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Infosys’s IS strategy 
By: Monzer Osama AL Shaikh Warak 
Under supervision of: Dr.Mamta Bhandar 
20/09/2014
The Content … 
1. The Goal 
2. Design Thinking Definition 
3. Design Thinking & Innovation @ Apple 
4. Infosys Situation 
...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
The Goal 
The main goal of this presentation is to 
delivering reco...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Design Thinking Definition: 
 Innovation powered through understan...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Design Thinking = Strategic Thinking 
The Efficiency Movement: 
Out...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Design Thinking & Innovation @ Apple 
Apple’s success was not just ...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Apple: Product Development Strategy and Execution (1 of 2) 
Trouble...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Apple: Product Development Strategy and Execution (2 of 2) 
Excelle...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Infosys Situation 
Infosys’s core business is providing proprietary...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Infosys Situation 
Design Vs Business Thinking 
Business Thinking D...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Recommendations 
As a final results of running the design thinking ...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Recommendations 
 Adopt Critical Success Factors (CSF) Approach & ...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Recommendation: Developing business & IS Strategy 
Global corporati...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Recommendation: BUSINESS-IT SYNCHRONIZATION 
 To “synchronize” bus...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Use Enterprise Evolution Model for business transformation 
In prac...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Measuring the value of the current IS outcome. 
By assessing Return...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Search in adopt a First Mover strategy. 
Infosys Must thinking abou...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Adopt Critical Success Factors Approach & Systems audit grid 
techn...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Adopt Quick-deployment strategy 
Infosys must thinking again with t...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Recommendation: Perform BPR 
 Assess the current business process ...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Review Infosys Service Level Agreements. 
Infosys should review the...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Focusing on User Satisfaction 
Establishing a continuous system for...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Configuration Infosys Styles 
While Infosys operating international...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
Conclusion 
Design-thinking must be a standard operating procedure ...
By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com 
References 
 “The Road to Innovation - Design Thinking and Lean De...
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Infosys’s Information System Strategy

The main goal of this presentation is to delivering recommendations on Infosys’s IS strategy,
Considering the Design Thinking as a Strategy for Innovation within Infosys.

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Infosys’s Information System Strategy

  1. 1. Infosys’s IS strategy By: Monzer Osama AL Shaikh Warak Under supervision of: Dr.Mamta Bhandar 20/09/2014
  2. 2. The Content … 1. The Goal 2. Design Thinking Definition 3. Design Thinking & Innovation @ Apple 4. Infosys Situation 5. Recommendations 6. Conclusion 7. References
  3. 3. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com The Goal The main goal of this presentation is to delivering recommendations on Infosys’s IS strategy, Considering the Design Thinking as a Strategy for Innovation within Infosys.
  4. 4. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Design Thinking Definition:  Innovation powered through understanding and the direct observation of what people need and desire, like or dislike  It is a form of solution-based thinking that starts what is meant to be achieved instead of starting with a certain problem  Then, by focusing on the present and the future, the parameters of the problem and the resolutions are explored, simultaneously When design principles are applied to strategy and innovation the success rate for innovation dramatically improves.
  5. 5. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Design Thinking = Strategic Thinking The Efficiency Movement: Outsourcing, Total Quality Management(TQM), Six Sigma, Lean Manufacturing, Maximizing Return on Assets, Corporate Redesign, Market Segmentation, Licensing, Line Extensions & Diversification, etc. Design is the one business discipline whose primary concern is innovation. When design thinking becomes a core competency, companies become more nimble in the face of rapidly changing markets and new competition.
  6. 6. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Design Thinking & Innovation @ Apple Apple’s success was not just the result of clever strategic moves or an innate sense of market timing. It came from a deep commitment to understanding how people used computing devices and a desire to develop “insanely great products.” The Goal • To design a computer that fostered individual work • Customers would have to fall in love with computers Simplicity in Design and Use • Figuring out the needs of people first • Sensibility: Taking care of every small detail • Simplicity is the ultimate sophistication! • Apple’s design sense was found to be one-of-its-kind (iPodmini) Beyond Fashion • Going beyond superficial trends and getting to the essence of customer experience • Inside-out design seemed ‘cool’ to millions • No compromise between simplicity of use and functionality • Problems were treated as moving targets The iPod famously arose from the all-pervasive love of music within the firm.
