Lakshya - A Beacon of Knowledge, June 2020 Edition

EDITOR’S LETTER

“"With Evolution, Changes happen in every part of the world every day, every time."”

Welcome to the twenty-third edition of “LAKSHYA”, our monthly supplement designed for people who dare to think above the average and believe in connecting the dots. In an age where technology has taken over every sphere, information is abundant and data is omnipresent, we have planned to bring to you a collection of thoughtfully created and carefully crafted pieces of work by some bright aspiring minds of ICFAI Business School, Hyderabad on the current trends and receiving close review in the field of Operations Management and their relevance in different industries.

From the ninth edition, we created a new segment, ‘The Corporate Angle’ where article will be featured from prominent business leaders which will enlighten minds of young managers and business enthusiasts. IBS Hyderabad and Club Kaizen express a sign of gratitude to all corporate leaders for taking out time and scripting their thoughts for our magazine.

We have introduced 'Faculties Insight’ from the eighteenth edition, where the articles will be featured from experienced faculties from all over the world that will shed light on the minds of young managers and business enthusiasts. Club Kaizen is grateful to all faculties for taking time out and writing their thoughts for our publication.

We look forward to providing you with some valuable insights and inculcate the passion for reading. We hope that you enjoy this issue and do let us know if there are any topics you’d look forward to be covered in upcoming editions.

Please write to us and become a part of this discussion.

Email ID: kaizenclub.ibs@gmail.com

LVS SAI CHARAN JOINT SECRETARY – KORE Kaizen – IBS Hyderabad Batch 2019-21

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CONTENTS

From the Mentor’s Desk

03

Digital is Now a Core Strategy to Survive the Storms of Change

04

Changing Scenario of Banking Operations

07

Operations Management & Internet of Things (IOT)

09

Post-Pandemic Sustainability: What Lies Ahead of Food Industry?

Applications of Operational Research Techniques in Healthcare Sector

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From the Mentor’s Desk

In the era of competition, it is imperative for students to be prepared for the ever-changing business environment. Knowledge creation plays an important role to learn to tackle the dynamic nature of business.

I appreciate and congratulate the initiative of club KAIZEN for bridging the gap between corporate world and academia through LAKSHYA which is an excellent platform where industry practitioners, academicians and researchers can share their knowledge and experience, acting as a beacon guiding students to reach their goal.

My best wishes to club KAIZEN in their endeavour of knowledge creation through LAKSHYA.

Nishit Kumar Srivastava Mentor, Club Kaizen

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The Corporate Angle Digital is Now a Core Strategy to Survive the Storms of Change.

Mr. Pranav Jain Assistant Manager, TrucksDekho.com

Businesses have always worked on intuition. The decision of what will work was traditionally taken by professionals who could constantly narrow down the possibilities of failures either by failing or by learning. This approach worked for companies' pre-1991. But with the advent of digital technologies, the whole business ecosystem transitioned. David Rogers in his book “The Digital Transformation Playbook” suggests the skill required to operate businesses in the digital era has transformed especially when the result concerns a company’s customer, competition, data, innovation and value. Let’s explore how strategic themes now follow a completely new status quo.

Evolving B2C Relationship Companies have historically seen customers as solely the buyer of their goods and have tried to reach them to buy through ways that appeal to masses. But as business ecosystem moves towards digital, customers not only make their personal purchase decision, but also influence multiple others. They form dynamic networks that interact with and shape brands. Hence identification and nurturing of customer networks becomes essential. Firstly, companies need to go beyond their existing marketing funnels by creating channels to encapsulate customer loyalty and evangelism.

Secondly, customer’s path to purchase, i.e. customer journey, needs to be conceived to survive this age of hyper-personalization that a buyer demands as their interactions become omnichannel. And lastly, firms need to build relationships with customer networks by helping them engage and collaborate with their brand.

Changing B2B Dynamics In the past, only similar companies were seen as competition. But in the digital age, competition is more between dissimilar companies across industries.

