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Innovation in India for India by Indians Innovate India, Dehradun 28 February 2014 Murali Sastry Director DSM India Innovation

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Innovators ?

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What is Innovation ?

1. The Innovator has for enemies all that have done well under the old, and lukewarm defenders in those who may do well under the new law – Machiavelli 2. Innovation is creativity with a job to do – John Emmerling

3. Innovation is people creating value by implementing new ideas

4. Innovation is the process that translates ideas into commercial value 5. Innovation is the conversion of knowledge and ideas into a benefit, either commercial or for public good, the benefit may be new or improved products, processes or services

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Innovation = Invention + Exploitation (Value Creation)

What is Innovation ?

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Dr Spencer Silver and Mr Art Fry

Invented 1968, innovated in 1974 and

became a commercial success in 1980 !

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Page 6

Business

discovery

Joint Business

Developments

Venturing

Licensing-In

Licensing-Out

Acquisitions

Divestments

Spinning-In

Spinning-Out

Fuzzy F

ront

End

R&D for non-DSM

companies

Steering the innovation pipeline

Market Push

Market Pull

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Innovation is risky…..

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Are we innovative ?

Do we have a tradition of innovation ?

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Innovation ( ) in India

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Invention/Innovation in India down the ages…

1. Button – buttons made from seashell were used in the Indus Valley Civilization for ornamental purposes in 2000 BC 2. Urban planning – remains of major Indus Valley cities during the period 2600-1900 BC shows high level of innovation in closed drains and sewage lines, organized buildings, use of dikes etc.

3. Plastic surgery around 2000 BC by Sushruta

4. Iron implements during the Vedic period (1800-1200 BC) 5. Shatranj, the precursor to the game of chess was invented in India during the period of the Gupta Dynasty (250 – 550 AD) 6. Rust free iron pillar during the period of Vikramaditya (~ 400 AD)

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Invention/Innovation in India down the ages…

1. Prefabricated homes and structures – in the 16th Century Mughul India 2 Lateral Shear Interferometer to measure the refractive index of materials (MVRK Murty) 3. Micro-organisms for the degradation of oil spills – Ananda Mohan Chakravarty in 1980 4. Crescograph – a device to measure the growth of plants, by Jagadish Chandra Bose, early 20th century 5. Optical fibre with cladding, early 1950s by Narinder Singh Kapany

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Types of Innovation

Degree of difficulty

Type

s

Product/Service

Process

Business Model

Social Applications

TMTC Report, 2009

Group HR Research

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J N Tata Endowment Fund

Name of Organization : JN Tata Endowment fund

Type of Innovation : Social Innovation

Year of Innovation : 1892

The need : A fund for deserving, talented and highly

motivated young Indian students to pursue higher education

abroad.

66% of the profits of Tata Sons goes to a public trust

dedicated to the benefit of the people and the nation.

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Portable ECG system

Name of Organization : GE

Type of Innovation : Product Innovation (Reverse Innovation)

Year of Innovation : 2008

The Innovation : Conventional ECG machines are bulky, require power outlets and are expensive (> 150 Rs/ECG). Almost impossible to use in rural India. GE invented a low-cost ECG machine (MACi) that uses locally manufactured components. Cost of machine – Rs 25,000 and cost per ECG – Rs 9. While this was developed for India, currently sold in 100 countries worldwide, including developed ones.

Impact of the Innovation : This is revolutionalizing healthcare and brings sophisticated instrumentation to rural India. Have shown that low cost does not mean low technology. Other examples – iBGStar (low cost diagnostics from Achira Labs), OncoPrint (low cost, rapid detection of optimal cancer treatment protocol)….

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Tata Consultancy Services

Name of Organization : Tata Consultancy Services

Type of Innovation : Business Model Innovation

Year of Innovation : 1968

The Innovation : While many Indian companies such as Mafatlal, Godrej, Shaw Wallace and Kirloskar had ventured into computing, only computer time was sold. TCS realized very early that providing dedicated services in management computing and consultancy services in an offshore delivery mode would be a differentiator.

Impact of the Innovation : The first project involving conversion from one platform to another (ICL1903 to Burroughs 1700) was executed in Mumbai and delivered in Detroit (1974). This brought recognition and many projects followed in quick succession. Revenues soared and in 2002, TCS contributed close to 40 % of total profits to the Tata group.

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e-Choupal

Name of Organization : ITC

Type of Innovation : Business Model Innovation

Year of Innovation : 2008

The Innovation : To use internet and mobile connectivity to empower farmers thereby establishing a win-win relationship for procurement of agricultural and aquaculture produce for ITC at fair price. There are currently 6,500 e-Choupals going up to 20,000 by 2015.

