Amit Paranjape’s Blog

We need more ISROs, and more government led strategic R&D investments

Posted in Current Affairs, Science & Technology by Amit Paranjape on September 26, 2016

Dr. K. Radhakrishnan, the former Chairman of ISRO, spoke at the 5th Foundation Day of Pune International Center in Pune this Saturday. It was an excellent lecture, covering many details around ISRO’s great progress and achievements, and future plans. ISRO has made tremendous strides over the past four decades in R&D led innovation and has succeeded in developing key technologies such as the cryogenic propulsion system. One thing that stood out in my mind during the lecture was the extent of private industry participation in R&D and manufacturing, and the manufacturing ecosystem.

pslv-way-to-launchpad-vab

PSLV (image credit: ISRO)

Dr. Radhakrishnan mentioned that 80% of the value addition of ISRO’s workhorse launcher, the ‘Polar Satellite Launch Vehicle’ (PSLV) comes from private industry. (Note – the PSLV is one of the most reliable space launch platforms in the world, with 34 successful launches in a row – at one of the lowest launch cost per payload weight).

These private industry contributions for building the PSLV come from over 120 large, medium and small companies. ISRO acts as the designer and system integrator, and assembles the final rocket at Satish Dhawan Space Center, Sriharikota. I had known about the industry participation, but the 80% number was indeed surprising. It was great to note the private sector’s role in India’s space program. ISRO is thus not only delivering great rockets and satellites technology, but also helping build an aerospace R&D and manufacturing ecosystem in India. This is critical. Over the past 50 years, NASA has played a key role in driving the development of a similar ecosystem in U.S. The advances made in space tech around materials, propulsion, guidance, navigation and other areas have many direct and indirect technology benefits in other sectors. ISRO should follow a similar example.

For the ‘Make in India’ initiative to succeed, we need high quality R&D investments in the public and private sector. R&D investments as a percent of GDP is an important metric and has a good correlation with the overall strength of the economy. South Korea (highest R&D/GDP in the world) is a great example. It invests 4.3% of its GDP in R&D. U.S. invests 2.7% (highest in absolute terms, given their GDP). China invests 2.1%. India invests only 0.85%.

Government led R&D is an important component of the total R&D spending in a country. Let’s look at the U.S. example. Here is a recent tweet by Bill Gates.

bill-gates-tweet-govt-rd

The tweet references a link from U.S. Department of Energy (www.energy.gov), where Bill Gates is drawing attention to this:

“Research and development (R&D) is the unsung hero of American innovation. Government-funded R&D spurs new industries, creates jobs and helps us tackle our greatest challenges. Decades ago, that challenge was the space race; today, it is climate change.”

While we regularly talk about the R&D in private sector U.S. companies such as Google, Apple, etc., what is often ignored is the huge investments made by the U.S. government in this area. NASA and U.S. Department of Defense are excellent examples. Another one is the agency that funds important research in U.S. Universities – NSF (National Science Foundation). Many of today’s great technologies and innovations were built on this R&D Foundation laid by the U.S. government R&D investments. Perhaps the best example of such an innovation is the ‘internet’. Just like U.S., France too has made many strategic R&D investments in areas related to aerospace & defense, energy and computing technologies.

Often government led R&D is also driven by a country’s strategic interests. This is very much applicable to India as well. This is one more important driver for government led R&D investments (and a topic of a separate article).

As discussed earlier, private R&D and manufacturing can build on top of the government led R&D initiatives. Yes, there are examples of wasteful expenditures, especially in the public sector. For one successful ISRO, there are counter examples as well. However, this should not deter the policy makers from allocating more R&D investments in strategic areas. It is important to study what has worked at ISRO, and then to institutionalize these processes in other R&D organizations. (This was one process related question, I wanted to ask Dr. Radhakrishnan yesterday, but we were short on time at the lecture).

ISRO represents one of the best examples (not just in India, but in the world) of effective and efficient R&D. The Mars Orbiter Mission ‘Mangalyaan’ is a great example. ISRO was able to deliver this incredible project for a fraction of the cost (around 10%) of what NASA spent on a similar project.

India’s goal should be create more ISRO like organizations in other areas – R&D driven organizations that develop important strategic and commercial products – and also help build a private R&D and manufacturing ecosystems around them. As a product/technology matures, the role of the private sector can grow. Where possible (in terms of tech capabilities), the private sector can also play an upfront role in collaborating on new technology development.

 

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A Visit To GE India’s John F. Welch Technology Center – Watching Innovation In Action

Posted in Current Affairs, Science & Technology by Amit Paranjape on September 6, 2015

I visited the John F. Welch Technology Center of GE in Bangalore this weekend. They were celebrating the center’s 15th anniversary with a ‘Tech Mela’. Solutions from the various business units at GE were showcased. I have admired GE as a company, and their previous legendary chairman Jack Welch (I would highly recommend reading Jack Welch’s books about his management philosophy). This visit was a good opportunity for me the get a better understanding of their work.

