Taking POLE position
The world of ESO
Kazim Ali Khan Ma Foi

Engineering …An industry called as ESO

YOU NEED TO KNOW…

From the context …
1. The Italian word "ingeniator" means "the ingenious one," and who else but
Leonardo Da Vinci could be called the "Ingegnere Generale"?
2. For a long time, the word engineer was most associated with the military
engineer, or someone who constructed war machines
3. France boasts the first school of engineering, the National School of Bridges and
Highways, established in 1747, which trained civil engineers who built structures
such as sewer and water systems, railroads and even cities
4. Civil engineering evolved hand in hand with mechanical engineering, which
looked at all types of machinery

MAKING POSSIBLE….
Design Build
Landscape Designing Teams
Interior
Designing
Structural
Design Architecture
Building
Information Mode
Energy
Modeling
Project Engineering
Management
Construction

SEIZING OPPORTUNITY

SUPPLY Engineering Services Application
Product
Product
Engineering
Engineering
Process
Process
Engineering
Engineering
Electronics
Electronics
And
And
Telecommunication
Telecommunication
Power &
Power & Plant
Plant
DEMAND
Control
Control Automation
Automation
systems
systems
Enterprise
Enterprise
Asset
Asset Aerospace
Aerospace
Management
Management And
And
Defence
Defence
Industrial
Industrial Utilities
Utilities
Construction
Construction
Maintenance
Maintenance

ES and Scope…
Aerospace
Product & Component Design
Automotive
Plant Design
Process Engineering
Hi tech/ Telecom
Plant Maintenance and Operations
Construction and Industrial Machinery

ES Value Chain…
2d/3d Modeling
Major Engineering Process
Applications
Engineering Change Order
Documentation
Embedded Software Core Design
Development
Conversions
High End Engineering
Testing and Analysis
•PLM Solutions •Design Analysis
•Design Analysis
•Product Redesign •Testing and Simulations
•Testing and Simulations
Reverse Engineering

Existing ES Market…
Plant engg - plant layout, plant design, material flow simulation and process
optimization
Automotive & aerospace sectors
R&D Concentration on High Tech Industries
Embedded & Electronic segment – Communications (Largest customer)
Key services in Embedded/ Electronic System Chip Design,
Mechatronics, board design, testing and Prototyping

Global ESO -- India
Global ESO India

Global ES.. constituents
Global Project Teams
Corporations
Baby boomers retiring!
Project and Knowledge
Management
Direct Stake Holders
Business Governmental Organizations
Paradigms mySAP ERP
Rapid Changes in In
Business and
Engineering Private Stakeholders
Technology
Services
Innovation and
Service Providers & NGOs
Productivity Improvement
Contemporary Industry Practise Indirect Stake holders Skills

Emerging Paradigm

ESO – India
1. Global ESO market is estimated $40B by 2015
2. Opportunity for India – Automotive, Aerospace and hi-tech industry
3. Indian competitive services include CAM, CAE etc., while vertical
specific engineering services offer PLCM, Re-engineering and
design change management
4. ESO is one such segment that is fast catching their attention
55% of the market is controlled by IT service providers,
40% is with captives and the rest is catered by the niche players

ESO - India
5. Major thrust – ES as a segment in multi-disciplinary viz., automotive,
aerospace, high-tech/telecom, utilities and construction/industrial
6. ^60% is aerospace, auto and telecom
7. Concerns – IP, lack of resources, domain knowledge, lack of
understanding what really works with outsourcing
8. Domain knowledge, process expertise, flexibility around business
models, long-term scaling engagements and ability to weave into a
customer’s product development program life cycle
9. Engineering sourcing is a high potential area of focus

Opportunity landscape
cash
Telecom Switch Design flow
Leverage
Aerospace Landscape
Aircraft Engine Improve
Efficiency
Complete end to end
Product Design
Drafting
Accelerate time
Product Definition Time-to-Benefit
Technical Publishing Reduce Initial
Investments
Process Expertise

