Strategic management

By: Aditi DeodharPrutha DeshpandeSaurabh

Ambaselkar

Introduction Resource based view Critical success factor PEST Analysis Porter 5 force Analysis SWOT Analysis Partnerships Mission Value Proposition Business level strategy

Agenda

Cognizant started as a division of Dun & Bradstreet focused on full lifecycle software projects.

Founded in 1994 by Kumar Mahadeva Publicly listed in 1998 (NASDAQ) Headquartered in Teaneck, N.J. 25 sales offices around the world 50 global delivery centres Employs 130,000 people

Introduction

Information technology consulting Technology Consulting Complex Systems Integration Application Development and Maintenance Business Process Outsourcing IT Infrastructure Services Analytics, Web Analytics Business Intelligence Data Warehousing CRM and social CRM Supply Chain Management Engineering Management Solutions ERP, R&D Outsourcing, and Testing solutions.

Services

77.20%

19.20%

3.60%

Revenue

North America

Europe

Rest of World

42.30%

25.90%

18.60%

13.20%

Revenue

Financial

Healthcare

Mfg, Retail, Logistics

Assets

• Human Resource• Intellectual

Property

Capabilities

• Multiple product• Performance &

Reliability• Quality Technical

support, training & service

• Responsiveness to consumer needs

Competencies

• Service delivery model

• Broad referral base

• Financial stability & strong corporate governance

• Technical expertise

The resource based view

Tests to Determine Competitive Value

of Resources

Scarcity

Inimitability

Durability

Substitutability

Superiority

Appropriability

Client first - mindset

Uncompromising Standards

Innovation

Talent

Born Global

Financial success

Sound Management

Integrated service portfolio

Critical Success Factor

•Political Stability-- Positive

Political

•Global IT spending- Positive

•Companies- Automation Positive

•Currency Fluctuation Negative

•Attrition High Negative

Economical

•Global Culture Positive

•Working Age -Positive

Social

•New Technology Positive

Technological

PEST

Threat of Substitutes:(Medium)◦Other offshore locations e.g Philippines◦ Price of projects is a major differentiator, the

quality of products being same. RIVALRY AMONG FIRMS: High

◦ 'low-cost, little-differentiation‘ positioning.◦ high industry growth◦ Strong competitors◦ few numbers of large companies.

Porter 5 forces

Bargaining power of supplier:(high)◦Availability of vast talent pool – fresher's and

experienced.

Bargaining Power of Customers (very high)◦Large number of IT companies vying for IT projects –

resulting in high competition for projects.◦ Huge decline in IT expenditure :

Barriers to Entry(low)◦ Low capital requirements.◦ Large value chain

SWOT

SAP

Siebel

Microsoft

Oracle

Informatica

Invensys operations

Salesforce.com

IBM

SAS

T-system

Partnerships

“Cognizant’s single-minded mission is to dedicate our business process and technology innovation know-how, deep industry expertise and worldwide resources to working together with clients to make their businesses stronger”

Mission

“As a customer-centric, relationship-driven partner, we are redefining the way companies experience and benefit from global services. Our unique delivery model is infused with a distinct culture of high customer satisfaction. Cognizant delivers a trusted partnership, cost reductions and business results.”

Value Proposition

Develop long term customer relationships Expand Service offerings and solutions Enhance processes, Methodologies &

Productivity Toolsets Expand Domestic & International

Geographic Presence Continue to be employer of the choice in

the industry Pursue selective Strategic Acquisitions, Joint

ventures and strategic Alliance

Business strategy

Cognizant Technology Solutionsby Robert G. Eccles, David Lane, Prabakar Pk Kothandaraman Source: Harvard Business School Publication date: Jan 17, 2008. Prod. #: 408099-PDF-ENG

“In the highly competitive information technology outsourcing industry, Cognizant Technology Solutions has developed a strategy to differentiate itself by emphasizing building very close client relationships through its "Two-in-a-box" (TIB) model. This model is based on having two people share complete responsibility for the client. In the U.S. or Europe, the "on-site" person, along with his or her relationship management team, is responsible for understanding the client's needs, obtaining projects and properly scoping out the work. The "offshore" person in India or elsewhere, along with his or her delivery team, is responsible for completing the project in a high quality and timely way. The same top- and bottom-line metrics are used to evaluate the performance of both the on-site and offshore managers. This strategy (as opposed to ones based on things like low cost and innovation used by Cognizant's competitors) is intended to build deep and strong client relationships that will maximize Cognizant's "share of wallet." One interesting aspect of TIB is Cognizant Business Consulting, a 1,700-person group which advises clients in the context of helping them develop IT solutions for their business challenges. More recently, and as the next evolution of the TIB model, Cognizant is developing what it calls "Cognizant 2.0" or C2. C2 is a delivery platform based on Web 2.0 technology that enables Cognizant to subdivide work into tasks that can be allocated wherever in the world the best resources within Cognizant exist based on cost, expertise and availability while at the same time maintaining collaboration and integration to ensure timely and high quality delivery.”

Business Strategy

Thank You