Description
This is document describing the core business process in IT firms.
INDEX
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Introduction Industry Overview Managing Business Processes in Recession by IT Firms Core Business Processes : • • • Tech Mahindra Ltd. Tata Consultancy Services Ltd. IBM
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Road Ahead
INTRODUCTION
The Indian information technology industry has played a key role in putting India on the global map. Thanks to the success of the IT industry, India is now a power to reckon with. According to the National Association of Software and Service Companies (NASSCOM), the apex body for software services in India, the revenue of the information technology sector has risen from 1.2 per cent of the gross domestic product (GDP) in FY 1997-98 to an estimated 5.8 per cent in FY 2008-09. India's IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services. The government expects the exports turnover to touch US$ 80 billion by 2011, growing at an annual rate of 30 per cent per annum, from the earlier few million dollars worth exports in early 1990s.
INDUSTRY OVERVIEW
As per NASSCOM's latest findings: ? Indian IT-BPO sector grew by 12 per cent in FY 2009 to reach US$ 71.7 billion in aggregate revenue (including hardware). Of this, the software and services segment accounted for US$ 59.6 billion. ? IT-BPO exports (including hardware exports) grew by 16 per cent from US$ 40.9 billion in FY 2007-08 to US$ 47.3 billion in FY 2008-09. Moreover, according to a study by Springboard Research, the Indian IT services market is estimated to remain the fastest growing in the Asia-Pacific region with a CAGR of 18.6 per cent.
Despite the uncertainty in the global economy, the top three IT majors— Infosys, TCS and Wipro—have seen revenue growth from all important sources of income: from the North American and European regions, in the financial services vertical and from application maintenance and development (ADM) offerings between fiscal years 2008 and 2009. Outsourcing A research by Gartner forecasts India as the undisputed leader in the outsourcing space in the year 2008. India's most prized resource is its readily available technical work force. India has the second largest English-speaking scientific professionals in the world, second only to the US. It is estimated that India has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which train more than 67,785 computer software professionals every year. The enormous base of skilled manpower is a major draw for global customers. According to NASSCOM software and services exports (including exports of IT services, BPO, engineering services and R&D and software products) reached US$ 47 billion in FY 2008-09, contributing nearly 78 per cent to the total software and services revenue of US$ 59.6 billion. Domestic Markets India's domestic market has also become a force to reckon with, as the existing IT infrastructure evolves both in terms of technology and depth of penetration. According to NASSCOM, domestic IT market (including hardware) reached US$ 24.3 billion in FY 2008-09 as against US$ 23.1 billion in FY 2007-08, a growth of 5.3 per cent. India Inc's demand for IT services and products has bolstered growth in the domestic sector with deal sizes going up remarkably and contracts worth US$ 50 million-US$ 100 million up for grabs. Such growth in the software and services sector has been achieved because of spectacular growths in some segments. According to research firm Gartner, India's personal computer (PC) market is likely to grow by 13.7 per cent to 11.1 million units in 2009, aided by a surge in demand for laptops. The laptop market is expected to grow by 37 per cent in 2009 to 3.69 million units and constitute a third of the total PC market. Rural Penetration
According to a report of the Internet and Mobile Association of India (IAMAI) rural India has 3.3 million active internet users. Since rural India was mapped for the first time, the year-on-year growth of internet users in rural India could not be estimated. The research also notes there are 5.5 million people who claim to have used Internet at some point in time. Government Initiatives The government set up the National Taskforce on Information Technology and Software Development with the objective of framing a long term National IT Policy for the country. Also it is proposing enactment of the Information Technology Act, which provides a legal framework to facilitate electronic commerce and electronic transactions. The government-led National e-Governance Programme, has played an important role in increasing internet penetration in rural India.
MANAGING BUSINESS PROCESSES IN RECESSION BY IT FIRMS
If an economy has slowed down and market trends show a negative trend, you need not bother. You should have the ability to manage during this tough period. Most of the companies manage by being selective and focused as far as the choice of products is concerned. During this period, an entrepreneur always thinks of cost reduction by a proper allocation of resources and consolidation of businesses. The IT companies like TCS, Infosys, Wipro, Satyam and HCL, all have remained in the top class of service providers even during the period of recession. Without bringing down your product quality and reduction in the marked prices, you need to sell your products in the market. For this you need to devise suitable strategies so that your business is not affected by the recession. These are some of the basic steps to manage your business during economic upheaval: Monitor your cash flow: Try to convert all your inventories into cash so that you are saved from the bad sale period. Stock fewer products as compared to your previous stocks. At the same time control your expenses and increase your liquid funds.
Offer Discounts and Credits: You can consider offering your products on credit to the final supplier and to your customer too. By offering discounts on your products you can increase your chances of sale. Ask your supplier to give the raw materials/products on credit: You can always request your supplier to give products on credit for a time period till the recession phase is over. Keep in constant touch with your customers: If you have been maintaining a list of loyal customers, you should not forget them. Pacify them by all means. Also ask them to recommend your name to their close friends or relatives. Spend less on the publicity: During this period you can cut down your expenditure on miscellaneous activities like promotional events and marketing campaigns to publicise your product. You just cannot shun this activity as this is vital to boost up your sales process, so choose advertising options which offers you discounted package. Increase your portfolio of products: For example, you can expand your product line by introducing a new product. But, keep it at a high price and exclusively targeted towards premium customers. During the time of slowdown in economy, the nation is in deficit of revenues, so you can think of pushing your business across the boundaries like consider exporting the products on a global level. Often the companies take up offshore business in such a crisis. Always try to maintain a good relationship with employees as well as vendors and customers.
CORE BUSINESS PROCESSES OF “TECH MAHINDRA LTD.”
The Below Diagram encompasses the whole set of processes that Tech Mahindra considers core to its functioning. Thus it emphasizes TechM as being an IT solutions provider company with Telecom Sector as being its major client. On the whole it is evident that Tech Mahindra offers an end to end solution services to its clients which is the major revenue generator for it.
1. Tech Mahindra's Solution Integration services offer to:
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Leverage IT investments Minimize risks Maximize compatibility Maximize interoperability
Tech Mahindra provides total project management, right from architecture design, integration, system and interface development to migration backed by world-class methodologies, welldefined solution frameworks and extensive integration experience with tier-1 service providers. 2. Tech Mahindra’s services span the following application lifecycle stages:
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Application Development – Providing end-to-end development from requirement analysis to deployment and rollout. The application may be bespoke or COTS based product.
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Application Maintenance - Changing or enhancing software to meet changing or increasing business demands in the post-rollout phase of an application Application Support – Providing first, second, third line support and on-call support. Oncall support further includes Gold (24x7), Silver and Bronze support. Application Integration/Migration/Transformation - Replacing, migrating and integrating legacy or bespoke systems with COTS products Application Management -The application management layer cuts across all software engineering activities listed above. Tech Mahindra takes complete ownership of the outsourced suite of applications as per the agreed scope and manages the support. This typically involves transition management, project management, proactive risk and scope change management, quality management, SLA management etc.
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3. Tech Mahindra offers a full range of Consulting services to help analyze your business requirements for effective implementation of software solutions. Tech Mahindra’s consulting services cover:
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Strategy planning Assessment
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Procurement Re-engineering solutions Planning, audits, best practices etc.
Tech Mahindra's Consulting services emphasize the holistic approach in solving clients' business and IT problems, flexibility around the vendor/client relationship, pricing and packaging, the ability to assist in corporate transformation and agility, as well as commitment to creativity and innovation. 4. Businesses today face increased complexities due to changing needs and reduced budgets, and it is often found that traditional solutions to these challenges distract players from their core business strategies. IT is not only regarded as an essential means to drive efficiencies in an organization but also the first area to be scrutinized due to budgetary constraints. In the current economic environment, focusing on core competencies is the key to survival and success. With a core focus on Telecom, Tech Mahindra has the expertise and experience to manage an enabling infrastructure and applications and run outsourced operations for large telecom operators smoothly. Tech Mahindra’s Managed Services model is a non-invasive approach to outsourcing, providing skills and competencies, with support tailored to customer requirements and the flexibility to implement and manage key projects as part of ongoing operations. This provides customers the best of both worlds - control and flexibility over their information systems without either the pain or cost of running them. Tech Mahindra's Managed Services offerings cover the entire array of IT outsourcing services including networks, IT infrastructure, applications and business processes.