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Companies are actually fighting for a customer’s time and preference making a restaurant and a theatre rivals. The digital revolution is, hence, redefining firm to firm relationships, leading to the rise of platforms and marketplaces. The new relationship matrix is more a mix of competition and cooperation. BMW competes directly with Audi and indirectly with Uber, a platform.

Platforms have always existed; a good example would be shopping malls, but due to digital technologies like web, APIs, SDKs, cloud & mobile computing, platforms are gaining relevance by getting added to traditional business’s value chains to eventually gain permanent positions.

Data Transformation Data, earlier seen as a metric to measure and plan processes, has become the most important strategic asset for businesses directly impacting value creation and innovation. Since data will eventually become a tool to make better-informed decisions, businesses will have to adopt multiple technological solutions to structure, manage and store this big data. This will be instrumental in generating insights that can be clubbed basis similarities; this will help understand patterns that can be used to attach a context. Multiple businesses are putting data as one of their operating pillars to increasingly capture this context and create stories to sell and improve.

Innovation Paradigm Traditionally, a company could say that they have innovated only post a market endorsement.

The feedback came late in the process and testing of ideas was limited. Today, innovation is approached through rapid experimentation and continued learning. Build-measure-learn feedback loop cycles are being viewed as the quickest way to identify products customers actually want. Such changes have been adopted not only by businesses looking to improve their existing services but also by corporations looking to build new products through ways including A/B testing and MVPs. The role of visualizing failure has drastically changed from actually failing to exploring the path to real innovation.

Shift in Value Proposition A value proposition is the reason why customers turn to one company over another. To improve, firms focus either on translating the present value to different set of customers or differentiate the value to the existing clientele. But in the digital era, firms have to address both simultaneously. A good example is when a newspaper company pivots its mission, distribution channels and geography at the same time. Multiple platforms practice value creation as an ongoing process, which helps pave the path for the next set of relevant products. The idea is to promote customers to the core of the value proposal enabling businesses ecosystems to leverage network effects.

Digital transformation has become pertinent for companies to stay afloat. A shift to a culture of data-based decision making will strengthen businesses like never before.

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Source: This column first appeared in https://www.cnbctv18.com/views/digital-is-now-a-core-strategyto-survive-the-storms-of-change-5889181.htm

About the author: The columnist, a consultant, a digital business sales and innovation strategist, and an author at http://www.entrepreneur.com, https://yourstory.com/ & http://www.businessworld.in/ LinkedIn: http://www.linkedin.com/in/pranav-jain-04a1527b Twitter: @jainpranav94

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Faculties Insight Changing Scenario of Banking Operations Dr.Hetal Bhinde Assistant Professor, Sandip Institute of Technology and Research Centre (SITRC), Nashik

The banking industry is beginning to incorporate the traits and practices that were once the domain of fintech start-ups. Banking is completely focusing and relying on automation for all banking operation. Almost all banks are aiming to deploy latest technologies but private sector banks seem to be leading. The ultimate target is to deliver productivity at lower costs and enhance customer experience.

Amides COVID-19 situation, there is an accelerating demand for advanced banking operations and cost-cutting competences. The 2020s is being regarded as decade for digital banking even before COVID-19. Such changes reflected a mounting hunger for must-have innovations including seamless, hyper-personalised user experiences.

Few trends in Banking and Financial Services in India that are changing the entire scenario of operations are elaborated hereby ● Innovative digital solutions have become need of time. Rapid developing digital technology has innovated and simplified operations and in turn services delivered to the tech-savvy customers. ● One of the dominant trends in banking operations is Mobile banking as it has bought banks to tips of fingers. ● To support mobile banking UPI or Unified Payments Interface has transformed payment systems. ● The newest buzzword in banking business operations is the blocks chain in which principles of computer science, data structures and cryptography are adopted to simplify fund transfers and may be the future of financial sector. ● Artificial intelligence robots are being used in many government and private banks all over the nation to provide assistance to customers.

