Driving Innovation Through Calculated Risk; Key Takeaways from the Entrepreneur India Event 2024 The convene also reinforced that innovation isn't just about technology. It's about improving processes, predicting future demands and making smarter decisions with the tools already available.

An impressive array of business leaders and corporate innovators discussed one of the most pressing challenges in today's business landscape: driving sustainable growth through innovation while managing risk. The discussions delved deep into strategies that businesses must adopt to navigate the evolving market demands, while also highlighting the importance of leadership, collaboration and calculated risk-taking.

One of the central themes was that innovation doesn't necessarily mean inventing something completely new. As Priyendu Jha, head of treasury at Patanjali Foods, pointed out, sometimes innovation lies in doing existing things more efficiently and tapping into changing consumer mindsets.

"Patanjali started a wellness program three or four years back. It wasn't growing fast at the time, but during COVID, there was a shift in people's health awareness. Suddenly, this business grew like anything, and today, it's one of the best-performing businesses in the Patanjali group," Jha shared.

The focus on process innovation over product innovation was a theme echoed throughout the convene. While the business model remained the same, the company's ability to adapt and efficiently reach their market was key to their explosive growth.

The Catalyst for Innovation

Risk-taking was a major focus, with several speakers reflecting on how calculated risk has propelled their organizations forward. Joseph Sudheer Reddy Thumma, CEO, Magellanic Cloud, shared his experience of venturing into drone manufacturing to meet the growing needs of India's defense and agricultural sectors.

"People call me a risk-taker, but I believe in calculated risks. We entered the drone manufacturing sector because we saw the need from the army for logistic solutions, as well as potential in agriculture," said Thumma. He explained that they invested over INR 50 crores in developing drones capable of carrying payloads of up to 100 kg at sea level and 40 kg at high altitudes.

This sentiment was shared by Himanshu Kohli, co-founder of Client Associates, who drew an analogy between risk-taking in business and sports. "Look at Sachin Tendulkar," he said. "When he first entered international cricket, he took calculated risks by batting aggressively at the lower order, which earned him a promotion to opening batsman. The rest is history—he became the highest run-scorer in both formats of the game."

Kohli stressed that risk and return go hand in hand in both business and life. "If I hadn't taken the risk of becoming an entrepreneur 22 years ago, we wouldn't have pioneered the family office concept in India. Innovation and growth are a direct result of the ability to take risks," he noted.

A Crucial Tool in Risk Management

Collaboration was another recurring theme, with several speakers highlighting the importance of partnerships in managing risk and driving growth. Dulles Krishnan, vice president, Avalara, which specializes in tax technology, discussed how businesses could offload certain risks, particularly in areas like tax compliance, to external partners.

"There's an inherent risk companies take with their business models, but there are some risks you can outsource," Dulles explained. "For instance, many companies underestimate the complexity of tax regulations, especially when trading internationally. Partnering with firms like ours helps mitigate those risks, allowing companies to focus on their core competencies."

The importance of external partnerships was also echoed by Balaji Srinivasan, executive director of Dreamfolks, who shared how his company constantly re-engineers its business model every few years to stay ahead of the curve. "If you don't disrupt your own business, someone else will. We stay ahead by anticipating market demands through workshops with our clients and partners. This keeps us two to three years ahead of the competition."

For Dreamfolks, collaboration with clients and partners was key to building products and solutions that would meet future needs.

Building a Culture of Innovation and Risk at Every Level

Another critical takeaway from the convene was the need for innovation and risk management to be embedded within the culture of the organization, from the top down. Vikas Arora, EVP & business head, Shriram Finance emphasized the importance of clear communication and establishing a "risk tolerance band" within organizations.

"Risk-taking should be encouraged, but within a defined boundary. Sometimes companies promote a culture of entrepreneurship and risk, but without clear guidelines. That's where the disconnect happens—if employees don't know the limits, they could take risks that the organization isn't prepared for," Arora explained.

He further stressed that the availability of capital is not the issue today, thanks to fintech innovations and transparency in lending markets. Instead, the challenge is ensuring companies have a clear vision of their long-term goals and the sustainability of their business model. "When I speak with promoters and CEOs, I always ask: What's your purpose? What are your long-term goals? When companies are clear about that, raising capital becomes the easiest part."

Sustainable Innovation Through Risk and Growth

Ultimately, the discussions at the Entrepreneur India summit 2024 convene highlighted that innovation and growth are not isolated endeavors. They are the result of a calculated, well-managed approach to risk. Organizations that create a culture of collaboration, foster internal and external partnerships, and clearly define their risk tolerance are more likely to succeed in today's fast-paced business environment.

The convene also reinforced that innovation isn't just about technology. It's about improving processes, predicting future demands and making smarter decisions with the tools already available. As Sanjay Mishra from Jindal Stainless eloquently put it, "Technological innovation is important, but process innovation—re-evaluating how we do things—is equally critical for sustainable growth. So if we deploy technological innovation along with process innovation, I'm pretty sure that would be the key for us to be a sustainable organization rather than just focusing on technology."

With risk, collaboration, and innovation at the forefront, businesses are better equipped to navigate the uncertainties of the future and achieve long-term success. Sometimes, innovation isn't about doing something new—it's about doing something better; and as the convene demonstrated, in an era where the pace of change is faster than ever, doing something better might just be the key to staying ahead.