Q.1 what is business strategy? What is IT strategy? Explain briefly their relationship.

Ans. Business Strategy

A business strategy is the means by which it sets out to achieve its desired ends (objectives). It can simply be described as a long-term business planning.

Business strategy describes how the company will:

Creates customer value, How it competes with others in the same industry, And how it generates revenues and spends to create good margins.

Your business strategy can be defined in either several paragraphs or be written as a set of strategic statements. It is a summary of how the company will achieve its goals, meet the expectations of its customers, and sustain a competitive advantage in the marketplace. Your business strategy should answer these questions:

Why is the company in business? What are we best at doing? Which customers should we continue to serve or start serving? Which products/services should we stop offering, continue to offer, or start

offering? Why have we decided on these strategic directions?

Need for Business Strategy:

Retain Customers –

In almost every case, it is ideal to retain customers than to constantly chase new ones. And this is one major area where business strategy is extremely necessary. Inthe absence of a sound business plan, you will find it hard to generate customer

loyalty. Businesses that have no specific guidelines on how to cater to existing customers risk alienating the later, and a competitor can easily snatch them out of your hand just by emphasizing on customer service.

Robust System of Follow up –

So, what you need to do is develop a robust system of follow-up where calls are made and emails are sent to repeat customers not only to ensure that their products are operating properly, but also to let them know that your business cares for them. And depending on your line of your business, you can also send greeting card and gifts to repeat clients on occasions like Christmas.

Resource Allocation:

Another place in which a business strategy comes in handy is resource allocation,as mentioned in the opening. Your business, no matter how big, will always have limited resources on hand, which necessities the need of efficient management so that these resources can be used with maximum efficacy. A sound business plan helps you weave together resources like employees, brand value, clientele, trademarks, and supply partners etc, to achieve a competitive advantage and also create products and promotion that speaks directly to your target market.

If resources are not managed efficiently, then the business is likely to lose both revenue and customers in the long run.

Business Expansion:

Thirdly, business expansion is also a goal which cannot be achieved without strategy. If your expansion goals are laid out in great detail, then it will help team leaders and executives to explore opportunities outside of your standard business practice to facilitate company expansion. You will be able to set aside budget and hire appropriate people for market research that can not only collect and collate data, but also analyze trends to help you spot untapped niches.

Clarity, focus and direction.

If you have a business strategy in place you will be clear on where your business is now, where it is going and what you need to do to get there. This will give your business clarity, focus and direction as you can align the business to achieving the business strategy. You will be making your business strategy happen rather than letting your business drift along without purpose.

A better understanding of your current business.

To develop a business strategy you need to understand where your business is now. This involves looking at your business overall, including the key internal drivers suchas financial performance, customer satisfaction, staff turnover, sales and marketing

trends, conversion rates etc. You will also need to consider the strengths, weaknesses, opportunities and threats associated with your business and understand the external business environment, your competitors and the market you are in. This will all put your business in a much better place to move forward.

Better business results.

Developing a business strategy is likely to lead to better business performance as you are focused on taking the business to where you want it to be. You are less likely to get distracted and waste time on areas that are not moving you towards your long term objectives.

IT Strategy:

IT strategy is a comprehensive plan that information technology management professionals use to guide their organizations

IT strategy is the discipline that defines how IT will be used to help businesses win in their chosen business context.

IT Strategy is:

A long-term action plan for achieving a goal.

Those which not only link to a business strategy, but also combine tactics and

logistics

It is about how IT will help the organisation win in its chosen markets.

An IT strategy should cover all facets of technology management, including

Cost Management

Capital Management

Hardware / Software Management

Vendor Management

Risk Management

An IT Strategy should answer the following questions:

Are we doing the right things with technology to address the organization’s

most important business priorities and continuously deliver value to the clients?

Are we making the right technology investments?

Do we measure what is the real value to the organization derived from that

technology?

Is our current Information Technology agile enough; flexible to continuously

support a successful organization?

Is our Information Technology environment properly managed, maintained,

secured, able to support the clients, and is it cost effective?

Can our strategy support current and future business needs?

• understanding the aims and objectives of the business

• establishing the information requirements

• outlining the systems needed to provide the information

• determining the role of information technology in supporting the information

systems

• agreeing policy, priorities and development and implementation plans

• managing, reviewing and evolving the strategy, and planning to manage

potential impacts such as the effect on culture and organization

• An information technology strategy brings this information together into a plan

to make the most appropriate use of both information and technology available

in an organisation

Relationship:

Q 2. What do you understand by the term “context of business”? Explain briefly the stepsinvolved in arriving at the IT Strategy after understanding the context of business?

Ans. Business Context

Players: People, Organization and Systems

Explain what business means. Understanding your business, Understand external and internal factors and all. That will finish ur Context part.

