PROJECT WORK ON MANAGING INNOVATION AND CHANGE

1. PROJECT WORKONMANAGING INNOVATION AND CHANGE BY GROUP-II AT IIM-L

2. Group Members • A.K.Asthana • R. N.Banerjee • S.N.Sahay • M.L.Sood • R.S.Gupta • Amarjit

3. Acknowledgement • We are grateful to Prof.M.Akbar for his valuable guidance for preparation of the project.

4. The opportunity Demand –supply gap

5. Business Existing • Peak demand per day = 1430 MU • = 143 Cr unit • Cost per day @ Rs. 2 p. u.=Rs. 286 Cr • Total for one year =Rs.1 lac Cr (approx ) • Likely transaction by 2012 = Rs. 2 lac Cr

6. INNOVATION • The basic problem will not be the demand and supply but the quality of power would matter • Our opportunity is to secure reliable supply, use national grid and supply initially directly to major customers and then retail consumers. • The Project group has focused on this need and has come up with an idea for direct distribution. • This will work for Power Grid because it has competence and infrastructure to deliver quality power, which other major suppliers do not have.

7. The Value Proposition • We would offer our customers uninterrupted quality supply of power at affordable prices

8. STRATEGY • The entry can be made in phased manner according to geographical areas where demand for quality power is high which will make early financial returns possible. • This can be accomplished through internal resources and competence and better through alliance partners to reduce the risk and implementation time beside complementing our own skills in distribution area. The possible partners could be NTPC or healthy SEBs, Private players • Selection of areas to be done after identifying potential customers viz Railways, leading industries , Private and Govt Installations including other customers.

9. The benefits of the Innovation Strategy • This will add to the growth of organization , as well as career progression for existing managers and employees. • In the present scenario , competitive situation is likely to worsen from a near monopoly market to highly contested market. The change is necessary on the part of the organization in order to survive and grow. • The consumers need quality power but are currently deprived because of mismanagement of the existing resources. These consumers will be happy to pay higher prices for quality power

10. The timing is of essence • The early move and timely control of direct distribution will determine the future profitability of power companies • POWERGRID can begin in right earnest to plan and implement the strategy . • The benefit to consumers must start at the earliest. This will improve their lifestyle and will also improve economic development. • There would be increased productivity for POWERGRID , as it would be able to reduce losses in the area of transmission and distribution. We bring these losses down from 42% to 10-12%- a net utilizations of additional 30%.

11. We have to overcome the resistance to change • Whenever a change is proposed, both external as well internal customers resist the change , which needs to be addressed by adopting proper methodological approach. • To improve productivity we would have to develop employee and managers skills through training and development. • There may be resistance to change. Normally, people are afraid of unknown. Most people suffer from inertia and see change as threatening to existing resources and status.

12. How the success is guaranteed? • POWERGRID has high brand value to build up confidence amongst users. • Requisite expertise exists. • We shall be committed to clients to achieve service excellence. • We shall be better listeners to our consumers and shall be responsive. • We shall be accountable. • We shall stand guarantee for high quality of power. • Operational efficiency will be the driving force.

13. Continued….. • As each consumer is different, they would be handled differently every minutes of the hour, every hours of the day and every day of the years. • A sense would be created amongst the consumers that they would not go for any suppliers other than the POWERGRID. • Consumers would be inspired to experience advantage of involvement of POWERGRID through a well cascaded communication strategy.

14. Remedies • Employees would be made to recognize the need of change to earn higher returns • This has to be demonstrated by producing tangible analysis of costs and benefits arising out of this changed strategy • Involving people in analysis and change process would help us get their commitment to the proposed change. This would reduce the apprehensions. • Employees would be made to understand that they will have better career option/growth. • A sense of pride shall be created among the employees. • There is a need to make employees realize that change also bring opportunities.

15. Billing and Revenue Realization • Augmentation of existing scheme would be done by the state of the art technology: We would install electronic meters to provide fairness in billing. • The meters would be installed both at the supply point and the consumption site to monitor any losses that might be plugged in • We would also carry out schemes through which people can use prepaid cards which would be made available through the local distribution partners

16. THANK YOU