B V R Mohan Reddy, Chairman and Managing Director, Infotech Enterprises

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Information about B V R Mohan Reddy, Chairman and Managing Director, Infotech Enterprises
Technology

Published on February 12, 2009

Author: nasscom

Source: slideshare.net

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NASSCOM: India leadership Forum 2009,Day2, Session 10A: Building a differentiator around design – developments and opportunities in research and engineering services, B V R Mohan Reddy, Chairman and Managing Director, Infotech Enterprises

Building a differentiator around design BVR Mohan Reddy Chairman & Managing Director Infotech Enterprises Limited Feb 12, 2009

As a result of all of this, proposition of ESO is expected to shift – ‘ Cost’ to ‘Value’ 2006 2010 - 2015 Overall Offshoring Value Drivers Across Study Sectors (2006 – 2015) Lower cost will be less of a main driver in time (96% for 2005; 70% for 2010-2015) % of Respondents

While R&D spend will grow, this spend will be under pressure to produce increasing returns Top-line growth Return on R&D investment Product Development speed & efficiency Higher margin / higher value products and services Strategic Drivers Universal pressure to… Reduce cost Strategic imperatives to… Get access to high quality talent and capabilities Cut time-to-market Increase productivity Grow engineering capacity Tactical opportunities to… Get access to new markets Provide direct support to customers and end users Exploit government incentives

Top-line growth

Return on R&D investment

Product Development speed & efficiency

Higher margin / higher value products and services

Reduce cost

Get access to high quality talent and capabilities

Cut time-to-market

Increase productivity

Grow engineering capacity

Get access to new markets

Provide direct support to customers and end users

Exploit government incentives

Prouct development is emerging as a primary target for off-shoring Increasing capacity in functions such as R&D, product design R&D has become much more international within the last 10 years Today only 1/3 of all R&D sites are located in the home country Offshoring of critical functions such as product development is now at the top of the agenda of most corporations Leading companies across the globe are aiming for an optimal innovation foot print Spearheaded by entire ecosystem of suppliers, partners Electronics (high-tech / telecom) and Automotive sectors lead the charge and other industries are fast catching Engineering offshoring is about expanding global innovation capacity Globalization of Product Development

Prouct development is emerging as a primary target for off-shoring

Increasing capacity in functions such as R&D, product design

R&D has become much more international within the last 10 years

Today only 1/3 of all R&D sites are located in the home country

Offshoring of critical functions such as product development is now at the top of the agenda of most corporations

Leading companies across the globe are aiming for an optimal innovation foot print

Spearheaded by entire ecosystem of suppliers, partners

Electronics (high-tech / telecom) and Automotive sectors lead the charge and other industries are fast catching

Engineering offshoring is about expanding global innovation capacity

ESO is used as a strategic tool to manage workload issues and cut down cycle times Headcount Work overload managed through offshore resources Actual Work Load Profile Planned Work Load Profile Customer faced major design changes in late Product Development stages — resulting work overload was managed though offshore resources

Differentiated design – using knowledge based engineering Improves engineering efficiency – Realize more or free-up resources - $50 Mil savings over the program life cycle Ensures that all work is based on codified proven practices, analytical tools, empirical tests & methods Standardizes across the eco system (in-house, Tier-1/2/3s, outsourcing vendors, mfg locations) Design process Design methodologies Design criterion Design standards Prevents corporate “amnesia” thus providing a solid base for innovation Component E Component F System I – 40% cycle time reduction Component A Component B Component C Component D 5 Before After

Improves engineering efficiency – Realize more or free-up resources - $50 Mil savings over the program life cycle

Ensures that all work is based on codified proven practices, analytical tools, empirical tests & methods

Standardizes across the eco system (in-house, Tier-1/2/3s, outsourcing vendors, mfg locations)

Design process

Design methodologies

Design criterion

Design standards

Prevents corporate “amnesia” thus providing a solid base for innovation

‘ Cost’ to ‘Value’ – A Case study Discrete projects Ramp up, learning and transition Mechanical Analysis Mechanical Modeling Dynamic Analysis (e.g., Vibration) Aero Design Development of software tools for productivity improvements Process outsourcing (aftermarket/ repair service activities) Performance analysis of engines Design of subsystems e.g., combustors, oil pumps Product improvement projects (Vendor included in Integrated Product teams) Process Innovation Creation of standard tool for work sharing with vendor Value stream mapping to identify process inefficiencies Complete end-to-end Product Development projects Optimization of Design process, dynamic collaboration Value added services e.g., product cost reduction & knowledge process management Leverage partnership for reduced design cost & time for new product programs Increasing Complexity Year 1 Year 2&3 Year 4&5 Year 5 & Beyond Set-up Phase Consolidation Optimized Mode Value-add & Process Innovation

Discrete projects

Ramp up, learning and transition

Mechanical Analysis

Mechanical Modeling

Dynamic Analysis (e.g., Vibration)

Aero Design

Development of software tools for productivity improvements

Process outsourcing (aftermarket/ repair service activities)

Performance analysis of engines

Design of subsystems e.g., combustors, oil pumps

Product improvement projects (Vendor included in Integrated Product teams)

Process Innovation

Creation of standard tool for work sharing with vendor

Value stream mapping to identify process inefficiencies

Complete end-to-end Product Development projects

Optimization of Design process, dynamic collaboration

Value added services e.g., product cost reduction & knowledge process management

Leverage partnership for reduced design cost & time for new product programs

Thank You

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