MANAGING INNOVATION AND
• R. N.Banerjee
• We are grateful to Prof.M.Akbar for his
valuable guidance for preparation of the
Demand –supply gap
Demand:peak2003 Supply Gap
82000 MW 71260 MW 10740 MW
1430 MU /day 1325 MU/day 105 MU/ day
Projected demand 2012 Projected supply Gap 2012
157000 mw 150000 mw 7000 MW
2800 MU/ day 2700 MU/day 100 MU/ day
• Peak demand per day = 1430 MU
• = 143 Cr unit
• Cost per day @ Rs. 2 p. u.=Rs. 286 Cr
• Total for one year =Rs.1 lac Cr
• Likely transaction by 2012 = Rs. 2 lac Cr
• The basic problem will not be the demand and
supply but the quality of power would matter
• Our opportunity is to secure reliable supply, use
national grid and supply initially directly to major
customers and then retail consumers.
• The Project group has focused on this need and
has come up with an idea for direct distribution.
• This will work for Power Grid because it has
competence and infrastructure to deliver quality
power, which other major suppliers do not have.
The Value Proposition
• We would offer our customers uninterrupted
quality supply of power at affordable prices
• The entry can be made in phased manner according to
geographical areas where demand for quality power is
high which will make early financial returns possible.
• This can be accomplished through internal resources
and competence and better through alliance partners to
reduce the risk and implementation time beside
complementing our own skills in distribution area. The
possible partners could be NTPC or healthy SEBs,
• Selection of areas to be done after identifying potential
customers viz Railways, leading industries , Private and
Govt Installations including other customers.
The benefits of the Innovation Strategy
• This will add to the growth of organization , as well as
career progression for existing managers and
• In the present scenario , competitive situation is likely to
worsen from a near monopoly market to highly contested
market. The change is necessary on the part of the
organization in order to survive and grow.
• The consumers need quality power but are currently
deprived because of mismanagement of the existing
resources. These consumers will be happy to pay higher
prices for quality power
The timing is of essence
• The early move and timely control of direct distribution
will determine the future profitability of power companies
• POWERGRID can begin in right earnest to plan and
implement the strategy .
• The benefit to consumers must start at the earliest. This
will improve their lifestyle and will also improve economic
• There would be increased productivity for POWERGRID
, as it would be able to reduce losses in the area of
transmission and distribution. We bring these losses
down from 42% to 10-12%- a net utilizations of additional
We have to overcome the resistance to
• Whenever a change is proposed, both external
as well internal customers resist the change ,
which needs to be addressed by adopting
proper methodological approach.
• To improve productivity we would have to
develop employee and managers skills through
training and development.
• There may be resistance to change. Normally,
people are afraid of unknown. Most people
suffer from inertia and see change as
threatening to existing resources and status.
How the success is guaranteed?
• POWERGRID has high brand value to build up
confidence amongst users.
• Requisite expertise exists.
• We shall be committed to clients to achieve
• We shall be better listeners to our consumers
and shall be responsive.
• We shall be accountable.
• We shall stand guarantee for high quality of
• Operational efficiency will be the driving force.
• As each consumer is different, they would be
handled differently every minutes of the hour,
every hours of the day and every day of the
• A sense would be created amongst the
consumers that they would not go for any
suppliers other than the POWERGRID.
• Consumers would be inspired to experience
advantage of involvement of POWERGRID
through a well cascaded communication
• Employees would be made to recognize the need of
change to earn higher returns
• This has to be demonstrated by producing tangible
analysis of costs and benefits arising out of this changed
• Involving people in analysis and change process would
help us get their commitment to the proposed change.
This would reduce the apprehensions.
• Employees would be made to understand that they will
have better career option/growth.
• A sense of pride shall be created among the employees.
• There is a need to make employees realize that change
also bring opportunities.
Billing and Revenue Realization
•Augmentation of existing scheme would be done by
the state of the art technology: We would install
electronic meters to provide fairness in billing.
•The meters would be installed both at the supply
point and the consumption site to monitor any losses
that might be plugged in
•We would also carry out schemes through which
people can use prepaid cards which would be made
available through the local distribution partners