Services vs product

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Explains about the pros and cons of Service based and Product based Organisation

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Services vs product

  1. 1. Services Vs Product
  2. 2. Industry Trend in India <ul><li>Services </li></ul><ul><li>Earlier on organization in services industry was based on technology and skill level. Now they have verticals. </li></ul><ul><li>Product </li></ul><ul><li>Very few companies ventured into products due to protection of IP and other obstacles. Now this section of the industry is rapidly growing. </li></ul>
  3. 3. Domain Knowledge <ul><li>Services </li></ul><ul><li>Not tied to a single domain and therefore gets more exposure to various industries but no expertise in any one </li></ul><ul><li>Product </li></ul><ul><li>You need expertise on your domain to be productive </li></ul>
  4. 4. Organization hierarchy <ul><li>Services </li></ul><ul><li>High volume of employees as services increase their profits by adding more manpower and therefore a rigid hierarchy </li></ul><ul><li>Product </li></ul><ul><li>Lesser importance to hierarchy and more weight on domain expertise and product knowledge </li></ul>
  5. 5. Life cycle <ul><li>Services </li></ul><ul><li>Life cycle which is requirements analysis, design, implementation, handover. Low consideration of future technologies or requirements. </li></ul><ul><li>Product </li></ul><ul><li>The emphasis is on to build a product that will last for several years and will undergo routine enhancements and upgrades of technology. </li></ul>
  6. 6. Decision Making <ul><li>Services </li></ul><ul><li>Decisions are taken by the client </li></ul><ul><li>You are handed specs </li></ul><ul><li>Product </li></ul><ul><li>Decisions are taken by the developer </li></ul><ul><li>You are handed a problem </li></ul><ul><li>Commitment to requirements not specification </li></ul>
  7. 7. Risk <ul><li>Services </li></ul><ul><li>Diversified to various industries and lots of employees. Bad quality of some developers don’t affect the organization neither does slump in any industry </li></ul><ul><li>Product </li></ul><ul><li>High Risk. High risk can result in high gain. </li></ul>
  8. 8. Thank You.

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