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Application Management Services
Tech Mahindra has the expertise to manage complete application platforms for clients across various technology domains - BSS / OSS / SDP / ERP etc. This includes day-to-day business operations of applications as well as managing the underlying IT infrastructure and networks from user Desktops to the Datacentre. Services include
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Application operations
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Database administration System and network administration Application support and maintenance as well as enhancement /
development through design, testing and implementation. Infrastructure Management Services Tech Mahindra understands how critical IT infrastructure is to the smooth functioning of business and they make it a job to ensure that it runs smoothly and efficiently. Revenue Management Services Revenue Management Services span key functions of Billing & Customer Care operations including system operations, remote billing operations, billing application hosting, production operations and MIS reporting. Mobile Virtual Network Enabler Services Managed Services offers aspiring Mobile Virtual Network Operators (MVNOs) a complete turnkey solution which includes Billing & CRM, Rating, Provisioning, Mediation, Revenue Assurance and Fraud Management. Tech Mahindra’s MVNE services provide cross functional operational support for applications, data centre operations, application development, integration support, MIS and helpdesk 5. Tech Mahindra has demonstrated ability to deliver Infrastructure Management Services to its clients more efficiently and cost effectively than their internal IT departments or other managed service providers has made it an integral part of its clients’ internal IT operations. Offerings Tech Mahindra provides full lifecycle Infrastructure Management Services to the clients across the globe. Tech Mahindra partners with other global firms to provide them the agility and efficiency they need in managing their critical infrastructure. Tech Mahindra offers high quality with low risk Managed Infrastructure services which includes: • • Data Centre Management Services Managed Network Services
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End User Services Application Support Services Functional Services Consulting Services
6. Tech Mahindra’s R&D Services division provides technology solutions to leading telecom equipment manufacturers worldwide. Tech Mahindra’s product engineering portfolio covers a wide spectrum of wireless, wired and convergence technology areas defining the migration from legacy to Next Generation networks. Service Offerings
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Product Life Cycle Management.
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New feature development Product design / coding / testing Extending product life cycle Field support and sustenance Product sustenance and ownership Life cycle testing Test automation Network integration Non-functional testing
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Testing
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NMS / EMS Software Development Hardware Board Development
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Embedded software development End-to-end testing Migration / transfer engineering Solution / system integration OSS / BSS integration Service creation and deployment
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Network Offerings
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Technology Transformations
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Addressing new markets Interoperability and compliance New technology adoption Modeling and post deployment support of IT infrastructure / services Customer support (Tier 1 to Tier 3)
Other Services
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7. As organizations look to streamline businesses by focusing their resources and technology spending on core competencies, our BPO and Business Process Management (BPM) expertise can help them achieve their corporate objectives and attain exponential benefits. With over 3800 associates delivering operations and process management services, TechM BPO provides end-to-end service delivery by undertaking complete process ownership, thereby making TechM the right partner for outsourcing business processes in any domain. TechM’s service capability has touch points across the entire customer relationship life cycle right from Customer Acquisition through In-life management to Customer Retention services. TechM also has an extensive portfolio of offerings in F&A, Data Analytics, Human Resources and Enterprise Management.
CORE BUSINESS PROCESSES OF
“TATA CONSULTANCY SERVICES”
INTRODUCTION The organization named Tata Consultancy Services (TCS) is based in India, but easily ranks as one of the leading information technology services company in the world. TCS has a workforce of slightly over 74,000 professionals, and its operations are spread across over 50 global delivery centers. The main task of the latter is to help organizations stay ahead and help them with new technology. The major clients of TCS include seven among the top ten organizations as per the Fortune 500 list of largest companies in the United States. The numerous products and services of TCS do help other organizations operating in various fields to cope up with their specific business challenges. Apart from offering technical expertise and working on the basis of a customized and flexible approach to client relationships, the company offers clients help in the fields of business process outsourcing, consulting, infrastructure outsourcing, IT services, engineering and industrial services. From the beginning, TCS has invested in newer technological knowhow, processes as well as human assets, which in turn, helps its customers to succeed. Having made use of inputs from university alliances as well as its innovation labs, the company TCS helps in keeping clients updated with newer technology. The company has already attained various benchmarks in the field of software development. For instance, it was the company in the world to have achieved an enterprise-wide Maturity Level 5 based on certain quality improvement models. These were CMMI? and P-CMM?, and made use of the most rigorous assessment methodology, which was SCAMPISM. GLOBAL NETWORK DELIVERY MODEL™
TCS' Global Network Delivery Model™ is the engine that allows TCS to provide reliable, scalable and cost effective delivery of services and solutions. This time-tested model has enabled them to achieve client satisfaction ratings of 89% for meeting quality expectations and an average budget variation on projects of just 3% -- both figures far better than industry norms. TCS' Global Network Delivery Model™ enables TCS’s clients to:
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Choose a sourcing strategy best suited to their most important business considerations, e.g., cost optimization, cultural alignment, location proximity, language capabilities or risk-mitigation.
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Be assured of the highest quality of service delivery regardless of the mix of services, technologies, and locations. Lower the Total Cost of Ownership (TCO) of Information Technology by managing different service streams -- such as Consulting, IT Services, IT Infrastructure Services, etc. -- through a unified delivery framework.
All of TCS' processes and infrastructure have been developed from the ground up -- as opposed to being cobbled together over time. The Global Network Delivery Model™ consists of 3 integrated components: • Global Workforce
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Highly effective and scalable talent management - recruiting, staffing, training and retention
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Integrated Processes o CMMI Level 5 quality processes o World-class security procedures o Project Management processes and tools (iQMS, etc.)
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Multi-Tiered Infrastructure o Multi-continent and interconnected global development center network (local, regional, global model) to allow for better risk management and follow-the-sun coverage o State of the art and redundant telecommunications network o Global collaboration tools
SOLUTION ACCELERATORS TCS uses its industry experience and technology expertise to effectively develop products, tools, and methodologies that help bring solutions to market quicker and with higher quality. These tools, along with our Global Network Delivery Model™, have helped them drive customer satisfaction ratings of 87% –- much higher than the industry norm -- for on-time project delivery. Over the years, TCS has evolved processes and systems that capture critical client needs, survey the set of existing third party tools and technologies, and then develop solution accelerators that help clients achieve quicker outcomes. • TCS has over 50 Centers of Excellence that track domain and technology trends, and address the most critical client needs through specific frameworks or methodologies that accelerate the implementation process for 3rd party products.
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TCS is a preferred alliance partner of most leading IT product and platform companies, including Oracle, SAP, Microsoft, IBM and HP, among others. With intimate knowledge of their technologies and products, they build complementary solution accelerators that help clients in specific industries such as Textile Manufacturing, or with specific needs (e.g., an ERP platform upgrade) leverage the true potential of these technologies.
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All TCS projects are delivered through a unified delivery framework, which includes a knowledge management system with learning from past projects, and that also provides incentive to create knowledge assets from new projects that can benefit clients in the future.
Here are some examples of how TCS' Solution Accelerators help clients realize tangible benefits: • TCS BaNCS is comprehensive portfolio of solutions for the Financial Services industry that provide enterprises with greater operational control, reliable technology support, continuous process improvements, and enhanced speed-to-market. • TCS SOLAR Framework is a service oriented framework to strategize and deliver Business Intelligence & Performance Management solutions for clients. (Gartner Inc positioned TCS in the Leaders Quadrant for the "Magic Quadrant for Business Intelligence Services, North America, 2007" report.) • TCS Code Generator Framework (TCS MasterCraft) provides an integrated environment along a product or application development life-cycle. By significant re-use of code, it
speeds up new application development, legacy system integration, and/or making enhancements.
INNOVATION The TCS Innovations Advantage A pioneer in software R&D, TCS today has an innovation ecosystem that offers research-based solutions in leading-edge technologies to meet clients’ expectations from IT and to support their Business objectives.
