creationg customer value at tcs

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Executive Summary

Creating customer value: - TCS

The IT industry has its wings all over but to be the swan in the pack of ducks

a niche quality needs to be adopted. Considering the present marketsentiments where the customer is the King what is more appropriate thanto have considerable efforts put in for Creating Customer Value.

Customer value is the difference between what a customer gets from aproduct or service, and what he or she has to give in order to get it. Themost successful organizations understand that the purpose of any businessis to create value for customers, employees, and investors, and that theinterests of these three groups are inextricably linked.

Tata Consultancy Services is an IT services, business solutions and

outsourcing organization that delivers real results to global businesses,ensuring a level of certainty no other firm can match. To align with its visionto be Global Top 10 By 2010 it has to categories its efforts in satisfying 4parameters namely: -

Voice of Customer: - Market /Business insight

Voice of Technology: - New Competencies

Voice of Employees: - Institution Building Insight

Voice of Shareholders: - Knowledge Generation

It being in a Business to Business service industry TCS has to concentratemore on its Quality of Output, its Employee Welfare Programs andInnovation.

We have found TCS successful in the implementation of the followinganalysis models to test its Customer Value Factor

Waterfall model systematic flow for the project and analysis at eachstage.

COIN it is an innovation process following a 360 network system.

Six Sigma Effective mechanism to focus on customer requirementsthrough improvement in process quality

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TQM Their Quality Management processes to ensure that the servicethey deliver has minimal defects.

Lastly some of our recommendations have been included for TCS which willhelp it to maintain its position of the GLOBAL TOP 10 in this era of constant

challenges in speed and innovation.

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INTRODUCTION

Tata Consultancy Services (TCS) was established in the year 1968 and isconsidered a pioneer in the Indian IT industry.

About TCS

Tata Consultancy Services is an IT services, business solutions and

outsourcing organization that delivers real results to global businesses,ensuring a level of certainty no other firm can match.

TCS is one of the largest IT Company & Largest software exporter in India. Itis the first Company in the world to receive an integrated Enterprise wideCMMI Level 5 and PCMM Level 5 assessment. It has the largest Research &Development Centre, and also the largest Training center- which has theability to train 1000 people at a time.

VISIONGlobal Top 10 by 2010

MISSIONTo help customers achieve their business objectives, by providinginnovative, best-in-class consulting, IT solutions and services.To make it ajoy for all stakeholders to work with us.

VALUESLeading change, Integrity. Respect for the individual. Excellence. Learningand sharing

Corporate Information

TCS has over 143,000 of the world's best trained IT consultants in 42countries.

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Revenue of $6.0 billion (fiscal year ending 31 March, 2009).

Awards

TCS tops the DataQuest DQTop20 list of IT Services providers in India for

2008

TCS ranked among Top 25 in Business Week's 2007 Information Technology100

TCS awarded top position in 2007 "Global Services" 100 Top 10 BestPerforming IT Services providers category

SERVICE PORTFOLIO

TCS offers a consulting-led, integrated portfolio of IT and IT-enabled servicesdelivered through its unique Global Network Delivery Model, recognized asthe benchmark of excellence in software development. Some of theindustries catered by them include :-

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IT ServicesEngineering &

Industrial

Services

Asset Based

Solutions

ITInfrastructur

e ServicesBPO

Global

Consulting


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BFSI

42%

Manufacturing15%

Telecom

17%

Life Sciencesand Healthcare

4%

Retail7%

Transportation

3%

Energy &

utilities3%

Others

9%

Revenue from Industry Vertical

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MARKET ANALYSIS OF TCS

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TCS

TECHNOLOGYSOLUTIONS

OTHER SOFTWAREPRODUCTS

SERVICES

TCS Data CleansingFramework

TCS Clin-E2e IT Services

TCS Business RulesEngine

TCS HospitalManagement Solution

IT Infrastructure Services

TCS Experience BasedKM

TCS Silicone AmbulatoryECG Solution

Enterprise Solutions

TCS Call Device andManagement Solution

TCS EnterpriseIntegration and ControlEnvironment Solution/

Energy and Utilities

Consulting

TCS PKI Suite (Public Key

Infrastructure)

TCS Bio-InformaticsSolution

Business ProcessOutsourcing

TCS Certificate ValidationServer

Business Intelligence

TCS File Authentication

Solution

Engineering &Industrial

Services

TCS e-LearningEffectiveness

Measurement Solution

Small & MediumEnterprises

TCS Code GeneratorFramework


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SWOT Analysis

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Strengths

Weaknes


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Management felt the conscious need to bring in changes in their approachto the aforementioned weak areas, in order to align more closely with thecustomer, business andmarket requirements at an organizational level.

