“Building a differentiator around design, developments and opportunities in D&E services”

Krishna MikkilineniFebruary, 12, 2009

Context• India’s opportunity to tap the ESO is high– $30B by 2020, will require ~230K engineering resources

– Increased VC/ PE investments

– Government incentives driving investment e.g., Offsets: Indian Air Force floats global tender for 126 fighters

• Engineering Service is different from IT in many ways– Investment intensive

– Business model

– Long cycle time

– Different competition

• Need a different approach– Domain knowledge

– Mindset

– Ownership & life cycle involvement

– Focus and structure

– Differentiation & IP

Engineering Service is different from IT in many ways

• Product vs Process Orientation

• Top line vs Bottomline impact

• Long lead time vs Shorter delivery cycle

• Basic Maths & Science skills vs ability to learn software skills

• Domain vs Functional Expertise

• Higher lead time for reskilling

• High business impact on IP (rights and protection) vs relatively lower IP issues

• Fundamental technology realization vs Future Technologies orientation / leverage

• Different competition (countries and players) vs common competitive field

• Multiple business models linked to product vs standard models with cost & delivery differentiation

Differentiated approach in Domain knowledge

• Maths, Science & Engineering skills• Future Technologies orientation & Fundamental technology

realization• Domain & Technology Expertise• IP creation & leverage• Systems Engg• Supply Chain

Differentiated approach in Mindset

• Ability to withstand the pain of years of delivery cycle• Maintenance capabilities, knowledge repository• Collaboration, Eco system leverage• End-customer proximity for real time need capturing• Business and technology Maturity

• Product lifecycle involvement• External / Marketing collaboration• Maturity Framework• Business ownership

Differentiated approach in Ownership & life cycle involvement

Development Introduction Growth Maintenance Maturity Saturation Decline

TimeTask

Features

Sub systems / components

Systems

Products

Business Model

Road map

PLC

Ow

ner

ship

• Product level / COE level / Center level maturity• Centralized vs de-centralized vs localized structure• Strategic excellence & global partnerships

Differentiated approach in Focus and structure

Outcome oriented structure

Business vertical based

service org

Product / COE centric Org

LOB / Department /

vertical

IntegratedManaged Services

• Compliance to standards, regulations, certifications• Knowledge network • Product roadmap & technology definition• Business alignment• Regional marketing connections & VOC• Innovation, IP• Eco-system leverage and mentoring

Build Differentiation & IP

• Opportunity is big• Game to be played differently• Long term play & ability to take risk• Innovation and ownership mindset

In a nutshell