ITES HR Forum

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Dr. Ganesh Natarajan, Chair, NASSCOM Innovation
Forum 5th December, 05 - Hyderabad
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What exactly is Innovation ?

• Change that creates a new dimension of
  performance Peter Drucker
• The profitable implementation of strategic
  creativity Elaine Dundon
• In order for something to qualify as a true
  innovation, it should simultaneously meet three
  basic criteria. It must
• Engage a creative process
• Be distinctive
• Yield a measurable impact
• Eric Chen and Kathryn Kai-Ling Ho Capgemini
  Center for Business Innovation
• Innovation Big Idea Eraser mania,
  Michelangelos all, Organizers not employers,
  Beautiful Systems, Branding mania, Talent based
  enterprise, Design is it!, Great service, passion
  Tom Peters, Circle of Innovation

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• Is the Indian IT services and BPO industry
  becoming a commoditized sector can innovation
  make a difference

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The Innovation ImperativeIT

• Commoditization of IT
• ITs power is outstripping most of the business
  needs it fulfills
• The price of essential IT functionality has
  dropped to the point where it is more or less
  affordable to all
• The capacity of the universal distribution
  network (the Internet) has caught up with demand,
  we already have considerably more fiber-optic
  capacity than we need
• 2. Ease of implementation
• Vanilla IT implementation becoming increasingly
  tool driven and less technical (less technology
  skill dependent and more functional expertise
  dependent)
• 3. India Advantage of cost arbitrage to Indian
  IT services firms being eroded

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Key Challenges

• Flight to Scale
• Galloping Manpower Costs
• Increasing investments in Infrastructure
• Customer Retention
• Customer Acquisition
• People Retention.

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Areas of value-add in the BPO sector

• Innovative ideas on how to enhance operations,
  reduce operation costs, improve IT performance
  and streamline processes as part of their normal
  expectations
• Provide new technologies and intellectual
  property that would enhance business processes,
  especially for BPO
• Provide innovation in business models, such as
  carve-outs or joint ventures
• Have payment plans based on project outcomes and
  business performance (for example, increases in
  profitability or reduction on claims processing
  costs) that benefit for both parties
• Innovative retention strategies in BPO
• Innovative client-based partnerships

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Innovation forum Key Objectives

• To honor the Indian IT companies who have
  injected innovation into existing know-how and
  have come up with new ideas, products, processes
  or technologies that enable the business to
  achieve higher margins and thus profits to
  re-invest in the business.
• NASSCOM is searching for excellence and
  innovation from the emerging company segment
• NASSCOM will identify these emerging companies,
  assess their business models, their focus areas
  and specializations and provide them with a
  platform where they can talk about their
  achievements

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Activities done in FY 05

• Showcased 6 companies 04 finalists at the
  NASSCOM 2005 India Leadership Forum
• Mentoring offered by Industry leaders to the
  Finalists companies
• Innovative companies delegation was taken to
  Australia to explore partnerships with Australian
  companies
• Brainstorming sessions with focused groups in
  Delhi, Pune Bangalore

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Activities done in FY 05 (contd)

• Formed a sub-committee on
• Innovation in RD
• Innovation in IT Services
• Innovation in BPO
• IT Innovation Roadshows executed
• IT Innovation in IT Services BPO Delhi,
  Mumbai Hyderabad
• IT Innovation in RD Bangalore
• IT Innovation in India Chennai

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Key features - Methodology

• Nominations were invited from Indian IT companies
  which feel that their work is worthy of
  recognition.
• Entries were invited in the following categories
• Products/IPR, Services, ITES-BPO, RD
• Company size lt than 50 crores, 50-100 crores
  and gtthan 100 crores
• Roll out
• Mailer to members
• Telemarketing
• Mailing to Non-member databases
• Ad in Economic Times

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AD in Economic Times
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Criterion for short listing the Emerging
Innovative companies

• Original IP Creation
• Install base for Products
• Revenue from IP
• Potential of the IP

