A Diagnostic Model to Measure Readiness For the Future Production

In order to Manage Shaping the Future Production of Real Estate in India 

Identifying and catalyzing actions to transform production holds the key. Following are some key aspects to be kept in mind before going ahead:

ESTABLISH COMMON FRAMEWORK:

What are the key levers required to effectively transform production systems in light of rapidly emerging technologies?

Establish common framework with consistent, objective criteria to enable global leaders to speak a common language for an increasingly complex topic

ASSESS COUNTRY READINESS:

How well is a country positioned for the future and what are its relative strengths and areas of improvement?

Use a data-driven approach to help leaders assess country readiness for the future production and learn from peer countries

POLICY AND ACTION LEVERS:

What actions should countries prioritize to improve the conditions necessary to transform production systems and advance to the next stage of development?

Identify policy and action levers to help government leaders, industry, academia, and civil society define and implement joint actions to prepare and transition effectively to future realities

ACCELERATE ENGAGEMENT:

What is the best way to catalyze structured dialogue and joint action between government and business leaders?

Accelerate engagement by facilitating multiple stakeholder dialogue, monitoring, and agenda setting and build an enduring community

HOW TO READY OURSELVES FOR FUTURE PRODUCTION CAPABILITIES:

The capability to effectively incorporate emerging technologies into production processes and value chains is done through a data-driven approach using metrics distribution method across the drivers, categories, and sub-categories:

·  Technology & Innovation – Technological advancement and the ability to generate new innovations by accessing Industry Activity; Research Intensity an Available Financing

·  Human Capital – Capacity, education, and agility of the labor force is done through Labor Force Skills; Inclusivity; Migration; Education outcome; Agility & Adaptability

·  Global Trade & Investment – Ability to participate in national & international trade and attract investment through market Linkages; Product Performance; Location Infrastructure; Barriers to Trade; Investment & Capital Flows

·  Institutional Framework – Effectiveness of institutions, rules, regulations, in shepherding technological development and novel businesses through maintaining Quality;
Consistency; Cost control; Certifications & Accreditation through Innovation & Quality Protection

·  Sustainable Resources – Access to resources and sustainable use of resources by minimizing Energy & Input Costs; Air, Climate & Water

·  Demand Environment – Access to demand and structure of consumption by analyzing the Market Size & Structure of Consumption

·  Structure of Production –Complexity and Scaling Value Addition for diversity and sophistication of production as well as the share in the market economy.

HOW TO FOCUS ON INVESTMENTS & MARKET SHARE FOR SCALING BUSINESS:

·  Good Governance which includes Legal Systems, due-diligence, Data Security & protection

·  Skill rules are close relationship between Human Capital, Technology & Innovation and Structure of production

·  Technology

·  Go Green

·  On the Move

ARCHETYPES, WHICH REFLECT RELATIVE POSITIONING FOR THE FUTURE

Need to improve our investment in R&D to improve technology & innovation, for which an ecosystem is needed to drive growth, for which the Key challenges / areas of improvement are

·  Lack of adequate spend on R&D: India spends 0.85% of GDP on R&D versus 2.7% in USA

·  Limited collaboration with academia due to limited research staff (rank 18 among G20) and cumbersome IP rights process

·  “Brain drain” of researchers from India

·  Poor ecosystem for innovation and entrepreneurship: Lack of adequate support in terms of financing opportunities and guidance provided to entrepreneurs

·  Limited awareness of benefits of technology adoption: Technology development and adoption is limited to MNCs and select large manufacturers

We in India are positioned as a Legacy Champion and have clear potential to advance through investment in key areas of our strength. This gives a key advantage in readiness for future production

While India has a favourable demographic dividend, it needs to focus on imparting appropriate skill sets to the upcoming workforce through Human Capital Development and the key challenges are:

·  Limited scale of skill building programs: 10 million new job-seekers a year, current scale of skilling programs is ~50%

·  Outdated technology in training centers: Training in ITIs is basic and conducted using outdated equipment

·  Graduates lack hands-on experience: Engineering programs are very theoretical and not application-based

·  Outdated curriculum: Modern industrial concepts such as industry 4.0 and digital tools not taught in most colleges as part of engineering curriculum

·  Limited female workforce participation: Social policies and infrastructure preventing women from entering the workforce – female workforce participation is 27% in urban areas

Poor regulatory efficiency and inadequate infrastructure continue to be key challenges faced by India’s institutions and the key challenges are:

·  Complex regulatory policies, run by multiple regulators at state/ central level; requires demystification

·  Slow and cumbersome approval processes (e.g. it takes 100 days for setting up a new business vs 3 days in Singapore)

·  Lack of visibility on progress due to manual processes makes it difficult to take business decisions

·  Poor infrastructure across land, water, waste management increases cost for industries entering India, and reduces ease of doing business vs competing nations

·  While support is offered at central/ state level, making basic amenities available at local level is a challenge

Sustainable production is not widely adopted; a combination of awareness building, enforcement and PPP investments needed to drive adoption-

·  Limited focus on end-to-end sustainability; primary focus is on green factories primarily basis mandates or ROI

·  Adoption of sustainable production techniques in India industries is primarily limited to large corporate entities; informal sector has poor compliance

·  Inconsistency in incentives around sustainable practices can also be a deterrent to long term investment

·  Limited collaboration between various stakeholders to design and implement sustainable solutions (e.g. waste management)

SUMMARY:

Creating a favourable ecosystem for demand and attracting investment and improvement along areas like human capital, R&D and institutional framework will help further accelerate growth. This should be the base for the future production readiness.