Creating Customer Value

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OpportunitiThreats

Threats

OpportunitiOpportunitie


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We have already seen in the above diagram that customer has become themain priority for any business. The customers today have changed from:

Isolated > Connected

Unaware > Informed

Passive > Active

Reasons for the paradigm shift: -

Marketers face unprecedented challenges as cut-throat competition and newservice models undercut pricing, prey on lucrative customers, and disruptestablished markets

Today, operational profitability is no longer enough. Now business success is

dependent on delivering successful customer outcomes that increase loyaltyand reduce turnover and the associated high costs of customer acquisition.

Companies are scrambling to retain customers, induce loyalty, improvecustomer satisfaction, and deliver appealing revenue-producing products.This is becoming ever more difficult because of:

Increased globalization Trends towards decentralization Proliferation of interactive digital media channels, social networks,

mobile messaging devices, and online communities

Reference for Value Creation: A Contrast

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Traditional frame of reference for Value Creation:-

The New Frame of Reference for Value Creation: -

Customer Value Creation at TCS

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TCS being a part of a IT services industry faces the industry norm ofbilling the client per day for the services provided by its employees. This inturn puts more weight on analysing four voices of an organization i.e. voiceof shareholder, employee, customer and technology.

The Organizational Development interventions at TCS focused on balancingtensions arising from these four voices along dimensions of strategizing,valuing, serving, energizing, investing and improving.

The idea is to challenge the conventional ways of thinking and to give shapeto the key drivers of change through realistic listening and dialoguing.

These looked at what TCS was and what they wished to be, theircompetition, changes and challenges with regard to their business models,technologies, products and support functions.

The scenarios addressed the nature of the struggle the organization wouldgo through and etched out realistic possibilities based on present factors.

The roles and context were based on the following:

Wealth creation

Factors which will enhance productivity and enhance the feeling of beingvalued

Resource allocation and team-work

Membership criteria and norms of the group

Learning opportunities for individuals and teams

Organizational Development, Goal alignment and balancedscorecard

In organizations worldwide today, there is a greater realization of theimportance of Organizational Developmental (OD) interventions infacilitating the rapid changes brought about in the current competitive

environment. Organizations today struggle to balance the tensions betweenVoice of Customer, Voice of Technology, Voice of Strategy and Voice ofEmployee.

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With this view to attain better alignment and balance, a need was felt to re-look at a few organizational processes and systems, for instance, theperformance management and appraisal system at TCS.

A Teach-Train-Transfer workshop on Goal alignment was conducted,

with help from expert OD consultants to build the context, to think throughgoal setting at TCS with a systems perspective to goal alignment & toexplore means of institutionalizing goal-oriented performance managementwithin the organization.

A concept of the Personal Score Card was introduced, which clearlyoutlined what would define goals, outputs, performance management.

The Balanced Scorecard approach was proposed, introducingcorporate goals, which also touched upon the following:

Voice of the Shareholder- Financial Goals e.g. Wealth creation Voice of Technology Technology Goals e.g. Quality, Cost, Delivery

dimensions Voice of the Customer Customer/ Market Goals e.g. Customer

Satisfaction Voice of the Employee Learning & Development e.g. Employee

These have become increasingly important in the context of a globalizedand dynamic market, which makes competitive advantage and sustainabilitythe key mantras of corporate survival and success.

