A National Level Case Study Competition

SHREE CHANAKYA EDUCATION

SOCIETY’S

INDIRA INSTITUTE OF

MANAGEMENT

PUNE

CURIOUS 2018

A National Level Case Study Competition

Case Author- Prof. Dipanjay Bhalerao, Assistant Professor, IIMP

Growth Roadmap of Redivivus Technologies Pvt. Ltd.

Govinda Mahajan, MD of Redivivus Technologies Pvt Ltd, was very excited on performance of year

2015, but got upset with a few setbacks in the start of this financial year 2016. He lost few deals to bigger

players in the field of IT solutions for Industrial automation. Since the company was entering in the

growth stage after more than 6 years of its start, this was not good news for Govinda, who always

believed in developing high quality solutions for its customers. Then the twist came to his story with

some new orders and for new IT solutions (beyond its present portfolio of mere printing automation

solutions). With all the difficulty Redivivus Technologies managed to successfully develop the new IT

solution for the Automation in the warehouse and manufacturing verticals. Govinda was pondering

whether to continue with the current products portfolio or to increase the new ones in the existing product

portfolio. He decided to call for an urgent team meeting to discuss about developing business strategy for

the growth of Redivivus Technologies with differentiated positioning. The current business situations

made Govinda to strategize about developing a robust business model for Redivivus Technologies.

Govinda was clear with his mandate to build a business strategy blueprint that would put Redivivus

Technologies on a sustainable growth roadmap.

Business Background of Redivivus:

Established in 2010 by a technocrat Govinda Mahajan1, Redivivus Technologies catered its customers

from technology & manufacturing products to enhance their business productivity to next level through

its IT solutions for automation. Govinda, in spite of his rural background, always wanted to leverage his

technical capabilities to realize his entrepreneurial dream of starting a technology company. Envisioning

the growing technology impact on the manufacturing and various other sectors, Govinda knew that the

automation was the gateway of growth, not only for the Big Original Equipment Manufacturers (OEMs),

but also the growing Small Medium Enterprises (SMEs) in India and across the globe. Customer base of

Redivivus comprised of small and midsized product companies ranging from startup organizations to

established organizations. These organizations always wanted to create competitive advantage by building

unique IT automation enabled operational model. Redivivus provided technology solutions with the best

quality, driven by innovation and by inclusive and collaborative understanding of business needs for the

customer organizations for developing IT automation solutions2.

1A. Govinda Mahajan was the first generation Technocrat t and entrepreneur who wanted to create fortunes in the IT industry. B. http://iimpcijbr.com/index.php/cijbr/article/view/114331/79496 Accessed on 23.10.2017 2 Govinda considered this as the major competitive advantage of his team.

http://iimpcijbr.com/index.php/cijbr/article/view/114331/79496


Redivivus had business operations in following major areas of services:

(Source: www.redivs.com)

Over the last few years, Redivivus had successfully built and sold many technology products with its

various OEM partners with strategic focus on customization.

The Founder’s vision about the organization3:

According to Govinda Mahajan “Technological problem identification, its analysis and resolution was

often a difficult and tedious task to achieve for many business firms and Redivivus team’s experience and

expertise in various domain provides solution to overcome these difficulties.”

Mr. Govinda Mahajan says –

“We co-work with our partner & client to identify & resolve the problems within their business process &

technology scope considering various approaches not limited to

1. Defining task & problems.

2. Identifying depth of task and its quantification.

3. Analysis of task and its multiple solutions to choose best one.

4. Implementing the solutions.

5. Further process and maintenance.” (Source: www.redivs.com)

Mr. Govinda had always put the vision in the minds of his young team-

“With the help of our experience, expertise and knowledge on different platforms & system & strong

exposure, we provide solutions not only software”4

Service Bucket of Redivivus Technologies to its customers consisted of end-to-end business automation

solutions, open source operated IT solutions and customized solutions. (Refer Exhibit 6)

Indian Information Technology Industry Scenario:

The Information Technology (IT) & Information Technology enabled Services (ITeS) industry was one of

the major contributor in India's economic growth. IT industry had not only transformed India's image on

the global platform, but also fuelled economic growth of India. Indian IT industry had helped the MNC IT

giants &the manufacturing companies to control their operating costs in its IT and automation initiatives

to smoothen the operational excellence across the sector. Furthermore, MNC and Indian organizations,

across all other sectors, were enabled by the IT & ITeS service providers to make their business processes

cost efficient and Lean. The Major IT business user sector was Indian manufacturing sector with the

highest IT spending followed by automotive, chemicals and consumer products industries. Indian

organizations were taking help for enabling its operations by IT to help them grow business in the current

3 http://iimpcijbr.com/index.php/cijbr/article/view/114331/79496 accessed on 23.10.2017 4A. http://www.redivs.com/redivs/consultacy accessed on 23.10.2017, accessed on 23.10.2017 B. http://iimpcijbr.com/index.php/cijbr/article/view/114331/79496, accessed on 23.10.2017

Redivivus Technologies

Pvt Ltd

Embebed Application

Development

Mfg & Process

Automation

Mobility Development

Image Processing

http://www.redivs.com/


http://www.redivs.com/redivs/consultacy%20accessed%20on%2023.10.2017



economic environment. The Indian companies needed the edge of the IT and IT automation enabled

operational excellence to compete in the cut throat global competition across the industry sectors5

Market size of the Indian IT & BPM industry:

IT industry size Grew from USD 130 billion to USD 154 billion

GDP contribution to India 7.7 % in 2016

Top IT Players TCS, Infosys, Wipro contributing 25 % of the Industry sales

Domestic IT Sales USD38 billion FY 17

Export IT sales USD 117 billion FY17

Expected growth of Indian IT 12-14 % to reach up to USD 350 billion by 2025

(Refer Exhibit 2&3)

