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Wipro and Forbes Insights' Global CXO Outlook: Growth Strategies for 2012 and beyond

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  • 1. Global CXO outlookGrowth Strategies for 2012 and Beyond© 2011 Wipro Ltd - Confidential
  • 2. Agenda 1 Introduction 2 Key findings 3 Seeking the key differentiator 4 Going green for business growth 5 Developing opportunities in the developing world 6 Methodology2 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 3. Global CXO Outlook An Introduction3 © 2011 Wipro Ltd - Confidential
  • 4. Introduction What are your company’s current top business priorities? Wipro in association with Forbes Insights, conducted an exclusive survey in Feb 2011 of more than 300 CEOs and other C-level executives at global enterprises Areas of focus of the study Emerging Strategic Markets Innovation Sustainable Development4 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 5. Key Findings A snapshot of insights from the survey5 © 2011 Wipro Ltd - Confidential
  • 6. Key Findings Strategic innovation • Strategic innovation is more important than ever to driving growth • C-level executives see innovation as a way to differentiate their businesses, particularly following the 2008-09 recession • Speed-to-market is necessary for successful innovation • Cost remains the biggest hurdle to fostering innovation • Paying attention to best practices is the most effective way to foster innovation Sustainable development • Executives see a very clear business case for using “green” business practices • Embracing green business practices as part of a corporate innovation strategy is essential to their success • Green IT is a priority for more than three quarters of companies • Executives see investment and expansion into emerging markets as crucial to their strategies today and in the near future Emerging markets • Expansion into emerging markets is being driven by lower costs and a higher rate of growth, according to executives surveyed6 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 7. Strategic Innovation Seeking the Key Differentiator7 © 2011 Wipro Ltd - Confidential
  • 8. Strategic Innovation : the growth engine More than 90% of respondents to the “It is critical to our customers’ survey who wholeheartedly agreed success that we continue to push on the importance to business of the boundaries of the unknown.” innovation in products and services, - Sophie Vandebroek, Xerox and business practices Did the economic downturn of 2008-09 change Importance of innovation your companys approach to innovation?8 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 9. Towards effective innovation Focusing on effective innovation Case-in-point: • Three out of four respondents say that LightRadio robust data should underpin all decisions and competitive intelligence to drive business innovation • Toyota practices kaizen or “continuous improvement,” in which teams get together not • Disruptive approach to the only to problem-solve the weak points, but also market to look at what are considered the strong points • Partnership with customers • Partnerships with Getting customer input suppliers • 81% agree that getting a product or service swiftly out to market is a critical business tactic “When there’s a big problem, Innovation requires getting products and/or we know have to change, but services to the market quickly when there isn’t a problem, we still want to innovate.” Norm Bafunno, Toyota9 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 10. Barriers to innovation Product and service innovation is less important in What are the biggest barriers your company developing markets than mature markets, according to currently faces regarding fostering 67% of senior executives surveyed. innovation? 39% of respondents point to cost as the biggest hurdle to fostering innovation Cost is seen as bigger challenge than talent recruitment and restrictive regulatory environments “One way to go beyond pure technical innovation is to work together, between research and R&D and key suppliers, to define new approaches to be the first to market with innovative products.This is one of the main elements of our strategy” – Jean-David Calvet, CPO, Alcatel-Lucent10 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 11. Tools for innovation How effective do you believe the following tools and tactics are fro business innovation? Best practices 80% of the surveyed respondents believe that attention to best practices is the premier technique Technology The next most-effective tool for business innovation is technology, rated effective by 79% of respondents Data Data-based decision-making ranks third, tied with and in collaboration with customers11 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 12. Case-in-point: Xerox The Xerox hub has adopted Open Innovation and is using the hub to expand partnerships with leading Indian technical and business schools A partnership with Another partnership the well-known A collaboration with with IIT Madras’s Indian Institute of the Indian Institute of A project with the Rural Technology Technology, Madras Science on a project Indian Institute of Business Incubator to (IIT Madras) to use on machine-learning Technology, Bombay develop innovative on-demand cloud and game-theory to develop linguistic solutions to improve computing to principles to improve databases to provide workflow at small improve the efficiency the performance of automated translation technology-based and economics of online service of documents businesses in rural document-services marketplaces India delivery12 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 13. Sustainable Development Going Green for Business Growth13 © 2011 Wipro Ltd - Confidential
