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Viewpoint :: Strategy
Do managers influence technological progress?
Is technological progress in an industry largely random and a function of external shocks? Or do entrepreneurs and managers have a role to play in conceiving, defining and implementing specific roadmaps for competitive advantage?
These are questions that have been the subject of management debate for many years. Professor Deepak Kumar Sinha and his co-author have studied the Indian and US sugar industries and make interesting observations relevant to this debate.
Viewpoint :: Strategy
Is Open Source Software right for your business?
Information technology (IT) has become a critical business enabler for companies of all sizes. However, the direct costs of software and hardware and other IT costs such as security, training and upgradation pose a challenge to the same businesses. The rise of Free and Open Source Software (FOSS) appears to address these very concerns. Does FOSS provide tangible economic benefits to organizations? Should you adopt FOSS in your business and how can the economic benefit of FOSS be measured?
Professor Rahul De of IIMB has studied the adoption of FOSS by 20 small and large Indian firms and quantified the economic benefits they've derived. Read about his findings here.
Insight :: Strategy
Do R&D investments increase sales?
Are large and risky R&D investments in technology intensive industries worth the top-line growth, if any? Is the reputation and success of Indian pharmaceutical firms a result of being fast followers and churning out bulk drug, or is their investment in R&D bearing fruit? If so, are there lessons in R&D investments for other technology firms in India?
Professor U Dinesh Kumar of IIMB has studied the impact of R&D investments made by a large number of Indian pharmaceutical firms in the decade since 1998. To read about his findings and answers to many of these questions, click here.
Insight :: Strategy
Can we replicate the success of the software services industry?
The arrival of a globally competitive Indian software services industry is a major contributor to the rise of the Indian economy. Can other Indian industries and firms learn from this and replicate this success? How vulnerable is the Indian software services industry to competition from other countries that seek to catch-up or surpass India? How real a threat is this? What are the factors that aid such a catch-up process?
Professor Rishikesha T. Krishnan and Swarna Kumar Vallabhaneni of IIMB have studied the rise of the Indian software services industry and propose a model that provides an integrated view of the catch-up process and offer a fresh perspective for companies, industries or countries hoping to execute such a catch-up.
Insight :: Strategy
Achieving non-linear growth in IT services
The average revenue per employee at large Indian IT services firm has largely stayed flat over the past decade. An employee at a top IT services firm – such as TCS, Infosys and Wipro - brought in about Rs 2.5 million per year in FY 2000 - 01. This figure stood at around Rs 2.0 million in FY 2007-08. Admittedly, revenue at these firms has grown constantly over these years. However, an increase in revenue has been accompanied by a larger increase in headcount - the curse of the linearity model pursued by these very successful firms in the past.
It is only too clear for the management at these firms that what worked in the past, will not work in the future. But is there a way out? Are there lessons within the IT services industry that these goliaths can learn from and emulate? Professor DVR Seshadri in an interview with Chandran Sankaran, founder and CEO of Zyme Solutions, uncovers insights that may potentially help other companies break from their past.