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Innovation Strategy: Research Segmentation, Customers Expectations & Alignment (Research Themes). Innovation Ecosystem: TCS Innovation Labs, TCS Co-Innovation Network (COIN)™, Incubation Group. Innovation Events: “Innovation Days” help key customers and TCS researchers to collaborate on research towards specific solutions. “Innovations Forums” held annually in UK and the USA serve as confluences of thought leaders, researchers from academia, start-ups and customers, bringing value through shared experiences and offering a preview of technologies and solutions of the coming decade.
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Innovation Culture: Awards for young innovators, coding competitions, research workshops and conferences where scientists of international participate create a fertile environment for TCSers, enabling them to think creatively around customer solutions.
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Intellectual Property: TCS has created a strong IPR base and has stepped up investments in building assets such as patents, copyrights and trademarks.
Research Segmentation
Aligned to their clients’ varied requirements TCS has a portfolio approach to innovation. It segments research into three categories:
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Sustaining or Derivative Innovation: Innovations that offer improvements on current offerings in current markets
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Platform Innovations: Innovations that help customers move to adjacent technologies and create additional capabilities Disruptive Innovations: Innovations that are game changers and bring radical changes to current markets and capabilities.
TCS invests in research in adjacent and futuristic technologies and has a metrics driven approach to innovation. Using an Open and Collaborative framework it connects customers to the best of breed entities in the technology landscape and enables them to gain competitive advantage.
Outcome based Research Themes
TCS Innovations focus on typical jobs/outcomes customers expect. Samples of TCS R&D offerings that address customers’ expectations from IT:
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To Increase Operational Efficiency and Productivity: software tools, performance tools etc. To Promote Business Agility: SaaS platforms, Agile enterprise architecture, Decision Support Systems etc To Simplify and Transform: Virtualization, Cloud computing, Managed Evolution of Infrastructure etc To Manage Enterprise Risk and Compliance: Smart Cards, Copyright protection offerings etc To Enable Understanding of Markets and Customers: Knowledge Discovery and Advertising platform Solutions
To support customers’ business objectives social concerns TCS:
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Enrich User Experience with Surface Computing, Unified Communications and Multimedia Gateway solutions Optimize Enterprise Knowledge with Content Management Systems Offerings Foster Information Ubiquity with Knowledge Portals and Mobile Based Advisory systems Enhance Healthcare with Life Sciences, Embedded Systems and NLP offerings Conserve the Environment with Green IT solutions and consulting.
THE TCS CO-INNOVATION NETWORK (COIN)™ TCS’ Co-Innovation Network (COIN™) is a rich and diverse network that brings value to customers from the entire technology landscape. As opposed to the rigid engagement models of the past, COIN™ uses IP management and partnering strategies to drive innovation in an environment of open communities and solution brokers. Solutions also involve technologies wrapped in process bundles, and new software investments based on subscription rather than ownership. Coin™ Alliances COIN™ is led by TCS Innovation Labs and includes academic institutions, start-ups, venture funds, strategic alliance partners, multi-lateral organizations, and key clients. This helps COIN™ to bring forth true synergies and give an ecosystem perspective to innovation. Academia TCS connects to academic institutions in different ways:
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It funds research. Much of this research is in basic and applied sciences that will benefit TCS and its customers in the long term. It provides opportunities for sabbaticals, encouraging TCSers to work in university departments that are engaged in advanced research in various fields It invites researchers from academia to work as interns or on specific projects in TCS Innovation Labs. It sponsors/hosts various events (conferences / workshops / visits) and promotes publications.
Start-ups A market leader strategizes differently from a start-up. However, in today’s competitive environment, it is important for an established company to know the ideas at work in start-ups – the niche products they make, the new markets they create and their potential for breakthrough or ‘disruptive’ innovation – and support the promising ones. A large number of start have been put
through COIN™’s stringent de-risking process to work on innovative solutions with TCS and its customers. Their startup engagements have been geographically well distributed, with partners in the United States, Europe and Asia. Focus is on new and exciting technology areas such as Data Center Optimization Solutions, On Demand Distributed Software Development Solutions, and Compliance Cost Reduction Solutions. Some of our start-up alliances are: • • • Cassatt Collabnet MetricStream
Venture Capital Funds As financiers of the next generation of technologies, Venture Capitalists provide a key connect to innovation. TCS works with VCs across the globe and with their respective portfolio companies to deliver next gen solutions to its customers. They have established alliances with several startups working with VCs. Some of the VC firms that TCS actively works with are: • • • • Kleiner Perkins, Sequoia Capital (both in the United States) Index, Amadeus(United Kingdom) Gemini Israel, Pitango Israel (Israel) Helion Ventures, Nexus (India)
Strategic Alliances TCS has forged strong partnerships with many of the world's foremost technology and services providers like Intel, SAP, HP, Cisco, Sun and EMC to deliver wide ranging customer solutions. These are not marketing alliances, but true co-innovation partnerships through which they pool expertise and create solutions for the future. One of the disruptive areas being explored collaboratively with Intel is balanced computing that enhances manageability, security, end-user experience and TCO for customers. TCS A NEW SAP GLOBAL SERVICES PARTNER
TCS joins a select group of the market's largest consultancies to join the "SAP Global Partner Services" program. As a new global services partner, TCS will invest in joint marketing resources and strategic planning with SAP going forward. TCS' services practice for SAP applications currently employs more than 2,200 people worldwide with significant investments in building composite applications that are powered by the SAP NetWeaver platform. The company is strengthening its field teams serving SAP customers globally and also is building competencies through investment in 20,000 training days over the next two years. "Strong partnerships and engagement models are key to helping our customers adopt enterprise SOA," said Léo Apotheker, president and member of the executive board, SAP. "SAP works closely with its services partners to jointly develop solutions that address changing business needs. TCS is a leading systems integrator and application services partner for enterprises globally. Its domain, technology and global implementation capabilities, which leverages its Network Delivery Model, opens new opportunities to address customer needs and the organization's proven track record is something we look forward to leveraging across the globe." Support for SAP in Strategic Industries and Markets Drawing upon its familiarity in implementing SAP applications, TCS is actively working with SAP to develop a variety of services that address specific customer pain points across many different industries and markets. As a SAP global services partner, TCS collaborates with SAP and many of its independent software vendor (ISV) partners to develop and market specific solutions and services for the hospitality industry globally. TCS will also serve as a source of international deployment of SAP Business One to subsidiaries of corporate enterprises and apply its expertise in manufacturing to implement adaptive manufacturing solutions for customers worldwide. In addition, TCS has signed up for the "BPO Services Powered by SAP" program and is building a platform to provide human capital management (HCM) business process outsourcing (BPO) services that are based on mySAP(tm) ERP. This global partnership will also help drive customer upgrades to mySAP ERP in target verticals, using TCS' innovation labs to build and showcase solution accelerators and composites.
CORE BUSINESS PROCESSES OF “IBM”
INTRODUCTION International Business Machines Corporation, abbreviated IBM and nicknamed "Big Blue" (for its official corporate color), is a multinational computer technology and IT consulting corporation headquartered in Armonk, New York, United States. The company is one of the few information technology companies with a continuous history dating back to the 19th century. IBM manufactures and sells computer hardware and software, and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. The company which became IBM was founded in 1896 as the Tabulating Machine Company by Herman Hollerith, in Broome County, New York, where it still maintains very limited operations. It was incorporated as Computing Tabulating Recording Corporation on June 16, 1911, and was listed on the New York Stock Exchange in 1916 by George Winthrop Fairchild. CTR's Canadian and later South American subsidiary was named International Business Machines in 1917, and the whole company took this name in 1924 when Thomas J. Watson took control of it. IBM has been well known through most of its recent history as the world's largest computer company and systems integrator. With over 388,000 employees worldwide, IBM is the largest and most profitable information technology employer in the world. IBM holds more patents than any other U.S. based technology company and has eight research laboratories worldwide. The company has scientists, engineers, consultants, and sales professionals in over 170 countries. IBM employees have earned five Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science. As a chip maker, IBM has been among the Worldwide Top 20 Semiconductor Sales Leaders in past years.
