CA: Is serving B2B markets different from fulfilling customer needs in the B2C markets? What are the unique challenges impacting the B2B markets and how can one address these?
RP: In today's world, the lines between B2B and B2C world are fast diminishing. In fact, we are moving to a new C2B model where the customer demands decide the course of innovation and growth trajectory of businesses.
Today's customer has access to various digital tools through which he can understand a lot more about the latest products in the market than what it was a decade ago. In such scenarios, we not only need to embrace the latest technologies and stay on top of the game but showcase and walk the talk of being a true C2B organization.
The Original Equipment Manufacturers (OEMs) and suppliers that we work with in the B2B space also uphold the highest standards of efficiency which gives us further impetus in delivering our aspirations of a better tomorrow, in a fast and agile manner.
One of the megatrends influencing this is digital transformation. To enable this, businesses should have connected products & services, and have updated information in the digital space. As a company, Danfoss focuses on this and believes in building products and solutions keeping in mind the needs and aspirations of our end-consumers, thereby working towards improving the quality of life of societies across the world.
As businesses move to C2B from traditional B2B and B2C, we are reinventing ourselves to prepare for the future and this journey is in high gear across the company. Danfoss is now on a major digital transformation journey, where we are fast embracing digitalization, one Enterprise Resource Planning (one ERP) and Internet of Things (IoT) to become a company which is easy to do business with. We had multiple ERP processes and legacy systems, thanks to our various mergers & acquisitions, but now these are being replaced or re-organized with one common system to enable us to meet the aspirations of the new world order.
CA: As a professional operating in global markets, please share your experiences on how the Indian market differs from global markets.
RP: India is at the threshold where by 2030, we expect that over 70% of the population will live in urban areas. The 100 smart cities initiative of the Government is aimed at enabling this urbanization to happen in a sustainable and planned manner. With this fast-paced urbanization, India is a market with huge potential.
India's development goals and the government's focus on Ease of Doing Business and creation of favorable policies and novel initiatives for global organizations, will further help in contributing to the economic and social transformation of the nation.
A critical point to keep in mind while serving the global market is that every market's needs are different and are driven by the customers' needs. Here, it is vital to provide best-in-class customer experience, in terms of products and services and this is what will set us apart from our peers and competitors. As a global player, our experience is that we need to invest in products & solutions which are made in 'India for India' and made in 'India for global'. This could be through re-engineering or reverse engineering or new innovations.
For instance, a few years ago we developed a product for chilling milk along with our customer Amul in India. While this was developed basis the requirements of Indian conditions; which include aspects such as aggregating milk from small farmers, a similar market condition and need was also found in Latin America. This innovation done in India has now been adopted in various other regions across the globe. This sort of reverse engineering by Danfoss has helped disrupt the energy efficiency levels in the dairy industry globally, not just in India.
These examples help us in reinforcing our investments in India. At Danfoss, we see India very soon becoming one of our Top 5 markets globally. We have made big investments here and we have seen this deliver very high growth rates for us in the last five years. This has given us the confidence to further enhance our 'Make in India' strategy and take on ambitious targets to improve our localization.
CA: What message would you give to the Indian engineering & manufacturing industries to sustain global competitiveness?
RP:
Every market is different, and today's businesses are largely driven by customer needs. The needs of customers in developed markets are different from those in developing markets and hence as a global organization our focus is on providing best in class customer experience, with our products, solutions and service.
In today's world, we see the Indian market potential and customer needs fueling more innovations from India for the rest of the world. We have many such examples where the Indian industry is showing leadership in finding solutions which meet local requirements with global standards. Because of these trends, we have built a strong plan for our R&D in India for India and are also building a deep value chain to localize these solutions for India and rest of the world.
As climate change and sustainability take centre-stage, it is an opportunity for Indian industries to show leadership in not only adopting energy efficient technologies but also showcasing best practices to the world on how these can be adopted.
An example, I would like to quote is the Acrex Hall of Fame which we have instituted along with the Indian Society of Heating, Refrigerating and Air Conditioning Engineers (ISHRAE). Here we recognize commercial buildings every year on energy efficiency and sustainability within air conditioning space which have showcased and are live iconic examples for others. Over the last three years we have seen examples from India where they have set benchmarks which are best in class not only when compared in India but also with many other regions globally.
Increasingly, every business house today has sustainability at its core. Companies who understand this opportunity and come out with solutions to tap into the same, will succeed. Having an entrepreneurial mind-set and being fast and agile are key to being globally competitive. Companies which survive are those resilient to change and fast to adapt to the needs of customers.
CA: Could you please share with us how Danfoss manages to engage with its customers across the globe and achieve success in an intensely competitive market?
RP: From a family-owned business set up in Denmark in 1933, today, Danfoss has emerged as one of the world's leading suppliers of innovative and energy-efficient solutions with a market presence in over 100+ countries. Our Danfoss DNA builds businesses on trust and integrity. We are innovative in our ambitions to exceed expectations while we treasure sustainable results. We are global yet embrace diversity and this keeps us close to all our customers across the globe.
Customers in the long run would do business only with those companies with high values, the ones which are ethical, reliable, sustainable and easy-to-do business with. In line with the UN Global Compact & Sustainable Development Goals (SDGs), we have always kept our focus high on these, be it with reference to our people, our stakeholders, work environment or the planet we live in.
For instance, we have a global target to reduce our energy intensity and carbon footprints to 50% by 2030. In line with the same, globally we have already achieved 86% of our targets, 13 years ahead of time and in India, 65% of the energy requirements at our Chennai campus is met from renewable sources. Furthermore, our campus holds the acclaim of being India's first LEED Platinum rated constructed manufacturing campus, standing proof to Danfoss' commitment to sustainability.
We steadily build our business through organic and inorganic growth, expanding our workforce and footprint across the globe and thereby, engineering a better tomorrow along with our customers.
We also support the development of local communities where we operate through our various CSR and Community Engagement initiatives focusing on education, sustainable livelihood through skill development, environment and health which include activities such as supporting schools close to our campus, restoring water bodies, etc.
In our experience, when you are interested in your stakeholders and keep their interests as your utmost priority, they in turn support you in your success journey.
back to top ^