Context of business is environment in which a business operates. Environmental scanning mainly focuses on the macro environment of a business. Butcontext analysis considers the entire environment of a business, its internal and externalenvironment. SWOT analysis helps us to understand context of business. The main goal of a context analysis, SWOT or otherwise, is to analyze the environment in order to develop a strategic plan of action for the business.Workforce planning needs to be directly linked to you business goals, and so the first step is to think about your own business context. Ask yourself the following questions:

1. What are my business goals and vision?

2. Where is my business heading? Is it growing, downsizing, transitioning, shifting skills, introducing new technology or is it in a maintenance mode?

3. What are the economic conditions that impact on my industry sector and marketsand does this impact on my business?

4. Who are my customers/clients?

5. What is going on internally in my business and how will this impact on my workforce requirements?

6. What are the short, medium and long term goals for my business and what workforce skills and capability will I need to achieve these business goals?

Having a good understanding of the current environment and context of the industry your business is operating in, as well as your goals for the future of your business, will help you to plan your workforce needs and develop strategies to turn your goals into business success.

Steps for arriving at an Effective IT strategy.

#1 - Review Strategic and Tactical Goals and align with the Technology Projects and Goals.

Developing an effective technology strategic plan should first start with a review of the organization’s strategic plan. Often after listing out the strategic plans and tactical plans of the organization, the areas where technology could enhance or enable such plans becomes apparent. Many organizations that have reached the state where their IT planning is pro-active rather than reactive have used the strategic plans and tactical plans as the litmus test for whether a project should be funded. When reviewing projects during the budget process, consideration should be given to whether the project contributes to achieving the strategic goals of the organization.

Example: If one of your strategic goals is to become “a premier provider of health care services”, how is that goal going to be achieved? What is a premier provider, and what tools would enable your health care staff to become just such a provider?

#2 – Interview the Executive and the Operational Staff

After reviewing the organizations Strategic Goals, the next step is to collect information from the executive and operational staff. This information should be collected in a variety of ways so that common themes can be extrapolated, and thatthe analysis shows trends and direction. Often people will open up more in individual interviews and others will tend to do better in group settings. We often use the following tools to collect data when helping clients create IT strategic plans:

• Questionnaires and Surveys

• Strengths/Weaknesses/Opportunities/Threats (S.W.O.T.s)

• Individual Interviews (Executive and selected staff)

• Departmental Interviews

• Interviews with the Board of Directors and Resident Groups

The data collected during the process above is then entered into spreadsheets and sorted for common or consistent themes. Example: The survey questions are designed to ask the users of the IT systems to rank their opinions about the mindsetof the organization as far as IT investment is concerned. The data collected might be sorted to show the following common issues:

• The organization as a whole has a desire to be perceived as an “Innovator or Early Adopter” in their use of IT

• The current state of IT in comparison to other senior living communities is closer to “Laggard or Late Majority”

• Technology that is currently available to the community is not being used properly, indicating the reasons (e.g. a lack of training or limited support)

#3 – Benchmark the Current IT Organization and IT Spending

The benchmarking exercise may include the following aspects:

• IT Leadership – does your company have a CIO or IT Director in strategic planningand growth? Is IT Leadership proactive or reactive?

• What is the size and scope of the current IT organization? How does this compare to other similar senior living providers? Rank your internal IT staff and responsibilities in comparison to similar senior living providers to determine if your organization is a leader, follower, or laggard in providing IT solutions to your company.

• Benchmark IT spending against other Senior Living providers to see how your organization invests their IT dollars. We typically find that many senior living providers “think” they are spending enough on IT, but they are really laggards in comparison to senior living organizations that view IT as a strategic investment overtheir competitors.

Example: Take a critical look at how IT is funded in your organization and ask yourself the following questions:

• Is Information Technology considered a “cost” of doing business or an “enabler” ofthe business to succeed?

• Are projects funded based on proactive or reactive thinking?

• Do you replace systems when they break or are there multi-year plans to upgrade systems?

• Do you include IT leadership on the organization’s Executive team?

• How are new corporate directives and goals communicated to IT?

• Would outsourcing some or all of IT for your organization lower IT expenditures?

#4 – Software Application and Systems Review

The best way to start the process is to identify all the applications currently in use inthe organization and determine the following: • Review each application and determine with the users if the application is meeting the current needs: o Who are the “owners” of the application? o What are the needs of the current “owners”? o Review the current application and identify where the current application is meetingor not meeting the needs of the department o Determine when the application

could be considered for replacement or enhancements (based on not meeting needs, purchase date, regulatory requirements)

#5 – Review the Gaps between the Strategic Goals and the Current Operations

This is where the fun begins. You have reviewed the strategic goals of your organization and identified IT related goals. You have interviewed the executive and operational staff to get their input into the IT needs of the organization as well as the current performance of the IT operations team and systems. You have reviewed the existing IT organization, staff and budget and have reviewed the current list of applications and determined whether they are meeting the current needs of the organization, and explored some upgrade or replacement options. Armed with this information, the next steps are to identify the gaps between the desired state and the current state of the IT organization.