BUSINESS MODEL
Innovation
To start with, when we looked more deeply into the topic of business models and business model innovation, we found that, like art, business leaders may know it when they see it, but they have difficulty actually defining it. Searching the literature on the topic proved similarly fruitless – again with no clear, consistent or generally accepted definition of business models or business model innovation. Many different views exist, each emphasizing different dimensions. The three types of business model innovation strategies are:
Industry Model
This approach involves innovating the “industry value chain.” This can be accomplished via horizontal moves into new industries as Virgin has done with its moves from its beginnings in music and retail to such diverse industries as airlines, railways, beverages, financial services, etc., thus leveraging its superior skills in consumer management. It can also be accomplished by redefining existing industries, as Dell has done by eliminating intermediaries and going directly to customers and, as Apple has done by delivering music directly to customers via iTunes. Perhaps most dramatically, industry model innovation can also involve the development of entirely new industries or industry segments, as Google and other search engine companies have done in the past decade with the advent of the Internet. This dimension leverages white spaces in the competitive environment as well as unique assets.
Revenue Model
This approach involves innovations in how companies generate revenues by reconfiguring offerings (product/service/value mix) and/or by introducing new pricing models. This is a dimension that leverages customer experience, choices and preferences and that can also leverage new technologies. A good example of an offering innovation is Cirque du Soleil’s redefinition of the circus experience, recombining new and old elements to change the value proposition and reach a new target audience. A classic example of a pricing innovation is Gillette’s strategy of under pricing razors to sell razor blades. Another more recent example is Netflix’s introduction of a new kind of movie rental option, offering consumers monthly subscriptions rather than the once prevailing product-based rental structure. New pricing models
also can be seen in digitized modern markets with such offerings as music subscriptions and clips of music for ring tones.
Enterprise Model
This approach involves innovating the structure of the enterprise and the role it plays in new or existing value chains. This dimension focuses on redefining organizational boundaries. Innovations here can be achieved through integration as in the Japanese kieretsu framework, where what might typically be a supply chain is owned and managed by one firm or conglomerate. Clothing retailer Zara, for example, manages design through delivery, creating feedback loops from customer data at stores back to designers through manufacturing. Enterprise model innovation can also be accomplished via specialization, wherein organizations focus on core competencies or high-margin activities and outsource the rest. The Indian telecommunications company Bharti Airtel, for example, focuses on marketing, sales and distribution, outsourcing much of the actual IT and networking functions to external partners. Finally, enterprise model innovation can be accomplished via network plays, wherein companies rely on external collaboration.
IBM BPM Suite
BM BPM Suite contains a comprehensive set of collaborative, role-based capabilities that enable customers to model, simulate, execute, rapidly change, monitor and optimize core business processes. The IBM BPM Suite brings together capabilities from across IBM and includes a choice of two Foundational Offerings, the IBM WebSphere Dynamic Process Edition and the IBM FileNet Active Content Edition, that make it easier for customers to get started with BPM. Each Foundational Offering is designed to continuously optimize business processes and adapt them to rapidly changing needs. Foundational Offerings can be deployed individually or together to address a wide range of customer scenarios involving systems, applications, content, people and decisions. Optional Extended Value Offerings expand the value of the IBM BPM Suite and include advanced analytics, BPM repositories, accelerators, adaptors and collaborative tools.
The IBM BPM Suite is designed to support your business process needs both today and in the future. Regardless of whether your organization needs flexible and dynamic processes integrated across multiple disparate systems or content-centric processes with demanding compliance
requirements, IBM BPM Suite can realize your business priorities and evolve with you as your BPM journey continues.
IBM SOA life cycle
The following list describes the tasks involved in the different phases of the SOA life cycle. In this case, these phases are applied in the CBS development:
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Model: Gather and analyze business requirements. Design, simulate, and optimize the business processes. Assemble: Assemble new and existing services to form the business processes and optimize them. Deploy: Deploy the business processes. Manage: Manage and monitor these business processes from both an IT and business perspective. Governance: Feed information gathered during the manage phase back into the life cycle to enable continuous process improvement.
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Claim status CBS: asset development
Model Phase
1. Identify the various competencies of a business, and capture the hot components from the heat map using the Component Business Modeling (CBM) methodology. 2. Identify the business processes for the hot components in the heat map. 3. Define the process flow for the identified processes using IBM WebSphere Business Modeler. 4. Explore the capability map and process map assets provided by the Healthcare Payor Content Pack. 5. Identify all the business services to implement the business process by following the Service Oriented Modeling and Architecture (SOMA) methodology. Assemble And Deploy Phases 1. Explore the Business Service Template (BST) identified in the modeling phase and extend it to realize the claim status CBS. 2. Implement the service interfaces in the BST. 3. Create a WebSphere Business Services Fabric project and import the relevant namespaces. 4. Deploy the claim status CBS. 5. Test the business process using the test component of IBM WebSphere Integration Developer. 6. Use the WebSphere Business Services Fabric dynamic assembly component to route dynamically. 7. Use content-based assertion for routing claim requests. Manage And Governance Phases 1. Create subscriptions in WebSphere Business Services Fabric to control the access to different business services and provide necessary enrollments and role assignments. 2. Demonstrate governance capabilities for the sample CBS developed.
CBM Methodology
IBM's CBM methodology provides a framework for viewing the business as a network of individual components. The decomposition of an enterprise into well-bounded and discrete
business components enables a straightforward understanding of a complex enterprise and facilitates the realization of business intent by information technology. Knowing the business value associated with each component makes it easier to set transformational priorities. The CBM map for SABU Health Corporation is created by identifying all the business competencies for the organization and mapping the business activities into discrete, manageable components, which are grouped under the suitable business competencies and accountability levels (direct, control, and execute). Evaluation criteria, such as cost, revenue potential, and alignment with business, are applied to all the components, and the areas of competitive differentiation and priority (hot components) are identified. Claims management and claims processing have been categorized as the hot components for SABU Health Corporation.
Define the business process using IBM WebSphere Business Monitor The next step is to identify the business process flow for Claim, Status And Visibility that meets the above requirements. The business process should validate the electronic data interchange (EDI) requests and send the status of the claim back to the provider. Figure 3 illustrates the process flow.
Explore the capability and process maps Alignment of IT goals to business goals enables your business to meet its objectives in an efficient and cost-effective way. The Healthcare Payor capability and process maps asset of the IBM Healthcare Payor Content Pack allows for the following:
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Mapping a process to a capability Mapping Healthcare Payor processes to business services. Provides proper alignment of business and IT strategies. Provides traceability for the business objectives identified in the modeling phase. Gives business executives a clearer understanding of what IT does. Aligns the business services being developed to the business objectives. Ensures adherence to industry standards.
This mapping:
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Healthcare Payor capability maps provide the foundational layer of the required business capabilities that the healthcare industry performs across the healthcare industry value chain. Healthcare process maps serve as the taxonomy for business processes for the healthcare industry to help align business services. There are typically capability maps and process maps specific to an industry, and they're based on industry standards and best practices. The models for capability and process maps are represented using the Unified Modeling Language (UML) notation inside a modeling tool, such as IBM Rational Software Architect. In the capability map, the capabilities that meet the requirements of the solution to be implemented are identified and mapped to the suitable business process in the process map. Later, the business services required to implement the process are identified and mapped accordingly.
SOMA Methodology
The next step in the modeling phase of CBS is to create a service model that realizes the business process. SOMA methodology is followed to create a service model. SOMA is an end-to-end method for SOA solution implementation. It's an analysis and design method for the design and construction of SOA to enable target business processes. The following activities of SOMA are carried out:
• • •
SOMA identification SOMA specification SOMA realization
ROAD AHEAD
The Indian information technology sector continues to be one of the sunshine sectors of the Indian economy showing rapid growth and promise. According to a report prepared by McKinsey for NASSCOM, the exports component of the Indian industry is expected to reach US$ 175 billion in revenue by 2020. The domestic component will contribute US$ 50 billion in revenue by 2020. Together, the export and domestic markets are likely to bring in US$ 225 billion in revenue, as new opportunities emerge in areas such as public sector and healthcare, and as geographies including BRIC and Japan opt for greater outsourcing.
BIBLIOGRAPHY
• • • • www.tcs.com www.techmahindra.com www.ibm.com www.ibfe.org
doc_873105181.doc
This is document describing the core business process in IT firms.
