MGN-101

Unit-I

Skill Development and

Technological Innovations
 Skill Development and Technological
Innovations

Learning Outcomes
Students will be able to-
•Learn to understand technological innovation
•Understand Importance of Skill, Reskill, Up
skill and know the Skill Gap existing
•Able to analyze Importance of Skill
Development
•Role of Innovation in the present context
 Technological Innovation
• A technological innovation is a new or
improved product or process whose
technological characteristics are significantly
different from before.
• There are two primary types of technological
innovation:
• incremental
• radical.
 Benefits of Technological Innovation

There are a number of benefits that businesses

can enjoy by investing in technological
innovation, even in the face of uncertainty.
• Increased Productivity and Efficiency
• Improved Decision Making
• Increased Flexibility
• Improved Customer Experience
10 uses of technology in 21st century jobs

• Communications technologies
• Office productivity
• Record keeping and retrieval
• Internet and search
• Decentralized work and cloud computing
• Analytics and new decision structures
• Automation, robotics and future factories
• Adoption of virtual and augmented reality
• Conversational systems: Chatbots, assistants
• Information security
Difference b/w Creativity, Invention and
Innovation
• The concept of Innovation formed only in 20th
Century.
• Innovation in its current connotation is a “new
idea, creative thoughts, and new imaginations
in the form of mechanism or technique.”

• Innovation refers to the application of better

solutions that meet new necessities, tactic
needs, or existing market needs.
• Innovation involves purposeful application of
information, thoughts and scheme in deriving
better or dissimilar values from resources and
includes all procedure by which new ideas are
created and transformed into constructive products.

• Innovation is the process of transforming an idea or

invention into a good or service that creates value
for which customers will pay.

• An idea can only be called an innovation when it is

replicable, economical and satisfies a specific need.
 Technological Innovation
• Innovation vs. invention
• “Invention” can be defined as the creation of a
product or introduction of a process for the
first time.
• “Innovation,” on the other hand, occurs if
someone improves on or makes a significant
contribution to an existing product, process or
service.
 Process of innovation
Five basic steps:
1. Idea Generation and Mobilization
2. Advocacy and Screening
3. Experimentation
4. Commercialization
5. Diffusion and Implementation
 The 4 types of innovation
Innovation can be classified into two
dimensions :
– Technology
– Market
The 4 types of innovation
 Incremental Innovation
• Incremental Innovation is the most common
form of innovation. It utilizes your existing
technology and increases value to the
customer within your existing market.
• Examples include adding new features to
existing products or services or even removing
features (value through simplification) like
Android phones, beauty products and so on.
 Disruptive Innovation
• Disruptive innovation involves applying new
technology or processes to your company’s existing
market.
• This newer technology is often more expensive, has
fewer features, is harder to use, and so on.
• It is only after a few iterations that the newer tech
surpasses the old and disrupts all existing companies.
• By then, it might be too late for the established
companies to quickly compete with the newer
technology. E.g., digital music.
 Architectural Innovation
• Architectural innovation is simply taking the lessons,
skills and overall technology and applying them in a
different market.
• This innovation is amazing at increasing new
customers as long as the new market is receptive.
• Most of the time, the risk involved in architectural
innovation is low due to the reliance and
reintroduction of proven technology.
• Though most of the time it requires tweaking to
match the requirements of the new market.
 Radical innovation/invention
• Radical innovation is what we think of mostly
when considering innovation. New market
and new technology.
• It gives birth to new industries and involves
creating revolutionary technology.
• The airplane, for example, was not the first
mode of transportation, but it is revolutionary
as it allowed commercialized air travel to
develop and prosper.
 Importance of Innovation
• Innovation helps in solving problems
– Providing customer services virtually (online)
– Helps in adopting to change to the situations
– Business to remain relevant
– Globalization can be tapped
– Enter the foreign markets with new products
– Helps organization to face the competition
 Challenges
• Technological failures
• Financial burden on organization
• Innovation comes with a cost
• Innovative products gives returns in long run
• Market failure
• Lack of structural and financial capacity
 Technology
• Technology can be defined as an application of
knowledge that leads to production and
marketing of goods and services.
• Technology develops business by providing
technical knowledge for the goods and
services that firm produces.
• Technological innovations implies new
technology, creating new products and
services, New businesses.
 Features of Technological innovation
• Generate or create new idea which is based
on technology, capability or knowledge
(invention).
• Develop the idea into a reality leading to
building of a product (realization)
• Implement the new idea (implementation)
 1
• Apple i-phone is-
• A. invented
• B. innovated
 Answer
• Apple i-phone is-

