Final Ppt Infosys

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Business Strategic

Management of Infosys

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F”:-Vision And Mission

» Vision:- “To be a globally respected corporation that provides best-of-breed business solutions, leveraging technology, delivered by best-in-class people."

» »

» Mission:- "To achieve our objectives in an environment of fairness, honesty, and courtesy towards our clients, employees, vendors and society at large."

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Values

» Infosys’ value system is best articulated by the acronym

C-Life –

C

ustomer Delight,

L

eadership by Example,

I

ntegrity & Transparency,

F

airness and Pursuit of

E

xcellence.

» The major objective of the company is to become India’s

most respected company.

» Infosys deliberately defocused on revenue and profits. Their goal was to do everything by the book.

»  » » »

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Introduction to Infosys

ØInfosys Technologies Ltd. was started in 1981.

ØToday, it is a global leader in the "next generation" of IT and consulting.

ØInfosys defines, designs and delivers technology-enabled business solutions that help Global 2000 companies win in a Flat World.

ØInfosys serves the client globally and is one of the pioneers in strategic offshore outsourcing of software services

Ø

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Milestones

» In 1987 Infosys got its first foreign client.

»

» In 1993, Infosys became a public limited

company and received ISO 9001/Tick IT certification.

»

» In 1999, Infosys crossed $100 Million and was

listed on NASDAQ. »

» In 2006, Infosys completed 25 years of its

existence and its revenues crossed $ 2 billion.



» Today Infosys has more than 1,03,078

employees and has presence in more than 20 countries across the world.

»

Awards & Achievements

» Infosys moved up to No. 14 on Fin Tech 100.

» Awarded the ‘India’s Best company to work

for’ in 2009.



» Infosys was honored with the Sharpening

Brand and Competitive Differentiation Marketing Excellence Award from the

Information Technology Services

Marketing Association (ITSMA)

» A leader in SAP implementation services.

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Infosys - Business Lines

Insurance Healthcare and Life Sciences Banking and capital Markets Communicati on Media and Entertainment Energy, utilities and Services Retails, Consumer Goods and Logistics Manu factu ring New Markets and Services India Business Unit Consulting Solutions (CS) Enterprise Solutions (ES)

Product Engineering and Validation Services (PEVS) – PED, PLES, IVS Infrastructure Management Services (IMS)

Software Engineering and Technology Labs (SETLabs) System Integration Services (SI)

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Financial Growth

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Industry Segmentation Performance

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S.W.O.T. Analysis

Strengths 

» Cost advantage – Presence of Infosys in India is key to its success

» Breadth of service offering – end to end solutions including high end services like IT consultancy and KPO

» Quality and maturity of process – Infosys has quality standards such as CMM Level 5i to

differentiate from other

competitors

» Global and 24/7 delivery capability – excellent internet backbone

and telecommunications

facilities enabling companies to

develop 24/7 delivery

capabilities from India itself

»

Weaknesses

 _{» Excessive dependence on USA for}

revenues – US Companies are

cutting down IT budget hence revenues to be hit hard for Infosys

» Excessive dependence on BFSI

sector for revenues – Banking

sector is facing a crisis globally and is going to spend less on IT » High rates of attrition – Although

slowdown in global economy has lowered attrition rate but the industry still faces high attrition rates as compared to other sectors

» Decreasing competitive advantage – rising salary expenses is taking away the cost advantage enjoyed by Indian companies (including Infosys).

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S.W.O.T. Analysis

Opportunities

» Greater scope for product

innovation

» Increased focus on high end work like consulting and KPO

» Domestic demand for IT services is to grow at 20 %

» Greater scope to service domains other than BFSI such as

Transportation, Infrastructure,

etc.

» Satyam fiasco – Likely to have positive impact on business

considering corporate

governance, possibility of

shifting of business, getting higher incremental business from overlapped clients, and winning new business from new clients

 

» Global economic slowdown may continue for several years – hence low IT spending globally » US Govt. against outsourcing

» Shrinking margins due to rising wage inflation

» Rupee-dollar movement affects revenue and hence margins

» Increased competition from foreign firms like Accenture, IBM etc. »

» Increased competition from low-wage countries like China, Indonesia etc.

»

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Porters Five Forces Model

Threat of Substitutes:

1.Other offshore locations – Low Cost Locations like Eastern Europe, Philippines and China.

2.Price quoted is the biggest Differentiator.

Bargaining Power of Customers:

1.Large Number of IT Companies vying for projects – High Competition

2.Huge Decline in IT Expenditure

Barriers to Entry:

1.Low Capital Requirements

2.Large value chain for small enterprises

3.MNCs are ramping up capacity and employee strength

Bargaining Power of Supplier:

1.Due to Slow Down, Job Cuts, layoff & bleak IT outlook

2.Demand Supply is not favorable to employees

3.Availability of vast pool of talent.

