Titan Intelligence

This Is The Age Of The Titan intelligence.

Date: May 3, 2017

People in the News

Botox Baron Dies

Celebrity dermatologist FREDRICBRANDT, once called the Baron of Botox, has died aged 65. He apparently hanged himself. According to Dr Brandt’s publicist, he had been suffering from depression for some time and was recently devastated by what is believed to be a parody of him on the Tina Fey comedy series, Unbreakable Kimmy Schmidt. However, she added that he didn’t kill himselfbecause of that one show. An early propo­nent of botox, his clients included Madonna. He was also a writer and radio talk show host.

Raju Sent To Jail Again

B.RAMALINGARAJU was sentenced to seven years in j ail and fined Rs 5 crore after being found guilty of criminal conspiracy and cheating in the Rs 7,000-crore Satyam scam. Touted as the nation’s biggest accounting fraud, it came to light on 7 January 2009 after Raju, the company’s chief, confessed to fudging its account books and profits for years. The scam caused an estimated notional loss of Rs 14,000 crore to investors and unlawful gains of Rs 1,900 crore to Raju and others. Raju had earlier spent 30 months injudicial custody.

FRESHCHARGES

Former CMD of Syndicate BankS.K.JAlNhasbeer booked in a money laun­dering case by the En­forcement DirectorateJt took cognisance of a CB FIR, which had accused Jain of accepting a bribe of Rs 50 lakh through conduits and abusing his official position to en­hance the credit limits cf some firms. He was ear­lier arrested for grantingcredit extension to B h u s h a n Steel after it defaulted 1 on the pay­ment of loan instalments.

Raju Sent To Jail Again

B.RAMALINGARAJU was sentenced to seven years in j ail and fined Rs 5 crore after being found guilty of criminal conspiracy and cheating in the Rs 7,000-crore Satyam scam. Touted as the nation’s biggest accounting fraud, it came to light on 7 January 2009 after Raju, the company’s chief, confessed to fudging its account books and profits for years. The scam caused an estimated notional loss of Rs 14,000 crore to investors and unlawful gains of Rs 1,900 crore to Raju and others. Raju had earlier spent 30 months injudicial custody.

New Turf

  1. SHANKAR, Standard Chartered Bank’s CEO for Middle East, Africa and the Americas, has quit the bank amid a top-level management reshuffle, to pursue his ambition of managing a private equity fund. Shankar, who has been with the bank for 13 years, was instrumental in building its busi­ness and clinching deals. He is the latest among senior executives to leave the bank after chairman John Peace, chief execu­tive officer Peter Sands and Asia chief Jaspal Bindra.Berio Bows OutItalian media mogul and former prime minister SILVIO BERLUSCONI has agreed to sell his football club Inter Milan in a deal worth €1 billion. Ber­lusconi is close to selling 75 per cent of his shares in the seven-time European Cup winners after holding talks with Chinese investors. As part of the deal, Berlus­coni’s daughter Barbara is expected to continue in her post as club director.MARANSINTROUBLEThe Enforcement Directorate attached assets worth Rs 742 crore of former telecom minister and DMKleader DAYANIDHI MAR AN (right) and his brother KALANITHI M A R A N in the Aircel-Maxis case in which they are ac­cused. Dayanidhi had allegedly received Rs 742.58 crore as illegal gratification. Earlier, the CBI had alleged that Dayanidhi forced a promoter to sell his stakes in Aircel and two subsidiary firms to Malaysian firm Maxis Group.

    RAGSTORICHES

    ZHOU QUNFEl, a for­mer factory worker whc founded a company sup­plying Apple, Samsung andothertechnologica giants with touchscreer glass, has become Chi­na’s richest woman, wit” a fortune over $8 bil­lion. Qunfei, the chair­woman and presides of Hunan-based Len: Technology, saw he- wealth soar after the firm’sdebuton the Shen­zhen stock exchange

    FAR FROM FAB

    It’safairbit ofbad pub­licity for Fabindia and n: one will probably knov this better than manag­ing director William Bis- sell. He, along with CEC Subrata Dutta, were summonedfor question­ing by the police afte- HRDministerSmritilrar discovered a CCTVcam­era near the trial roomr a Fabindia store in Goa : Candolim. The store ma lose its trade licence too.

Manage talent in the digital era or stickto the traditional

Frozen foods division ofUnilever before joining Gucci in 2004. LVMH has recruited several non-industry leaders, including Laurent Boillot, formerly of Unilever. Liberty pic hired Geoffroy de La Bourdonnaye, who was with Disney for many years before joining LVMH, while Dr. Bruno E. Salzer worked at Beiersdorf and Schwarzkopfbefore becoming CEO of Hugo Boss. Stanislas de Quercize, president of Cartier and ex­president ofVan Cleef & Arpels, started his career at Procter & Gamble.

