technology captives in india & crossing the cost-value chasm
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© 2008 Catalign Innovation Consulting www.catalign.com
Technology captives & crossing the cost-value chasm Quest for sustainable competitive advantage
Dr. Vinay Dabholkar
President
Catalign Innovation Consulting Pvt Ltd
vinay@catalign.com, 99457-57913
19-Dec-2008
www.catalign.com/articles.htm
Dr. Pradeep Desai
Technology Head
Tata Consultancy Services
gdinnov@gmail.com
http://inov-n.blogspot.com/
cost value
Presented at International Conference on Doing Business in India, 18-19 Dec, IFIM, Bangalore
© 2008 Catalign Innovation Consulting www.catalign.com
Meet Mr. SamManaging Director, XYZ Technologies India Private Limited
© 2008 Catalign Innovation Consulting www.catalign.com
Today, Mr. Sam is a happy and proud man. Why?
© 2008 Catalign Innovation Consulting www.catalign.com
Today, Mr. Sam is a happy and proud man. Why?
30in 2000
3000in
2008
He contributed toIndia growth story
© 2008 Catalign Innovation Consulting www.catalign.com
Today, Mr. Sam is a happy and proud man. Why?
He built a competentteam
Augmentingonsite
ManagingProjects from
India
30in 2000
3000in
2008
He contributed toIndia growth story
© 2008 Catalign Innovation Consulting www.catalign.com
Sometimes, Mr. Sam is worried. Why?
© 2008 Catalign Innovation Consulting www.catalign.com
Sometimes, Mr. Sam is worried. Why?
Cost advantage
Cost advantage
© 2008 Catalign Innovation Consulting www.catalign.com
Sometimes, Mr. Sam is worried. Why?
Cost advantage
Cost advantageComplacency
© 2008 Catalign Innovation Consulting www.catalign.com
One day, Mr. Sam comes across Partnership Maturity Model (PMM) And Mr. Sam is excited. Why?
© 2008 Catalign Innovation Consulting www.catalign.com
Partnership Maturity Model (source: Jaideep et al IMK Conference Feb 2006)
Adequate Resources
BasicCompetencies
Cost ofResources
CustomerCommunication
Quality of
deliverables
On time
delivery
Post development
support
Cost of
development
Responsivenessto
customer
ResourceCentre
OffshoreDevelopment
Centre
Center of Excellence
Co-developingrequirements
Roadmap ofProduct features
Product domain
knowledgeCustomer orientation
InnovationCentre
Ownership ofrequirements
Technology roadmap
New productIdeas
Customer partnershipconsulting
Highly ValuedPartner
InfluencingStandards
Contributionto market leadership
Define newAreas of research
Moving Up The Value Chain
Vinay Dabholkar
Resource Center
Offshore Development Center
Centre of Excellence
Innovation Center
Cost-Value Chasm
Movin
g Up T
he Val
ue Cha
in
Highly ValuedPartner
Mr. Sam looks closely and he sees a chasmTwo sides of the chasm have different paradigms
One side is Cost-driven
Other side is Value-driven
© 2008 Catalign Innovation Consulting www.catalign.com
Mr. Sam starts building capacity to cross the chasm systematicallyWhat all does he do?
© 2008 Catalign Innovation Consulting www.catalign.com
(1) Mr. Sam identifies key challengesWhat are they?
© 2008 Catalign Innovation Consulting www.catalign.com
(1) Mr. Sam identifies key challengesWhat are they?
Headcountdriven
biz model
© 2008 Catalign Innovation Consulting www.catalign.com
(1) Mr. Sam identifies key challengesWhat are they?
Headcountdriven
biz model
Leadership for the
uncharted territory
© 2008 Catalign Innovation Consulting www.catalign.com
(1) Mr. Sam identifies key challengesWhat are they?
Headcountdriven
biz model
Leadership for the
uncharted territory
Deep domain &product
understanding
© 2008 Catalign Innovation Consulting www.catalign.com
(2) Mr. Sam starts new initiativesWhat are they?
© 2008 Catalign Innovation Consulting www.catalign.com
(2) Mr. Sam starts new initiativesWhat are they?
RIALTE
SOA
CloudSAN
Anchor ontoparent Co’stech roadmap
© 2008 Catalign Innovation Consulting www.catalign.com
(2) Mr. Sam starts new initiativesWhat are they?
RIALTE
SOA
CloudSAN
Anchor ontoparent Co’stech roadmap
Start internal venture fund
© 2008 Catalign Innovation Consulting www.catalign.com
(2) Mr. Sam starts new initiativesWhat are they?
RIALTE
SOA
CloudSAN
Anchor ontoparent Co’stech roadmap
Start internal venture fund
Develop technologyfor emerging
markets
© 2008 Catalign Innovation Consulting www.catalign.com
(3) Mr. Sam identifies critical success factorsWhat are they?
© 2008 Catalign Innovation Consulting www.catalign.com
(3) Mr. Sam identifies critical success factorsWhat are they?
Value metric
Value contribution
© 2008 Catalign Innovation Consulting www.catalign.com
(3) Mr. Sam identifies critical success factorsWhat are they?
Value metric
Value contribution
Marathon mindset(sustainability)
© 2008 Catalign Innovation Consulting www.catalign.com
cost value
Movin
g Up T
he Val
ue Cha
in
Imperative Serious challenge
cost value
Would need systematic & sustainable effort
Summary
© 2008 Catalign Innovation Consulting www.catalign.com
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