Rivalry among Firms:

1.Low Cost

2.Commoditized offering

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BCG Matrix – Infosys (India)

Software Products Maintenance

Package Implementation NONE Consulting, BPO, KPO HIGH LOW Market Share HI G H L O W Business Growth Rate

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McKinsey’s 7 S Model

Style - LEADERSHIP

“Infosys Leadership Institute”

Open door policy.

Continuous sharing of information.

Takes inputs from employees in decision making.

Builds personal rapport with employees.

Staff – HUMAN RESOURCES

“Knowledge Based Industry” (90% are engineers)

Emphasis on academic records

Technical skills

Ability to learn

2.65 per cent of its revenues on up gradation of

employees skills ‟

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Strategy

» Client focused strategy (custom built soft wares) » Quality driven model.

» Strong Engagements with existing clients. » Value added services to new clients.

» Geographical Expansion. » Enhanced Solution Set. » Consulting.

» Business Process Management. » Systems Integration.

» Infrastructure Management. » Deep Industry Knowledge. » Brand Visibility.

» Pursue alliances and strategic acquisitions . »



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Shared Values

» Customer Delight

» Leadership by Example » Integrity and Transparency » Fairness

» Pursuit of Excellence

Organizational Structure

» Free Form

» Flexible Team Structure

 e.g. A member, who might have been team leader in one project, may be replaced

by another member of the same team for another project. » Equality among employees



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Skills 

» Domain specific Certifications » Competency Building

»

Infosys has been CMM-Level 5 certified for its process capabilities.



It has entered the Balanced Scorecard Hall of Fame for Executing

Strategy for achieving breakthrough performance results using the

Balanced Scorecard (BSC).

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Infosys- Corporate Level Strategy

» Global Delivery Model: Producing where it is most cost effective and selling where it is most profitable.

» Moving UP the value chain: Getting involved in a software development project at the earliest stage of the life cycle.

» PSPD Model: “Predictability of Revenues, sustainability of revenues, Profitability, De-Risking” for Risk Management.

» Actions Taken

» Expansion into low cost countries like Mauritius, Philippines, Thailand, Mexico etc.

» Improved Quality capabilities -> CMM Level 5i » Emphasis on delivering high value services

» Currency hedging for predictability of revenues. » Investing heavily in training centers.

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Infosys – Generic Strategy

» Low cost Global delivery 24/7 Model »

» Little differentiation in low-end services of value chain; high differentiation in high end services in value chain like software products and package solutions.

»

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Infosys – Grand Strategies

» Ansoff’s matrix



Current Market New Market

Current Product Market Penetration

Strategy Market Development

Strategy

New Product Product

Development Strategy

Diversification Strategy

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Market Penetration Strategy

» Current Markets: USA and Europe

» Current Products: BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products).

» Recommendation: As most large clients in US and Europe are cutting costs, Infosys needs to be more aggressive on cost and quality front.

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Market Development Strategy

» New Market: India, Middle-east and Australia

» Current Product: ADM, BPO, KPO, consultancy services (in BFSI, manufacturing and retail) and software products (financial products).

» Recommendation: Since these are fast developing IT market, Infosys needs a paradigm shift in focus from US and EU markets to new markets.

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Product Development Strategy

» Current Market: USA and Europe

» New Product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences and aviation sector, and KPO services.

» Recommendation: Concentrate on building expertise in these domains by strategic acquisitions.

» Result of Strategy: Likely to have good result. (better the company acquired, the better the result).

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Diversification Strategy

» New Market: India, Middle-east and Australia

» New product: Consultancy and package implementation services in relatively growing sectors esp. healthcare, life sciences and aviation sector, and KPO services.

» Recommendation: Changing Brand image from low value service provider to high value service provider.

» Result of Strategy: Difficult to achieve overnight (possible in long term)

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Other Strategies

» CONCENTRATION: 90% of Infosys revenues from American and European nations.



» VERTICAL INTEGRATION: Infosys recently made a bid to acquire a European major – Axon consultancy to improve its business in European markets, but finally called off the deal due to high valuation. Otherwise, Infosys has always believed in organic growth.



» INNOVATION: The Software Engineering and Technology Labs (SETLabs) at Infosys is the centre for applied technology research in software engineering and enterprise technology.

 SETLabs conducted 24 Innovation Workshops with customers from the US

and Australia, to identify research collaboration possibilities. Infosys promotes a favourable work environment that encourages innovation and meritocracy.

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Future Strategies Contd..

» Global sourcing strategy is aligned with business strategy

» Enhancing operational efficiency and delivering value added services.

» Structuring processes and services into modules thus leading to enhanced flexibility and productivity.

» Aggressive focus on ERP solutions like Oracle and SAP. » Expand into high end consulting.

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Lessons to Draw

» Do not put all eggs in one basket.

» Provide more high end services in value chain (3rd_{wave IT)}

» Shift in focus from low cost advantage to high quality services. » Consolidation and Strategic acquisitions are essential for future

growth of revenues.

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