Cognizant has developed a framework called the Cognizant Value Creation Framework to help clients optimize costs, improve effectiveness, leverage virtualization, and foster innovation. The framework uses a methodology called the Cognizant Value Discovery Assessment to benchmark clients and identify opportunities across these four value levers. Cognizant then works with clients on a two-stage implementation process - Optimize to streamline costs, followed by Extend to extend benefits through virtualization and new revenue opportunities. The goal is to transform businesses for new levels of performance.

1. • Future of Work
A New Value Creation Model for a
New Workplace Reality
Technological, social and economic forces are reconfigure and redeploy their core business
driving enterprises to rethink fundamental business processes, and guide them step-by-step to new
assumptions. The rise of cloud computing, the levels of performance.
proliferation of social networks to access collective
At Cognizant, we are already partnering with the
knowledge, the emergence of Millennials –– the
world’s leading companies to do just that. We cre-
“digital generation” –– as both employees and
ated the Cognizant Value Creation Framework
customers, and the continued push toward glob-
through an intensive and rigorous two-year
alization are all transforming businesses, while
process in collaboration with leading global
forcing them to be more virtual, collaborative, and
companies worldwide. This framework helps
connected.
guide our clients through the process of recon-
In this evolving environment, businesses are figuring their business models and operational
rethinking conventional notions of how work is processes to become next-generation businesses
done, where it is done, and by whom. Reaching with enhanced levels of performance.
new thresholds of performance will require
The Cognizant “Diamond” framework is based on
businesses to reinvent many of their existing
four value levers (see chart on following page):
knowledge processes –– how they organize
teams, gather and share knowledge, cultivate 1. EFFICIENCY
innovation, allocate resources, engage with
employees and customers, and build partnerships. Optimizing the cost structure of the business,
This is the future of work –– and the future has streamlining processes, reducing waste, and
arrived. generating higher returns on investment.
New Framework for Creating Value 2. EFFECTIVENESS
In the current economic climate, forward-thinking Improving productivity and operational performance
companies know they need to do more than simply in such areas as quality control, customer satis-
contain costs. They need to create value –– for faction, decreased time to market, etc.
customers, employees, and all stakeholders. As
3. VIRTUALIZATION
businesses rethink their mission-critical business
processes in this unfamiliar landscape, they will Sharing work processes, knowledge and technology
need a partner who understands the changing both within and outside the enterprise in a collab-
nature of work –– and can help them benchmark orative and flexible manner.
their current position, define a new vision, help
Cognizant Value Creation Framework | November 2010

2. Cognizant “Diamond” Framework
VIRTUALIZATION
Shift capex from context to core...
EFFECTIVENESS BUILDING INNOVATION
Improve quality, control, STRONGER Creating new
customer satisfaction... revenue streams...
BUSINESSES
EFFICIENCY
Eliminate waste, streamline processes..
4. INNOVATION economies of scale, leverage global service delivery,
maximize value-added activities, and achieve
Fostering the capacity to create new products,
maximum efficiency from existing technology,
services, channels, and market opportunities that
systems, and business processes. The value
will result in new revenue streams.
unlocked by the Optimize process can then be
Within this framework, the Cognizant Value re-invested in new business opportunities identified
Discovery Assessment (CVDA) methodology is during the Extend stage of the CVDA process.
used to map a company’s current performance
relative to these four axes. We then help the
• EXTEND
client stake out a new position, defining the right The next stage of transformation is to extend the
balance of these factors that will deliver the enterprise’s value-creation capacity beyond current
greatest value going forward. In this manner, we limits. We do this by identifying core business
identify opportunities to leverage the client’s cost processes that can benefit from new techniques,
base, improve business processes, unleash the such as the virtualization of services, globalization,
power of virtualization, and harvest innovative and cloud-based computing. The objective of this
ideas for profitable growth. stage is to accelerate collaboration and flexibility,
and thus integrate innovation in products, services,
Practical Transformation and delivery channels. One of our core principles
The CVDA framework is divided into two imple- is that there should be no organizational boundaries
mentation stages: Optimize and Extend. For each on where innovation comes from. Using new
stage, we collaborate closely with the client to techniques, the entire enterprise –– and customers,
define program objectives, responsibilities, and too – can be brought into the innovation process,
metrics for transformation, as well as a clear yielding new products and services that are
return on investment (ROI). We then apply our already “customer-tested” and “customer-certified”
benchmarking and analysis methodologies to in advance. This results in additional revenue-
track, manage, and measure progress toward generating opportunities, taking business per-
meeting these pre-set goals and ROI metrics. formance to new levels.
• OPTIMIZE Practical Business Process Solutions
In the first stage of the CVDA methodology, we Our approach recognizes that, in the changing
work with the client to unlock value by optimizing work environment, optimizing cost efficiency is
the cost structure of core operational processes. the starting point for value delivery. Our CVDA,
In the Optimize process, we ensure that the business however, extends the potential of the business by
is operating efficiently and effectively. We design improving key operational processes, applying
solutions that extract costs from our customer’s virtualization techniques across people, processes
operations, apply Lean principles to eliminate and platforms to achieve more innovative and
waste and inefficiency, take advantage of collaborative ways of working.
Cognizant Value Creation Framework 2

