are the brands like Pampers, Huggies, MamyPoko still using

This

the babies that have a glowing white skin?

preferential treatment to people of the same race

phenomenon

of

showing

prejudicial

or

Figure 1 - Google Search Results of Pampers Brand Diapers in India Source: Google

PAGE 7


While a few advertisements portray babies, who are wheatish, they can easily be misled as being white. This dichotomy of the brands’ perception of what the Indian babies look like and the actual truth is ironic as they invest a substantial amount in their research and surely, they must know the country’s tropical climate and the level of melanin that’s produced in the entire populace. This

phenomenon

of

showing

prejudicial

or

Figure 2 - Apple's Website Showcasing its Inclusivity Source: Apple.com

preferential treatment to people of the same race based on the colour of the skin is called colourism.

Apple as a brand is well known for its inclusivity as

It’s different from racism as the latter discriminates

it includes people from various ethnicity, skin colour

people from different races.

and lifestyles in their campaigns. It has used the inclusivity and diversity to its advantage by not just

Colourism has been deeply rooted in the mindset of

attracting a wide customer base but also has

Indians since colonial times and have a deep-seated

developed a brand image of being socially and

inferior complex to such an extent that the flagship

ethically

product of Hindustan Unilever Limited (HUL), Glow

discriminate anyone. A quick look at its website

& Lovely formerly known as Fair & Lovely earned a

gives us an idea about its principles.

responsible,

a

brand

that

doesn’t

revenue of $500 million dollars in India. The brand created different campaigns around the idea that dark-skinned people did not have a chance at acing the

exams,

interviews,

marriage

and

other

endeavors. It’s only when they are fair skinned will their talents be recognized and they will be successful. Although they changed their name, their campaign revolved around the same idea and this is when they

Figure 3 - Apple WWDC20 Promotional poster Source: Developer.apple.com

faced a backlash from the society for doing too little, too late! But the efforts by HUL shows they took

Apple

not

only

showcases

diversity

in

their

cognizance of the damage and apart from that,

advertisements and banners but also practices it

HUL’s move also sparked the much-needed skin-

and tacitly portrays it during their several product

tone bias debate in India and across the world. This

launches and also during their annual conference

is the strength which a brand possesses.

Worldwide Developers Conference (WWDC). We can see this inclusivity in the different product features

When a particular brand is insensitive towards the

explained by different heads who lead a lifestyle

people they cast in their advertisements or as their

which is unique. Adding racially diverse emoticons

models to represent their brands, it takes a heavy

was an initiative which the company took a few

toll on the customer’s perception. The consumer

years back and now it’s been lauded by everyone.

might feel ignored. The Horowitz research in the US

WWDC20 saw a unique poster with emojis of

shows

feel

different racial backgrounds, which was a breath of

comfortable and happy when they see a dark-

fresh air. This puts Apple at the forefront of fighting

skinned person in a brand’s Ad campaign. Inclusivity

against the colourism bias and has become an

is vital!

inspiration to everyone.

that

people

with

dark-skinned

PAGE 8


A few Indian ecommerce websites hire almost 50% of the models who are Caucasian. While the industry experts argue it has nothing to do with the skin colour, the experience says otherwise. But the brands and the industry as a whole is fighting against this bias, and each day the brands are hiring the models who are dark-skinned.

Figure 4 - Nike's Brand Ambassadors Source: www.campaignlive.co.uk

Nike is one such brand which has broken down all the barriers by choosing the brand’s ambassadors to models who are African-American and proudly portrays the champions in their respective fields. It recently broke the sales record because of its investment in the digital campaigns and platforms that showcases their products with the brand ambassadors wearing them. It’s a testament to the naysayers and promotors of the colourism that any brand that moves above and beyond the existing barriers and breaks the stereotypes will not just gain newer customers but also become a role model to the upcoming and existing brands.

PAGE 9


ADVANCED METHODS IN MARKETING RESEARCH PRIYADHARSHINI RAVISANKAR, VELALAR COLLEGE OF ENGINEERING AND TECHNOLOGY (VCET), ERODE

The future of market research would be based on

total market revenue of about 822 billion dollars.

artificial intelligence or a combination of artificial

Double down Inc., a service organization with net

intelligence with certain advanced technologies

revenue of 18.0 million dollars. The use of artificial

such as blockchain, augmented reality, etc., . This

intelligence in the digital market is way higher.

article would provide an insight into these aspects.

Quality of the content being published is a key

These technologies have been adopted by certain

aspect but maintaining the quality in accordance

companies like IBM, Google’s natural processing

with the user will be a game-changing aspect.

language etc. Artificial intelligence is structured in a

Artificial intelligence has a significant contribution in

way that it guides the company in a smart way to do

this

market research about their development, customer

prominent area where artificial intelligence has its

needs.

the

role certain examples are Microsoft Power BI, which

marketing strategies used during marketing this

is specially designed for users who don’t have much

product. The artificial intelligence used in mobile

knowledge about big data. The only case is the

marketing is the key player in today’s marketing

accuracy in entry based on past behavior which is

strategy. The mobile artificial intelligence market is

based on the statistical modeling done. The usage of

expected to grow by 17.83 billion dollars by 2023.

artificial intelligence in digital marketing could

There are various companies that have incorporated

leverage the ROI of any company that aims to curate

artificial intelligence in Amplero. In the case of

the ICP more accurately.

Artificial

intelligence

would

adopt

domain.

