competitor 2.doc

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INTRODUCTIONEngineering Out Of the Box (EOOTB), an innovative business concept that ERS (Engineeringand R&D Services), a division of HCL Technologies (HCLT), a global IT services corporationheadquartered in New Delhi, had initiated in 2009. It had launched 16 productized solutions

under divisions Executive Vice President Sandeep Kishore.

EOOTB Impact

The ERS division had grown during 2009 and 2010 at a compound annual rate of 26 per centBusiness in the pipeline had grown by 83 per cent. HCLT ERS had also secured the highestcustomer satisfaction rating.By mid-2011, it had 50 per cent of the top 100 R&D companies inthe world as its customers.From the customer user perspective, EOOTB had helped its productand technology customers go to the market faster by a time factor of between 20-25 per cent.Ithad generated a total of more than $10 bn revenues for customers..

Some of the potential areas of focus are:

What are the new markets they could address in increasing the number of productized solutions?New Geographical area and new work it could look.What are the new thought leadership positioning they could target for the customers?Finding new tools which give ERS a cutting edge differentiation.What are the delivery ecosystems that would be necessary? How do they execute them?Everything would be in sync and one stop solution for customer.

ENGINE E RING R&D SERVI C E S ( ERS ) I N D U STRY

In 1980s, the industry was changing from product-led growth to include manufacturing servicesgiving additional growth. Decade 2000 start a beginning for outsourcing of engineering services.A majority of manufacturing services, such as research and development (R&D), could bedelivered to an original equipment manufacturer from any part of the world.

HCL TECHNOLGIES COMPANY BACKGROUND

HCLT had a long history of innovation, thought leadership and advanced engineering andsystems technology creation capabilities. The company was founded as Hindustan ComputerLtd. (HCL) in 1976. The initial objective was to design, produce and market scientificcalculators. The company soon expanded into manufacturing computers.

The company set up its own manufacturing plant in California to produce a U.S but it wasunsuccessful due to low brand image in US. HCL then decided to divide into two independentcompanies in 1991:HCL Infosystems (HCLI) : system integrator company and manufacturer of computer hardwareHCLT was a leading global services provider of IT services, IT infrastructure services, ERS andBPO services.By the late 1990s, HCLT had become a leading provider of business transformation, enterpriseand custom applications, infrastructure management and BPO. It has service delivery across 31


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countries. HCLT had grown by 29 per cent CAGR. The company had consolidated revenues of$3.54 billion and PAT of $358 million for the year ending June 2011Reason why HCL was efficient to give a concept like EOOTB :.

ENGINE E RING O UT OF THE BOX

EOOTB Drivers

In 2009, EOOTB grew out of the belief that opportunities existed not just in building products,orboxes, but in creating combinations of services and structures around product offerings.It was based on the recognition of 4 trends.Products can be easily replicated and patents are notable to provide market leadership/differentiation. Companies were developing competitiveadvantages based on giving more preferences to services.

EOOTB Concept :

SHCLT launches EOOTB with 500 engineers and managers. The process was based ontemplates, business stacks and customer unique ideas which lead to development of 16standardized product. It considers products, solutions and services as an integral part of theecosystem and delivers them around a platform. By 2011, ERS division had 15000 managesacross company .EOOTB Customer Benefits:

Give design and development expertiseTake responsibility from innovation to day to day product managementReduction of overall time to market by around 25 per cent was one of the prime benefits of

EOOTB that provided competitive advantage to a customerEOOTB brought to its customers new thought leadership across industry segments, newbusiness model positioning andnew streams of revenue.

HCLT were the 16 productized solutions :AEGIS, Agora, NIMBO, CIRRUS, Anugna, SCRUTINY, Athena, UECPx, MDOS, H-PAC, rMed, Track & Trace, ITS eCall, FraME, GDW and SP Dais

HCL CORE PRODUCT:

HCLT had five broad business segments business process outsourcing services, infrastructure

services, custom applications, ERS, and enterprise application servicesThe concept of EOOTB was prevalent at 11 verticals so far: aerospace and defense,automotive, consumer electronics, energy, independent software vendors, industrialmanufacturing, medical devices, retailing, semiconductors, server and storage, andtelecommunications.

HC L T PR OD UCTIZ E D S O LUTI O NS


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The productized solutions were one step short of being full-fledged products; they left the lastmile for customizing to the needs of the customer. They were HCLTs own proprietarytechnologies, developed in-house, that could be incorporated into customers designs. HCLT hadreleased 16 of them over the last two years, and another 20 were at various stages ofdevelopment.

rMed which was used by original equipment manufacturers for building medical devices suchas scannersAGORA was a cloud service management platform that was used by enterprisesand customers driving cloud adoption.AEGIS was another example of HCLT ERS productizedsolutions. It was a multi-platform, smart, home automation solution ITS eCall developed byHCLT ERS for the automotive segment.

POTENTIAL USER EXPERIENCES

EOOTB brought in user experiences to a business-to-business environment and took it a levelhigher.. HCLT saw growth opportunities in new verticals, new geographies and new valuepropositions. Its strategy of focusing on growth, services innovation and unique

positioning in the marketplace had improved its competitive position.

ISSUES BEFORE HCLT E RS IN OCTOBER 2011

Team were facing the following questions:How should the ERS division build on EOOTBs competitive advantage and productizedsolutions to scale up potential user experiences?What are the potential new markets that EOOTB could address?What new thought leadership positionings could be targeted for the customers?What are the delivery ecosystems that would be necessary?

How should the team execute them?


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