Industry 2.0 April 2012 by bhupinder sharma

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A 99 MEDIA PUBLICATION

VOLUME 11

ISSUE 08

APRIL 2012

PRICE 100

APRIL 2012 VOL 11 ISSUE 08

TECHNOLOGY

INDUSTRY 2.0 - TECHNOLOGY MANAGEMENT FOR DECISION-MAKERS

Employ consumer devices to drive business advantages

SUPPLY CHAIN

Forestall big problems by effectively dealing with shortages

MARKET

Robust demand propels energy efficient lighting products

Fulfilling The Promise What restrains Indian companies from getting a bigger share of the global market?

`100

editorial Vol. 11 | Issue 08 | April 2012

Managing Director: Dr Pramath Raj Sinha Printer & Publisher: Kanak Ghosh Editorial Group Editor: R Giridhar Copy Desk Managing Editor: Sangita Thakur Varma Sub Editors: Radhika Haswani & Mitia Nath Design Sr. Creative Director: Jayan K Narayanan Art Director: Anil VK Associate Art Director: Atul Deshmukh SR Visualiser: Manav Sachdev Visualisers: Prasanth TR, Anil T & Shokeen Saifi Sr. Designers: Sristi Maurya & N V Baiju Designers: Suneesh K, Shigil N, Charu Dwivedi Raj Verma, Prince Antony, Binu MP, Peterson Prameesh Purushothaman C & Midhun Mohan Chief Photographer: Subhojit Paul Sr. Photographer: Jiten Gandhi Sales & Marketing VP - Sales & Marketing: Krishna Kumar KG (09810206034) National Manager - Events & Special Projects: Mahantesh Godi (09880436623) Assistant Brand Manager: Maulshree Tewari GM (South & West): Vinodh Kaliappan (09740714817) South: Farooq Faniband (09886600175) North: Madhusudan Sinha (09310582516) East: Jayanta Bhattacharya (09331829284) Production & Logistics Sr. GM - Operations: Shivshankar M Hiremath Manager - Operations: Rakesh Upadhyay Assistant Production Manager: Vilas Mhatre Ad Coordination: Kishan Singh Assistant Manager - Logistics: Vijay Menon Executive - Logistics: MP Singh, Mohamed Ansari & Nilesh Shiravadekar

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Forecasting the Future

here is little doubt that technology advances are rapidly changing the way manufacturing companies make and distribute products today. Advanced equipment and IT solutions are helping companies dramatically improve quality, enhance productivity and reduce waste. However, what is less apparent is the fact that technology is also quietly reorganising the way companies are structured, managed and operated. A recent publication from the Economist Intelligence Unit (EIU) titled, “Agent of change: The future of technology disruption in business”, predicts the impact of technology developments over the next decade on various aspects of business, including organisational structures, jobs, the workplace, customer interactions, and business models. One important finding of the report is that technology disruption is more likely to accelerate in the decade ahead. This will lead to new business models, and will dramatically alter the nature of many jobs. How else will better connectivity and collaboration change the business environment? Take the case of machine tools or material handling systems equipped with sensors and embedded processors. Today’s advanced equipment can already generate and transmit lots of data. Firms that have the ability to capture and intelligently process this data, and create new services based on advanced analytics

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R Giridhar editor@industry20.com

will have the opportunity to offer new and valuable services to customers. For instance, an equipment supplier could remotely monitor devices in the field or customer location to provide maintenance and diagnostic services, or even help the customer use the apparatus better by analysing and improving operating patterns. This service would enable the customer benefit from higher productivity and efficiency, while the supplier gets a new revenue stream. Another area that will be impacted by collaborative technologies is R&D. Customers and the channel will play a big role in “co-creating” new product and service ideas—and in driving business process improvements. This implies that many customer-facing physical premises will need to evolve into spaces for networking, meeting and collaboration. And companies will have to be comfortable with flattening and simplifying organisational hierarchies to ensure the flow of information. The bottom line is that technologies, in themselves, will not result in improvements in business models or operations; the business processes also need to undergo change. The history of business is replete with examples of businesses that got their technology predictions wrong— and have paid the price. So, how will your organisation keep pace with the change, and retain its competitive edge?

- technology management for decision-makers | april 2012

contents advertiser index Schneider...............................IFC, 5 Mitsubishi...................................... 3 Reillo PCI Electrical.....................11 Ace Micromatic...........................19 Omron..........................................56 Taguetec.....................................IBC GW Precision...............................BC

departments Editorial.......................................01 Advertiser Index......................... 02

cover story

Industry Update.......................... 04 Techwatch...................................14

20 Fulfilling the Promise

Bookshelf................................... 46

Indian manufacturers have the opportunity to capture a larger share of the global market. McKinsey estimates that up to $5 trillion a year will be up for grabs as global companies seek to diversify production and sources of supply beyond China. But, to do this, manufacturing companies must embrace global best practices in operations

Opinion 42

“Encourage disparate opinions, and surround yourself with advisors and team members who think differently. Else, you could stifle creativity and innovation,” advises Krishna Kumar of Kinesis Sports

With a little creativity and a lot of foresight, you can effectively employ a wide variety of consumer devices for business advantage

supply chain 34 Dealing With Shortages

“Sometimes, it is not necessary to choose between two opposing or conflicting ideas. Look for ways to distil them into a third—and better—alternative,” says EQ consultant Shayamal Vallabhjee

april 2012 | industry 2.0

information technology 26 The Rise of Consumer IT

Cover design: Shigil.N

Product Update.......................... 52

By handling shortages in a routine and organised fashion, you can minimise the long-term impact on client relationships and business profitability

sector update 36 Lighting

While robust economic growth is pushing sales, favourable governments are helping propel demand for energy-efficient technologies and new applications

38 Logistics

- technology management for decision-makers

Growing user sophistication is driving logistics vendors to make continuous improvements in infrastructure, strengthen supply chain management skills, adopt higher service standards

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Innovative PLC based DCS flexibly and seamlessly integrates FA components for exceptional cost and energy savings. Mitsubishi Electric is improving water treatment efficiency in India. Through technologies such as iQ Plant Suite — which provides flow control and remote monitoring at reservoirs through integrated control of SCADA, inverters and redundant PLCs — and seamless data transmission via CC-Link IE, we are contributing to a stable water supply.

Modular PLC

HMI

Compact PLC

VFD

LVS

Mitsubishi Electric – Streamlining water treatment systems.

Micro PLC

Power Multi Meter

www.MitsubishiElectric.asia/india/ Mitsubishi Electric India Pvt. Ltd. 2nd Floor, Tower A & B, DLF Cyber Greens, DLF Cyber City, DLF Phase-III, Gurgaon - 122002, Haryana, India Phone: +91 (124) 463-0300 Fax: +91 (124) 463-0399

industry update

Denso Sets Up Research Centre Vivek to Strengthen

enso has set up its sixth regional technical centre in Gurgaon. The facility employs about 60 people and represents an approximate investment of Rs 1.5 billion. It will lead the development of automotive power trains, electric and electronic systems, information and safety systems, small motors, and motorcycle products for vehicle manufacturers in India. The technical centre is equipped with a variety of testing and evaluation equipment, including an engine bench and chassis dynamometer that enables vehicle testing in a wide range of environments. It also has materials engineering and evaluation facilities to help the procurement divisions at Denso’s manufacturing companies in the country. Yasushi Nei, Chairman of Denso International India says, “Transferring product development operations from Japan to India will allow us to quickly respond to both the market and customer needs. The technical centre will also support automotive software development for other regions of the world.”

PTC Improves Mathcad Prime

athcad Prime 2.0, an engineering calculation software, adds powerful new calculation features and advanced capabilities to an easy-to-learn, easy-touse interface. The software’s interface combines live, standard math notation, text and graphs, in a presentable format which enables knowledge capture, reuse and design verification

GE Buys Advanced Systek

is acquiring a majority stake in Vadodara-based Advanced Systek, a supplier of terminal automation systems and flow metering solutions. The acquisition will enable GE to offer solutions to customers in regions such as South Asia and the Middle East. Advanced Systek offers its midstream and upstream oil and gas industry customers total terminal management and flow metering solutions including design, engineering, supply, installation, commissioning and maintenance. By combining Advanced Systek’s capabilities with GE technology and

april 2012 | industry 2.0

product suite of flow metres, control valves, UPS, controllers and instrumentation, this transaction will enable GE’s Oil & Gas business to broaden its offerings for the industry, and deepen its relationship with customers seeking more efficient energy solutions. John L Flannery, President and Chief Executive Officer of GE India says, “GE and Advanced Systek complement each other very well. Advanced Systek’s capabilities and its established track record in the oil and gas industry combined with our expertise and product portfolio in custody transfer will help us expand our

- technology management for decision-makers

Supply Chain

ivek, a south-based consumer durables retail chain, has engaged Vector Consulting Group to implement Theory of Constraints (TOC). Commenting on the development, BA Srinivasa, Joint Managing Director of the company explains,” We are looking to increase product availability, while reducing inventory within the network. Vector has already helped retail chains like Westside, Landmark and Liberty Shoes to redesign their supply chains and store stock management to ensure higher availability with lower inventory levels.

for improved product quality. Mathcad Prime features 3D graphing, integration with MS Excel, collapsible areas, and symbolic (CAS) capabilities. The software has more than 600 built-in mathematical functions, and integrates with other PTC products like Creo and Windchill to enable increased productivity, improved process efficiency and better collaboration between individuals and teams.

service offerings to our customers. This merging of strengths will help us address growth opportunities in India and other emerging countries.” Umed Fifadra and Mukesh Kapadia, Joint Managing Directors of Advanced Systek, said, “Advanced Systek’s electronic flow measurement devices and automation software will be complemented by GE Energy’s strength in measurement instrumentation, diagnostics and performance optimization to create an overall solutions business with strong local capabilities. We look forward to widening Advanced Systek’s position in its core areas of expertise with GE Energy’s broad range of worldclass products and global reach.”

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Always secure. Always available.

Anywhere in the world you need power, Schneider Electric is there. Power loss poses a threat to the equipment, people, and processes you rely on. And with today’s stricter security and safety regulations, process automation, and increasing dependence on sophisticated high-tech systems, the need for uninterrupted power is critical. Add the rising cost of energy and environmental concerns into the mix, and it becomes essential to protect your power with solutions that not only meet your availability demands, but are energy efficient, too.

Why Schneider Electric is the right power protection choice You may know us as the market leader in delivering IT power protection. But we also offer a full range of reliable and highly efficient power protection solutions designed to safeguard business-critical applications and environments outside the IT room. Our innovative, best-of-breed products, services, and solutions provide the secure and available power you need to keep your systems up and running, while increasing efficiency, performance, and safety.

Guaranteed availability for business-critical systems No matter what industry you’re in, our unrivalled portfolio offers a solution that’s guaranteed to suit your specific business needs and keep your power on. Thanks to Schneider Electric™ power and energy management capabilities, in-house expertise, broad investments in R&D, and global presence, you have a trusted resource for reliable power, anywhere in the world.

Secure power solutions that deliver the performance you need Products: Our complete catalogue of power solutions, featuring our leading brands such as APC™ by Schneider Electric and Gutor™, offers an unmatched range of single- and three-phase UPS units, rectifiers, inverter systems, active filters, and static transfer switches from 1 kVA to several MVAs. Services: Schneider Electric Critical Power & Cooling Services can proactively monitor and maintain the health of your systems, protecting your investments, reducing total cost of ownership and operating expenses, and providing peace of mind throughout the equipment life cycle. Solutions: Choosing the right combination of products and services from Schneider Electric gives you the convenience of a total solution – systems, software, and services from a single source.

Make the most of your energy

The Different Types of UPS Systems White Paper 1

> Executive summary

Learn more about our secure power solutions. Download our FREE White Paper, ‘The Different Types of UPS Systems’. Visit www.SEreply.com Key Code 16617p Toll free 1800 4254 272/877

©2012 Schneider Electric. All Rights Reserved. All trademarks are owned by Schneider Electric Industries SAS or its affiliated companies. Schneider Electric India Pvt. Ltd., 9th Floor, DLF Building No. 10, Tower C, DLF Cyber City, Phase II, Gurgaon - 122 002, Haryana, India. Tel. 1800-4254-877/272 • 998-4982_IN-GB

industry update

Curbs Likely on Imports for Solar Energy

he government is planning to encourage domestic manufacturing through public-private partnerships to boost solar energy generation, and limit imports, according to the Minister for New and Renewable Energy, Farooq Abdullah. Foreign companies must set up manufacturing facilities, along with research and development centres, if they want to enter India for solar power generation, he said while inaugurating a conference organised by The Associated Chambers of Commerce and Industry of India (ASSOCHAM). About 170 MW of grid solar power generation has already been set up under the Jawaharlal Nehru National Solar Mission. By the end of the first phase, 1,100 MW of generation capacity is envisaged by 2013. In the second phase, an additional capacity of 10,000 MW for various off-grid applications has been sanctioned. “This scale-up will require a paradigm shift in the approach. We must continue to rely more on the regulatory framework, development of transmission infrastructure and developing

innovative business models. The sector will require an investment of 20 billion dollars by 2017,” said Abdullah. “The challenge is to introduce newer and efficient technologies which can lead to cost reduction and ultimately help in grid parity,” he said adding “There is need to grab opportunities in developing partnerships in all spheres of research, development, designing and setting up projects.” Meanwhile, ASSOCHAM President Rajkumar Dhoot said “The country is endowed with vast solar energy potential and 5,000 trillion kWh per year energy is incident over the land area with most parts receiving four to seven kWh per square metre daily.” Hence, both technology routes for conversion of solar radiation into heat and electricity—solar thermal and solar photovoltaic—can be effectively harnessed providing huge scalability. Dhoot also said, “The government should allocate a substantial portion of clean energy fund to service capital requirements of solar energy projects at low bank interest rates.”

Huge Growth in Video Surveillance

rowing at a compounded annual growth rate (CAGR) of about 30 per cent, the video surveillance and closed circuit television (CCTV) camera market in India is likely to reach Rs 2,200 crore by 2015 according to a study released by ASSOCHAM. The CCTV camera market is currently worth about Rs 1,000 crore, and accounts for over 40 per cent of the Rs 2,400 crore total electronic security market in India. “Rapid economic growth and rising industrial activities amid security threats, fear of potential terrorist attacks has fuelled the demand for CCTV cameras. Both government authorities and the private sector are investing in installing CCTVs to secure their offices and public places across the country,” explains DS Rawat, Secretary General of ASSOCHAM. “Tier II and Tier III cities, currently having a small proportion of security system installations are going to emerge as the real growth drivers of this industry in the long run,” says Rawat. This is expected to drive the growth of the CCTV camera industry.

april 2012 | industry 2.0

- technology management for decision-makers

Call for Reduced Duty on Coal

he CII has requested the government to consider a reduction in the customs duty levied on noncoking coal. Imported coking coal, mainly used by steel industry, is exempted from basic customs duty, whereas non-coking coal attracts basic customs duty of five per cent. In the budget 2011-12, the government had imposed a five per cent countervailing duty for which CENVAT credit can be availed by the manufacturer if its product attracts excise duty. The power sector is the main consumer of non-coking coal. Since there is no excise duty on generation of electricity, the power sector cannot avail CENVAT credit for the five per cent countervailing duty. This is resulting in an increase in the production cost of electricity. CII is therefore, asking for reduction of customs duty on non-coking coal to give some relief to users.

Improving SME Finance

he FICCI and IIFT (Indian Institute of Foreign Trade) have jointly authored a paper that presents a 20-point strategy for SMEs to overcome the current bias of banks against lending to them. The report recommends the establishment of a strong accounting system to reduce opacity. The report emphasises the development of a comprehensive business plan. “The more detailed the plan, the better is the chance of a loan getting sanctioned. It works in resolving certain amount of information asymmetry,” said the report. Among the other suggestions were outsourcing part of the processes, strong organisational structure, use of information communication technology, proper succession planning, debt management and co-creation of products. The mandatory disclosure of information was also highlighted as an important aspect in the knowledge paper.

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Vadinar Refinery Adds New Capabilities

“T

he Vadinar refinery, which is now in the final leg of its expansion programme, will soon be among the world’s most complex refineries capable of producing fuels that meet the world’s most stringent emission norms. Commissioned units like the ISOM (Isomerisation Unit), DHDT (Diesel Hydrotreater) and the SRU give us the capability to process heavier and tougher crudes and produce high-quality products that find acceptance in both domestic and international markets,” says LK Gupta, Managing Director and Chief Executive Officer, Essar Oil (EOL).

EOL recently commissioned a Vacuum Gas Oil Hydrotreating Unit (VGOHDT) and Sulphur Recovery Unit (SRU) at the refinery. The SRU will help the refinery recover 99.9 per cent of sulphur in acid gases generated from the ARU (amine regeneration unit) and the SWS (sour water stripper), two units that have already been commissioned. EOL has also commissioned a treatment plant (ETP), with a capacity of 540 cubic metre per hour, as part of the Phase-I expansion project to be completed by the end of March 2012. The treated water will be reused for cooling tower or for the generation of

DISA Unveils Foundry Equipment

ISA India, a foundry machinery manufacturer and Wheelabrator, a surface preparation technology manufacturer, have launched two high-end and completely localised machines. The DISA Match 20/24 is a horizontal flask-less moulding machine, while the MB500 is a metal belt tumble blast machine. The Match 20/24 is designed to deliver 160 uncored mould per hour with a maximum machine related mismatch guarantee of 0.15 mm. An automatic core setter (CSE) ensures repeatable and automatic core setting, while the quick match plate changer (QMC) enables easy and rapid pattern change. The MB500 is suitable for operating alongside the match moulding line as it provides the correct volume solution for processing parts. The MB500 facilitates full mechanisation of handling, and almost manless operation. The MB500 metal belt tumble blast machine complements the existing BB rubber belt tumble blast solutions.

RMS Collaborates With CABR

eadymade Steel (RMS) India has entered into a technical collaboration with CABR Technology (CABR) of China to facilitate manufacturing of mechanical splicing system and couplers in India. Anil Agrawal, Managing Director of RMS says, “This collaboration will

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enable RMS to take a step closer to attaining its objective of becoming a complete infrastructure solutions provider. We are committed towards bringing world-class construction technologies to cater to the growing needs of the infrastructure sector in India.”

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demineralised water through the RO plant. The Vadinar project, when completed with commissioning of Delayed Coker Unit (DCU), will expand the capacity of the refinery to 18 million tons per annum (mtpa) or 3.75 lakh barrels per day, and enhance complexity from the existing 6.1 to 11.8, which is amongst the highest in the world, according to C Manoharan, Head of the Vadinar Refinery. “It will help the refinery produce low sulphur, high octane gasoline (petrol). The unit is also capable of producing naphtha, kerosene and gas oil (diesel),” Manoharan adds.

