5 Ideas for Truly Lean and Agile Organisation in this VUCA World

Business world is witnessing a state of flux. Every business entity is going through sudden and abrupt change. It has made business world fiercely competitive. Though Agile and Lean seems oxymoron but these two in unison are the only way to manage the Business Risk in this VUCA World. 

Following 5 Original ideas are to be included by every organisation in their thinking Process. 


1. Always believe that impossible will happen

It always seems impossible until its done. As Organisation it must always believe that Impossible will happen. So explore, think, explore and draw impossible Scenarios in your planning Stage. 180 Degree Change in Business Model, Customer requirement, Technology, Govt. Regulation, Competition needs possible way. 

2. Act on Future Now

When change is fast you have to change faster. Capturing the change and ways to addressing it is prerequisite to develop adequate capabilities. Developing the think tanks in the Organisation is first step to act on future. This is entirely different BALL GAME than Working on Cost Reduction, Process Improvements and Efficiency Improvements. 

3. Aim is to address Aspirations not Requirements

There are some attributes which customer knows that he wants and then there are some which even customer doesn't know that he wants . Aim is to offer all these attributes in your product with elements of Genuineness, Surprise and personal Human touch. This task would require extensive collaborative efforts of all  functions of organisation. 


4. Develop Distinct Capabilities fast

If you will Tread same path, you will reach same destination. Organisations needs to develop distinct Capabilities quickly to achieve sustainable Competitive Advantage. There should not be one or two capabilities as a pillar but there should be options of capabilities depending upon various thought off business scenarios. To develop distinct Capabilities organisations need to explore not only Organic options but also partnerships/ collaboration with organisations, Incubation Centers, Start Ups, Universities and Freelancers.


5. Humans vs Humans 

At the End it is Customer vs Employees. These are two clear ends of the Business but both are equally important for Organisation.  While Customers are in Uncontrolled environment, Employees are together in Controlled Environment. Goal of Agile and Lean Organisation is to exceed customer aspirations by fostering abilities and attitude of employees to win this game.

Conclusion

Adaptive Learning Organisation is the need of hour. It can only be achieved by leveraging True Human Potential. When Each Employee will fight for the cause of Sustainable Existence of  Organisation to make this Society better place to live, We will see Better world around us. Ideas can be further discussed with Author on one to one Basis by reaching him on ajaysingh290881@gmail.com

Automotive Industry is in state of FLUX

First Stationary Gasoline Engine was Patented by Carl Benz in 1879. After 140 Years , this Engine is seeing potential extinction as Electric Cars are taking small but firm steps ahead.

In these 140 years, Automotive Industry has been pioneer in leading the Industrial Progress across the globe. This Industry has not only been source to biggest Technical Innovations but also to Best Management Practices such as Assembly Line, Time & Motion Study, Productivity Enhancement, Shop Floor Management, JIT, TQM, Cost Management etc.

With Assembly Lines in 1915-1935, Ford  brought Economy of Scale in Model T, when Wages of Labor increased 5 fold and First Motor Revolution took place. General Motors Lead the Industry from 1935-1960s when it mixed the Economies of Scale with Economies of Scope to give the differentiation to the products. 1960s saw the Age of Japanese Manufacturers who brought Fuel Efficiency and impeccable Reliability to their products. Toyota, Honda, Nissan were the New Emerging Leaders along with VW - the German Power House of Innovation. This pack of  American, German and Japanese Manufacturer ruled the World Economy in a big way. It was 2008 when Elon Musk changed the Landscape of Industry by Introducing Electric Cars to US. Since then this Industry is not the same because It was not more  Japanese vs American Vs Germans, but it was ELECTRIC vs GASOLINE Engine.

Emergence of Electric Cars

Since 2008, There has been reluctance that whether it would be commercially viable to run the Electric Cars, as this Project was once Crushed by US governments when all the electric Cars of GM were scrapped in a big blow to this technology in early 2000. Whether It was political or Economical Matter, that I would not comment upon, but Yes It was POWER Game of Lobbyists as OIL was at the center of all and Whole world was seeking Oil Reserves and Cartel of Arab countries was posing greater threat to the World Economies.

2008 on wards,  Global Warming, Environmental Impacts of Vehicle Pollution and health Hazard was the first reason because of which Emissions Norms were made even more stringent, . Second Reason was Trade Imbalance because of Oil imports , which were impacting Emerging Economies badly. These Two factors were major reasons for the Big push of Electric Vehicles.

Breakthrough Innovations in Mobile Technologies

In these last 10 Years another Parallel wave has been witnessed by consumers in the Field of Mobile Technologies. Internet brought things too near to consumers. with 4G/ 5G Connectivity become the part and parcel of Consumer's life, Data consumption and Consumer Pattern completely changed towards Technology usage. This pattern further percolated to Automobiles too. Customer Expectation became too high and they expect the same form the Vehicles too.

Shared Mobility- Threat from "Non- Manufactures"

Another  very important factor  in Mobility Market  is Shared Mobility Business. Uber / OLA / DIDI and other Technology firms are giving the OEMs nightmare of their Life. With Cost of Ride sharing at nearly same level as of Car owning,  the preposition of Vehicle OWNERSHIP is really a great question Mark for the Consumer.

Impact of Above on Auto Manufactures

With Above Market Forces and Changes Automotive Industry by now has become very competitive. As Quality/ Reliability has becomes Standard norm across Industry, Competitive Advantage of the OEMs is getting lost. This trend resulted into reduced Profit Margins of Big Auto players to bring out as requirement of the Market is to bring competitive products on affordable prices. On the one hand there is Huge cost of bringing New technologies ( Connected Cars, AI, Autonomous Cars, Stringent Emission Norms), while on the other Hand prices can not be  further increased because of competitive Market Forces such as Shared Mobility.

Way Forward

With No choice left with OEMs,  Collaboration/ Partnerships/ Mergers/ Acquisitions seems the only choice they are left with. This Collaboration Model may bring some relief by sharing the cost of Product Development, Technology Development and to invest in Future R&D ( To develop Electric Cars ). This would definitely give some breathing space to OEMs to challenge the Shared Mobility Providers and explore new Business models.

But 2020- 2030 - Indian Automotive Industry is in Flux. 

This is one of the most challenging yet exciting decade in the History of Automotive Industry.  This flux is mainly because of following reasons.

1. Mobility Technologies are not yet fixed. Gasoline, Mild Hybrids, Plug in Hybrid, Full Hybrid, Full Electric, Hydrogen Based Fuel Cells,.

2. Driving Technologies are evolving- Driver/ Driver Less

3. Safety Technologies are becoming Norm- Sensots/ Radars, ABS, Driver Assists, LAN Assist etc.

4. Business Models are Evolving- Car Manufacturer / Mobility Solution Provider/ Technology Provider

5. Stringent Govt Regulation- Emission Norms, Safety Norms, Electric Cars Norms, Crude Oil prices

6. Erratic Consumer Behavior- OWN vs RENT, Personalized Mobility, High Level of Customer Service and 5G Level of connectivity, Millennial with Great Purchasing Power

7. Balance of Global Power- US- CHINA- RUSSIA- INDIA- ASEAN

This is big Flux in which OEMs have to find the way out to make the future Strategies to build a Sustainable and Profitable Business Case for the Future.

Next Article- New Emerging Supply Chain.