With India emerging as an important investment destination, Tim Cawley, senior vice-president, Global Logistics Integrated Supply Chain, Motorola, Inc., visited the country recently to assess the distribution needs of the company. tele.net spoke to him about the manufacturing industry in India and Motorola’s key thrust areas in the country. Excerpts…
What are the key global technology trends?
A significant global technology trend is convergence. Customers are looking for communication and information tools to talk to each other more seamlessly. Another key technology trend is usability. The vision is to create products that are easy to use. Other trends include miniaturisation of devices while enhancing storage capabilities.
What steps can be taken to increase broadband and rural connectivity?
As a small step, the tax system must be simplified. This will make it easier for companies to do business here, consequently reducing the cost to consumers. Manoevring through the state taxes distracts companies from their real goal ?? making products available to Indian consumers.
Second, companies must try to understand what consumers need in the Indian market. For example, MOTO Fone was designed with a very distinctive display to make it easier to read in broad daylight. We believe that such products and initiatives can help us serve the unconnected market.
Third, companies must understand and master the complex distribution channels in India. It is a complex country, with many languages and remote areas, but with large markets. It is important to adapt to such a scenario and recognise that one cannot bring US distribution logistics into India.
What is the future after 3G?
3G has two main advantages. It reduces the cost of carrying calls by enabling more capacity and it provides faster data speeds for services such as video downloads. For customers who desire even further advances in technology, 3G provides seamless mobility and enables them to carry their data and music with them everywhere.
The next big thing will be that people will want to watch videos on their handsets. I used to be sceptical about this as I felt it was not needed. However, with the latest technological advancements, it is possible to have a fairly enjoyable video or gaming experience on a relatively small display.
What is your view of the manufacturing industry in India?
We are very optimistic about the manufacturing industry in India and are building a factory in Chennai. We are also considering exporting from India to countries in the Middle East and Africa. However, the Indian government needs to continue investing in local infrastructure, including airports, roads and bandwidth. As soon as India’s infrastructure capabilities become world class, more companies will invest.
What are your key thrust areas in India?
The manufacturing and distribution centre in Chennai is the most pressing area right now. We also have a number of distribution sites in the country. My goal is to rationalise whether to consolidate these into fewer sites that fulfil broader needs for the business. We are trying to analyse what customers require, the response times they need and what we can do to meet them. Then we will put together the right kind of network that satisfies them. From an R&D standpoint, we will continue to witness more rollouts and more investment in India. Our trend is to invest more in countries like India that have outstanding capability and lower costs than other markets.
In what way will the Nokia-Siemens merger impact your company?
Certainly, the merger gives both companies strengths. However, size alone is not a formula for success. We believe that innovation and a company’s infrastructure are critical for success. This is because manufacturing GSM or 3G networks is somewhat outdated. Developing Wi-Max and 4G networks provides us with an opportunity to ignore the larger size of Nokia-Siemens or Lucent-Alcatel and carve out a winning formula for ourselves. With the cash in our balance sheet and our knowledge of the industry, we are certainly capable. We have chosen a different path to success.
What, in your view, are the key concerns facing the industry?
The industry is witnessing spectacular growth. So, one cannot imagine there being huge concerns. However, compared to the rest of the world, India has lower average revenue per user (ARPU). Nevertheless, I am sure that over time, as the Indian economy continues to grow, ARPUs will increase. The second concern is how to balance the drive to increase penetration while not ignoring the 100 million people who want more advanced services. Striking the balance between these two is an area of constant vigilance by carriers.
Why should an enterprise customer choose Motorola over other companies?
People should choose Motorola because of the reputation that our company has in terms of great designs and innovation. We have clearly led the industry in this regard for some time now. Going back to the first “Star Track” and more recently to products like the RAZR and the KRZR, we have maintained the same excellence in design and reliability. There are not many companies in the world that have our heritage in innovation and breakthrough thinking.
