Why companies are increasingly moving towards Standardization

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More and more companies are standardizing functions across people, processes and technology. Such “standardization at the core” positions them to achieve cost savings, increased customer satisfaction and improved competitiveness

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Why companies are increasingly moving towards Standardization

  1. 1. © 2013 WIPRO LTD | WWW.WIPRO.COM1 Why companies are increasingly moving towards Standardization Knowledge@Wharton- Wipro Future of Industry Series
  2. 2. © 2013 WIPRO LTD | WWW.WIPRO.COM2 Why Companies are Increasingly Moving towards Standardization? Knowledge@Wharton-Wipro Future of Industry Series: Standardization at the Core More and more companies are standardizing functions across people, processes and technology. Such “standardization at the core” positions them to achieve cost savings, increased customer satisfaction and improved competitiveness
  3. 3. © 2013 WIPRO LTD | WWW.WIPRO.COM3 Why companies are moving towards Standardization?  Standardization enables consistency, predictability, uniformity and in a way flexibility of operations.  Adds advantage to the organization by cost reduction, better brand equity, good quality control ,wider customer reach, innovation and fast time in market.  It is not restricted to any company or industry, its size, scale of operations or nature of business. Three broad pillars support the core businesses of any organization: its people, processes, and technology. Standardization at the core level “negates variability” - Anand Sankaran, SVP & Business Head, Wipro Infotech and global business head — infrastructure and services for Wipro Limited Standardization or a “platform approach is very important success factor in many markets, where “increasingly good product means good platform development- Karl Ulrich, Wharton professor of operations and information management and its vice dean of innovation,
  4. 4. © 2013 WIPRO LTD | WWW.WIPRO.COM4 Importance of Standardization By standardizing the core, organizations will not only realize higher efficiency and productivity at the back-end, but will also enable differentiation at the front-end Companies that share components and processes across product platforms can develop differentiated products efficiently and be more responsive to market changes, says Karl Ulrich, Vice Dean of Innovation at Wharton “Standardization at the core” positions business to achieve cost saving, increased customer satisfaction and improved competitiveness. says Anand Sankaran, SVP, Wipro Standardization has made way for “servicization,” wherein products are sold and delivered as services, says Morris A. Cohen, Wharton professor of operations and Information Management
  5. 5. © 2013 WIPRO LTD | WWW.WIPRO.COM5 Standardization at Work With the standardization of platforms and processes for India’s government-run Employee State Insurance Corp, eligible workers now have smart cards to access health care facilities across the country. An electronic medical records system enables physicians to access a patient’s medical history. Platforms for functions such as managing hospital pharmacies are also standardized. In 1987, Kodak was caught napping when rival Fuji introduced a single- use camera. Kodak launched a competing product later in the year, but by then Fuji had already developed a second model. Yet, Kodak won back market share from Fuji and captured more than 70% of the U.S. market by 1994. “The success of Kodak’s response resulted in part from its strategy of developing many distinctively different models from a common platform,”
  6. 6. © 2013 WIPRO LTD | WWW.WIPRO.COM6 Platform planning The benefits far outweigh the challenges
  7. 7. © 2013 WIPRO LTD | WWW.WIPRO.COM7 Making way for ‘Servicization’  The delivery of after-sales service becomes a competitive advantage as it allows a high level of differentiation even if product and production process are standardized.  Servicization is important as there is heterogeneity among customers when it comes to quality of product and quality of service.  Increased adoption of standardization principles enables organizations in servicization  It is predicted that service-led solutions will displace traditional sourcing approach in the next three to five years as more and more organizations increase the standardization of infrastructure, application and business processes There has always been a trade off between standardization and customization. Servicization is where products are sold and delivered as services
  8. 8. © 2013 WIPRO LTD | WWW.WIPRO.COM8 Conclusion Standardization and Differentiation can coexist, bringing the best of both worlds. Increased adoption of standardization principles enables organizations in servicization and vice-versa
  9. 9. © 2013 WIPRO LTD | WWW.WIPRO.COM9 For more details please visit the link below: http://www.wipro.com/insights/academia-collaboration/wipro- FOI-K@W-series/why-companies-are-increasingly-moving- towards-standardization
  10. 10. © 2013 WIPRO LTD | WWW.WIPRO.COM10 Knowledge@Wharton is the online business analysis journal of the Wharton School of the University of Pennsylvania. The site, which is free, captures relevant knowledge generated at Wharton and beyond by offering articles and videos based on research, conferences, speakers, books and interviews with faculty and other experts on current business topics. The Knowledge@Wharton network — including Chinese, Spanish, Portuguese, Indian, Arabic, Israeli and High School editions — has more than 2.1 million subscribers worldwide. For more information: http://knowledge.wharton.upenn.edu About Knowledge@Wharton
  11. 11. © 2013 WIPRO LTD | WWW.WIPRO.COM11 About Wipro Ltd. Wipro Ltd. (NYSE:WIT) is a leading Information Technology, Consulting and Outsourcing company that delivers solutions to enable its clients do business better. Wipro 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 recognized globally for its comprehensive portfolio of services, a practitioner’s approach to delivering innovation and an organization wide commitment to sustainability, Wipro has a workforce of 140,000 serving clients across 57 countries. For more information, please visit www.wipro.com. For more information, please visit www.wipro.com
  12. 12. © 2013 WIPRO LTD | WWW.WIPRO.COM12 Thank You ©Wipro Limited, 2013. All rights reserved. For more information visit www.wipro.com No 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 specific implementation clients should take advise from their client engagement manager.

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