INDEX
• • • •
Introduction Industry Overview Managing Business Processes in Recession by IT Firms Core Business Processes : • • • Tech Mahindra Ltd. Tata Consultancy Services Ltd. IBM
•
Road Ahead
INTRODUCTION
The Indian information technology industry has played a key role in putting India on the global map. Thanks to the success of the IT industry, India is now a power to reckon with. According to the National Association of Software and Service Companies (NASSCOM), the apex body for software services in India, the revenue of the information technology sector has risen from 1.2 per cent of the gross domestic product (GDP) in FY 1997-98 to an estimated 5.8 per cent in FY 2008-09. India's IT growth in the world is primarily dominated by IT software and services such as Custom Application Development and Maintenance (CADM), System Integration, IT Consulting, Application Management, Infrastructure Management Services, Software testing, Service-oriented architecture and Web services. The government expects the exports turnover to touch US$ 80 billion by 2011, growing at an annual rate of 30 per cent per annum, from the earlier few million dollars worth exports in early 1990s.
INDUSTRY OVERVIEW
As per NASSCOM's latest findings: ? Indian IT-BPO sector grew by 12 per cent in FY 2009 to reach US$ 71.7 billion in aggregate revenue (including hardware). Of this, the software and services segment accounted for US$ 59.6 billion. ? IT-BPO exports (including hardware exports) grew by 16 per cent from US$ 40.9 billion in FY 2007-08 to US$ 47.3 billion in FY 2008-09. Moreover, according to a study by Springboard Research, the Indian IT services market is estimated to remain the fastest growing in the Asia-Pacific region with a CAGR of 18.6 per cent.
Despite the uncertainty in the global economy, the top three IT majors— Infosys, TCS and Wipro—have seen revenue growth from all important sources of income: from the North American and European regions, in the financial services vertical and from application maintenance and development (ADM) offerings between fiscal years 2008 and 2009. Outsourcing A research by Gartner forecasts India as the undisputed leader in the outsourcing space in the year 2008. India's most prized resource is its readily available technical work force. India has the second largest English-speaking scientific professionals in the world, second only to the US. It is estimated that India has over 4 million technical workers, over 1,832 educational institutions and polytechnics, which train more than 67,785 computer software professionals every year. The enormous base of skilled manpower is a major draw for global customers. According to NASSCOM software and services exports (including exports of IT services, BPO, engineering services and R&D and software products) reached US$ 47 billion in FY 2008-09, contributing nearly 78 per cent to the total software and services revenue of US$ 59.6 billion. Domestic Markets India's domestic market has also become a force to reckon with, as the existing IT infrastructure evolves both in terms of technology and depth of penetration. According to NASSCOM, domestic IT market (including hardware) reached US$ 24.3 billion in FY 2008-09 as against US$ 23.1 billion in FY 2007-08, a growth of 5.3 per cent. India Inc's demand for IT services and products has bolstered growth in the domestic sector with deal sizes going up remarkably and contracts worth US$ 50 million-US$ 100 million up for grabs. Such growth in the software and services sector has been achieved because of spectacular growths in some segments. According to research firm Gartner, India's personal computer (PC) market is likely to grow by 13.7 per cent to 11.1 million units in 2009, aided by a surge in demand for laptops. The laptop market is expected to grow by 37 per cent in 2009 to 3.69 million units and constitute a third of the total PC market. Rural Penetration
According to a report of the Internet and Mobile Association of India (IAMAI) rural India has 3.3 million active internet users. Since rural India was mapped for the first time, the year-on-year growth of internet users in rural India could not be estimated. The research also notes there are 5.5 million people who claim to have used Internet at some point in time. Government Initiatives The government set up the National Taskforce on Information Technology and Software Development with the objective of framing a long term National IT Policy for the country. Also it is proposing enactment of the Information Technology Act, which provides a legal framework to facilitate electronic commerce and electronic transactions. The government-led National e-Governance Programme, has played an important role in increasing internet penetration in rural India.
MANAGING BUSINESS PROCESSES IN RECESSION BY IT FIRMS
If an economy has slowed down and market trends show a negative trend, you need not bother. You should have the ability to manage during this tough period. Most of the companies manage by being selective and focused as far as the choice of products is concerned. During this period, an entrepreneur always thinks of cost reduction by a proper allocation of resources and consolidation of businesses. The IT companies like TCS, Infosys, Wipro, Satyam and HCL, all have remained in the top class of service providers even during the period of recession. Without bringing down your product quality and reduction in the marked prices, you need to sell your products in the market. For this you need to devise suitable strategies so that your business is not affected by the recession. These are some of the basic steps to manage your business during economic upheaval: Monitor your cash flow: Try to convert all your inventories into cash so that you are saved from the bad sale period. Stock fewer products as compared to your previous stocks. At the same time control your expenses and increase your liquid funds.
Offer Discounts and Credits: You can consider offering your products on credit to the final supplier and to your customer too. By offering discounts on your products you can increase your chances of sale. Ask your supplier to give the raw materials/products on credit: You can always request your supplier to give products on credit for a time period till the recession phase is over. Keep in constant touch with your customers: If you have been maintaining a list of loyal customers, you should not forget them. Pacify them by all means. Also ask them to recommend your name to their close friends or relatives. Spend less on the publicity: During this period you can cut down your expenditure on miscellaneous activities like promotional events and marketing campaigns to publicise your product. You just cannot shun this activity as this is vital to boost up your sales process, so choose advertising options which offers you discounted package. Increase your portfolio of products: For example, you can expand your product line by introducing a new product. But, keep it at a high price and exclusively targeted towards premium customers. During the time of slowdown in economy, the nation is in deficit of revenues, so you can think of pushing your business across the boundaries like consider exporting the products on a global level. Often the companies take up offshore business in such a crisis. Always try to maintain a good relationship with employees as well as vendors and customers.
CORE BUSINESS PROCESSES OF “TECH MAHINDRA LTD.”
The Below Diagram encompasses the whole set of processes that Tech Mahindra considers core to its functioning. Thus it emphasizes TechM as being an IT solutions provider company with Telecom Sector as being its major client. On the whole it is evident that Tech Mahindra offers an end to end solution services to its clients which is the major revenue generator for it.
1. Tech Mahindra's Solution Integration services offer to:
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Leverage IT investments Minimize risks Maximize compatibility Maximize interoperability
Tech Mahindra provides total project management, right from architecture design, integration, system and interface development to migration backed by world-class methodologies, welldefined solution frameworks and extensive integration experience with tier-1 service providers. 2. Tech Mahindra’s services span the following application lifecycle stages:
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Application Development – Providing end-to-end development from requirement analysis to deployment and rollout. The application may be bespoke or COTS based product.
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Application Maintenance - Changing or enhancing software to meet changing or increasing business demands in the post-rollout phase of an application Application Support – Providing first, second, third line support and on-call support. Oncall support further includes Gold (24x7), Silver and Bronze support. Application Integration/Migration/Transformation - Replacing, migrating and integrating legacy or bespoke systems with COTS products Application Management -The application management layer cuts across all software engineering activities listed above. Tech Mahindra takes complete ownership of the outsourced suite of applications as per the agreed scope and manages the support. This typically involves transition management, project management, proactive risk and scope change management, quality management, SLA management etc.
•
•
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3. Tech Mahindra offers a full range of Consulting services to help analyze your business requirements for effective implementation of software solutions. Tech Mahindra’s consulting services cover:
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Strategy planning Assessment
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Procurement Re-engineering solutions Planning, audits, best practices etc.
Tech Mahindra's Consulting services emphasize the holistic approach in solving clients' business and IT problems, flexibility around the vendor/client relationship, pricing and packaging, the ability to assist in corporate transformation and agility, as well as commitment to creativity and innovation. 4. Businesses today face increased complexities due to changing needs and reduced budgets, and it is often found that traditional solutions to these challenges distract players from their core business strategies. IT is not only regarded as an essential means to drive efficiencies in an organization but also the first area to be scrutinized due to budgetary constraints. In the current economic environment, focusing on core competencies is the key to survival and success. With a core focus on Telecom, Tech Mahindra has the expertise and experience to manage an enabling infrastructure and applications and run outsourced operations for large telecom operators smoothly. Tech Mahindra’s Managed Services model is a non-invasive approach to outsourcing, providing skills and competencies, with support tailored to customer requirements and the flexibility to implement and manage key projects as part of ongoing operations. This provides customers the best of both worlds - control and flexibility over their information systems without either the pain or cost of running them. Tech Mahindra's Managed Services offerings cover the entire array of IT outsourcing services including networks, IT infrastructure, applications and business processes.