Vybrid Controller Solutions Improve User Interfaces

reescale Semiconductor has unfurled its new portfolio of Vybrid controller solutions that are aimed at simplifying the development of applications that need rich human-machine interfaces (HMI) and connectivity, as well as deterministic real-time control and response capabilities. The Vybrid devices are built around an asymmetrical-multiprocessing-architecture platform, and employ the ARM 32-bit architecture, along with Kinetis microcontrollers and i.MX applications processors. Vybrid devices are suitable for building and home automation; industrial automation; point-of-sale systems; medical devices; smart energy equipment, including energy metres and data concentrators; and appliances. They are also well-suited for many low-power and timingcritical wired and wireless network communication protocols.

- technology management for decision-makers | april 2012

industry update

Scroll Compressors Cut Environmental Impact

merson Climate Technologies (India) has introduced scroll technology for the Indian residential air-conditioning market. The Copeland compressors have been specifically designed to improve the energy efficiency and reliability of air-conditioning systems. The Copeland compressors are already being utilised in the production of air conditioners from major OEMs in India, such as Blue Star, Carrier, Hitachi and LG. The technology is now being made available for the home and small office markets for the first time, giving Indian users access to a compressor that not only saves energy, but also provides enhanced comfort and value for its low noise output and compact design. Speaking at the launch, Shrikant Bapat, Managing Director, Emerson Climate Technologies (India) said, “ Our endeavour is to continuously innovate, adapt and deliver cutting-edge technologies that help in creating energyefficient products, which not only reduce energy costs, but also lowers impact on the environment.”

Tatas to Make Helicopters

ndian Rotorcraft, a joint venture company of Tata Sons and AgustaWestland, a Finmeccanica company, will assemble, customise and flight-test new helicopters at a facility in Hyderabad. The new helicopter facility will initially start producing the eight-seat AW119Ke light helicopter from mid2013. The facility is being built on a 10acre site adjacent to the Rajiv Gandhi International Airport, Hyderabad, and includes a 9,000 sq mt building incorporating a main assembly building, flight hangar, office accommodation and outside several helicopter landing pads. The facility will be capable of

producing up to 30 helicopters per year and is designed to be further developed for other helicopter types, right up to the 16-ton AW101. Ratan Tata, Chairman, Tata Sons says, “The project is integral to our plans in the aerospace sector and we look forward to an enduring and successful partnership with AgustaWestland for fostering the growth of the Indian aerospace sector.” Bruno Spagnolini, Chief Executive Officer of AgustaWestland adds, “Not only will this new facility build helicopters for the Indian market but it will supply helicopters to AgustaWestland customers around the world.”

New Hydel Plants on the Anvil

ower major NTPC has announced its intention to implement three hydel projects with a total capacity of 942 MW in Uttarakhand. The three projects are Tapovan Vishnugad (520 MW), Rupsiyabagar-Khasiabara (261 MW), and Lata Topovan (171 MW) in the hill state. Tapovan Vishnugad and Lata Topovan are situated on river Dhauliganga in Chamoli district, while Rupsiyabagar-Khasiabara is located on Goriganga in Pithoragarh district. Once the Tapovan Vishnugad project is commissioned in 2014, NTPC’s Regional Executive Director (Hydro), Malvinder S Soin, said that Uttarakhand will get 12 per cent of the capacity as free power.

april 2012 | industry 2.0

- technology management for decision-makers

Minister Calls for Frugal Innovation

he Minister of State for Science & Technology, Dr Ashwani Kumar, has stressed on the need for ‘frugal innovation’ in products and processes. “India needs products and services that are affordable by people at low levels of incomes without compromising the safety, efficiency, and utility of the products. These products and services must also have a ‘frugal’ impact on the earth’s resources,” Dr Ashwani Kumar said. To support innovation, and increase competitiveness, the government is considering increasing the innovation fund to Rs 2,500 crore, from the current Rs 100 crore, according to MSME Secretary, RK Mathur. The corpus is aimed at setting up testing centres for new products, and establishing R&D capabilities to serve MSME units.

GE Inaugurates Instrumentation Lab

E’s Measurement & Control business has set up a validation laboratory in Electronics City, Bangalore. With the opening of this lab, GE has expanded its capability to support the calibration of validators, temperature baths, ice point reference pressure sensors, temperature loggers and intelligent RTDs (IRTD) with very high precision and accuracy. The GE lab is the only one in India with the capability to calibrate temperatures to an accuracy of 0.005° C. The validation lab is expected to meet the critical requirements of the pharmaceutical and life science industries. It is the fourth of its type in the world for GE. “The new lab supports GE’s ‘In Country, for Country’ strategy to build on capabilities and resources within India,” says Ashish Bhandari, Regional General Manager, Measurement & Control India for GE.

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GHG Standards Now Available

he World Resources Institute (WRI) and World Business Council for Sustainable Development (WBCSD) have officially released the Greenhouse Gas Protocol standards in India. The Protocol has introduced two new standards to empower businesses to better measure, manage, and report their greenhouse gas emissions. Developed by the WRI and the WBCSD, the Corporate Value Chain (Scope 3) and Product Life Cycle Standards enable companies to save money, reduce risks, and gain competitive advantages. A growing number of Indian companies are already doing corporate greenhouse gas (GHG) accounting. According to the Carbon Disclosure Project (CDP) 2011 India Report, 57 companies have submitted reports and 89 per cent reported their GHG emissions using the GHG Protocol Corporate Standard or a protocol based on it. Given India’s significant role in the global economy, product and value chain management

Honeywell Service Reduces Operating Expenses

oneywell is now offering a suite of professional services that combines cloud-based tools and analytics with a global network of operations centres, energy and facility experts, to provide advice and enhancements to reduce utility bills and operating expenses up to 20 per cent. According to the company, the Attune Advisory Services, will help building and facility owners to gain baseline awareness of building performance, make improvements to reduce energy and operations costs, and define an ongoing strategy to manage and optimise a facility. The services

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are becoming increasingly important, so the new standards bring multiple strategic insights and opportunities for Indian businesses. Pankaj Bhatia, Director, GHG Protocol, WRI said, “The GHG Protocol standards allow Indian companies to identify and target new market opportunities for low carbon business models and products. Businesses will find that the new standards provide state-of-art methods and tools that can be deployed not only to measure and manage GHG emissions, but also to track important co-benefits in the India context, such as reducing energy use and managing

resources more effectively across the full value chain.” Girish Sethi, Director-Industrial Energy Efficiency and Sustainable Technology, TERI opined, “TERI has been working with the GHG Protocol since the first Corporate Standard was released in 2001, and we have worked on a pilot basis with various corporate houses to advise them about GHG emissions. These standards can help companies understand, measure, and manage their GHG emissions and work towards reducing their carbon footprints.” The Corporate Value Chain Standard reveals opportunities for companies to make more sustainable decisions about their activities and the products they produce, buy and sell. Large and small companies can look strategically at greenhouse gas emissions across their value chain, showing them where to focus limited resources to have the biggest impacts. The Product Life Cycle Standard enables companies to measure the greenhouse gas emissions of an individual product. Covering materials, manufacturing, use and disposal, the product standard will help companies improve and design new products, and provide insights for more informed consumer choices.

UIC to Make Steel Wires

olkata-based UIC Udyog is setting a 180,000 tpa plant to manufacture of steel wires and wire products at Bharuch in Gujarat. The project involves a total investment of Rs 508 crore, and includes galvanising capacity of 100,000 tpa. The company proposes to fund the project with a public issue of Rs 108 crore, and internal accruals of Rs 45 crore.

exceed the capability of typical facility management software which often provides only a steady stream of data, but no insight or recommendations. Attune offers three levels of assistance—awareness, improvement and optimisation—with programmes focussing on either energy or operational efficiency. Paul Orzeske, President of Honeywell Building

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Solutions explains, “The performance of building systems and equipment can degrade by as much as five per cent every year, which translates to energy and operating costs that continually escalate. With Attune, we’re providing the ease and convenience of cloudbased technology with expert advice and actionable guidance so companies can capture and maintain those savings.”

- technology management for decision-makers | april 2012

industry update

Steelcast to Supply Caterpillar

teelcast, a Gujarat-based steel castings manufacturer, has signed an agreement with US-based Caterpillar to make steel cast products to the specifications of the customer. Chetan Tamboli, Chairman and MD of Steelcast says, “A long term agreement with Caterpillar gives us an assured off-take capability. We expect sales to Caterpillar to grow from around Rs 40 crore in 2010-11 to about Rs 150 crore in 2015.” Under the terms of the agreement, Steelcast will set up dedicated manufacturing facility to service the needs of Caterpillar.

EADS, Creaform Collaborate on 3D Measurement

eronatics major EADS has signed a technological partnership agreement with Creaform to enhance 3D optical measurement for aerospace and defence applications. The 5-year agreement provides for the development of innovative applications in the field of optical 3D measurement for non-destructive testing (NDT), test monitoring and form, and surface measurement. Yann Barbaux, Head of EADS Innovation Works, commented “EADS has successfully implemented Creaform’s 3D scanning and optical measurement technologies since 2008. The developments planned will enable EADS to reduce its development time cycle, create synergies and reduce the time-tomarket of its new products”.

20 Microns Plans Expansion

0 Microns, a producer of innovative range of products including extenders, functional fillers and various special chemicals for paper, plastic and paint industries, has decided to upgrade its existing production infrastructure and facilities as well as expand production capacity at cost of Rs 88 crores. The company intends to increase its annual production capacity by 61,800 MT for hydrous clay, calcined clay and speciality chemicals. After project completion, the installed capacity of company will be 279,200 MT per annum, and it will have turnover up to Rs 113 crore.

Rockwell to Build Recycling Plant

ockwell Automation has bagged a $11 million contract from Cynar to design and build a new end-of-life, plastic-to-fuel conversion plant in Bristol, UK, for SITA UK, a Cynar customer. Cynar has developed a technology that converts end-of-life plastics into fuel. Michael Murray, Cynar Chief Executive Officer and Chairman says, “Our technology represents a unique and profitable way to significantly decrease the amount of end-of-life plastics that are disposed of in landfills and incinerators. Rockwell strengthens our technology by providing complete design, engineering life-cycle maintenance, and local support.” “This win is significant for us in the waste-to-energy market,” remarks Terry Gebert, Vice President and General Manager for Rockwell Automation Global Solutions. “It includes the design and build of process skids, automation architecture, software, power control and engineering/start-up services in one fully integrated solution. Our global resources will help Cynar operate a profitable facility.”

april 2012 | industry 2.0

- technology management for decision-makers

Solar Plant on Building Roof

unEdison has set up a 100-kW solar plant on the roof of Scope International’s building in Chennai. Spread over 20,000 sq ft of roof space, the plant employs 875 solar panels. It is expected to produce three million units of electricity over the next 20 years. SunEdison India’s Managing Director, Pasupathy Gopalan said that this was the country’s first commercial rooftop solar project.

Nitco Acquires New Vardhman Vitrified

itco has signed a MoU to acquire 51 per cent of equity shares in New Vardhman Vitrified. The acquired company, New Vardhman Vitrified, is setting up a tile plant with a capacity to annually manufacture 4.95 million sq mt of vitrified tiles and 3.75 million sq mt of wall tiles. The new facility is expected to commence production within six months.

Steel Strips Wheels Bags Audi Order

eading German car maker Audi has selected Steel Strips Wheels to provide steel wheel rims for it’s A6 platform vehicles. The awarded business has a potential of €20.28 million (equivalent to Rs 137 crore) over a period of four years. Steel Strips expects to commence supplies in 2012-13.

Mold-Tek Starts Another Unit

old-Tek Packaging plans to start another manufacturing unit with a capacity of 4,000 TPA in Maharashtra. The new unit will mainly cater to the needs of Asian Paints, and will be equipped with facilities to manufacture Robotic IML (in mould labelling) decorated containers.

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industry update Dalal Engineering Upgrades ERP

alal Engineering, a manufacturer of stainless production equipment for the pharmaceutical, chemical and textile sectors, has deployed Infor10 ERP Enterprise to optimise its manufacturing capabilities. The company upgraded from an older version of Infor ERP to utilise the application’s new localisations for the Indian market. Commenting on the upgrade, Amrish Dalal, Vice President at Dalal Engineering says, “We chose Infor10 ERP for the deep industry functionality available in the software that suits a complex, high-tech metal fabrication business like ours. The new version of the application will help us meet all our information management needs in the areas of sale, purchase, warehousing, manufacturing and finance.”

Saint Gobain to Make Fire Resistant Glass

etrotech Saint-Gobain (a unit of Saint-Gobain Glass) is all set to manufacture its tough, flame resistant Contraflam glass in Chennai. The new production line, situated within Saint-Gobain’s glass complex at Sriperumbudur, near Chennai, was inaugurated by Jean Pierre Floris, President of the Innovative Material Sector, Saint-Gobain. This investment is part of a total investment of Rs 60 crore in the advanced glass solutions facility spanning an area of 90,000 sqft within the Saint Gobian glass complex. The Contraflam range of fire resistant glasses are suitable for use in hotels, refuge terraces of tall buildings, airports, hospitals, education institutions, data server rooms, malls and

ummins, a leading manufacturer of engines, generators and related components has completed 50 years of operations in India. The company’s presence in India stems from a joint venture incorporated in 1962. Ground was broken for a factory in Pune the same year, and the plant began manufacturing engines at the beginning of 1964. Since then, the company has grown to incorporate eight legal entities that collectively operate 20 manufacturing facilities, and employ nearly 14,000 people in 200 locations across the country. The eight companies include Cummins India, Cummins Generator Technologies India, Cummins Technologies India, Cummins Research & Technology India, Fleetguard Filters, Tata Cummins, Valvoline Cummins and KPIT Cummins Infosystems. Anant J Talaulicar, Managing Director of Cummins Group says, “With combined sales of Rs 10,500 crore in 2011, our businesses in India continue to grow profitably at double digit rates... we are strongly positioned to achieving our future growth targets of becoming a $7B group in five years.”

april 2012 | industry 2.0

ngersoll Rand has expanded production capacity at its manufacturing facility in Sahibabad. Oakley Roberts, Director of ARO fluid products at Ingersoll Rand comments, “The positive displacement pump market in India is experiencing above average growth rates driven by investments in industrial and process market segments. What we’ve done with the diaphragm pump expansion in Sahibabad is just the first in a series of investments.” Amar Kaul, Vice President and General Manager for Ingersoll Rand India said, “With increased production capacity, we are able to better meet the needs of our local customers.” The expanded facility will now make Ingersoll’s ARO Pro and EXP series of air-operated diaphragm pumps.

BGR bags NTPC Order multiplexes, IT buildings, office spaces, any area that has to be compartmentalized and fire rated. The Contraflam fire resistant glasses employ specialised inter-layered tempered glass technology. Since these glasses have to be used as part of a tested system to get the right fire performance, Vetrotech Saint-Gobain has tied up with various system providers to provide a complete ‘system solution’ to customers.

Cummins Completes 50 Years

Ingersoll Rand Expands Production

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GR Energy has received an order from National Thermal Power (NTPC) to supply two 660 MW supercritical boilers for a thermal plant in Solapur. The order is valued at €109.79 million plus Rs 1,121 crore (total order is approximately Rs 1,855 crore), and is to be executed in 48 months. BGR Energy will supply the boilers in collaboration with Hitachi Power. BG Raghupathy, Chairman and Managing Director of BGR Energy says, “This order is of great significance as we enter supercritical power equipment space.”

Elecon’s Rs 60-cr plant

lecon Engineering, a materials handling equipment and transmission products manufacturer, has expanded its gear manufacturing division with a Rs 60 crore plant. The facility will produce internal components for helical gear boxes. The capacity expansion, completed in two years, has doubled Elecon’s gear box manufacturing capacity to 1,000 a month.

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VAG to Increase Valve Production

purred by demand from the infrastructure sector, VAG Valves India is making plans to double production capacity at its Hyderabad facility within two years. V Seshaiah, Managing Director of VAG Valves India says, “Production at the Hyderabad unit is being ramped up from the current 25,000 units to 50,000 units annually. We plan to reach full capacity utilisation this year. In addition, we are planning to add capacity of another 50,000 units

at the existing facility over the next two years.” With the latest capacity addition, the company expects to double its turnover to Rs 100 crore. The Hyderabad plant manufactures three products (gate valves, butterfly valves and sluice gates valves), and the company sells 20 additional products made by its parent company. The German firm now intends to develop the Hyderabad facility for global supplies of air release valves. VAG India also plans

Caterpillar Inaugurates Plant

PTC Upgrades Creo Solution

atest release of PTC’s flagship MCAD solution introduces a new application for modular product design, improves concept design and user productivity. Michael Campbell, Divisional General Manager for the MCAD segment at PTC says, “The release of Creo 2.0 solves the chronic challenges customers face with traditional CAD tools. It increases collaboration, and protects data fidelity across user roles and design modes. PTC is also delivering the first technology component in its vision for managing modular product designs driven by the bill of materials.” To facilitate conceptual design, the new releases of Creo Parametric, Creo Direct, Creo Sketch, and Creo Layout combine to enhance collaboration, innovation and design exploration. Since all the Creo apps share a common data model, 2D geometry and design data can be easily shared by all users and apps and can be reused later in the design process to accelerate the

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to introduce products for the power and industrial sectors this fiscal year. The current size of the Indian valve market is estimated at Rs 4,500 crore, with more than 600 players mostly in the SME sector. The major players in the sector include Kirloskar Brothers and L&T.

transition to detailed design. Creo Layout 2.0 allows users to easily create a layout of complex assemblies, quickly explore design alternatives, import a variety of 2D CAD file types, sketch and modify 2D geometry, organise information with groups, tags and structure as well as dimensions, notes and tables. Once created, a 2D design in Creo Layout can serve as the basis for 3D models, allowing users to create assemblies in 2D or reference 2D geometry to create part features, and any changes made in 2D are reflected in 3D upon regeneration. According to PTC, the new release delivers more than 490 enhancements to the Creo app family, with Creo Parametric enabling automation of common tasks and featuring better performance for improved design productivity. New capabilities in Creo Direct help accelerate bid-proposals and early concept design.

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aterpillar India has set up a new backhoe loader manufacturing facility in Thiruvallur, near Chennai. The facility was inaugurated by Robert Droogleever, General Manager for Caterpillar BHL Worldwide who said, ”The demand for backhoe loaders has been gaining traction with the construction equipment industry. With local manufacturing and long-term commitment to our world-class standards, we aim to provide a quality product that meets this growing demand and brings us closer to our aim of attaining a market leadership position”. Kevin Thieneman, Country Manager, India, ASEAN & China added, “This facility, our fourth manufacturing operation in India, positions us to meet industry growth and enables us to better serve our customers with the broadest range of products in the industry.”

