technology captives in india & crossing the cost-value chasm

© 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

[email protected], 99457-57913

19-Dec-2008

www.catalign.com/articles.htm

Dr. Pradeep Desai

Technology Head

Tata Consultancy Services

[email protected]

http://inov-n.blogspot.com/

cost value

Presented at International Conference on Doing Business in India, 18-19 Dec, IFIM, Bangalore


Meet Mr. SamManaging Director, XYZ Technologies India Private Limited


Today, Mr. Sam is a happy and proud man. Why?



30in 2000

3000in

2008

He contributed toIndia growth story



He built a competentteam

Augmentingonsite

ManagingProjects from

India

30in 2000

3000in

2008

He contributed toIndia growth story


Sometimes, Mr. Sam is worried. Why?



Cost advantage

Cost advantage



Cost advantage

Cost advantageComplacency


One day, Mr. Sam comes across Partnership Maturity Model (PMM) And Mr. Sam is excited. Why?


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


Mr. Sam starts building capacity to cross the chasm systematicallyWhat all does he do?


(1) Mr. Sam identifies key challengesWhat are they?



Headcountdriven

biz model



Headcountdriven

biz model

Leadership for the

uncharted territory



Headcountdriven

biz model

Leadership for the

uncharted territory

Deep domain &product

understanding


(2) Mr. Sam starts new initiativesWhat are they?



RIALTE

SOA

CloudSAN

Anchor ontoparent Co’stech roadmap



RIALTE

SOA

CloudSAN


Start internal venture fund



RIALTE

SOA

CloudSAN


Start internal venture fund

Develop technologyfor emerging

markets


(3) Mr. Sam identifies critical success factorsWhat are they?



Value metric

Value contribution



Value metric

Value contribution

Marathon mindset(sustainability)


cost value

Movin

g Up T

he Val

ue Cha

in

Imperative Serious challenge

cost value

Would need systematic & sustainable effort

Summary