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● Paperless and branchless banking systems may be the next drift in banking operations which will not only maximize output but will also increase profits. ● Cloud technology will soon make way in the Indian financial industry with an aim to find ways to simplify banking operations. ● To increase security of transactions Biometric Authentication system is anticipated to be extensively used in near future. ● Fintech companies have turned out to be an important part of banking ecosystem Based on the trend, response and results of this quest by banks to embibe latest technology to be competitive in this era or modernization would continue further and would reached out the masses soon.

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Operations Management & Internet of Things (IOT)

Mr. Vaibhav Joshi Kirloskar Institute of Advanced Management Studies, Pune (MBA 2019-21)

Operations management is a field that can sometimes be misunderstood because of its multidisciplinary nature. Operations management is chiefly concerned with planning, organizing and supervising in the contexts of production, manufacturing or the provision of services. As such, it is delivery-focused, ensuring that an organization successfully turns inputs to outputs in an efficient manner. The inputs themselves could represent anything from materials, equipment and technology to human resources such as staff or workers.

Example of Operations Management: Supply Chain Management is the best example of Operations where it is an end-to-end process of transporting and storing supplies, goods in process and finished goods. For example, a train manufacturer that manages the flow of materials and parts to its factories and the delivery of finished trains to customers.

IOT is the short form for Internet of Things. The Internet of Things refers to the ever-growing network of physical objects that feature an IP address for internet connectivity, and the communication that occurs between these objects and other Internet-enabled devices and systems. The Internet of Things extends internet connectivity beyond traditional devices like desktop and laptop computers, smartphones and tablets to a diverse range of devices and everyday things that utilize embedded technology to communicate and interact with the external environment, all via the Internet.

According to Gartner, consumer applications will drive the number of connected things, while enterprise will account for most of the revenue. IOT adoption is growing, with manufacturing and utilities estimated to have the largest installed base of Things by 2020.

Internet of Things units installed base by category:

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Category Automotive Consumer Generic Business Vertical Business Grand Total

2013 96.0 1,842.1 395.2

2014 189.6 22,44.5 497.4

2015 372.3 2874.9 623.9

2020 3511.1 13172.5 5158.6

698.27

836.5

1,009.4

3164.4

3032.0

3750.0

4880.6

25006.5

Source: Gartner (November 2014) Industry 4.0, has begun to emerge. This will be the era of cognitive manufacturing – where IOT sensors, big data, predictive analytics, and robotics will forge the future of manufacturing operations. It is important to understand how Operations Management with IOT platform. a. Digitization of Manufacturing Process: The IOT enables devices to connect and exchange data. In manufacturing, the IOT connects assets to processes, systems and people. This enables better integration of plant processes, achieving higher levels of productivity, and taking manufacturing to the next level of transformation, Industry 4.0. b. Intelligent Equipment: When referring to an intelligent asset or piece of equipment, by enabling these assets with IOT sensors and cognitive capabilities, they can sense, communicate, and self-diagnose issues in order to optimize performance and reduce downtime. c. Cognitive Operations Process: As data has grown in size and complexity, it has gotten far more challenging to make sense of the output. The concept of a cognitive process lies in the fundamental ability to take existing data and analyse it to drive decisions around improved operations, quality, and safety. By analysing both structured data being collected in databases, and unstructured data such as photos or video footage, it is possible to bring more certainty to decision-making and business operations. d. Smart Optimization of Resources: Using IOT and cognitive insights, it’s possible to utilize inputs like geolocation data, usage data, individual data, and environmental conditions, combined with analytics, to keeping costs low and improving overall engagement and productivity levels.

IOT technology deployments will result in digital transformation that delivers the following benefits: • 10% increase Field worker real-time utilization rates • 50% Reduction in Office administration costs by eliminating re-entry of field data.

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• 19% Increase in asset availability • 60% Reduction in Mean Time to Repair (MTTR) • 100% real-time Management

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Post-Pandemic Sustainability: What Lies Ahead of Food Industry?

