Indian IT industry in general is more technology driven and we don’t find more domain or technology experts. Recently we were trying to build domain competency in logistics field, but finding one domain expert was almost impossible.
There is a social and monitory pressure at the junior and middle levels to take up more people management roles as they are attractive in monitory and designation roles. Also, people manager is perceived as more powerful role.
However, leadership is not just about leading people, business and organizations. More and more companies, especially in technology space, are creating positions for domain experts. I have seen few of my friends choose to be domain experts over people managers and are doing good.
So, we are fast getting in to a situation where both technical and people management is considered equally important for running an operation of an IT company. In the recent past, Indian IT industry has really moved up in the value chain and created space for providing domain/technical expertise as business offering. This provides opportunities for domain and technology experts.
So, its ok to say I don’t want to manage people!
Sunday, January 30, 2011
Sunday, January 23, 2011
An air of confidence: How Indigo’s ambition is soaring
Couple of weeks back IndiGo airlines, which is a budget carrier in Indian skies, moved to European stock market when it announced the biggest deal in aviation history. Topping up an earlier plan to buy 100 planes with another 180 in a decade from 2015, IndiGo has demonstrated a shopping bag of $15.6 billion to buy Airbus aircrafts that would power its ambition to become an international player.
Barely five years after it started off as a humble budget carrier that people hardly noticed, IndiGo has emerged as a serious challenger to deep pocketed Kingfisher and Jet airlines. Indigo reported a profit of RS 550 crore last year, while most of the Indian airlines reported losses.
IndiGo’s success story starts from the concrete business plan its founders, Rahul Bhatia and Rakesh Gangwal, had and they built a very good initial team. Their first CEO, Bruce Ashby built the right systems, processes and competitive cost structure. They have been concentrating on what the customer wants, on-time departures, clean aircraft and good and clean flying experience, they stick to this plan and didn’t try anything else. The airline has impressive 80.6% ontime performance.
IndiGo’s 180 aircraft deal with Airbus has shifted the word’s focus on India. The historic order is a very strong comment on India’s overall economic growth, the growth potential of countries aviation sector and confidence of IndiGo’s business plan, its ability to execute such a large order and to raise the funds for it. This order for industry leading fuel efficient aircraft will allow IndiGo to continue to offer low fares.
Airlines have come and gone ever since the skies were opened up nearly two decades ago. While East West Airlines and ModiLuft had glamorous starts; Jet seemed to be only one going steadily forward until Kingfisher arrived. As it happened, the budget airline that fired the country’s imagination, Air Deccan has bitten off more than it could chew and ended up with Kingfisher Airlines, while Jet gobbled Sahara.
IndiGo, on the contrast, has behaved more like the tortoise in the race with hare. From day one, it has behaved as nothing but a no-frills airline and focused more on making the roads in the industry.
It appears that, IndiGo has clear business plan and strategy to expand itself as International carrier as it is completing 5 years of flying, which is required to get international flaying license. Clear message is, if you have a differentiator, you can win even though you are late entry in to the game.
Barely five years after it started off as a humble budget carrier that people hardly noticed, IndiGo has emerged as a serious challenger to deep pocketed Kingfisher and Jet airlines. Indigo reported a profit of RS 550 crore last year, while most of the Indian airlines reported losses.
IndiGo’s success story starts from the concrete business plan its founders, Rahul Bhatia and Rakesh Gangwal, had and they built a very good initial team. Their first CEO, Bruce Ashby built the right systems, processes and competitive cost structure. They have been concentrating on what the customer wants, on-time departures, clean aircraft and good and clean flying experience, they stick to this plan and didn’t try anything else. The airline has impressive 80.6% ontime performance.
IndiGo’s 180 aircraft deal with Airbus has shifted the word’s focus on India. The historic order is a very strong comment on India’s overall economic growth, the growth potential of countries aviation sector and confidence of IndiGo’s business plan, its ability to execute such a large order and to raise the funds for it. This order for industry leading fuel efficient aircraft will allow IndiGo to continue to offer low fares.
Airlines have come and gone ever since the skies were opened up nearly two decades ago. While East West Airlines and ModiLuft had glamorous starts; Jet seemed to be only one going steadily forward until Kingfisher arrived. As it happened, the budget airline that fired the country’s imagination, Air Deccan has bitten off more than it could chew and ended up with Kingfisher Airlines, while Jet gobbled Sahara.
IndiGo, on the contrast, has behaved more like the tortoise in the race with hare. From day one, it has behaved as nothing but a no-frills airline and focused more on making the roads in the industry.