  7. 7. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Apple: Product Development Strategy and Execution (1 of 2) Troubled Times at Apple (1980s and early 1990s) • Apple faced massive competition fromIBM clones • Debate revolving whether to compete in the ‘cloning space’ • Business market dominated by ‘Wintel’ • Many ideas failed to take off! • Rapid proliferation of models confused customers and increased complexities Marketing Requirement Engineering Document User- Experience Document This traditional approach was a consultative process and it lacked cohesion – It DID NOT work for Apple! Excellence in Execution Platform Strategy Iterative Customer Involvement Beautiful Products The Right Way Forward for Apple
  8. 8. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Apple: Product Development Strategy and Execution (2 of 2) Excellence in Execution • Jobs took immediate action upon his return • Quest for ‘insanely great products’ restarted • Core Approach: Working intimately with manufacturers and being accustomed to customers • Ensuring there was never a blip in sales Iterative Customer Involvement • Insistent on integrating customer experience into design and development • Participatory Design and usability tests • Belief in the interface to be appropriate for the users to create something • More user testing implies smoother execution Platform Strategy • Clear Platform Strategy: Design the initial product as a platform, so that future enhancements/derivatives are not developed fromscratch • Derivate products can be ramped up much quicker as the platform allows the use of existing design elements • Increases efficiency and re-usability • Products require less repair and maintenance Beautiful Products • Importance of design as a motivation for continued innovation • Illustrated by the iPod being intensely connected to the ‘pristine white’ colour • Paying close attention to new materials and manufacturing processes • Attempt to get ‘bolder’ and not ‘play it safe’
  9. 9. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Infosys Situation Infosys’s core business is providing proprietary or third-party IT business software, mostly to western multinationals, and maintaining it on service contracts. It offers revenues and margins that are stable but often unexciting. In the past few years, Infosys has taken a lot of flack, blamed for distracting the company from its core business at a time of rising costs and disappointing profits. The strategy suffered too from poor timing, launched just as many Infosys customers were trying to cut costs. It seems that Infosys adopted a business Thinking Strategy; the new concept of Vishal Sikka difference as the following below table
  10. 10. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Infosys Situation Design Vs Business Thinking Business Thinking Design Thinking Decisions and plans are made based on logic and historical precedent. A proven, repeatable process that produces reliable results Real, meaningful, and sometimes disruptive, innovation There is a reliable and repeatable process. Informed leaps are based on real potential Results are predictable Questions are actionable Questions are abstract and not Reliable process actionable. Possibilities are limited to the practiced, and results will be incremental. Predictable results
  11. 11. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Recommendations As a final results of running the design thinking processes with all stakeholders , CEO should try to :  Perform detailed survey to seek inputs of the employees, getting their thoughts on the ways to make the company better, while also enabling them to be trained under the concept of design-thinking.  Developing business & IS Strategy  Perform BUSINESS - IT Synchronization  Measuring the value of the current IS outcome.  Search in adopt a First Mover strategy.  Adopt a sustainable approach to Infosys business
  12. 12. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Recommendations  Adopt Critical Success Factors (CSF) Approach & systems audit grid technique  Adopt Quick-deployment strategy .  Perform BPR  Review Infosys Service Level Agreements.  Focusing on User Satisfaction  Configuration Infosys Styles  Adopt global co-ordinator strategy ! Restructuring Internal Activities and External Relationships The next slides describe some of those recommendation ….
  13. 13. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Recommendation: Developing business & IS Strategy Global corporations need to design appropriate strategies to develop and compete in international markets. Infosys must produce a new business and IS Strategy, Starting with value chain model analytical tools to highlights specific activities in Infosys where competitive strategies can be applied and where information systems are most likely to have a strategic impact within Info sys. Studies found that 80% of the global 2000 enterprises fail to merge IT strategy with their business strategy. The purpose of planning should be to check that IT investments meet one of the criteria below in order to become part of Infosys IT strategy:  Improve the firm's cost position  Increase profit opportunities  Create new revenue streams  Enhance the customers' ease of doing business (Lofgren, 2002) Without drawing strong links between business plans and IT, an initiative would receive little or no serious consideration from the fiscal officers and budget planners within the organization. To develop a comprehensive vision of the enterprise, the traditional strategic planning process must be enhanced with a concomitant digital planning process
  14. 14. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Recommendation: BUSINESS-IT SYNCHRONIZATION  To “synchronize” business and IT strategies enterprises need to look for new approaches. To develop a comprehensive vision of the enterprise, the traditional strategic planning process must be enhanced with a concomitant digital planning process, outlining potential business scenarios, their business processes, and technical requirements.  These strategies will have to be developed as a combined effort of all the C-Level officers in static, yearly exercise of project planning for delivery of IT services independent of business strategy.  CIO must involved in the process of business strategy formulation and business managers have provided constantly changing narrow IT requirements.  The key elements of business strategy while dovetailing into the IT strategy should include: statements of vision, objectives or goals, statements binding the range of options for getting there, and the steps to take (initiatives, projects or programs).
