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Welcome to the session on Understanding Innovation in this session, we are going to see what is innovation

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really about and more fundamentally, why we need to innovate.

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And this will set the stage for us to understand design thinking better.

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So let's see what is innovation?

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Innovation comes from the Latin word innovator, which means renew.

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And if you see the root word for this, it is noice, which means new real change.

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So you see that changes at the core of innovation.

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We live in a world where changes are happening at a very fast pace.

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Whether it is individual or organization, embracing change is important.

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Change always involves something new.

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Is about innovation and design thinking is a wonderful framework to innovate or to improvise.

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Let's see what Darina said, it's not the strongest of the species, not the most intelligent that really

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survives is really the one that is most adaptable to change.

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This doesn't apply to species or to human beings.

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This very well applies to organizations also.

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Let's keep this in mind as we go about understanding innovation.

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Innovation, as we just saw, not at the same time, it's also about a powerful one, it's not just

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an idea.

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Because an idea needs to be converted into something tangible for the customer, something they feel

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certain things are felt physically.

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Certain things are not felt right.

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But it is important that we don't the idea into a solution, a great idea that is executed brilliantly

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is very important because otherwise the idea will remain in the drawing board.

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So what is innovation?

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What are the components of innovation?

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If you ask one thing is about creativity, trying to tap into the creative aspect of the organization

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of human beings and more importantly, the action you need to implement the creativity.

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Because organizations exist to satisfy the needs of the customer and the organizations.

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And the customers want value, so anything that we implement, any creative solution that you implement,

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it must add value to customers.

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So that's very, very important.

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So let's keep in mind that innovation is as much about creativity as it is about action, which is the

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process of implement.

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Right.

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So having seen what is innovation, let's understand why you need to innovate at its core.

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Innovation.

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In one stage, we saw that right, and we are living in a world what is call?

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We live in a volatile world, uncertainty, complexity and ambiguity of their customers expect organizations

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to manage these things for them, right.

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They want solutions that can make their lives simpler and easier.

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So it will call offers opportunities at the same time.

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It's also a challenge for the organization.

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The current pandemic has opened up a plethora of opportunities for organization.

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The level of digitization is at its maximum.

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Though that is a slowdown, it has given opportunities for organizations to take a step back right from

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the Madres and from a crisis every day, crisis management work.

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So it's given really an opportunity to relook at this.

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Right.

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So how many of us are really making use of this opportunity?

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That is something for us to reflect and ponder.

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But let's understand, we are living in a highly uncertain and volatile environment.

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It's up to us to be prepared for the change, to embrace the change, to offer something to customers.

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Who feeling that is a value in the offering.

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Right.

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So let's keep this in mind as we pursue innovation and try improvising our offerings.

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As we talk about Hugo, let's take a step back to understand the extent of change that's sweeping,

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you know, the industrial world.

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If you see, we are now in the midst of what is called US Industry 4.0, which is that I see Industry

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4.0.

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I'm referring to the industrial revolution, the end of 18th century mechanization, steam power.

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You know, and we knew before that it was Blackbutt.

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Right.

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Industry 2.0 is about mass production assembly line, like the concept of three shifts, eight hour

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shift, five day workweek.

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All of that happened in Industry 4.0 electrical energy.

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Right.

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That also came about in the beginning of the 20th century.

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Then we had Industry 3.0, which is all about computers, the first level of automation in factories

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right up the most long.

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That was postulated in the 70s, right by God.

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And one was the co-founder of Intel.

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The number of transistors in an integrated circuit and a computer was doubled in almost every two years.

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Right.

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And that law is holding to even after 50 years.

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Right.

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So faster computers.

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Connected systems is what we have in Industry 4.0, right, cyber physical systems missionary's are

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talking to each other, right.

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Networks are talking to each other.

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Internet of Things, analytics, very high level of automation, the concept of dark factories.

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The automation is at its highest level.

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All of these things are happening in Industry 4.0.

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So you can understand the extent of change that is sweeping our world.

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Right.

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What I mentioned before, Enlistee 1.0, it was all about Bulloch and what the Bulaga some people felt

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at the time, right, that nobody would need Kaas.

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The same thing was said about computers.

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I know in some countries, in some places, people want computers saying that it's going to take away

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jobs, yes, it took away some jobs, but new jobs are created.

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What they say is the jobs of the future are not being have not been created, not it's going to be created

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in future.

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That's the kind of one a tiny.

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A change for the environment that we are in.

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As I mentioned, the pace of change has been accelerating on this comet.

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Pandemic at many levels has accelerated the extent of digitization that is happening.

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The organization that is presenting new opportunities for individuals and for organizations either to

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embrace change or left.

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So if you really see the companies, the biggest companies of the universe, who see the industry 1.0

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2.0, really you stealing General Motors, Exxon, right.

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They still are right.