- technology management for decision-makers | april 2012

techwatch

n their efforts to render cars and trains more economical, manufacturers are trying to find lighter materials to replace those currently used. But there is a problem: Lighter materials tend not to be as tough as steel or aluminum, so they cannot simply be used in place of these metals. Rather, it is a question of manufacturers deciding which components can really afford to have weight shaved off and how to integrate them into the overall systems. A new material capable of withstanding even extreme stresses has now been developed for diesel engine housings on trains. It makes these components over 35 per cent lighter than their steel and aluminum counterparts. Working together with Bombardier, KraussMaffei Kunststofftechnik, Bayer MaterialScience, DECS, the DLR’s Institute for Vehicle Concepts, University of Stuttgart, Karlsruhe Institute for Technology and the Fraunhofer Institute for Chemical Technology ICT, have developed a polyurethane-based sandwich material that is extremely resilient. “To demonstrate the material, we manufactured a component that is subject to significant stresses and which has to fulfil a number of requirements—the diesel engine housing for a train,” says Jan Kuppinger, a scientist at the ICT. This housing is located beneath the passenger compartment, ie, between the car and the tracks. Not only does it shield the engine against flying stones and protect the environment from any oil that might escape, but in the event of a fire, it also stops the flames from spreading, thus meeting the flame retardant and fire safety standards for railway vehicles. Kuppinger adds, “By using this new material, we can reduce the component’s weight by over 35 per cent—and cut costs by 30 per cent.” The researchers opted for a sandwich construction to ensure component stability: Glass fibre reinforced polyurethane

april 2012 | industry 2.0

Picture courtesy: Fraunhofer ICT

Building Lightweight Trains Although the diesel engine housing is made of a very lightweight material, it can still withstand extreme stresses layers form the outer facings, while the core is made of paper honeycomb. Polyurethane is a bulk plastic combining two substances. Since it can be adapted to fulfil various requirements, the researchers began by incorporating various additives into their polyurethane to ensure it would meet fire-safety standards. Then, the partners optimised the standard manufacturing process, fibre spraying, by developing a mixing chamber which allows even more complex structures to be produced in any required size. The diesel engine housing they made is approximately 4.5m long and more than 2m wide. “This is the first time it has proved possible to use this process to manufacture such a large and complex component that also satisfies the structural requirements,”

states Kuppinger. Previously, one problem encountered with fibre spraying was that it was impossible to determine the precise thickness of the polyurethane top layers. But now the researchers have found a way to do this, using computer tomography to inspect the manufactured layers and then applying a specially-adapted evaluation routine to establish their exact thickness. This information helps to simulate the strength of the component, as well as its ability to withstand stresses. The scientists produced their diesel engine housing demonstrator as part of the PURtrain project, which is funded by the German Federal Ministry of Education and Research (BMBF). The demonstrator passed its first strength test, in which the scientists placed it in a test rig and then applied forces to it at various locations, measuring the extent to which it deformed. In the next stage, the researchers want to trial the component in a proper field test. If that too proves successful, it will then be possible to use the material to make roof segments, side flaps and wind deflectors for the automobile and commercial vehicle industry, and to ramp up the manufacturing process to produce medium volumes of between 250 and 30,000 units.

Greener Nanoparticle Catalyst

chemistry team at the University of Toronto has discovered environmentally-friendly iron-based nanoparticle catalysts that work as well as the expensive, toxic, metal-based catalysts that are currently in used by the drug, fragrance and food industry. The research, which was directed by Robert Morris, Chair of the Department of Chemistry, involved several steps. Suspecting the existence of nanoparticles, the team first set out to identify the iron catalysts. They then conducted investigations using an electron microscope to confirm that the iron nanoparticles were actually being formed during catalysis. The next step was to ensure that the iron nanoparticles were the active catalytic agents. This was done with polymer and poisoning experiments which showed that only the iron atoms on the surface of a nanoparticle were active. But a further challenge remained. “Catalysts, even cheap iron ones developed for these types of reaction, still suffer one major downfall,” explains Sonnenberg. “They require a one-to-one ratio of very expensive organic ligands—the molecule that binds to the central metal atom of a chemical compound—to yield catalytic activity. Our discovery of functional surface nanoparticles opens the door to using much smaller ratios of these expensive compounds relative to the metal centres.”

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Cheaper Catalysts for Chemical Processes Picture courtesy: Sykes Laboratory-Tufts University

A team of researchers at Tufts University has discovered that individual atoms can catalyse industrially important chemical reactions such as the hydrogenation of acetylene. They found that individual atoms of costly palladium (yellow peaks) when placed in the surface of copper metal (pink) help break apart hydrogen molecules (grey circles) into atoms, facilitating important chemical reactions

ydrogenation is a key process in a large number of industries, such as oil refining, where it is used to turn crude oil into gasoline. The key to hydrogenation is the presence of a catalyst—usually a metal, such as nickel or palladium, or an alloy—which allows the hydrogen atoms to bind with other molecules. Typically, metal alloys are mixtures of cheap common metals, such as nickel, and expensive precious metals, such as platinum or palladium. However, it is hard to produce alloys that are selective hydrogenation catalysts, which are able to attach the hydrogen atoms to specific sites on a molecule. Scientists at Tufts University have found a way to create a selective hydrogenation

catalyst by scattering single atoms of palladium onto a copper base. This catalyst requires less of the expensive metal, and the process is greener, too, offering potentially significant economic and environmental benefits. Led by Charles Sykes, an associate professor of chemistry in the School of Arts and Sciences, the group of researchers heated small amounts of palladium to almost 1,000oC. At that temperature, the metal evaporated like a gas, so that single atoms were released. These atoms, less than half a nanometer wide, embedded themselves into a copper metal surface about three inches away. Using a scanning tunnelling microscope, the researchers verified that single palladium atoms had indeed embedded themselves at scattered intervals in the copper.

Carbon Nanotubes Production is Simplified

group of researchers from Universiti Sains Malaysia (USM) have successfully developed a new method for producing carbon nanotubes at low prices—just $15 to $35 US per gram. Carbon nanotubes are widely used in the production of end products such as memory chips, rechargeable batteries, sport equipment and composites. Dr Abdul Rahman Mohamed says that a new rotation of the reactor system enables the continuous production of carbon nanotubes, without compromising the quality and authenticity. “The system is capable of producing up to 1000g of carbon nanotubes a day,” he said. He added that the developed system is also environmentally friendly as it operates at atmospheric conditions, is cost effective, and does not require a large space.

Changing Plastic Textures on Demand

ust as a chameleon changes its colour to blend in with its environment, Duke University engineers have demonstrated that they can alter the texture of plastics on demand. “By changing the voltage applied to the polymer, we can alter the surface from bumpy to smooth and back again,” says Xuanhe Zhao, Assistant Professor of mechanical engineering and materials science at Duke’s Pratt School of Engineering. “There are many instances when you’d want to be able to change at will a surface from one that is rough to slippery and back again.” Scientists have long been able to create different patterns or textures on plastics through a process known as electrostatic lithography, in which patterns are ‘etched’ onto a surface from an electrode

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Various stages of polymer changes Picture courtesy: Xuanhe Zhao

located above the polymer. However, once the patterns have been created by this method, they are set permanently. “Our new approach can dynamically switch polymer surfaces among various patterns ranging from dots, segments, lines to circles,” explains Qiming Wang, a student in Zhao’s laboratory. “The switch-

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ing is also very fast, within milliseconds, and the pattern sizes can be tuned from millimetre to sub-micrometre.” The findings follow Zhao’s earlier studies, which for the first time captured on videotape how polymers react to changing voltages. Those experiments showed that as the voltage increases, polymers tend to start creasing, finally leading to large craters. The new lithography strategy takes useful insights from this failure mechanism. The technology can be used in applications like microfluidics and camouflage. Other potential usages of the new method include creating surfaces that are self-cleaning and water-repellant, or even as platforms for controlled-release drug-eluting devices.

- technology management for decision-makers | april 2012

techwatch

New Thermoelectric Material Identified

n the continual quest for better thermoelectric materials—materials that convert heat into electricity and vice versa—researchers have identified a liquid-like compound whose properties give it the potential to be even more efficient than traditional ones. In identifying this new type of thermoelectric material, the researchers studied a material made from copper and selenium. Although it is physically a solid, it exhibits liquidlike behaviour due to the way its copper atoms flow through the selenium’s crystal lattice. “It’s like a wet sponge,” explains Jeff Snyder, a faculty associate in applied physics and materials science in the Division of Engineering and Applied Science at the California Institute of Technology (Caltech) and a member of the research team. “If you have a sponge with very fine pores in it, it looks and acts like a solid. But inside, the water molecules are diffusing just as fast as they would if they were a regular liquid. That’s how I imagine this material works. It has a solid framework of selenium atoms, but the copper atoms are diffusing around as fast as they would in a liquid.” A thermoelectric material generates electricity when there is a temperature difference between one end of the material and the other. A good thermoelectric material must be good at conducting electricity but bad at conducting heat. If it were good at conducting heat, the heat from the hot end would move to the cool end so fast that the whole material would rapidly reach the same temperature. When that happens, the electrons stop flowing. One way to improve thermoelectric efficiency, then, is to decrease a material’s ability to conduct heat. To that end, researchers have been developing thermoelectric materials with a mix of crystalline and amorphous properties, Snyder says. A crystalline atomic structure allows elec-

april 2012 | industry 2.0

trons to flow easily, while an amorphous material, such as glass, has a more irregular atomic structure that hinders heat-carrying vibrations from travelling. These heat-carrying vibrations travel via two types of waves. The first type is a longitudinal or pressure wave, in which the direction of displacement is the same as the direction of the wave. The second type is a transverse wave, in which the direction of displacement is perpendicular to the direction of the wave. In a solid material, a transverse wave travels because there is friction between the atoms, meaning that when one atom vibrates up and down, an adjacent atom moves with it, and the wave propagates. But in a liquid, there is minimal friction between the atoms, and a vibrating atom just slides up and down next to its neighbour. As a result, transverse waves cannot travel inside a liquid. The team found that because heatcarrying vibrations in a liquid can travel only via longitudinal waves, a material with liquid-like properties is less thermally conductive. In the case of the copper-selenium material that the researchers studied, the crystal structure

The blue spheres represent selenium atoms forming a crystal lattice. The orange regions in between the atoms represent the copper atoms that flow through the crystal structure like a liquid Picture courtesy: Caltech/Jeff Snyder/Lance Hayashida

of the selenium helps conduct electricity, while the free-flowing copper atoms behave like a liquid, damping down thermal conductivity. The efficiency of a thermoelectric material is quantified using a number called a ‘thermoelectric figure of merit.’ The copper-selenium material has a thermoelectric figure of merit of 1.5 at 1000o K, one of the highest values in any bulk material, the researchers say. NASA engineers first used this copper-selenium material roughly 40 years ago for spacecraft design, Snyder says. But its liquid-like properties were not understood at the time. This new research, he says, has identified and explained why this copper-selenium material has such efficient thermoelectric properties, potentially opening up a whole new class of liquid-like thermoelectric materials for investigation.

Structured Metamaterials Could Boost Wireless Power Transfer R

esearchers from Duke University collaborating with the Mitsubishi Electric Research Laboratories have proposed a way to enhance the efficiency of wireless power transfer systems by incorporating a lens made from a new class of artificial materials. When a changing electric current flows through a wire, it generates a magnetic field, which can induce a voltage across a physically separate second wire. This electromagnetic phenomenon is already used commercially to recharge cordless electric toothbrushes, mobile phones etc. The research team hypothesised that a superlens, which can only be made from artificially-structured metamaterials, may do the trick. A superlens has a property called negative permeability. This means it can refocus a magnetic field from a source on one side of the lens to a receiving device on the other side. The team determined that a superlens should increase system performance, even when a fraction of the energy was lost by passing through the lens.

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Cylinder Makes Contents Invisible to Magnetic Fields

cientists at the Universitat Autonoma de Barcelona, in collaboration with an experimental group from the Academy of Sciences of Slovakia, have created a cylinder which hides contents, and makes them invisible to magnetic fields. The device was constructed using superconductor and ferromagnetic materials available on the market. The cylinder is invisible to magnetic fields, and represents a step towards the invisibility of light. Researchers at UAB, led by Àlvar Sánchez, came up with the mathematical formula to design the device. Using an extraordinarily simple equation, scientists described a cylinder which, in theory,

is absolutely undetectable to magnetic fields from the outside, and maintains everything in its interior completely isolated from these fields as well. Equation in hand and with the aim of building the device, UAB researchers contacted the laboratory specialising in the precise measurement of magnetic fields at the Institute of Electrical Engineering of the Slovak Academy of Sciences in Bratislava. The superconductor layer of the cylinder prevents the magnetic field from reaching the interior, but distorts the external field and thus makes it detectable. To avoid detection, the ferromagnetic outer layer made of iron, nickel and chrome, produce the opposite effect. It attracts the magnetic field lines and compensates the distortion created by the superconductor, but without allowing the

field to reach the interior. The global effect is a completely non-existent magnetic field inside the cylinder and absolutely no distortions in the magnetic field outside. Magnetic fields are fundamental for the production of electricity. For this reason controlling this field represents an important achievement in technological development. Scientists are perfectly familiar with the process of creating magnetism. However, the process of cancelling at will is a scientific and technological challenge, and the device created by UAB scientists opens the way for this possibility. The results of this research project also pave the way for possible medical applications. In the future, similar devices designed by UAB researchers could serve to block a pacemaker or a cochlear implant in a patient needing to undergo a magnetic resonance.

Innovative 3D Designs Double Generation of Solar Power

ntensive research around the world has focussed on improving the performance of solar photovoltaic cells and bringing down their cost. But little attention has been paid to the best ways of arranging those cells, which are typically placed flat on a rooftop or other surface, or sometimes attached to motorised structures that keep the cells pointed toward the sun as it crosses the sky. A team of MIT researchers has come up with a very different approach: building cubes or towers that extend the solar cells upward in three-dimensional configurations. Amazingly, the results from the structures they’ve tested, show power output ranging from double to more than 20 times that of fixed flat panels with the same base area. The biggest boosts in power were seen in the situations where improvements are most needed: in locations far from the equator, in winter months and on cloudier days. The MIT team initially used a computer algorithm to explore an enormous

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Two small-scale versions of 3D photovoltaic arrays were among those tested by Jeffrey Grossman and his team on an MIT rooftop to measure their actual electrical output throughout the day Picture courtesy: Allegra Boverman

variety of possible configurations, and developed analytic software that can test any given configuration under a whole range of latitudes, seasons and weather. Then, to confirm their model’s predictions, they built and tested three different arrangements of solar cells on the roof of an MIT laboratory building for several weeks. While the cost of a given amount of energy generated by such 3D modules exceeds that of ordinary flat panels, the expense is partially balanced by a much higher energy output for a given footprint, as well as much more uniform power output over the course of a day, over the seasons of the year, and in the face of blockage from clouds or shadows. These improvements

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make power output more predictable and uniform, which could make integration with the power grid easier than with conventional systems, the researchers say. The basic physical reason for the improvement in power output—and for the more uniform output over time—is that the 3D structures’ vertical surfaces can collect much more sunlight during mornings, evenings and winters, when the sun is closer to the horizon. The algorithms can also be used to optimise and simplify shapes with little loss of energy. It turns out the difference in power output between such optimised shapes and a simpler cube is only about 10 to 15 per cent—a difference that is dwarfed by the greatly improved performance of 3D shapes in general, he says. The team analysed both simpler cubic and more complex accordion-like shapes in their rooftop experimental tests. In general, 3D shapes could be an advantage in any location where space is limited, like urban environments.

- technology management for decision-makers | april 2012

techwatch

Picture courtesy: US DOE/Oak Ridge National Laboratory

New Process Converts Polyethylene Into Carbon Fibre

Carbon fibres having unique surface geometries, from circular to hollow gearshaped, are produced from polyethylene using a versatile fabrication method. The resulting carbon fibre exhibits properties that are dependent on processing conditions, rendering them highly amenable to myriad applications

olyethylene used in plastic bags can be turned into something far more valuable through a process being developed at the US Department of Energy’s Oak Ridge National Laboratory. A team led by Amit Naskar of the Materials Science and Technology Division has outlined a method that allows not only for production of carbon fibre, but also the ability to tailor the final product to specific applications. “Our results represent what we believe will one day provide the industry with a flexible technique for producing technologically innovative fibres in myriad configurations such as fibre bundle or non-woven mat assemblies,” Naskar said.

Using a combination of multicomponent fibre spinning and a sulfonation technique, Naskar and colleagues have demonstrated that they can make polyethylene-base fibres with a customised surface contour, and manipulate the filament diameter down to the submicron scale. The patent-pending process also allows them to tune the porosity, making the material potentially useful for filtration, catalysis and electrochemical energy harvesting. Naskar notes that the sulfonation process allows for great flexibility as the carbon fibres exhibit properties that are dictated by processing conditions. For this project, the researchers produced carbon fibres with unique cross-sectional geometry, from hollow circular to gear-shaped by using a multi-component melt extrusion-based fibre spinning method. “We dip the fibre bundle into an acid containing a chemical bath where it reacts and forms a black fibre that will no longer melt,” Naskar explains. “It is this sulfonation reaction that transforms the plastic fibre into an infusible form. At this stage, the plastic molecules bond, and with further heating cannot melt or flow. At very high temperatures, this fibre retains mostly carbon and all other elements volatise off in different gas or compound forms.”

Sulfur in Every Pore

rom smartphones to e-bikes, the number of mobile electronic devices is steadily growing around the world. As a result, there is an increased need for batteries that are small and light, yet powerful. As the potential for the

april 2012 | industry 2.0

further improvement of lithium-ion batteries is nearly exhausted, experts are now turning to a new and promising power storage device: lithium-sulfur batteries. In an important step toward the further development of this type

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of battery, a team led by Professor Thomas Bein of LMU Munich and Linda Nazar of Waterloo University in Canada, has developed porous carbon nanoparticles that utilise sulfur molecules to achieve the greatest possible efficiency. In prototypes of the lithium-sulfur battery, lithium ions are exchanged between lithium and sulfurcarbon electrodes. The sulfur plays a special role in this system: Under optimal circumstances, it can absorb two lithium ions per sulfur atom. It is therefore an excellent energy storage material due to its low weight. However, sulfur is a poor conductor, meaning that electrons can only be transported with great difficulty during charging and discharging. To improve the battery design the scientists at Nanosystems Initiative Munich (NIM) are striving to generate sulfur phases with the greatest possible interface area for electron transfer by coupling them with a nanostructured conductive material. To this end, Thomas Bein and his team at NIM first developed a network of porous carbon nanoparticles. The nanoparticles have 3 to 6-nanometer wide pores, allowing the sulfur to be evenly distributed. In this way, almost all of the sulfur atoms are available to accept lithium ions. At the same time they are also located close to the conductive carbon. “The sulfur is very accessible electrically in these novel and highly porous carbon nanoparticles and is stabilised so that we can achieve a high initial capacity of 1200 mAh/g and good cycle stability,” explains Bein. The carbon structure also reduces the so-called polysulfide problem. Polysulfides form as intermediate products of the electrochemical processes and can have a negative impact on the charging and discharging of the battery. The carbon network binds the polysulfides, however, until their conversion to the desired dilithium sulfide is achieved. The scientists were also able to coat the carbon material with a thin layer of silicon oxide which protects against polysulfides without reducing conductivity.