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Voice of

Shareholder

Voice of

Shareholder

Voice of

Shareholder

Voice of

Customer

Voice of

Employee

Institution

Building

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Voice of

Knowledg

e

Market/ Business

Insight

New

Cash

Employee

Satisfaction

Customer

Satisfaction


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Voice of Customer

WATERFALL MODEL To value Customer Voice

CLASSIC WATERFALL MODEL

The waterfall model is a sequential software development process, in whichprogress is seen as flowing steadily downwards (like a waterfall) through the

phases of

Requirement Gathering (Conception)

Design (Validation)

Implementation (Construction)

Testing (Verification)

Maintenance

To follow the waterfall model, one proceeds from one phase to the next in apurely sequential manner. For example, one first completes requirements

specification, which is set in stone. When the requirements are fullycompleted, one proceeds to design. The software in question is designedand a blueprint is drawn for implementers (coders) to follow this designshould be a plan for implementing the requirements given. When the designis fully completed, an implementation of that design is made by coders.Towards the later stages of this implementation phase, separate softwarecomponents produced are combined to introduce new functionality andreduced risk through the removal of errors.

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Thus the waterfall model maintains that one should move to a phase onlywhen its preceding phase is completed and perfected.

Disadvantages:

Real project rarely follow the sequential flow that the model proposes. The waterfall model requires all requirements explicitly, but it is often

difficult for the customer to state all requirements explicitly. It is difficultfor customer to have unchanging requirements in realistic projects.

A working version of the program will not be available until late in theproject time-span.

Freezing the requirements usually requires choosing the hardware (sinceit forms a part of the requirement specification). A large project mighttake a few years to complete. If the hardware is selected early, then dueto the speed at which hardware technology is changing, it is quite likelythat the final software will employ a hardware technology that is on the

verge of becoming obsolete. This is clearly not desirable for suchexpensive software.

Project may miss functionality if not all requirements were captured inthe requirements stage.

Bugs are expensive to fix and new requirements are expensive toincorporate.

Complete testing is not possible, as unit testing is not a taken intoconsideration in this model.

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MODIFIED WATERFALL MODEL USED BY TCS

Advantages:

Waterfall model provides a template into which methods for analysis,design, coding, testing and support can be placed.

Stages and activities are well defined Helps to plan and schedule the project

Verification at each stage ensures early detection of errors /misunderstanding

Total Quality Management (TQM):

TCS takes responsibility for the products and services it delivers. TheirQuality Management processes ensure that the service they deliver has

minimal defects. TCS also provides warranty periods in its contracts with itscustomers for after-delivery service in the case of a defect.

TCSs commitment to quality and schedules ensures that the client's needsare met consistently. It adopts a systematic approach to problems andencourages experimentation, innovation and creativity in finding feasiblesolutions. Being a process-oriented organization, TCS believes that the

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definition of a good process and subsequent adherence to that process is acritical part in ensuring a successful project.

Quality Management System: TCSs Quality Management System (QMS)is based on the ISO 9001:1994, IEEE standards, ISO 9001-3 and CMM

Guidelines. Well-defined architected processes are adopted fordevelopment, implementation, maintenance and conversion projects. Theseprocesses are defined in the Process Handbook documents which form apart of the TCS QMS. TCS also conducts different reviews at different stagesof the project life cycle to ensure high quality.

Reviews: There are three levels of review that are performed- InternalQuality reviews, performed by members of the project team, ExternalQuality reviews that are carried out by analysts external to the projectteam and a Final Inspection to make sure all open defects andsuggestions have been closed.

The objectives of the review will be to ensure that-

The project requirements are met.

No errors have been introduced,

Standards are adhered to,

Testing has been adequate.

Testing: Different type of testing is done to make sure that the systemworks at its most minute level, as well as a whole.

Unit Testing: Testing each module/block as a single unit

Integration Testing: Testing the different interfaces of the system tomake sure it works as a whole.

System Testing: Testing the system for system level functionality,security, external interface, usability and integration of the differentmodules under it.

Acceptance Testing: Based on pre-defined acceptance criteria, theclient conducts the acceptance test during this phase. The TCS teamprovides support during this phase.

Here is a case on how they go about handling a customer complaint.

Project: GEHC.

Business Unit: Data warehousing

Tool: Informatica

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Task: Mapping to make data flow from source database in Oracle to targetdatabase in Teradata subject to conditions and filters implemented in themapping

Error Handling:

--Run to workflow for particular mapping and check the data in source aswell as target tables in respective databases.

