Nothing can promise sustainability in a VUCA world than an innovative mindset.
DR ASEEM CHAUHAN, AMITY UNIVERSITY, MANOJ JOSHI AND
SUHAYL ABIDI, AUTHORS OF THE VUCA COMPANY
Riding the
VUCA wave
I
nnovation is an outcome of an idea
that can be inferred as something new.
Innovators innovate and create wealth,
or add to what is existing. Growth
comes from innovators who may also be
entrepreneurs who lead to employment
generation. These innovators and
even entrepreneurs bestow new value on old
assets. Internet startups like Oyo Rooms,
Myntra, ShopClues, Lenskart, redBus, Grofers,
BookMyShow, and Pepperfry have virtually
created wealth from nothing. Aggressive ones
like Mu Sigma, Flipkart, InMobi, Quikr,
Zomato, Olacabs, and Paytm have scaled
to become unicorns with over $1billion as
investment. There are many more who have
created wealth with barely any base. Many large
companies have also been successful in the
creation of wealth, like Wipro, Bharti Telecom,
and Infosys. This wealth creation trend is similar
around the world. Has agility and precision
added to their innovativeness?
Most of these firms have moved ahead to
being distinctively classified as innovative
companies, who faced continuous challenges
in a VUCA environment. According to a recent
Forbes survey on top 100 innovative firms, North
America had 51, Europe 17, and Asia 22. The
top of the list had firms such as Salesforce.com,
STRATEGY
Tesla Motors, Amazon.com, Netflix, Incyte, and
Regeneron Pharmaceuticals from the US, while
Shanghai RAAS Blood Products from China and
Naver belonged to South Korea. Interestingly,
Hindustan Unilever and Asian Paints from India
got an entry into top 10 innovative firms. These
innovative firms were from verticals ranging
from technology to beverages, real estate, and
pharmaceuticals. It is worth dissecting and
learning what they did in special to stay ahead.
Surprisingly, old horses like Microsoft,
Google, Apple, Samsung, Motorola, Toyota,
Honda, Daimler Benz, Caltex, and Exxon have
lost the race to be termed as highly innovative
firms, may be for the time being. Is it speed,
precision, and innovativeness that drive firms
existence in a VUCA world?
Inventions and historic evidence
Is necessity the mother of invention? On the
contrary, the journey to a few inventions
that changed the world shall illustrate how
invention is the mother of necessity. What
necessity gives birth to is merely improvisation.
Invention is an offshoot of dissatisfaction and
the passion for doing better. So, who are
inventors? What motivates them? Are they born
inventors? How can they be encouraged? What
have they in special that others do not have in
INDIAN MANAGEMENT NOVEMBER 2017 73
Many early inventors had terms of creative dimension? driving force. While a minority of inventors
Historically, inventors have have become rich, others have remained
different perspectives struggled for recognition, being bankrupt, only to see their ideas used by
of their products. Few neglected and ridiculed in their others. Thomas Alva Edison is an example of an
could foresee the basis journey. Intense persistence, inventor gaining little. Most inventors remained
of a revolution. They did tenacity, optimism, originality of poor, while those exploiting their ideas as
approach with a combination of innovators became rich. The original patents
not have the so called for the zip fastener were attempted in 1893,
strong conviction is all that they
commercial foresight. possessed. They demonstrated a until in 1923 when these were commercially
high level of autonomy in their marketed. So was the volatility, uncertainty, and
VUCA world. complexity of opportunity markets ambiguous?
S G Brown, holder of 235 patents in Inventors have been slow in response to
telegraphy, radio, and gyro compass design, forsee outlets of their invention. James Watt
felt if there was any control over him and his strongly opposed Richard Trevithicks high-
work, every idea would have stopped. Radio pressure steam engine. Many early inventors
inventor Lee de Forest found it difficult to work had different perspectives of their products. Few
under conditions short of complete autonomy. could foresee the basis of a revolution. They did
So, is it that contemplation, imagination, and not have the so called commercial foresight.Was
speculation are the roots of invention? It is clear it the foresight that was missing?
that inventors were intrinsically motivated Should we not say that an inventors greatest
to pursue their passion. The innate desire to asset is to be free of conservative wisdom? In
do something new and extraordinary was the many cases, the inventors profession or career
was not even remotely related to their area of
invention. Leopold and Godowsky, inventors
of Kodachrome colour film, were musicians.
George Eastman of Eastman Kodak was a
bookkeeper in a bank. Ladislao Biro (inventor of
the ball point pen) was a sculptor, a painter, and
a journalist. King Camp Gillette was a travelling
salesman dealing with bottle-caps. Christopher
Cockerell was a radio engineer who invented
the hovercraft. Most inventors, if they had
realised the difficulties, would have never
initiated their intellectual genius!
Inventions in the field of transportation,
telecommunication, information and
technology, artificial intelligence, ecommerce,
and medicine have deeply transformed our lives
and shall continue to do so.
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Innovation in action
It is evident that innovators take lead in
creating wealth and also add value to old
assets. Adolescent firms engage in this process

