Emerging Technologies & Implications for SMEs Dr Rajesh Khajuria, Vice Chancellor MBA, PhD (Management), CMC, FIMC Western India University Email: [email protected]@teampro.org.

Emerging Technologies & Implications for SMEs

Dr Rajesh Khajuria, Vice Chancellor

MBA, PhD (Management), CMC, FIMC

Western India UniversityEmail: [email protected]

Web: www.TeamPro.org, www.wiu.ac.in

April 25, 2004 Dr Rajesh Khajuria 2

Deep Acknowledgements 1

Shri Prem Sharda, Vice Chancellor, and Dr Satendra Kumar, Dean, MBA, SGU. Office Bearers and Members of – Agakhan Council, Ahmedabad and Surat Southern Gujarat Chamber of Commerce Dr APJ Kalam and his Book INDIA:Vision

2020 Our 110 Clients for their 210 Projects in 7

countries during last 23 years And all those who taught me Management,

Consulting and Management Consulting

April 25, 2004 Dr Rajesh Khajuria 3

Deep Acknowledgements 2

Prof H P Lulla (Guruji), Western India University, Raipur

TIFAC (Technology Information Forecasting & Assessment Council), DST, Ministry of Science & Technology, Government of India, New Delhi

CDC (Consultancy Development Center), DST, MST, GoI

IMCI (Institute of Management Consultants of India, a Member of ICMCI – International Council of Management Consulting Institutes in 35 Countries) For enlightening me during last 25 years

April 25, 2004 Dr Rajesh Khajuria 4

Presentation Scheme

I. The Challenges TodayII. How Technology will Impact

SMEsIII. Emerging Technologies in Vital

Sectors by 2010 and 2020IV. Implications for SMEsV. How to Prepare SMEs?VI. How can TEAM WIU Help?

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I. The Challenges Today

•Entrepreneurs & Managers are Wonderful !• Some are resting, some are gazing stars.

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Indian Agriculture, Industry, & Trade are facing FOUR Challenges

Technology, Trade, Teamwork and Management of 3 Ts

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Technological Challenges are caused by R & D, and impact Products, Services and Suppliers

Examples: Computer Chip, IT, Internet, Communication,

Amusement, Automobiles…

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Trade Related Challenges are caused by WTO and Govt.s, and impact Trade, Industry, Agriculture

Examples: Indian Budget ’03, EXIM Policy, WTO, TRIPS,

eTrade (ITC-Geneva)

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Team Work related Challenges are caused by Humans, and impact Organizational & Personal Life

•Examples: Workmen, Staff, Managers, Owners / Directors / Shareholders / Bankers.•Mitsubishi Chairman said, “95% Profit is from Attitude and 5% from Technology, Finance, Management, Government Policies etc.”

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II. How Technology will Impact SMEs

Large Industries

Medium Scale Ind.

SSI / Tiny Units

3% Large

7% Medium

90% Small

This phenomenon is true even in USA, UK, Germany, Japan and China

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Technology, as a Differentiator of Success, Impacts Differently

Large Industries

Medium Scale Ind.

SSI / Tiny Units

Large Impact on Large Industries

Heavy Impact on Medium Industries

Small Impact on Small Industries

R & D will determine the future of Industry:

Speed, Automation, New Materials/Processes, Delivery, Collection and Customer Happiness will be key success factors

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III. Emerging Technologies in Vital Sectors by 2010 and 2020 Everyone, Every Industry, Trade and

Service: Textile Industry Engineering Industry Chemical & Petrochemical Industry Pharmaceutical & Medical Sector Food & Agriculture Technical & Management Consultancy

Services eTrade / eCommerce / eBusiness

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Indian Textile Industry 1

Fragmented to Integrated Textile Mills Synthetic to Cotton, Coloured Cotton,

Mix & Geo-Textiles (Jeans) Synthetic Dyes to Natural Dyes

(Sanganer, Jaipur) Velvet to Vulcan of Ram and Laxman

Fashion Design to Fashion Technology

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Indian Textile Industry 2

Industrial Filter Fabrics, Medical Textiles

Eco-friendly Textile Exports will rise Pollution Controls will be tightened

by State and Central Governments and Courts of Law – High Court and Supreme Court

Domestic to Export Markets for All – Weavers and Processors

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Indian Textile Industry 3

Worldwide Export of Indian Textiles through eTrade with 200 countries In 1930 of world depression, my father late

Sheth Shri Mansukhlal Hansraj Khajuria went to SUDAN at the age of 12, and started Textile Import from India at age of 13

Only to become one of the largest importers by 1945

Journey started from Trade to eTrade Now

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Engineering / Machinery Industry 1

Multi-layer Weaving and Processing Machines

Eco-friendly and Waste Processing Machines

Manual to Automatic Machines (80% CNC)

Analogue to Digital Controls

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Engineering / Machinery Industry 2

Advance and Micro Machining Low Electricity Use Machines Rough Castings to Machine-proof Castings Electrical to Electronic Controls Multi-discipline Machines (Mechatronics) CAD / CAM / ERP / Supply Chain from

Design to Delivery, Billing and Collection of Money directly in Your Bank Account

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Chemical & Petrochemical Industry

New Discovery: Biodiversity Developing Nations are Biodiversity Rich

and Technology Poor India, China, Malaysia, SUDAN (Africa)

Developed Nations are Biodiversity Poor and Technology Rich USA, UK, Germany, France, Netherlands,

Portugal, Japan So they invaded Developing Nations in 200

Yrs

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Biodiversity–Technology Matrix