#6 – Develop the IT Short-Term and Long-Term Project Plan/Timeline

With the gaps identified, you can now prioritize projects over a multi-year period and create that elusive long-range technology vision. Because of the dependencies upon other IT projects, this is best done by IT staff or consultants with a technology background. At a high-level, the executive leadership can direct the priorities of the organization and then these priorities can be assembled into a project timeline.

#7 – Give Information Technology a “Seat at the Table”

Now that you have created the technology vision for your organization, the goal needs to be to continue to update and develop the plan as things change. None of us can anticipate a major downturn in the economy, like the one we recently experienced, or an opportunity for growth in your organization that becomes available a few years from now. It does not matter if your community has a small IT staff or a large one; you need to have someone in the organization that represents the IT department included in your strategic planning and operational planning processes. The only way that your technology vision can be kept current with the organization’s vision is to include them in the process.

Question 3:

Business transformation and Success factors

Continuous process of aligning business model to support business strategy

Enterprise transformation projects that involve an evaluation of a cross- section of markets,

products, organizations and/or processes that result in a new business model

It is continuously evolving specific organizational areas or processes

Business transformation entails assessing people, processes and technologies of the

organization in terms of current state (where the organization is right now) and future state

(where the organization wants to be). In these assessments people, processes and

technologies are not standalone areas but are part of an integrated and holistic organization.

If any of these areas are ignored or not given enough attention then true business

transformation is just a pipe dream.

Business process transformation involves an examination of the steps required to achieve a

specific goal in an effort to remove duplicate or unnecessary steps and automate as many

actions as possible. Compliance regulations, as well as changes in the economy, often drive

business process transformation.

Business transformation implies a holistic process transforming across the business It also

implies that this is the only valid strategic process towards achieving your corporate vision or

way forward.

Many organizations and consultancies appear to get lost in the chase for growth and change.

Transformation a process that enables your business across all the Key Performance

Indicator so that you can maintain your customers and outperform your competitors on an

ongoing basis.

Transformation relies on implementation of effective market and stay-in-business strategies

that attract more profitable customers in selected markets and lower operating costs.

IT business transformation

The term represents a shift in the role of technology beyond just business process

management and business-IT alignment to that of IT business integration -- creating a work

environment in which the IT department and the CIO are not merely installing technology to

support business processes but are also using technology to shape business strategy.

The need for business transformation may be caused by external changes in the market such

as an organisation's products or services being out of date, funding or income streams being

changed, new regulations coming into force or market competition becoming more intense.

This management approach is widely used

to increase revenue or market share

to improve customer satisfaction

to cut costs

Critical Success factors

1. Staff realignment and organization structure

2. The core product or service portfolio of the business and

3. Appropriate application of technology

4. Engaging employees collaboratively

5. Importance of building capabilities- particularly leadership capabilities: Transforming

leadership capacity seems to be particularly significant in transformations that succeeded in

improving long-term health

6. Focus on strengths and achievements, not just problems.

7. Define the targets, role, and structure of the transformation clearly

8. Creating a change plan : ssessing a company’s present situation rigorously, identifying the

current state of corporate capabilities as well as problems, and explicitly identifying the

underlying mind-sets that must change for the transformation to succeed

9. Braking down the process of the transformation into specific, clearly defined

initiatives.

10. Robust risk-management process or a project-management office

11. Communications about an organization’s transformation: when communications about

an organization’s transformation celebrate success as well as discuss reasons for change, the

organization tends to be more successful in driving the transformation than when

communications focus solely on reasons for change. Focusing on the positives early in the

process—during the assessment of a company’s current position—also correlates strongly

with success

12. Understanding a broad view of customer demand when embarking on business

transformation: Customers need solutions, not specific products or services. Business

transformation needs to be aligned with customers’ needs—in fact, it needs to anticipate

them. Broader research on this topic reveals that customer demand can be decoded by

figuring out transformation triggers that are affecting customers.

Q4. Describe briefly various roles, responsibilities and accountability matrix that needs to be established at minimum for an IT department and briefly explain its strategic importance to the organization?

Ans:

Responsible for Smooth IT Operations Following roles re there in IT deptChief Information Officer: The Chief Information Officer of an organization is

responsible for a number of roles. Firstly and most importantly, the CIO must fulfil

the role of business leader.[4] As a CIO must make executive decisions regarding

things such as the purchase of IT equipment from suppliers or the creation of new

systems, they are therefore responsible to lead and direct the workforce of their

specific organization. In addition, the CIO is ‘required to have strong organizational

skills’.[5] This is particularly relevant for a Chief Information Officer of an

organization, who must balance roles in order to gain a competitive advantage and

keep the best interests of the organization’s employees. CIOs also have the

responsibility of recruiting, so it is important that they take on the best employees

to complete the jobs the company needs fulfilling.

