NASSCOM – Engineering Summit 2014
Panel Discusion
Is India an Engineering hub?
Sanjeev Arora
Executive Vice President ...
Overview
• 700+ R&D centers in India delivering solutions to the world.
• By 2020, India will exceed US in producing R&D...
3
R&D Intensity
Source: IMF, World Bank, OECD, CIA Fact Book, Battelle
R&D Globalization Drivers
• Market
• Talent & Skills
• R&D Productivity
• Ecosystem
• IPR Security
4
5
Comparative Analysis
Market
R&D
Productivity
Domestic
Demand
Design &
engg. skills
Manufacturing
skills
Manpo...
6
GIC Landscape
Share of OEMs and suppliers operating in each type of R&D
Local R&D hub
10% 25%
50%
India China Braz...
Global Construction Market Ranking
2009 2020
$1.7b $2.4b
$3.6b
$2.6b $3.3b
$19.3b
$22.7b
$24.8b
30
25
20
15
10...
JCB: India Product Dev./R&D
• Business – High expectations of Growth.
• Opportunities to broaden R&D/Product development...
Product Development Scale
• Global platforms derivatives – Adjust features for
emerging markets
Level- 1
• New Product...
35
30
25
20
15
10
5
0
Product Line: 4
9
JCB Portfolio Growth
Product Line: 5
10
Product Line: 5
15
Product ...
Innovation Maturity Roadmap
Nurturing Innovation Culture
Robust Innovation Process
Live Innovation Programs
Innovation...
Implementation
Strategy
Innovation
Pipeline
IP
IP
Kaizen
Innovation
Projects
Futuristic
(parked)
Evaluation by ...
Convergence –
Thru’ Innovation
14
Opportunities & Challenges
• Innovation as a growth engine for India (1/3rd of US GDP is
derived from Quantum techno...
15
Summary
• Globalization of R&D driven by globally interdependent
economies – Global offshoring business worth US$ 12...
Opportunity to ride the 3rd great wave of
innovation and economic disruption.
… Being set off by technological
advances...
Thank You
of 17

NASSCOM Engineering Summit 2014: Panel discussion II B: Is India an Engineering hub? : Sanjeev Arora

Sanjeev Arora, Executive Vice President, Product Development, Innovation and Growth, JCB India
Published on: Mar 3, 2016
Published in: Business      
Source: www.slideshare.net


Transcripts - NASSCOM Engineering Summit 2014: Panel discussion II B: Is India an Engineering hub? : Sanjeev Arora

