Friday, January 18, 2008

India and innovation .. - second week of the new year 2008 ..

Tata Nano, the $2500 car and the man behind it, Ratan Tata, the scion of Tata Sons.

The past week has been very monumental in Indian Industry. India stunned the world and the most popular small car manufacturer in the world, Suzuki, by introducing the Nano. Costing only $2500 (INR 100,000) this single innovation has opened the flood gates of hopes and aspirations of a 100 million plus, average and below average middle class population in India to own a four wheeler.

Another India IT product manufacturer HCL, stunned the world, especially after Intel withdrew from a very ambitious project of offering the sub $100 laptop citing uneconomy and non-viability, by offering the real cheap laptop, (INR 14,000, app. $350) targetting the huge 200 million plus, youngsters, college and highschool going populaton in India.

Tata is also planning to open assembly centres for Nano across the country offering employment to thousands of young men. The knocked down kit of Nano will be assembled by these people in these assembly stations. This is a totally new and innovative concept, on the lines of mass production started on the Model T motor car by Henry Ford in the 1900s.

This is delayed product differentiation which is effected near to the final end user, the customer, a supply chain concept, which was popularised by the HP deskjet supply chain model in collaboration with Stanford University. This is how Tata is planning to make economical cars as this brings in huge cost benefits to the customer, making the supply chain both efficient and at the same time effective.

There is no stopping this Juggernaut ..!!!!

Kind regards,

George Easaw

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