In addition, CIOs are directly required to map out both the ICT strategy and ICT

policy of an organization. The ICT strategy covers future proofing, procurement and

the external and internal standards laid out by an organization. Similarly, the CIO

must write up the ICT policy, detailing how ICT is utilized and applied. Both are

needed for the protection of the organization in the short and long term and the

process of strategizing for the future. Paul Burfitt, former CIO of AstraZeneca also

outlines the CIO’s role of IT governance, which he refers to as the “clarifying” of

“accountability and the role of committee

Service Delivery Manager : This is the most senior project-level

business role. The Business Sponsor is the Project Champion who is committed to the project, the proposed solution and the approach to delivering it. Specifically responsible for the Business Case throughout (however formally or informally this may be expressed), the role will own the solution once delivered and will be responsible for the realisation of any benefits associated with it. The Business Sponsor must hold a sufficiently high position in the organisation to be able to resolve business issues (e.g. to force open closed doors) and make financial decisions. This role has a crucial responsibility to ensure and enable fast progress throughout the project. There should be only one person responsible for this role. This person should be committed and available for the duration of the project, providing a clear escalation route.

Responsibilities

Owning the Business Case for the project

Ensuring ongoing viability of the project in line with the Business

Case

Ensuring that funds and other resources are made available as

neededEnsuring the decision-making process for escalated project issues is

effective and rapid Responding rapidly to escalated issues\

Quality Manager:

IT Plan and design manager : As the project’s technical design authority, the Technical Co-ordinator ensures that the Solution Development Teams work in a consistent way, that the project is technically coherent and meets the desired technical quality standards.The role provides the glue that holds the project together while advising on technical decisions and innovation. The Technical Co-ordinator performs the same function, from a technical perspective, as the Business Visionary does from a business perspective.

Responsibilities

Agreeing and controlling the technical architecture

Determining the technical environmentsAdvising on and co-ordinating each team’s technical activities

Identifying and owning architectural and other technically based risk,

escalating to the Project Manager as appropriateEnsuring the non-functional requirements are achievable and

subsequently metEnsuring adherence to appropriate standards of technical best

practiceControlling the technical configuration of the solutionManaging technical aspects of the transition of the solution into live

useResolving technical differences between technical team members

IT Project Manager : The Project Manager role is responsible for all aspects of the delivery of the solution. As well as providing high-level management direction to the project team(s), the role is focused on managing the working environment in which the solution is evolving. The Project Manager co-ordinates all aspects of management of the project at a high level, but in line with the Atern concept of empowerment, the Project Manager is expected to leave the detailed planning of the actual delivery of the product(s) to the Team Leader and members of the Solution Development Team. Although the Project Manager role is delivery-focused, this does not dictate from where in an organisation the role is resourced. Appropriate sourcing of the role will depend on the skills and knowledge required. It is vital that the Project Manager takes responsibility throughout the duration of the project. This must include both business and technical delivery aspectsof the project, from establishing the Foundations of the project through to the Deployment of the solution.

Responsibilities

Communicating with senior management and the project governance

authorities (Business Sponsor, project board, steering committee, etc.)

with the frequency and formality that they deem necessaryHigh-level project planning and scheduling, but not detailed task

planningMonitoring progress against the baselined project plans

Managing risk and any issues as they arise, escalating to senior

business or technical roles as requiredManaging the overall configuration of the projectMotivating the teams to meet their objectives

Managing business involvement within the Solution Development

TeamsResourcing Specialist Roles as requiredHandling problems escalated from the Solution Development Teams

Coaching the Solution Development Teams when handling difficult

situations

Team Leader : Reporting to the Project Manager, the Team Leader ensures that a Solution Development Team functions as a whole and meets its objectives. The Team Leader works with the team to plan andco-ordinate all aspects of product delivery at the detailed level. This is a leadership role rather than a management role and the person holding it will ideally be elected by his or her peers as the best person to lead them through a particular stage of the project. It is therefore likely that they will also perform another Solution Development Team role (e.g. Business Analyst, Solution Developer or Solution Tester) in addition to their team leadership responsibilities. It is also feasible that the person carrying out the Team Leader role could be different from one timebox to another, where timeboxes have a different focus.

Responsibilities

Focusing the team to ensure an on-time delivery of the agreed

productsEncouraging full participation of team members within their defined

roles and responsibilitiesEnsuring that the iterative development process is properly focused

and controlledEnsuring that all testing and review activity is properly scheduled and

carried outManaging risks and issues at the Development Timebox level,

escalating to the Project Manager or Technical Co-ordinator as requiredMonitoring progress on a day-to-day basis for all team activitiesReporting progress to the Project ManagerRunning the daily team meetings ensuring they are timely, focused

and brief

Systems Analyst : The Solution Developer interprets business requirements and translates them into a deployable solution that meets functional and non-functional needs. A person assuming a Solution Developer role should ideally be allocated full time to the project they are working on. Where they are not full time, the project

ought to be their first priority. If this cannot be achieved, significant risk is introduced with regard to timeboxing. This risk needs to be managed proactively by the Project Manager.