--Checking of data to be done using SQL querries and giving filters as perclient requirements

--If the target and source data do not match the expected results, then thereis an error

--To find the error source, use "debug" function in Informatica Manager Tool

and run the mapping step-wise as a trial run.

--In every step you get to see the results and then can find out whichfield/key is not appropriate compared to expected result at every step.

--After debugging, on finding the exact table which is cause of error, edit themapping accordingly and re-run.

--Repeat the process till you get expected/correct result in target database.

SIX SIGMA PROCESS

Six sigma provides an effective mechanism to focus on customerrequirements through improvement on process quality. In TCS 6 sigmaprojects are being carried out with the objective of improving on timedelivery, product quality and in-process quality.

6sigma quality quantitatively means that the average review processgenerates 3.4 defects per million units when a unit can be anythingranging from a component to a line of code. This implies that nearlyflawless execution of key processes is critical to achieve customersatisfaction and productivity growth.

In TCS since 1998 ten six sigma projects have been completed. Sixsigma projects have been identified in the areas of improvement afteranalysis of process and product against the centre level specificationlimits.

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Voice Of Technology

TCS Co-Innovation Network (COIN)

Globalization has lead to higher competitions, in which competitors quicklyimitate sources of competitive advantage. Hence, it becomes necessary forcompanies to successfully innovate on a sustained basis.

Globally Distributed Network (GDN) combined with the need for tapping

capabilities from other companies and the challenges of innovation deliveryhelped Tata Consultancy Services (TCS) move to the next level i.e. ITServices Partner to Innovation Partner.

Disruptive innovations are not a result of a single technology invented by afew people but a combination of various innovations along the entirespectrum (idea generation to consumption) thus making it necessary tocollaborate. The framework of Innovation Network is perhaps the onlysustainable way to deliver innovation in todays environment. Innovationnetworks as a concept is not completely new.

Typically it has been the technology delivery entity, e.g. Microsoft, IBMdriven innovation networks, or the research entity, e.g. Gartner, Googledriven innovation networks that has been controlling the network and thusbeing the principle beneficiary.

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Client companies end up being customers of the innovation initiativescoming out. In the case of TCS, it is one of the few instances of a clientdriven innovation network where the research and delivery elements are

participants.

With that 360-degree outlook in mind, TCS has convened a global,interconnected innovation ecosystem the Co-Innovation Network, or COIN that links businesses large and small, well-established and new, with abroad network of partners, suppliers, leading-edge vendors, outsideconsultants, academic institutions, and venture capitalists. The primepurpose of COIN is to create for IT and the business it supports the largestpossible funnel of innovative and profitable ideas from numerous,collaborative sources inside and outside an organization. The key togenerating, sustaining, and profiting from innovation is to participate in a

multi-organization innovation network that creates a funnel of ideas full andrich enough for some of them to survive the journey from thought tobusiness-transforming action. A true COIN framework needs to be developedto strengthen two key aspects the ideation perspective and theexecution capability. One of the principle benefits of COIN is spreading therisk of new undertakings across multiple partners to reduce each partnersindividual risk, while spreading the search for new ideas across multiplepartners to increase the flow of ideas into the funnel and the flow ofinnovation back to the partners. Once the funnel is filled with ideas,management can take ideas from concept to implementation.

TECHNOLOGY EXCELLENCE GROUP

The job here includes interfacing with the organization on a technologicallyenhanced level and provide the necessary updates.

GROUPWARE

Groupware has been defined as computer based systems that supportgroups of people engaged in a common task (or goal) and that provide aninterface to a shared environment. People can share information withoutconstraint of time and place, and the tools would attempt to provide just in

time information to users. Groupware attempts to augment ( rather thanreplace ) human capabilities and needs software designed forinteroperability and openness.

GREEN IT

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Green has become a social and business imperative. Switching off monitors,servers and unused equipments are equally necessary but as an engineerwe can do more to reduce ITs energy footprint. TCS got started with GreenIT by becoming a member of Green Grid. Learn ways to leveragetechnologies like virtualization cloud to save energy and develop efficient

solutions. Efficiency is not just about hardware but technologies like data de-duplication, Flash storage, Tiering based on Service levels etc will also saveenergy & resource cost.