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cover story

Fulfilling

The Promise A McKinsey analysis discovers that rising demand coupled with the desire of multinationals to diversify their production into low-cost plants located in countries other than China could help India’s manufacturing sector reach $1 trillion, while creating up to 90 million domestic jobs, and help it emerge out of the shadows by rajat dhawan, gautam swaroop and adil zainulbhai

april 2012 | industry 2.0

- technology management for decision-makers

ndia’s manufacturers have long performed below their potential. Although the country’s manufacturing exports are growing (particularly in skill-intensive sectors such as auto components, engineered goods, generic pharmaceuticals, and small cars), the manufacturing sector generates just 16 per cent of India’s GDP. Moreover, a majority of India’s largest manufacturers don’t return their cost of capital, a factor that dampens investment in the sector and makes it less attractive than its

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counterparts in competing economies, such as China and Thailand. Indeed, China’s manufacturers captured nearly 45 per cent of the global growth in manufacturing exports from low-cost countries between 2001 and 2010, whereas India accounted for a paltry five per cent. India’s rapidly expanding economy, which has grown by seven per cent a year over the past decade, gives the country’s manufacturers a huge opportunity to reverse the tide. History shows that as incomes rise, the demand for consumer goods skyrockets. Many of India’s consumption sectors, including food and beverages, textiles and apparel, and electrical equipment and machinery, have reached this inflection point. Our research shows that these sectors will grow from 12 to 20 per cent annually over the next 15 years.

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The global economic growth is poised to create opportunities for low-cost manufacturers everywhere: by 2015 the market for manufactured goods from low-cost countries will more than double, to nearly $8 trillion a year. China will probably capture much of the growth. Still, we estimate that up to $5 trillion a year will be up for grabs as global companies seek to diversify production and sources of supply beyond China, both to address rising factor costs there and to chase domestic demand in other countries. India has a massive workforce, an emerging supply base, and access to natural resources needed in production—notably, iron ore and aluminum for engineered goods, cotton for textiles, and coal for power generation. The country could become a viable manufacturing alternative to China in industries ranging from apparel to auto components and might even dominate some skill-intensive manufacturing sectors. If India’s manufacturing sector realised its full potential, it could generate 25 to 30 per cent of GDP by 2025, thus propelling the country into the manufacturing big leagues, along with China, Germany, Japan, and the United States. Along the way, we estimate that India could create 60 million to 90 million new manufacturing jobs and become an attractive investment destination for its own entrepreneurs and multinational companies. India’s product makers must embrace global best practices in operations—while tailoring them to India’s unique environment—to improve the efficiency and effectiveness of the country’s manufacturing investments dramatically.

Bolster Operations

India’s legacy of industrial protectionism has left many of the country’s manufacturers uncompetitive. To seize the opportunities now available to them, they must dramatically increase the productivity of their labour and capital. The rewards could be significant: a McKinsey benchmarking study of 75 Indian manufacturers found that for an average company, the potential productivity improvements represented about seven percentage points in additional returns on sales.

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- technology management for decision-makers | april 2012

cover story Improve Labour Productivity

Indian manufacturers lag behind their global peers in production planning, supply chain management, quality, and maintenance—areas that contribute to their lower productivity. Consequently, workers in India’s manufacturing sector are almost four and five times less productive, on average, than their counterparts in Thailand and China, respectively. Nonetheless, some Indian companies are making strides. Tata Steel, for instance, improved its output per worker by a factor of eight between 1998 and 2011, largely by adapting its operational and management practices to India’s unique conditions. The company dramatically improved the output of its blast furnaces, for example, by learning to adjust them continually to account for the large variations in the ash content of Indian coal from shipment to shipment. In this way, the steelmaker can burn coal with higher ash content more efficiently than would otherwise be possible. The company has also made significant organisational changes to support the new ways of working. To make employees more accountable, for example, Tata Steel reduced the number of managerial layers to five, from 13. It also began investing heavily in building analytical and interpersonal skills among frontline managers and staff to ensure access to scarce competencies. Today, the company’s Shavak Nanavati Technical Institute trains more than 2,000 employees a year in

both hard skills as well as soft ones, such as conflict resolution. Together, these moves strengthened the company’s focus on continuous improvement— Tata Steel won the coveted Deming Prize in 2008 for advances in process excellence and quality improvements—and helped it become one of the world’s lowest-cost steel producers.

Improve Capital Productivity

India’s manufacturers must also improve the productivity of their capital, in some cases by 50 per cent or more. While such improvements are challenging, they are possible if companies set bold targets and adopt an ‘owner–entrepreneur’ mindset when tackling large capital projects or making other big investments. For example, a global mining and metals company that was setting up aluminum smelter operations in India set a capital cost target 50 per cent lower than the industry’s global average. The company then empowered its project teams to reach the goal—for example, by giving them greater freedom to make decisions about capital specifications and which low-cost equipment suppliers to use. (A technical and commercial audit team of senior managers ensured that the new approach didn’t compromise the quality of capital equipment or backfire in the form of graft). Moreover, the company did not give the contract out on an EPC (engineering, procurement and consulting) basis. Instead, it brought together a

India could be competitive in a number of industries

By 2025, India could . . .

Sectors

. . . establish leadership in these sectors and become one of the top 2 low-costcountry exporters.

• Aluminium • Apparel • Auto components • Iron and steel

• Jewellery • Leather • Pharmaceuticals

• Power transmission and distribution equipment • Specialty chemicals

. . . capture significant share in these sectors and become one of the top 3 to 5 low-cost-country exporters.

• Basic chemicals • Commercial heating, ventilation, and air conditioning • Computer hardware • Consumer electronics • Domestic appliances • Engines and turbines

• Fabricated metal products • Footwear • Industrial- and medicalelectronics equipment • Machinery • Miscellaneous electric equipment • Motor vehicle assembly • Other basic metals

• Paper and related products • Petroleum and coal products • Plastic products • Storage media • Telecom equipment • Textiles

april 2012 | industry 2.0

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mix of Chinese and European More than half of India’s manufacturing companies do companies to finalise the design not return their cost of capital and supply the equipment, Relationship between return on invested capital (ROIC) and weighted average cost and the integration and of capital (WACC) for top 1,000 manufacturing companies in India,1% commissioning work was done By sector Capital goods in-house, thus saving much of Food and beverage products Durables and textiles Construction materials Metals and mining the margin that would otherwise Utilities Energy have been given away. Together, Paper products Chemicals Auto Pharma these moves helped the company Overall to launch its Indian smelter operations at a capital cost 50 54 46 per cent below industry averages (and 20% less than other players 92 26 in the same market). 98 4 4 6 5 Many Indian companies are 13 5 7 4 4 8 46 3 56 4 4 also assessing the technical de8 1 4 5 9 2 5 sign of their capital equipment to 4 28 make trade-offs between capital expenditures and lifecycle expectations for reliability—essentially ‘Indianising’ the specifications. Tata Power, for example, has lowered its capital expenditures in a drive to identify relatively inexpensive designs and specificaROIC less than WACC ROIC greater than WACC tions for big projects. During the 1 planning stages of a new 4,000 Based on India’s 2006–10 median 5-year after-tax ROIC (excluding goodwill) and long-term WACC (estimated at ~12%). MW facility, for instance, the company brought together customers, suppliers, and Tata engineers to make a number of Targeted Skill Development Indianised design decisions. These included using India’s manufacturers could learn a lot from the cheaper welded tubes instead of seamless ones in IT sector’s experience in promoting the largefeedwater heaters, and redesigning the layout of the scale development of skills. India’s IT services and turbine-generator building to make it more compact. business-process-outsourcing sectors together Together, such trade-offs saved the company more hire nearly a million new recruits a year and bring than $100 million in capital outlays while preserving them up to speed in just months. A key factor in this the plant’s core capabilities and meeting standards success was the early recognition among Indian IT for safety and reliability. companies that the number of engineering graduates Meanwhile, some Indian companies are working in computer sciences wouldn’t meet the needs of the to raise the productivity of their existing assets—for country’s burgeoning IT sector. In response, Infosys, example, by focussing on the reliability of equipWipro, and other companies began hiring graduates ment. In our experience, throughput improvements from all engineering disciplines and using in-house from 40 to 100 per cent are possible when Indian curricula and faculties to build skills among new companies apply traditional lean-management hires. That approach ultimately led to the formation techniques to keep machines running longer, and to of a successful network of independent, privately reduce time wasted during retooling and production owned computer-training institutes. line change overs. Tata Steel, for instance, focussed India’s manufacturers should follow a similar on standardised tasks throughout its mills and path by establishing in-house training centres to trained workers to uncover the root causes of equippromote vital manufacturing roles, including those ment problems. One of the company’s melting shops of fitters, machinists, maintenance engineers, and we studied raised its production dramatically over welders. Some Indian companies are already taktwo years by standardising jobs and empowering its ing matters into their own hands. For example, to operations and maintenance employees to identify impart vocational skills, India’s largest automaker, potential problems of key machines that had previMaruti Suzuki, has adopted six technical institutes ously been prone to creating production bottlenecks. across the country, some in regions with little manu-

Infographics: Charu Dwivedi

n= 156

37 233 24 76 59 41

19 79 21 74 26

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industry 2.0

- technology management for decision-makers | april 2012

cover story facturing presence. By using the company’s own managers as faculty for some classes, Maruti Suzuki inculcates trainees with a strong feel for its culture as well. The automaker is now expanding its training programmes to include employees of key suppliers. Although training programmes make good business sense, they are also increasingly necessary to get local populations to accept the establishment of a manufacturing footprint in India. Tata Motors’ partnership with the Gujarat state government to improve the skills of local workers, for example, helped the company to ameliorate concerns about the displacement of residents by the construction of a Tata Nano car factory, while giving the company access to new workers. Today, nearly 1,000 people

who live within a 10-kilometre radius of this Sanand factory make Nanos. Similarly, Tata Steel has agreed with the Orissa state government to train and improve the skills of workers living near a planned steel plant in Kalinganagar. The company has pledged to give local villagers jobs in the project’s execution and operations. Frontline workers aren’t the only ones whose skills need upgrading; India’s manufacturers must also improve those of managers. Consider the experience of the cement maker Holcim, where executives set—and achieved—such goals as significantly improving the reliability and energy efficiency of the production process, as well as other important operating metrics at the company’s Indian subsidiaries.

Imperatives for the Government

ndia’s central and state governments must eliminate four barriers that slow down the efforts of the country’s manufacturers to improve their capital and labour productivity. Product market and ownership barriers: More than half of India’s employees in the organised sector (regulated by labour laws) still work in governmentowned institutions—for example, in the base-metals, petroleum, and power generation industries. Product market barriers and government ownership tend to lower productivity and distort markets significantly. Yet receding levels of government ownership have dramatically improved the productivity of labour and capital in other parts of the economy. India’s automotive sector, for example, was among the first to be liberalised in the early 1990s, and the entry of multinational and domestic players sparked a competitive transformation. Subsequently, between 1995 and 2005 the automotive sector’s GDP per manufacturing employee grew by a factor of 15. The Indian government deems some sectors (aerospace and defence, for example) as strategic and limits the extent of foreign participation, yet for a majority of sectors, greater private and multinational participation can help unlock productivity structurally.

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Land market barriers: Distortions in the land market (including high stamp duties and cumbersome regulations) are a huge barrier to productivity improvements in India. In the steel industry alone, we estimate that more than $60 billion of committed capital currently awaits environmental or land clearances. Much of this planned investment has already been delayed by three to five years. Challenges to aggregating land in India also make it tough for suppliers and manufacturers to raise their overall productivity by locating facilities closely together and thus reaping network effects enabled by streamlined supply chains, the sharing of infrastructure, and mutual learning opportunities. Labour barriers: Stringent labour laws make it difficult for Indian companies to restructure, and thus to increase their productivity and expand output. Firing underperforming workers is difficult in India, and this ongoing problem translates into high levels of unproductive labour at many companies. Encouragingly, India’s National Skill Development Corporation (NSDC) is experimenting with ways to use public–private partnerships to strengthen vocational training. Coupled with sensible labour laws, such moves could begin to make a difference.

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Infrastructure: Urgent attention is needed to create more railways, roads, ports, and power-generating capacity across India. Poor infrastructure saps industrial productivity and leaves the country at a huge disadvantage compared with others. Bad road conditions, for example, limit trucks carrying cargo in India to an average distance of only about 250–300 kilometres a day, compared with the developed world’s average of 500 kilometres. Similarly, turnaround times for ships loading and unloading in India’s ports can be up to four days, compared with only 10 to 12 hours in Hong Kong. Recently, India’s Ministry of Commerce & Industries called for the development of National Investment and Manufacturing Zones (NIMZs). The encouragement of such industrial clusters is a positive development, since they are a proven way of catalysing the efforts of the public and private sectors to address infrastructure challenges. In Jharkhand, for instance, a cluster in the city of Jamshedpur attracted dozens of industrial companies that teamed up to improve the local infrastructure. Industrial clusters help spark the kinds of supplier ecosystems that help innovation thrive.

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Many sectors in India will experience strong domestic market growth driven by increased consumption Compound annual growth rate of per capita consumption,1 2009–25, %

17 23

Indian manufacturers lag behind their global peers in key operational areas

Technical systems The way corporate resources are deployed to meet customer needs at lowest cost

Electrical Machinery Food and beverages Motor vehicles Base metals (steel) Chemicals Electrical Machinery 1 Based on consumption per 1,000 people; motor vehicles based on sales of vehicles per 1,000 people. Source: Global Insights; McKinsey analysis

Management infrastructure Formal structures and processes used to manage technical systems and achieve business objectives

Capabilities, mindsets, and behaviours The way people think and feel about their work and conduct themselves in their workplaces

At the heart of this initiative is an academy the company set up in its Indian plant to help future leaders bolster their skills through a ‘field and forum’ approach that intersperses classwork with hands-on fieldwork in the form of operational-improvement projects. Similarly, Holcim trains its managers to focus performance dialogues with frontline employees on the importance of identifying the root causes of problems and of finding potential solutions through cross-functional teams. The company uses operational ‘war rooms’ to serve as a clearinghouse for the best ideas and to uncover the best contributions. In parallel, Holcim created an ambitious leadership programme to support the personal development of up-and-coming manufacturing leaders.

Seizing Opportunity

The combination of rocketing domestic demand and the multinationals’ desire to diversify their manufacturing footprint offers Indian product makers a oncein-a-generation opportunity to emerge from the shadow of the country’s services sector. By improving their productivity and bolstering operations, they could become an engine of economic prosperity for the whole country. The country’s central and state governments can help by dismantling barriers in markets for land,

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Manufacturers should establish in-house training centres to promote vital manufacturing roles labour, infrastructure, and some products. But the lion’s share of the improvement must come from India’s manufacturers themselves. Recognising this, a few leading ones are upgrading their competitiveness by bolstering their operations to improve the productivity of labour and capital, while launching targeted programmes to train the plant operators, managers, maintenance engineers, and other professionals the country needs to reach its manufacturing potential. A closer look at the experiences of successful companies offers lessons for other Indian manufacturers, and for global product makers considering opportunities in India. Rajat Dhawan is a director in McKinsey’s Delhi office, of which Gautam Swaroop is an alumnus; Adil Zainulbhai is a director in the Mumbai office. This article was originally published in McKinsey Quarterly, www.mckinseyquarterly.com. Copyright (c) 2012 McKinsey & Company. All rights reserved. Reprinted by permission.

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- technology management for decision-makers | april 2012

Information Technology

The Rise of

Consumer IT I

t used to be that any change in an organisation would flow from the top down. For example, the C-suite would decide that a new computer system was needed or that a new policy should be enacted, Then the mandate would trickle all the way down to the frontline workers. Sure, it would get resistance along the way, but eventually the change took place just as the leaders wanted. Today, especially when it comes to the consumerisation of IT, the change process is quite different. What we’re seeing is a 'bottom-up' approach, where the end user (the employee) is pressuring the CIO and other C-suite leaders to change. The consumerisation of IT is extremely disruptive. Not only is the change coming from the opposite direction as what the CIO is used to, but it’s also coming so fast that many CIOs are unsure of what to do. So, what’s really behind this consumerisation of IT trend? In one word? Mobility. Because of advances in bandwidth, storage, and processing power, the

april 2012 | industry 2.0

tools an average consumer can purchase are extremely powerful. Even as recent as 10 years ago, technology tools for the consumer weren’t that impressive, and didn’t have much business application. As such, CIOs simply had to pronounce mandates like “No video games on your work computer,” or “Don’t bring in outside CD-ROMs,” and “No personal cell phones in the office” and the problem was solved (or so they thought).

Kicking It 'Old School'

In the early days of consumerisation, we didn’t have wireless data or cloud computing, much less the bandwidth, storage, and processing power to make things powerful, so the threat was perceived as minimal. For example, even the early BlackBerry wasn’t a true smart phone. It didn’t give you video, audio, or a browser. It was simply a phone and email tool—something the CIO could easily control. But that was then, and this is now. Today, the average person can purchase, understand, and

- technology management for decision-makers

easily implement an array of new technologies designed to make work and life easier. Consider this: almost half of employees feel that their personal consumer devices and software are more useful than the tools and applications provided by their IT departments; almost half of employees feel comfortable and capable in making their own purchasing decisions to apply technology tools for work; and almost a third are willing to pay for their own devices and applications to use at work. Now, it’s easy to see why the consumerisation of IT trend is so disruptive. This trend is not just in the United States, it’s global. In fact, the leaders in the consumerisation trend are China and India, followed by Brazil and Mexico. In other words, it’s spreading and growing rapidly. So if you’re one of the 73 per cent of executives who have not addressed this trend yet, you need to do so now.

The Big Boost

What really gave the consumeri-

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Illustration: Prince Antony

With a little creativity and lot of foresight, consumer devices can be effectively deployed for business advantages by daniel burru

that the increasing penetration of consumer technology in the enterprise communication, while only 28 per cent of employers believe that to be the case.