The center (also referred to as GE ITC: GE India Technology Center) has over 5,000 R&D professionals working across healthcare, aircraft engines, transportation, energy and other GE verticals. This is the largest multi-disciplinary R&D center of GE in the world and more than 50% of the employees here have Masters or PhD degrees.  The GE ITC is involved in supporting GE globally, as well as focusing on local/regional solutions for India and the emerging market.

Good discussion with Munesh Makhija (Head of GE, ITC)

Good discussion with Munesh Makhija (Head of GE, ITC)

I got a chance to interact with the head of GE ITC, Munesh Makhija (Managing Director, GE India Technology Centre Chief Technology Officer, GE South Asia). Here is a video of our interesting discussion (https://www.facebook.com/ge.tech.india/videos/vb.480156825343034/1075515979140446/?type=2&theater). It was good to hear about the overall focus and vision for the center, as well as their day to day activities and challenges. Hiring top talent is a challenge for every company and GE ITC is no different. Today, many top engineers want to work in software (and in startups), and this is a big hiring challenge. Along with their presence in Bangalore and Hyderabad, GE ITC is also trying to tap into the advanced manufacturing talent in Pune where they have a brand new state-of-the-art multi-modal manufacturing plant (inaugurated earlier this year). I suggested to Munesh that GE should seriously consider expanding their R&D activities in Pune. Pune is the biggest center for manufacturing in India and hosts many advanced manufacturing capabilities across large and SME companies, including a large talent pool.

Healthcare is one of the biggest groups at the GE ITC and is involved in developing solutions across imaging, maternal health, critical care, surgery and other areas. Solutions for the global market, as well as India/Emerging Market are developed here. We got an overview of these solutions from Shyam Rajan, CTO, GE Healthcare India.

A new latest PET/MRI scanner was on display (IMAGE). This scanner can simultaneously carry out the PET and MRI scans of a patient. A low-cost, award winning CT scanner was also showcased, specifically targeted for the developing markets, where cost and space are big issues.

PET/MRI scanner

PET/MRI scanner

Portable (Tablet) Ultrasound

Portable (Tablet) Ultrasound

Evolution of the Jet Engine

Evolution of the Jet Engine

GE Jet Engines

GE Jet Engines

Some of the other technology areas on display included:

Transportation – Diesel Locomotives, Fleet Management, Marine Engines

Energy – Oil & Gas, Wind Power

Gas Turbine Power Generation, Electricity Distribution, Smart Grids

Aircraft Engines
It is very interesting to note the diverse engineering and technology areas that GE is involved in. They are addressing the core problems in energy, transportation and healthcare. It was good visiting these various solution areas and learning more about the solutions and tech challenges involved. The kinds of problems being addressed include machine design, modeling & simulation, advanced materials, hi-tech manufacturing, data analytics, big-data, software programming, signal/image processing, structural design, electronics control systems, and many more.

I would have liked to see more of the aircraft engine technology on display. Unfortunately (I guess due to IP/competitive restrictions) couldn’t see a lot in this area.
I also got a chance to interact with Sukla Chandra General Manager, GE Global Research, Bangalore Director-Legal, Patents & Analytics Centre of Excellence. Patents are a big focus area for GE, and Sukla’s team is responsible for providing strategic IP support to GE Global Research and several other GE businesses. In addition the patents center, Sukla also co-leads the GE Women’s Network Initiatives for India.  The patents legacy of GE goes all the way back to the founder, Thomas Edison (who is credited with more than 1000 patents).

Top GE Inventors - includes Thomas Edison (1000+ patents

Top GE Inventors – includes Thomas Edison (1000+ patents

As part of the Tech Mela Event, GE released an info-graphic on their work in India (good summary): http://www.slideshare.net/GE_India/ge-reiterates-its-commitment-to-design-make-in-india-52449008

An Insider’s View Into Consumer Goods Supply Chain

Posted in Information Technology, Supply Chain Management by Amit Paranjape on December 7, 2008

 

I recently wrote an article  for PuneTech on the inner workings of a consumer goods supply chain, and how various business processes and software solutions work in concert in dealing with various challenges.

 

This is a story of ‘Star Glucose Biscuits’, an iconic brand manufactured by Star Biscuits India. The story starts off with a packet of ‘Star Glucose Biscuits’ in ‘SuperMart’ on FC Road in Pune, and traces the journey from the factory through the supply chain to the store. Various real world business challenges are thrown into the mix, as we see if the biscuits reach the customer in time for special T20 World Cup Promotion.

 

 

To access the original article, please click here. This is a slightly longer article and goes into the depth of explaining multiple business processes. Please note that this article’s primary audience consists of people who are not intimately familiar with Supply Chain Management. 

 

Feedback, comments and suggestions are welcome.

 

 

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