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Businesses Need To Adapt To New Models, Unconventional Thinking: Munjal
Organisations need to adapt to new models and unconventional thinking going ahead, Hero MotoCorp Chairman and CEO Pawan Munjal said
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Organisations need to adapt to new models and unconventional thinking going ahead as a volatile and uncertain environment has undermined the effectiveness of traditional ways of operating businesses, Hero MotoCorp Chairman and CEO Pawan Munjal said on Monday.
Munjal, who is the recipient of this year's AIMA JRD Tata Corporate Leadership Award, noted that the COVID-19 pandemic and the resultant unprecedented challenges and uncertainties in the supply chain call for sea changes in operating procedures.
In the recent past, the incredibly volatile and uncertain environment has undermined the effectiveness of long term forecasting and traditional strategic planning. The change in the world ecosystem has been disruptive, pushing people, organisations and economies to the brink. Thus, achieving goals now requires a sea change in our models of operations, Munjal stated in his keynote address.
The veteran industry leader noted the ability to thrive in uncertain times requires unconventional thinking and calculated risks, including delivering difficult or unpopular decisions.
In the current scenario, where uncertainty characterizes ties, economic and social structures, it is a race for organisations to move away from the traditional approaches of strategy and adopt evolved models, Munjal said.
He noted that global political unease, commodity and supply chain disruptions, health concerns and innovations were adding to all the global uncertainty. "..Leaders, public and private, need to develop balanced strategies to ensure growth and stability in the future," Munjal said.
He further said: Another very crucial aspect in today's world is that not only is it changing faster than ever before, but it is also far more complex than the past. The geopolitical situations around the world mixed with fast-evolving consumer behaviour and rapid technology advancements have seen even new-age companies losing prominence as quickly.
Since uncertainty is perceived as a threat, usually individuals, as well as large groups, get into survival modes, Munjal said.
In the past, we have seen public and private enterprise perishing in survival mode. However, uncertainty also brings with it endless opportunities, even though it may be counterintuitive to human nature...uncertainty also often gives rise to new undiscovered needs, he stated.
Munjal noted that the biggest positive in recent times has been the significant support from all quarters for the green and sustainable initiatives.
From a time when the green agenda had to be pushed, it is now being welcomed and propagated by individuals, organisations and governments alike. India's renewed focus on sustainability through natural and organic farming relies on green energy and the creation of funds will further India's efforts to meet climate change goals for a sustainable future, he stated.
On queries regarding the company's EV roadmap, Munjal said that the two-wheeler major plans to utilise some of its existing dealers to roll out its upcoming range.
We have about 8,000-9000 touchpoints across the country. It is one of our biggest strengths. Why would we let go of that strength? We are already working very closely with some of our dealer partners who, going forward, are going to also become our network for the electric vehicles, he stated.
Munjal noted that the company has already come out with its vision document which states its ambition to lead the two-wheeler space in the future as well. On a query related to the readiness of the component industry in the EV segment, he stated that the ecosystem has been also transitioning for some years now.
A number of the supply chain partners have already co-created systems for electrification while they're still working on supply chain components for the combustion engine vehicles. And there are many new startups that have come up for electrification components, whether it's battery or motor or battery management systems, etc. So that combination is already working, he noted.
He further said: Going forward, I believe most of the current ice (internal combustion engine) component suppliers will get into the electric components as well.