infosys value chain

8/8/2019 Infosys Value Chain

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Value Migration At Infosys: Case(A)

By:

Tusharakanta Sahoo

Vandit Bhurat

Vibha Bharati


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Migration up the Value Chain: Compelling Factors

Global IT solutions Providing

A. Excellent Offshore Delivery

B. Business Domain Excellence Commoditisation at the lower end

Not able to uphold high Operating Margins

MNC IT consulting firms moving down the Value Chain

Moving up the Value chain is needed More End-to-End Solutions, High End Value Services to

increase Project Life


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Value Chain : IT Services Business


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Source: http://chaotic-flow.com/media/software-value-chain.jpg


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Stage 1: Programming Maintenance Services

System Availability

Utilization of employees

Bench strength New software development cycle time

Onsite-offshore ratio

CMM levels (industry certifications)


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Stage 2: Project Implementation

Number of Service level agreement (SLA) misses

Time to market

On-time delivery SOX compliance


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Stage 3: Package Implementation

Installation time for entire package

System downtime


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Stage 4: System Integration

Ease of use

Integrated software and resold

Number of platforms supported Compatibility of software

Upgradeability


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Stage 5: IT-Led Business Strategy

Proposition of product or service cost locked in prior to

commercialization

Types of customers serviced

Number of industries and verticals served

% of repeat orders

Feasibility of strategy suggested


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Stage 6: Business Strategy

Revenue per employee

% share of wallet

Competitive advantage Types of customers

% of repeat orders

Feasibility of strategy

Types of industries and verticals


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Infosys Position

Currently, at STAGE 4: Convergence of Systems & Processes

Needs to move to Stage 5th and 6th Assessment of future

impact of IT on the industry and Evaluation of Business Model

respectively


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Stage 6: Business Strategy

Revenue per employee

% share of wallet

Competitive advantage Types of customers

% of repeat orders

Feasibility of strategy

Types of industries and verticals


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Target Segments & New Basis of Selection

Offshore Outsourcing many big firms like GE

Maintenance of Legacy Systems in response to Y2K Issues,

created middleware product

IT Organisational Performance of Clients Total IT

Organizational Performance of clients by increasing share of

customer wallet

New Basis will be a shift from focussing on Delivery Excellence

to Business Domain Excellence


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Change in Marketing Approach

Broadening Sales and Distribution Network

Taking Onsite to Offshore Staff Allocation while assigning Cost

Drivers

Effective Value proposition for company by building

relationships with CEO/COO

Selling as a Total Solution Provider rather than just a

Technical Solution provider to clients DMUs having

stronger relationship with CIOs


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Core Competencies & Capabilities

Organising Workforce Across Domain/Expertise

Bridging the Gap between Functional Groups and improving

domain specific trainings

Offer New Services catering to more profitability

Bolster Business Domain Capabilities & Scale up consulting

Domain

Helping client company address all the problems Reduction

in Margins, Improving its customer & Employee Retention

etc... (One to One Consulting)

infosys value chain

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