Managing in a vuca world
- 1. MANAGING IN A VUCA WORLD SUBMITTED BY RINEE DOBHAL
- 2. IT’S A VUCA WORLD! “We are moving from a world with problems, to a word of dilemmas”
- 3. WHERE DID VUCA COME FROM? • VUCA is an acronym—first used in 1987 • Coined at the U.S. Army War College in meant to describe the “FOG OF WAR”. • FOG OF WAR is the uncertainty regarding one’s own capabilities ,adversary capability, and adversary intent during a war. • Military forces try to reduce the fog of war through military intelligence.
- 6. VOLATILITY • It is the RATE, AMOUNT and MAGNITUTE of change. • It brings Drastic, rapid Shifts can Bring about instability for organizations, but even the minor shift that occur daily , Such as new and “intermediate” priorities that disrupt plan or increasing need to “multitask "are changes that increase in volatility.
- 7. In cashew plantation point of view • Volatility helps to make profit in some cashew planters and also loss to some cashew planters. For example:- When there is a natural disaster in one areas and in another area no such natural disaster occurs. In the place where natural disaster occurs the demand for cashew increases because of less production and automatically the price also increases then the profit for the plantation sector are also increases. In the place where no natural disaster occurs the demand for cashew remains constant or can be less because of more produ- -ction and prize also constant so there is no profit for the planters located in this area.
- 8. UNCERTAINTY • Lack of clarity about the challenges and their current and future outcomes. • Uncertainty can result in an over-reliance on past experiences and yesterdays solutions or to analysis paralysis as we shift to more and more data.
- 9. In Cashew Plantation point of view • There are many situations in plantation sector which causes uncertainty:- Lack of prediction of rainfall Lack of information about price fluctuation in future. Lack of clarity about particular technology. Lack of information about when to harvest and when to market among the cashew planters.
- 10. COMPLEXITY • The amount of dependency and interactive effect of multiple factors and drivers. • Requires to think in more creative, innovative and non-linear way; to be able to deal with shades of gray( as apposed to black and white) solutions.
- 11. In Cashew plantation point of view • Complexities in using improved package of practices • Complexities in using improved technologies like precision farming i.e. using of GPS, yield mapping, variable rate of fertilizer application. • Complexities in understanding government policies in terms of exports and imports.
- 12. AMBIGUITY • The degree to which information, situations, and events can be interpreted in multiple ways. • It increases doubt, slows decision-making and result in missed opportunities. It re-quires that leaders think through and diagnose things from multiple perspective.
- 13. In cashew plantation point of view • Failure to understand the particular time when to harvest and when to market. • Failure to understand the new technology and its profitability due to lack of information among the farmers.
- 14. VUCA PRIME
- 16. VUCA ANALYSIS IN INDIAN ONLINE RETAILINDUSTRY - FLIPKART • The Indian online retail industry is currently witnessing a number of rapid changes and challenges associated with stages of evolution. • Though the e-commerce sector is growing exponentially in India, it faces several challenges like customer mindset, high cash on delivery (CoD) based orders, reachability, poor courier services and other policy-related issues. • Certain ecommerce players and industry observers have raised concerns that deep discounts, free shipping, intense competition and higher rejection rates due to cash on delivery (CoD) have impacted online online retail adversely. • Some of these concerns are specific to India and are more difficult to overcome than issues such as internet penetration and getting more people to shop online. • Flipkart, is also facing a lot of these challenges and to certain extent, has been successful in dealing with them.
- 17. FLIPKART CHALLENGES AND APPROCHES VOLATILITY CHALLENGES APPROCHES • Majority share of Cash-on Delivery (CoD) due to which multiple challenges occurs:- -additional cost -longer revenue realization cycle -increased supply chain complexity -and fraud risk • Dissatisfied customers of “Big Billion Day” sale Lack of exposure to the online business for its seller base was the reason why the market leader Flipkart ran out of stock for many of its popular products. -share is likely to reduce gradually, with increasing penetration of credit/debit cards coupled with its online usage and greater consumer confidence in such transactions. • It identified the efficient sellers and began coaching them on various aspects which are important for selling products online. • it took the help of third-party agencies such as Aptech and Skillventory. It also used data and analytics, to help the sellers identify trends
- 18. FLIPKART CHALLENGES AND APPROCHES UNCERTAINITY CHALLENGES APPROCHES • UNDERESTIMATED COMPETITION Need to invest more in collection of innovations made by flipcart are now data and interpretations. commoditised. Every big player offers the same. Amazon India has data scientists whose job is to only execute strategic pricing that makes Flipkart Bleed • Facing difficulties from the third it started its own logistics arm named party logistics providers (3PLs) in the e-kart form of higher delivery cost, late deliveries and faulty products delivered resulting in return and customer dissatisfaction,
- 19. FLIPKART CHALLENGES AND APPROCHES COMPLEXITY CHALLENGES APPROCHES -Flipkart‘s faulty process to address ‘out of stock issues‘ during “Big Billion Day’. -Failed to organize sellers . -Uneducated suppliers in terms of online business -5 days exclusive category sales of goods Example: Fashion, Home appliances, Mobile and accessories, Electronics and automotives, Books and more - Educated suppliers in terms of online business -Provided finance to suppliers for buying inventory - Built seller‘s trust
- 20. FLIPKART CHALLENGES AND APPROCHES AMBIGUITY CHALLENGES APPROCHES -Tax issues in Karnataka and Kerala -Specially designed policies for ecommerce industry, implementation of goods and service tax e.g. GST
- 21. CONCLUSION • The VUCA model is beneficial in identifying the internal and external conditions that affect organizations today. • Volatility can be dealt with a better organizational vision. Clear vision of where they want their organizations to be could help them to tide over volatile environmental changes such as economic downfalls or increased competition. • Uncertainty can be managed with cognizing, the ability of a leader to stop, look, and listen beyond their functional areas . • Complexity can be defied with clarity, the process to try to make sense in the time of chaos. In a VUCA world, chaos comes rapid and hard. Organizations, who can quickly and clearly comprehend all of the intricacies associated with the chaos, can make better, more business decisions. • Ambiguity can be counteracted with dexterity. Skillful management of the resources in an ambiguous environment would remove the vagueness surrounding the business.