Responsibilities

Working with Business roles and Solution Testers to iteratively

develop:

The deployable solutionModels required for the properly controlled development of the

solutionModels and documentation required for the purpose of supporting the

solution in live useRecording (and later interpreting) the detail of any:

Changes to the detailed requirements

Changes to the interpretation of requirements which result in re-work

within the solutionInformation likely to impact on the ongoing evolution of the solutionAdhering to technical constraints laid out in the System Architecture

DefinitionAdhering to standards and best practice laid out in the Technical

Implementation StandardsParticipating in any quality assurance work required to ensure the

delivered products are truly fit for purposeTesting the output of their own work prior to independent testing

Business analyst:

The Business Analyst is fully integrated with Solution Development

Team and focuses on the relationship between the business and technical roles, ensuring accurate and decisive direction is provided to

the Solution Development Team on a day-to-day basis. The Business Analyst ensures that the business needs are properly analysed and are

correctly reflected in the guidance the team needs to generate the

solution. Active involvement of the business users in the process of

evolving the solution is vital to the success of a Atern project so it is important to ensure that the Business Analyst does not become an

intermediary between the Developers and the Business Ambassadors and Advisors, but rather supports and facilitates the communication

between them.

Responsibilities

Ensuring all communication between Business and Technical

participants in the project is unambiguous and timelyManaging development, distribution and baseline approval of all

documentation and products related to business requirements and

their interpretationEnsuring that the business implications of all day-to-day decisions are

properly thought through

Solution Tester

The Solution Tester is fully integrated with the Solution Development Team and performs testing in accordance with the Technical Testing

Strategy throughout the project.

Responsibilities

Working with Business roles to define test scenarios and test cases for

the evolving solutionIn accordance with the Technical Testing Strategy:

Carrying out all types of technical testing of the solution as a whole

Creating testing products, e.g. test cases, plans and logsReporting the results of testing activities to the Technical Co-ordinator

for Quality Assurance purposesKeeping the Team Leader informed of the results of testing activities

Assisting the Business Ambassador(s) and Business Advisor(s) to

ensure that they can plan and carry out their tests well enough to ensure that the important areas are covered

The roles responsibility accountability matrix also known as RACI matrix describes the participation by various roles in completing tasks or deliverables for a project or business process. It is especially useful in clarifying roles and responsibilities in cross-functional/departmental projects and processes.

Responsible – Who is responsible for the execution of the task?Accountable – Who is accountable for the tasks and signs off the work?Consulted – Who are the subject matter experts who to be consulted?Informed – Who are the people who need to be updated of the progress?

Responsibility Chart

Creating a RACI Matrix (step-by-step)

7. Identify all the tasks involved in delivering the project and list them on the left-

hand side of the chart in completion order.

8. Identify all the project roles and list them along the top of the chart.

9. Complete the cells of the chart identifying who has responsibility, accountability

and who will be consulted and informed for each task.

10.Ensure every task has a role responsible and a role accountable for it.

11.No tasks should have more than one role accountable. Resolve any conflicts

where there is more than one for a particular task.

12.Share, discuss and agree the RACI Matrix with your stakeholders before your

project starts.

RACI Matrix for IT department

As you can see, this simple, color-coded matrix provides a very clear visual

representation of how each role (and the person associated with that role) is

expected to interact with the project deliverables. It also provides a clear

depiction of the involvement required from each role to complete each activity.

RACI Matrix strategic importance to the organisation:

Having created and analyzed your RACI matrix, you’ll be able to move forward

with resolving any of the issues that you discovered. In doing so, you’ll reduce

risk and set expectations correctly amongst your team. Completed early in a

project, a RACI matrix can be very valuable in:

1. Ensuring that key processes within a project are not overlooked

2. Guaranteeing that each project process is appropriately staffed

3. Confirming that all project players have a clear understanding of their roles

and responsibilities

4. Guarding against overloading any one resource on a project, and

5. Ensuring that, in the event of turnover, project responsibilities can be

quickly and effectively redistributed to a new resource.

Q5. Describe briefly any three IT services provided from India. Based on the past

experience, what should be the vision (strategy) for the next 3 coming years for the

industry?

Ans:

India is the world's largest sourcing destination for the information technology (IT) industry, accounting for approximately 67 per cent of the US$ 124-130 billion market. The industry employs about 10 million workforce. More importantly, the industry has led the economic transformation of the country and altered the perception of India in the global economy. India's cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US, continues to be the mainstay of its unique selling proposition (USP) in the global sourcing market. However, India is also gaining prominence in terms of intellectual capital with several global IT firms setting up their innovation centres in India.

The IT industry has also created significant demand in the Indian education sector, especially for engineering and computer science. The Indian IT and ITeS industry is divided into four major segments – IT services, business process management (BPM), software products and engineering services, and hardware. - See more at: http://www.ibef.org/industry/information-technology-india.aspx#sthash.hdEfXgBd.dpuf

India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India.

Social,mobility, analytics and cloud (SMAC) are collectively expected to offer a US$ 1 trillion opportunity. Cloud represents the largest opportunity under SMAC, increasing at a CAGR of approximately 30 per cent to around US$ 650-700 billion by 2020. The social media is the second most lucrative segment for IT firms, offering a US$ 250 billion market opportunity by 2020. The Indian e-commerce segment is US$ 12 billion in size and is witnessing strong growth and thereby offers another attractive avenue for IT companies to develop products and services to cater to the high growth consumer segment.