Ms. Anugya Jain ICFAI Business School, Hyderabad (MBA 2019-21)

“The pandemic has accelerated and deepened supply-chain restructuring, but it did not initiate it.”

As the pandemic rips through the world, shattering global

healthcare systems and

economies, it will be interesting to see what the future holds for businesses. Covid -19 is a wakeup call for procurement and supply chain industry and now a huge ambiguity of how to run the business darkens day by day. Plagues and pandemics leave deep and long-lasting impacts on mankind. In a world full of uncertainty, business leaders must think smartly for the future.

As talk of reopening the economy picks up steam, retailers and consumer packaged goods manufacturers face a whirlwind of decisions about how to maintain cash flow, turn inventory, and seed growth for the ongoing recovery. But certain things that are key to the success of a restart should already be in motion. Assessing the impact to supply chains from an unexpected crisis is never easy. However, there are several critical elements to consider, starting with what to do now. Just like after a natural disaster like a flood, hurricane or earthquake, stores need to be reset. That should be happening now. But the biggest challenge for businesses today is dealing with a crisis that isn’t restricted to a particular region. Its impact has been global, and has affected American retailers nationwide.

How COVID-19 has disrupted Food Supply Chains From farm to fork, missing links in the food supply chain are causing increasing disruption and damage: Harvests: As spring arrives, crops are rotting in the fields. Europe’s asparagus growers, for instance, are dramatically short of staff, with migrant workers from Eastern Europe unable to come to their farms due to border restrictions - or simply afraid to risk infection.

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Logistics: Food transport, meanwhile, is steadily turning into a logistics nightmare. Where produce does get harvested, border controls and air freight restrictions are mak ing international transport of fresh goods extremely difficult – and expensive.

Processing: Food processing plants are scaling or shutting down due to containment measures or staff shortages, with their suppliers scrambling to adjust their output. In Canada, for example, poultry farmers collectively acted to reduce their output by 12.6%3.

Go-to-market: Companies that normally sell a significant portion of their output through out-of-home channels (for example soft drink producers) are seeing their sales slashed.

Sourcing: Supermarkets, while scoring stellar sales figures, are understaffed and underdelivered5. Because of sourcing problems, products based on wide range of ingredients are becoming increasingly difficult to make and are therefore disappearing from store shelve.

Forces fuelling the Transition Even before the coronavirus outbreak, the food supply chain was in transition. The forces at play are still the same, though the pandemic has added fuel to quite a few of them: •

Changing consumer preferences: More than ever, consumers are health-conscious and looking for fresh, additive-free food with traceable origins, with an increasing preference for local.

•

Increasing volatility in supply: The coronavirus pandemic is further fuelling volatility, which was already on the rise due to geopolitical and climate factors.

•

Changing trade conditions: On top of global trade wars and ensuing political tensions, COVID-19 and related containment measures are putting the brakes on international trade.

•

Tightening rules & standards: Food safety concerns will be further heightened in the wake of the pandemic, leading to more regulatory pressure.

•

Demographic and social changes: While growing populations and middle classes will remain a theme, we could see new social patterns emerge in the post-outbreak era, such as less globalisation, as regional and local products capture a bigger share in production and consumption.

•

Rapid technological advances: IT innovations are improving not just efficiency and sustainability, but also supply chain visibility, particularly vital now to spot and address supply chain issues in an early stage.

•

Sustainability requirements & legislation: COVID-19 could slow the momentum of the transition to a carbon-neutral society (for example the EU’s Green Deal), but it also provides an opportunity to accelerate the shift.

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Building supply chain Resilience In the post-outbreak era, what can food sector players do to make their supply chains both responsible and resilient?

•

Go-to-market versatility: Existing go-to-market channels like bars and restaurants have closed down and expectations are that it will take 12-18 months before societies fully recover from COVID-19. Companies therefore need to invest in omnichannel capabilities, especially focusing on online/digital solutions. This should also include product fungibility across channels.