3. The CVDA: Transforming Over Time to Extend Value
Future state
Virtualization
Current state Intermediate state
Virtualization Virtualization
Optimize Extend
Innovation Innovation Innovation
Effectiveness Effectiveness Effectiveness
Efficiency Efficiency
Efficiency
Enabling capabilities
To produce meaningful value, business process business as a means of reaching new performance
solutions must be rooted in a deep understanding thresholds. Starting from the optimization of cost
of the unique requirements and challenges of structure, we then extend the benefits of our
each industry and each business. For this reason, global services solutions across the entire enterprise
an important part of our Extend phase is to identify –– mapping a course toward the right balance of
industry-specific customer business processes efficiency, effectiveness, innovation and virtual-
for which we can provide high-value, productized ization to transform the business.
solutions. Tapping our deep industry domain
With our broad portfolio of information technology,
expertise, we have created end-to-end, cloud-
consulting and business process outsourcing
The Cognizant Value Delivery enabled business
services, we have extensive global resources, a
process solutions in
Assessment methodology helps several industries. portfolio of world-leading partners, and a track
clients define the right balance record of providing strategic solutions to our
of Efficiency, Effectiveness, By freeing our clients clients’ most complex needs.
to focus on high-value
Virtualization and Innovation to And, as a global and highly virtual organization,
activities that are core
transform the business and to their businesses, our
we practice what we preach. Our Cognizant 2.0
maximize value. collaboration and knowledge-sharing platform
business process solu-
enables the seamless sharing of insights and best
tions deliver strategic value. For example, a leading
practices across our global delivery network,
pharmaceuticals company worked with us to create
allowing us to bring the best resources and most
a next-generation enterprise analytics and
relevant expertise to any client, anywhere.
reporting solution for its commercial operations.
Not only did the company realize cost and The Cognizant Value Creation Framework is helping
process efficiencies, but sales and marketing clients embrace new ways of working. We are
effectiveness soared. committed to delivering next-generation solutions
to enable your business now to meet tomorrow’s
These industry-focused business process solutions
challenges.
can be readily adapted and applied to the client’s
business to drive immediate performance Start Today
improvements and help our clients deliver differ-
entiating value to their customers. For more information on how to drive your busi-
ness results with Cognizant, contact us at
A Passion for Building Value inquiry@cognizant.com or visit our website at
www.cognizant.com.
Our Value Creation Framework and CVDA
methodology offer a new pathway to business
process improvement. These tools enable a deep
exploration of a company’s specific industry and
Cognizant Value Creation Framework 3

4. A Cognizant Framework for Disruptive Value Creation
Value Lever Summary Typical Customer Benefits
Efficiency Leveraging Cognizant's process, technology, and Cost optimization via global service delivery,
global delivery strengths to rapidly and cost- economies of scale, etc.
effectively design and implement solutions that
Maximizing use of existing assets and resources to
optimize spend, reduce unit costs, and eliminate waste, reduce cost per unit, and implement
positively impact your bottom line. cross-organizational standards for lower cost.
Subscription-based pricing to reduce capital
expenditures while optimizing processes.
Effectiveness Improving productivity and operational Process optimization that fosters quality
performance via standardization, better tools, improvements while controlling costs.
automation, etc., to achieve more effective
Increased control, transparency, and adaptability of
business processes (driving reduced ticket ongoing operations.
volume, higher levels of availability, streamlined
Decreased time-to-market for products and services.
processes, improved satisfaction metrics, etc.)
Virtualization Addressing multiple levels of virtualization Consolidated resources that enable lower cost of
including work (global knowledge and ownership on existing assets and reduced
collaboration), process (atomization of investment on new technology.
processes), and technology (servers, Improved flexibility and collaboration across the
applications, cloud-enablement) helps lower enterprise through technologies that allow better
operational and CAPEX costs while boosting resource utilization, new ideas, and knowledge
brand and shareholder equity. management for global workers.
Innovation Business technology innovation to enhance Growth opportunities that provide direct revenue.
revenue opportunities via new products, new IP,
Refined business models that drive additional
new market channels, etc., facilitated by
revenue and strengthen bottom and top lines.
Cognizant's domain expertise and knowledge.
Joint go-to-market opportunities with shared
investments and revenue.
About Cognizant
Cognizant (NASDAQ: CTSH) is a leading provider of information technology, consulting, and business
process outsourcing services. Cognizant’s single-minded passion is to dedicate our global technology
and innovation know-how, our industry expertise and worldwide resources to working together with
clients to make their businesses stronger. With over 50 global delivery centers and more than 100,000
employees as of December 1, 2010, we combine a unique global delivery model infused with a distinct
culture of customer satisfaction. A member of the NASDAQ-100 Index and S&P 500 Index, Cognizant is
a Forbes Global 2000 company and a member of the Fortune 1000 and is ranked among the top infor-
mation technology companies in BusinessWeek’s Hot Growth and Top 50 Performers listings.
Visit us online at www.cognizant.com for more information.
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