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Davos and after – beyond the conversations

Nandan M. Nilekani
Co-Chairman, Infosys Technologies Limited
Davos, January 26, 2008

Taking time off for a short post near the end of a busy Davos schedule.
It is becoming clear that even as we work together to address global issues, the recent events in the capital markets show that the world is becoming increasingly multi-polar.

Growth is now more distributed and broad-based with the emergence of multiple centers of growth spearheaded by countries such as India and China. As emerging economies continue to grow, they must be involved in the process of global governance. We need a more equitable representation of countries in global institutions for a constructive discussion on issues of trade and the environment. 
At Davos, we are seeing the interconnectedness of our world across our panel discussions. Take, for instance, the dialogue on clean energy. We discussed bio-fuels as one of the alternatives. However, bio-fuels as a solution need to be seen in the light of sugarcane, corn and maize – a repository of agricultural produce – becoming sources of energy. This will affect the agrarian economy, the labor situation and burden the food supply chain.

But I think there is a growing realization that while there is the issue of equity with the developed nations about who contributes how much to the transition to a low-carbon economy, there is also a realization that it is in India's own strategic interest – since India is at a critical point of growth – to provide direction to that growth and create a system of incentives to create a low-carbon economy.
All these conversations we have at Davos have a subliminal effect – we absorb them, take them with us, assimilate them and revitalize our intellectual toolkit… I think that then starts flowing into academic pursuits, into business decisions, policy decisions…  They manifest in the most unexpected ways.

India, Israel and lessons on innovation

Kris Gopalakrishnan
CEO & MD, Infosys Technologies Limited
January 26, 2008

On the Saturday here at Davos, I sense an Indian flavor in the atmosphere. Maybe because it’s Republic Day in India. Or because everyone here is still talking about the India-themed dinner they enjoyed on Friday.

Yesterday Intel’s Craig Barrett spoke about how companies and countries can use technology for competitive advantage. The discussion then went on to India, how it has created an optimistic environment, and how Indian companies are now the challengers – they are going multinational, they are globally recognized, and they are leading global M&As.

But before we pat our own backs, let’s not forget Israel.

Yehuda Bronicki of Amdocs shared a very inspiring perspective on his country’s information technology scenario. Now, we know that Israel is second only to the US in having the largest number of companies listed on the NASDAQ. Many of them are smaller companies driven by a determined spirit of entrepreneurship, and most important, they have the backing of the government. The Israel story shows that companies, irrespective of size, can compete on a global scale if they focus on innovation. There’s a lesson here for India.

Microsoft’s Craig Mundie made a case for developing an ecosystem where companies can play a proactive role in mentoring talent through initiatives with educational institutions. It reminds me of a fascinating session on Web 2.0 that I attended at Davos last year. One year down the line, it is becoming clear that Web 2.0 can enable collaboration between companies and universities. We see that happening in some way already in India and it will be interesting to see how it impacts the global talent pool.

My interactions at Davos reaffirm my belief that the traditional hierarchy of companies is being replaced by networks. Networks do not obey strict organizational boundaries. We now have partners and vendors ideating together with companies. It is in such a scenario that innovation truly begins.

Simplicity – the hardest challenge for convergence?

Kris Gopalakrishnan
CEO & MD, Infosys Technologies Limited
Davos, January 25, 2008

On Thursday morning, I participated in a CNBC panel discussion with futurists Paul Saffo and Peter Schwartz. We covered multiple scenarios ranging from the energy efficiency of tomorrow’s automobiles to the way news will be reported in the future. What’s seemed really significant to me is that a majority of the participants had a positive outlook of the world in 2020.
 
In the same vein, the session on Mobile Internet emphasized the point that without simplicity and user-friendliness we cannot ensure widespread adoption of applications. With a multitude of devices competing in the market, we must work towards standardizing an easy-to-use browser or application development platform. If we succeed, the rate of adoption will grow manifold.
 
Innovation must get ‘personal’
Customer experience has been spoken about for a long time but experiences are becoming more and more relevant in the way customers choose products and services. With the consumer at the center of this evolution, personalization and user experience are key differentiators.
 
The form factor has limitations, so we must focus on the user experience. We need to design applications in ways that are more sensitive to user needs. We need to evolve ways and means to deliver applications conveniently and offer fulfilling experiences.
 
Innovation from the inside out
It is clear that we live in an era of shrinking product lifecycles, where products get obsolete faster than it takes to make them. To meet customer demands, I believe companies need to introduce new offerings in shorter time spans and earn customer loyalty not just by providing better service but through faster innovation.
 