•

End-to-end supply chain management: As sourcing ingredients/merchandise becomes harder for businesses, one alternative is to work with a wider pool of suppliers, including regional ones, and keep larger strategic stocks. A broad product range is more expensive to maintain, but spreads risks. An alternative is to simplify recipes and/or remove problem products from the portfolio, resulting in a leaner, more manageable product range, less risk and lower costs. That would also free up time and resources to invest in the development of innovative new products that combine a healthy lifestyle with minimal environmental impact. Meanwhile, it’s important to invest in relationships with supply chain partners. Supplier and customer loyalty and resilience are pivotal to ensure business continuity and to thrive postCOVID-19.

•

Industry 4.0: Digital supply networks are going to make businesses less vulnerable in the longer term. Robots, for instance, reduce dependence on migrant labour. Trackand-trace solutions help businesses zoom in on supply chain bottlenecks. And the latest tools based on artificial intelligence revolutionise business processes and scenario management, thereby reducing both costs and risks. AI supports companies in predicting uptake in demand in an early stage, anticipating future bottlenecks and choosing the best course of action.

It is true that India (along with the rest of the world) has suffered a lot due to the recent COVID 19 crises but there is a lot to gain if we are alert to the demands of the changing world. Hence, a systematic and strategic approach can put India on the path of enormous economic growth which will be fuelled by its flourishing food sector in the years to come.

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Applications of Operational Research Techniques in Healthcare Sector

Ms. Tanya Gupta ICFAI Business School, Hyderabad (MBA 2019-21)

Health care is certainly one of the most important industries within the evolved and growing nations, as well as it's miles a service-oriented enterprise. It is in particular widespread carrier industry that has given no longer the simplest the criticality of exceptional and protection in delivering patient care. Healthcare has ended up one of India’s biggest sectors each in phrases of revenue and employment. Healthcare incorporates hospitals, scientific devices, clinical trials, outsourcing, telemedicine, scientific tourism, medical health insurance, and scientific device.

Operations Research in context to Health Care is “Any research producing practically useable understanding (proof, findings, information, and many others.) that could improve software implementation (example- Effectiveness, efficiency, quality, get admission to, scale-up, sustainability) regardless of the type of studies (layout, methodology, approach) falls inside the boundaries of operations research”. OR is being applied extensively extra in health facility control, aid-restricted operations, or remedy making plans. Major healthcare optimization troubles include logistics, disorder diagnosis, service planning, medical therapeutics, aid scheduling, and preventive care.

1.

Healthcare Planning

Planning is putting in place of goals and devising strategies to gain those objectives. Healthcare planning is basically presenting right and ok healthcare centres where it is needed the most. In a rustic like India wherein there's a resource crunch and the populace are huge (especially the aging population) it's far very vital to use the right healthcare planning.

So, it's far our obligation to make sure that none of these resources get wasted and there may be the most reliable use of those assets as healthcare is a totally sensitive subject matter to address as it entails the life of a human being. Operations studies are used right from proper allocation of beds inside the emergency room to the right allocation of nurses in the extensive care devices to choose of sanatorium region to forecasting the future call for.

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1.1 Emergency Vehicles The optimum allocation of emergency vehicles may be very vital because it the query of existence and dying of someone. While planning for this the two principal targets need to be stored in mind: there must be most population coverage by using a single unit of automobile; minimization of the whole travel distance from places to the hospitals which allows them to react quicker.

1.2 Demand Forecasting Finarelli and Johnson (2004) gave an intricate nine-step, quantitative demand forecasting model for healthcare offerings-Effective forecasting of demand for healthcare services requires 9 steps:

2.

Healthcare Management

2.1 Patient Scheduling Patients should make appointments to go-to experts. This gives rise to the problem of long waiting times at clinics and hospitals before the session. Hence appointment scheduling or patient scheduling is an essential area of research in healthcare.

