FACTORS ENABLING SYSTEMIC INNOVATION CULTURE IN INDIAN IT INDUSTRY By: Murali Krishna Swaminathan (EN. NO. GG 1111) (Research Scholar – PhD Program at AMU)

International Conference On Innovation & IPR-ICII2015 SYSTEMIC INNOVATION Set of interconnected innovations, where each is dependent on the other, with innovation both in the parts of the system and in the ways that they interact. India – An emerging economy Innovation in emerging economies, types of innovation, Need for India to Innovate International Conference On Innovation & IPR-ICII2015

International Conference On Innovation & IPR-ICII2015 FLOW OF STUDY STATEMENT OF THE PROBLEM NEED FOR THE STUDY RESEARCH METHODOLOGY SAMPLING TECHNIQUES MEASUREMENT TECHNIQUES STATISTICAL TOOLS USED SCOPE OF THE STUDY DATA ANALYSIS SUMMARY OF FINDINGS AND CONCLUSION Need for an innovative culture and innovation practice within organizations and employee , pilot study, Primary data- Structured questionnaire, validated by 8 experts, reliability by- Split half alpha method- developed by Brown and Prophacy, 0.84 coefficient value for reliability, 15 sample size from all strata, predominantly from south, 5 point likert scale- no to fully coded 1 to 5, Tools- simple tabulation, central tendency distribution, chi- square test for hypo testing, TV < CV = accept alternative hyp, other wise reject, scope is wide in all the sectors .statistical pkg used- Mini tab 17.0 both for descriptive and inferential statistics International Conference On Innovation & IPR-ICII2015

OBJECTIVES OF THE STUDY To study the need for systemic innovation in IT industry. To trace the interaction between employees, organization and their eco system and its impact on systemic innovation. To find key indicators of innovation levels in Indian IT industry. To investigate whether Existing Processes, Policies, Strategies and framework support Innovation To understand the State of Employee Participation and Preparedness for fostering Innovation. To study the Eco-System Support conduciveness for Innovation. To develop a model, based on the findings of the research study and analysis with recommendations for enabling systemic innovation culture within Information Technology industry in India Indicators of Systemic innovations- productivity, economy at micro and macro levels, organizational vision, mission support innovations International Conference On Innovation & IPR-ICII2015

DATA ANALYSIS &INTERPRETATIONS- DEMOGRAPHIC VARIABLES Characteristics Category Respondents Number Percent Type of Company MNC 6 40.0 IT service 5 33.3 Public Sector 4 26.7 Company size Medium 0.0 Large 15 100.0 Location North South 9 60.0 Total   MNC are more compared to IT Service and Public sector companies Innovation process adopted in the sample comprising of all companies ( predominantly large sized companies). Sample mix has companies more from South compared to North region International Conference On Innovation & IPR-ICII2015

Response on Innovation Process of Company Respondents Number Percent No 0.0 Partially 6 40.0 Fully 9 60.0 Total 15 100.0 Employees opine more on fully innovation process International Conference On Innovation & IPR-ICII2015

Classification of Innovative Level Category Response Number Percent Low   ≤ 50 % Score 4 26.7 Medium 51-75 % Score 11 73.3 High > 75 % Score 0.0 Total 15 100.0 Opinion rated from no to fully, 1-5 coded, adding the opinions, totaling, as per statistical norm if less than 50%- it is declared low, between medium, more than 75% is high, best can be explained with statistical curve, International Conference On Innovation & IPR-ICII2015

HYPOTHESIS AND TESTING FROM THE STUDY 1. (H0) Eco system is not primary reason of Innovation. TESTING: MEAN %- Emp-53.8, Organization – 50.7, Eco- sy- 48.7 –accepted Employee have more impact than Eco System. 2. (H0) Innovation is independent of Type of the company  TESTING: Significant, Null hypothesis rejected 3. (H0) Innovation is independent of Location of the company  TESTING: Non- Significant, Null hypothesis accepted.  4. (H0) Innovation is independent of Innovative process of the company TESTING: Significant, Null hypothesis accepted Also: (H0) Innovation is independent of Financial Incentives. (H0) Innovation is dependent on Human Workforce gender.  significant, Null hypothesis rejected – irrespective of financial incentive , employees are innovation inclined  Non significant, Null hypothesis accepted – male seems to be more innovative International Conference On Innovation & IPR-ICII2015

Aspect wise Mean Innovative Response (H1) The Eco-System support is the primary reason for the success of Innovation. (H0) Eco System is not the primary reason for Innovation. No. Aspects Statements .Score Obtained Response   Min. Score Max.Score Mean SD (%) I Employees 17 85 39 48 44.73 3.9 53.8 4.5 II Organization 43 215 87 126 109.00 11.5 50.7 5.3 III Eco system 2 10 5 4.87 1.3 48.7 2.6 Combined 62 310 133 179 159.60 13.7 51.5 4.4 Employees exhibit greater innovative culture as compared to Eco- system And Employees make organizations! Employees Mean Innovative Response is more when compared to Organization or Eco System Mean Innovative Response. Based on mean and std deviation, employee seem to have more impact on innovation than that of eco-system. Can therefore suggest from sample study that Null Hypothesis is accepted wherein Innovation is independent of Eco System Support; and thereby rejecting the alternate hypothesis that eco system is the primary reason for the success of innovation. Needs to be collaborated with Chi Square Analysis during main study. International Conference On Innovation & IPR-ICII2015