USA, UK, Germany, France, Netherlands, Portugal, Japan

No Nation

Desert Nations India

China, Malaysia, SUDAN (Africa)

Biodiversity

Technology

Rich

Poor

Rich

Poor

Poor Rich

Poor

Rich

Source: India: Vision 2020

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0

50

100

150

200

250

MMT

1995 2020

Year

Sector-wise Demand for Major Chemicals

PetroleumFertizersPolyersOrgnic

Source: TIFAC

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0

1

2

3

4

5

MMT

1995 2020

Year

Sector-wise Demand for Minor Chemicals

FibresDyestuffsLeatherSurface ActiveSurface CoatingSpeciality

Source: TIFAC

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Pharmaceutical / Medical Sector

Process based to Product Based companies Copy based to Research based Products Small Batches to Mass Manufacturing

Small Scale to Medium and Large Scale Manufacturing

Phacoemulsification Technology for Cataract Surgery

Lasers and Endolenticular Fragmentation for Small Incisions (3 to 5.5 mm) Surgery

Micro Surgery and Remote Surgery

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Indian Food & Agriculture Sector

Agro based economy to Food Based Industry

Process based to Variety / Product based Patents

Small Batches to Mass Manufacturing Small Scale to Medium and Large

Scale Manufacturing

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Milk Processing Technologies

Volume (1995 to 2020): 61 to 300 Million Tons Business: Rs 61,000 Crore to 300,000 Crore Cold Chains Cryo Fluids Containers – Rail, Road, Sea Aseptic Packaging Fodders Electronic Testing Machines Training to be Clean & Control Wastage-Dairies

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Fruit & Vegetable Technologies

Volume (1995 to 2020): 33 & 77 to 90 & 150 Million Tons respectively

Business: Rs 10,000 & 15,000 Crore to 27,000 and 32,000 Crore

Cold Chains, Cryo Containers Aseptic Packaging / Shrink Wrapping Hygienic and Fast Processing Weighing & Sensing Equipment Point to Point Transportation and Tracking Distribution Management

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050

100150200250300350

MMT

2000 2010 2020

Year

Demand for Food in India

Food GrainMilkEdible OilVegetablesFruitsMeat,Fish,EggSugar

Source: TIFAC

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Technology in Services 1 Technical Consultancy - eDesigns Management Consultancy – IT, Systems,

Mobile Financial Consulting – Online Loans Marketing Communication / Advertising /

eMarketing (Internet based) Trade (Export-Import) Promotion - Online HRD, HRM and Training – Data Projectors Entrepreneurship Development –

eBusiness, Cross Cultural Management

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Technology in Services 2 Government Administration - eGovernance Education Management – Online Education University Administration - eAdministration Hospital Management – Online Medicines Healthcare Management – Imaging, Testing Amusement & Leisure Management – High

Tech Entertainment, Acting, Modeling –Digital Tech Sports Management – Media & Webcast Tech

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Technology in Services 3 Tourism & Hotel Management–Online Booking Cooperative Management – Remote

Connectivity Logistics & Distribution Management - eLogis Courier and Transport Management - Tracking Testing, Certification & Calibration - Digital Repairs and Maintenance Chains (e.g. Auto) Defense Sector – Satellite, Remote Sensing,

Missile, Warfare

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0

5000

10000

15000

20000

Rs Cr.

1995 2020

Year

Demand for Advt & Communication based Services

Market ReseachAdvertisingPressTV SoftwareCable Op.CinemaMusic

Source: TIFAC

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0

100000

200000

300000

400000

500000

600000

Rs Cr.

1995 2020

Year

Demand for Telecom Services

Telecom

Source: TIFAC

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IV. Implications for SMEs 1

SMEs will continue to be SMEs… But No longer afford to behave as SMEs. Sophisticated Technology will be

‘forced’ upon by Large Companies and R & D Institutions.

All Government Subsidies will go away. Imports will be cheaper than Indian

Products for many items.

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Implications for SMEs 2 Competition will come from unknown

directions and countries. Most Competitors will be technocrats. World will be Your Marketplace. Global Citizen will be either Your

Employee…Or your Employer! eTrade will be a way of Business Life.

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V. How To Prepare SMEs?

Build Trust in Technology and R & D Institutions

Build Focused Training Programs in - Technology Identification, Selection &

Absorption Technology Funding Training in Technology and eTrade

eTrade Bridge Program of ITC-Geneva and ITPO

Reporting Progress

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VI. How can TEAM WIU Help?

1. Training in eTrade Bridge Program.2. Develop your Association’s e-Trade /

eCommerce enabled Website to facilitate Member Organizations learn and conduct eTrade at Low Cost.

eAdministration System for Association to Charge Fees, Add / Delete Member Units, Communicate through emails etc.

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How can TEAM WIU Help?

3. Assist in developing Focused Training Programs in -Technology Identification, Selection & Absorption from Govt / Global Sources.

Explore Technology Funding Opportunities.

4. Offer MBA (Executive) / Short Management Programs with Education & Training support from Western India University, Raipur (WRO: Vadodara) www.wiu.ac.in – to meet challenges of Management.

5. Counsel individual SSI / Medium Scale Unit.

April 25, 2004 Dr Rajesh Khajuria 37

Thank You

Dr Rajesh Khajuria, CEOTEAM Projects & ConsultantsVADODARA GUJARAT INDIAT: +91 (0) 94260 75402Email: [email protected] Website: www.TeamPro.org