Predictive

analysis

is

the

most

amplero the companies incorporated with amplero resulted in increased revenue of about nine times

Integrated

per year and in certain cases of about 21 percent.

mended approach of various aspects such as

One such company implemented with amplero

advertising sales promotion, public relations, etc. It is

artificial intelligence marketing is Ooredoo, which is

designed in a way to channelize the strategies based

a community-based organization in Qatar, with a

on the entire collected data.

marketing

communication

is

the

PAGE 10


There are many companies that have successfully

gain something better by providing information. In

implemented

addressing the poor quality in marketing research

integrated

marketing

communications one such case is coco cola. The

blockchain

company had its promotion based on two primary

According to the smart contract, the payment is

strategies which were food and retail services. The

disbursed only when the smart contract selects the

efforts towards retail services aimed at the point of

agreement mentioned prior has been accepted,

sales technique (POS). The point of sales implies the

thereby improving the market research quality with

coolers for the sales related in stores and carriage

accurate data.

would

incorporate

smart

contracts.

vending machines. Food services imply the supply of coco cola paired with other foods that is the

Thus

optimization of the menu. The integrated market

intelligence will bring an obvious impact for

communication undertaken by coca-cola increased

business

the desire of the consumers to drink coca-cola. The

intelligence

IMC was implemented through web sites as sales

definitely create a great impact on market research.

promotion. As a result of IMC implementation, the

Combining

profit margin rose by 15.43 percentage which

intelligence would also be groundbreaking for

promoted it as the fourth most valuable product

effective

brand of the world in the year 2015.

effective marketing strategy and research with

combining pioneer. and

the

blockchain

The AI

market

promotion

used

augmented

and of

artificial

technologies

reality

research.

artificial

Thus

with

would artificial

providing

an

advanced technologies. Augmented reality is one of the latest trends in the strategy which could bolster the customers in a different way. It enables providing the customer a deep insight into the product even before the consumer could actually buy the product.

An

example of one such implementation is the sub hub enabling the users to view the 3 dimensional display of the location where the game is held that is the super bowl. Starbucks made it possible for the customers to look at the coffee shops. Such augmented reality enabled the market to reach a great level among customers. The implementation of virtual elements would encourage the customers thereby drawing more customers into the field. Blockchains advanced

could way

of

also

be

considered

marketing

that

as

an

could

be

implemented by companies. It is a system enabling the transaction of information in digital form. This blockchain has been implemented in the market research industry. Blockchain could address the issue

of

participation

rate

by

incorporating

blockchain tokens which symbolizes consumer data as assets. This provides a means for sharing information in exchange for tokens thus providing insight as per

PAGE 11


THE WORLD POST COVID-19 PRAGYA SHAKLYA, SIIB

COVID-19 has unbridled an unprecedented human

People must have realized the value and essence of

development crisis. Policies are currently being

every work. They will start appreciating the small

designed to face the crisis and massive additional

things in life and might get off from the materialistic

financial

The

vicious cycle of Maya. This will be the new

pandemic has hit the world with unresolved

normalized post Covid-19. The following changes

tensions and post Covid-19 world is still a dream for

may remain for some time. People will be more self-

many countries. When will be able to live the post-

aware, skeptical about meeting and contacting

time is still a big question in everyone’s mind.

people

However, in the endeavor of confronting its multiple

gymnasium, theatre, malls, sports hub and hotels

implications,

to

will take care of hygiene and cleanliness. Low-

reimagine what is possible and desirable for the

contact protocols will be taken for the safety of every

future.

individual. The economy will slowly start to recover,

resources

there

are

is

being

also

an

mobilized.

opportunity

and

health

conscious.

Restaurants,

reshuffling of ideas and shifting to new projects is It offers decision-makers a comprehensive picture of

expected and unemployment might decrease. Yet

expected long-term changes, and inspiration to

the norms of socializing and wearing masks will still

leverage the opportunities this crisis offers to

remain mandatory.

improve the state of the world. From handshake to namaste, hugging to social distancing and social

The digital world will go tremendously over the

gathering to sitting at home, everything has come

world. The multinational company might shift some

back to basics. The ongoing pandemic has the

employees permanently to work from home as its

potential to weaken the foundation and the very

convenient, flexible and cost cutting. Students

fabric of our civilization. This may alter not only the

might also shift to digital platforms for their online

way we live and work but also deeply impact our

classes, tests and assignments. Restoring social

interpersonal relationships, our core values and the

spaces as soon as it’s safe to do so is more than just a

nature of state and governance.

financial priority.

PAGE 12


Psychologically,

initially

it

might

paralyze

the

humans and will be daunting threat to opportunity to rethink how we get together. They will be scared and grappling with a multitude of mental issues such as depression and anxiety. But later, the people will accept, get through and start living with it. Lord Brahma is believed to have four faces in Indian Mythology. These symbolizes formation, security and development in all the four directions. We can interpret them as empathy, humanitarian gratitude, duty in charge and universe of tolerance. There is no substitute to a shared future of humankind. How we shape it, is up to us.

PAGE 13


THE STRATEGY AND CONSULTING CLUB OF IIM ROHTAK snc@iimrohtak.ac.in AKANKSHA LAWHALE AMRISH RAI MEDHA WAGH SAURABH AZGAONKAR TANVI RANE TEJASWI NETTAM VARIS KUMAR KALIA ANKIT PALIWAL GARGI GARIMA KUMARI KRITI SETHI MADHU PRIYA MACHADI PARNIKA SHARMA POOJA CHAUDHARY RASTRA KUNWAR MAURYA RUDRAJIT BANERJEE 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


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