The Hindu : Business : `Discontinuity is an opportunity for new entrepreneurs'

Online edition of India's National Newspaper
Friday, Jul 08, 2005

Business

Business

`Discontinuity is an opportunity for new entrepreneurs'

Special Correspondent

Companies shifting business models lose original identities

CHENNAI: Is there a space for new entrepreneurs in this age of globalisation where competition is getting fiercer by the day? Yes, there is. At least this is what Phaneesh Murthy, chief executive officer, iGate Global Solutions, seemed to suggest at a talk on "Creating discontinues in the market place'' organised by the Madras Management Association (MMA) on Wednesday.

In a power-point presentation, Mr. Phaneesh reeled out examples of how established companies like IBM and Sony underwent a major metamorphosis to survive, losing their original identities in the bargain. If companies were to stay on top, they had to spot fully or partly the discontinuity in the market place or create discontinuity that transformed the business.

"There is no such thing as stability,'' he said. According to him, only two per cent of the companies survived a 50 or 60-year time frame and offered any kind of reasonable share of return. The positive element for the new entrepreneur lay in that he would "latch on to an existing discontinuity or create a new one.'' It was imperative to identify the core competence to create a new growth platform. Such differentiation-induced discontinuity could trigger a whole transformation in the value chain, he felt.

He traced how the IT area witnessed transformation since 70's. Today the field had seen `offshore discontinuity to place of work'.

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