Description
Tech Mahindra
Tech Mahindra
‚Leaders don't look behind, they don't look to the side; they look ahead. So as far as I am concerned we are looking to be the best telecommunication service provider in the world. We have been recognized by major agencies in the world as being amongst the top and we are ranked with the best in the world. So we benchmark not just with our peers here, but we benchmark with the best in the world.?
? Anand Mahindra, Chairman,
Tech Mahindra Ltd.
Mahindra Group
• One of the largest business conglomerates in India
– Incorporated as Mahindra & Mohammed on Oct 2nd 1945 by Mahindra brothers & Ghulam Mohammed – Renamed Mahindra & Mahindra after Ghulam Mohammed’s exit in 1947 – Over the next 60 years, it diversified its operations across various sectors like automotive, farm equipment, trade & logistics, hospitality, information technology, infrastructure, financial services – US $ 6.7 billion group
• 1986 - Joint venture between Mahindra group & British Telecommunications plc
– Company was named Mahindra-British Telecom (MBT)
Industry - Timeline
1960 - Indian government set up Department of Electronics (DOE) 1970 - The first software was exported by TCS 1980 - Industry managed to reach USD 12 million Mid–1980 - Emergence of new players like Infosys, Satyam, Mastek, etc (body shopping) 1991 - Shift from body shopping to working from offshore Late 1990 - High growth : ‘Y2K’ problem, STP scheme by govt. 2000 - Dot com bubble burst 2002 - Fastest growing IT market and captured 70% of IT outsourcing market 2006 - High?end software services - BFSI, telecom, retailing and automotive segments 2008 - Global recession – US companies slashed their IT spendings
Temporal Evolution
• 1990s – MBT began geographic expansion • 1993 – Incorporated first overseas subsidiary, MBT International Inc • 1994 – Was awarded ISO 9001 certification by BVQI
• 1995 – Established first UK branch Office
• 2001 – Incorporated MBT GmbH, Germany Inc; Entered into strategic alliance with Rockwell Electronic Commerce • 2002 – Incorporated MBT Software Technologies Pte. Ltd., Singapore; Was assessed at Level 5 of SEI CMM by KPMG
Temporal Evolution
• 2003 – Re-certified to ISO 9001:2000 by RWTUV • 2005 – Acquired Axes Technologies (India) Pvt. Ltd.; Certified to BS 7799-2:2002 by RWTUV; Assessed at Level 5 of SEI CMMI by KPMG • 2006 – Name was changed from Mahindra-British Telecom to Tech Mahindra Ltd. • 2006 – JV with Motorola Inc under the name CanvasM • 2007 – Participated in Microsoft’s Connected Services Sandbox program and Acquired iPolicy Networks Pvt. Ltd. • April, 2009 – Acquired Satyam Computers • July, 2009 – Tie-up with WIN
Strategy
• A very clear focus on the telecommunication industry –Achieved a clear objective & strategic alignment by focusing on one segment –Clarity of goal • Endorsed as a thought leader in telecom industry
Decisions and Strategy
YEAR DECISIONS REASONING RATING
1986 – 2006 2006
Entered IT sector: JV with British Telecommunications
Post 2006
Strategic pre-emption – Mahindra wanted to enter into the business -found the resource & expertise of BT would enhance growth in Indian Software Industry. JV with Motorola Inc. Field of telephone software was booming under the brand name and providing expertise in that domain CanvasM would decrease the institutional voids •Incorporation of MBT GMBH Expand geographic (Germany):Re-certified to ISO 9001:1994 by presence BVQI
•Participation in Microsoft's Sandbox: collaborative environment to develop and test new communications services.
Decisions and Strategy
YEAR DECISIONS REASONING RATING
2007
Acquired iPolicy •Provided complimentary strong security services capabilities. Networks Pvt. •It got a core competency different from its Ltd. existent core competencies. Satyam Acquisition •Diversification •Acquire a better portfolio of customers. •Opportunity to rationalize shared functions •Global presence •Focuses on building a new platform to provide increased functionality and faster transactions •Will formulate a go-to-market strategy in key territories particularly targeting the Asian markets.