  • 1. NASSCOM – Engineering Summit 2014 Panel Discusion Is India an Engineering hub? Sanjeev Arora Executive Vice President Innovations, Growth and Product Development 8 Oct 2014 JCB India Limited
  • 2. Overview • 700+ R&D centers in India delivering solutions to the world. • By 2020, India will exceed US in producing R&D professionals. • 46 of Global Top 50 Organizations have R&D presence in India. • India R&D has moved from “Cost” to “Strategic Value”. • Cost arbitrage advantage sustainable to over two decades. • India ranks 76 (of 143) in Global Innovation Index. 2012-2013 no. patents 43,955 (vs. China 6,52,777) • “R&D spend: US still remains world’s biggest engine for Innovation – 2011 R&D spend: US$ 366 bn (China: US$ 160 bn, EU: US$ 275bn) • However, organizations integrating India in their global innovation networks for affordable solutions for Global Markets. • “Relevant” Skills and Talent growth rate to match aspirations.
  • 3. 3 R&D Intensity Source: IMF, World Bank, OECD, CIA Fact Book, Battelle
  • 4. R&D Globalization Drivers • Market • Talent & Skills • R&D Productivity • Ecosystem • IPR Security 4
  • 5. 5 Comparative Analysis Market R&D Productivity Domestic Demand Design & engg. skills Manufacturing skills Manpower Cost Supplier Base Ecosystem Commercial Environment Raw Material Infrastructure Korea 9 1 1 7 3 1 2 1 East Asia Talent & Skills China 2 4 4 1 3 12 1 4 Thialand 8 8 11 7 6 1 11 2 Indonesia 9 8 7 3 7 5 11 11 Vietnam 14 13 13 7 12 5 15 11 Czech 9 1 1 7 1 5 6 3 Romania 6 13 13 7 14 10 13 15 Poland 8 8 9 15 8 3 13 6 Slovakia 14 11 4 7 10 5 6 5 Russia 1 5 11 3 14 10 3 8 Hungary 2 3 9 7 13 12 10 8 Turkey 9 13 7 6 8 3 5 8 Brazil 2 6 4 7 3 15 9 6 Mexico 6 12 13 3 10 5 4 13 India 2 6 3 1 1 12 6 13 LATAM Eastern Europe *Source: Ernst & Young
  • 6. 6 GIC Landscape Share of OEMs and suppliers operating in each type of R&D Local R&D hub 10% 25% 50% India China Brazil Center of competence 5% 10% 20% India China Brazil Engineering nucleus 55% 55% 30% India China Brazil 30% Off shore Unit 20% 0% India China Brazil High Low setup Local Global Autonomy from global R&D center Project responsibility Key Insights R&D setup in India is majorly of two types ► Engineering nucleus-Adapting worldwide product to local requirement ► Offshore unit – Development of specific contents for product utilizing low factor cost Source: Secondary Research Localized R&D centers in EMs are of four types India to be destination for R&D investment to develop products for global markets Source: BCG report on “Winning the BRIC Auto market 2012
  • 7. Global Construction Market Ranking 2009 2020 $1.7b $2.4b $3.6b $2.6b $3.3b $19.3b $22.7b $24.8b 30 25 20 15 10 5 0 2006 2007 2008 2009 2010 2020P 2020B 2020O 7 India CE Market Source: ICEMA Accenture Report 2011 Base Pessimistic Optimistic 19.3% CAGR 22.4% CAGR US$ billion 21.3% CAGR Country Rankin g USA 1 China 2 Japan 3 Germany 4 Spain 5 France 6 Italy 7 S.Korea 8 India 9 UK 10 Country Ranking China 1 USA 2 India 3 Japan 4 S.Korea 5 Germany 6 Spain 7 Russia 8 UK 9 Canada 10
  • 8. JCB: India Product Dev./R&D • Business – High expectations of Growth. • Opportunities to broaden R&D/Product development efforts : • Access to local talent • Frugal Engineering / Emerging Market mindset • Lead by Innovation • Staying Relevant to Market. • Leveraging Frugal Innovation • Focus – better access to customer insight • Structure – Product focus teams; Central core functions; Connect seamless to HQ/BUs; Dedicated captive design center; Freedom to Innovate
  • 9. Product Development Scale • Global platforms derivatives – Adjust features for emerging markets Level- 1 • New Product Development – Leveraging known platforms/technologies Level- 2 • Ground-up development for consumers in local market Level- 3 Level 2 & 3 – Opportunities for other Emerging Markets “Reverse Innovation”
  • 10. 35 30 25 20 15 10 5 0 Product Line: 4 9 JCB Portfolio Growth Product Line: 5 10 Product Line: 5 15 Product Line: 7 24 Product Line: 8 31 Excon 2007 Excon 2009 Excon 2011 Excon 2013 2014 YTD
  • 11. Innovation Maturity Roadmap Nurturing Innovation Culture Robust Innovation Process Live Innovation Programs Innovation Ecosystem Invest in People Reward and Recognition Celebrating the Innovation 1 2 3 4 5 6 7 8 JCB Innovation Wavefront
  • 12. Implementation Strategy Innovation Pipeline IP IP Kaizen Innovation Projects Futuristic (parked) Evaluation by Innovation Council Idea Assessment Hopper of Opportunities Intel Intel Intel Intel Innovation Process @ JCB Patents Intel Intel 40+ Intel – Innovation in Technology for Leadership IP R Impact Assessment New Products Technology Pool Intel 250+ Design Registrations
  • 13. Convergence – Thru’ Innovation
  • 14. 14 Opportunities & Challenges • Innovation as a growth engine for India (1/3rd of US GDP is derived from Quantum technologies) • Substantially change India’s perception to the world – “Offshore Back Office” to “Center of Competence” • 2011 study by CII and INSEAD, France had 52% responses yes for ‘India as Innovation Hub’ while 45% were negative. • Key changes required to accelerate India’s attractiveness as key innovation hub • Quality of infrastructure and research centers. • Integration of industry and academic / research institutions • Relevant Talent and Skills • Specific Government policies and incentives.
  • 15. 15 Summary • Globalization of R&D driven by globally interdependent economies – Global offshoring business worth US$ 120 bn in 2012. • R&D Industry in India has grown and also projected to grow @ CAGR of 14-16% to reach US$ 40bn by 2020. • Right ecosystem is a key to sustain R&D growth in India. • Leverage India strength – Market, Talent and R&D Productivity. • Innovation across the sectors is crucial for the next level of growth.
  • 16. Opportunity to ride the 3rd great wave of innovation and economic disruption. … Being set off by technological advances…Machine intelligence, Advanced Robotics, Life Sciences, Ubiquitous web….The DIGITAL revolution The challenge […] is to develop an “Inclusive model of Innovation”.
  • 17. Thank You

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