Impact of the Innovation : E-Choupal outlets run by trained farmers (sanchalaks) give instant access to information related to weather, crop solutions, global produce procurement price etc. to the farmer. This has eliminated middlemen who were taking away the profit in the past as well as reduced wastage due to direct procurement.4 million farmers have been empowered.

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Name of Organization : Tata Motors

Type of Innovation : Product Innovation

Year of Innovation : 2008

The need : Indian families (often 4-5 members) at the bottom-of-the-pyramid often travel by two-wheelers under unsafe conditions. Can a truly ‘people’s’ car be manufactured at Rs 1 lakh to cater to this customer base ?

The Innovation : A highly interdisciplinary manufacturing team, use of ideas from different sources (window winding from aeroplanes, dashboard from two wheelers), new fuel injection system from Bosch, FEV from Germany to develop the engine system, hollow steering shafts from the Rane group. Half of the 100 vendors are located on site and 97 % is of local content. Distributed assembly line envisaged + knocked down kits that can be assembled at 5/6 different locations.

The Nano

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4 billion people at the bottom of the pyramid, mainly in the developing world.

Report to the secretary general of United Nations: by Commission on The Private Sector & Development

Where Innovation could have the most impact

Technology focused on the needs of the „bottom-of-the-pyramid‟ makes business sense and addresses the UN-MDGs.

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Another view of BoP….

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What might these new paradigms be ?

• A clear understanding of the NEEDS of the BoP a must; definition of

constraints/assumptions much more complex than other market segments

• Using traditional knowledge a good starting point (MittiCool); traditional

knowledge + modern S&T can be greater combination (Tata Swach, psoriasis

treatment discovery)

• What will work in India - Frugal Innovation driven products/Gandhian

Engineering – move from M4M to M4L4M (Dr R A Mashelkar & Prof C K

Prahalad, HBR)

• Develop methodologies for products/services at GGL (Krishna Palepu, HBS –

Winning in Emerging Markets : A Road Map for Strategy and Execution)

• Examples of M4L4M

1) MittiCool 2) Tata Swach 3) Jaipur Foot

4) GE’s MACi 5) Sachets 6) ITC’s e-Choupal

7) Tata Nano……

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Sustainable grassroots Innovation - MittiCool

• Boundaries of the sandbox –

1) Must be able to able to enhance shelf-life and perishables by

at least one week

2) Cannot use electricity !

3) Must be cost effective, in the ultra low cost segment

4) Difficult to classify – LLL ?

• Solution

1) Use traditional knowledge and find new application (Matka

technology)

2) Functional design resembling a fridge – can sustain ~ 7 oC

temperature drop by pure water evaporation

3) Use locally available material (clay) to keep costs low

4) Clearly understand the needs of the BoP – increasing shelf-life

by 5-7 days a big win for BoP. 15 oC/4oC not required !

5) Where science can meet tradition – anti-microbial coatings

for the clay to enhance shelf-life further ?

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Jaipur Foot – affordable, fully functional prosthetic foot

• Boundaries of the sandbox –

1) Suitable for workers in Developing Countries – high level

of functionality (climbing, running, cycling etc.)

2) Durable, long-lasting and lightweight; worn

with/without shoes with look and feel of a

normal foot

3) Easy to fabricate and fit; ultra-low cost

4) In short, must be a GGL product

• Solution

1) Initially laminated wood and rubber with Al

socket

2) Continuously evolved, now use high quality polymers

3) Innovation in manufacture – replace sheets with heated

HDPE pipes (no seams)

4) Cost ~ 3 $ (normally 2,500 $); significant partnership

with Dow Chemicals and now available in over 20 countries

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Bringing safe, affordable drinking water to

India – the Swach story

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When is the “world water day”?

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• 75% of the rural population in India does not have access to

safe drinking water

• 80% of diseases and 33% of deaths are caused by unsafe

drinking water

• An estimated 400,000 children in India under five years of age

die each year due to diarrhea

• There are about 6,00,000 primary schools in rural India

- Safe water is not available in 50% of the schools

No standard water treatment system is available in rural

India

Drinking water problem in India

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To make safe drinking water accessible to

millions of people

The challenge

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Features of Swach

• Purifies 3000 lit of water – removes bacteria & viruses

• Tested across national and international labs against challenge levels prescribed by the USEPA

• Attractive models at entry points of Rs.999 & Rs.749

• Replacement cost of Rs.299/- for 6 months

An ambitious goal of eventually providing access to

safe drinking water to the entire nation

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Tata Swach (Crystal)

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Cartridge internals

RHA +

Nano-silver

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What Are Nanoscale Particles?