74 INDIAN MANAGEMENT NOVEMBER 2017

 STRATEGY

have a lasting impact on the survival of a firm,

which is constantly engaged in competitive
entrepreneurship. These innovations termed
strategic by nature have occurred in fields
like IT. Newer organisational structures will
emerge, which will accomplish both short
term and long term control and autonomy.
Customer management relations and
boundary relationship management too will
take a new shape. The scope of innovations
will be infinite for firms seeking existence
in volatile times. Innovativeness will be
an intangible asset. Innovative firms will be
game changers, overthrowing [traditional]
industry structures. This is what innovative and
entrepreneurial firms like Perrigo (Ireland),
Magnit (Russia), Anheuser-Busch InBev
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(Belgium), Norilsk Nickel (Russia), Inditex

(Spain), Luxottica Group (Italy), Falabella
(Chile), Cielo (Brazil), and Experian (Ireland)
have created.
It is estimated that more more frequently and create It is estimated that more than 90% of
than 90% of startups do more value than their older startups do not celebrate their fifth birthday.
and larger counterparts. The complacency of older firms will make them
not celebrate their fifth Hence the sectors in extinct soon. The remaining few are the actual
birthday. The complacency which they operate display innovators who engage in creation of most
of older firms will make more growth than others. of the wealth. Fortune 500 strengthens this
them extinct soon. Unilever from Indonesia; argumentthe average age of some large firms
BioMarin Pharmaceutical, is not more than forty years. Those who thrive
Monster Beverage, Adobe in the VUCA environment often use innovation
Systems, Autodesk, as their survival remedy.
Vertex Pharmaceuticals, Illumina, Marriott India today boasts 3.4 million small
International, Alexion Pharmaceuticals from the companies, of which perhaps only 3400 (0.1%)
US; and Amorepacific from South Korea are good have a truly entrepreneurial set-up. The rest are
examples. Perhaps, there is one strong reason imitators forced by growth orientation, which
why some countries perform better than others may be a result of fear of failure or lack of
and create more wealth. Is being innovative vision (foresight and insight). A large majority
and creative the answer in a world of chaos and lacks passion and effectiveness and engages in
complexity? Foresight and agility is perhaps business for want of improved opportunities, or
ABOUT THE AUTHOR
an answer. is pushed by tradition.
The VUCA world requires agility and a vision There are two factors that need to be
Dr Aseem
Chauhan is to sustain. It needs leadership by purpose examined with respect to some entrepreneurs
Chancellor, and no more management by objectives. and their firms being able to generate more
Amity University.
Strategic innovations are the answer as they worth compared to others.

INDIAN MANAGEMENT NOVEMBER 2017 75


Innovators and innovating Fear of failure: For some,
firms continuously hunt the fear of failure may be a
result of strategic weaknesses
for opportunities. They in their early life. These
see possibilities at places may be due to excessive
while others see chaos and family responsibilities and
disorder. lack of resources or skills.
It can also be due to a sense
of incapability to deal with
uncertainty. On the contrary, those who were
able to counter VUCA challenges early in life
have emerged as successful innovators. The same
applies to entrepreneurial firms too.
Power of vision: Entrepreneurial ventures
and innovations, though rewarding in the long
run, are inherently risky. It demands dynamic
capability to spot opportunities, experiment,
and mitigate the VUCA impact. Most
ABOUT THE AUTHOR successful ventures are built around individual
Manoj Joshi is competencies and dreams, and take the shape of
Professor, Amity the entrepreneurs vision. Once the vision takes
Business School.
a concrete shape, it drives venture creation
76 INDIAN MANAGEMENT NOVEMBER 2017
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quickly. The feeling of having discovered a
success formula thus prevails.
Innovators and innovating firms continuously
hunt for opportunities. They keep scanning
the environment meticulously with a positive
psychological framework and attitude. They
see possibilities at places while others see
chaos and disorder. Continuous innovation
is the driving vector for incumbents. They
meticulously engage in evaluating newer
dimensions for solving problemsconvincing
newer investors and customers, supplier
alignment, and attracting competent employees.
They are fast learners from past failures in
their entrepreneurial journey. Chance and luck
are interconnected and therefore must not be
ignored. Together they could bring desired
results or at times astounding failures.
To emerge as an innovator, one needs to
follow the nine principles given below:
Choosing to be entrepreneurial and innovative
Learning from past experiences

Building a passionate team
Harnessing personal competencies
Assessing potential customers
Choosing the right market
Countering competitive challenge
Choosing the right location
Keeping the strategy flexible with a clear
growth trajectory
VUCA challenge
The need for agility and precision is widely
accepted globally. Gone are the days when
organisations enjoyed a
monopoly without facing
What matters most is the competition. The changing
patterns of competition demand
orchestrated combination
a strategic shift from older to
of the creation, selection, newer practices. The context
and delivery of ideas. of the business may change
ABOUT THE AUTHOR
Suhayl Abidi is
a management
consultant.
STRATEGY
depending on the size of the organisation and
its operative platforms. Also, markets are fast
growing and so is the complexity of the size
of the customer base. Buying capacity is also
witnessing change and along with it, customer
desires and needs. This gap is being filled by
new products and services. The cycle continues
with increasing ambiguity. This will result in the
creation of newer markets, firms, products, and
services. It is high time local companies acquired
world-class competencies to stay competitive.
Engaging in innovation and launching products
in the market do not guarantee streamlined
revenues at the same time. What matters most
is the orchestrated combination of the creation,
selection, and delivery of ideashow the
firms engage and assimilate opportunities to
create and continuously deliver competitive
products/services.
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