Are you Giddy about the Statement?
Date: Wednesday , April 11, 2012
In the current scenario of ever changing enterprise needs and strategies, I have come across many leaders so anxiously saying, “We aim to become a truly global company.” But are they giddy or confident about the statement they make? And putting into action is what matters for every senior leaders or entrepreneurs to become a truly global CEO.
Apparently, many are still apprehensive to enter the markets which they are not familiar with. They are still apprehensive of taking bold decisions and are still imposed and driven by traditional working models. To overcome this, it requires a company to overcome its dominant logic, the institutionalized thinking that guides its actions. Typically that involves major change- throwing out old organizational structures to create new ones from scratch, revamping product-development and manufacturing methods, reorienting the sales force. Only then reverse innovation happens and that’s what going to be the order of the day.
Most multinationals have been focused innovation efforts on the needs of rich countries and then exported products around the globe. But today, they must innovate to solve the problems of the developing world and then bring the innovations home.
As per McKinsey, a dozen or so emerging economies will collectively have an annual GDP of more than $20 trillion by 2020, exceeding that of the United States. In 2015, developing economies will account for more than half of the world’s annual GDP. The largest consumer markets of the next generation can be found in emerging markets like China, India, and Africa. When a CEO of multinational corporation learn to generate successful innovations in emerging markets and then exports that knowledge and those innovations to the developed world, only then a true Global CEO is born!
And we could identify only very few who practiced this order. One among them is Dinesh C Paliwal, Chairman & CEO of Harman International, who made it so effective and impressive through radical change in his automobile-infotainment division of Harman International business.
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