Opportunity landscape
Apart from modeling and detailing
1. Knowledge based engineering
2. Digital manufacturing
3. Product Lifecycle mgt
4. Technical publication
5. Sourcing and manufacturing services
6. Plant solutions
7. Integrated Asset mgt
8. Remote monitoring an diagnostics and geospatial solutions

Drivers
• Reduce Cost
• Get High Quality Talent
4Spend on
• Cut Time
Engineering
services is
under pressure • Access to new markets
to produce
• Grow Capacity
increasing
returns
• Provide Direct Support to Customers
• Simpler to manage

Factors – Critical Success…
Complexity due to deliverables
High Iteration
Managing Teams
Measuring Productivity Difficult
Commitment
Very High Domain Knowledge
Transition From
Careful Provider Strategic
Planning Selection Management
High Degree of Knowledge transfer Leadership
Higher Transition costs
Customer Cost Exit High
Functional Needs
Systems Economics

Challenges…
1. IP protection orientation
2. Technical/domain expertise
3. Advanced technology and infrastructure
4. Product development/process innovation expertise
5. Sector-specific engagement/business models
6. Complex project management know-how

Future ahead
1. ES – Not just about creating digital models and drawings
2. India with manufacturing industry – automotive, aerospace, mining
and construction
3. Develop IP in some core areas
4. Global markets stabilized and R&D spends are boosters
5. Focusing on innovations – automotive platform development,
energy efficient/climate change solutions
6. Provide ‘design-cum-manufacturing’ offerings
7. Nuclear deals, advancement in aerospace industry and defense
sectors sparks
8. Value arbitrage – competitive products, quick time to market,
innovation and high value work

ESO – In perspective
Process standardization
Value Arbitrage Criticality of Work
Increased ownership
Buyers Sellers
Profit
Price
0
Base
Business
Volume
Time Other
Components
Time to market process Great Efficiency Client focus Choosing Right Service
Provider
Other Forms
Price
$/Project
$/Unit
Revenue
Cost
Cost Base
Business
Q2 Q4 Q6 Q8 Q10 Key Asset Spin-Outs
Project Type
Post-Launch

ESO – In perspective
Magnitude Factors
High Degree Knowledge Transfer
Large Number Players
Highly Iterative Standards
Very High Domain Knowledge
High Customer Cost
High Degree Commitment

CASE IN POINT
AEROSPACE & AUTO INDUSTRY

ES - Auto Sector…

ES - Aerospace Industry…

LANDSCAPING ….TALENT
Workforce Size & Availability
Domain and Industry
Need for Alliances Expertise
Attractive
Language and Sources Work force
Geopolitical Training &
Factors Cultural Cost Education
Compatibility
Engineering
Infrastructure Engineering
Services
Threat Level
Competitiveness
Highest
Medium
Government
Physical Low
Policy &
Infrastructure Lowest
Regulation

Creating - Ecosystem
Major Industry;
National Aerospace Aerospace &
Policy Automotive
Stick to High Domain
Commitments Knowledge
Driven by offset
environment
Going up the Expanding Domestic
Value Chain Market
Create Pool
of Tools Demand for high end
Curriculum sophisticated machinery
Revamp
Special Purpose
Public Machines
Awareness
Easy Access to Cutting Machines
Companies Spark erosion Machines
Events and activities Outside India
to Promote the Chemical etching and
Aerospace Sector Bending machines

FEW THOUGHTS …
1. Making policy formulation, re-hauling engineering education, filip to institutes like IIT
re-
etc., is key for engineering development
2. Use talent that drives – DRDO, HAL, NAL, BEL and other defense PSUs leaderships for
policy formulation
3. Engaging aerospace specialists from western countries
4. Development of aerospace engineers and database of relevant people – thru PPP
people
5. Industry regulator and attention by industry fora like Nasscom, CII etc
Nasscom,
6. Creating a pool of tools and equipments that can be used, laboratories, wind tunnels
laboratories,
and lightning strike facilities, simulation environments etc
7. Finally fly more and airlines should make flying easier on the pocket and the mind to
pocket
enable this

Appreciate YOUR TIME!