One route to this is through co-creating with customers and vendor-partners. But internally, how do you create innovation hubs within the company? How do you capitalize on human capital in running the company? In other words, how do you internalize the power of social networks?
 
That’s something for us to think about…
 

How about a non-carbon global economy?

Nandan M. Nilekani
Co-Chairman, Infosys Technologies Limited
Davos, January 25, 2008

Yesterday in Davos, we saw a great deal of discussion around climate change and energy. Yes, there is a tremendous amount of innovation happening in various kinds of solutions related to efficiency, new sources of energy, etc. But my belief is that if we want to bring about real change, we need a global agreement on capping carbon, one that is equitable to both developing and developed countries. If we don’t succeed here, we won’t really be able to implement an effective system globally and it won’t drive incentives towards creating a non-carbon global economy.

Developing countries must have their right to develop
People in India and China are looking for a better life and mobility and higher incomes, and no one can deny them those aspirations. They are entitled to them like everybody else. What we have to consider is that on a per capita basis, India consumes 1.3 Gt of carbon per person compared to the US figure of 6 Gt.

The global consensus needs to take this into account. The agreement should be fair to developing nations without compromising their growth. We need to arrive at a formula that is amenable to everyone. At the same time, developing countries must take proactive steps to bring in energy efficiency and explore renewable sources of energy.

From coal to coalition
Clean energy presents a big opportunity – you may even call it a profitable opportunity. The technology of generating and distributing power has not changed dramatically for generations. IT can make energy transmission and distribution more efficient. It can provide solutions for developing and managing smart grids on the lines of the infrastructure of the Internet.

To make this happen, we need a concerted private-public partnership. While utility and IT companies can work together to develop new technology solutions to optimize energy and innovate in energy distribution, governments must fulfill their part of the bargain by creating suitable policy frameworks.

Is the economy distracting us from climate change?

Nandan M. Nilekani
Co-Chairman, Infosys Technologies Limited

Davos, January 24, 2008

It’s nice to be back in Davos. I have been talking to delegates on a wide range of issues. The conversation here is dominated by a possible recession in the U.S. and a slowdown in the world economy. I just hope our preoccupation with the current financial situation does not distract us from climate change.

The carbon conundrum
Today, the atmospheric concentration of CO2 is 380 parts per million (ppm), up from 280 ppm at the beginning of the industrial revolution. Even as emerging economies achieve a higher standard of living, they exert increasing pressure on the world’s resources. We are consuming resources 25% faster than they can be replaced. We need to focus our efforts and be willing to make investments in our journey towards clean energy. 

Bearing the cost of development
Ironically, while there is excess consumption of resources in certain parts of the world, many regions, particularly in the developing world, lack potable water and sanitation services. More than 1 billion people do not have access to drinking water and 2.6 billion people do not have adequate sanitation.

Action notebook
I spoke to a few people from the oil industry and they are convinced about the inevitability of a ‘carbon cost’ in the next five to ten years and they are already working that cost into their business models and investment decisions. If we really want a big push towards clean energy we must create incentives to migrate to non-carbon technologies.

I believe Information Technology can evolve sustainable models of development as energy efficiency is intimately related to technology. IT can help design smart grid solutions for utilities. With thoughtful engineering we can help design green buildings that harvest sunlight.

First, a change of attitude
Infosys can share its expertise in technology and business transformation to help companies become eco-friendly. First, by leading by example and showing that it can be done. Second, by exploring how we can use our knowledge to drive companies to go green.

We have over 80,000 employees working in development centers around the world. We are encouraging them to reduce their carbon footprint. Recently, we urged our investors to opt for paperless communication. I believe these small steps will catalyze the most significant change – a change of attitude.

Later today, I look forward to participating in a discussion on ‘Green IT’ and some fruitful discussions on climate change over dinner. If we channel our collective energies in the right direction, the environment can benefit from our growth and progress.

Has innovation finally gone democratic?

Kris Gopalakrishnan

CEO & MD, Infosys Technologies Limited

Innovation resonates in every discussion at the World Economic Forum. You may argue that it is a case of old wine in a new bottle. Agreed, it was always on the radar of companies, but now there is a refreshing change in the approach to innovation.

The opening session had Dr. Rajendra Pachauri speaking on sustainability and President Hamid Karzai discussing terrorism. These are pressing issues and I am glad we are making room for them.

But what’s significant about the mood at Davos this year is there is a growing realization that we need to collaborate more closely and innovate faster to meet the challenges of the 21st century.

Looking beyond the enterprise

Traditional R&D was monolithic and vertically integrated. However, the R&D lab as we once knew it is history. The Flat World has transformed innovation into an open, global and democratic process. As organizational hierarchies are flattened, we find that most of the nimbler organizations are transforming into network-based organizations. Today’s global company looks beyond the enterprise to think out-of-the-box. It encourages meritocracy and provides opportunities to tap into a global pool of talent.