  15. 15. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Use Enterprise Evolution Model for business transformation In practice, a methodology for developing a synchronized strategy can be employed using the Enterprise Evolution Model framework. This methodology has 3 phases: Foresight, Insight, and Strategize. Foresight baselines the industry, Insight baselines the enterprise and the Strategize phase helps to develop the synchronous business-IT strategy for co-designing IT strategy as is detailed in the Business Transformation Methodology. The role of the business transformation methodology is to help the stakeholders walk through the various stages of the process that defines the information needs, the stakeholder participation, deliverables and timelines
  16. 16. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Measuring the value of the current IS outcome. By assessing Returns on Infosys IT Investment ROI evaluation can be used to improve the discipline of IT investment, helping to assure that any investment provides positive value to the firm. It calculated as: ROI = Net Benefits/Costs Assessing IT Benefits Examining the benefits that are derived from IT systems deployment, including: Labor savings, Capital expense reduction, Productivity benefits, and Business benefits Assessing IT Costs The case of software projects, hidden costs can be seven times budgeted costs! Peter Keen (1991) Thus Infosys CIO must recognize and review all hidden costs associated with IT projects, Understand and budget for compounding costs and Create a detailed cost chart for all apparent cost categories associated with the IT projects.
  17. 17. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Search in adopt a First Mover strategy. Infosys Must thinking about adopt a new technology and gain a First Mover strategic advantage or wait to be a Second Mover. Each strategy has advantages and disadvantages described in table  First mover Second Mover Advantages If successful, the firm earns above-average returns until other competitors are able to respond effectively. Second movers can take advantage of significant incremental advancements based on the original innovation. First movers can introduce the technology and capture the market. Market research to improve satisfying customer needs Develop customer loyalty Learn from the first mover’s successes and shortcomings Opportunity to set standards Gaining time for R&D to develop a superior product Don’t have to educate consumers Disadvantages High risk Low Risk High development costs, because First Movers bear the costs of initial development, user training, and convincing potential customers of the advantages of their product. Loss of opportunity to establish brand loyalty when the pace of technological evolution is abrupt and the pace of market evolution is abrupt, first mover strategic advantage effects are disabled If significant learning curve through moving first, then giving up competitive advantage Risk of adopting a losing standard
  18. 18. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Adopt Critical Success Factors Approach & Systems audit grid technique Critical Success Factors (CSF) is a methodologies for assisting organizations in both their IS and business planning. CSF method is most widely used in organizations that view their planning exercises from a top-down perspective. Advantages of the CSF Approach:  Alignment of IS strategy  Communication of strategic goals  No excessive amount of resources used Use the Systems Audit Grid Use this technique for making decisions regarding existing IT applications. The methodology relies on creating two judgments of each existing system. How useful is the system to business users? What is the technical condition of the system? Based on these two evaluations, each system is mapped onto a grid as follows. 
