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ICT Leverage of Indian Business in World Economy

Dr. RAVI PRATAP SINGH Dr. ANAND SENGUPTA

Professors of Commerce & FacultyBusi Admn.

D.D.U. Gorakhpur University

Gorakhpur, INDIA

rp_singh20@yahoo.co.in rudraanand61_gkp@yahoo.co.in

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The Current Worldwide Depression

Exposed the inherent weaknesses of our policies and structures which are quite lop-sided,

disintegrated, biased and imbalanced.

Jolted the economies of the world, the rich ones in particular.

A prosperous country like the USA (managed in best possible way by the so called worlds

best managers, technocrats and professionals from Harward, MIT, Stanford, Kellogs and so

on & so forth) has been unable to overcome it through its own economic policies and

perforced to resort to threatening attitude frequently towards the other trading nations like

Japan, China, Iran, South Korea, India, etc. for itsown economic interests anyhow.

Most of the Europe also has become severe victim of this depression.

Our own economy has also been a victim of this downturn.

N R Narayana Murthythe mother of all recessions.

ICT has a catalytic role to play in systemic revival.

Their labour intensive and export-orientated character quite inspiring for other sectors.

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The ObjectiveTo analyze the major relevant developments in the information and communication

technology.

Their direct and indirect (through its linkage with other sectors of the economy) implications

on creativity in economic entities in a recession-prone world economy.

A new Model of performing organization (through a Creativity-Conformity Grid) with

support of

matching technology

mediation of strategic TQM and

vehicle of creativity.

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The Prevalent Attitude

Science cannot be an exclusively intellectual pursuit, but must be relevant economically and

socially.

The hope among some senior scientists and officialsIndia can short-cut the established

path of industrial development and move straight to a knowledge economy.

The agricultural revolution threw up civilisational leaders like India, Egypt and China.

The industrial revolution threw up at least Britain and United States.

Will the information revolution throw up a new leader or leaders, and will India be among

them?

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Three Aspects of Opportunity

(1) The industries like information technology and telecommunications are areas where India

and Indians have shown a surprising amount of skill and creativity.

(2) As jobs become more and more fungible across borders, India's large base of skilled

manpower is finally going to be an advantage. But these 'soft jobs' are subject to heavyfluctuations and uncertainties at present.

(3) An explosion has occurred in the Indian enterprise in the closing years of the 20th century.

Middle-class has woken-up to the entrepreneurial dream and the new, mindware-

related businesses that they are starting are not as dependent on the efficiency of the

government as the old businesses are.

Which brings us to the only stumbling block to what could be India's century is badgovernance.

--Tony Joseph, (2000, p.8) Ex-Editor, Business World

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ECONOMIC DOWNTURN AND THE INDIAN ICT

NASSCOM-McKinsey (2005)

The IT software and services industry is now Indias top exporter, and provides direct

employment to over 1.6 million people (and, indirectly, to 4 times that number). Catalyzed the growth of commercial real estate, automobile, catering, hospitality and

mortgage banking industries.

Contributing to better governance and efficiency, even as it has transformed the image of

India abroad.

The industry making a significant positive impact on the Indian economy and the people of

this country.

World Bank on Knowledge-Based Industries in Indiato improve its competitiveness in the knowledge economy, India must

strengthen the economic and institutional regime

expand access for all to education that meets the needs of the market and encourages

critical thinking

improve the efficiency of public R&D increase private R&D

encourage university-industry linkages

build a dynamic information infrastructure

create a shared vision between government, private sector and civil society on ways to

move forward.

(http://go.worldbank.org/YX6ZVPWUT0, November 21, 2006)

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Earlier computers were procedure oriented sophisticated calculating machines. Present day computers have been and also are being developed on the lines of working of an

intelligent human mind. Object-oriented programming (OOP), artificial intelligence,

neural networks, knowledge systems, expert systems, etc. have become a reality now.

