Managing innovation in service and manufacturing industries: India and France Perspective

Abstract

Indian software industry has been growing at a rate of approximately 35% over the past decade. The automobile industry too is growing at a rapid pace. There has been a lot innovation in the business practices and the products in these two areas. French companies like Renault are entering Indian Market with full steam. On the other hand, Indian software service giants are looking for takeovers in the west (Europe Specifically) to improve their innovation & consulting capabilities along with acquiring new customers. The question here is what factors these companies should take into consideration when rapidly expanding in India and France and the impact of those factors if not given their due importance. Renault’s first step in India is through a joint venture with Mahindra which failed to gain traction. Now, it has set up its own brand and rapidly expanding launching models at the rate of one per quarter. They can be successful only if they understand the market deeply and cater to the specific needs of the Indian customer. There are lot of differences in the business in conducted in India and France. The needs of the target segments are extremely different because of the income levels, social-economic factors etc. This project is an attempt to capture the main factors that influence the process of innovation in two of the main functions namely Products & Human Resources required for large scale MNC’s to successfully run operations in India and France.