Future Vision :

IT Support :

Software support services are generally technical support or break/fix services that are delivered for specific software products. These services include revenue derived from long-term technical-support contracts or pay-as-you-go, incident-based support. Software support services typically include remote troubleshooting capabilities, installation assistance and basic usability assistance. Remote troubleshooting capabilities may be delivered via telephone and online communication media or without human assistance through automated means that reside on the customer’s device or are available on the Web.

Software support services may include new product installation services, installation of product updates, migrations for major releases of software, other types of proactive or reactive on-site services, and support for custom application or infrastructure software. Services may be delivered by a product vendor, a consulting firm or third-party software maintainers.

Software products and technologies covered under this category include commercial and custom operating systems, application software, and infrastructure software. Software support services do not include software license code updates and upgrades, which vendors often report as software maintenance.

Software testing:

Software testing is an investigation conducted to provide stakeholders with information

about the quality of the product or service under test.[1] Test techniques include the

process of executing a program or application with the intent of finding software

bugs (errors or other defects).

Software testing involves the execution of a software component or system component

to evaluate one or more properties of interest.

, all software testing uses some strategy to select tests that are feasible for the available

time and resources. As a result, software testing typically (but not exclusively) attempts

to execute a program or application with the intent of finding software bugs (errors or

other defects). The job of testing is an iterative process as when one bug is fixed, it can

illuminate other, deeper bugs, or can even create new ones.

Software testing can be conducted as soon as executable software (even if partially

complete) exists. The overall approach to software development often determines when

and how testing is conducted. For example, in a phased process, most testing occurs

after system requirements have been defined and then implemented in testable

programs. In contrast, under an Agile approach, requirements, programming, and

testing are often done concurrently.

Software Development :

Software development is the process of computer programming, documenting, testing,and bug fixing involved in creating and maintaining applications and frameworksinvolved in a software release life cycle and resulting in a software product. The term refers to a process of writing and maintaining the source code, but in a broader sense of the term it includes all that isinvolved between the conception of the desired software through to the final manifestation of the software, ideally in a planned andstructured process.[1] Therefore, software development may include research, new development, prototyping, modification, reuse, re-engineering, maintenance, or any other activities that result in software products.[2]

Enable self-organization: Specify rules, not a detailed plan, and empower your employees with more connections, information, and freedom. Encourage experimentation to speed innovation, and begin to regard failures as an investment.

Recombine to reinvent: Borrow ideas and practices liberally, make every product upgradeable, breed ideas and processes early and often, and view interchangeable modules for people and products as essential for mass customization.

Make boundaries permeable: Increase the number and density of connections to your environment to speed information low and adaptation, be transparent with your information, and promote diversity of opinions and experience to speed innovation.

Close feedback loops: Measure your company and market reactions continuously and in real time, understand and measure intangible assets, and avoid anonymity to increase trust, reputation, and information low.

Apply selective pressure: Balance encouraging diversity with iltering the bottom 10 percent of people, processes, systems, values—of everything. Manage your network toremove less-productive partners, and demand continuous innovation from your technologies and practices.

Live at the edge of chaos: Sense changes in the environment and respond,

embracing disequilibria over stability, and use more resources to explore new

possibilities for your business.

Q8. With the current decline in performance of many IT companies over the past 4 years, what would be the top 10 strategies that India needs to take to bring change in ITscenario in next 2 years?

Measuring Operating Performance Before, During and After the Changes

Engage people productivelyBuilding commitment to changeA new approach to measurement: using a balanced approach to increase accountability

and ownershipUse measurement to generate team excitement

Establishing Key Indicators of Performance

Measure the past and the future performanceTrack the intangiblesSet 'SMART' goals by benchmarkingPlanning for improvement – sharing responsibility for change

Creating a Project Improvement Team

Selecting the right peopleInvolving people outside your departmentRunning productive meetingsIt’s an expensive move short-term, but the ability to quickly impact day-to-day

operations will pay huge dividends over the long-haul.

Using Process Mapping to Create Seamless Processes

Process mapping describedDefine steps to improve a processDocument your current processPrioritizing opportunities: the Pareto principlePracticing process mapping in a team environment

Process Improvement Strategies

Focusing on value-added activitiesRemoving waste and duplicationDeciding whether to modify the process or build a new process from scratch

Flow charting and documenting your performance improvementsDeveloping action plans for improvementsThe outsourcing conundrum

Implementing Strategic Changes

Getting ready for radical improvementsDefine change and overcoming the challenge in the change managementDeveloping a workable implementation plan

Get people to stay

Reduce attrition rate - Promotions and hikes wouldn’t suffice. Employees are inspired when “they are part of doing something great”Give employees a renewed sense of pride and directionAcknowledge good workEmpathize employees

Turn order takers into innovative thinkers

Think innovativeThe power of employee engagementShape mind to deliver something better and bigger

Seeking outside help

A significant help can be taken from industry experts outside of the company

Shuffling managers

Shuffle the innovative managers to improve cross domain performance.

