Emerging economies

ee We are witnessing a reverse trend in innovative solutions from emerging economies making an impact on businesses in the advanced markets. ICICI is India’s second largest bank with an asset base of about US $81 billion (as on March 2010) and over 20 million customers. It is expanding its international business in countries such as the United Kingdom, United States, Germany and Canada through a variety of service delivery channels including internet and mobile banking. Supporting its international growth plan is our universal banking solution, Finacle™.
Our solution enabled ICICI Bank achieve competitive advantage by a rapid roll-out of new products and faster customer service through multiple self-service platforms. The bank is now managing its global operations by delivering rich customer experience across channels, centralizing processing hubs and ushering in automation to excel in a multi-country environment.

Emerging economies now provide global enterprises the opportunity to engage with millions of consumers for new products and services. Enterprises need to re-engineer their business processes and technology platforms for their suitability to build growth momentum in emerging economies. The traditional approach of adopting standardized processes and systems from the developed economies poses significant challenges in these markets. For example, the innovative application of mobile technology and web-based services has led to the development of new products, services and business models for the emerging economies.

Successful enterprises are opening up their innovation processes and are collaborating with complementary ecosystem partners. Enterprises need to nurture and develop their innovation capabilities in emerging economies and not transport and localize the products and services developed elsewhere. Each of the emerging economies needs its own innovation hubs to respond rapidly to the differing needs, maturity and price points. For example, the ability to integrate product lifecycle management and supply chain management data is helping enterprises manage organizational information effectively across the industry value chain.

Enterprises are disaggregating and globalizing their innovation processes. Emerging economies are attractive destinations for smart sourcing because enterprises are moving independent work modules to locations based on factors such as availability of the right talent, cost, consumer proximity and co-location with manufacturing facilities. However, they need to shift the mindset from ‘owning the resources’ to working through networks to leverage the talent and resources available in emerging economies. The new technology and innovation hotspots are the emerging economies. Enterprises need to leverage emerging technologies with the right set of ecosystem partners. Doing so will pay them rich dividends now and in the future.