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A properly appointment time table pursuits as a minimum waiting time for patients and minimizes time beyond regulation for a team of workers restrained via the affected person load and staffing. OR models are evolved to reply to the given three questions: 1) How many patients have to be scheduled on a given day?

2) How have appointment slots be allocated to those patients on a given day?

3) What might be the most efficient sequencing of heterogeneous patients?

2.2 Resource Scheduling Resource scheduling is hard and fast of techniques and methods used to decide the requirement of assets to finish a given work and while it will be required. Nowadays, it has to turn out to be critical for hospitals to reduce their operational costs without affecting its great in phrases of presenting health care services.

2.2.1 Staff Scheduling Staff scheduling, or rostering, refers back to the procedure of assigning schedules and making timetables for a group of workers’ individuals in a health facility or clinic to satisfy the demand for its services.

In order to do that first shifts are assigned to all body of workers’ contributors to meet the requirements at unique timings, and responsibilities are then assigned as in step with the respective shifts.

2.2.2 Operating Room Scheduling Operating Rooms are the largest value middle and sales centre in a hospital. And consequently, it turns into increasingly vital to successfully manage them which will decrease cost and maximize sales. Studies show that on a mean, operating rooms are applied to the handiest 40% to 75% of their ability. This may be stepped forward using Operating Room Scheduling.

3. Healthcare Practice Besides addressing various different healthcare control elements, OR researchers have made giant contributions to drug treatment making plans, infectious disorder prevention and control, and organ donation.

In Disease Diagnosis, the utility of the Analytic Hierarchy Process to numerous issues in scientific decision making is furnished. And in Treatment Planning plans inside Medical Therapeutics, an area that has been receiving unique attention is radiation therapy.

4. Specialized and Preventive Healthcare An increase in longevity, escalating fitness-care expenses, and the emergence of recent illnesses in latest years have compelled scientific decision-makers to recognition strongly on preventive and specialized measures.

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4.1 Organ Donation and Transplant Most studies work on organ transplantation focuses on guidelines for allocating donated organs to the waiting patients, liver, and especially kidney transplants being the most monitored troubles.

4.2 Prevention of Diseases Optimization troubles related to the prevention of sicknesses challenge basically vaccine selection. Sewell and Jacobson (2003) advanced the vaccine choice set of rules to cover the whole immunization schedule. They evolved an integer-programming version to evaluate the financial premium that exists in having aggregate vaccines to be had.

5. Conclusion In the final decades, Operations Research groups have come to be interested in the increasing applications of OR techniques in the healthcare zone. In this article, diverse studies undertaken inside the discipline of OR for the betterment of healthcare offerings have been mentioned.

Although OR researchers have been able to address some of the problems in healthcare services, there may be nonetheless lots of scopes left for development and research in this area.

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ABOUT US The word “Kaizen”, where “Kai” = change “Zen” = good, simply means “change for better”.

In English Kaizen is typically applied to measures for implementing continuous improvement.

It is an approach to activity organisation based on common sense, self-discipline, order and economy and is a strong contributor and fundamental part of a lean production process model in lean manufacturing. Kaizen- The Official Operations Club of IBS Hyderabad believes in relishing in the essence of "Constant Change and Evolvement" and hence we, as an organization work willingly for the betterment of the student community. KORE- Kaizen’s Operations and Research Entity, one of our primary wings which flaps to cater to the needs of students and motivate them to soar high by polishing their technical competencies. KORE’s area of expertise includes Case Based Research, Consultancy, Live Projects and Workshops.

LAKSHYA, an initiative taken by KORE primarily focuses on the concepts of operations management and various articles based on the day to day operations and logistics of an organisation.

NISHU KUMARI KEJRIWAL EDITOR IN CHIEF - KORE Kaizen – IBS Hyderabad Batch 2019-21

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LAKSHYA is an academic print and is not for any commercial sale.

Reliability and Responsibility, for sources of data for the article vests with the respective authors. Please feel free to drop in your suggestions at kaizenclub.ibs@gmail.com KORE: Kaizen’s Operations & Research Entity.

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