Innovation Through Collaboration

Innovation through Collaboration Addressing Flat World Challenges in the Hi-Tech Industry Oracle Open World – September 24, 2008 Chandra Shekar Kakal Senior Vice President & Global Head, Enterprise Solutions Infosys Technologies Ltd.

Traditionally Hi-Tech Companies have had a Linear Approach to the Supply Chain Serve Deliver Build Procure Plan Design/ Proto Customer Needs Customer Supplier /Contract Manufacturer Organisation Channel Partner/3PL The Linear Approach had some key issues
Limited Supply Chain Visibility
Inconsistent Partner Collaboration
Inflexible Distribution Processes
Excess Inventory
Stock Outs and Delays

High-Tech Companies adopted Collaboration 1.0 Paradigm to address issues with the Linear Supply Chain Approach Vendor Managed Inventory (VMI) Collaborative Planning, Forecasting and Replenishment (CPFR) Processes Collaboration 1.0 Paradigm involves collaboration across geographies with contractors, suppliers and partners in areas like procurement and logistics Serve Deliver Build Procure Plan Design/ Proto Customer Needs Collaboration 1.0 Serve Deliver Build Procure Plan Design/ Proto Customer Needs Linear Supply Chain Model Reduced time to Market Collaboration Touch points: External - Supplier External - Channel External - Combination Internal

Key Application Platforms like ERP, SCM and SRM enabled Collaboration 1.0 Paradigm Key Platforms
ERP
Supply Chain Management (SCM)
Supplier Relationship Management (SRM)
Transportation Management
Warehouse Management
Product Data Management
EDI
Key Functional Areas
Procurement
Logistics
New Product Development
Oracle Demantra Oracle Transportation Management Create Shipments (Deliveries) Customer OEM Plan Rate Execute Route OTM (OEM) EBS (OEM) Buyer Logistics Planner Create Orders Ship Notice Plan, Execute and Track Deliveries Planned Shipments Actual Shipments Third Party Logistics Provider Actual Deliveries Receive Order Information Send Delivery Information Contract Manufacturer Manufacturing Receive Build Information Send Built Product Information to 3 PL

Four Mega Forces that are “Flattening” the business world have forced Hi-Tech companies to rethink their Supply Chain Approach and Operating Models

Infosys believes that companies need to shift their operational priorities along four dimensions to compete effectively in the “Flattening World” Traditional Business Model SHIFT FROM Cost as a barrier to growth Loyalty through good service Spending money on information Winning in the straightaway “ Think Flat” Model SHIFT TO Cost as a fuel for growth Loyalty through faster innovation Making money from information Winning in the turns

To study the impact of the “Mega Forces” on the Hi-Tech industry, Infosys and Economist Intelligence Unit (EIU) conducted a survey of over 100 Industry Execs Two of the shifts that are of higher relevance to the Hi-Tech Industry are discussed in detail in subsequent slides SHIFT TO Cost as a fuel for growth Loyalty through faster innovation Making money from information Winning in the turns
On behalf of Infosys, the Economist Intelligence Unit surveyed 100+ executives from key High Tech industry segments
The research objectives were to:
Understand executives’ view of the impact of the mega forces and their response to these
Identify opportunities to win in the flat world
Change Drivers Preferred Strategies Planned Actions

The survey results demonstrated that customer loyalty is weakening faster than ever Data based on a published Survey on Flat World titled ' Mind the gap’ Jointly executed by Infosys and Economist Intelligence Unit SHIFT TO Cost as a fuel for growth Loyalty through faster innovation Making money from information Winning in the turns Key Finding Customer Service is now a “Hygiene Factor” Key drivers for customer loyalty are Faster Innovation and Concept to Market Product Co-creation Enabling Customer Collaboration

Further, quickly delivering new products and services to market (to address weakening customer loyalty) was a priority for 89% of Hi-Tech executives Data based on a published Survey on Flat World titled ' Mind the gap’ Jointly executed by Infosys and EIU SHIFT TO Cost as a fuel for growth Loyalty through faster innovation Making money from information Winning in the turns

Co-creation and customer collaboration are 2 of the most significant initiatives planned to speed up product innovation and address weakening customer loyalty Data based on a published Survey on Flat World titled ' Mind the gap’ Jointly executed by Infosys and EIU SHIFT TO Cost as a fuel for growth Loyalty through faster innovation Making money from information Winning in the turns Service Customer Segments Differently Enable Customer Collaboration Co-create Products with Customers and Partners Speed Innovation through Prototyping Develop and Track Innovation Metrics 0% 20% 40% 60% High-Tech OEM High-Tech SW & Services