It appears that, IndiGo has clear business plan and strategy to expand itself as International carrier as it is completing 5 years of flying, which is required to get international flaying license. Clear message is, if you have a differentiator, you can win even though you are late entry in to the game.
Sunday, January 16, 2011
Auction of IPL Players
Last week’s auction of IPL players reminds me of the fact that, if you have money you can walk out with any player you want. And infact there were some players which were not taken by anyone, which talks about the uncertainty.
This reminded me the NFL draft pick of American Football League (Its true with NBA or MLB to that matter) The difference there is, the week team gets to choose the first draft, in turn the strongest college player. When that auction happens, only the data about players statistics related to games are being displayed and his footage is shown so that teams can made decisions.
Salary will not be discussed there and that is up to the player and team management to sit down and decide on the salary, keeping the salary cap in mind. This allows the team to define the bonus structure and in turn keeps player on the toes to perform.
In my opinion, that is a correct way of putting the college players in to professional world. Imagine if we have similar thing where we induct Ranaji players in to mainstream?
That’s why I like American sports and I feel it is more professional!
This reminded me the NFL draft pick of American Football League (Its true with NBA or MLB to that matter) The difference there is, the week team gets to choose the first draft, in turn the strongest college player. When that auction happens, only the data about players statistics related to games are being displayed and his footage is shown so that teams can made decisions.
Salary will not be discussed there and that is up to the player and team management to sit down and decide on the salary, keeping the salary cap in mind. This allows the team to define the bonus structure and in turn keeps player on the toes to perform.
In my opinion, that is a correct way of putting the college players in to professional world. Imagine if we have similar thing where we induct Ranaji players in to mainstream?
That’s why I like American sports and I feel it is more professional!
Python-swallows-an-elephant: iGate and Patni Deal
iGate with Apax Partners, will acquire 63% of the company for the final price of Rs. 503.50 effectively valuing Patni, the company at $1.5 Billion. By Indian law, iGate will have to make an open offer to acquire an additional 21% of the company.
With that, a company with revenues of about $200 million in 2009 acquires control of a company with revenues of about $650 million. Even by market cap, iGate is a third smaller than Patni
This really shows the risk taking ability of a company and it’s management. Phaneesh Murthy is known for his risk taking ability and he has been a go getter. He has built Infosys from a mere $2 million to over $700 million when he was head of sales and marketing at Infosys.
Acquiring Patni was Murthy’s biggest challenge so far, but it is in line with his commitment to make iGate a $ 1 Billion firm by 2012, a tough job for a $200 million company. Never the less, this deal gives Murthy the size he was looking for.
But, he is still a long way from playing with big league players like TCS, Infosys and Wipro. As Murthy himself admitted, “The Challenge is to take a company, which is moving like a auto rickshaw and convert it’s pace to that of a speeding car” He already said, building the combined go-together market strategy, building strong account management principles so that top accounts grow at much stronger pace and creating integrated leadership team would be the priority.
I have seen an acquisition of around $20 mil, which was miserably failed, though there was lot of synergy. Currently I am experiencing a bigger merger, which is being done in much more systematic way. But one thing I am sure about, if there is one person who can make this deal or integration work is Phaneesh Murthy and given the way in which he transformed iGate; he will pull this quite successfully.
Its all about leadership.
With that, a company with revenues of about $200 million in 2009 acquires control of a company with revenues of about $650 million. Even by market cap, iGate is a third smaller than Patni
This really shows the risk taking ability of a company and it’s management. Phaneesh Murthy is known for his risk taking ability and he has been a go getter. He has built Infosys from a mere $2 million to over $700 million when he was head of sales and marketing at Infosys.
Acquiring Patni was Murthy’s biggest challenge so far, but it is in line with his commitment to make iGate a $ 1 Billion firm by 2012, a tough job for a $200 million company. Never the less, this deal gives Murthy the size he was looking for.
But, he is still a long way from playing with big league players like TCS, Infosys and Wipro. As Murthy himself admitted, “The Challenge is to take a company, which is moving like a auto rickshaw and convert it’s pace to that of a speeding car” He already said, building the combined go-together market strategy, building strong account management principles so that top accounts grow at much stronger pace and creating integrated leadership team would be the priority.
I have seen an acquisition of around $20 mil, which was miserably failed, though there was lot of synergy. Currently I am experiencing a bigger merger, which is being done in much more systematic way. But one thing I am sure about, if there is one person who can make this deal or integration work is Phaneesh Murthy and given the way in which he transformed iGate; he will pull this quite successfully.
Its all about leadership.
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