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Application Management Services
Tech Mahindra has the expertise to manage complete application platforms for clients across various technology domains - BSS / OSS / SDP / ERP etc. This includes day-to-day business operations of applications as well as managing the underlying IT infrastructure and networks from user Desktops to the Datacentre. Services include
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Application operations
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Database administration System and network administration Application support and maintenance as well as enhancement /
development through design, testing and implementation. Infrastructure Management Services Tech Mahindra understands how critical IT infrastructure is to the smooth functioning of business and they make it a job to ensure that it runs smoothly and efficiently. Revenue Management Services Revenue Management Services span key functions of Billing & Customer Care operations including system operations, remote billing operations, billing application hosting, production operations and MIS reporting. Mobile Virtual Network Enabler Services Managed Services offers aspiring Mobile Virtual Network Operators (MVNOs) a complete turnkey solution which includes Billing & CRM, Rating, Provisioning, Mediation, Revenue Assurance and Fraud Management. Tech Mahindra’s MVNE services provide cross functional operational support for applications, data centre operations, application development, integration support, MIS and helpdesk 5. Tech Mahindra has demonstrated ability to deliver Infrastructure Management Services to its clients more efficiently and cost effectively than their internal IT departments or other managed service providers has made it an integral part of its clients’ internal IT operations. Offerings Tech Mahindra provides full lifecycle Infrastructure Management Services to the clients across the globe. Tech Mahindra partners with other global firms to provide them the agility and efficiency they need in managing their critical infrastructure. Tech Mahindra offers high quality with low risk Managed Infrastructure services which includes: • • Data Centre Management Services Managed Network Services
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End User Services Application Support Services Functional Services Consulting Services
6. Tech Mahindra’s R&D Services division provides technology solutions to leading telecom equipment manufacturers worldwide. Tech Mahindra’s product engineering portfolio covers a wide spectrum of wireless, wired and convergence technology areas defining the migration from legacy to Next Generation networks. Service Offerings
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Product Life Cycle Management.
o o o o o
New feature development Product design / coding / testing Extending product life cycle Field support and sustenance Product sustenance and ownership Life cycle testing Test automation Network integration Non-functional testing
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Testing
o o o o
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NMS / EMS Software Development Hardware Board Development
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Embedded software development End-to-end testing Migration / transfer engineering Solution / system integration OSS / BSS integration Service creation and deployment
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Network Offerings
o o o o o
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Technology Transformations
o o o •
Addressing new markets Interoperability and compliance New technology adoption Modeling and post deployment support of IT infrastructure / services Customer support (Tier 1 to Tier 3)
Other Services
o o
7. As organizations look to streamline businesses by focusing their resources and technology spending on core competencies, our BPO and Business Process Management (BPM) expertise can help them achieve their corporate objectives and attain exponential benefits. With over 3800 associates delivering operations and process management services, TechM BPO provides end-to-end service delivery by undertaking complete process ownership, thereby making TechM the right partner for outsourcing business processes in any domain. TechM’s service capability has touch points across the entire customer relationship life cycle right from Customer Acquisition through In-life management to Customer Retention services. TechM also has an extensive portfolio of offerings in F&A, Data Analytics, Human Resources and Enterprise Management.
CORE BUSINESS PROCESSES OF
“TATA CONSULTANCY SERVICES”
INTRODUCTION The organization named Tata Consultancy Services (TCS) is based in India, but easily ranks as one of the leading information technology services company in the world. TCS has a workforce of slightly over 74,000 professionals, and its operations are spread across over 50 global delivery centers. The main task of the latter is to help organizations stay ahead and help them with new technology. The major clients of TCS include seven among the top ten organizations as per the Fortune 500 list of largest companies in the United States. The numerous products and services of TCS do help other organizations operating in various fields to cope up with their specific business challenges. Apart from offering technical expertise and working on the basis of a customized and flexible approach to client relationships, the company offers clients help in the fields of business process outsourcing, consulting, infrastructure outsourcing, IT services, engineering and industrial services. From the beginning, TCS has invested in newer technological knowhow, processes as well as human assets, which in turn, helps its customers to succeed. Having made use of inputs from university alliances as well as its innovation labs, the company TCS helps in keeping clients updated with newer technology. The company has already attained various benchmarks in the field of software development. For instance, it was the company in the world to have achieved an enterprise-wide Maturity Level 5 based on certain quality improvement models. These were CMMI? and P-CMM?, and made use of the most rigorous assessment methodology, which was SCAMPISM. GLOBAL NETWORK DELIVERY MODEL™
TCS' Global Network Delivery Model™ is the engine that allows TCS to provide reliable, scalable and cost effective delivery of services and solutions. This time-tested model has enabled them to achieve client satisfaction ratings of 89% for meeting quality expectations and an average budget variation on projects of just 3% -- both figures far better than industry norms. TCS' Global Network Delivery Model™ enables TCS’s clients to:
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Choose a sourcing strategy best suited to their most important business considerations, e.g., cost optimization, cultural alignment, location proximity, language capabilities or risk-mitigation.
• •
Be assured of the highest quality of service delivery regardless of the mix of services, technologies, and locations. Lower the Total Cost of Ownership (TCO) of Information Technology by managing different service streams -- such as Consulting, IT Services, IT Infrastructure Services, etc. -- through a unified delivery framework.
All of TCS' processes and infrastructure have been developed from the ground up -- as opposed to being cobbled together over time. The Global Network Delivery Model™ consists of 3 integrated components: • Global Workforce
o
Highly effective and scalable talent management - recruiting, staffing, training and retention
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Integrated Processes o CMMI Level 5 quality processes o World-class security procedures o Project Management processes and tools (iQMS, etc.)
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Multi-Tiered Infrastructure o Multi-continent and interconnected global development center network (local, regional, global model) to allow for better risk management and follow-the-sun coverage o State of the art and redundant telecommunications network o Global collaboration tools
SOLUTION ACCELERATORS TCS uses its industry experience and technology expertise to effectively develop products, tools, and methodologies that help bring solutions to market quicker and with higher quality. These tools, along with our Global Network Delivery Model™, have helped them drive customer satisfaction ratings of 87% –- much higher than the industry norm -- for on-time project delivery. Over the years, TCS has evolved processes and systems that capture critical client needs, survey the set of existing third party tools and technologies, and then develop solution accelerators that help clients achieve quicker outcomes. • TCS has over 50 Centers of Excellence that track domain and technology trends, and address the most critical client needs through specific frameworks or methodologies that accelerate the implementation process for 3rd party products.
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TCS is a preferred alliance partner of most leading IT product and platform companies, including Oracle, SAP, Microsoft, IBM and HP, among others. With intimate knowledge of their technologies and products, they build complementary solution accelerators that help clients in specific industries such as Textile Manufacturing, or with specific needs (e.g., an ERP platform upgrade) leverage the true potential of these technologies.
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All TCS projects are delivered through a unified delivery framework, which includes a knowledge management system with learning from past projects, and that also provides incentive to create knowledge assets from new projects that can benefit clients in the future.
Here are some examples of how TCS' Solution Accelerators help clients realize tangible benefits: • TCS BaNCS is comprehensive portfolio of solutions for the Financial Services industry that provide enterprises with greater operational control, reliable technology support, continuous process improvements, and enhanced speed-to-market. • TCS SOLAR Framework is a service oriented framework to strategize and deliver Business Intelligence & Performance Management solutions for clients. (Gartner Inc positioned TCS in the Leaders Quadrant for the "Magic Quadrant for Business Intelligence Services, North America, 2007" report.) • TCS Code Generator Framework (TCS MasterCraft) provides an integrated environment along a product or application development life-cycle. By significant re-use of code, it
speeds up new application development, legacy system integration, and/or making enhancements.
INNOVATION The TCS Innovations Advantage A pioneer in software R&D, TCS today has an innovation ecosystem that offers research-based solutions in leading-edge technologies to meet clients’ expectations from IT and to support their Business objectives.