Also, Information Sharing across business units and functional areas (to enable co-creation & collaboration) is a priority for 89% of Hi-Tech executives Data based on a published Survey on Flat World titled ' Mind the gap’ Jointly executed by Infosys and EIU SHIFT TO Cost as a fuel for growth Loyalty through faster innovation Making money from information Winning in the turns

Hi-Tech companies plan to invest in tools that leverage structured/unstructured information in external/internal data sources to enable information sharing SHIFT TO Cost as a fuel for growth Loyalty through faster innovation Making money from information Winning in the turns Unstructured Information Notes Desktop Files Speeches E-Mails Blogs Websites Media Products Reviews Competitor Reviews Structured Information Internal External Partner Data Customer Data Product Evaluations Purchased research ERP Data

A set of emergent Web 2.0 technologies is augmenting the Traditional Platforms enabling enhanced Customer Management Web 2.0 SHIFT TO Cost as a fuel for growth Loyalty through faster innovation Making money from information Winning in the turns Functional Areas Operation/Logistics New Product Design Procurement Customer Management Platforms / Technologies Traditional Emerging Traditional Emerging SCM ERP B2B EDI SRM Blogs RSS Social Networking Tags Wikis PLM

These emergent Technologies have enabled initiatives by Hi-Tech companies to adapt to “Flat World Shifts” and helped spawn Collaboration 2.0 Paradigm Collaboration 2.0 Paradigm extends Collaboration 1.0 Paradigm to focus on co-creation with customers and partners Serve Deliver Build Procure Plan Design/ Proto Customer Needs Collaboration 2.0 Serve Deliver Build Procure Plan Design/ Proto Customer Needs Collaboration 1.0 Reduced time to Market Customer Organisation Channel Partner/3PL Collaboration Touch points: External-Customer External Partnership Driving Product Innovation Metrics for effective innovation and process optimisation Information Optimization tools & Technologies

Across the hi-tech industry, Collaboration 2.0 Paradigm has helped Hi-Tech companies in various ways Complementary Insight from structured and unstructured data Lower Operating Risks Faster Decision Making Knowledge retention

Many Hi-Tech Companies have been leaders in adopting Collaboration 2.0 Paradigm
Fortune 500 Global Communications Leader
Intranet 2.0 is a successful Web 2.0 initiative with 70,000 users including partners
4000+ Blogs and wiki pages used to reduce product development times
Fortune 500 Consumer Electronics & Software
Products Co.
Seamless customer experience (hardware, software, community)
Ecosystem as sustainable strategic advantage
Fortune 500 Mobile & Communications Service Provider
Insight & Foresight, Innovent groups identified disruptive technologies and new business models
Concept Lounge invited designers to share ideas and design their next cool phone
Fortune 500 Search Engine and Web Products Co.
Continuous innovation with products refined through user interactions
Rapidly expanding scope of operations
Graphic Communications Group of Fortune 500
Photo Imaging Co.
Launched a Web2.0 Graphic Community
Print service providers can establish networks to distribute services, load balance print services and outsource products
Provides a marketing supply chain to marketers to promote products
Fortune 500 Networking & Communications
Technology Co.
Re-focusing on a cloud based collaboration platform through acquisitions.
Facilitates internal and external collaboration for idea generation using forums like I-Zone and I-Prize

Among others, a High-Tech Major has leveraged the “Social Networking” emergent technology to accelerate innovation through improved collaboration Business Need
Engage and collaborate to deepen brand loyalty and thus increase average selling price
Launch direct to consumer touch points and interaction
Provide a state-of-the-art integrated web platform at a low Total Cost of Ownership
Make the web a viable business channel for marketing & sales
Business Benefits
Ability to rapidly prototype new functionality to support innovation
Analyze social analytics to decipher external unstructured information including consumer sentiments & preferences
Drive shorter time to market
Enables 360* customer information view & cohesive web 2.0 experience

Hi-Tech companies should focus on some key initiatives to derive maximum advantage from Collaboration 2.0 Paradigm
Strategic Planning Council
Collaboration touch points
Invest in new and emerging Collaboration Technologies
Judiciously combine traditional technologies and emergent technologies
Pilot the Concept to Market
Hi-Tech companies that combine traditional and emergent technologies will be better positioned to create competitive advantage in the Flattening World

Thank You “ The contents of this document are proprietary and confidential to Infosys Technologies Ltd. and may not be disclosed in whole or in part at any time, to any third party without the prior written consent of Infosys Technologies Ltd.” “ © 2008 Infosys Technologies Ltd. All rights reserved. Copyright in the whole and any part of this document belongs to Infosys Technologies Ltd. This work may not be used, sold, transferred, adapted, abridged, copied or reproduced in whole or in part, in any manner or form, or in any media, without the prior written consent of Infosys Technologies Ltd.”

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Innovation Through Collaboration

by Infosys on Oct 20, 2008

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