• B. innovated
• Because it used earlier technologies and
improvised on it like GPS.
 2
• On the basis of which of the following two
parameters the types of business innovation
are classified-
• A. Market and technology
• B. Market and customer
• C. Technology and investment
• D. Investment and profit
 Answer
• On the basis of which of the following two
parameters the types of business innovation
are classified-
• A. Market and technology
 Skill
• An ability and capacity acquired through
deliberate, systematic, and sustained effort to
smoothly and adaptively carryout complex
activities or job functions involving ideas
(cognitive skills), things (technical skills),
and/or people (interpersonal skills).
Skill development
12 years education is though necessary,
may not bring a job but 12 weeks
training will definitely do
 Statistics
Statisticsfrom
fromILO
ILO
• International Labour Organisation (ILO) data
suggests that there will be 29 million skills in
deficit by 2030, which is expected to cause a
$1.97 trillion loss in GDP if not controlled.

Read more at:

https://economictimes.indiatimes.com/tech/tech-bytes/or
ganisations-around-the-world-are-struggling-with-skill-ga
p-says-yvette-cameron/articleshow/84550321.cms?utm_
source=contentofinterest&utm_medium=text&utm_camp
aign=cppst
 Man Group’s Report
• According to Man Group’s report of
Talent Shortage 2020, 63%
companies in India report shortage of
talent employees, mainly in IT,
engineering services and Sales.

Read more at:

https://economictimes.indiatimes.com/indu
stry/services/education/bridging-indias-ga
ping-skill-gap/articleshow/90208286.cms?
utm_source=contentofinterest&utm_mediu
 The Ministry of Skill Development and
Entrepreneurship
• The Ministry of Skill Development and Entrepreneurship
was set up on 9 November 2014 to coordinate all skill
development efforts across the country.
• Industrial training, and other skill development
responsibilities were transferred from the Ministry of
Labor and Employment to this newly made ministry on 16
April 2015.
• It aims to remove the disconnect between demand and
supply of skilled manpower, to build the new skills and
innovative thinking not only for existing jobs but also for
jobs that are to be created.
Skill Gap
• Indian engineers are far behind their global counterparts when it

comes to honing relevant digital skills in the global job market,

namely advanced tech skills such as artificial intelligence, machine

learning, data science and wireless technologies etc.

• Only 2.5% of engineers in India possess artificial intelligence skills

while only 5.5% are qualified with basic programming abilities.

• These statistics project a despairing figure of only 1.5% engineers in

India being fit for new-age jobs.

Skill Gap: India vs. the World
Country Skilled Workforce (%
of Population)
China 45%
UK 70%
Japan 80%
Germany 74%
South Korea 96%
India 2%
 India’s challenges
• School drop out rates
• Lack of formal vocational education
• Lack of capacity for skill training
• Lack of skilled trainers
 Sectors having high demand for skilled
workforce
• Construction and real E-state
• Mining
• Steel industry
• Medical and Para-medical
• Pharmaceuticals
• Electrical and chemical
• Oil and Gas
 Recap Question
• Skill India is focused on imparting
• A. General Education
• B. Vocational Education
• C. Environmental Education
• D. Language Education
 Answer
• Skill India is focused on imparting
• B. Vocational Education
 The National Skill Development
Corporation India (NSDC)
• The NSDC was set up as a Public Private Partnership Company in 2008
in order to create and fund vocational training institutions, and create
support systems for skills development.

• In light of the introduction of the GST in 2017, NSDC and the Institute of
Company Secretaries of India (ICSI) collaborated to train over 100,000
people as GST experts to help the corporate sector with accounts work.

