Case Analysis on

Technologies
Submitted To: Dr .Mayank Dhaundial Prof. Vivek Vajpai Submitted By: Rohit Gupta FT-12-129 PGDM GENERAL

ACKNOWLEDGEMENT

In order to make my project I acknowledge a special thanks to all those people without whose supports it would not be possible for me to complete my report. First of all I really thankful to IILM GSM because of them I could achieve the target. I express my sincere thanks to my project guide Prof. Vivek Bajpai and Dr. Mayank Daundiyal who had guide throughout our project. . Last but not the least I am thankful to my parents and friends who have provided me with their constant support throughout this project.

SUMMARY Introduction
In October 2011, HCLT ERS(2), a division of HCLT(1) launched the 16 productized solution under the EOOTB(3) banner. The EOOTB results were impressive. The ERS division had grown by 26% and business in pipeline by 83%. HCLT ERS also secured the highest customer satisfaction rating. From the customer user perspective, EOOTB had helped to generate $10 billion revenues for customer, many of whom had become leaders in their businesses on the bases of the solution provided by ERS. Sandeep Kishore, the divisions executive vice president said that EOOTB is a differentiator for HCLT. It has given them a unique positioning in the Engineering services business worldwide. There Main focus now is on: How do they build on the competitive advantages that have developed so far to scale up the business? What are the new market they could address in increasing the number of productized solutions? What are the new thought leadership positioning that they could target for the customer? What are the delivery ecosystem that would be necessary? How would they execute them?

The consideration about new potential market and uses centered on new geographical markets that HCLT ERS could target and new types of work in the existing market. To sustain its leadership positioning, it meant finding new tools with which the ERS division continue to retain its cutting Edges. In context of increasing globalization of services, it meant looking the new ways of reaching out to customer and engaging them. In the area of execution, it meant ensuring that everything was in sync so that HCLT would be a one-stop-shop for its customer.

Engineering R&D Services (ERS) Industry

The decade of 2000 marked as a era of beginning on of new trend i.e. outsourcing of engineering services. Majority of manufacturing services such as R&D could deliver original equipment from any part of the world. Outsourcing had also become common in IT (4) Industry and create new market segment like BPO (5) led by Indian IT companies such as HCLT. The global R& D market was $1,100 billion in 2009, and was expected to reach $1,400 billion by 2020. The expansion was driven by three trends: Increasing use of electronic component and communication technologies.

(1) (2) (3) (4) (5)

HCLT- HCL Technologies HCLT ERS- Engineering and R& D Services EOOTB- Engineering Out Of The Box IT- Information Technology BPO- Business Process Outsourcing

Growing convergence of technologies, enabling a single device to perform multiple functions. Rising demand from emerging market, especially India and China, for localized product.

The profile of ERS market was also changing. The complexity of the services being outsourced was going up. If we take Indian ERS off-shoring industry it had grown $7.9 billion in 2009 and was expected to grow to $ 40 billion by 2020.

HCL Technologies- Company Background

HCLT had a long history of innovation, Leadership and advanced engineering and system technology creation capabilities. The company was founded as Hindustan Computer Ltd in 1976 by a group of Indian engineering technology entrepreneurs. HCL had spun off two independent companies in 1991: HCL Infosystem (HCLI) and HCL Technologies (HCLT). By the late 1990s HCLT had become a leading provider of business transformation, enterprise and custom application, infrastructure management and BPO. The company had consolidated revenues of $3.54 billion and post-tax profit of $ 358 million for the year ending June 2011. The company focused on transformational outsourcing whose hallmarks were value creation and innovation; hence, the division was well-positioned to deliver a concept like EOOTB. HCL is a one-stop-shop for customer. HCLT Core Product HCLT had five broad business segments- Business process outsourcing, Infrastructure services, custom application, ERS, and Enterprise application services. The concept of EOOTB was prevalent at 11 vertical, Although the company had a total of 17 verticals that enables ERS to become an industry leader with 12 percent market share of the outsourced global engineering services from India. HCLT Productized Solution The Productized solution were one step short of being full-fledged products; they left the last mile for customizing to the need of the customer. They were HCLTs own proprietary technologies, developed in-house, that could be incorporated in to customers designs. Examples of productized solution were rMed, AEGIS, ITS eCall and many more. It was in tune with the growing demand for cloud that HCLT had released as many as many as three productized solution in one combined platform alone: Cirrus, Nimbo and Agora.

Engineering Out Of The Box

EOOTB Drivers EOOTB grow out of the belief that opportunities existed in creating combination of services and structure around product offering. It was based on the recognition of four megatrends. They are: First the sources of differentiation were shifting from products to services. Patents and Product features no longer delivered market leadership.