• • •
Innovation Strategy: Research Segmentation, Customers Expectations & Alignment (Research Themes). Innovation Ecosystem: TCS Innovation Labs, TCS Co-Innovation Network (COIN)™, Incubation Group. Innovation Events: “Innovation Days” help key customers and TCS researchers to collaborate on research towards specific solutions. “Innovations Forums” held annually in UK and the USA serve as confluences of thought leaders, researchers from academia, start-ups and customers, bringing value through shared experiences and offering a preview of technologies and solutions of the coming decade.
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Innovation Culture: Awards for young innovators, coding competitions, research workshops and conferences where scientists of international participate create a fertile environment for TCSers, enabling them to think creatively around customer solutions.
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Intellectual Property: TCS has created a strong IPR base and has stepped up investments in building assets such as patents, copyrights and trademarks.
Research Segmentation
Aligned to their clients’ varied requirements TCS has a portfolio approach to innovation. It segments research into three categories:
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Sustaining or Derivative Innovation: Innovations that offer improvements on current offerings in current markets
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Platform Innovations: Innovations that help customers move to adjacent technologies and create additional capabilities Disruptive Innovations: Innovations that are game changers and bring radical changes to current markets and capabilities.
TCS invests in research in adjacent and futuristic technologies and has a metrics driven approach to innovation. Using an Open and Collaborative framework it connects customers to the best of breed entities in the technology landscape and enables them to gain competitive advantage.
Outcome based Research Themes
TCS Innovations focus on typical jobs/outcomes customers expect. Samples of TCS R&D offerings that address customers’ expectations from IT:
• • • • •
To Increase Operational Efficiency and Productivity: software tools, performance tools etc. To Promote Business Agility: SaaS platforms, Agile enterprise architecture, Decision Support Systems etc To Simplify and Transform: Virtualization, Cloud computing, Managed Evolution of Infrastructure etc To Manage Enterprise Risk and Compliance: Smart Cards, Copyright protection offerings etc To Enable Understanding of Markets and Customers: Knowledge Discovery and Advertising platform Solutions
To support customers’ business objectives social concerns TCS:
• • • • •
Enrich User Experience with Surface Computing, Unified Communications and Multimedia Gateway solutions Optimize Enterprise Knowledge with Content Management Systems Offerings Foster Information Ubiquity with Knowledge Portals and Mobile Based Advisory systems Enhance Healthcare with Life Sciences, Embedded Systems and NLP offerings Conserve the Environment with Green IT solutions and consulting.
THE TCS CO-INNOVATION NETWORK (COIN)™ TCS’ Co-Innovation Network (COIN™) is a rich and diverse network that brings value to customers from the entire technology landscape. As opposed to the rigid engagement models of the past, COIN™ uses IP management and partnering strategies to drive innovation in an environment of open communities and solution brokers. Solutions also involve technologies wrapped in process bundles, and new software investments based on subscription rather than ownership. Coin™ Alliances COIN™ is led by TCS Innovation Labs and includes academic institutions, start-ups, venture funds, strategic alliance partners, multi-lateral organizations, and key clients. This helps COIN™ to bring forth true synergies and give an ecosystem perspective to innovation. Academia TCS connects to academic institutions in different ways:
• • • •
It funds research. Much of this research is in basic and applied sciences that will benefit TCS and its customers in the long term. It provides opportunities for sabbaticals, encouraging TCSers to work in university departments that are engaged in advanced research in various fields It invites researchers from academia to work as interns or on specific projects in TCS Innovation Labs. It sponsors/hosts various events (conferences / workshops / visits) and promotes publications.
Start-ups A market leader strategizes differently from a start-up. However, in today’s competitive environment, it is important for an established company to know the ideas at work in start-ups – the niche products they make, the new markets they create and their potential for breakthrough or ‘disruptive’ innovation – and support the promising ones. A large number of start have been put
through COIN™’s stringent de-risking process to work on innovative solutions with TCS and its customers. Their startup engagements have been geographically well distributed, with partners in the United States, Europe and Asia. Focus is on new and exciting technology areas such as Data Center Optimization Solutions, On Demand Distributed Software Development Solutions, and Compliance Cost Reduction Solutions. Some of our start-up alliances are: • • • Cassatt Collabnet MetricStream
Venture Capital Funds As financiers of the next generation of technologies, Venture Capitalists provide a key connect to innovation. TCS works with VCs across the globe and with their respective portfolio companies to deliver next gen solutions to its customers. They have established alliances with several startups working with VCs. Some of the VC firms that TCS actively works with are: • • • • Kleiner Perkins, Sequoia Capital (both in the United States) Index, Amadeus(United Kingdom) Gemini Israel, Pitango Israel (Israel) Helion Ventures, Nexus (India)
Strategic Alliances TCS has forged strong partnerships with many of the world's foremost technology and services providers like Intel, SAP, HP, Cisco, Sun and EMC to deliver wide ranging customer solutions. These are not marketing alliances, but true co-innovation partnerships through which they pool expertise and create solutions for the future. One of the disruptive areas being explored collaboratively with Intel is balanced computing that enhances manageability, security, end-user experience and TCO for customers. TCS A NEW SAP GLOBAL SERVICES PARTNER
TCS joins a select group of the market's largest consultancies to join the "SAP Global Partner Services" program. As a new global services partner, TCS will invest in joint marketing resources and strategic planning with SAP going forward. TCS' services practice for SAP applications currently employs more than 2,200 people worldwide with significant investments in building composite applications that are powered by the SAP NetWeaver platform. The company is strengthening its field teams serving SAP customers globally and also is building competencies through investment in 20,000 training days over the next two years. "Strong partnerships and engagement models are key to helping our customers adopt enterprise SOA," said Léo Apotheker, president and member of the executive board, SAP. "SAP works closely with its services partners to jointly develop solutions that address changing business needs. TCS is a leading systems integrator and application services partner for enterprises globally. Its domain, technology and global implementation capabilities, which leverages its Network Delivery Model, opens new opportunities to address customer needs and the organization's proven track record is something we look forward to leveraging across the globe." Support for SAP in Strategic Industries and Markets Drawing upon its familiarity in implementing SAP applications, TCS is actively working with SAP to develop a variety of services that address specific customer pain points across many different industries and markets. As a SAP global services partner, TCS collaborates with SAP and many of its independent software vendor (ISV) partners to develop and market specific solutions and services for the hospitality industry globally. TCS will also serve as a source of international deployment of SAP Business One to subsidiaries of corporate enterprises and apply its expertise in manufacturing to implement adaptive manufacturing solutions for customers worldwide. In addition, TCS has signed up for the "BPO Services Powered by SAP" program and is building a platform to provide human capital management (HCM) business process outsourcing (BPO) services that are based on mySAP(tm) ERP. This global partnership will also help drive customer upgrades to mySAP ERP in target verticals, using TCS' innovation labs to build and showcase solution accelerators and composites.
CORE BUSINESS PROCESSES OF “IBM”
INTRODUCTION International Business Machines Corporation, abbreviated IBM and nicknamed "Big Blue" (for its official corporate color), is a multinational computer technology and IT consulting corporation headquartered in Armonk, New York, United States. The company is one of the few information technology companies with a continuous history dating back to the 19th century. IBM manufactures and sells computer hardware and software, and offers infrastructure services, hosting services, and consulting services in areas ranging from mainframe computers to nanotechnology. The company which became IBM was founded in 1896 as the Tabulating Machine Company by Herman Hollerith, in Broome County, New York, where it still maintains very limited operations. It was incorporated as Computing Tabulating Recording Corporation on June 16, 1911, and was listed on the New York Stock Exchange in 1916 by George Winthrop Fairchild. CTR's Canadian and later South American subsidiary was named International Business Machines in 1917, and the whole company took this name in 1924 when Thomas J. Watson took control of it. IBM has been well known through most of its recent history as the world's largest computer company and systems integrator. With over 388,000 employees worldwide, IBM is the largest and most profitable information technology employer in the world. IBM holds more patents than any other U.S. based technology company and has eight research laboratories worldwide. The company has scientists, engineers, consultants, and sales professionals in over 170 countries. IBM employees have earned five Nobel Prizes, four Turing Awards, five National Medals of Technology, and five National Medals of Science. As a chip maker, IBM has been among the Worldwide Top 20 Semiconductor Sales Leaders in past years.
