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Marketing IT amid Global Crisis - An strategic perspective Marketing IT amid Global Crisis - An strategic perspective Presentation Transcript

  • Ravi Shankar @ Marketing IT amid Global Crisis An strategic perspective.
  • Talk of the hour……... Business Overview Market Scenario Global Outlook Internal IT Market Scenario Conclusion & Focus SIBIN it Group’s other Current status Future strategy Business Interest @
  • Global Financial Situation – An outlook
  • Global Macro Economic Situation 0.9
  • Some key facts about US economy
    • Sharpest Fall in 7 yrs
    • With Financial turmoil this could mean potentially lengthy US recession
    • Consumer Spending which fuels 2/3 rd of US economy, fell at a 3.1 %,
    • First cut in quarterly spending since the closing quarter of 1991.
    • Spending on non durable goods e.g. food paper products – dropped at
    • the sharpest rate since 1950.
    • The GDP number does not reveal the weakness because of the impact
    • of international trade, which shows how weak the economy is.
    • Continued job losses coupled with declined in value of stocks.
    • Sub prime crisis with other investments have put consumers under sever
    • stress.
    • Disposable personal income dropped at an 8.7 % rate in the 3 rd quarter,
    • steepest since 1947.
  • Indian Macro Economic Situation Growth Vision The GDP Forecasts FY 2009 FY 2010 RBI 7.5 % NA NCAER 7.6 % NA Morgan Stanley 6.4 % NA Goldman Sachs 7.5 % 7.0 % Citigroup 7.2 % Best Case 7.4 % Worst Case 5.8 % Base Case 6.6 %
    • Erosion of margin due to high interest cost.
    • Tepid growth in gross capital formation, it can plummet to 2 % from 13.7 % in the year ended March 2008.
    • Sub-7 GDP growth in 2009-10 would arise from intensification of financial stress and global recessionary condition.
    • Intensified financial stress and risk aversion has resulted in tight liquidity condition
    Key Facts about Indian economy
    • Intensified financial stress and risk aversion has resulted in tight liquidity condition
    • Recessionary conditions in US and European market will result in moderation in growth from more than 24 % in the recent past to 19 % in 2009-10.
    • Export grew at its slowest pace in last 18 months as a weakening global economy damped demand for the nation’s products.
    Key Facts about Indian economy
    • $1 trillion economy
    • One the economies driven by domestic consumption and investment rather than completely on exports.
    • Crude and other commodities raced towards their peak in the first half of 2008 which indirectly resulted in stock prices tumbling as input become costlier.
    Is Indian economy still robust???
    • Rise in saving and investment by 10 % in last 5 yrs, which has been sustained through productivity improvement s and rising inflow of FDI.
    • From being and agrarian economy, growth currently is a result of the economic cycle upturn, urban/ services-led consumption, outsourcing and the trickle down effect.
    • Structural India story still in place (Pull factor for FDI)
    Is Indian economy still robust???
    • Indian exports about 85 % of its oil requirement and hence the drop in prices augurs well for the trade and current account deficits.
    Is Indian economy still robust???
  • Global IT Spending and Investment Forecast 175,700 153,500 113,725
    • Just under half - 43 %, - of western companies are cutting back their IT spending
    • Nearly 30 % are scrutinizing IT projects for better returns
    • IT spending for 2008 in China, Russia and India is surging forward at 18 % growth far ahead of the 5.2 % increase globally
    Global IT Spending and Investment Forecast
  • Global IT Spending Patterns
    • Overall levels of spending in the West in 2008 are predicted to remain far higher than emerging market overall.