  • 14. Focusing on return rather than cost Which of the following practices are most important to your company’s use of green “Companies can become believers in business practices? carbon-emission reduction if they understand that by cutting their carbon output they are taking the waste out of their systems and are driving efficiencies—efficiencies that can then be converted into cost savings better used for growth and expansion” - Justin Barrow, co-founder and chief innovation officer of China- based Climate Action Green practices are the way forward, and make a great marketing tool as they highlight the “engaged” side of a company.14 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 15. Case-in-point: CLP Holdings • The focus on coal created a dilemma for CLP Holdings when it debated its climate-change strategy • CLP balanced its generation portfolio, and moved towards de-carbonization by offsetting the emissions from coal-fired generation in part with non-fossil-fuel generation and renewable energy. • The company also changed its business approach to be compatible with global objectives for stabilizing greenhouse gas emissions to limit climate change. • In 2007, CLP developed Climate Vision 2050, which sets a group-wide target of reducing carbon-emission intensity by 75%, by 2050 Worldwide demand for electricity is “We are balancing expected to grow by 2.2% annually the economic, social, through 2035, with more than 80% of and financial goals that increase coming from non-OECD that sustainability is countries. all about” –Andrew Brandler, CLP -World Energy Outlook 2010 Holdings15 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 16. Green Innovation 100% APAC region linked green Creating an eco-friendly Reducing IT’s carbon footprint practices to innovation framework • Compete with western • Data centers are the key energy • Companies need an counterparts in the sustainable consumers organizational framework to business • Reducing data center footprints - spur green business practices. • Need to ramp up green practices common element of their green • What it takes to focus on to meet customers’ IT strategies environment – Strong executive requirements, enhanced rules leadership that is prepared to • Tighter control on make decisions environmental degradation by Asian governments • Heavy taxes and penalties imposed on polluters As part of your innovation strategy, has your Is green IT a priority for your company? company embraced "green" practices?16 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 17. Green Innovation Which of the following elements are a part of your company’s green IT strategy? Tackling climate challenges requires greater collaboration across business sectors and between business, government, academia and civil society. --World Business Council for Sustainable Development, a CEO-led, global association of about 200 companies. After laying out sustainable-development targets in its Climate Vision 2050 strategy paper, CLP carried out an exercise to educate its 6,000 employees about the targets.17 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 18. Establishing a framework Companies need an organizational framework to spur green business practices Case-in-point: After laying out sustainable- development targets in its Climate Vision 2050 strategy paper, CLP carried out an exercise to educate its 6,000 employees about the targets Green initiatives by companies cannot be successful China, for example, has set significant targets without the support of national and local governments for low-carbon energy, energy efficiency, and clean technology in its 12th Five-Year Plan covering 2011-15 India has boosted allocations for clean environment schemes in the 2011-12 budget Carbon taxes will soon become widespread globally Three out of four respondents were convinced carbon taxes would soon become widespread globally18 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 19. Emerging Markets Developing Opportunities in the Developing World19 © 2011 Wipro Ltd - Confidential