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Responses from All India

• 136 companies participated in the Innovation
  Awards 2005
• Bangalore 36
• NCR - 27
• Mumbai/Pune 25
• Chennai 16
• Hyderabad -14
• Rest of India -18

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• Shortlisted 20 companies from all over India in
  the Emerging Category are

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Emerging Companies Showcase

• Pune 21st November 05
• AccelTree Software Private Limited Pune
• Jopasana Software Systems Pvt Ltd - Pune
• Micro Technologies (India) Ltd Mumbai
• rapidEffect (p) Ltd Pune
• SoftDEL Systems Ltd - Mumbai 

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Emerging Companies Showcase

• Bangalore 28th November 05
• CG-Smith Software Pvt Limited Bangalore
• Bangalore Softsell Bangalore
• Encore Software Limited Bangalore
• Skelta Software Bangalore
• Subex Systems Limited - Bangalore
•  

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Emerging Companies Showcase

• Hyderabad 5th December 05
• Java Softech Pvt Ltd Hyderabad
• Midas Communication Technologies Pvt Ltd -
  Chennai
• Ocimum Biosolutions Limited Hyderabad
• SatNav Technologies Pvt Ltd Hyderabad
• YASU Technologies Pvt Ltd - Hyderabad
•  

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Emerging Companies Showcase

• Delhi 9th December 05
• All India Society for Electronics and Computer
  Technology (AISECT) Bhopal
• CASH-Tech Solutions Pune
• Intellicus Technologies Inc Noida
• Kiami Softwares Private Limited - New Delhi
• Wifin Technologies (India) Private Limited -
  Coimbatore 

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Innovation in the Large companies shortlist

• 6 companies to be shortlisted in the Large
  company group which will be showcased at 22nd
  January 06 in Mumbai

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Panel Members

• Ganesh Natarajan CEO, Zensar Technologies
  Chair - Innovation forum
• Dr. Bob Hoekstra, CEO, Philips Software Centre
  Co-Chair NASSCOM Innovation forum
• Anil Bakht, Chairman MD, Eastern Software
  Systems
• Kiranbir Nag - Partner, SVB India Advisors
  Private Ltd
• Sanjay Anandram Founding Partner, JumpStartup
• Prof. S. Sadagopan Director, IIIT, Bangalore
• Armaan Zand, - Partner, SVB India Advisors
  Private Ltd

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Going Forward

• Shortlisted companies will be profiled on the
  NASSCOM web site, Newsletters, etc
• 6 shortlisted companies all over India will get
  an opportunity to present at NASSCOM 2006-India
  Leadership forum in Mumbai
• VC and Industry mentoring will be offered to
  shortlisted companies.
• Mentoring will also be provided by academia

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Going Forward (contd)

• Wide Media coverage
• We will continue to support and shortlist
  emerging companies and offer visibility
• Innovative companies to be featured in the IT
  Innovation booklet which will be launched at
  NASSCOM 2006-India Leadership forum in Mumbai
• Finalists to be awarded at the NASSCOM 2006-India
  Leadership forum in Mumbai
• Tie-up with Intel, Microsoft to do focused
  activities

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• How do you build a culture of innovation

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Innovation FactoryInnovation Factory
Innovation Culture Innovation System

• INNOVATION CULTURE A set of values and
  behavioral factors that are designed to bring out
  the tremendous curiosity, creativity and human
  urge to experiment and improve things. It ensures
  collaboration, team work, and motivation
• INNOVATION SYSTEM An integrated set of
  processes, policies and tools that link corporate
  strategy to new sources of value (products,
  services and processes) in order to create
  sustainable competitive advantage

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• Building organization wide innovation culture
  will be the only sustainable growth strategy of
  the future, any success NOT driven by
  organizational innovation capacity will either be
  a lucky coincidence or a temporary arbitrage
  opportunity
• MACROCULTURE
• MICROCULTURE  
• The real work of innovation is in the
  transformation of culture

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Seven Myths of Innovation
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• Innovation Because the best wayto predict
  the future
• Is to invent it !
• ganeshn_at_zensar.com