Stop Reacting, Start Anticipating

sation of IT a big push is Apple with their iPhone and iPad. Apple took the concept of a smartphone and raised it to a new level. Additionally, it launched the apps trend, which also started as a consumer oriented offering rather than a business one. Now, with a small iPhone or iPad, consumers could have a true multimedia computer in their hand. Of course, competitors quickly came and launched even more consumer-oriented powerful tools, making the trend grow quickly. Armed with these new tools and the widespread deployment of 3G and 4G wireless as well as WiFi, employees quickly realised, “I don’t need be tethered or plugged in. I can do my work wirelessly and remotely. And I can use amazingly powerful tools that I like better than the ones IT is providing me.” Remember, apps (even the business productivity ones) are inexpensive, easy to install, powerful, and focussed. If you don’t like one, you can easily uninstall it with the push of a

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button. And, from the employee’s perspective, they know their job and what they need to do better than anyone in IT. So, why shouldn’t they decide what tools they use and how they use them? This is why we often see business professionals with two devices: the one they want to use and the one their IT department is making them use. And while you may think your employees are always keeping the two devices separate, that they are always using their business device for business use and their personal one for personal use, think again. In a Unisys-sponsored research study of 2,660 information workers, researchers found that employees are bringing personal devices into the enterprise at an increasing rate. In fact, 40 per cent of the devices they use to access business applications are personally owned. That’s a 10 percentage point increase from the previous survey year. Additionally, the survey concurred with my statement

Unfortunately, most IT departments are reactionary. They didn’t anticipate the consumerisation of IT trend even though it was relatively easy to see. And when it hit in full force, they became crisis managers rather than opportunity seekers. They viewed the consumerisation of IT as a threat and tried to protect and defend the company and the network, never realising that the consumerisation of IT is a hard trend. It’s not here today and gone tomorrow; it’s here forever and it’s only going to accelerate. Why? Because the trifecta of bandwidth, storage, and processing power is continuing to march on, giving us even more powerful tools in the consumer market in an inexpensive way and very quickly. Here’s one example of what we see happening in IT departments across the country. The IT help desk that companies provide has little ability to support and help their employees. The help desk and the IT department are designed to help with the 'approved' devices and tools. But now they are seeing tools that are not approved and don’t know how to help with them. While this issue may seem small, it quickly slows productivity and causes many employees to think negatively of IT. If you’re ready to stop reacting and start seeing the opportunity staring at you right now, here are some steps you can take to turn the consumerisation of IT trend into your company’s competitive advantage: 1. Start a dialogue The benefits of the consumerisation of IT are clear. It provides greater business agility, faster

industry 2.0

- technology management for decision-makers | april 2012

Information Technology problem solving and innovation, increased collaboration, increased communication, higher productivity, and overall improved employee satisfaction because people are using the devices they want to use. Additionally, your Gen-Y and GenX employees are tech-savvy and need to use the newest devices so they can feel empowered. Survey the people in your company to find out what’s working and what’s not working for them technologically-speaking. As the CIO, you need to know what they are using and trying. Ask them such things as, “How are you using the device or technology when you travel?” “What do you wish you had that we don’t currently provide?” and “What tools do you think are best?” In other words, start the dialogue.

Either way, if your people are using it, you want to know how they’re using it so you can replicate their successes with the technology company-wide. So rather than have employees hide their technology tools from you (which makes IT out to be the 'bad guys'), strive to co-create the future with the staff. 3. Make recommendations Help employees make an informed choice. According to the findings, 53 per cent of employees surveyed say that mobile devices such as laptops, smart phones, and tablets are their most critical devices for doing work. This is up from 44 per cent in 2010. In addition, 65 per cent of employees say that a mobile device will be their most critical work device in 2012.

“Unfortunately, most IT departments didn't anticipate the consumerisation of IT trend” Engage your employees so they see IT as a resource rather than a deterrent to technological innovation. Then, after the conversation, test the tools the employees mentioned. Get to know how they work and put them on your company’s approved list. 2. Spur innovation You and I both know that no matter what policies you enact to keep outside technologies away from the enterprise, the employees are going to buy them and bring them into work anyway. So, instead of defaulting to 'no' when something new comes out, encourage your people to bring the new item to IT to look at it, track it, and provide suggestions for how the company can use it. After all, the next new device may have a huge business use.

april 2012 | industry 2.0

Despite this growing awareness, however, the research found that IT departments are falling further behind in the consumerisation race. For example, employees report using their mobile devices for business purposes at twice the rate that IT executives believe to be the case (69% usage reported by employees versus 34% usage reported by IT executives). In addition, 44 per cent of employees report using social media. After your IT staff analyses the potential tools, create a list of the ones you recommend employees use, even though the company does not supply that particular item. In other words, if someone wants to get a tablet, an ultra-light laptop, a smartphone, or even

- technology management for decision-makers

an app, they can go to IT and see which ones IT recommends and why. This approach engenders collaboration, elevates IT to the status of a trusted advisor, and puts IT back in the driver's seat. 4. Help employees stay safe Develop some tools to help secure consumer technology, and create secure doorways of entry for your staff. Again, your employees are going to find their own ways around any security features you enact on the network. So why not create a path, a 'doorway', to help them get in and work in a secure and productive way.

Opportunity Favours the Bold For CIOs, the consumerisation of IT brings change into the organisation from a different direction. But it doesn’t have to be that way. You can become more innovative, more opportunity-focussed, and ultimately more valuable to the organisation when you lead the change by embracing the trend rather than fighting it. It’s time to stop enforcing the status quo and instead, look at the new consumer-focussed devices and tools from a business perspective. Anticipate what your employees want and need to do their jobs better—and then devise smart and flexible policies for managing and securing those technologies. You will find that the consumerisation of IT can unlock new opportunities and revenue streams for your organisation.

Daniel Burrus is one of the world’s leading technology forecasters and business strategists, and is the Founder and CEO of Burrus Research, a research and consulting firm that monitors global advancements in technology driven trends to help clients better understand how technological, social and business forces are converging to create enormous, untapped opportunities. This article has been reprinted with permission from CIO Update. To see more articles regarding IT management best practices, please visit www.cioupdate.com.

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strategy reinforcing the points with relevant stories, pictures, videos and examples. Remember, not everyone absorbs information the same way. Do you want your audience to squint at a text-dense PowerPoint slide, or listen to your message?

2. Distribute a Handout

Think Before you

Speak A public speech or presentation can often make or mar the perception of a leader. A look at common mistakes— and how to avoid them by david lim

o you fear or welcome the opportunity to make a speech or a presentation? Are you uncomfortable addressing a gathering, or leading a discussion with a large group of people? If the answer to these questions is yes, then join the large group of senior executives who fear fumbles and failure on the podium. Here is how to avoid common mistakes that even experienced speakers make—and make your presentation a riveting experience for the audience.

1. Have a Focus

In the rush of things, too many speakers feel they need to cram in as much information as possible in a presentation. The consequences? Lack of focus, or an information overload. For a typical 30-minute presentation, you should look at making three to four points. The rest of the time should be spent

april 2012 | industry 2.0

- technology management for decision-makers

Remember to shoot yourself the next time you put more than a few lines of text on a PowerPoint slide. If you must include gobs of information, dense graphs, and complex tables then create a separate handout to support your presentation. I see this mistake many times every year as speakers struggle to help an audience make sense of a dense spread sheet slide—when they should be zooming in on only the most relevant information.

3. Move Around the Stage

Depending on the height of the platform and podium, some speakers become ‘talking heads’—with only their heads or upper shoulders visible to an audience. This often because speakers feel ‘safe’ anchored to a podium, when in fact, they could be enhancing their presentation by putting their whole body into it. The other extreme is when they move away from the podium, pace up and down the stage; or move aimlessly on the stage, fretting away nervous energy, very much like a caged tiger in a zoo. As a speaker, plan to step away from the podium and present on stage in a relaxed collegial manner. Use body language, gestures, postures and body ‘shapes’ to drive home the message. Stand still when making a key point, and move only if you need to. Strong positions of influence are right-front or centre-front of the stage.

4. Ditch Useless Jokes

I once listened to a speaker sprinkle his message liberally with jokes and one-liners for 20 minutes. It only served to confuse me about the point of his message, as none of the humour was linked to the message. Choose humour wisely, and ensure it enforces or supports a point you are making.

5. Craft Strong Opens and Closes

When I was much younger, I loved to demonstrate magic tricks. A few key things about pulling off a great magic show is: a) grab the audience’s attention, b) add super-attention, c) leave them wanting more. If your opening is weak, you will fail to sustain the audience’s interest. Open with a powerful story, quote or define what you hope to achieve in the presentation. These are less of a cliche than a tired joke. Finish or close with a story, metaphor that honours the content of your presentation, or call for action. This message will be ‘sticky’ with the audience.

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6. Keep it Simple

It’s tempting to pack a presentation with lots of content to deliver ‘value’. The real test of value is what the audience remembers and wants to do to help their condition in the next month or so. As such, focussing on just three to four points, supported by evidence, stories, case studies—is a much better than covering too much ground and overwhelming your audience. It also allows you to shorten stories, drop supporting anecdotes if you are running out of time without sacrificing your key points.

7. Don’t Rush

If you have rehearsed your presentation, then you will realise that some parts of your presentation will need to be dropped or reduced to have quality (vs quantity ). You choose which bits need to be left out. The key is pacing and rehearsing before the big event, and timing yourself during the presentation. Don’t try to cram it all in.

8. Mind the Real World

Acknowledge noises, eg, a phone that goes off, a crash of breaking plates—in your auditorium. To rattle on without doing so makes the audience feel uncomfortable, as well as wondering why the speaker didn’t react to that awful noise from the back. With practice you can also learn how to use such external interference to your advantage and boost the quality of the presentation.

9. Watch the Audience

At every stage of your presentation, be aware of what the audience is going through—are they engaged? Bored? Are they leaning forward slightly to hear your points, nodding every now and then? A great speaker learns how to tune into the audience and adjust his/her speaking pace, volume, even content, segues and body language.

10. Less is More

When preparing for a 30-minute speech, prepare 25 minutes of content. You will invariably find that you want to repeat a statement, or field a question from someone who can’t wait until the Q&A session. You will feel relaxed and professional in your delivery.

11. Enjoy the Effort

Refrain feeling that your presentation is a chore or a pain. Take time to share information and interact with the audience. If you think of it as a pain, your emotions will show, and the audience won’t like it. Giving yourself permission to have a bit of fun will make you a better presenter. David Lim is a leadership and negotiation coach. This article is an extract from his latest book, How Leaders Lead: 71 lessons in Leading Yourself and others. He can be contacted at david@ everestmotivation.com

strategy

Picture Courtesy: www.photos.com

Setting New

Standards Should all business reporting, including financial reporting, environmental accounting and CSR reporting be standardised across the globe? If yes, then how? by anindya sengupta

april 2012 | industry 2.0

- technology management for decision-makers

he motivation behind the standardisation of business reporting is that it acts as a business enabler in bringing forth new opportunities and market access for companies, investors, professionals and the economy as a whole. Watchers anticipate that standardisation will improve the benchmarking of organisations, and enable reliable insights on the future direction. However, achieving this utopia is not without its share of woes. Historically, financial reporting has received a strong emphasis with high-quality standards being developed by national accounting standard bodies and enforced by means of strong governance and firm regulatory frameworks. A substantial body of work has also been carried out in terms of developing and updating a set of International Financial Reporting Standards (IFRS). The rate of adoption of IFRS (currently more than 100 countries) continues to increase. The impetus to align with the IFRS is coming from professionals who find merit in the reduced risk and lower cost of capital, as well as the expansion in the scope of accounting expertise and services offered.

Environmental Accounting

Environment reporting has had a much lower level of development of standards and harmonisation. Environmental management accounting is less standards-oriented, and more guidance-driven. The thought process emerging from acclaimed bodies in this field, eg, Global Reporting Initiative (GRI) or International Federation of Accountants (IFAC) are primarily guidance documents, at a generic and sector-specific level for environment and social accounting/reporting. These documents provide, at minimum, information and some extent of standard setting. The guidance puts the onus on national governments as well

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as international authorities for more detailed applicability studies including local contextual issues. Unlike financial reporting, where ratios and information from statements can, to a large extent, be used as an important indicator of financial performance and benchmarking, the environmental context of a country, its resources and national priorities play an important role in formulating standards for accounting and reporting. For example, in developing countries the waste disposal costs, or for that matter other environmental externalities (‘polluter pays principle’) may not be properly accounted for, when compared to other developed countries. The maturity levels towards environmental governance at national and firm level is also diverse, and thus, an impediment to standardisation of environmental accounting. Environmental accounting is more complex as it involves physical as well as financial information, and it raises issues on proper recognition and valuation of assets and liabilities. Moreover, lifecycle thinking towards impact quantification of a company’s operations is still uneven across companies and sectors which often see this issue as compliance to regulatory norms. The natural step forward would be to take guidance from the internationally accepted thought process as well as the ground situation to evolve national standards, and take governance and regulatory steps simultaneously. While developing standards, one must keep in mind the objectives of meeting the informational needs of the external stakeholders such as investors, all of whom have a strong interest in receiving accurate and standardised information.

CSR Reporting

Corporate social responsibility (CSR) reporting, which is the

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them along the key principles of reporting of a company’s voluntary National Voluntary Guidelines. activities in the local community Heads of organisations should and the initiatives taken to address wider issues in the communities, is take cognisance of these developments, and steer their reporting the most challenging area for stanagenda to be compliant and have dardisation. While the expenditure on CSR is religiously accounted, be a competitive edge. Responding to these developments, joining the it for the reasons of tax deductions debate, influencing the future would or for the purpose of determining need new skills and better linktotal spend efficiency, the quanage to corporate strategy and key tification of social benefits and performance indicators. indirect business benefits can be hard to standardise. This is because of the local and national context; the existing rules on social performance (such as the regulations on resettlement and rehabilitation, social rights) may vary and produce different impacts on a company’s performance. The • Standardisation should reduce inconsistent treatinputs in the form of resources ment and presentation of underlying transactions (time and cost) and in-kind • While the expenditure for CSR is accounted for, the contribution (at cost) can be quantification of social and indirect business benefits quantified to an extent and can be hard to standardise standards can be developed. • The focus of standardisation should be to achieve The focus of standardisation meaning into the diverse focus areas of CSR should be to achieve some • The accounting for CSR delves more into the intanmeaning into the diverse acgibles and may be a source of debate tions and focus areas of CSR • CXOs should steer their reporting and help in decision-making, both agenda to be compliant and have internally and externally. a competitive edge The London Benchmarking Group (LBG) has put in place certain policy guidelines and a generic framework for accounting The Road Ahead of corporate community investWhile standardisation of business ments (CCI). Many organisations reporting is welcome, we need (more than 100 member compato understand the objectives of nies) are striving to follow this doing it. In the case of financial model of accounting for their CCI. reporting it facilitates a host of In India, the Ministry of Corporate business enablers and removes Affairs, in 2011, released a cominconsistencies. For environmenprehensive set of guidelines that tal accounting and reporting, the encompass social, environmental field is not yet mature. National and economical responsibilities of governments and standard setting business in the form of National bodies need to do more contexVoluntary Guidelines. SEBI has, tual research, and formulate a through its circular on November sound governance and regulatory 24, 2011, stated that top 100 framework. CSR, which delves companies in terms of market more into intangibles, may be capitalisation would be mandated toughest of all to standardise to submit Business Responsibility Reports as a part of annual Anindya Sengupta works with Pricewaterdisclosure in their annual reports, houseCooper’s sutainability practice. The describing measures taken by views expressed here are personal.

Points to Ponder

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supply chain

Dealing with Shortages

No one wants to admit to inventory problems, especially to customers. However, ignoring the problem can only make the situation worse by michael uskert

ncreased demand volatility and cash-flow requirements are placing greater pressure on organisations to manage available inventories. Whether caused by planned, poorly planned or unplanned events, inventory shortages do occur. Customer impact and long-term account relationships depend on a companyâ&#x20AC;&#x2122;s ability to handle these shortages in a routine and organised fashion. Leaders

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have created an advantage by formalising a strategic and profitability-based response in times of inventory shortage. Laggards are not prepared to profitably manage available inventory in a way that decreases the negative impact to customers and shareholders. The unfortunate reality is that inventory shortages of varying degrees occur within a normally operating supply chain.

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While part of good planning is planning for times of failure, many companies do not have an established, formal and crossfunctional process to manage the allocation of insufficient inventory to mitigate the impact to customers and shareholders.

Effective Inventory Allocation Companies that are able to establish an effective inventory allocation process possess the

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following characteristics: Network Awareness: Essential to determining when and how much inventory is or will be available for customers, is having a handle on supply chain constraints. This includes not only manufacturing, but supplier, transportation and warehousing constraints. Supply Modelling: The ability to model the appropriate ramp-up of supply based on changing capabilities and demand is paramount. This can best be achieved through the use of a constraintbased supply planning tool, where constraints and the picture of demand can be adjusted dynamically to reflect reality. Demand Insight: Equally important is an understanding of demand and the impact of fulfilling orders to individual customers on your organisation’s profitability. In times of short supply, the allocation process should reinforce filling orders that maximise profit or fulfil a greater strategic goal. This requires an understanding of customers that allows teams responsible for setting up the allocation strategy to easily prioritise customers. Cross-functional Collaboration: The unfortunate reality in many companies is that the supply function is on an island as the focal point for resolution. The quickest way out of an allocation situation requires a crossfunctional solution. Determining Root Cause: A wellstructured sales and operations planning process serves to use the information from network awareness, analysis and demand insight to bring limited supply back into balance with expected demand. In an effective process, it is just as important to control and shape demand as it is to accurately predict supply. This may mean removing or reducing planned promotions for items with limited supply, promoting

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items not short of supply as a replacement, forgoing spot sales opportunities or delaying/restricting a product launch. To keep your business out of the never ending firefighting loop, it is important to address a number of questions and determine the root cause. What caused the shortage? Was it due to manufacturing-line failure, supply failure, poorly executed new product launch, item discontinuation or an unplanned spike in demand, etc? How often do you have to enact your materials allocation process? The following five pillars of the business operating strategy can help determine the root cause:

“To keep your business out of never-ending firefighting loop, it is important to determine the root cause” 1.Customers and Demand: Was the shortage of inventory due to an unplanned spike in demand? If so, why didn’t the organisation know about it in advance? Was the aggregate forecast accurate, but the mix incorrect, or did the demand materialise in locations different from what was forecast? If so, is demand forecasting being performed at the right level of granularity? Was there an internal breakdown in communication or a breakdown in communication with the customer(s)? Is there an opportunity to create jointvalue relationships with these customers to better sense sudden shifts in demand? 2. Innovation and Products: Was the issue caused by a new

product launch or item discontinuation? Which part of the launch or discontinuation process failed and why? Is there too much complexity involved in managing this process? Is there a lack of internal or external coordination? Is supply chain involved early in the new product introduction (NPI) process for a smooth launch? 3. Profitable and Reliable Supply esponse: Was there a supply disruption? Was this due to a supplier failure? Line failure? Was there failure to properly plan around manufacturing capacities? 4. Organisation Structure and Systems: Does company culture discourage root cause analysis by rewarding firefighting over problem solving and planning? Is there an issue in organisational alignment preventing critical information from passing to or from critical functions of the organisation? Has the talent of the organisation kept up with the changing requirements of the position? Have the systems evolved with increasing need for business information? 5. Collaborative Joint-value Creation: Have the flexibility requirements of your business been communicated to your supply base? Do you know about shifts in demand, but your key suppliers are just expected to react? The best thing to do is create a road map that continuously alleviates the root causes. 6.Coping with Shortages: Whatever the root cause, inventory shortages will occur. Leaders recognise that the health of their long-term account relationships and the business’s profitability depends on their ability to handle these shortages in a routine and organised fashion. Michael Uskert is a research director in Gartner’s AMR Supply Chain Research group. He helps consumer product organisations with strategy definition, best practices and insights from leaders.

