Indian IT industry Managing Non-Linear Growth

•

1 like•848 views

Pooja Sharma

Paper Presentation at IIM Bangalore on the Challenge faced by Indian IT Industry in creating non-linear growth models

Business

The Indian Software Industry
Managing non-linear growth
Moving up the value chain
- A Practitioner's Perspective -

C V Jayanthi
– Independent Consultant
Pooja Sharma
– Sr. Consultant, Leading IT Company
Excerpt of Paper Presented
at IIM, Bangalore

CONTENTS

• Points of Inflexion
• Non-linearity via industrial
revolution

• Non-linearity in branch next door
• Varied views of the elephant
• Moving Up the value chain
• Back to first principles

2

Point of Inflexion
Growth drivers Diminishing
marginal utility

Cost
Arbitrage

Abundant
Resources

3

Non-linearity via Industrial Revolution!

- creation of specialised units
Structural -participative labour engagement models
changes : -outsourcing non-core work
value – added
products

Specialization in India
strengths : Good domestic
markets

- Outmoded machines
-Labour issues :
Large composite mills : end-to-end approach numbers, productivity
: spinning, weaving, designing training

4

Non –linearity in the branch next door?

Servicing –
Branch, e-
banking
channels
Functional Collections
Head Office depts Sales –
– central
Branch +
recovery +
agency
Circle / agency Customer,
Functional Functional
Regional/ depts + depts + Revenue,
Zonal admin admin
Compliance -
sales, sales, sales, Compliance – Bank Operations
Branch operation, operations, operations, Risk
– Back-
compliance compliance compliance management
office
+ Tech
Product –
Technology +
Business

5

Varied views of the elephant…..

Platform based
offerings – Cloud,
SAAS, PAAS…
Automation in low-value
jobs - RIM

New business models –
pay as u go Cross-industry process
adaptation - lean 6

Moving up the value chain - Technology for technology
industry…..

Futuristic technologies like robots, artificial intelligence
7

Moving up the value chain - Pricing Models
Capex - Opex models

Business
value linked
Basic – benefit-
business based
linked –
Fixed price, transaction-
SLA based
dependent
Time &
Material,
resource
dependent

Linear models Non-Linear models
8

Moving up the value chain – Customer perception

Developed Emerging
markets markets

9

Moving up the value chain – Reskilling

1 mn Servicing
workforce BAU

Investment
Worker vs for reskilling
architect/
consultant

Reskilling
Multi- methodology
layered,
multi-
dimensional
10

Back to First Principles

• Creativity in education

• Science over engineering

• Collaborate over compete

• Nurture small niche units

11

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Our team recently released tis publication in collaboration with CII. This was widely appreciated by most IT Leaders present at the conference. Iy you are a CEO, this is a consolidated reference document of al talking points in te industry that provides prescriptive next steps for your company. I am sharing this document for the benefit of my Linkedin connections. Kindly feel free to reach-out if you want to discuss further. Please drop me a note on - aljo@kpmg if you have lost my number.

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Indian IT industry Managing Non-Linear Growth

1. The Indian Software Industry Managing non-linear growth Moving up the value chain - A Practitioner's Perspective - C V Jayanthi – Independent Consultant Pooja Sharma – Sr. Consultant, Leading IT Company Excerpt of Paper Presented at IIM, Bangalore

2. CONTENTS • Points of Inflexion • Non-linearity via industrial revolution • Non-linearity in branch next door • Varied views of the elephant • Moving Up the value chain • Back to first principles 2

3. Point of Inflexion Growth drivers Diminishing marginal utility Cost Arbitrage Abundant Resources 3

4. Non-linearity via Industrial Revolution! - creation of specialised units Structural -participative labour engagement models changes : -outsourcing non-core work value – added products Specialization in India strengths : Good domestic markets - Outmoded machines -Labour issues : Large composite mills : end-to-end approach numbers, productivity : spinning, weaving, designing training 4

5. Non –linearity in the branch next door? Servicing – Branch, e- banking channels Functional Collections Head Office depts Sales – – central Branch + recovery + agency Circle / agency Customer, Functional Functional Regional/ depts + depts + Revenue, Zonal admin admin Compliance - sales, sales, sales, Compliance – Bank Operations Branch operation, operations, operations, Risk – Back- compliance compliance compliance management office + Tech Product – Technology + Business 5

6. Varied views of the elephant….. Platform based offerings – Cloud, SAAS, PAAS… Automation in low-value jobs - RIM New business models – pay as u go Cross-industry process adaptation - lean 6

7. Moving up the value chain - Technology for technology industry….. Futuristic technologies like robots, artificial intelligence 7

8. Moving up the value chain - Pricing Models Capex - Opex models Business value linked Basic – benefit- business based linked – Fixed price, transaction- SLA based dependent Time & Material, resource dependent Linear models Non-Linear models 8

9. Moving up the value chain – Customer perception Developed Emerging markets markets 9

10. Moving up the value chain – Reskilling 1 mn Servicing workforce BAU Investment Worker vs for reskilling architect/ consultant Reskilling Multi- methodology layered, multi- dimensional 10

11. Back to First Principles • Creativity in education • Science over engineering • Collaborate over compete • Nurture small niche units 11

12. Feedback / questions …. 12

Indian IT industry Managing Non-Linear Growth

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