NEXT GENERATION DATA CENTRES

The next generation data centers are going to be in a significant scale.These data centers are definitely going to be 100% virtualized. Evenenterprise desktops are moving to the data center and virtual desktops willbe the de-facto standard of the future. The data center fabric will beconverged and 10Gb or 40 Gb fabric will bring in lots of consolidation in the

network. There will be a sophisticated management orchestration. Securitywill be built in all the layers of the data center. Energy really matters in aNGDC and they will be super efficient. NGDC will federate with a serviceprovider cloud to ramp up and down additional resources required.

Voice of Employee

KNOWLEDGE MANAGEMENT

Includes learning from past projects, which also provide incentives tocreate knowledge assets for new projects that can benefit clients in

future. Provides various online/offshore/onsite trainings and certification

courses.

Trainings are pertaining to technology, client specific domain andpeople skills related.

Current Initiatives

Account Excellence Plan:-

Scoring is done under each of the 7 categories and the score shared acrossthe relationship, to identify gap and action on these.

Nakshaktra Award:-

This is a Reward and Recognition initiative within the relationship. Nakshatrais awarded to encourage star performers for each month within each

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Business Unit of the relationship. The unique feature of this initiative is thateven team members can nominate their peers.

In Touch:-

Is an interaction / mentorship initiative with the lead of the relationship,wherein a certain timeframe is decided upon, during which any employeecan walk in to meet the lead and discuss out any problems/ suggestions forimprovement in the relationship.

Fun@ Relationship level:-

This was initiated to bring in a spirit of team camaraderie and to act as astress buster. There are champions within each unit who drive these funactivities in the relationship.

Toast Master Club/Lets Talk:-

The main objective is to enhance personality/communication ability ofassociates in the relationship and to help them gain confidence throughsessions by certified facilitators.

Open House/ Town halls:-

The objective was to encourage strategic communication, and to discuss thelarger vision and achievements at relationship level with all employeesacross the Business Units. This also serves as a platform for recognizing

good performers and celebrating milestone achievements.

Associate Satisfaction Survey (Darpan):-

To gain an insight into the strengths and weaknesses in the relationship andidentify areas for improvement.

Walk the talk:-

A senior associate within the relationship takes any new joinee to therelationship, on a tour of the facility. The aim of this initiative is to make the

new entrant feel valued. This is followed by a simple quiz to check theeffectiveness of this initiative.

Resource Management Group;-

In an IT industry where company assets are its Software engineers andconsultants and when the business revolves around the needs of the

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customer, The Objectives of Resource Management Group is to helpOperating Units by managing the workforce through effective UtilizationPlanning and Resource Management Strategy that align with the businesssituation and goals.

The responsibilities of RMG are multifold, key among which is to determinethe staffing needs of the organization and the mode of fulfill the same -whether to use independent contractors or hire people to fill these needsinternally or externally, making sure that the technologies they imbibe arerelevant to the business, ensure they are high performers, people mobilityand execute the workforce strategy that align with the customerexpectation.

Voice of Shareholders

At TCS the voice of the Employees along with the voice of the

Customer and Technology helps achieve the Voice of the Shareholders inform of the respect the brand name commands along with the financialperformance of the organization.

Recommendations:-

Six sigma processes should be implementation on an organizationlevel.

Strengthen client relationship by bringing out best from all clientinteractions, by maintaining multi-level relationship with them and bystrengthening client facing systems and processes.

Implement and monitor effective Program/Project Management

Innovation: Customer service is necessary but not longer sufficient forloyalty and retention. Faster Innovation is required to stay ahead ofcompetition. Innovation is not the eureka moment but the effectiveexecution of visioning and winning strategies.

Prevail Through Speed: Time to market and realization of benefitsmake the difference between leaders and followers. Leverage GDM,tools, and accelerators to outpace competition.

Succeed Through Predictability: Will help organization execute anddeliver projects on time within budget and with an error free trackrecord.

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creationg customer value at tcs

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