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International Indexed & Refereed Research Journal, ISSN 0974-2832, (Print), E- ISSN- 2320-5474, Aug-Oct, 2013 ( Combind ) VOL –V * ISSUE – 55-57
Introduction
The complexity, uncertainty, and turbulence of the
present dayglobal environment ofindustryhave led to
a frantic search for new ways of coping with the chal-
lenges of change and competition. It has been esti-
mated that as much as 20% to 40% of the working
capital of Indian companies is unproductively locked
up inthe inventorycarried bythem.Furtherassociated
costs are generated in the form of warehousing, mate-
rials handling, logistics and deterioration of stock
overtime. These factors have pushed up cost of pro-
duction. Costs ofoverstaffing, delays and lowproduc-
tivity,escalatecostfurther.Consequently,Indianfirms
are easily priced out of the market by their foreign
competitors.Therefore,searchforContinuingandlast-
ing source of organisational rejuvenation requires a
new,radicaland completerethinkingofthefundamen-
tals of business.
ChangesinworldIndustry:
• Shorter product life cycler
• Shorter product change over cycle
• Higher rate of new product development
• Rapid development and use of IT
• Competitive strategy based on technology and train
ing of employees in multiple work skills, participa
tion, and responsibility.
• Increasing use of automated decision aids like, de
cision support systems,(DSS) expert system (ES),
and simulation experiments
• Development of hybrid technologies.
Reinvention, involves focus towards devel-
oping new horizons of opportunity, conceptualising
new road maps for the future, and visualising and pro-
viding the value that is whole purpose of the business.
Reconceptualising the nature and purpose, thrust and
direction of firm's business strategy.
Reinvention of the enterprise is directed toward rede-
fining its relationship with its environment, and
reconfiguring its structure and relationships accord-
ingly. It is both externally and internally oriented in
synchronous manner. Its unit of analysis is the com-
pany as whole. It involves review of basic question:
• What the products/service are about?
Research Paper -Commerce
Aug- Oct , 2013
Global Competitiveness and Reinventing
anEnterprise
* Dr. Dilip B Bhanagade
* DepartmentofCommerce,DnyanasadhnaCollege, Thane.
• What is the nature of products as modes of deliv
ering service?
• What are unique customer values that may be cre
ated/invented/or delivered reconfiguring?
• In what new ways can the firm integrate with the
outside world -customers, suppliers, and firms in and
across industries?
Reinventing Strategies: Viewpoints of the
majorthinkersarebrieflyoutlinedthereinventingstrat-
egies. Rethink the Nature and Purpose of Products:
According to Ohmae, strategy is about creating value
for customers, products are modes of delivering it. It
demands rethinking of company's products/services.
Matching competitors move by move through cost
cutting, automation, price reduction, downsizing and
so on, is not strategy. Strategy implies resisting the
easyanswerin search forbetter creative waysto create
and deliver superior value to customer.
Develop Core Competence and Create New
Competitive Space: The firms should concentrate on
developing world- class distinctive core competen-
cies, which should form the basis of its core products,
and leveraged across product and markets. The com-
panies should focus on new competitive space for
escaping from being locked up in tyranny of served
market.Withoutthecapacityto generatenewcompeti-
tive space, they have to remain trapped in conven-
tionalandshrinkingproductmarket.Itrequiresconfig-
uring the matrics of customer needs and product
functionalities to innovate new product concept.
DevelopBest-In-theWorldCorecapabilities:
Core capabilities include, core (technologi-
cal) competencies, but also extend to areas of market-
ing, logistics, distribution, databases, and so on. It
implieshighlevelofserviceskillwhichisperceived as
unique by customers. The companies should focus on
developing 'best- in-the-world' knowledge intensive
core capabilities and outsource their other require-
ments. They should fill their other gaps through stra-
tegic alliances with other high performance firms.
ReinventValuethroughKnowledgeandRelationships:
The strategy is about reinventing value. It is not just
limited to adding value to products/customers. The
keytask isto reconfigure rolesand relationshipamong

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International Indexed & Refereed Research Journal, ISSN 0974-2832, (Print), E- ISSN- 2320-5474, Aug-Oct, 2013 ( Combind ) VOL –V * ISSUE – 55-57
suppliers, business partners, customers-in order to
mobilise creation of value in new form and by new
players. The focus of strategic analysis is no longer a
company or even the industry, but the value creating-
system itself within which economic sectors like sup-
pliers,business partners/allies, customers, work to co-
produce value. The strategy is reinventing value
through the continuous design and redesign of the
value-creating complex business system.
Change Context and Become a Different Company:
Reinventing is not changing what is, but creating what
is not there. Reinventing involves becoming a differ-
ent company, by breaking with the past and outmoded
present, and creating a new context for working and
competing.To reinvent a companyis to decide that the
only way to compete in long term perspective, is to be
a totally different company.
Transforming Organizations into Learning
Laboratories: Thisstrategyhold thatwithoutlearning,
there cannot be any organisational improvement and
vice versa. Organisation learning involves efforts to-
ward mapping, challenging, and improving the mental
maps that people use to see, understand, and act on the
dynamiccomplexityallaround them.Therateatwhich
the organisation learns may be the only source of sus-
tainable strategic advantage. The concept of corpo-
rateas'laboratoryforlearning'isbasicallyrelatedtothe
factthatknowledgeconstitutesthemostbasicresource
today.Globallycompetitivefirmsarethosewhichhave
the insight and foresight to mobilise and allocate to
new productive uses. Are those The successful com-
panies are those that consistently create new knowl-
edge, disseminate it widely throughout the
organisation, and quickly embody it in new technolo-
gies and products. These activities define knowledge-
creating company, whose sole business is continuous
innovation. The firms will be differentiated by their
ability to leverage knowledge and intellect in creating
greater value than by exclusive focus on exploiting
physical assets and skills.
