NASSCOM 2008 India Leadership Forum ‘ Transforming IT into a competitive advantage / driving business transformation‘ Dr. Christoph Kollatz Mumbai, February 14, 2008

Responsiveness to change is more than ever key driver for sustainable competitive advantage Past Future How Analysts see the evolution of competitive advantage 1970 – 1995 Increasing productivity 1995 – 2005 Improving the cost base 2007 - onwards Enabling innovative business processes

Nowadays, driving sustainable competitive advantage requires people- , operational- and innovation excellence Managing global operations Thinking over the edge Recruit and retain key people My key elements of competitive advantage in 2010

From IT perspective sustainable competitive advantage requires the combination of efficiency and uniqueness Sustainable Competitive Advantage Degree of vertical integration Embodied industry best practices Service scope and performance Skills and mindset of key employees Presence & location Complementory services Economies of scale in R&D and production Standardization of solution designs Industrialization of service delivery Best in class global delivery processes Balance of input costs, quality and governance Efficient capacity utilization Cost Leadership Drivers of Cost Leadership and drivers of Differentiation Differentiation

Degree of vertical integration

Embodied industry best practices

Service scope and performance

Skills and mindset of key employees

Presence & location

Complementory services

Economies of scale in R&D and production

Standardization of solution designs

Industrialization of service delivery

Best in class global delivery processes

Balance of input costs, quality and governance

Efficient capacity utilization

IT partnership with Siemens IT Solutions and Services drives BBC’ transformation towards the new digital age 1 Trust and competence is key forming a 10 year £2 billion partnership contract to provide technology services to the BBC 2 Major technology transformation programme is nearing completion to prepare the BBC for new ways of working 3 Over 1,000 BBC people on-site leaving free to focus on core business – content creation 4 Cost savings to the BBC of over £20 million per annum already being delivered 5 Next challenge is extending the partnership to enable the BBC to transform in the new digital age Facts and figures about BBC and Siemens partnership

BBC’ transformation changes production, infrastructure and ways of working as well as final household delivery BBC Pre Transformation Analogue Production Traditional Ways of Working Proprietary Systems 360 view on BBC prior and after the technology transformation programme BBC Post Transformation Digital Production & Delivery New Ways of Working Flexible & Agile Technology Multiple Platform Delivery

IT has to be managed as crucial component of a company‘s competitive advantage to really become one high low low high Potential future business contribution Dependence of Business from IT Clustered IT Investments, modes for cooperation and respective KPI‘s IT R&D Projects Strategic Vertical Solution Support applications Key operational applications & infrastructure Outtasking Selective Outsourcing IT Outsourcing Process Outsourcing Alliances Shared Option Equity Model Partnering View What really matters? Costs Quality to be different

Can your company afford ignoring IT as prospective component of your competitive strategy? A strategic partner manages your technology different than a supplier. Ideas decision makers should reflect on A compelling competitive IT strategy provides your company the flexibility needed to keep responsive for change. A professional IT service firm can leverage global skills, IT innovation and efficient operations much more responsive than an IT department. Innovative IT processes are an essential lever in transforming our business towards the next level of customer and shareholder value.