But the big three, LVMH,

Richemont, and Kering, although open to external high-potential recruits, are undoubtedly more comfortable trying to nurture employees who are already within the organization or at least within the industry, and are now investing in their talent resources to nurture leaders for tomorrow. BigorsmaU: The big three, with time, have transformed themselves into multicultural, multibrand conglomerates. While it is difficult to generalize, managers coming into the industry from outside tend to be more effective whenjoininglarger businesses than smaller ones. Culturally and in other ways, it is easier for larger
companies to assimilate outsiders, but that is not to say that smaller companies could not benefit greatly from an infusion ofleadership talent with experience of different sectors and global markets. The challenge is to find leaders who possess a high level of sensitivity and who recognize the importance of present ng the inherent value of abrand.

International versus local: The

industry is in a state offlux and is undecided. There is little consensus, even from an academic point of view, on how to modernize the luxury industry. Those who defend exclusivity and brand coherence are equally passionate about adapting to, and meeting the needs of, emerging markets. Some state that local distribution will be the key to success, and that new ways of doing business (such as going digital and e-commerce) are critical, while still arguing against employing mass- market tactics for fear of diluting that sense of exclusivity and even opulence that is the very hallmark ofluxuiy.

Thus, where can one find this manager, the leader who is best equipped to handle the seemingly contradictory elements of developing

 

new markets, opening up new distribution channels, adapting to diverse cultural expectations, and preserving exclusivity and brand coherence, while operating within a far tougher, more competitive commercial environment?

Manage talent in the digital era or stickto the traditional: The

competencies required for the digital and the traditional luxury world are notthe same. To be ambidextrous is a key challenge. Burberry and Polo Raph Lauren have embraced the digital world with ease, while many are still struggling. For example, Burberry is often recognized as a digital luxury leader. With two enthusiastic advocates steeringthe company, CEO Angela Ahrendts and chief creative officer Christopher Bailey (nowpromoted to CEO, since Angela Ahrendts left for Apple in 2014), the firm has intertwined creativity, technology, and management in a way that has helped generate consumer interest in Burberry’s products via its digital projects. Through their Art of the Trench crowd-sourcing site, a three- dimensional Iivestream show, and, most recently, an interactive digital ad campaign, Ahrendts and Bailey have facilitated collaboration across several functional departments, making everyone work together in the name of digital innovation.

Thus the ambidextrous luxury manager needs to have a portfolio of skill-sets that will make him or her comfortable in this industry… As in all industries, one size does not fit all. The luxury industry has witnessed a sea of change in the internal and the external environment during the past 20 years, and the styles of top management have evolved over that time. The specificities pertaining to these changes had profound implications on the styles of management and governance ofthese companies. 33

With permission from Wiley

THE ‘MrOF LUXURY

Why luxury brand managers require a portfolio of skillset to work in the industry

INDUSTRYARE OFTENpeople in the luxury

referred to as homoluxus. The homoluxus should always knowthatthe life span ofluxury brands is varied and totally surprising. The homoluxus is convinced that he is eternal and nothing can happen, protected by his brand, sure that he is and will remain successful. He is applauded in his social circles. He can see his own name or the name of the company he leads, in the best streets of all the cities, he is thrilled to speak about his brand, is in all the magazines—his image is seen everywhere, usually with charming ladies and stars, dressed in ablacktie. How can he be afraid of anything? …Heisnotobsessedwith money but with the product and its quality.. He is not in ahuny, has time and he is not under pressure; he is zenlike in his focus, and has nothing to demonstrate. Does he still exist in the luxury forest or is he a dinosaur?

The creator: One concocts
extraordinary olive oil that the creator presents in beautiful, elegant bottles. The creator intends to sell them in luxury delis, and he will no doubt succeed. The creator has the energy, the taste, the talent, and the patience that ittakes. Another loves jewelry, makes one-off pieces with stones that she finds from who knows where. Another mixes colors, matches fabrics, and makes necklaces of unusual shapes.

One creator was adesigner, but his former luxury house laid him off after closingits doors. He opened alittle boutique, but it didn’t work; he wasn’t a good manager. He is a creator, not an accountant. Then there’s the one who makes sandals and the other one who makes dresses. They are all in luxury’s waiting room. They struggle. Creators often have plenty of illusions. Mistakenly, they think that luxury designers can do anythingtheylike!

A creator’s freedom has to be based on rules andknowledge; otherwise, nothing good can come of it That said, the golden rule in real luxury is to

The road to

LUXURY

The Evolution, Markets,
and Strategies of

LUXURYBRANDMANAGEMENT

THE ROAD TO LUXURY: The Evolution, Markets and Strate­gies of Luxury Brand Management

AshokSom, Christian

Blanckaert

WILEY

464 pages; Rs 599

make sure creators have no managerial responsibilities, and are given a free rein. The truth is that luxury can only work if the products are unexpected and unplanned. If design becomes standardized, there is no chance of surprising the customers and making a sale. Producing articles that resemble others, that have afeel of“deja vu,” would doom the luxury market to failure. Creation goes beyond a system or habits. The organization of aluxury house has to allowforthis.