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- technology management for decision-makers | april 2012

sector update

All Lit Up Lighting industry registers robust growth, and embraces eco-friendly technologies

by nirmal jain

here are reasons for the Indian lighting industry to cheer. Economic growth is pushing sales, while favourable government initiatives are boosting demand for energy-efficient lighting technologies. Overall, the lamp sector is growing at 12 per cent, while luminaires are growing at 22 per cent. “The lighting sector has been growing at 10 to 15 per cent since 2000,” confirms Sunil Sikka, President, Havells India. While the major brands in the market include Bajaj, Crompton Greaves, GE, Havells Sylvania, Osram, Philips, Thorn and Wipro, the low entry barrier into the industry is intensifying competition. According to Kumar Ramesh, Industry Manager, Environment and Building Technologies Practice of consulting firm Frost & Sullivan, “Multinational corporations that strike the right price points, introduce value innovative solutions and energy-efficient products, and create a wide distribution network to penetrate the maturing market, will fare better.” Already, major firms have started offering value innovation

april 2012 | industry 2.0

solutions to sustain sales, instead of focussing on product sales.

Driving Growth

The development of infrastructure and real estate is opening up a plethora of opportunities for lighting companies. A new trend is the emergence of lighting specialists who are spurring demand for luxury lighting products. “Greater awareness about the effect of light on moods and the role of lighting fixtures in enhancing interiors, is furthering prospects of light designers. Now, light designers join hands with architects to design interiors,” observes Ashutosh Kumar, deputy general manager, marketing for K-Lite Industries. According to him, the major takers for aesthetically designed fixtures are group housing societies and commercial spaces like banquet halls, hotels. According to Shyam Sujan, Secretary General of the Electric Lamp and Component Manufacturers’ Association of India (ELCOMA), “Greater awareness about aesthetics and the need for products to translate ideas and designs into interiors is boosting the industry.”

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Illustration: Charu Dwivedi

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Demand from both home and commercial consumers is rapidly veering towards innovative lighting solutions and manufacturers have risen to this challenge. Philips Electronics India Limited, a leading provider of lighting solutions, has launched its Home Decorative and Ambiance accessories and solutions range, offering light-based home décor accessories. Philips is also investing in setting up experiential Light Lounges and Light Shoppes (shop-in-shops) in cities across the country. So far, it has set up 55 Light Lounges and 430 Light Shoppes nationwide. Recent product launches from Wipro include the urban architectural Vola streetlights and floodlights, a new line of energy efficient multiutility lighting solutions called Play and MyLED.

Emerging Trends

“Energy-efficiency targets and environmental concerns are huge drivers for the industry,” says Sujan. Globally, LED technology is recognised as far more efficient and eco-friendly than the technology used in incandescent, fluorescent and compact fluorescent lamps (CFLs). Greater adoption of LED lighting in India would significantly reduce lighting load, peak demand and overall energy consumption. It’s happening, albeit gradually, as cost economics push demand across segments. “The LED lighting business grossed Rs 500 crore last year. This year, sales can exceed Rs 616 crore,” adds Sujan. Wipro Consumer Care and Lighting has made inroads into lighting systems for green buildings. Today, 75 of the country’s 130 green buildings use Wipro’s LED-based lighting products, many of them compatible with solar-based systems. Now, the company is focussing on infrastructure projects such as ports

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and airports. LED-based lighting systems also find application in niche areas like automotive, communications, signage, signalling and entertainment applications. The Indian Railways is another niche market for LED lighting. Last year, it celebrated the Year of Clean Energy by distributing 1.4 million CFLs to its employees.

Energy-efficient Lighting

The government’s energy efficiency roadmap is also boosting the lighting sector. The roadmap sets out an ambitious target–to reduce carbon dioxide emissions by one-fourth by 2020. To achieve this, the government has initiated the National Mission on Climate Change, of which the National Mission on Enhanced Energy Efficiency (NMEEE) is a part. This mission has drawn a plan to promote LED lighting at the state level, framed policies to facilitate manufacturing, and is establishing testing standards and technical specifications for LED lighting. The mission is also insisting on the retrofitting of energyefficient lighting in industrial and commercial buildings. Frost & Sullivan estimates that this will significantly raise penetration for energy efficient fluorescent, CFL and LED lights over the next seven years. Also, as Energy Conservation Building Codes are implemented more stringently, demand for more efficient lighting will rise. These codes outline the minimum energy performance standards for new commercial buildings. Ramesh says that lighting systems account for about one-fifth of the power consumption in India, as against one-tenth in North America and Europe. The government has also exempted LED bulbs from the special countervailing duty of four per cent, and has reduced excise duty on such

bulbs from 10 to five per cent. This has paved the way for prices of LED lights to fall by about onetenth since the bulb is the main component of the unit. Overall, reduced import duties are helping the globalisation drive in the sector. “Two years ago, the government de-reserved the luminaire manufacturing segment. This opened up major opportunities for lighting companies,” says Sikka. Havells is the first company in India to take advantage of this change in policy by making a substantial investment in a manufacturing plant in Neemrana, Rajasthan. A plant in Noida, near Delhi, has also been established to produce ballasts and drivers, an essential part of lighting electronics. “Havells has introduced cutting-edge technology here, bridging the technology gap in the segment,” adds Sikka. Another favourable government initiative is to provide subsidies for the use of energy efficient lamps under the Bachat Lamp scheme. Formulated by the Bureau of Energy Efficiency (BEE), it promotes the replacement of incandescent lamps with CFLs by leveraging the sales of Certified Emission Rights under the clean development mechanism of the UN’s Kyoto Protocol on climate change and global warming. In Kerala, 12 million CFLs were distributed, bringing down peak electricity demand by 250 MW. BEE is also encouraging municipalities to switch to LED street lighting. BEE has formulated a national standard for LED lighting, making India the first country to accept a national standard for LED lighting. Major players in India are also conducting India-specific research on lighting products. Analysts expect LED lighting to comprise nearly 60 per cent of the market by 2021, and 80 per cent by 2031.

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The government’s ambitious energy efficiency roadmap has set up the target to reduce carbon dioxide by one-fourth by 2020

- technology management for decision-makers | april 2012

sector update

steady stream of multinational companies setting up shop in India and burgeoning consumer demand is creating an unprecedented wave of opportunity for the logistics sector. According to a report by Cushman & Wakefield titled ‘Logistics Industry-Real Estate’s New Powerhouse’, the sector is projected to grow 15 to 20 per cent annually, and reach Rs 19,00,000 crore ($385 billion) by 2015. “Greater economic activity, that is, domestic and international trade, will drive freight movement on roads and rails,” confirms Sridhar Chandrasekhar, Head, Crisil Research. A new trend is the demand for integrated logistics solutions and 3PL (third party logistics), on the back of higher industrial production and the globalisation of manufacturing systems. 3PL is a sound value proposition. Chandrasekhar says, “Cost-savings to companies opting for 3PL instead of arranging their logistics in-house are of the order of 5 to 10 per cent.” This trend is driving logistics vendors to make continuous improvements in infrastructure, strengthen their supply chain management skills, adopt higher service standards and deliver allied services such as packaging and inventory management.

Logistics and transportation sector upgrades itself to deliver better services by charu bahri

Investments Galore

Mahindra Logistics, one of the top five players in the logistics industry, recorded a turnover of Rs 100 crore last year. The company attributes its success to its ability to customise solutions while using the right technology. It has invested nearly Rs 10 crore in technology solutions. Gati Limited, another logistics major is preparing for the future by restructuring its business. The company has created three strategic business units, small parcel and warehousing (express distribution and supply chain management), coastal shipping, and cold-chain services. Recently, Gati entered into an agreement with Kintetsu World Express Inc to set up a joint venture (JV), to which it will transfer its express distribution and supply chain business. Kitetsu has invested Rs 272 crore for a 30 per cent stake in the JV. Another logistics company that has raised funds in the last one year is Aegis Logistics Limited. Kaup Capital’s Infrastructure India Holdings Fund has invested Rs 65 crore in the venture. Such investments are helping the sector blossom. The 3PL market has been expanding by a heartening 25 per cent, says RNCOS, a research firm. This growth pattern is likely to continue until 2014, considering the huge scope for 3PL. In Europe, half of the logistics business is outsourced, while in India it accounts for just 6 per cent of the market. According to an RNCOS report, 3PL Market in India, domestic companies are experiencing the benefits of outsourcing basic logistics functions, including transportation and warehousing. Now, 3PL vendors

Making the

Right

Connection

april 2012 | industry 2.0

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are rolling out the next level of value-added service offerings centred on transportation and warehousing. Multinational users are ahead of the curve. In addition to outsourcing merely basic logistics functions, they are contracting value-added advanced services, such as supply chain management. This is allowing them to focus on market penetration while bringing down the cost of product distribution. Topping the user list of 3PL services are the automotive and information technology (IT) hardware industries, followed by manufacturing, retail and real estate. The fast moving consumer goods (FMCG), consumer durables and textile sectors are among the other end-user verticals with significant growth potential. The emergence of the retail sector is also helping the prospects of 3PL providers. Logistics providers are also expected to play a major role in facilitating e-commerce, which is on a good growth trajectory. As the market evolves, the share of organised logistics players is anticipated to double to 12 per cent. In addition, India may soon see the emergence of the 4PL segment, constituted of knowledge partners offering operational capabilities, technology and process management capabilities. Providers of 4PL services manage different 3PL vendor services and work on getting the best logistics solutions for their clients, thus facilitating cost savings from lower inventory and transaction costs, greater access to resources, the sharing of risk and better fund management.

Government Initiatives

The government is continuously introducing measures to boost industry efficiencies. According to Kumar, “These initiatives include indirect tax system reforms; facilitating private participation, especially in the port sector, and; allowing 100 per cent foreign direct investment (FDI) in transport.” In place of differential state-level taxes causing higher unit and inventory carrying costs, the government is planning to introduce a uniform Goods and Services Tax (GST). “This move is expected to encourage significant re-organisation in the country’s warehousing system as well as increase the demand for integrated logistics solutions,” says Chandrasekhar. For eg, Mahindra Logistics plans to establish three massive warehouses, each sized 500,000 sq ft, in north, south and west India once GST is introduced. The government also allows 100 per cent FDI for

all logistics services, except courier services. FDI is also permissible up to 49 per cent for air transport services, including air cargo. This percentage may soon rise. The government has created a taskforce on Transaction Costs of Exports. According to RS Subramanian, Country Manager, India, DHL Express, “The taskforce worked with the industry to gauge procedural and regulatory bottlenecks affecting the competitiveness of the Indian export processes, and implemented reforms in them. This is the most promising government-industry partnership on facilitating trade across borders.”

Infrastructure Development

Initiatives like indirect tax system reforms, facilitating public participation, allowing 100 per cent FDI in transport are being introduced to boost industry efficiencies

Investment in logistics infrastructure has increased dramatically in the last decade. The budgetary allocation was more than Rs 24,00,000 crore during the 11th Five Year Plan. “Government initiatives to modernise the sector, develop air cargo infrastructure, dedicated freight corridor, and logistics parks, are steps in the right direction, and will help the logistics sector grow. DHL is looking forward to the speedy implementation of such projects,” adds Subramanian. India already has the second largest road network in the world (3.83 million km). This is projected to increase with the implementation of a slew of highway improvement projects. Plenty of airport and port development projects are also unfolding. Better connectivity is enhancing the reach, efficiency and productivity of the transport system, resulting in lower transit times and penetration to hitherto underserved areas. This in turn is boosting the logistics sector. The government is also bringing in private sector participation in lengthening the pipeline network. Pipelines are more cost-effective than road and rail means for oil and gas transport. “At present, this mode accounts for a mere two per cent of the Indian logistics industry. The share is set to grow,” says Chandrasekhar. Government initiatives are also expected to lower logistics costs, including inventory holding, transportation, warehousing, packaging, losses and related administration costs. Since logistics costs have a multiplier effect on the economy, a reduction would have a far reaching impact. A half per cent fall in logistics costs is expected to result in an additional two per cent growth in trade, and a 40 per cent increase in the range of products exported.

Imaging: Charu Dwivedi

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management & strategy

Doing the Deal The Rs 730-crore acquisition of Zandu Pharmaceutical was replete with dramatic twists and nailbiting suspense. Naresh Bhansali, CEO-Finance, Strategy & Business Development at Emami recounts how the deal was done by dhiman chattopadhyay

n January 2008, Emami Ltd, the Kolkata-based FMCG firm, took a momentous business decision. With an annual turnover of just Rs 600 crore (at that point) and a market capitalisation of Rs 1,500 crore, the management decided to make a bid for the century-old Zandu for its “strong brand potential”. “At that point Zandu had a turnover of just

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Rs150 crore, with a PAT of Rs 15 crore. We valued it far higher,” says Naresh Bhansali, President & CEO, Finance, Strategy & Business Development at Emami Ltd. “Initially, we acquired a 24 per cent stake from the Vaidya family, one of the co-promoters of Zandu. However, the Parikh family which held an 18 per stake in Zandu, were unwilling to sell. This put us in a difficult situation,” confesses. Bhansali. “Even acquisition of the initial stake of 24 per cent was difficult. Because of the diametrically opposite stands of the Vaidya family members, the share purchase agreement had to be drafted several times,” recalls Bhansali. The biggest challenge, says Bhansali, was convincing the Parikh family to sell their stake. “Soon after we acquired the 24 per cent from the Vaidya family, the Parikhs went to court arguing that they had the first right of refusal, and sought suspension of voting rights on these shares. They even refused to register the transfer of shares acquired by Emami,” he recalls. This put Emami in a tight corner. By acquiring a significant stake in Zandu they were legally obligated to make an open offer to all shareholders. “We had already put in about Rs 150 crore, and could not back out. Yet, with just 28 per cent of shareholding we did not have controlling power, nor could we enter the management,” explains Bhansali. The case dragged on for a few months. Then, in June, Emami made an announcement for the open offer. The offer price was initially fixed at Rs 6,315 per share. In September 2008, the open offer was cleared by SEBI. Finally, the Parikhs agreed to sell their stake at Rs 15,000 per share. We also raised our open offer price to Rs 16,500,” recalls Bhansali.

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At this point, almost as if to test Emami’s determination, the global meltdown happened. Luckily, loan sanctions from banks had already been taken and the company was also able to mobilise internal resources. Doing the deal required a lot, since getting the Parikh patriarchs together was a challenge. “After several rounds of discussions and negotiations, we finally convinced them that the deal would be great for them.” Finally in November 2008, the EmamiZandu deal was sealed. “This was a very hush-hush deal. Even within the company, only a few knew what was going on. A core three-member team was on it for 12 months. And yes, there were several moments during the challenge when I felt the deal would just not go through,” admits Bhansali. Immediately after the acquisition, a number of strategic, operational and financial structuring steps were implemented. In the first full year of operation after the takeover, the Zandu business grew rapidly and its profits almost trebled. Today, Emami is a Rs 1,500 crore company under the Rs 4,500 crore Emami Group. “Our market capitalisation is close to Rs 6,500 crore. Thanks to some great financial management we became debt-free within two years of the Zandu deal,” Bansali says. Bhansali says entire acquisition process taught him the value of sincerity and integrity. “You need to be sincere, and at the same time ensure fairness in the deal, to make all stakeholders happy,” he asserts. “It was because we ensured fair play that we finally managed to make all stakeholders happy while ensuring we got great value out of the deal,” he adds. The other lesson: “Do your homework before any deal,” he smiles.

