After recent quarter’s result; everyone is getting ready to write-off Infosys; that fundamentals are not right, that it has to change its business model, that the strategy is not inline with market etc.
There is an interesting article by Rama Bijapurkar as what’s wrong with Infosys. Its more of an analysis and comparison between PepsiCo and Infosys.
Author argues that Infosys did change and produced a new strategy called Infosys 3.0
Thus began Infy 3.0, widely reported in the media and in company literature. The good news is that at last a company that always segmented its market game and its internal structure based on service lines, geography and verticals, has recognised the concept of business-market segmentation based on what customers are looking for; using it to determine its market game externally and its structure and delivery system internally.
Segment 1, game 1 (SG 1) is customers who want to transform or "change the business", segment 2, game 2 (SG 2) is about helping customers run the business in a cost-efficient manner, optimising business operations etc, and segment 3, game 3 (SG 3) they call "innovation". It still isn't clear whether it is innovation for Infosys or helping customers innovate, but here resides all the products and platforms and readymade solutions offerings. While not exactly there, it is a big step.
Clearly SG 1 (transformation) and SG 3 (innovation) are where the nonlinear growth will come from. SG 3 maybe greenfield yet, except for the hitherto under-appreciated stepchild of the business, Finnacle, the core banking platform.
SG 1 on the other hand seems to have been around for a while and growing roots nicely. According to a Tech Business Research Inc report late last year, transformation services (SG 1) already accounts for 25% of the company business, and innovation services (SG 3) accounts for 10% business running and optimisation services (SG 2), which is the traditional value space of all Indian IT business, still accounted for 65%.
"The effort of Infosys 3.0 is to bring a balance between the three
Very informative article and thought process, the link to the complete article is below.
http://economictimes.indiatimes.com/tech/ites/it-major-infosys-needs-to-sound-more-confident-about-its-strategy/articleshow/14911847.cms?curpg=1
There is an interesting article by Rama Bijapurkar as what’s wrong with Infosys. Its more of an analysis and comparison between PepsiCo and Infosys.
Author argues that Infosys did change and produced a new strategy called Infosys 3.0
Thus began Infy 3.0, widely reported in the media and in company literature. The good news is that at last a company that always segmented its market game and its internal structure based on service lines, geography and verticals, has recognised the concept of business-market segmentation based on what customers are looking for; using it to determine its market game externally and its structure and delivery system internally.
Segment 1, game 1 (SG 1) is customers who want to transform or "change the business", segment 2, game 2 (SG 2) is about helping customers run the business in a cost-efficient manner, optimising business operations etc, and segment 3, game 3 (SG 3) they call "innovation". It still isn't clear whether it is innovation for Infosys or helping customers innovate, but here resides all the products and platforms and readymade solutions offerings. While not exactly there, it is a big step.
Clearly SG 1 (transformation) and SG 3 (innovation) are where the nonlinear growth will come from. SG 3 maybe greenfield yet, except for the hitherto under-appreciated stepchild of the business, Finnacle, the core banking platform.
SG 1 on the other hand seems to have been around for a while and growing roots nicely. According to a Tech Business Research Inc report late last year, transformation services (SG 1) already accounts for 25% of the company business, and innovation services (SG 3) accounts for 10% business running and optimisation services (SG 2), which is the traditional value space of all Indian IT business, still accounted for 65%.
"The effort of Infosys 3.0 is to bring a balance between the three
Very informative article and thought process, the link to the complete article is below.
http://economictimes.indiatimes.com/tech/ites/it-major-infosys-needs-to-sound-more-confident-about-its-strategy/articleshow/14911847.cms?curpg=1
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