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Rajesh Maji<br />Starting an IT Consulting Practice<br />
Agenda<br />Why consulting<br />The valued proposition of consulting practice<br />Few critical points<br />Indian consult...
Why consulting<br />For SIs, ISVs and IHVs, only dependence on technology is not sufficient as technology is evolving very...
Consulting ….. A valued proposition<br />Doesn’t depend on technology<br />Drives the revenues of existing businesses<br /...
Few critical points<br />It takes considerable long time to develop<br />A long term planning is required to develop,  com...
Indian Market<br />
Consulting, Development & Integration Service Market, India*<br />CAGR 16.8%<br />CAGR 11.5%<br />In Billion INR<br />* So...
Business consulting and IT consulting, India*<br />In Billion INR<br />* Source: Gartner1US $ = 45 INR<br />
Few areas of consulting<br />
IT Strategy Consulting<br />Business Vision<br />Financial<br />Goal 3<br />Goal 2<br />Goal 1<br />Customer<br />Objectiv...
Enterprise Architecture Consulting<br />Business Architecture<br />Application Architecture<br />Information Architecture<...
Business Agility Consulting<br />Orient<br />Market Information<br />Decide<br />Observe<br />Act<br />Boyd Cycle<br />
Few technologies, companies can bet on<br />
Top 10 Strategic Technology*<br />Cloud Computing<br />Advanced Analytics<br />Client Computing<br />IT for Green<br />Res...
A brief business model<br />
A Brief Business Model<br />Key Partners<br />Key Activities<br />Key Resources<br />Value Proposition<br />Customer Relat...
Key Partners<br />Major ISV, IHV, SI, IT Strategy consulting and Management consulting companies. Partnership is important...
Key Activities<br />Promote consulting practice with existing product and service offerings<br />Develop vertical and hori...
Key Resources<br />People and knowledge will be the key resources<br />This department should hold the knowledge base of<b...
Value Proposition<br />Consulting practice will help its customers in growing their revenues and/or reducing the costs of ...
Customer relationship<br />By introduction of consulting services, the company will share considerable risk with the custo...
Customer segmentation<br />Initially, profiling of all customers of  existing businesses and identification of key custome...
Cost Structure<br />Only major cost is in acquiring, developing and maintaining human and non-human knowledge base<br />
Revenue Stream<br />Negotiable pricing depending on the portfolios of customers and service and product offerings<br />Ini...
Recommendations<br />Initial free offerings of consulting services with the existing products and services to the existing...
Representative organization structure<br />CEO<br />Reporting to<br />Business Mgmt. Head<br />Setting of Targets<br />Ser...
Thank You!<br />Reference taken from Gartner, Businessmodelgeneration.com and CIO Best Practices by Joe Stenzel<br />
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  1. 1. Rajesh Maji<br />Starting an IT Consulting Practice<br />
  2. 2. Agenda<br />Why consulting<br />The valued proposition of consulting practice<br />Few critical points<br />Indian consulting market <br />Few areas of consulting<br />Ten technologies<br />A basic business model<br />Recommendations<br />
  3. 3. Why consulting<br />For SIs, ISVs and IHVs, only dependence on technology is not sufficient as technology is evolving very fast and sometimes is bringing destructive innovation<br />The importance has shifted from products and solutions to customers<br />Less differentiating factors in products and solutions<br />Rather than only technology implementations, companies are thinking of business process improvements and optimizations<br />From distributor to partnership, technology companies want to move up customer relationship ladder<br />
  4. 4. Consulting ….. A valued proposition<br />Doesn’t depend on technology<br />Drives the revenues of existing businesses<br />It doesn’t sell the product or solution, it only consults and gives credible advices to customers. It improves the customer facing outlook<br />It doesn’t have tangible asset. No major investment required<br />In bad economic times, it is more weathered than existing businesses<br />Can give sustainable competitive advantage<br />
  5. 5. Few critical points<br />It takes considerable long time to develop<br />A long term planning is required to develop, compound and sustain in-house intellectual capital<br />Depends on key partnerships <br />No barrier to entry. Strong knowledge base will create a competitive advantage<br />Cannot be valued in monetary terms. Market cannot predict the NPV of consulting services properly<br />Many many companies aspire for but very very few become successful<br />
  6. 6. Indian Market<br />
  7. 7. Consulting, Development & Integration Service Market, India*<br />CAGR 16.8%<br />CAGR 11.5%<br />In Billion INR<br />* Source: Gartner1US $ = 45 INR<br />