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But their market cap is not in the top one or two or three.

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Right.

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If you see industry three point zero, it was dominated by the likes of IBM, Industry 4.0.

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Is Apple right?

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Apple is the company with the highest market capitalization currently on the company with the highest

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market capitalization in the early part of the 21st century was the US team that is just now still around,

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but with a much lower market capitalization.

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So you can see the change that is sweeping.

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I what I remember about Polaroid, it was a top company.

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In fact, it was in the one amongst the top 10 companies by market capitalization in the 70s and 80s.

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What is it now?

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It doesn't exist.

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That's because, you know, customers have moved on to new technology.

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Florida's was not ready, was not prepared for the onslaught of digital technology.

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Right.

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So that's how change has been happening.

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If you see the case of Polaroid, they may be thinking, you know, in the 80s, 90s, they may be thinking

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about how to improvise the services, how to better their offerings with respect to the competition,

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the current competition there.

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Right.

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They did not see any change in the macro environment.

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So they punished.

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So change is happening at a much faster pace.

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It's important for organization to to make use of this opportunity to be prepared for the change.

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Because if you look at the USA enthrallment, only 61 companies figure in the Fortune 500 list of the

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year, 1955 and 2050, that is just about, you know, little more than 10 percent.

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Right.

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So there is the creative destruction that is happening.

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What happened to the rest of the companies?

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They went bust after they got taken over by another company.

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The other companies don't exist now.

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So the average denial is only about 18 years.

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It used to be about 30 years or so.

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You know, some of years back, the average tenure of an organization in the Fortune 500 listing is

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only about 18 years closer to home.

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In India, only seven companies figure in the Sensex and six of the top 30 listed companies of Bombay

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Stock Exchange.

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Only seven companies figure in the sense it's duty 86 to 2020, right.

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So you can see the level of churn that's happening and the composition of top 30 companies has also

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undergone a drastic change.

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You know, now we have banking technology, you know, telecom and other companies compared to manufacturing

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and other types of companies then.

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Right, because India is a country which is dominated because the Indian business environment is dominated

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by family owned companies.

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So even in such a scenario, the many of the companies are not part of the top 30 list.

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So you can understand the change.

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So change is happening all around us.

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The pace of change is increasing significantly.

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So it is important not just organizations, but even individuals to be prepared for the change.

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Right.

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Which essentially means you need to innovate, but you need to innovate on a process, you need to innovate

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on a product.

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Right.

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You can't be fixated on your current competition.

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Tomorrow, new technology in a totally new product, Mekonnen, which can make your need, which can

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make your existence questionable, right?

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Let embrace.

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So having seen why we need to innovate, let's understand the different types of innovation, I can

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be a product, physical product or product like a software.

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Right, because you don't you can't touch and feel the software.

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I can innovate on that.

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Can be a process, see, you are offering you could be a service provider.

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Taking Lizzi 45 minutes to deliver food.

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Can you reduce it to 30 minutes or 15 minutes?

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Call for process enhancements that will call for innovating on process can be a business model change

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covid.

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As we mentioned, the he does accelerated the level of digitization.

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You can introduce a new business model adopting the digital framework, so that offers an opportunity,

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right?

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You have to innovate, otherwise you'll be lost.

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Lastly, experience, can you elaborate on experience because customers look for enhanced experience

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at the same time, a simple experience.

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So there are four ways around four types of innovation that I really see.

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One can adopt the design thinking framework for any one of the product process, business model or.

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And as you innovate, keep this customer requirements in Mount.

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Because customers on any day want a better product quality product at a lower price.

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Great customer experience and hassle free, like what I'm saying is in the name of innovation or improvisation,

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don't make life difficult for the customers.

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Customers don't want pain.

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They're not going to experience pain because many times the software upgrades happen and they make life

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difficult for the customer.

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Right.

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You end up feeling that the previous version of the software product was so much better.

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You don't want such a scenario, right?

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So please keep this in mind as you go about innovation.

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Lastly, I want to share this perspective on left brain was.

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U.S. organizations are typically more focused on delivering more nimble, driven, right.

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The focus on innovation is relatively low in most organizations.

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But if you look at organizations, companies that have survived over the long haul.

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There are companies that are focused on innovation also.

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Remember the examples I showered on the companies, the top companies that have existed over a 50 year

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time period?

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Right.

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The use scenario on the Indian scenario examples, I get to really see the companies that are so white

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are companies that have embraced change and the companies that are innovated.

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So what I'm proposing is a blend of left brain and right brain approaches.

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It's not like one is better than the other, right?

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Organizations are focused more on live approaches.

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Great.

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They haven't given adequate importance to right brain approaches like innovation.

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So go ahead and correct that imbalance, blend the two.

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Right, if you blend the two.

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Your organization can really succeed and be for a long haul.

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So that's what I wanted to cover in this session.