Second, customers were seeking value-based relationship rather than competency-based relationships. Competencies had become a minimum entry level requirement. Third, the move towards new concepts such as cloud computing was facilitating a convergence from domain specialized IT knowledge to open platforms. Fourth, there was a growing realization that, in order to be competitive, companies had to exploit ecosystem of collaboration & partnership with those firms possessing capabilities.

EOOTB Concept The new EOOTB model was based on a process where the templates, business stacks and customer-unique ideas were formed into 16 standardized products and then released to different industries as needed. HCLT was the innovator of this process, although competitors were closely following it. Sandeep Kishore, the divisions executive vice president said that EOOTB looks at product development not in isolation but through a system perspective. It develops ideas from extensive user experience and customer co-creation. By 2011, the ERS division of HCLT had a global team of 15,000 of the best managers and engineers from across the company. The division had also taken a policy decision to adopt EOOTB as preferred central theme for all proposals valued at $10 million Plus. EOOTB Customer Benefits The Collaboration with HCLT ERS brought several benefits to customer in specific ways. Some of them are as follows: It helped reduce the cost of the product, which was an important consideration for a client Reduction of overall time to market by around 25 percent was one of the prime benefits of EOOTB that provides competitive advantage to a customer. EOOTB delivered entire solutions at a launch. EOOTB brought to its customer new thought leadership across industry segments, new business model positioning and new streams of revenue. EOOTB also improved the customer ability to launch simultaneously in different geographies in both developed and emerging markets.

Potential User Experiences

Consumer Markets were known to factors in user experience in improving their offerings. EOOTB brought in user experiences to a business-to-business environment and took it a level higher. It integrated the perspectives of not only its own customers but also the latters customers. The goal of the provision of user experience was to increase the adoption of products through the ecosystem. From new customers, HCLT saw growth opportunities in new verticals, new geographies and new value propositions. It strategy of focusing on growth, services innovation and unique positioning in the marketplace had improved its competitive position. There was untapped market potential in the business concept EOOTB that it had pioneered.

Issues Before HCLT ERS

How should the ERS division build on EOOTBs competitive advantage and productized solution to scale up potential user experiences? What are the potential new markets that EOOTB could address? What new thoughts leadership positioning could be targeted for the customers? What are the delivery ecosystem that would be necessary? How should the team execute them?

Possible Suggested Solution

As per the case study analysis, I feel that following are the possible solution as per the issues which are given in case study, which are as follows:1. EOOTB is differentiator for HCLT. It has given us a unique positioning in the engineering services worldwide. - User expectation is increasing and the quality of services should exceed the expectation. Therefore, company provides customized product with readymade solution to the customers. - Customers were seek value-based relationship rather than competency based relationship. so providing the value based service is helpful for getting competitive advantages. - In order to be competitive, companies had to exploit ecosystems of collaborations and partnerships with those firms passessing capabilities - and that HCLT could leverage to gain advantages like going to market faster with more solution. - Development of business stacks for the vertical that it was serving. A business stack was basically a positioning statement focusing on three standard parameters of product, ecosystem, and user experiences. It showcased the value proposition of HCLT for the customer in each parameter. - As productized solutions are not the final products, so these solutions can be customized as per the customer needs. - EOOBT brings in the user experience to a business-to-business environment and took it a higher level. Therefore it integrated the perspectives of not only its own customers but also the latters customers. - Also there is a high growth potential in global market as well as Indian market in different sectors like Aerospace and defense, Automotive, Consumer electronics etc. 2. The potential market for EOOTB is :- PLATEFORM BASED BPO - GREEN IT - CLOUD COMPUTING

BUSINESS ALIGNED IT CROSS SELLING UP SELLING

3 As per my understanding and analysis of the case study, Customers seek value-based relationship rather than competency based relationship. so providing the value based service is helpful for getting competitive advantages there is a great growth opportunities in new areas, geographies and new value propositions. So strategies focusing on overall growth, innovation in services and unique positioning in the market could improve the competitive position of the company. Therefore, HCLT has developed some of the strategies so that their products, services and solution provide a new user experience. Development of business stacks for the vertical that it was serving. A business stack was basically a positioning statement focusing on three standard parameters of product, ecosystem, and user experiences. It showcased the value proposition of HCLT for the customer in each parameter 4 According to the case, I found that following are the delivery ecosystem that would be necessary for the company: Basic Architecture Convergence Re-configurability Digital supply chain Emerging market addressal

5 As per my understanding about the case, team helps in building the experience in products and services by transferring from the interface design to complete development services of embedded components. Therefore following function can be covered such as: Product management Platform Functionality User interface