  8. 8. Business consulting and IT consulting, India*<br />In Billion INR<br />* Source: Gartner1US $ = 45 INR<br />
  9. 9. Few areas of consulting<br />
  10. 10. IT Strategy Consulting<br />Business Vision<br />Financial<br />Goal 3<br />Goal 2<br />Goal 1<br />Customer<br />Objective2<br />Objective1<br />Objective3<br />Business<br />Learning<br />Project Plan & Budget<br />Objective 1 ------------------- Cost<br />Objective 2 -------------------- Cost<br />Objective 3 --------------------- Cost<br />
  11. 11. Enterprise Architecture Consulting<br />Business Architecture<br />Application Architecture<br />Information Architecture<br />Technology Architecture<br />
  12. 12. Business Agility Consulting<br />Orient<br />Market Information<br />Decide<br />Observe<br />Act<br />Boyd Cycle<br />
  13. 13. Few technologies, companies can bet on<br />
  14. 14. Top 10 Strategic Technology*<br />Cloud Computing<br />Advanced Analytics<br />Client Computing<br />IT for Green<br />Reshaping the Data Center<br />Social Computing<br />Security – Activity Monitoring<br />Flash Memory<br />Virtualization for Availability<br />Mobile Application<br />* Source: Gartner<br />
  15. 15. A brief business model<br />
  16. 16. A Brief Business Model<br />Key Partners<br />Key Activities<br />Key Resources<br />Value Proposition<br />Customer Relationship<br />Cost Structure<br />Revenue Stream<br />
  17. 17. Key Partners<br />Major ISV, IHV, SI, IT Strategy consulting and Management consulting companies. Partnership is important for knowledge sharing and developing in-house capacity. A win-win situation has to be created for both. In return of knowledge base, the company will promote the product and services of its partners<br />
  18. 18. Key Activities<br />Promote consulting practice with existing product and service offerings<br />Develop vertical and horizontal consulting knowledge base<br />Uninterrupted information and knowledge sharing within organization as well as with partners<br />Consulting practice should be owned by all department heads and they should make joint investments to build, grow and sustain this practice<br />A structural change in the organization is recommended where all department heads will jointly set the target for this unit and a business management unit will monitor and evaluate this target<br />
  19. 19. Key Resources<br />People and knowledge will be the key resources<br />This department should hold the knowledge base of<br />Industries<br />Business processes<br />Technologies and products<br />Partners<br />Customers<br />
  20. 20. Value Proposition<br />Consulting practice will help its customers in growing their revenues and/or reducing the costs of operations and make them adaptable to any business process change by effective utilization, optimization and introduction of technology<br />Packaged offering of product, services and consulting<br />
  21. 21. Customer relationship<br />By introduction of consulting services, the company will share considerable risk with the customers, this in turn will increase customer loyalty<br />A one stop shop for all helps<br />One to one customer interaction<br />
  22. 22. Customer segmentation<br />Initially, profiling of all customers of existing businesses and identification of key customers<br />By mid term, develop industry verticals and target customers accordingly. Development of key partnerships with a number of enterprise customers is important<br />Long term strategy to market on demand consulting services to a wider market to make this service self sustainable<br />
  23. 23. Cost Structure<br />Only major cost is in acquiring, developing and maintaining human and non-human knowledge base<br />
  24. 24. Revenue Stream<br />Negotiable pricing depending on the portfolios of customers and service and product offerings<br />Initially, consulting should be prepackaged with existing product and service offerings to build its own portfolio<br />
  25. 25. Recommendations<br />Initial free offerings of consulting services with the existing products and services to the existing customers, then cross selling and in the mid to long term, as standalone service<br />Key partnership building<br />In house knowledge base development with the help of partners<br />Building a practice on future business process change and technology<br />Make this service line a profit center for the company<br />A change in organization structure shown next ….<br />
  26. 26. Representative organization structure<br />CEO<br />Reporting to<br />Business Mgmt. Head<br />Setting of Targets<br />Service Line 1 Head<br />Service Line 2 Head<br />Service Line 3 Head<br />Consulting Head<br />
  27. 27. Thank You!<br />Reference taken from Gartner, Businessmodelgeneration.com and CIO Best Practices by Joe Stenzel<br />

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