2009
2009
Tie-up with WIN
Strategic Alliances
• Tech M (44%) – BT JV (39%) - Domain knowledge for Tech M - IT infrastructure transformation for BT • Tech M (80%) – Motorola JV – ‚CanvasM? - Motorola’s mobile technology expertise - Motorola gained access to 11000 professional experts • iPolicy Networks Acquisition - complemented Tech M’s strong security offerings - enabled it to offer E2E security services to customers
Strategic Alliances
• Satyam Acquisition - ‚Mahindra Satyam? - Large client base - Land assets and premises - About 43,000 employees globally - Both companies benefit from ‚Management Practices? • Tech M – WIN Alliance - Jointly develop market strategies in the key regions - Tech M capitalizes on WIN’s investments in web? and WAP?based services - WIN gets access to Tech M's applications and outsourcing services
VRIO framework
Resource
In depth Knowledge of the telecom Industry ISO 9001 by BVQI Acquisition of Axes technologies Inc. CanvasM (joint venture with Motorola) Ipolicy networks private limited (Acquisition) Satyam Computers Tech Mahindra’s Management
Valuable Rare Inimitable Organisation
Y Y Y Y Y Y Y Y Y Y Y Y Y Y N N Y Y Y Y Y Y Y Y Y Y Y Y
P.E.S.T.E.L Analysis
Political
• Stable Indian Government • Sunrise Industry Status • Anti Outsourcing Drive
Technology
• Free wares • Open source
Economic
• Exchange Rate Fluctuations • STP and Fringe Benefit Tax
Environment
• Terrorism • Contagious Diseases
Social
• Focus on Education in India
Legal
• Legally Complaint
SWOT Analysis
Strong clientele Superior knowledge in telecom domain Good Ranking Highly dependent on telecom Industry High degree of customer concentration
SWOT
Geographical expansion Expansion into other business verticals Versatile services to different telecommunication companies Tax benefits to expire by 2010 High degree of competition High volatility in exchange rates
Current state of Affairs
• Management is a challenge – Capabilities are far broader than TM's own background • Legal Liabilities – it has inherited from Satyam • Mahindra Satyam – an I.T. project to provide WC Football match details on mobile phones • In future, though Tech M’s revenues from BT is expected to proportionately fall – however it would be made up by revenues from other verticals
THANK YOU!!
doc_946975374.pptx
Tech Mahindra
Tech Mahindra
‚Leaders don't look behind, they don't look to the side; they look ahead. So as far as I am concerned we are looking to be the best telecommunication service provider in the world. We have been recognized by major agencies in the world as being amongst the top and we are ranked with the best in the world. So we benchmark not just with our peers here, but we benchmark with the best in the world.?
? Anand Mahindra, Chairman,
Tech Mahindra Ltd.
Mahindra Group
• One of the largest business conglomerates in India
– Incorporated as Mahindra & Mohammed on Oct 2nd 1945 by Mahindra brothers & Ghulam Mohammed – Renamed Mahindra & Mahindra after Ghulam Mohammed’s exit in 1947 – Over the next 60 years, it diversified its operations across various sectors like automotive, farm equipment, trade & logistics, hospitality, information technology, infrastructure, financial services – US $ 6.7 billion group
• 1986 - Joint venture between Mahindra group & British Telecommunications plc
– Company was named Mahindra-British Telecom (MBT)
Industry - Timeline
1960 - Indian government set up Department of Electronics (DOE) 1970 - The first software was exported by TCS 1980 - Industry managed to reach USD 12 million Mid–1980 - Emergence of new players like Infosys, Satyam, Mastek, etc (body shopping) 1991 - Shift from body shopping to working from offshore Late 1990 - High growth : ‘Y2K’ problem, STP scheme by govt. 2000 - Dot com bubble burst 2002 - Fastest growing IT market and captured 70% of IT outsourcing market 2006 - High?end software services - BFSI, telecom, retailing and automotive segments 2008 - Global recession – US companies slashed their IT spendings
Temporal Evolution
• 1990s – MBT began geographic expansion • 1993 – Incorporated first overseas subsidiary, MBT International Inc • 1994 – Was awarded ISO 9001 certification by BVQI
• 1995 – Established first UK branch Office
• 2001 – Incorporated MBT GmbH, Germany Inc; Entered into strategic alliance with Rockwell Electronic Commerce • 2002 – Incorporated MBT Software Technologies Pte. Ltd., Singapore; Was assessed at Level 5 of SEI CMM by KPMG