  19. 19. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Adopt Quick-deployment strategy Infosys must thinking again with the fees of their services and try to minimize the cost. One possible way is adopting a Quick-deployment strategy for Infosys’s customers instate of reengineering for cost saving & customers satisfaction purpose. Quick-Adoption strategy eliminates the reengineering phase and focuses on a speedy deployment of a standard ES package! It supposed that it is not necessary to fully understand the diversity of existing processes across an organization. It is sufficient to understand the basic functional requirements and then configure the system to match these essential requirements. Figure illustrate the main difference between Reengineering-Led and Quick deployment strategy
  20. 20. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Recommendation: Perform BPR  Assess the current business process and perform the business process engineering at multiple levels, that may produce either limited change in a process or its complete redesign. The role of IT in the business reengineering exercise lies in its ability to enable the redesigned process. IT and BPR can and does impact business by providing companies with opportunities to identify new markets, develop more efficient ways of competing and change the overall way the business is run. Unrelated core business activities Infosys must outsourced to gain below benefits:  More efficient coverage by leveraging locations in different time zones  Focusing on the core processes  Scalability, to ramp up or scale down operations  Access to newer technologies  Improved cost, service and speed benchmarks  Elimination of waste and non-value-added activities  Increased standardization and Increased accuracy  Reduced operating costs  Elimination of process bottlenecks
  21. 21. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Review Infosys Service Level Agreements. Infosys should review their Service Level Agreements & Structure with their customers and vendors and make sure it contain at least the following elements:  Defined, measurable events, tracked through automation, with notification to responsible parties  Definition of products/services  Definition of responsibilities for products/services  Time commitments on service level events  Severity classification for requests  SLA compliance with established service levels  SLA compliance tied to performance measurement
  22. 22. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Focusing on User Satisfaction Establishing a continuous system for measuring end-user satisfaction with IT performance. End users may be internal to the organization or external customers. User satisfaction surveys serve the following objectives:  Assess user expectations  Identify new requirements  Assess the impact of specific improvement programs
  23. 23. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Configuration Infosys Styles While Infosys operating internationally it has to decide how to configure its value-adding activities and their management. There are three configuration styles:  Co-ordinate activities while dispersing  Concentrate an activity such as research and development, in one location and serve the world from there  Disperse, perform an activity in every country or even, in the extreme case, dispersing the entire value chain to every country in which it has a presence
  24. 24. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com Conclusion Design-thinking must be a standard operating procedure for designing products and solving Infosys's client problems. that will take several years of training to institutionalize the approach. However, It is important to examine the role of IT within the overall business planning system of Infosys so that IT can obtain clear guidance as to how it must use its resources to support organizational strategies. It is imperative for an Infosys to create partnership between the business functions and the IT groups. Adopting a formal methodology for IS planning in organization will make the planning outcomes are shared among more organizational departments The IT strategy plan should be dynamics and flexible for any future enhancement, it must be contribute towards a competitive advantage. It must suggest a path for future IT investments and directions, that would build based on the main organization strategy plan and linked to business and Process Improvement. The management support and commitment is very important in approving and executing the IT plan.
  25. 25. By: Monzer Osama AL shaikh warak | Me@MonzerOsama.Com References  “The Road to Innovation - Design Thinking and Lean Development at SAP”, By: Tobias Hildenbrand, Jul 21, 2013  “Design Thinking Simplified”, By: Kristin Johnson, Feb 09, 2012  “Design Thinking and Innovation at Apple”, By: STEFAN THOMKE & BARBARA FEINBERG, Harvard College. MAY 2012  "Infosys’s EdgeVerve: setting the strategy straight?", By: Avantika Chilkoti, The Financial Times Ltd, Jul 23, 2014 http://blogs.ft.com/beyond-brics/2014/07/23/infosyss-edgeverve-setting-the-strategy-straight/  “The changing role of IT strategy. Enterprise Planning and Architecture strategies META Delta”, By: Bjorn Tuft, META Group Research, 19 December 2000  "Co-designing IT Strategy for Enterprise Growth and Agility", By: By Manjunatha Kukkuru, Infosys Research  Design Thinking as a Strategy for Innovation, Creativity at Work Blog, URL:http://www.creativityatwork.com/design-thinking-strategy-for-innovation/  Business Process Re-engineering Solutions, Data Mark, http://www.datamark.net/solutions/business-process-outsourcing-solutions/business-process- re-engineering-solutions  Analyzing Different Strategies to Enterprise System Adoption: Reengineering-Led vs. Quick-Deployment", By:Sue Newell and others,IDEA GROUP PUBLISHING,  Segment 2: Strategic Systems, Value Chain Analysis References from Information System Strategy material( 702-1406-1 ) :  Segment 3: IT & Reengineering, Introduction  Segment 3: IT & Reengineering, IT and BPR  Segment 5: IT Evaluation, Evaluating IT, Assessing Returns on IT Investment  Segment 5: IT Evaluation, Assessing IT Benefits  Segment 5: IT Evaluation, Assessing IT Costs  Segment 5: IT Evaluation, Complementary Techniques, Service Level Agreements  Segment 5: IT Evaluation, Complementary Techniques, User Satisfaction  Segment 2: Strategic Systems, Value Chain Analysis  Segment 6: Global IT, Understanding Global IT Issues,  Segment 4: IT Planning, Planning Methodologies, A CSF Approach to IS Planning  Infosys and Apple are a registered trademark

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