On the pattern of biological cloning indications of development of mechanical babies much

more intelligent, subtle and sophisticated than robots are emerging.

As these intelligent systems (both hardware and software) are expected to work on the linesof intelligent human mind more intelligent and sincere human beings would be needed

to operate these systems.

Need for more developed human beings having sufficient exposure to computers and

automated systems at various levels of management.

But it needn't be a society populated by robots. We will enhance our mental abilities with

external processing power.

A human development programme has to concentrate on such enhancement of mentalabilities in three contexts:

demands of the information technology

demands of quality

demands and challenges of the environment.

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IT AND CHALLENGING ISSUES

Issues like

efficiency (including both profitability and productivity)

quality of services

Competitiveness

(being directly controlled by automated machines)

social obligation, growth, adaptation, etc.

have become equally relevant to all businesses small or large,rural or urban, Indian and foreign.

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The Challenges

A weak physical production structure with a direct jump of the Indian

economy to the services is sure to cap the demand for knowledge,

information and financial services and limit their growth.

A large part of the financial services sector non-productive or under-productive

due to their strategic, structural, procedural and technological weaknesses.

The dualistic nature of the economy.

Ongoing stagflation with depression and liquidity crunch in some sectors

(mostly industries dominated by the ICT & financial companies including

banks) and inflation in the agro-based & commercialized sectors.

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QUALITY CONSCIOUSNESSThe emergence of TQM in combination with strategy orientation has opened many new

vistas of human and organizational development like TCM, TPM, total quality

training, performance management etc.

IT and automated or computerized machines have made the use of better measures of

performance and statistical quality control in respect of even minute processes

possible.

The ICT is the backbone for total management of enterprise resources and processes.

The technological and structural issues are intertwined. They include qualityconsciousness, electronic technologies, competitiveness, BPR, BPO, strategy-

orientation etc.

The strategic TQM(SRQM) paradigm covers

incrementalist perspective

the radical and explosive measures of lean, automated, flexible and agile manufacturing

systems, ERP and innovative capabilities.

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CREATIVITY VS CONFORMITY Conformance ensures current productivity whereas creativity improves the chances of

long-term survival and growth and enhances future productivity.

Conformity supports current performance and that too conditioned to the existing value

system within the organization.

Creativity goes beyond the existing value system (creative people prefer autonomy over

conformance and work to rule).

A creative organization in the short run may have to bear transitional, initial investmentand R&D costs.

As compared to the traditional industries the knowledge intensive industries have to be

more creative to ensure competitive advantage.

But traditional industries are also fast getting converted into knowledge intensive

industries to take advantage of intelligent machines and sophisticated technology.

Creativity requires autonomy and is a pre-requisite for speed in any system.

On the other side, conformity requires norms and standards and is a pre-requisite for

systemic discipline.

But, speed and disciplineboth are an essential pre-requisite for progress of any system.

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CONCLUSION

Dr. A P J Abdul Kalam (2007) on computer vs brain:

Most of the computers of the future and accessories will be micro sized, wearable and will

have wireless communication with each other. Moderately priced PCs capable of performing

about a billion calculations per second within next 10 years. It is predicted that by 2019, thecomputational ability of an ordinary PC would be around 1000 times that of the human brain.

My view is definitely the creativity of the human mind will always be superior to the most

powerful computers in the horizon. Creativity has to be business of IBM and other knowledge

organizations. By the end of this century, there would be strong trend towards convergence of

human thinking with the world of machine intelligence that the human species initially

created.

Despite all advancements and investments in IT, their utilization by the new economy

has been quite wasteful and misdirected leading to the prolonged

depression in the world economy.

Its labor intensive character and capabilities for mass welfare and development

remain largely unutilized so far.

Instead its advantages seem to have been disproportionately cornered by the corporate

economy and consumerist rich sections leading to economic dualism and poorutilization of and wastage of excess capacities in the economy.

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