Getting serious about M&A

Think about mergers and acquisitions.

Focus on IP (Intellectual Property)

Lot of potential to transform itself into a player with significantly more productive IP

Q 6. Describe the role of venture capital funding for IT industry? How should one evaluate to minimize the risk of funding and enable contribute growth to the industry?

Answer –

“Venture capital fund means a fund established in the form of a company or trust, which raises monies through loans, donations, issue of securities or units as the case may be, and makes or proposes to make investments in accordance with theseregulations.” (SEBI)

Venture Capital is money provided by professionals who invests alongside management in young, rapidly growing companies that have the potential to develop into significant economic contributors.

The Opportunity areas in IT -

Software Products

o Wrapper applications

o Embedded Software

o Communications / networking

o Chip design

Software Services

Internet based services

IT Enabled Services

o Call centres,

o Medical transcription,

o Legal databases, etc.

Wireless

o Next killer application

o Major role in enabling technologies

Broadband

o Broadband infrastructure

o Last mile broadband

o Cable Internet

Financing Options

Personal funding

Friends and Relatives

Banking system

Financial Institutions

Equity & Debt

IPO

FII

Venture Capital

Role of Venture Capital in funding for IT industry –

1. Drivers of Venture capital –

Knowledge based industries like IT industry growing fast and mostly global; less affected by domestic issues

World class engineers, professionals, entrepreneurs - success evident in the US as well

Evidence of this in the US as well

25% of small IT companies in the US have Indian founders (Upside)

Disproportionately large presence of Indians in the US Software Sector (1 million?)

50% of all H1 visas issued to Indians

2. Supportive Regulatory Environment –

• Government highly supportive of growth in technology and knowledge based sectors

• Strong and supportive legal framework – Information Technology Act, VC norms, ESOPs, copyright, etc

• Government controlled telecom being fully deregulated

• Capital Market system amongst most advanced in Asia

• Electronic trading – through NSE and BSE

3. Advantages of Venture Capital –

Venture capitalists have nurtured the growth of high technology and

entrepreneurial communities resulting in ….

Significant job creation

Economic growth

International competitiveness.

4. Investment Philosophy of VC –

The basic principal underlying venture capital – invest in high-risk projects with the anticipation of high returns.

Venture capital is Equity Financing for new concepts & ideas - Risk Capital. It is available for sectors with high growth potential. IT industry is very promising with this aspect. It is knowledge based with high growth potential.

Venture capital is not long term money. The idea is to invest in an organization until it reaches a sufficient size and credibility so that it can be sold to other corporation or to public equity market.

Venture capital is an important source for start-ups in the IT industry because other sources like Banking institutions would be able to offer finances due to lack of collateral assurance deposits by the start-ups.

It must be noted that during 1999, approximately 80 percent of the estimated US$ 30 billion worth of venture capital invested in United States, went to technology firms.

According to data from Venture Intelligence, the IT/ITeS segment garnered the lion’s share of the funds and did the most number of deals this year in India.

Venture capital can help in upscaling of small units and start-ups in IT industry. Theynot only provide funding but also technical assistance and help in management.

Points to remember to minimize the risk of Funding –

1. The investment profile – rather than the idea the type of industry is important. Choosing a right industry is important to minimize risk.

2. Getting the right deal –

6. If the venture fails, to ensure that they are giver the first claim on company’s assets.

7. Blocking or disproportional voting rights over key decisions, like sale of company or timing of IPO

8. Anti-dilution clauses

3. Understanding of the following –

History of firm - Creation of new brands, Entry into test market, Assessment of test

market and adjustment to strategic direction and tactics

Market assessment - Nature of business opportunity, Market potential,

Competition, What is your USP?

Leadership Team

Setting Goals

Proper Marketing strategy

Proper Financial strategy

Organisation strategy

Performance to date of the organization

4. Detailed analysis (Due- diligence)

Objective Historical Information Financial statements

Contracts

Records of performance (invoices, shipment records, reclamations, etc.)

Every statement about you and your company’s track record

Historical balance sheets

Income statements

And each line or historical statement is associated with documentation

Balance Sheet documentation - Assets vs Liabilities, Invisible risks

Income statement – Revenues vs Expenses

7. An IT company TI specialized in technology and provides services around it for the

past 18 years. Another company that is specialized in business verticals such as

healthcare and pharms, aviation engineering services, etc. merge to leverage best of

both

organization to increase their global market share. Describe briefly the high level

activities that you will take up as IT Director for the merged organization.

Ans.

The role of IT director should focus on following Strategy. This is a merger of 2 companies IT

and NON IT

Managerial Aspect:

Analyse the strengths of both the companies. Analyse the current business / experts solution provided which is being done by

companies in IT as well as other Pharma/Engg. Plan and strategies how IT can be best implemented in the other companies in order to

have better level of services, have competitive advantage due to its wide consumer base, Applying TI best IT practices and expertise to cater business to new organization.

