Technology captives in India & crossing the cost-value chasm

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Presents challenges, approaches and critical success factors for technology captives in moving up the value chain

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Technology captives in India & crossing the cost-value chasm

  1. 1. cost value Technology captives & crossing the cost-value chasm Quest for sustainable competitive advantage Dr. Vinay Dabholkar Dr. Pradeep Desai President Technology Head Catalign Innovation Consulting Pvt Ltd Tata Consultancy Services vinay@catalign.com, 99457-57913 gdinnov@gmail.com 19-Dec-2008 http://inov-n.blogspot.com/ www.catalign.com/articles.htm Presented at International Conference on Doing Business in India, 18-19 Dec, IFIM, Bangalore © 2008 Catalign Innovation Consulting www.catalign.com
  2. 2. Meet Mr. Sam Managing Director, XYZ Technologies India Private Limited © 2008 Catalign Innovation Consulting www.catalign.com
  3. 3. Today, Mr. Sam is a happy and proud man. Why? © 2008 Catalign Innovation Consulting www.catalign.com
  4. 4. 30 in 3000 2000 in 2008 He contributed to India growth story Today, Mr. Sam is a happy and proud man. Why? © 2008 Catalign Innovation Consulting www.catalign.com
  5. 5. 30 in 3000 2000 in Augmenting Managing 2008 onsite Projects from India He contributed to India growth story He built a competent team Today, Mr. Sam is a happy and proud man. Why? © 2008 Catalign Innovation Consulting www.catalign.com
  6. 6. Sometimes, Mr. Sam is worried. Why? © 2008 Catalign Innovation Consulting www.catalign.com
  7. 7. Cost advantage Cost advantage Sometimes, Mr. Sam is worried. Why? © 2008 Catalign Innovation Consulting www.catalign.com
  8. 8. Cost advantage Cost advantage Complacency Sometimes, Mr. Sam is worried. Why? © 2008 Catalign Innovation Consulting www.catalign.com
  9. 9. One day, Mr. Sam comes across Partnership Maturity Model (PMM) And Mr. Sam is excited. Why? © 2008 Catalign Innovation Consulting www.catalign.com
  10. 10. Partnership Maturity Model (source: Jaideep et al IMK Conference Feb 2006) Contribution Define new Highly Valued Influencing to market Areas of Partner Standards leadership research Moving Up The Value Chain New Customer Innovation Ownership of Technology product partnership requirements roadmap Ideas consulting Centre Roadmap of Product Center of Co-developing Product domain Customer Excellence requirements features knowledge orientation Quality On Cost Post Responsiveness Offshore of time development of to Development deliverables delivery support development customer Centre Resource Adequate Basic Cost of Customer Centre Resources Competencies Resources Communication © 2008 Catalign Innovation Consulting www.catalign.com
  11. 11. Mr. Sam looks closely and he sees a chasm Two sides of the chasm have different paradigms One side is Other side is Cost-driven Value-driven Highly Valued Partner Cost-Value Chasm Innovation Center Centre of Excellence Offshore Development n Center Chai Va lue p The Resource Center gU n Vinay Dabholkar M ovi
  12. 12. Mr. Sam starts building capacity to cross the chasm systematically What all does he do? © 2008 Catalign Innovation Consulting www.catalign.com
  13. 13. (1) Mr. Sam identifies key challenges What are they? © 2008 Catalign Innovation Consulting www.catalign.com
  14. 14. Headcount driven biz model (1) Mr. Sam identifies key challenges What are they? © 2008 Catalign Innovation Consulting www.catalign.com
  15. 15. Leadership for the uncharted territory Headcount driven biz model (1) Mr. Sam identifies key challenges What are they? © 2008 Catalign Innovation Consulting www.catalign.com
  16. 16. Leadership for the uncharted territory Deep domain & Headcount product driven understanding biz model (1) Mr. Sam identifies key challenges What are they? © 2008 Catalign Innovation Consulting www.catalign.com
  17. 17. (2) Mr. Sam starts new initiatives What are they? © 2008 Catalign Innovation Consulting www.catalign.com
  18. 18. RIA LTE SO A SAN d Clou Anchor onto parent Co’s tech roadmap (2) Mr. Sam starts new initiatives What are they? © 2008 Catalign Innovation Consulting www.catalign.com
  19. 19. Start internal venture fund RIA LTE SO A SAN d Clou Anchor onto parent Co’s tech roadmap (2) Mr. Sam starts new initiatives What are they? © 2008 Catalign Innovation Consulting www.catalign.com
  20. 20. Start internal venture fund RIA LTE SO A Develop technology SAN Clou d for emerging markets Anchor onto parent Co’s tech roadmap (2) Mr. Sam starts new initiatives What are they? © 2008 Catalign Innovation Consulting www.catalign.com
  21. 21. (3) Mr. Sam identifies critical success factors What are they? © 2008 Catalign Innovation Consulting www.catalign.com
  22. 22. Value contribution Value metric (3) Mr. Sam identifies critical success factors What are they? © 2008 Catalign Innovation Consulting www.catalign.com
  23. 23. Value contribution Value metric Marathon mindset (sustainability) (3) Mr. Sam identifies critical success factors What are they? © 2008 Catalign Innovation Consulting www.catalign.com
  24. 24. Summary n Chai ue Val p The cost value ngU M ovi cost value Imperative Serious challenge Would need systematic & sustainable effort © 2008 Catalign Innovation Consulting www.catalign.com
  25. 25. © 2008 Catalign Innovation Consulting www.catalign.com

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