• The NSDC has trained more than 5.2 million students, and it has also
created 235 private sector partnerships and 38 Sector Skill Councils
(SSC) in various industries.
 Sector Skill Councils (SSC)
• The SSCs operate as an autonomous body. NSDC is mandated
to initiate and incubate SSCs with initial seed funding to
facilitate their growth.
• Identification of skill development needs including preparing a
catalogue of types of skills, range and depth of skills to
facilitate individuals to choose from them.
• Development of a sector skill development plan and
maintaining skill inventory.
• Determining skills and getting them notified as per National
Skills Qualifications Framework (NSQF).
 NSDA
• National Skill Development Agency(NSDA) is an
autonomous body under Ministry of Skill
Development and Entrepreneurship that anchors the
National Skill Qualifications Framework and allied
quality assurance mechanisms.
 State Skill Development Missions (SSDM)
• Honorable Prime Minster addressed to all Chief Minister’s on
accelerating action for skill development and making two
specific suggestions for the State Government:

• Making available the buildings of public educational

institutions after class hours for skill development activities.
• Setting up State Level Skill Development Missions to provide
inter-sectoral coordination at State level may be chaired by
Chief Minister .
• Government of India is willing to extend all possible support in
the matter through institutional arrangements already created
at its level
 Pradhan Mantri Kaushal Vikas Yojana
(PMKVY)
• Union Cabinet has approved the Pradhan
Mantri Kaushal Vikas Yojana (PMKVY) with an
outlay of Rs.1,500 crore to train 24 Lakh
Indians.
• Launched in 2015
 Key characteristics of PMKVY
• Aims to impart skill training to youth with
focus on first time entrants to the labour
market and class 10 and class 12 drop outs.
• The scheme will cover 24 lakh persons & skill
training would be based on the National Skill
Qualification Framework (NSQF) and industry
led standards.
 ………..
• Skill training would be on the basis of skill gap
studies conducted by the NSDC
• Training would include soft skills, personal
grooming, behavioral change for cleanliness,
good work ethics and so on.
Courses to be included under PMKVY
 Q1
• Prime Minister Narendra Modi unveiled National
Policy for Skill Development and
Entrepreneurship 2015 is intended to replace the
___________.

a. National Policy on Skill Development 2009

b. International Policy on Skill Development 2009
c. National Policy on Skill Development 2004
d. National Policy on Skill Development 2000
 Answer
• Prime Minister Narendra Modi unveiled
National Policy for Skill Development and
Entrepreneurship 2015, is intended to replace
-

a. National Policy on Skill Development 2009.

It is the first such policy on entrepreneurship

since independence in India.
 3
• :To provide gainful employment the most important
mechanism is imparting/developing ?

• A. Education

• B Skill

• C. Urbanization

• D. Social Awareness
 Answer
• :To provide gainful employment the most
important mechanism is imparting/developing
?
• B. Skill
 4
• NSDC stands for-
• A. National Skill Development Corporation
• B. National Skill Development Company
• C. National Skill Development Co-operation
• D. None of the above
 Answer
• NSDC stands for-
• A. National Skill Development Corporation
 QUIZ
• SSC stands for-
• A. Sector skill councils
• B. Sector skill councilors
• C. Sector specific councils
• D. Sector specific councilors
 Answer
• SSC stands for-
• A. Sector skill councils
 2
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
is associated with-
• A. Make in India
• B. Skill development
 Answer
• Pradhan Mantri Kaushal Vikas Yojana (PMKVY)
is associated with-

• B. Skill development
 Skill Loan Scheme
• The skill loan scheme was launched with an intent to support
the youth willing to take up skill training program in the
country.
• This Skill Loan Scheme replaced the earlier Indian Banks
Association (IBA) Model Loan Scheme for Vocational
Education and Training.
• Any Indian National taking admission in a course offered by
ITI, Polytechnics, school recognized by Central or State
education Boards, college affiliated to recognized university,
training partners affiliated to NSDC, SSC, SSDM, can avail
loan under the scheme.
• The repayment period under the scheme is 3 to 7 years.
• This scheme does not discriminate against women.
 2
• Skill India Campaign was launched on ______.

a. 13th July’15
b. 14th July’15
c. 15th July’15
d. 16th July’15
 Answer
• Skill India Campaign was launched on ______.
• c. 15th July’15