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opinion

The Art of

eet Isadore Sharp— the hotelier who opened the first Four Season motor hotel (or, motel) in 1961, with 125 rooms in downtown Toronto, Canada. Would-be hoteliers at that time had two choices. They could build a small hotel with fewer than 200 rooms and offer guests modest amenities, sometimes nothing more than a television set or an ice machine in the hall. The other alternative was the ‘few frills’ option—a large hotel of 700-plus rooms that catered to business travellers and had extensive amenities, much like the second Four Seasons hotel Sharp opened just outside Toronto. Each option had its own unique advantages. By early 1970s, Isadore Sharp had opened three Four Seasons motels. On the brink of opening his fourth motel, he found himself at a crossroad. He loved cozy motels, but they could not generate the revenue required to maintain the amenities that his target market of business executives expected. His guests loved the amenities at his second hotel, but its sheer scale could never provide the homely feel that was unique to the motel. With three properties in opera-

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Sometimes, it is not necessary to choose between two opposing or conflicting ideas. Look for ways to distill them into a third--and better—alternative by shayamal vallabhjee

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Illustration: Shigil N

Creative Thinking

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tion, Sharp already had two contrasting models. Instead of choosing between one of the models, Isadore Sharp used his ‘opposable’ mind to hold both models in his head, roll them together and create a new model that incorporated the benefits of each. He combined the best of the small hotel with the best of the large hotel—a medium size hotel offered amenities with a sense of intimacy and personalised service. Conventional economics didn’t allow for this model to be successful, because costs were spread over fewer rooms. But, Sharp reasoned that if Four Seasons offered distinctly better service than its competitors then it could charge a substantially higher premium. That’s how the exclusive Four Seasons chain was born. And, it revolutionised the hotel industry. Isadore Sharp is an example of brilliant integrative thinking—the ability to hold two opposing ideas and merge those ideas into a third idea that encompasses the benefits of each individual idea. Integrative thinking and emotional intelligence (EI) are two of the most important skills in business. They single-handedly separate the best from the rest, because they allow an individual to be creative and innovative within the realm of his business. And creativity is the key to staying ahead. Creative thinking isn’t problem solving. It’s the ability to generate new ideas or alternatives from nothing, or by integrating two existing models or theories. If there is one particular thing that stands out about geniuses, it is their ability to make juxtapositions between similar subjects—a facility to connect the unconnected, which enables them to see things to which others are blind. If we look at some of the greatest minds, what they did best was to force relationships: * Leonardo da Vinci forced a relationship between the sound of a bell, and the ripples a pebble makes when hitting water, to make

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“Creativity is an application of imagination by which we push our limits and overcome adversity” the connection that sound travels in waves; Nikola Tesla forced a connection between a setting sun and a motor. That resulted in the modern day AC motor and Albert Einstein did not invent the concepts of mass, energy or speed of light but forced them together to come up with the equation, E=mc2. Creativity is nothing but an application of imagination. In business terms, it’s how we come up with perfect strategies, brilliant innovations, world-class marketing ideas and unbeatable formulae for success. But first, one needs to unlock the power of possibility by removing the imaginary limitations we have created. I was once told that, “imagination is our greatest renewable resource and one that cannot be outsourced”. There can be no truer statement. Our imagination allows us to remove every conceivable boundary and ask the most powerful question: What if? The examples cited earlier demonstrate how geniuses managed to ‘innovate’ two opposing ideas into one. Needless to say, this is easier said than done. That’s often because our emotions might cloud our judgment and prevent us from actually determining the salient points critical to the development of the idea and choosing the best ideas to pursue. This is where EI (emotional intelligence) comes in. Essentially, EI is the capacity to recognise our own feelings and those of others, manage those feelings, and learn to motivate ourselves. To me, EI is the foundation of all learning. Everything we do stems from a thought, which invokes a feeling, that in turn, triggers off a sequence of events. Emotional triggers always set off

a sequence of events—the end result of which is the same. Our world is overflowing with ideas. Grasping them is a faculty of our conscious mind but the ability to synergise them into something new and creative is a faculty of the subconscious mind. EI is the key to transporting the mind to a place where our conscious thoughts and deliberations can merge. Thomas Edison, the inventor of the light bulb, had a brilliant method of transitioning between consciousness and sub-consciousness. He would sit in his ‘thinking chair’ with a metal ball in his hand. On the floor directly beneath his hand, he would place a metal pan. Edison would then allow his body and mind to completely relax. At some point between consciousness and subconsciousness, his hand muscles would relax involuntarily, allowing the metal ball to fall onto the metal pan. He would then wake up and note down whatever he was thinking. This process allowed him to activate and create thoughts unhindered by the conscious mind. Creativity is the future of business. Being able to understand the demands of your environment and to successfully compensate for them in your industry will ultimately steer your business to the pinnacle of your industry. You can be a market leader through the process of integrative thinking and emotional intelligence, because the next big thing in business is going to be a combination of these two existing ideas. Shayamal Vallabhjee is an EQ consultant who has worked with the world’s best athletes and businessmen. He’s also authored several books. He uses the Emotional Quotient to unlock creativity and productivity in business

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- technology management for decision-makers | april 2012

opinion

Encourage Disparate Opinions

Surround yourself with advisors and team members who think differently. Else, you could stifle creativity and innovation

alter Lippmann, the Pulitzer Prizewinning American publicist and political commentator who coined the term ‘Cold War’ once said, “When all think alike, no one is thinking.” Nearly four decades after his death, we continue to see the ill-effects of ‘structured’ thinking, most so in the world of business where creativity and innovation are critical to success. Over the years, honchos of small, medium and large businesses have confided in me about feeling rudderless in their corporate journey. “My business is not going anywhere in particular,” is a refrain I’ve heard several times in interactions with CEOs and

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other decision-makers across the country. At a recent conference, for example, the CEO of a mid-sized company sidled up to me during a coffee break and asked if we could discuss a problem he was facing. He began by telling me that though his business was booming across traditional product lines, he knew his company was unable to cash in on all the opportunities available. He gave his diagnosis of where the problem began—in team meetings his managers were high on enthusiasm when it came to implementing ideas, especially if they came from him. “But they rarely contribute ideas of their own and seldom contradict my words during team discussions,” he added. He had a talented and experienced team at work, he said. So, he was finding it difficult to understand this palpable lack of creativity and innovation within his teams. I curbed my instinct to dish out advice, and instead asked my friend if he had heard the story of the ‘Naked Emperor’. As the story goes, there was once an emperor who was known to be deeply narcissistic, and cared only about showing off and indulging in his preference for expensive clothes. Two conmen who visited the kingdom, heard of the king’s penchant and decided to exploit his weakness. They went to the palace and offered to stitch the king the finest outfit in the world. They told him they used a cloth so special that only a few people with a very high intellect and refined taste could see it. Not confident about his own ability to judge this fabric, the king decided to try out the new outfit in the presence of his trusted lieutenants. The costume was nothing at all—the conmen had convinced

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Picture Courtesy: www.photos.com

by krishna kumar

the king that an invisible outfit was a special one. So, the king was basically in the buff. The king’s trusted lieutenants were shocked to see their master naked, but were scared to admit it. They not only praised the king’s costume, but also invited other courtiers to take a glimpse of the amazing cloth that was invisible to those who did not deserve to see it. Soon, the entire kingdom turned out to witness a grand procession where the emperor would showcase his new dress. The crowd praised the magnificent clothes of the emperor, each more afraid than the other to admit that they weren’t ‘good enough’ to see the dress material. At this juncture, a small child, who did not understand shame or fear, shouted out naively, “The king isn’t wearing anything.” The crowd caught on, and people started discussing the king’s nude procession, first in hushed tones that got louder as the truth dawned on more people. Undeterred, the emperor continued his procession with his head held high but without a shred of clothing on his body. After patiently hearing the story, my CEO friend asked whether I thought he was behaving like this emperor. Well, maybe not. It would be more appropriate to say that the company’s core philosophy was to implement one person’s desire, while putting the lid on new ideas and innovation. They were functioning in an environment where the management team preferred to demonstrate collective ignorance. Individual opinion never came out during discussions, and nobody thought it fit to critique the leader’s opinions and ideas. In all fairness, I believe that my CEO friend had sensed this situation but was unable to pinpoint where the fault was. It lay in his style of leadership. Most first-generation entrepreneurs face similar situations in their journeys, especially those that have built their business from scratch. During this period, they transfer the core values and ethics to the business, and often unconsciously, handpick a management team that mirrors these beliefs and values. The team, on its part, slides into a comfort zone—which is a major constraint to creative thinking. But my CEO friend was not ready to give up without a fight. It wasn’t just his leadership style, he claimed. He told me in no uncertain terms that his frustration stemmed from the knowledge that his business growth demands frequent doses of innovation. He thought he was in the classic “What got you here, won’t get you there” phase, to borrow from executive coach Marshall Goldsmith’s bestselling book of the same phrase. That was his problem, he asserted, and he needed to figure out the steps he should take to overcome this entrepreneurial ennui.

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I wasn’t about to get sidetracked from my diagnosis though. I harked back to Star Trek, the super hit television serial of the 1970s. James T Kirk, the iconic commander of the Space Ship Enterprise, once told his close confidante and friend Dr Leonard McCoy that the advantage of being a captain is being able to ask for advice without necessarily having to use it. I also reminded my CEO friend of another of Captain Kirk’s close confidants—Mr Spock, a Vulcan married to a life in logic and Dr McCoy, who was driven solely by compassion and scientific curiosity. Both these characters are frequently at odds and suggest different courses of action based on their subjective view of the situation. The captain hears both his advisors and often comes up with a third option, built entirely from his own perspective.

“A weak leader always surrounds himself with people who are loath to express their opinions” The fact that the leader has advisors around him with a world view vastly different from each others’ and from himself, provides a clear insight into the captain’s confidence as a leader. A weak leader always surrounds himself with people who are loath to express their opinions. Any organisation that fosters such behaviour ends up stifling creativity and innovation. This eventually results in a situation where decision-making and problem solving are centralised and the company is seldom able to change course mid-stream. On the other hand, enterprises that allow diverse opinions to be aired, facilitate innovation and prove to be better at solving problems. They avoid groupthink. Team meetings and discussion forums become genuine platforms for sharing ideas. This is where a Mr Spock or Dr McCoy can be of help—they fuel creativity and innovation by airing their views and forcing the leadership to think. As noted American educationist and philosopher George F Kneller said: “Creativity, as has been said, consists largely of rearranging what we know, in order to find out what we do not know. Hence, to think creatively, we must be able to look afresh at what we normally take for granted.” Krishna Kumar is the Founder of Kinesis Sports, a Bengaluru-based tennis training institute. He is also a professional coach specialising in transformational leadership. He likes a difference of opinion

industry 2.0

- technology management for decision-makers | april 2012

bookshelf The Googlisation of Everything by Siva Vaidhyanathan Price: $21.95 Paperback: 280 pages Publisher: University of California Press

In the beginning, the World Wide Web was exciting to the point of anarchy—a vast and intimidating repository of unindexed confusion. Into this creative chaos came Google with its dazzling mission—‘to organise the world’s information and make it universally accessible’. In this provocative book, Siva Vaidhyanathan examines the ways we have used and embraced Google—and the growing resistance to its expansion across the globe. He exposes the dark side of our Google fantasies, raising red flags about issues of intellectual property and the muchtouted Google Book Search. He assesses Google’s global impact, particularly in China, and explains the insidious effect of Googlisation on the way we think. Finally, Vaidhyanathan proposes the construction of an internet ecosystem designed to benefit the whole world and keep one brilliant and powerful company from falling into the ‘evil’ it pledged to avoid.

Seeing the Big Picture by Kevin Cope Price: $21.95 Hardcover: 176 pages Publisher: Greenleaf Book Group

All companies are driven to success or failure by the same five simple drivers: cash, profit, assets, growth, and people. Kevin Cope helps you appreciate how day-to-day decisions can balance these drivers and contribute to the big picture of your organisation’s success. You’ll discover the acumen you need to bring real value and passion to your work. Whether you’re on the manufacturing floor or sitting in the corner office, you can learn how to follow the drivers through to measurable results—conquering your fear of numbers.

The Wide Lens by Ron Adner Price: $29.95 Hardcover: 288 pages Publisher: Penguin Group (USA)

How can great companies do everything right—and still fail? Many companies fail because they focus too intensely

april 2012 | industry 2.0

- technology management for decision-makers

on their own innovations, and then neglect the innovation ecosystems on which their success depends. In our increasingly interdependent world, winning requires more than just delivering on your own promises. It means ensuring that a host of partners—some visible, some hidden— deliver on their promises, too. In The Wide Lens, innovation expert Ron Adner draws on over a decade of research and field testing to reveal the hidden structure of success in a world of interdependence. The book offers a powerful new set of frameworks and tools to multiply the odds of innovation success.

The Mesh

by Lisa Gansky Price: $15.00 Paperback: 272 pages Publisher: Penguin Group (USA)

Traditional businesses follow a simple formula: create a product or service, sell it, collect money. But in the last few years a fundamentally different model has taken root—one in which consumers have more choices, tools, information, and more peer-to-peer power. Pioneering entrepreneur Lisa Gansky calls it “The Mesh”, and reveals why it will dominate the future of business. Mesh companies use social media, wireless networks, and data crunched from every available source to provide people with goods and services at the exact moment they need them, without the burden and expense of owning them outright. Gansky reveals how there is real money to be made and trusted brands and strong communities to be built in helping your customers buy less—but use more.

Real Leaders Don’t Boss by Ritch Eich Price: $15.99 Paperback: 256 pages Publisher: Career Press

This book is an easy-to-understand, practical guide to leadership in the workplace and in life that can help anyone grasp what it takes to inspire, motivate and lead. With the help of reallife stories and advice from top leaders,

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it teaches how, with the right direction and guidance, real leaders quietly stand back and observe as others achieve success—to create their own successes. Dr Eich has identified as the seven principles of effective leadership that are applicable from executive suite to the assembly line.

UnMarketing by Scott Stratten Price: $18.95 Paperback: 272 pages Publisher: John Wiley & Sons

For generations, marketing has been hypocritical. We’ve been taught to market to others the way we hate being marketed to; yet we’re all aware that no one likes to be marketed to. This book demonstrates how to create a mindset and systems that perpetually attract the right customers. Instead of teaching the tired ‘push & pray’ method (pushing out marketing messages, and praying people buy), UnMarketing focusses on the ‘pull & stay’ technique (pulling your market towards you and staying/ engaging with them, so when they have the need for your product/service, you’re the logical choice).

Need, Speed, and Greed by Vijay V. Vaitheeswaran Price: $27.99 Hardcover: 304 pages Publisher: HarperCollins Publishers

Over the past few decades, globalisation and Googlisation have kicked off the first phase of an innovation revolution more profound and more powerful than any economic force since the arrival of Europeans on North American shores half a millennium ago. But the benefits of all this progress have not been shared fairly among all. All this leads to the central political and economic question of our age: How can the extraordinary benefits of the innovation revolution be shared more equitably among all of society? Vaitheeswaran answers that question, and offers the essential insider’s guide to this new world of innovation. Drawing on the best of the academic and

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field work in this emerging area, Need, Speed, and Greed inspires and empowers readers to improve their lives, work, and perhaps even the world.

The Definitive Guide to Project Management by Sebastian Nokes & Sean Kelly Price: $33.90 Paperback: 448 pages Publisher: FT Press

If you want your projects to deliver what you want, every time, you need to master the techniques of effective project management. The Definitive Guide shows you, step by step, how to do everything from scoping the project through to risk management, quality control and prioritisation. It emphasises throughout the importance of interpersonal skills in project management. Now in its third edition, this bestselling book is ideal for project managers to use as a ready reference and problem solver while actively managing projects. Because it follows the world’s most popular and reliable methodology for project management from the Project Management Institute (PMI), it is an ideal companion for anyone preparing for the PMBOK exam.

Good Idea. Now What?

by Charles T. Lee Price: $24.95 Hardcover: 224 pages Publisher: John Wiley & Sons

We all have ideas—things we want to do or create—but only some of us will do what it takes to see those ideas come to pass. In this book, readers will discover some of the essential values and principles that guide successful idea-makers, including the leveraging of mixed environments for creativity, working through resistance and setbacks, developing a practical plan for implementation that works, navigating collaborative opportunities, and communicating your idea to make it truly remarkable. Whether you’re just a creative type, or the leader of an organisation, you must figure out a creative process and develop an infrastructure for implementing your ideas. This book offers systematic advice for moving your ideas to execution.

industry 2.0

- technology management for decision-makers | april 2012

bookshelf Reverse Innovation by Vijay Govindarajan & Chris Trimble Price: $30.00 Publisher: Harvard Business Review Press Hardcover: 256 pages

The global dynamics of innovation are changing. No longer will innovations traverse the globe in only one direction, from developed nations to developing ones. They will also flow in reverse. Authors Vijay Govindarajan and Chris Trimble of the Tuck School of Business at Dartmouth explain where, when, and why reverse innovation is on the rise, and why the implications are so profound—for nations, companies and individuals. The authors focus in particular on a traditional pillar of rich-world economic vitality: successful and longestablished multinational corporations. All are now seeking explosive growth in emerging economies, and all must learn new tricks in order to succeed. Reverse Innovation shows leaders and senior managers how to make innovation in emerging markets happen, and how such innovations can unlock opportunities throughout the world. The book highlights the tribulations and triumphs of some of the world’s leading companies, illustrating exactly what works and what does not.

1501 Ways to Reward Employees by Bob Nelson Price: $15.95 Publisher: Workman Publishing Company Inc. Paperback: 576 pages

Today more than ever, organisations need fresh ideas to nurture talent and retain employees. This revised and updated book is chockablock with ideas for rewarding employees. The book has been adapted to meet the needs of an evolving workplace—especially to deal creatively with virtual employees, freelancers and permalancers, international colleagues, and the rule-bending expectations of millennials. The 1,501 low-and no-cost rewards and strategies are drawn from thousands of companies across the globe. Ideas range from the informal (Wells Fargo’s thank-you e-cards) and the offbeat (JS Communications two free “I Don’t Want to Get Out of Bed” Days) to the formal (JC Penney “affirms” new managers in a moving ceremony) to the totally nutty (the legendary honour of having your office “sodded”— literally, grassed over—at Microsoft). For bosses, managers, entrepreneurs, small-business owners, consultants—anyone who’s responsible for working successfully in an evertougher economy—this is the rewards bible.

april 2012 | industry 2.0

- technology management for decision-makers

The End of Cheap China by Shaun Rein Price: $24.95 Publisher: Wiley, John & Sons Hardcover: 240 pages

Many people know China for manufacturing cheap products, thanks largely to the country’s vast supply of low-cost workers. But China is changing, and the glut of cheap labour that has made everyday low prices possible is drying up as the Chinese people seek not to make iPhones, but to buy them. Shaun Rein, Founder of the China Market Research Group, puts China’s continuing transformation from producer to large-scale consumer under the microscope—examining eight megatrends that are catalysing change in the country. Rein takes an engaging and informative approach to examining the extraordinary changes taking place across all levels of Chinese society, talking to everyone from Chinese billionaires and senior government officials, to poor migrant workers and even prostitutes. He draws on personal stories and experiences from living in China since the 1990s as well as hard economic data. Each chapter focusses on a different aspect of China’s transformation, from fast-improving Chinese companies to confident, optimistic Chinese women to the role of China’s government, and at the end breaks down key lessons for readers to take away.

Breakout Nations by Ruchir Sharma Price: $26.95 Publisher: W. W. Norton & Company Hardcover: 304 pages

To identify the economic stars of the future, should we abandon the habit of extrapolating from the recent past and lumping wildly diverse countries together? As an era of easy money and easy growth comes to a close, China in particular will cool down. Other major players including Brazil, Russia, and India face their own daunting challenges and inflated expectations. The new “breakout nations” will probably spring from the margins, even from the shadows. Ruchir Sharma, one of the world’s largest investors in emerging markets for Morgan Stanley, here identifies which are most likely to leap ahead and why. Sharma has produced a book full of surprises: why the overpriced cocktails in Rio are a sign of revival in Detroit; how an industrial revolution in Asia is redefining what manufacturing can do for a modern economy; and how the coming shakeout in the big emerging markets could shift the spotlight back to the West. Sharma reveals his rules on how to spot economic success stories. Breakout Nations is a rollicking education for anyone looking to understand where the future will happen.