BUSINESS MODEL
Innovation
To start with, when we looked more deeply into the topic of business models and business model innovation, we found that, like art, business leaders may know it when they see it, but they have difficulty actually defining it. Searching the literature on the topic proved similarly fruitless – again with no clear, consistent or generally accepted definition of business models or business model innovation. Many different views exist, each emphasizing different dimensions. The three types of business model innovation strategies are:
Industry Model
This approach involves innovating the “industry value chain.” This can be accomplished via horizontal moves into new industries as Virgin has done with its moves from its beginnings in music and retail to such diverse industries as airlines, railways, beverages, financial services, etc., thus leveraging its superior skills in consumer management. It can also be accomplished by redefining existing industries, as Dell has done by eliminating intermediaries and going directly to customers and, as Apple has done by delivering music directly to customers via iTunes. Perhaps most dramatically, industry model innovation can also involve the development of entirely new industries or industry segments, as Google and other search engine companies have done in the past decade with the advent of the Internet. This dimension leverages white spaces in the competitive environment as well as unique assets.
Revenue Model
This approach involves innovations in how companies generate revenues by reconfiguring offerings (product/service/value mix) and/or by introducing new pricing models. This is a dimension that leverages customer experience, choices and preferences and that can also leverage new technologies. A good example of an offering innovation is Cirque du Soleil’s redefinition of the circus experience, recombining new and old elements to change the value proposition and reach a new target audience. A classic example of a pricing innovation is Gillette’s strategy of under pricing razors to sell razor blades. Another more recent example is Netflix’s introduction of a new kind of movie rental option, offering consumers monthly subscriptions rather than the once prevailing product-based rental structure. New pricing models
also can be seen in digitized modern markets with such offerings as music subscriptions and clips of music for ring tones.
Enterprise Model
This approach involves innovating the structure of the enterprise and the role it plays in new or existing value chains. This dimension focuses on redefining organizational boundaries. Innovations here can be achieved through integration as in the Japanese kieretsu framework, where what might typically be a supply chain is owned and managed by one firm or conglomerate. Clothing retailer Zara, for example, manages design through delivery, creating feedback loops from customer data at stores back to designers through manufacturing. Enterprise model innovation can also be accomplished via specialization, wherein organizations focus on core competencies or high-margin activities and outsource the rest. The Indian telecommunications company Bharti Airtel, for example, focuses on marketing, sales and distribution, outsourcing much of the actual IT and networking functions to external partners. Finally, enterprise model innovation can be accomplished via network plays, wherein companies rely on external collaboration.
IBM BPM Suite
BM BPM Suite contains a comprehensive set of collaborative, role-based capabilities that enable customers to model, simulate, execute, rapidly change, monitor and optimize core business processes. The IBM BPM Suite brings together capabilities from across IBM and includes a choice of two Foundational Offerings, the IBM WebSphere Dynamic Process Edition and the IBM FileNet Active Content Edition, that make it easier for customers to get started with BPM. Each Foundational Offering is designed to continuously optimize business processes and adapt them to rapidly changing needs. Foundational Offerings can be deployed individually or together to address a wide range of customer scenarios involving systems, applications, content, people and decisions. Optional Extended Value Offerings expand the value of the IBM BPM Suite and include advanced analytics, BPM repositories, accelerators, adaptors and collaborative tools.
The IBM BPM Suite is designed to support your business process needs both today and in the future. Regardless of whether your organization needs flexible and dynamic processes integrated across multiple disparate systems or content-centric processes with demanding compliance
requirements, IBM BPM Suite can realize your business priorities and evolve with you as your BPM journey continues.
IBM SOA life cycle
The following list describes the tasks involved in the different phases of the SOA life cycle. In this case, these phases are applied in the CBS development:
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Model: Gather and analyze business requirements. Design, simulate, and optimize the business processes. Assemble: Assemble new and existing services to form the business processes and optimize them. Deploy: Deploy the business processes. Manage: Manage and monitor these business processes from both an IT and business perspective. Governance: Feed information gathered during the manage phase back into the life cycle to enable continuous process improvement.
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• •
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Claim status CBS: asset development
Model Phase
1. Identify the various competencies of a business, and capture the hot components from the heat map using the Component Business Modeling (CBM) methodology. 2. Identify the business processes for the hot components in the heat map. 3. Define the process flow for the identified processes using IBM WebSphere Business Modeler. 4. Explore the capability map and process map assets provided by the Healthcare Payor Content Pack. 5. Identify all the business services to implement the business process by following the Service Oriented Modeling and Architecture (SOMA) methodology. Assemble And Deploy Phases 1. Explore the Business Service Template (BST) identified in the modeling phase and extend it to realize the claim status CBS. 2. Implement the service interfaces in the BST. 3. Create a WebSphere Business Services Fabric project and import the relevant namespaces. 4. Deploy the claim status CBS. 5. Test the business process using the test component of IBM WebSphere Integration Developer. 6. Use the WebSphere Business Services Fabric dynamic assembly component to route dynamically. 7. Use content-based assertion for routing claim requests. Manage And Governance Phases 1. Create subscriptions in WebSphere Business Services Fabric to control the access to different business services and provide necessary enrollments and role assignments. 2. Demonstrate governance capabilities for the sample CBS developed.
CBM Methodology
IBM's CBM methodology provides a framework for viewing the business as a network of individual components. The decomposition of an enterprise into well-bounded and discrete
business components enables a straightforward understanding of a complex enterprise and facilitates the realization of business intent by information technology. Knowing the business value associated with each component makes it easier to set transformational priorities. The CBM map for SABU Health Corporation is created by identifying all the business competencies for the organization and mapping the business activities into discrete, manageable components, which are grouped under the suitable business competencies and accountability levels (direct, control, and execute). Evaluation criteria, such as cost, revenue potential, and alignment with business, are applied to all the components, and the areas of competitive differentiation and priority (hot components) are identified. Claims management and claims processing have been categorized as the hot components for SABU Health Corporation.
Define the business process using IBM WebSphere Business Monitor The next step is to identify the business process flow for Claim, Status And Visibility that meets the above requirements. The business process should validate the electronic data interchange (EDI) requests and send the status of the claim back to the provider. Figure 3 illustrates the process flow.
Explore the capability and process maps Alignment of IT goals to business goals enables your business to meet its objectives in an efficient and cost-effective way. The Healthcare Payor capability and process maps asset of the IBM Healthcare Payor Content Pack allows for the following:
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Mapping a process to a capability Mapping Healthcare Payor processes to business services. Provides proper alignment of business and IT strategies. Provides traceability for the business objectives identified in the modeling phase. Gives business executives a clearer understanding of what IT does. Aligns the business services being developed to the business objectives. Ensures adherence to industry standards.
This mapping:
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Healthcare Payor capability maps provide the foundational layer of the required business capabilities that the healthcare industry performs across the healthcare industry value chain. Healthcare process maps serve as the taxonomy for business processes for the healthcare industry to help align business services. There are typically capability maps and process maps specific to an industry, and they're based on industry standards and best practices. The models for capability and process maps are represented using the Unified Modeling Language (UML) notation inside a modeling tool, such as IBM Rational Software Architect. In the capability map, the capabilities that meet the requirements of the solution to be implemented are identified and mapped to the suitable business process in the process map. Later, the business services required to implement the process are identified and mapped accordingly.
SOMA Methodology
The next step in the modeling phase of CBS is to create a service model that realizes the business process. SOMA methodology is followed to create a service model. SOMA is an end-to-end method for SOA solution implementation. It's an analysis and design method for the design and construction of SOA to enable target business processes. The following activities of SOMA are carried out:
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SOMA identification SOMA specification SOMA realization
ROAD AHEAD
The Indian information technology sector continues to be one of the sunshine sectors of the Indian economy showing rapid growth and promise. According to a report prepared by McKinsey for NASSCOM, the exports component of the Indian industry is expected to reach US$ 175 billion in revenue by 2020. The domestic component will contribute US$ 50 billion in revenue by 2020. Together, the export and domestic markets are likely to bring in US$ 225 billion in revenue, as new opportunities emerge in areas such as public sector and healthcare, and as geographies including BRIC and Japan opt for greater outsourcing.
BIBLIOGRAPHY
• • • • www.tcs.com www.techmahindra.com www.ibm.com www.ibfe.org
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