  • 20. Emerging markets Venturing into developing markets • Faster and higher growth potential compared to more mature markets. • Greater purchasing potential of consumers Challenges • Poor distribution channels • Skill shortages China and India are the most popular • Volatile political climates investment spots • Strong local and international rivals The corporate mood appears buoyant heading into 2012 The trick for foreign entrants may be to formulate business plans that consider the socio-economic trends in those emerging markets, and correctly identify the opportunities and challenges there.20 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 21. Emerging Markets In which emerging markets does your company see greatest opportunities for growth in the next two years “For companies to grow fast organically, it is necessary to grow fast in emerging markets where the rate of growth is quicker” - Wong Wai Ming, senior vice- president and CFO of Lenovo Importance of investment/expansion into emerging markets21 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 22. Emerging Markets: the driving forces What are the key drivers for your company to target emerging markets? Lower cost continues to be the key driver for targeting emerging economies22 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 23. Emerging markets: the detractors What are the key drivers for your company to target emerging markets? Poor distribution channels and political instability continue to hinder geographical expansion23 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 24. Case-in-point: Lenovo • Lenovo has launched its LePad and IdeaPad but only within China, its strongest market. • The initial focus is always on China – it accounts for about 46% of its worldwide sales, and where it has strong brand recognition Protect and attack strategy • This involves staggered launches in which it protects the core business in China and mature commercial markets, and attacks in fast-growing emerging markets such as India, Russia and Brazil. “We plan our business on a global basis but when we launch, we identify a market that will give us the best chance of success.” –Wong Wai Ming, Lenovo24 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 25. Case-in-point GAP “With regard to new countries, we take a different approach depending on the market. For instance, first we identify large markets, like China and Italy, with significant long-term upside for our brands and decide to make the investment to own and operate our own stores, whether it’s full-priced brands or our outlet models” -- Gap spokesperson. • Opened four flagship stores in Shanghai and Beijing • Offers stylish, quality products at accessible prices, all tailored to the Chinese fit • Strategy for global growth - Leverage core brands across multiple platforms, channels and geographies GOAL Gap’s goal is to improve top-line revenue, and to increase the percentage of its online and international revenue to 30% of total revenue by 2014, up from 22% of total revenue in 2010.25 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 26. Methodology26 © 2011 Wipro Ltd - Confidential
  • 27. Methodology Wipro, in association with Forbes Insights surveyed 308 C-level executives at large global enterprises with annual revenues of more than US$500 million. About a third worked for companies with annual revenues of $US5 billion or more. All respondents had C-level titles, including CEO (40%), COO (10%), CFO (13%), CIO (15%), CMO (10%), and other C-level executives (13%). They represented a wide range of industries, including manufacturing (28%), banking/financial services (23%), retail (10%), telecommunications (10%), insurance (7%), and energy (7%) Geographically, 37% of respondents were located in the U.S., 6% were located elsewhere in the Americas, 39% were from Europe/Middle East/Africa, and 18% were from Asia Pacific27 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 28. To read the complete report please visit the link below http://www.wipro.com/insights/cxo_report.htm28 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 29. About Wipro Council of Industry Research Wipro set up the Council for Industry Research, comprised of domain and technology experts from the organization, to address the needs of customers. It specifically surveys innovative strategies that will help customers gain competitive advantage in the market. The Council, in collaboration with leading academic institutions and industry bodies, studies market trends to help equip organizations with insights to facilitate their IT and business strategies. For more information on the Research Council visit www.wipro.com/insights or mail wipro.insights@wipro.com29 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 30. About Wipro Technologies Wipro Technologies, the global IT business of Wipro Limited (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company, that delivers solutions to enable its clients do business better. Wipro Technologies delivers winning business outcomes through its deep industry experience and a 360 degree view of “Business through Technology” – helping clients create successful and adaptive businesses. A company recognised globally for its comprehensive portfolio of services, a practitioner’s approach to delivering innovation and an organization wide commitment to sustainability,Wipro Technologies has over120,000 employees and clients across 54 countries. For more information, please visit www.wipro.com30 © 2011 Wipro Ltd - Confidential © 2011 Wipro Ltd - Confidential
  • 31. Thank you© Wipro Limited, 2011. All rights reserved.For more information visit www.wipro.comNo part of this document may be reproduced in whole or in part without the written permission of the authors.Wipro is not liable for any business outcome based on the views presented in this document. For specificimplementation clients should take advise from their client engagement manager. © 2011 Wipro Ltd - Confidential