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bookshelf All In

by Adrian Gostick & Chester Elton Price: $25.00 Publisher: Free Press Hardcover: 256 pages

Whether you manage the smallest of teams or a multi-continent organisation, you are the owner of a work culture. And few things will have a bigger impact on your performance than getting your people to buy into your ideas and your cause, and to believe what they do matters. The authors of The Carrot Principle and The Orange Revolution, Adrian Gostick and Chester Elton, return to answer the most overlooked leadership questions of our day: Why are some managers able to get their employees to commit wholeheartedly to their culture and give that extra push that leads to outstanding results? And how can managers at any level build and sustain a profitable, vibrant work-group culture of their own? The two experts teamed up with Towers Watson to analyse an unprecedented 300,000-person study—and made a groundbreaking finding: managers of the highest-performing work groups create a “culture of belief”. In these distinctive workplaces, people believe in their leaders, the company’s values, and goals. Employees are not only engaged but also enabled and energised, which leads to astonishing results. Based on their extensive consulting experience and indepth interviews with leaders and employees, the authors present a simple seven-step road map for creating a culture of belief: define a burning platform; create a customer focus; develop agility; share everything; partner with your talent; root for each other; and establish clear accountability. They share eye-opening stories of exceptional leaders in action, vividly depicting how these methods can be implemented by any manager.

Making Ideas Happen by Scott Belsky Price: $16.00 Publisher: Portfolio Trade Paperback: 256 pages

According to productivity expert Scott Belsky, no one is born with the ability to drive creative projects to completion. Execution is a skill that must be developed by building your organisational habits and harnessing the support of your colleagues. Belsky shows why it’s better to develop the capacity to make ideas happen—a capacity that endures over time. He has studied the habits of productive individuals and teams across industries, and has compiled the principles and techniques they share. In this book he presents a systematic approach to creative organisation and productivity.

april 2012 | industry 2.0

- technology management for decision-makers

Worth Every Penny by Erin Verbeck and Sarah Petty Price: $24.95 Publisher: Greenleaf Book Group Press Hardcover: 180 pages

Many small businesses feel pressure to discount their products and services, especially when times are tough. After all, how else will they keep up with the low prices offered by their discounting competitors? What they don’t realise is that discounting is the last thing they should be doing if they want to win big. Sarah Petty and Erin Verbeck demonstrate that there’s a radically different way to run a small business—one in which the owners focus on creating specialised offerings and an over-the-top customer experience, not on matching the prices of their competition. Worth Every Penny encourages you to explore and use this model, which is designed to maximise your advantages over bigger competitors. The authors’ strategies are enhanced by real-life business experiences and vivid anecdotes from all types of business owners.

The End of Leadership by Barbara Kellerman Price: $27.99 Publisher: HarperCollins Publishers Hardcover: 233 pages

Becoming a leader has become a mantra. The explosive growth of the “leadership industry” is based on the belief that leading is a path to power and money, a medium for achievement, and a mechanism for creating change. But there are other, parallel truths: that leaders of every stripe are in disrepute; that the tireless and often superficial teaching of leadership has brought us no closer to nirvana; and that followers nearly everywhere have become, on the one hand, disappointed and disillusioned, and, on the other, entitled and emboldened. The End of Leadership tells two tales. The first is about change—how and why leadership has changed over time. As a result of cultural evolution and technological revolution, the balance of power between leaders and followers has shifted— with leaders becoming weaker and followers stronger. The second narrative is about the leadership industry itself. In this critical volume, Barbara Kellerman raises questions about leadership as both a scholarly pursuit and a set of practical skills: Does the industry do what it claims to do—grow leaders? Are leaders as all-important as we think they are? Finally, she asks: Given the precipitous decline of leaders in the estimation of their followers, are there alternatives to the existing models? The End of Leadership takes on all these questions and then some—making it necessary reading for business, political, and community leaders.

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product update Sealing Conveyor

Inline Scale

he SS1500T-SSC545 sealer conveyor system is optimised for seal and trim applications in filling and bag-packing assembly lines. The system offers variable speeds to 1,100 ipm, as well as variable and tamperproof, laboratory quality temperature control. Along with PTFE and fibreglass sealing bands, 5 ft-long x 4.5-inch wide conveyor features 115V, 50/60 Hz singlephase operation; stainless steel and anodised aluminium construction; and ability to handle virtually all heat sealable materials. Steelnor Systems Tel: +1- 705-5277887 Website: www.steelnor.com

Rachet Tool

el City has introduced a series of unique ratchet tools with single and double joints for maximum versatility and flexibility. The heads can flex up to 180Â°, and feature a smooth, 72-tooth design that minimises ratchet lash while also optimising torque. Ratchets with telescoping handles are also available. A twist and pull motion lets users extend the handle to desired length. This feature, available in all styles except double jointed ratchet, helps limit number of ratchets required in a tool box. Del City Tel: +1- 414-2475531 Website: www.delcity.net

Refrigeration Compressor

he Copeland Scroll K5 refrigeration compressor can help reduce refrigerationrelated energy expenses by up to 10 per cent. Serving stand-alone and parallel systems with large (7.5 to 15 HP) refrigeration requirements for low to medium-temperature applications, the compressor incorporates two features that promote system efficiency. Variable volume ratio technology optimises lowcondensing performance, while vapour injection capability maximises capacity at low set points without adding more/ larger compressors. Built-in CoreSense technology allows on-site or remote diagnostics to help reduce downtime. Emerson Climate Technologies Inc Tel: +1- 937-4983011 Website: www.emersonclimate.com

april 2012 | industry 2.0

- technology management for decision-makers

he Thermo Scientific Versa Warehouse inline scale is suitable for demanding distribution warehouse environments. The system is able to weigh each package 100 plus times as it travels across scale, and deliver accurate data without compromising line speed. Algorithms for variable package dimensions and weight promote additional accuracy with diverse packages. The product is suitable for line speeds of up to 100 packages/ min, supports packages up to 110 lb, and has overload protection up to 1,000 lb. Thermo Fisher Scientific Tel: +1- 763-7832500 Website: www.thermoscientific.com

Caster Wheels

he Genesis series, casters is suitable for applications requiring debris-free operation and quiet, effortless mobility such as medical carts, IV poles, electronic equipment, seating, computer carts, laboratory equipment, and audio/video carts. The casters feature a dual seale precision bearing swivel and wheel to provide efficient rolling with effortless mobility. The soft (65A), non-marking wheels reject debris and offer added shock absorption for optimum performance on carpet as well as hard floors. Full thread guards keep wheels from entangling hair and debris, promoting long caster life. The strong, protective body is non-corrosive and conceals all components, allowing for easy cleaning. W.T. Hight Co. Tel: +1- 781-6827976 Website: www.weroll.com

Punch Station

zcoâ&#x20AC;&#x2122;s servo motor-driven punch assembly allows for high-speed operation, precise control and low maintenance. Full control of the drive permits the punch to operate at 400 cycles per minute. Punched slugs fall into a waste bin below. Precision servo driven nip rollers pull the material through the punch station. From the nip rollers, a motorised rewind winds the material onto a cardboard core. The station is mounted onto a base plate, and all functions are controlled through a touch screen. AZCO Corp Tel: +1- 973-4391428 Website: www.azcocorp.com

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Steam Valve

Spray System

o improve system stability and reduce the operating costs of steam applications, Danfoss has introduced a new range of steam valves with interchangeable coils. Designed to meet a range of steam process needs, the versatile range combines flexibility with high performance. Made from dezincification resistant brass with floating polymer disc and stainless steel seat, Models EV215B and EV225B operate with choice of three interchangeable clipon coils for temperatures up to 140, 160, or 185°C. With IP65 rating, the coils are resistant to aggressive technical steam and impurities. The dirt-resistant EV225B is suited for heating water in laundry machines and dishwashers, while high-pressure-resistant EV215B is suited for steam injection applications, such as flat irons.

inks has unveiled an air assisted airless package for spray finishing. Available as tripod or wall mounted model, the MX Lite 12:1 features the stainless steel MX412 Pump with AA1600M air assisted airless spray gun. A magnetic detent design creates quick stroke changeover, with no pulse or surge. The self-adjusting spring loaded packings have a large sight glass for visual packing inspection. The package delivers soft, fine spray. Flat, fine, and twist tips are available in wide range of sizes. Binks ITW Industrial Finishing Tel: +1- 630-2375000 Website: www.binks.com

Stand

Danfoss Inc Tel: +1- 410-9318250 Website: www.danfoss.us

eissner has introduced a stainless steel FlexCessory stand to secure and support single-use fluid transfer assemblies and enabling one-handed liquid transfers. To facilitate aseptic fluid transfer, the stand interfaces with the assembly inside of a laminar flow hood. The fully adjustable stand accommodates biocontainer assemblies from 500 ml to 6L, and can also store excess fluid for future dispensing.

Sealant

eveloped primarily to bond pleated glass or paper media to frames of air intake panel filters, the FilterFAB 150 sealant blends high viscosity and high solids into thick formula that sets instantly and remains flexible over time. The fibre-filled, vinyl acrylic copolymer sealant is safe to use, non-flammable, produces no harmful fumes, and contains no added formaldehyde. With added antimicrobial agents, product stays bacteria-free long after it has cured. Franklin Adhesives & Polymers Tel: +1- 614-4451337 Website: www.franklinadhesives.com

Hydraulic Ram

he Porter-Ferguson SM0014T mini ram delivers power in remote or confined spaces. As a two-stage device, it provides auto body repair shops versatility when tackling jobs such as straightening frame rails and motor mounts. The height of the unit is 25/16 inches with piston fully retracted, and 45/16 inches when fully extended. Built for rough duty, the product has max capacity of four ton for stage one extension, and one ton for stage two. The drop-forged base gives the ram a stable footing, and the angled port minimises hydraulic connection problems. Lowell Corp Tel: +1- 508-8352900 Website: www.lowellcorp.com

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Meissner Filtration Products Inc Tel: +1- 800-2065856 www.meissner.com

Flowmeter

vailable in either ¼ or ½ inches, NPT connections with ranges up to 100 scfm, the DTFA variable-area flowmeter for gases offer ±5 per cent FS measurement accuracy, and ±1 per cent FS repeatability. The flowmeter is equipped with a 2.5inch diameter dial face, and is constructed with an aluminium body to withstand system pressures up to 3,000 psig. Reliability is enhanced through a PTFE-coated spring and magnet, 302 SS range spring, acetal metering cone, and Buna seals. Pre-calibrated for horizontal inline mounting, the product has -40 to +200°F temperature limit. Dwyer Instruments Inc Tel: +1- 219-8798000 Website: www.dwyer-inst.com

Pressure Sensor

he 6215 quartz-based, high-precision pressure sensor is suitable for high-pressure measurement. The device incorporates a quartz crystal sensing element and a front sealed diaphragm in a stainless steel housing. The design ensures low mechanical and thermal stresses on sensor, no mounting gap and minimised surface pressure within the sealing part. Offered with a measurement range from 0 to 87,000 psi, the product features a highimpedance output and sensitivity of -0.1 pC/psi, with a natural frequency of >240 kHz. Kistler Instrument Corp Tel: +91-44-52132089 Website: www.kistler.com

industry 2.0

- technology management for decision-makers | april 2012

product update LED Lamp

Inverter

ED electronics has developed a family of sunlight-visible, bayonet-base 6/7 LED cluster lamps as replacement for incandescent T3¼ miniature bulbs. The lamps feature a 90 per cent reduction in power consumption (very low power draw of 0.8 to 0.91W, depending on the LED light colour) and directly replace incandescent bulbs. The solid-state design of the lamps renders them impervious to electrical and mechanical shock, vibration, frequent switching and environmental extremes. They have faster turn-on and reaction time compared to filament lamps, yet provide comparable luminous intensity and pure wavelength light for a more uniform illumination. These miniature bayonet base bulbs are suitable for industrial control panels, lighted switch gear found in water treatment plants, nuclear, coal or gas-generated power plants, aircraft instrumentation, elevator panels, automobile dash lighting, audio and intercom panels, broadcast equipment and medical instrumentation.

Siemens Energy & Automation Inc Tel: +1- 847-6401595 Website: www.sea.siemens.com/machine

Grommet

new series of anti-vibration grommets, specifically engineered for electrical insulation, mechanical damping and noise suppression in office or lab equipment has been introduced by Keystone Electronics. Engineered to isolate sensitive instrumentation from unpredictable vibration and shock, these grommets feature ‘fingers’ which flex as needed to dampen unwanted noise or vibration. Special shoulder screws provide correct spacing to enable screws to be fully tightened down. Designed to accommodate panels from .031” to .125” thick, these insulating anti-vibration grommets are manufactured from durable EPDM rubber in black or blue colour. The mating, custom fitted shoulder screws are made of nickel-plated steel in 6-32 and M3 threads. Keystone Electronics Corp Tel: +1- 800-3945778 Website: www.keyelco.com

luid Metering has unveiled a low volume, valveless metering pump for precision dispensing of air sensitive, crystal forming fluids. Fitted with an isolation gland to provide a fluid barrier between pumped process fluid and the atmosphere, the miniature H series valveless pump heads enable maintenance-free dispensing of saline-based reagents, buffers and wash fluids, slurries, abrasive fluids, inks, and anaerobic fluids. The isolation gland is connected to a barrier liquid or gas source via barbed fittings. Pumps can be configured with AC, DC, hazardous duty, pneumatic, and stepper drive options, as well as programmable dispensing systems. Fluid Metering Inc Tel: +1- 800-7475858 Website: www.fmipump.com

Auger Screen Dust Removal System

he Nilfisk CFM 118/50EXP collects dry dust and debris that accumulates on floors and overhead areas in manufacturing facilities. This single-phase, electric vacuum cleaner is CSA-certified explosion-proof/ dust ignition-proof for use in Class I, Group D, and Class II, Groups E, F, and G environments. The product is completely grounded, made of non-sparking 304 stainless steel, and equipped with conductive hose and accessories to eliminate percussion arcing and static charge. Nilfisk Industrial Vacuums Tel: +1- 610-6476420 Website: www.nilfiskindustrialvacuums.com

april 2012 | industry 2.0

he Sinamics G120C is a compact inverter designed for industrial applications such as pumps, compressors and fans, as well as mixers, extruders, conveyor belts and materials handling machines. With a rated power range of 0.75 to 25 hp (0.55 to 18.5 kW), the unit has compact dimensions, fast commissioning times, simple operation, ease-of-servicing and highly-integrated functionality. Quickconnecting plug-in terminals enable fast installation.

Metering Pump

LEDtronics Inc. Tel: +1- 800-5794879 Website: www.ledtronics.com

- technology management for decision-makers

WC Environmental has launched the vertical Auger Monster screening system to fit inside cramped pump stations, and provide complete pump protection from clogging by rags and debris. Attached to wall of pump station next to inlet pipeline, the 90° Auger Monster AGV screens, cleans, and conveys rags and debris up and out of sewer system. A screening basket with ¼-inch circular openings stops debris and small trash, while a rotating auger lifts it to ground level. A compaction zone compresses and dewaters material before depositing it into plastic bag or bin ready for landfill disposal. Custom-built for each site, the system can screen up to one million gallons per day. JWC Environmental Tel: +1- 800-3312277 Website: www.jwce.com

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Endmill

Linear Actuator

he Supermill Tomcat 5 flute carbide endmill line designed to run at high RPM and high feed rates to deliver rapid stock removal. Offered in sizes from ¼ to one inch diameter, the endmills feature tool geometry that enables feed rates of 200 ipm on steels, alloy steels, and stainless steels. Sharp corner, corner radius, regular length, long length, and stub length endmills are available for applications including aerospace, automotive, medical, ordinance and more. Primary Cutter Tel: +1- 860-8289703 Website: www.supermill.com

aydon Kerk Motion Solutions has unveiled a microslide linear actuator capable of a resolution of 15 microns/step (0.0006-in/step) and a maximum load of 13N. This device is suitable for applications requiring precision motion in a small footprint, and is optimised for applications such as microfluidics and optical positioning. The system is approximately 22 mm (0.87-in) wide by 25.2 mm (1.0-in) high and is capable of up to a 64 mm (2.5-in) maximum stroke length. The slide load carriage is made from self-lubricating polyacetal, and features a built-in clearance take-up mechanism for load rigidity during motion. The carriage is supported by stainless steel guide rods coated with Black Ice TFE coating. The Kerk leadscrew is 303 stainless steel and is available in five different leads including 0.3 mm (0.012-in), 0.4 mm (0.016-in), 0.5 mm 0.020-in), 1.0 mm 0.039-in) and 2.0 mm (0.079-in). Haydon Kerk Motion Solutions Tel: +1- 203-7567441 Website: www.haydonkerk.com

Lab Blender

oss has unfurled a new ribbon blender, Model 42NSD1S, equipped with interchangeable double ribbon and paddle agitators. With a maximum working capacity of one cubic foot, the model is suitable for most laboratory and pilot-scale blending requirements. This vacuum-rated blender also comes with a discharge extruder assembly installed along the bottom of the trough to enhance mixing, eliminate dead zones and enable complete discharge. The ribbon blenders can be used for blending dry powders, granules, pellets and other solid forms. The agitator’s inner and outer helical ribbons are pitched to move material axially, in opposing directions, as well as radially. Ross, Charles & Son Co Tel: +1- 800-2437677 Website: www.mixers.com

Pressure Transducer

oneywell has announced its heavy duty, highly configurable, stainless steel pressure measurement solutions--the PX2 series pressure transducer. These sensors are engineered to be resistant to moderately harsh media such as refrigerants, brake and hydraulic fluids, engine oil, tap water, and compressed air. The PX2 Series use piezoresistive sensing technology with ASIC (Application Specific Integrated Circuit) signal conditioning. Their compatibility with varied media, combined with up to IP69K protection and CE compliance, allow for reliable performance in tough environments. Honeywell Advanced Circuits Tel: +1- 952-9311300 Website: www.honeywellnow.com

Pressure Sensor

ith a one ms response time, the PXM309 series pressure transducer is a high performance industrial pressure sensor suitable for most hydraulic and pneumatic systems. The wetted parts are fully welded stainless steel for good compatibility with industrial fluids or gases. The process connection is a G1/4A (1/4”BSPP male) stainless steel fitting. There are three electrical terminations: a 2-metre flying lead, mini DIN or M12 connectors. The electrical outputs available are either 0-10 Vdc or 4-20 mA, suitable for most PLC and control applications. The transducers are avialable in 25 pressure ranges, from 0-70 mbar up to 0-700 bar. Omega Engineering Ltd Tel: +44 -161-7776611 Website: www.omega.co.uk

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Welding Inverter

iller Electric has unveiled new Invision 450 MPa MIG or Pulsed MIG welding inverter. Optimised for use on thicker materials and larger diameter wires, the welder features dual wire feed capability, and 450A of pulsed MIG welding power at 100 per cent duty cycle. Pulsed MIG programmes are included for steel, metal-cored, aluminium, stainless steel, nickel, silicon bronze, and copper nickel .052 and 1/16 in. wires. One-knob controls automatically adjust pulse parameters to match wire feed speed, and controls provide robust, stable pulsed MIG arc at very low arc length. Miller Electric Mfg Co Tel: +1- 920-7349821 Website: www.millerwelds.com

industry 2.0

- technology management for decision-makers | april 2012