Changes in world disrupting global business, says Mohandas Pai

Manipal Global Education Services Chairman T V Mohandas Pai said the invention of steam engine was a major turning point in history.

Delivering the 21st leadership lecture on ‘Disrupting Global Business’ here on Monday, he said the steam engine’s invention enabled cotton export from India to be converted into textiles in mills in the United Kingdom and then transported to various ports to be shipped to Europe and other countries.  He added the pace of change has accelerated and no one can escape it. By 2030, the world will be a different place, he said.

Pai said the world turned to global trade after World War I and World War II. These wars had significant impact on the world economy and made the United States and Russia major economies in the post-war era. The destruction of the empires, innovation in technologies and rapid increase in trade completely changed the world economy, he observed.

‘Most disruptive’

In the present scenario, the first and the most disruptive change in global economy is the innovation of the internet. It has not only connected business, but also connected seven billion people around the world. This digitalised the world in the form of e-commerce which has disrupted the global supply chain and made the world one single market place, he felt.

He said the most important element for successful global trade is the robust supply chain. He also elaborated the importance of 3-D printing and robotics which have substantially disrupted the traditional manufacturing system. But this has also reduced the job creation because of the introduction of automation. Now, the market place needs more skilled workers, he said.

He said the second most disruptive change in the world economy would be the energy sector. He mentioned about the recent wars and instability of the Middle East which have forced disruptive innovation of shell oil production in the US. The major disruption in the energy sector would be the solar technology,he added.

He said disrupting capital has significantly impacted the financial world. He defined ‘disrupting capital’ as the printing of money by the US, China, Japan and European Central Bank after the Global financial crisis of 2007-2008. He argued that the excess amount of this liquidity has further created more capital for innovative disruptive ideas. The changes in the world are disrupting the global business, he concluded.