Innovating at the top

I was just viewing a video podcast at knowledge@insead, the video was about a book Innovating at Top, published by INSEAD respected professors.

In the interview session, interviewer post series of questions to Soumitra Dutta, about why CEO required innovation, why innovation is required even in the time of crisis? How cultural differences help CEO's to tackle the issue of innovation? Out of large and small corporations, which are the running machines for innovation?

To look out for all the answers given by Mr. Dutta, go to knowledge@insead site (http://knowledge.insead.edu/home.cfm)

Thanks
Mohit

Obamamania couldnot trigger rise in stock market

On January 20th, Mr. Barack Obama took over as the 44th US president at Capitol Hill in Washington. Amid these recessionary times, or if we go by some economist terms, the depression time, the newly elected president come as a ray of hope for the Americans and for the World Economy.

But it seems that now the recession as loomed over the entire World Economy, that even the ray of hope is not able to pass it. This is what happened, during the Obama inaugural day. Most of the work market either remain flat or fall sharply. So it clearly shows that even Obamamania could not set even the short term positive sentiment in the global market, which can trigger the exchanges world wide.

Tough time ahead for Mr. Obama.

Thanks&Regards,
Mohit

Obama oath = Costliest President Inauguration Ceremony

In November, when the Detroit Big three automaker CEO approached Fed for a bailout package on their luxurious planes, were greatly criticized by the international media for spending company money in their lavish lifestyle. They were reprimanded everywhere, and told to be more responsible in saving their company liquidity in time of Crisis.

But I think the same criticism is also applicable for President Obama Inauguration Ceremony at Capitol Hill. According to reports this is one of the Costliest Presidential Inauguration Ceremony in the American history, with total expenditure cost is approximately 75million$.

I can understand this may be the historical moment in the American presidential election, with first time an African American will taking on the high profile job. But at this time of financial crisis, when everybody is pressing on saving money and spending money more sensibly. Shouldn't be this Celebration can be delayed, till the US economy become more stabilize.

From my opinion, the Obama Inauguration and CEO spending on the lavish lifestyles, should be comparable and should be criticize equally.

Thanks&Regards,
Mohit

Institutions falling towards Enterprise 2.0

I was just going through one of the Bankwatch blogs, in one of the blogs they have mentioned that Bank of America(BOFA) and MIT media labs have started a new initiative call as Centre of Future Banking,I went to one of their blogs http://futurebanking.bankofamerica.com, and checked one of their blogs.

In one of the blogs they have mentioned that how BOFA is leveraging Twitter to solve customer related issues. They wrote that social networking site really helped them to listen to customer need and their griefs. They can really learn about the new customer demands which call for new product development and enhancements. The social networking sites, like Twitter enable them to listen to customer needs in more real term. You can read the complet blog at adjacent link : http://futurebanking.bankofamerica.com/twitter-customer-experience-bank-america_696.

This clearly shows now the companies are falling towards enterprise or web2.0, and leveraging and merging their business concepts into their existing business model, so that they can listen to customer demands and take actions without any delay.

Thanks&Regards,
Mohit

Citi's Split

Citigroup, once considered as the top notch financial institution of the World, is now split into to different legal entities, Citicorp and Citi Holdings. Thus, breaking the one banking or Universal Banking business operational model.

The split news came after when banking giant reported a 8.3billion$ quarterly loss. Out of two split identities Citicorp will have major chunk of business, holding private and investment banking arm. While Citi Holdings will mostly manage the non core banking part of the business.

The newly appointed CEO Vikram Pandit marked that the split will certainly help them to manage the business efficiently and also help them to serve both their clients and customers more effectively.

Lets see how these two identies work indivdually, and how they help Citi to get back on the track.

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Thanks&Regards,
Mohit

Satyam failure : A sign of betrayal

Last week, when the India's fourth largest software company(based on the fake balance sheets), founder and Chairman resigned from the company and shocked the entire economy by telling that he and his key accomplices made a fraud of around 5000+ Crores, and all the figuresdescribed in the company balance sheet is completely inflationary.

Once this news was out in the market, it sent the shock waves at the BSE stock exchange and the Sensex shed more than 700 points in the intra day trade.

But Satyam failure is really a sign of betrayal from one of the key and iconic figure in the country, Mr. B Ramalinga Raju. It really hurt the trust and sentiment of not only international investors but also the small retail investors, who are always advise to go for a blue chip fund in order to safeguard their investments, and to reap good returns. But when a Blue Chip company reveals a multi billion fraud, the trust factor really seems to be void.

Besides Indian Corporates are yelling that this is one of its case, but Satyam fraud will also make global Clients to think twice to outsource their business critical applications to India. It certainly marred India's image as the global IT hub and a safe region to put once investments.

India corporated and politcal system really have to work hard on making Corporate Governance rule more stringent and transparent, and make sure that all culprit involved in this mayhem will be punished in time.

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Thanks&Regards,
Mohit

Solution to Current Crisis : Responsible Leadership

The recent financial crisis, which saw meltdown of some of the mammoth banking institutions, and also saw standstill of the entire world economy. The main reason for such a enormous failure was improper decision, short term vision.

The solution for such a crisis, and to prevent such a crisis in distant future is to look out for Responsible Leadership. The main action item of the Responsible Leadership is to make long term vision for their business, invest in those business which they understand or have a strong team who understand the business very well. The leadership decision should not be a rat race decision, but decision should be made on through analysis of the situation, and safekeeping stakeholders and shareholders interest as far as possible.