Of course, creators can be unbearable

megalomaniacs, demanding and obnoxious. But it’s in their nature, and the rest of us just have to accept that.

Luxury needs entertainers. Luxury could not exist without artists. Creators drive luxury and so sometimes reason must giveway to imagination, reality gives way to the irrational, and truth succumbs to dreams! That’s what luxury is all about Atleast, that’s howit should be. What is the common thread running between Gabrielle Chanel, Hubert de Givenchy, Yves Saint Laurent, and Christian Dior? Are all the names
of designers or brands? This is one of those rare questions where one can never E>e wrong. These are names of designers who gave their names to their brands. In the earlier days ofluxuiy, the designer stoodforthe brand. Each brand displayed the eccentricities, the enigma, and the individuality of the designer it stoodfor. What remains importantto date is that the designer gave identity to the brand, making the designer and the brand inseparable. Thus we were in a regime, where the “Creator was the Controller.” But can the creators actually

 

AFTER HOURS

BOOKEXTRACT

run aglobal business or manage the value chain ofthe business? What will happen after they leave the brand? And when they leave, most important, who is going to sell their brand?

.. .two decades ago, the luxury indus­try model was almost completely dominated bythe family business. However, the rivalry between Bernard Arnault (LVMH) and Henry Racamier created a historic structural shift within the industry as each aimed for market control through growth and acquisition. As a consequence, the industry started consolidating, andfamily houses that could not survive were absorbed within the multibrand conglomerate, except for a select group of French and Italian companies such as Hermes, Chanel (Wertheimer Family), Armani, Prada and Tod’s to name a few. These tectonic shifts from the family business model to corporatization pushed the luxury industry away from its historic style ofmanagementasthekeyfactors of success become finance instead of fam­ily, and the focus shifted to the colossal conglomerate instead ofthe small, art­isan business, which became “inadeq- quate” for a global business strategy.

To understand the management styles of the managers in the luxury industry, we need to dwell briefly on the role of the managers—and the usual typology of the management styles.

The Ambidextrous Luxury Manager: Combining the right and the left brain:

.. .Managers in the luxury industry are required to understand the unique properties ofthe luxury experience, manage highly creative people, apply tough management disciplines, and be sensitive to the cultural nuances involved in running a global business. Speed versus time: The manager has to grapple with timelessness and profitability. For example, Hermes and Chanel might be of the opinion that they are not looking at short-term profits, yet during every quarter they have to keep an eye on the revenues, which in turn will determine their

growth and investment plan. The focus on profitability is now extending across the portfolio to highly prestigious, loss-making brands, and the introduction of International Financial Reporting Structures is forcing greater transparency in financial reporting by large groups. The speed of growth and the time required have a direct bearing on the talent management of the companies. On one hand they have to nurture talent that understands and communicates the story of the brand, the product characteristics, timelessness, quality, and service of the luxury business, while on the other hand they have to cater to the speed of marketing, sales, and after-sales in international markets.

Everywhere or not: The luxury man­ager has to understand French and Italian savoirfaire while selling prod­ucts in Shenzhen, Sao Paulo, Singapore, or San Francisco. Dispatching expatriates to manage stores is one realistic option, although the expatriates more often than not do not speak the local language. The expatriate manager on his or her “colonizing” mission of emerging markets is probably well equipped but finds himself or herself short of understanding the local nuances and can be afailure. Research from Martens & Heads shows that not more than 15 percent of the actual operating CEOs are from the local emerging market. Also Maxine Martens, CEO ofMartens & Heads, rightly questions, “How many French or Italian luxury firms that do 30 percent of their business in Asia have 30 percent of their top management from Asia?” Some propose that with globalization and corporatization, the luxury industry should also follow the path of the global corporation. They should also hire more locals in the emerging markets and bring more emerging markets professionals to the HQ.

Internal versus external: Should the ambidextrous manager be found internally or should she be headhunted

externally? Research shows that there is a trend

SMART CITIES AHEAD

The time has come to take urbanization as an opportunity and not as a challenge. We need to evolve qualitative and quantitative index based urban solutions, which will result in holistic growth leading to more jobs and technological breakthroughs, innovation, thus enabling, the Prime Minister’s vision of creating 100 smart cities and providing housing for all with amenities and utilities along with quality of life. – GRK Reddy, Chairman and Managing Director, MARG Group

A rigorous, concerted, young and collaborative effort will be required by all the stakeholders for the development of smart cities”- was the message which came from the Symposium on Sustainable Smart Cities organized on the 16th of March 2015, Monday at the India Habitat Center, New Delhi. Welcoming all guests were Mr. GRK Reddy (President of the Symposium), Shri Uday Gadkari, Presiden, COA, Shri Prakash Deshmukh, President, 11A who participated throughout the conference.