Temporal Evolution
• 2003 – Re-certified to ISO 9001:2000 by RWTUV • 2005 – Acquired Axes Technologies (India) Pvt. Ltd.; Certified to BS 7799-2:2002 by RWTUV; Assessed at Level 5 of SEI CMMI by KPMG • 2006 – Name was changed from Mahindra-British Telecom to Tech Mahindra Ltd. • 2006 – JV with Motorola Inc under the name CanvasM • 2007 – Participated in Microsoft’s Connected Services Sandbox program and Acquired iPolicy Networks Pvt. Ltd. • April, 2009 – Acquired Satyam Computers • July, 2009 – Tie-up with WIN
Strategy
• A very clear focus on the telecommunication industry –Achieved a clear objective & strategic alignment by focusing on one segment –Clarity of goal • Endorsed as a thought leader in telecom industry
Decisions and Strategy
YEAR DECISIONS REASONING RATING
1986 – 2006 2006
Entered IT sector: JV with British Telecommunications
Post 2006
Strategic pre-emption – Mahindra wanted to enter into the business -found the resource & expertise of BT would enhance growth in Indian Software Industry. JV with Motorola Inc. Field of telephone software was booming under the brand name and providing expertise in that domain CanvasM would decrease the institutional voids •Incorporation of MBT GMBH Expand geographic (Germany):Re-certified to ISO 9001:1994 by presence BVQI
•Participation in Microsoft's Sandbox: collaborative environment to develop and test new communications services.
Decisions and Strategy
YEAR DECISIONS REASONING RATING
2007
Acquired iPolicy •Provided complimentary strong security services capabilities. Networks Pvt. •It got a core competency different from its Ltd. existent core competencies. Satyam Acquisition •Diversification •Acquire a better portfolio of customers. •Opportunity to rationalize shared functions •Global presence •Focuses on building a new platform to provide increased functionality and faster transactions •Will formulate a go-to-market strategy in key territories particularly targeting the Asian markets.
2009
2009
Tie-up with WIN
Strategic Alliances
• Tech M (44%) – BT JV (39%) - Domain knowledge for Tech M - IT infrastructure transformation for BT • Tech M (80%) – Motorola JV – ‚CanvasM? - Motorola’s mobile technology expertise - Motorola gained access to 11000 professional experts • iPolicy Networks Acquisition - complemented Tech M’s strong security offerings - enabled it to offer E2E security services to customers
Strategic Alliances
• Satyam Acquisition - ‚Mahindra Satyam? - Large client base - Land assets and premises - About 43,000 employees globally - Both companies benefit from ‚Management Practices? • Tech M – WIN Alliance - Jointly develop market strategies in the key regions - Tech M capitalizes on WIN’s investments in web? and WAP?based services - WIN gets access to Tech M's applications and outsourcing services
VRIO framework
Resource
In depth Knowledge of the telecom Industry ISO 9001 by BVQI Acquisition of Axes technologies Inc. CanvasM (joint venture with Motorola) Ipolicy networks private limited (Acquisition) Satyam Computers Tech Mahindra’s Management
Valuable Rare Inimitable Organisation
Y Y Y Y Y Y Y Y Y Y Y Y Y Y N N Y Y Y Y Y Y Y Y Y Y Y Y
P.E.S.T.E.L Analysis
Political
• Stable Indian Government • Sunrise Industry Status • Anti Outsourcing Drive
Technology
• Free wares • Open source
Economic
• Exchange Rate Fluctuations • STP and Fringe Benefit Tax
Environment
• Terrorism • Contagious Diseases
Social
• Focus on Education in India
Legal
• Legally Complaint
SWOT Analysis
Strong clientele Superior knowledge in telecom domain Good Ranking Highly dependent on telecom Industry High degree of customer concentration
SWOT
Geographical expansion Expansion into other business verticals Versatile services to different telecommunication companies Tax benefits to expire by 2010 High degree of competition High volatility in exchange rates
Current state of Affairs
• Management is a challenge – Capabilities are far broader than TM's own background • Legal Liabilities – it has inherited from Satyam • Mahindra Satyam – an I.T. project to provide WC Football match details on mobile phones • In future, though Tech M’s revenues from BT is expected to proportionately fall – however it would be made up by revenues from other verticals
THANK YOU!!
doc_946975374.pptx