Are services companies going insane? Berkeley Innovator_20060208_vf_Pratt Copyright © 2006 by Infosys Consulting, Inc.

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Presentation transcript:

Are services companies going insane? Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc.

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. “Insanity: doing the same thing over and over again and expecting different results.” Albert Einstein, (attributed) US (German-born) physicist ( ) Source: Quotationspage.com

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc Inflection points of Services Companies Adapted from an original illustration, F. Clark Howell, Early Man (New York: Time-Life Books, 1968),

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. Maybe we’re not going insane. Maybe we just need a new model.

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc Fourth inflection point of Services Companies Adapted from an original illustration, F. Clark Howell, Early Man (New York: Time-Life Books, 1968),

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. The business world abuzz about Globalization, Global Talent, Flat World, China, India.

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. What is the Flat World? Traditional barriers diminished Hierarchies less important Information asymmetries minimized Consumer comfort with technology Ubiquitous access to technology Opening of emerging economies Structural shifts in global demographics

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. Big New Markets GDP of emerging countries growing as a % of World GDP China India Country GDP as % of World GDP Eastern Europe Russia Sources: UN World Investment Report 2005; Forbes Magazine 2005, 2006; Infosys analysis Growing % of companies in Forbes Global 2000 from emerging economies

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. Labor Force Necessity Aging workforce in developed countries China India USA Germany Working population as % of total population (ages 20-64) Sources: U.S. Census Bureau International Database ( McKinsey Global Institute; Infosys analysis Annual Number of engineering graduates (thousands) Talent pool and customers Median age of citizen/customer

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. Connecting Technologies Rapidly declining technology costs Internet usage penetration World ave. Sources: A.G. Edwards 2006; Infosys analysis Developing countries catching up in technology usage

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. How to Win in a Flat World.

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. How to win as a services company… Loyalty through good service Loyalty through faster innovation Spending money on information Making money from information Dread the “China Price”Be the “China Price” Winning in the straightwayWinning in the turns SHIFT FROM SHIFT TO

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. Consulting Profession Skeptics Rebels vs.

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. He get’s the Executive of the week parking spot.

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc.

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. Consulting profession as a case study.

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. Management Consulting Firms Advisors Business Experts On-site - High Cost High Quality Ideas Management Consulting Firms Advisors Business Experts On-site - High Cost High Quality Ideas Systems Integrators Do-ers IT Experts On-site - High Cost High Quality Project Mgmt. Systems Integrators Do-ers IT Experts On-site - High Cost High Quality Project Mgmt. Off-Shore Software Engineers Do-ers IT Experts Off-site - Low Cost High Quality Technology Off-Shore Software Engineers Do-ers IT Experts Off-site - Low Cost High Quality Technology New Business Consulting Firm Advisors + Do-ers Business + IT experts On-site + Off-site High Quality Business Results Lower Cost New Business Consulting Firm Advisors + Do-ers Business + IT experts On-site + Off-site High Quality Business Results Lower Cost Old Model New Model

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. Infosys competing as a flat world leader. 24 months ago 25,000 25% $15B Today 60,000 26% $26B

Berkeley Innovator_ _vf_Pratt Copyright © 2006 by Infosys Consulting, Inc. Think Flat. Questions, please. Stephen Pratt CEO & Managing Director Infosys Consulting, Inc.