Co-innovatewithCustomers:
Decidingtoinnovatewhat,whyandforwhom,
are difficult critical issues. Lack of innovation means
stagnation,decay,and declineofacompany. Co-inno-
vatingwithcustomerstowardsdevelopingfuturetech-
nology products and work systems, provide a highly
viable option . This indeed forms the strategic focus of
Xerox company it worked with its customers on tech-
nology and system that do not yet exist and on needs
that are not yet clearly defined. The company tries to
prototype a need or use before prototyping a system.
Cope with Change through Stable relationship: This
strategy is value addition based on relational architec-
ture and stability. Outstanding businesses derive their
strength from a distinctive structure of relationships
with their employees, customers and suppliers. With-
out an active support and harmonious relationships,
the goals and vision, the plans and programmes of the
company cannot be effectively be translated into real-
ity. Continuity and stability in these relationships is
essential for a flexible and cooperative response to
change.
DevelopandAlignTechnologicalandOrganisational
Capabilities:
The capabilities may be of two types viz;
organisational and technological. The organisational
capabilityconsistsofstructuralflexibilityandcreative
human resources. The technological capabilities con-
sist of technology absorption, innovation, and world-
class manufacturing i.e. TQM, JIT, CAM. Both these
capabilities need to be developed, and aligned, in dy-
namically adaptive manner toward meeting following
requirements.
• To asses business environment for anticipating and
responding to evolving needs of customers, and es-
tablishing backward and forward synergies with
vendors,customersandotherfirms(strategicalliance).
• Competingintime
• To utilise commercial potential of newtechnology
withminimumlag.
• Toproduceproduct/servicesthoseunfailinglymeet
customer'sexpectationintermsofquality,costand
performance.
• To utilise the creativity and knowledge of
organisationalmembersasvaluedresourcetowards
generating new ideas, concepts, methods for cre
ating new source of value.
Methodology for Reinventing: The three apparently
different methods but with dominant emphasis on
human creativity are:
• Concept Research
• Thought Experiments
• Envisionments and Imagineering Exercises
Concept research is oriented towards generation,
visualisation,andexplorationofpreviouslyunthought-
of conceptual possibilities, alternatives, and
opportunities.
Thought experiments and Envisionments
,throughboththemethod it maymovefrompossibleto
practical, potential to actual, benefits to constraints,
and development to testing. It concentrates on value
systems of the customers, suppliers, and firms value
chain, and on employees. The thrust and direction is
towardspooling,developing, and reallocatingcompe-
tencies, activities, and roles of firm's relationship to-

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International Indexed & Refereed Research Journal, ISSN 0974-2832, (Print), E- ISSN- 2320-5474, Aug-Oct, 2013 ( Combind ) VOL –V * ISSUE – 55-57
wards truly innovative value-creating system.
RoutetoReinvention:
There is no unique pathway or procedure for
reinventingan enterprise.However, theconditions are
identical like change management. The steps in rein-
venting are:
Assemble a critical Mass of Key Stakehold-
ers: This requires bringing together group of people
whose knowledge, skills, and reputation would be of
critical importance towards implementation of rede-
signandchange.Italsocallsforrealignmentoftheflow
of communication across traditional department/sec-
tional boundaries
DoanOrganisationaudit:
A company cannot move from its present
state to desired future state without first knowing what
the present state is. For this purpose, it needs to iden-
tifyandcriticallyexamine:
• Whatassumptionsarewemakingaboutourstrategic
position that may no longer be valid?
• Whichfunctionalunitsaremostinfluential,and will
theybe asimportant in thefuture as theywere in the
past?
• What are the key systems that drive the business?
• What are the core competencies or skills of the
enterprise?
• What are the shared values?
• What is/are the system for tracking information?
CreateUrgency,DiscusstheUndiscussable:
The Company must confront its most life
threatening problem situations in order summon the
courage to break with past and embrace a new future
Harness Contentions: The control of contention kills
invention,learning,and commitment.Thecontentions
should be used to jump start the creative process.
Engineer Organisational breakdown: There will be
many breakdowns along the way to reinvention: sys-
tem that threaten to fall apart, deadlines that cannot be
met etc. These breakdowns make it possible for
organisationsandindividualsto takehard lookatthem,
and confront the work of reinvention. When an
organisation set out to reinvent, breakdowns should
happen by design rather by accident. The purpose of
breakdowns is to provide opportunities to enable both
theorganisationanditsexecutivesto operatefromnew
context.
Conclusion:
Reinventing, fast-cycle capacity, and mass
communication,are latestdevelopment inthe seriesof
emergingrecentstrategicinnovations vizTQM,FMS,
team base management and so on. They are cause and
consequencesofintensifyingglobalcompetitiondriven
bytechnology.Theyaremeans,notanend. Rethinking
the fundamentals of business strategy, highlighting
the need and requirement of organisational reinven-
tion,reflect thesearchforreconceptualisation ofgoals
and ends. Formulations concerning the nature and
significance of reinventing enterprises are thus a vital
part of the continuing efforts of an enterprise to cope
withthecomplexity,turbulence,uncertainty,and com-
petitive intensity of their business environments. Ef-
forts of an enterprise to reinvent itself represent its
search for a new identity in a highly dynamic milieu.
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2. Rastogi,P. , Determinants of Competitiveness in a global Marketplace, Allied Publishers New Delhi
3. Waterman S, R, The Renewal Factors, Bantam Books, New York
4. Hamel, G. and Prahalad, C., Competing for the Future Harward Business School Press , Boston.
5. Hammer, M. and Champy J. Reengineering the Corporation Harper Business, New York
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