Corporates used to do SWOT analysis, i.e strengths, weaknesses, opportunities and threats analysis to formulate business strategy. These days an extension of SWOT called TOWS analysis has appeared. It matches up strengths with opportunities, and threats with weaknesses. In SWOT, these four are identified with singular perspective. In TOWS, the relationships between these are identified. In TOWS chart, the internal strengths and weaknesses are intersected with the external opportunities and threats.

Strength and opportunities (SO) enable us to assess, how the strengths can be utilised to avail of the opportunities.

Strength and threats (ST) enable as to use the strengths to avoid the threats.

Weakness and opportunities (WO) enable us to utilize opportunities to overcome the weaknesses.

Weaknesses and threats (WT) enable us to minimise weaknesses and avoid threats.

Formerly technology just facilitated business. These days business is technology driven. Technology transforms the business.

There is more digitalisation. Some enterprises such as Infosys have gone fully digital and live. It has improved productivity and innovation. Manpower has to imbibe skills — both hard and soft to survive in this environment. The ability to learn with deep domain knowledge is important. Certain key skills that are valued are data literacy, technology design, analytical thinking and innovation and learning capacity.

Manpower has to be multi-modal and adaptable. They should be able to switch roles with ease. They have to leverage cloud and automation.

Apart from technical skills, manpower must have abilities to innovate, formulate strategy, demonstrate adaptability and ability to change both the business and individually. They must do design thinking. This makes them understand end-to-end customer journeys.

Manpower is sourced from outside, and at the same time the existing manpower is up-skilled and re-skilled.

Digitisation and emphasis on AI and automation makes it compulsory to be ahead of the curve in accepting next-gen technology.

Amongst the job descriptions, flexibility, critical thinking and digital skills will play a vital role.

It is a premier institute in the country that offers world class training and good placement. At times, candidates prefer CMI to the IITs. Its MSc data science course is a combination of math and computing skills. Though engineers were supposed to have good mathematical skills, the focus has now shifted to data and developments in computing in the last 4-5 years. Thus math on its own has come centre stage. The predictive models based on AI/ML across the functions depend on concepts such as probability, linear algebra, and others. Even the field of semiconductors do require math graduates. Many students at CMI pursue PG and doctoral courses. There is post-doctoral research too.

In previous years, those trained in mathematics used to serve either in research institutes or academics. Since then the avenues open for mathematics graduates have multiplied fast. Mathematics is a pre-requisite for most of the digital jobs and technology jobs.

In the new world technologies, we learn artificial intelligence, machine learning, big data, cyber-security and data science. All these fields require a strong foundation in mathematics.

Mathematics graduaties are very much in demand in the financial sector. They work on financial modelling. They do the quantitative work. The fixed income and derivatives pricing is one such area. Then there is projection of cash flows. There is risk analysis.

In the finance sector, those working in quantitative field must have knowledge of probability, functional analysis, algebraic geometry, topology, algorithms, linear algebra and statistical methods.

There is a demand for maths graduates in the field of forecasting. They run time series models and regression. They help in compliance with regulatory aspects.

Data scientists are a big help in analytics in corporates. They have good mathematical and programming skills.

In digital marketing too, we require candidates with a good knowledge stats and maths.

India’s IITs have increased the intake in maths courses. Chennai Mathematical Institute (CMI) produces good maths graduates. Indian Statistical Institute (ISI), Kolkata provides good stats graduates. They are good at running statistical tests. There are courses of pure maths and applied maths these days. Despite all this, HR managers find there is gap between skill sets of a fresh graduate and the kind of analysis job he/she is expected to perform.

The pandemic has changed one business environment. Vijay Govindarajan, Tuck School, suggest a three box solution.

Box 1 The core business is the performance engine. It must be operated at peak efficiency .

Box 2 The past success could be inhibiting. It is better to avoid those traps.

Box 3 Breakthrough ideas must be explored and a new future could be invented.

The short term challenges are addressed (box 1). There should be focus on long-term future (box 2 and 3).

Corporates must understand their customers and stay with them in adverse tines. When the environment changes for the better, these customer reward you like never before.

The emphasis was on manufacturing and supply chain during the pandemic. They should now concentrate again on customer.

Milton Friedman was of the opinion that the principal objective of a business enterprises is to generate economic returns to its owners. Later the purpose expanded from maximising returns to just shareholders to all the stakeholders — employees, customers, suppliers and communities. Business must deliver value to its customers. It must invest in its employees. It has to deal fairly and ethically with its suppliers. It must support the communities in which it works or operates. As shareholders provide the capital that allows the companies to invest, grow and innovate, it must generate long term value for them. Of late, the business is expected to work in sync with the governments and focus on goals such as hunger, health, gender sustainability and such other public goals. There should be development with a human face.

Investors also should not be obsessed with quarterly results but look long term and beyond numbers. Instead of a shareholder governance committee, we now have a stakeholder engagement committee. This shift from shareholder to stakeholder is easier said than done. CEOs have different opinions. If there is accountability to everyone, it means accountability to none.

Repurposing business has to take into account the social environment in which it operates.

Towards Better Capitalism

The old theory of business is to earn profits, but has been criticised. The new theory of business is to make it sustainable or make it socially responsible. Many new ideas such as Conscious Capitalism or Inclusive Capitalism have been invented. Many organisations have adopted these ideas. It could be called Stakeholder Capitalism.

There are five key ideas which serve as building blocks of the new theory of business. The usual dichotomies of business are given up. Instead the word AND replaces these dichotomies.

The first idea is that a business is based on both profits AND purpose. It is not either-or but both. A business survies on the basis of hard work, an inspiring vision.

The second idea is to serve the interests of both the shareholders AND stakeholders. Apart from shareholders, the business must create value for the suppliers, the employees, the customers, the society as a whole and its communities.

The third idea is to treat business as societal institution AND a market institution. Social trends and issues are important. At the same time market forces are important. We have to consider the physical environment. Business can contribute to many social issues.

The fourth idea is to have human face while pursuing economic interests. Business is both about humanity AND economics. Business has to be sensitive to natural calamities.

The fifth idea is to put Ethics AND Business on par. These are not contradictory terms.

To sum up, business must have purpose, stakeholders, societal impact, humanity and ethics. These are the five ANDs of Stakeholder Capitalism. R. Edward Freeman is the father of the Stakeholder theory. His son Ben Freeman adds the other components — profit and purpose, humanity and economics, business and ethics can go hand-in-hand.

Marketing so far focussed on one Big Idea. It exploited creativity associated with the right brain. These days, however, marketing is increasingly becoming data-driven. There is huge data about consumer behaviour, marketing channels, feedback, data from online apps and video streams, customer service etc. Marketing has to be analytical and this is associated with the left brain. This happens to be science.

There are 5000 plus mar-tech or marketing technology products to encourage marketers to embrace this change — shifiting from art to science. The science-based aspects include analytics, AI, automation, content marketing, data management, media optimization, sales automation or CRM tools etc. Mar-tech and ad-tech firms have to use these effectively.

At the time, creative ideas must be used in technical thinking. Instead of templates, we have to use imagination and inspiration.

The art of story telling must use the data with the story. There should be creative blending of data and story.  Data we seek not for its own sake, but for insights and inspiration. Data science and art folks must collaborate.

Just great brands are not enough. We have to build great brand experience. Marketing has to orchestrate the experience. Creative mad man must work with math-men. Marketing is an emotive science. It is no longer confined to right brain and left brain alone, but to the whole brain. It is a fusion of art and science.