“ Building a differentiator around design, developments and opportunities in D&E services” Krishna Mikkilineni February, 12, 2009

Context India’s opportunity to tap the ESO is high $30B by 2020, will require ~230K engineering resources Increased VC/ PE investments Government incentives driving investment e.g., Offsets: Indian Air Force floats global tender for 126 fighters Engineering Service is different from IT in many ways Investment intensive Business model Long cycle time Different competition Need a different approach Domain knowledge Mindset Ownership & life cycle involvement Focus and structure Differentiation & IP

India’s opportunity to tap the ESO is high

$30B by 2020, will require ~230K engineering resources

Increased VC/ PE investments

Government incentives driving investment e.g., Offsets: Indian Air Force floats global tender for 126 fighters

Engineering Service is different from IT in many ways

Investment intensive

Business model

Long cycle time

Different competition

Need a different approach

Domain knowledge

Mindset

Ownership & life cycle involvement

Focus and structure

Differentiation & IP

Engineering Service is different from IT in many ways Product vs Process Orientation Top line vs Bottomline impact Long lead time vs Shorter delivery cycle Basic Maths & Science skills vs ability to learn software skills Domain vs Functional Expertise Higher lead time for reskilling High business impact on IP (rights and protection) vs relatively lower IP issues Fundamental technology realization vs Future Technologies orientation / leverage Different competition (countries and players) vs common competitive field Multiple business models linked to product vs standard models with cost & delivery differentiation

Product vs Process Orientation

Top line vs Bottomline impact

Long lead time vs Shorter delivery cycle

Basic Maths & Science skills vs ability to learn software skills

Domain vs Functional Expertise

Higher lead time for reskilling

High business impact on IP (rights and protection) vs relatively lower IP issues

Fundamental technology realization vs Future Technologies orientation / leverage

Different competition (countries and players) vs common competitive field

Multiple business models linked to product vs standard models with cost & delivery differentiation

Differentiated approach in Domain knowledge Maths, Science & Engineering skills Future Technologies orientation & Fundamental technology realization Domain & Technology Expertise IP creation & leverage Systems Engg Supply Chain

Maths, Science & Engineering skills

Future Technologies orientation & Fundamental technology realization

Domain & Technology Expertise

IP creation & leverage

Systems Engg

Supply Chain

Differentiated approach in Mindset Ability to withstand the pain of years of delivery cycle Maintenance capabilities, knowledge repository Collaboration, Eco system leverage End-customer proximity for real time need capturing Business and technology Maturity

Ability to withstand the pain of years of delivery cycle

Maintenance capabilities, knowledge repository

Collaboration, Eco system leverage

End-customer proximity for real time need capturing

Business and technology Maturity

Product lifecycle involvement External / Marketing collaboration Maturity Framework Business ownership Differentiated approach in Ownership & life cycle involvement Development Introduction Growth Maintenance Maturity Saturation Decline Time Task Features Sub systems / components Systems Products Business Model Road map PLC Ownership

Product lifecycle involvement

External / Marketing collaboration

Maturity Framework

Business ownership

Product level / COE level / Center level maturity Centralized vs de-centralized vs localized structure Strategic excellence & global partnerships Differentiated approach in Focus and structure Outcome oriented structure Business vertical based service org Product / COE centric Org LOB / Department / vertical Integrated Managed Services

Product level / COE level / Center level maturity

Centralized vs de-centralized vs localized structure

Strategic excellence & global partnerships

Compliance to standards, regulations, certifications Knowledge network Product roadmap & technology definition Business alignment Regional marketing connections & VOC Innovation, IP Eco-system leverage and mentoring Build Differentiation & IP

Compliance to standards, regulations, certifications

Knowledge network

Product roadmap & technology definition

Business alignment

Regional marketing connections & VOC

Innovation, IP

Eco-system leverage and mentoring

Opportunity is big Game to be played differently Long term play & ability to take risk Innovation and ownership mindset In a nutshell

Opportunity is big

Game to be played differently

Long term play & ability to take risk

Innovation and ownership mindset