Prepare a road map for getting in new business and expanding on Global Level

exploiting the existing markets and CREATING NEW MARKETS for the unique Products.

IT Strategy

Merger would require both the companies to come to single platform for communicating

business related operations. Making Changes to IT system wherever required and integrating the IT System in order

to have a single view of all operations taking place in organizations. Ensuring all the IT Policies and Strategies are in sync with the Merged Companies.

Formulate and impose new Policies and strategies wherever required since companies belong to different BU.

Upgrade Technologies wherever required to gain an external edge to serve new

industries. Merging of the companies would also mean merging of the IT teams within the

organization. TI specializes in IT domain and thus its IT team would be better than new

merged companies. Alternatively other company has business expertise which will be required to be mapped into IT for making process better.

Other IT factors mentioned below in notes

IT Strategy ( Detailed Pointers)

When organizations combine or restructure as a result of a merger or acquisition, they need to:

■ Inform customers of both entities on the need and impact of the merger

■ Create a “100-day plan” outlining the priorities for the immediate activities and communications of the new entity

■ Implement change management processes and thorough communication to all employees

■ Streamline processes

■ Integrate systems and implement new policies and procedures that leverage best practices

The key to a successful M&A is the effective and efficient integration of two organizations into a single business unit, capable of executing the vision of management. Integration of people, processes, policies, technology, products, customers, and solutions toward this vision is most important. The key aspects of a successful integration.

It is most critical to document the desired “To Be” state at the earliest and ensure a core team is formed that will work toward that state.

High Level Plan

Gather Requirements and Assess Gaps in Capabilities

CIOs need to develop a comprehensive understanding of the IT resources on both sides of the

deal to determine how the two entities can fit together, where any possible synergies can be

found, and where integration risks might lie. This requires a census of IT infrastructure and a

plan for rationalizing resources and eliminating redundancies in the department. Areas of

analysis include the following:

• Hardware, software, and network systems

• Enterprise platforms (e.g., ERP and/ or CRM systems)

• Corporate programs for specific lines of business, products, services, and vendor platforms

As part of this understanding, CIOs must define how best to provide IT support for the

company’s long-term growth strategy. when IT and business units are working closely together,

CIOs can assemble a comprehensive list of all initiatives and objectives related to IT support for

the merger.

1. IT support would be crucial in helping other departments throughout the new corporate

structure to achieve their savings targets. For example, integrating field support applications

alone would make up about 15 percent of total savings, more than twice the savings from cost

reduction in the IT department itself

2, To ensure that IT understood the operational requirements of the entire company both during

and after the merger, the CIO assigned a point of contact for each business team early in the

process.

3. Through regular and extensive communication with those teams, the IT department was able

to generate a comprehensive list of IT objectives for all business lines

Prioritize Initiatives

Given that IT resources are likely to be stretched thin during merger integration, technology

leaders must take a systematic approach to ensure that these resources get deployed in the

most effective way. These priorities should be considered across three dimensions a. Business

impact, b. Ease of implementation, c. Expected business benefit

4. Those objectives were then prioritized based on risk, potential savings, and available IT

resources. e. g. The most immediate IT priorities were to integrate the following:

• Financial reporting systems (due to the risk of missing key reporting deadlines)

• Field use systems

• Corporate architecture from the two corporate platforms, which required members of both of

the IT departments and their complementary skill sets

Develop an Integrated Implementation Road Map

After prioritizing we can translate this list into a road map, including sub-projects, detailed

timelines, and contingency plans. The map will likely uncover overlaps across the prioritized

initiatives and key gaps in the IT capabilities needed to carry them out. First, IT departments

must balance multiple types of projects and initiatives from the three primary objectives

discussed earlier: continuing business-as-usual operations to maintain stability during

integration; rationalizing IT applications, infrastructure, and staffing resources of the combined

entity; and supporting business projects that require adjustments to IT platforms. Second, these

departments must identify and address sequencing issues. Several initiatives may have related

interdependencies that mandate a specific order of execution

5. once applications and architecture were successfully combined, the IT department itself could

be integrated, which involved staff rationalizations

6. In the end, the company identified significant additional opportunities to rationalize resources,

captured the best practices and talent from both organizations, and implemented the new

operational capabilities it sought.

A strong governance structure ensures that IT and business lines are aligned throughout the

integration process. The ultimate goal of governance is to provide a clear direction ensuring on-

time and within-budget completion of the integration activities, while realizing all potential cost

savings and synergies.

Other considerations

1. communication and collaboration infrastructure

2. IT strategy include the adoption of technologies (e.g. social networking applications, skills

based routing, etc.) to help employees find the “best skilled” person

3. support increasingly “fluid” workforce and facilities

4. New working and reporting relationships will be established; how will your company enable

this while minimizing travel expenses

5. the infrastructure to successfully integrate two sales forces

6. Facilities may be closed in some regions and moved or opened elsewhere; how will you

support such activity

7. plan to ensure effective, efficient contact center operations during and after the acquisition

integration