Atoms/Molecules

NanoscaleParticles

QuantumChemistry

Solid StatePhysics

1 125 70,000 6×106 N

o Atoms

1 100 Diameter(nm)

Condensed Matter

10

?

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8

8

N = 4096

n = 1352

N = 4096

n = 3584

N = 4096

n = 2368

N = total atoms; n = surface atoms

Surface Area

Scheme adapted from Schmid, G. In Clusters and Colloids; Schmid, G., Ed.; VCH, Weinheim,1994.

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Nano-sizing Causes Changes In:

Color Crystal shape

Conductivity Magnetism

Melting Points Chemical Reactivity

Light Absorption

Uses and Potential Uses of Nanomaterials/Devices

Sun Screen Drug Delivery Immunological Labeling

DNA Recognition Computers Information Storage

Book Preservation Harder Metals Environmental Remediation

Refrigeration Solar Cells Catalysts

Better Batteries Burn Treatments Softer Ceramics

Air Purification Water Purification Smart Magnetic Fluids

Self-Cleaning Windows Homeland Security

and Paints

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Stain resistant

textiles

Self cleaning

alloy wheels

Heat reflecting /

antireflective

coating

paint and anti

scratch

coatings

CNT in plastic

components

Carbon Black

or CNT tyre

compounds

EU nanotech network progamme website

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• Naturally occuring

mesoporous substance

• An abundantly available

agri-waste

• 80-90% active silica

• Large surface area for

interaction ~ 25-50

m2/gm

Rice-husk-ash (RHA)

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• Silver is a potent biocide while being completely safe to humans

• Silver ions have the highest level of antimicrobial activity of all the

heavy metals

• The bactericidal efficacy of silver is through the strong binding with

S–S and –SH groups found in the proteins of microbial cell walls

leading to cell death

• Nano-silver has a positive ion cluster and can be kept stable with no

change of properties from any chemical reaction

• Nano-silver very slowly dissolves in water releasing Ag+ ions

• The enormous area / volume ratio of nanoparticles provides for

numerous local sites for interaction with microbes

Nano-silver

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The challenge

How to combine nano-silver with RHA for

maximum availability and minimum leaching ?

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Coating methods by TCL-IC – In-situ synthesis

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Silver

precursor +

RHA

Add reducing

agent &

reaction

Filtration Drying

About at dozen different coatings made at TCL-IC

and sent to TCS-TRDDC

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The collaboration

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Coating

from

TCL-IC

Testing at

TCS-

TRDDC

Feedback

to TCL-

IC

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We are in the Mashup Era…..

The age of the unthinkable – Joshua Cooper Ramo

• Age of non-linear phenomena : 2 + 2 > 4 (certainly not equals 4 !)

• Major breakthroughs occur at the interface/intersection between

disciplines (Nobel Prizes are an indicator)

• Shigeru Miyamoto and Nintendo – disruption in Console Gaming

Accelerometer + Console gaming = new, athletic gamers (goodbye

couch potatoes) !

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We are in the Mashup Era…..

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Some rules of thumb for a culture of innovation

Anyone and everyone can innovate (not just scientists !)

Be willing to fail – celebrate and reward failures as much as you would successes

Some amount of ignorance is good – try and bring in an outside-in perspective (inter/multi-disciplinary approach)

Be very close to your customer, co-develop rather that offer solutions

The best innovations are often the simplest ones – simplicity is the ultimate sophistication

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Some rules of thumb for a culture of innovation

Bring in a multi-functional, multi-cultural team to innovate (sociologists, anthropologists, economists, lawyers, office support staff – the more the merrier)

Baggage from the past, inertia of success are serious impediments to successful innovation

Be quick to change and adapt – the world is changing at an ever rapid pace and only the most agile companies will survive

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Above all……

Stay hungry, stay foolish

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“Our world has enough for each person‟s need but not for his greed.” - M K Gandhi "For the first time in history it is now possible to take care of everybody at a higher standard of living than any have ever known. Only ten years ago the 'more with less' technology reached the point where this could be done. All humanity now has the option of becoming enduringly successful." - Buckminster Fuller

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Challenges to being an innovator

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Multi-dimensionality is the key….

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Our purpose is to create brighter lives for people today and generations to come.