The Symposium was inaugurated by the Minister of Urban Development, Shri Venkaiah Naidu. The opening session was also attended by the Minister of State for Science and Technology Shri Y S Chowdary who spoke on the theme of’Self Contain, Self Sustain’.

The Symposium coincided with the launch of a book on Smart Cities named ‘Smart and Human- Building Cities of Wisdom’. The book, published by Harper Collins, has been authored by Mr. GRK Reddy and Srijan Pal Singh. Introducing the World’s Largest Painting on the theme of Smart Cities made in January at MARG Institute of Design and Architecture Swarnabhoomi (MIDAS) at MARG Swarnabhoomi, during the 57th Annual Convention of National Association of Students of

Architecture (NASA), also emphasized on why youth centric models of transformation cities is needed.

The afternoon session of the Symposium was attended by former President of India, Dr. APJ Abdul Kalam. He formulated an ’11-point charter for Smart Habitations” and advocated for a Smart Habitation Commission. He spoke abouf the need for habitations where rural and urban divide is reduced. Dr. Kalam also launched the special mobile application to measure the quality of urban life index from users. The evening session of the Symposium was attended by Founder of the Art of Living, Sri Sri Ravishankar. He emphasized on incorporating the idea of ‘Vasudhaiva Kutumbakam- Whole World is One Family’ into the development of Smart City.

The Symposium included several other experts who presented their views. They included Mr. Uday Gadkari, Mr. Getamber Anand, Mr. Prakash Deshmukh, Ms. Juliet Jiang, Dr. Arbind Prasad, Mr. Ranbir Saran Das, Mr. Akhtar Chauhan, Mr. Jaijit Bhattacharya, Mr. Satish Magar, Prof. Prasanna Desai, Dr. Ashok Patil, Mr. Anurag Batra, Mr. Vijay Sharma and Mr. DK Hari. The Symposium was organized by Habcraft and MARG Swarnabhoomi. The partner organizations were Council of Architecture (COA), Indian Institute of Architects (IIA), CREDAI and FICCI.

To take the Smart Cities initiative further, MIDAS Institute of Smart City Planning and Management (MISPM, www.mispm.in) is starting a PG Diploma course on Smart City Planning. Inspired by numerous case studies and sustainable planning experiences across the world, the research team has collated urban analytics developed a suitable program to suit the Indian context under the banner of MISPM. The program is titled PG Diploma in Smart City Planning and Management.

What Customers Want

* OV VENKATRAMAN S.

Theworldofman-

AGEMENTBOOKS,

which is inundated with many titles on the creation, sustenance and evolution of value in enterprises and business, got another member in its fraternity. Authors Alex­ander Osterwalder, Yves Pigneur, GregBernarda, Alan Smith (co-author and art direction) and Trish Papadakos (design) have created this handbook, as a perfect sequel to their Business Model Gen­eration. The authors call themselves the Strategyzer crew, as they run an epony­mous website.

The authors had intro­duced the nine building blocks: customer seg­ments, value proposition, channels, customer rela­tionships, revenue streams,

VALUE PROPOSI­TION DESIGN Alex Osterwalder et. al

WILEY

290 pages; Rs 699

key resources, key activi­ties, key partnerships, and cost structure, as part of their the business genera­tion model (BGM) canvas. While the BGM canvas creates value for your busi­ness, the value proposition (VP) canvas helps you cre­ate value for your custom­ers. The authors claim the VP canvas is a plug-in tool to the business model (BM) canvas and just like the BM canvas allows you to visualise business models, the VP canvas allows you

to visualise value proposi­tions in greater detail. Both canvases work hand in hand and this is especially valid as value propositions and customer segments live inside the framework of the BM canvas and expa­tiate upon it.

The authors approach starts from the VP canvas, which sets the stage for further design thinking leading to testing and followed with monitor­ing of the metrics lead­ing to evolution of the

value proposition. The design, test and evolution cycle is an iterative and never-ending process in such a way that the value proposition is always kept relevant to customers. By observing and identifying the customer’s task and understanding their needs and their pains (problems) and gains (outcomes or benefits), design thinkers need to develop a product or a service that delivers value. And this is one of the best ways of achieving the product-market fit.

Though the colourful diagrams and emoticons make the text engaging, overdose of it throughout the book leads to some distractions as some of the emoticons are not exactly relevant. The book is pri­marily meant for practitio­ners who can make exten­sive use of frameworks and guidelines as part of their design thinking. 

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