  • SOFTWARE EXPORTS – GLOBAL REACH F.Y. 2006-07 F.Y. 2007-08
  • SOFTWARE EXPORTS – SEGMENT WISE
  • Overall corporations spend by Industry Verticals Chemicals: 2000: 3.09% 2001: 3.51% 2002: 2.68% Construction & engineering: 2000: 1.55% 2001: 2.03% 2002: 1.43% Consumer products: 2000: 3.52% 2001: 4.33% 2002: 3.64% Electronics: 2000: 3.14% 2001: 3.20% 2002: 2.95% Energy: 2000: 2.56% 2001: 4.71% 2002: 2.2% Financial: 2000: 6.76% 2001: 6.09% 2002: 6.64% Food/beverage processing: 2000: 2.31% 2001: 2.56% 2002: 2.13% Health care: 2000: 4.33% 2001: 4.81% 2002: 4.42% Hospitality & travel: 2000: 1.71% 2001: 1.72% 2002: 1.55%
  • Overall corporations spend by Industry Verticals Information technology: 2000: 4.13% 2001: 4.68% 2002: 5.13% Insurance: 2000: 3.78% 2001: 4.11% 2002: 3.49% Media: 2000: 3.66% 2001: 3.95% 2002: 4.13% Metals/natural resources: 2000: 1.84% 2001: 2.30% 2002: 2.01% Professional services: 2000: 5.11% 2001: 6.39% 2002: 5.12% Retail: 2000: 1.64% 2001: 1.80% 2002: 1.63% Telecommunications: 2000: 5.79% 2001: 5.88% 2002: 6.40% Transportation: 2000: 3.79% 2001: 3.93% 2002: 4.17% Utilities: 2000: 3.61% 2001: 3.90% 2002: 2.43%
  • FY07 Vertical market exposure for industry exports
  • Domestic IT Services Revenues by Key Vertical Markets (2004)
  • Growth of IT Spending in India
  • Five Year Revenue Forecasts for Key Service Lines in the Domestic Market (INR Million)
  • Is Indian economy still robust??? IT spending Till 2010 Asia Pacific’s 10-16% India’s 17.6-24% China 10-13% Global IT spending 3.3-6.5%
    • North America would see its IT spending grow about 5% and Europe, 4-5%. Spends in the US would move in the range 2.5-6%, reflecting a dip in the nearer future and then picking up towards 2010.
    • Companies in emerging markets, which are in their growth phase, have a greater requirement for building IT infrastructure. A recent CIO survey in India showed that most domestic companies don’t have scalable IT systems.
    Is Indian economy still robust???
    • The opportunity in India and China is also highlighted by the large presence of small and medium businesses (SMBs) in these emerging markets. According to IDC, about 23.4 million SMBs – nearly one-third of the global total – are located in Asia-Pacific, excluding Japan.
    • These also represent an untapped market with a large potential. For instance, the SMB share of IT spending in India is forecast to grow from 38% per cent currently to over 50% by 2015.
    Is Indian economy still robust???
  • What the credit crunch means for IT
    • Hardware and software vendors will feel the squeeze
    • Hastening the move to SaaS and open source
    • Outsourcers tied to an industry in crisis
    • In the long term, outsourcing booms
    • Every cloud has a silver lining
    • Faster shift of jobs from West to East
    • Contract workers will suffer
    • Financial services divisions will take a hit
    • Global IT spend will be resilient to the economic slowdown
    • More home workers
    • Trying to get best pricing and terms for their IT purchases
    • They will ensures they get the best value from their IT purchases.
    • - Buy only functionality that works, and that they actually need
    • - Avoid hidden costs and risks
    • Identifying major cost-saving opportunities
    • - Whether their spending is higher, relative to best-in-class peers.  
    • They would implement cost-savings technologies
    • In implementing priority technology.
    • Application Rationalization
    • .
    What are the next strategy of companies on tech spending
    • Implement cost-saving process improvement
    • - In achieving hard-dollar savings from process improvement
    • - Project prioritization or portfolio management
    • - Offshoring or outsourcing
    • - Asset management
    • - Workforce optimization
    What are the next strategy of companies on tech spending
  • Next level of game for SIBIN it
  • My strategies
  • How ??? Pressures     Actions Capabilities   Enablers   Need to demonstrate and improve Return on Marketing Investment (ROMI)  Track customer behavior Measure customer value KPIs  Real-time analytics  Define and develop customer profitability and lifetime value models  Have processes and systems in place that utilize customer information to support Sales & Marketing operations  Customer Data Integration (CDI) and data management  Define and track marketing programs  Develop a cross functional Customer Intelligence Center of Excellence  Statistical modeling and analysis  Customer routing and lead prioritization based on channel, cost and capacity 
  • Closing the Circle of Lead Management
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