International Conference On Innovation & IPR-ICII2015 HYPO 2: ASSOCIATION BETWEEN TYPE OF COMPANY AND INNOVATION LEVEL IN IT INDUSTRY Alternate Hypothesis: (H1) Innovation level is dependent on Type of the company. Null Hypothesis: (H0) Innovation is independent of Type of the company Type of Company Innovation Level χ 2 Value Low Medium Total N % MNC 1 16.7 5 83.3 6 100.0   6.90* IT service 0.0 Public Sector 3 75.0 25.0 4 26.7 11 73.3 15 Significant association exist between type and innovation level, Better conducive vision and mission and organization structure, better is the innovation. Chi square analysis reveals that the association between type of company and innovation level is significant at 5% level. Hence the null hypothesis “ Innovation Level is independent of type of company” is rejected and alternate hypothesis “ Innovation level is dependent on type of company” is accepted. International Conference On Innovation & IPR-ICII2015 X2(0.05, 2df) = 5.991

International Conference On Innovation & IPR-ICII2015 HYPO 3:ASSOCIATION BETWEEN LOCATION OF COMPANY AND INNOVATION LEVEL IN IT INDUSTRY (H1) Innovation level is dependent on Location of the company. (H0) Innovation is independent of Location of the company Location of the company Innovation Level χ 2 Value Low Medium Total N % North 1 16.7 5 83.3 6 100.0 0.51 NS   South 3 33.3 66.7 9 4 26.7 11 73.3 15 Location of companies has no impact on innovation process. Chi Square analysis reveals that association between location of company and innovation level is non-significant at 5% level and hence null hypothesis – Innovation is independent of location of the company is accepted and alternate hypothesis – Innovation level is dependent on the location of the company is rejected. International Conference On Innovation & IPR-ICII2015 X 2 ( 0.05, 1df) = 3.841

International Conference On Innovation & IPR-ICII2015 HYPO 4:Association between Innovation Process and Innovation Level in IT INDUSTRY Null Hypothesis: (H0) Innovation is independent of Innovative process of the company Alternate Hypothesis: (H1) Innovation level is dependent on Innovative process of the company. Innovation Process Innovation Level χ 2 Value Low Medium Total N % Partially 4 66.7 2 33.3 6 100.0 8.18*   Fully 0.0 9 26.7 11 73.3 15 Is positive, fully innovation process leads to high innovation level, need for high process is traced. Chi Square analysis reveals that the association between Innovation Process and the Innovation level is significant at 5% level. Hence Null Hypothesis that Innovation Level is independent of Innovation Process of the company is rejected, and Alternate Hypothesis – Innovation Level is dependent on Innovation Process of the Company is accepted. X2 (0.05, 1df) = 3.841 International Conference On Innovation & IPR-ICII2015

International Conference On Innovation & IPR-ICII2015 FINDINGS The respondents are predominantly taken from MNC and large companies like public sector and IT services companies. Systemic innovation process is more prevalent in these. The location distribution of respondent companies reveals slightly more from south as compared to north region. International Conference On Innovation & IPR-ICII2015

International Conference On Innovation & IPR-ICII2015 2: Innovation process determines innovation level of the companies. More than 50% of respondent companies have fully innovative process. 3:Medium level of Innovative process is more adopted. It is interesting to know that no company has high innovative process, revealing the immediate need for improvement. 4:On the basis of Mean and Standard deviation it can be concluded that employees seems to have more impact on innovation level than that of Eco- system. It needs to be collaborated by Chi-Square analysis. International Conference On Innovation & IPR-ICII2015

International Conference On Innovation & IPR-ICII2015 5: Chi Square analysis reveals that the association between type of companies and Innovation level is significant at 5% level. The Alternate hypothesis that Innovation level is dependent on Type of the company is accepted. 6: Chi Square analysis reveals that the association between Location of company and Innovation level is Non-significant at 5% level. Hence the Alternate Hypothesis that Innovation level is dependent on Location of the company is rejected and Null Hypothesis is Accepted. International Conference On Innovation & IPR-ICII2015

International Conference On Innovation & IPR-ICII2015 7: Chi Square analysis reveals that the association between Innovation process and Innovation level is significant at 5% level. Hence the Alternate hypothesis that Innovation level is dependent on Innovative process of the company is accepted. International Conference On Innovation & IPR-ICII2015

International Conference On Innovation & IPR-ICII2015

International Conference On Innovation & IPR-ICII2015 CONCLUSION FINDINGS SUGGEST A MODEL FRAMEWORK TO INCORPORATE COLLABORATION BETWEEN THE EMPLOYEE, ORGANIZATIONAL AND ECO- SYSTEM RELATED CONTRIBUTING FACTORS SUCH A FRAMEWORK SHOULD SERVE TOWARDS AN IMPROVED INNOVATION LEVEL & CULTURE WITHIN THE INDIAN INFORMATION TECHNOLOGY INDUSTRY. Summarily, from sample study, growing awareness of the complexities, interdependencies and interconnections of the challenges we face, together with the technologies and tools to better understand those systems, have brought the need for systemic innovation culture that is grounded across the dynamics played all together between Employee, Organization and Eco-System. Need to expand into a fuller study and cater to foster innovation culture within Indian IT industry is a follow up candidate. International Conference On Innovation & IPR-ICII2015