The challenge from emerging economies

Consequently, emerging economies have a new role to play – that of challengers. As John Hagel, III and John Seely Brown wrote in their incisive analysis on ‘Innovation Blowback’, the fact that emerging markets are generating disruptive product and service innovations is itself a warning call to companies in the developed world to urgently reposition themselves to deal with the offshore challenge.

A dynamic innovation ecosystem

A collaboration of partners with different types of expertise instills a regulatory mechanism – a system of checks and balances – that mitigates risk and increases the potential for success. I believe a dynamic innovation ecosystem driven by meticulous planning and execution offers an alternative to corporate mergers and realizes compelling innovative value.

With this in mind, I am looking forward to the session on ‘Exploring the Implications of the Mobile Internet’ today.

Blogger Robert Scoble on coming to Davos

Watch Robert Scoble's video blog interview with Lance Knobel, the Forum's Special Adviser on the Annual Meeting Programme, 1999-2000, on how to get the best out of Davos.  Scoble will be attending Davos for the first time in 2008.

Bloggers answer the Davos Question

17/12/07
Posted by Oliver Cusworth

The blogosphere is already starting to grapple with the Davos Question 2008. Several prominent names have posted, giving their answers to “What one thing do you think that countries, companies or individuals must do to make the world a better place in 2008?”. Less than a week after it was launched, the Davos Conversation video was the 30^th most watched on YouTube with almost half a million viewers.
Forbes

The Google Blog

Loic Lemeur

Robert Scoble

Social and economic inclusion key issue for Annual Meeting

K. Vaman Kamath, CEO, ICICI Bank and one of the Co-Chairs for the Annual Meeting in Davos in January says social and economic inclusion is key for continued future global development.  "The top issue in the world today is inclusiveness,” he said.

Contribute to the Davos Open Forum programme

The World Economic Forum has published the entire programme of the Open Forum 2008 in Davos. The Open Forum, co-organized by the World Economic Forum and the Federation of Swiss Protestant Churches, offers a public debate on globalization and its consequences. The programme is available on a wiki-style webpage where you can comment on the sessions or post questions to be discussed by the panel.

http://www.forumblog.org/openforum/

Closing the Global Gender Gap

Sweden (1), Norway (2), Finland (3) and Iceland (4) once again top the rankings in the latest Global Gender Gap Report. All countries in the top 20 made progress relative to their scores last year – some more so than others. Latvia (13) and Lithuania (14) made the biggest advances among the top 20, gaining six and seven places respectively, driven by smaller gender gaps in labour force participation and wages. The Report covers a total of 128 countries, representing over 90% of the world’s population.

Click on the links in the right hand column to learn more about the Report; the rankings (PDF I Excel); country profiles; photos and the press release.

Web 2.0 star Peter Oakley (Geriatric1927) comments on his invitation to Davos

World Economic Forum Inaugural Annual Meeting of the New Champions

  More than 1,700 participants from 90 countries, including Premier Wen Jiabao of China, are participating in the World Economic Forum's Inaugural Annual Meeting of the New Champions, in Dalian, China. The meeting runs from 6-8 September and will focus on the role the new generation of fast-emerging multinational companies – the New Champions – are playing in substantially changing the global business landscape.

To read news from the event, watch webcasts of sessions and download photos, visit www.weforum.org/dalian

Watch sessions in English:

Watch sessions in Chinese:

Peres: Israel to Respond to Arab Peace Initiative “As Soon As Possible”

Israel will respond “as soon as possible” to the Arab peace initiative which was reaffirmed by the Arab League at their summit in Riyadh earlier this year, Israeli Vice-Prime Minister Shimon Peres told participants at the World Economic Forum on the Middle East. On the podium with Peres, Saeb Erekat, Chief Negotiator for the Palestinian National Authority, called on Israel to accept the Arab peace initiative.

Iraqi, US and Iranian leaders discuss Iraq’s future

A unified, stable Iraq would be better for everyone, said Mohammad Larijani, Director, Institute for Studies in Theoretical Physics and Mathematics of Iran, in a session on the final day of the World Economic Forum on the Middle East. He said he hoped that the upcoming talks between the US and Iran could ease tensions and encourage deeper cooperation. Orrin Hatch, Senator from Utah (Republican), USA, expressed Washington’s desire to work together to stabilize Iraq and the entire region. “We need to reach out to each other,” Hatch said. While the US has made many mistakes, he acknowledged, “our intentions are honorable.”