Sickness or illness in general means the unwellness in the function of a part or all of an organism. This state showcases the improper functioning of various parts and how it impacts the governing of rest of the parts as well. Sickness is a versatile term not just limited to humans, animals or other living organisms. We, at Nescode believe that any ecosystem as a whole where various living creatures reside itself as a living platform.
Industries comprise of several organizations which in turn consists of various people. Hence, industries themselves are a living hub. So, it is well evident that they do fall sick. Well, they might not have kidney, heart and lungs but, they do have huge areas and functional units that if effected, may cause them huge losses not only in the monetary terms but also in terms of impacting the other functional units. Nescode has conceptualized industrial sickness after a deep observation and research. Allow us to take you through these observations by going through this blog.
A sick industry isn’t a biological term, rather, it is technical in nature. A sick industry refers to an organization whose revenue stream is not in sync with the company mission and vision or is in a loss equivalent to or greater than the company’s net worth at the end of a financial year. Such an industry may be in a form of a cash loss or other financial resources loss. In such a situation, this would mean that the company is dependent on other company for loans and are unable to repay the debts.
From people point of view, a sick industry is the one which makes the ecosystem vulnerable for the workforce to work, gain knowledge or earn. This is technically explainable as, since the organization is in debt, it won’t be able to pay its workforce. Or, it may also reduce its workforce removing people from jobs. This mostly happens in private industries. The other way may be deploying people on different jobs other than their domain which may rise a form of disparity among the people. Human resources are the biggest strength of any organization. Organizations should conceptualize it as if there is a huge workforce it consists of various people and hence multiple Perspectives. Hence, in any unfavorable circumstance, the best of the perspective can be chosen and applied. Also, instead of taking financial help from the fellow organizations, one should first look towards bankers and government regulated bodies as they would be running various schemes which would help to repay the debts easily.
Industrial sickness in India has been facing instances of growing sickness over the years. In a growing and developing country like India, huge amount of banking funds getting locked up is a serious threat for the industries and the GDP of the nation. Survey shows that India faced this sickness before the liberalisation and globalisation period. And, after 2001, Many small scale industries started coming up. But, due to several internal and external factors, they couldn’t sustain and hence, increased the industrial sickness in India. Further, various stakeholders and the disputes among them gives rise in such sickness.
After a detailed study, Nescode realized that the cause may be internal or external. Also, we found that industrial sickness occurs usually in the small scale industries than the SMEs or MNCs. There are various internal causes that may be involved. Due to lack of planning, finance and poor execution model, industries may have poor equity base, they may have less finance accumulated for the internal functioning and projects. Manufacturing industries may at times face problem in selection of site, plant and machinery due to their bad production policies. In manufacturing sector, manpower, production and distribution model is still not synergized with natural workflow and due to that manufacturing sector are struggling even to make workforce engaged. The biggest contributor towards industrial sickness is the Marketing sickness. Poor marketing strategy holds back the industry promotion. Further, improper Personal and Corporate management leads to internal industry destruction.
There are a number of external reasons also involved. One of the reason where most of the sectors struggle is workforce skills and they invest heavily to make them skilled. Another reason used to be the restriction in marketing policies and frequent market shift contributes in the industrial sickness by manyfolds. For manufacturing sector, obviously the unavailability of raw materials, increase in the prices of fuel sets the industry back.
The way a sick person visits a doctor for the remedy, the same way there should be ways and means in which industries would have all the access, ways and means to seek advices in case of facing sickness or even forecasts to avoid the sickness. In the sickness scenarios, the major roles are played by the technical consultants, professional counsellors, bankers and advanced management.
Technical Consultants can give an overview from technical perspective as to what industries require in terms of mechanism, infrastructure or strategy planning. Professional counsellors are highly knowledgeable people themselves who have an understanding of the industry at the grass root level and hence are aware of all the entities that may go wrong or the ones which may help in avoiding the sickness. Also, these people are really good at analytics and generating significant data from insights. Bankers are the people who help the whole nation in difficult times so, why not industries. A consultant from a banking background can address the financials complexities of an industry. Improper finance is the biggest factor for the industries to fall sick. Bankers are the right set of people who can form schemes or draft strategies in case of financial crisis. Also, since they understand every bit of the finance sector they can help the government in forming appropriate schemes and guidelines to save industries. Furthermore, personal management and company management at one's homeground would ensure a check on how we are performing and how the industry works on it.
At Nescode, We offer comprehensive and customized consulting services to an entrepreneur right from understanding their mission and vision to execution modeling on ground. Our functional and technology consulting services are backed by the best practices to address the ongoing volatility and uncertainty inherent in today’s marketplace. In today’s marketplace, companies need to be ready for whatever is thrown at them. Our advanced business and management consulting gives you an insight and understanding of what steps should be taken in such crucial circumstances and what should be done to avoid falling sick.
At Nescode, we believe in identification and implementation of best strategies, technology and business model to stay competitive in a constantly changing world. We won’t be able to make a sustainable business model until and unless we are unifying the technology, business and people. And we would be able to unify only when we can find the right answer of who, why, when and where and optimize the resources as per on ground equation. An integrated network of technology, business and people provides visibility and transparency, fosters better collaboration and communication within an ecosystem.
Last but not the least is to drive strategy and thinking with the latest thinking in digitization, enabling business to respond dynamically and effectively to changing demands triggered by digital disruption. Our research and development team, always try to measure the innovative ideas, technological trends and develop a roadmap to meet business objectives. We have demonstrated our expertise to increase revenue through new market entry, decreased cost, improved asset utilization and by increasing efficiency.
Illness or sickness is not just for human functioning. It is evident for everything related to humans directly or indirectly and industries are one such place. Industries should be prepared beforehand to tackle any such situation. And how about if industries take well planned measures well in advance to avoid any such situations? Being a part of the industry, this is where exactly we, at Nescode, help and take pleasure in helping fellow organizations to tackle such unfavorable scenarios and most probably in managing and mentoring them to avoid falling sick.