Edited excerpts of an exclusive interview of management guru Dr. Ram Charan, Advisor to CEOs & Corporate Boards with Lavanya Iyengar from ETInsights
Increasing global digitization has raised a number of concerns regarding simultaneous rising inflation: What is the future? Where are we headed as a nation? In the interview that follows, Dr. Ram Charan highlights and comments on these upcoming trends.
Is leadership transformation keeping pace with digital transformation?
Dr. Ram Charan: Digital transformation is widely misunderstood. It is a tool that can be used to transform a business and give leaders new ways to imagine what the business could be. Business leaders need to reimagine and question: What digital engine do I need? (Based on their understanding of what people are doing). Digitizing everything is not the solution, it’s the biggest mistake one could make. Tackle the problem and do not generalize the solution. Look beyond.
What could be its rate of growth? What new customer experience or new product could change the whole industry (think iPhone or Tesla)?
Digital tools are reshaping all industries and national economies. India is ahead in shaping the flow of commerce and now it is on the path to export this engine to other countries.
Are digital trends influencing, engaging, and determining customer engagement and customer satisfaction?
Dr. Ram Charan: Digitization allows personalization and low cost at the same time! Each customer can be served in a unique way. At the same time, digital personal engagement generates data. Application of AI to the data can quantify desired components of customer satisfaction such as convenience, which increases value to the customer.
Less distraction, and more satisfaction is the key. Data must be analysed, understood, and applied. The point is to understand how durable your customer satisfaction is, and how to influence and maintain it.
How do you see growth in India? Where are we headed as an economy?
Dr. Ram Charan: India is on fire. India is going to grow in multiple ways. Technology has been the major contributor for the last 30+ years; and now the question is not just about manufacturing or technology, it’s more about strategies. Any industry with a clear idea of their growth plans and data structures will grow immensely in India and will continue to grow in multiple ways. Prime Minister Modi’s Washington visit is consequential not only for the democratic world but also for both, the US and India – as it is a big booster especially for the Indian economy. Lots of FDI agreements have been signed and that is a good sign for the economy.
You have spoken extensively on “Leading with inflation.” Is India leading with inflation now? Are our worries shrugged off?
Dr. Ram Charan: India has the engine for economic growth now – the how and the why is all in the leadership aspect. In a country with the right leadership and onus, economic growth will inevitably peak, and my take is that India is on the right path with the leadership in place. The Finance Minister and Governor of the Reserve Bank are doing a tremendous job. Inflation drivers in India are well managed.
I am very bullish on India. It (India) has a robust path to economic growth. Ever since independence, the Government has demonstrated that its apparatus can focus on achieving major milestones. India has revamped the ease of doing business and is the place where the next growth story is happening.
Also read – Inflation in India projected to decrease to 5 percent: IMF