Growth of Automation Industry:

According to Transparency Market Research the Global Industrial Automation Sector of USD 182.4

billion is posed to grow up to USD 352 billion by 2024 at the CAGR of 6.6%6

The organizational need of optimizing the overall operational cost and lean processes for end-users were

the main catalyst of the automation industry growth. The increasing demand was seen across the

developed as well as emerging economies. The only challenge to this industry was of heavy initial

investment required to execute the automation projects across any industry. But as a result of high ROIs

from these automation projects, the organizations had seen sea change in their business fortunes. The key

automation players in the automation industry were ABB Ltd., Honeywell International Inc., Rockwell

Automation Inc., and Siemens AG7

Starting phase of marketing of Redivivus:

The initial marketing of Redivivus Technologies was led by one man’s show orchestrated by Govinda

Mahajan, since he was the founder. Fuelled with passion to grow in this market, he added couple of team

members for the IT software development. But still the marketing department was more of sales

department where the cold calling and heavy market working was the base of lead generation. The

organization team approached in the market without the strategic intent & any specific IT solution

product in the start. It was the automation IT solution field where they cracked their first order and then

onwards Redivivus found this to be a potential market for them. Redivivus focused on providing excellent

and consistent after sales service, which was the major reason for their first year success in 2010. In spite

of the sluggish market conditions during first two years, the company never compromised on quality and

service to the clients.8 (Refer Exhibit 5)

5 IBEF report 2017 6 https://www.transparencymarketresearch.com/pressrelease/industrial-automation-market.htm accessed on 23.10.2017 7 Based on information from RTPL and http://iimpcijbr.com/index.php/cijbr/article/view/114331/79496 accessed on 23.10.2017 8 Based insights from Interview with Govinda Mahajan, MD, RTPL

https://www.transparencymarketresearch.com/pressrelease/industrial-automation-market.htm



Current phase of Marketing of Redivivus:

The Automation IT industry is driven by two major types of vendors i.e. one was automation hardware

vendor (Automation OEM) and the Software vendor for running the automation hardware of machines.

Redivivus Technologies is positioned as the software provider in the industry. Automation hardware

contributed the major pie of the total automation budget of the customer as compared to the automation

IT solution for the same. Looking at this business dynamics of the current automation industry in India,

Redivivus Technologies had decided to go initially with the automation OEMs to get the footprints in the

automation IT solution industry. Major part of the revenue of their business comes from the tie-ups they

make with the automation OEMs largely in Maharashtra state market. In the recent past the industry had

witnessed a new trend of the Automation OEMs offering the IT solution services.9(Refer Exhibit 5& 10)

Govinda many times emphasized the critical importance of building an end-to-end automation solution

provider business model, that would incorporate all the forward and backward business integration

needed.

How Marketing Channel works at Redivivus:

Source: Author Creation based on Data from Redivivus Technologies Pvt Ltd

Current Business Model of RTPL: (Refer Exhibit 8)

Source: Author Creation based on Data from RTPL

9 A. Based on the Interview with Govinda Mahajan, MD RTPL and B. http://iimpcijbr.com/index.php/cijbr/article/view/114331/79496 accessed on 23.10.2017

Redivivus

Automation IT Solution

OEM

Automation Machine H/W

Customer

Redivivus IT

Team

IT Vendors

Customers

Redivivus

Technologies

Private ltd

IT

Re

ven

ue

IT

Revenue IT Investment

Automation

OEMs



Major Competitors10

:

Source: Author Creation based on Data from RTPL (Refer Exhibit 4) & RTPL website

Business Challenges of Redivivus:

The company was not able to reach out to many new customers, since it was wholly dependent on the

OEM tie-ups for the automation IT business. The company used to develop IT solution after getting the

leads from either from the OEMs or customers (Refer Exhibit7). In last 6 years since its inception it has

got into three new service areas for different sectors. The company started with printing solutions for

pharmaceutical sector, followed by inspection solution for manufacturing sector and now developing

process automation solutions for FMCG sector11 to substantially increase its service portfolio. Redivivus

could now approach customers with a wide service mix of solutions. Recently it lost few orders at the last

stage of deal closing, may be due to lack of knowing the changing nerves of customer needs. (Refer

exhibit 10) Govinda had firmly started thinking about organizing the company’s marketing practices.

Looking at these challenges, the Redivivus founder had to develop strategy for spearheading his company

by addressing following challenges-

1. Mapping of the potential markets for business

2. Building a differentiated and strong business portfolio

3. Building an organization with required competencies

4. Evolving from the business model of automation IT solution provider in to end-to-end-

automation solution provider model

10 http://iimpcijbr.com/index.php/cijbr/article/view/114331/79496 accessed on 23.10.2017 11 Based on the Interview with Govinda Mahajan, MD, RTPL

Redivivus

Siemens

ACG

Honeywell

Rockwell

PROPIX

PARI



Building business strategy for charting growth roadmap of Redivivus:

After the end of the financial year 2015-16, the founder of Redivivus and the consultant along with the

whole team of Redivivus were discussing the available alternatives. The crux of the discussion was

pointing at following alternatives12.

Challenges of markets development strategic alternatives

Sector wise, Business Usage wise, Demographic basis and some management team members also

suggested geography basis for understanding (Refer Exhibit 11 & 12). Some Management team members

were of the opinion of targeting through the OEM tie-ups but some were in favour of directly targeting

the customers. (Refer Exhibit 13). Most employees including the founder were giving nodes for opting

strategy of low cost IT Solution provider. But some of the team members were in favor of differentiating

strategy the business offering in the market for gaining quick footprints in the market. (Refer Exhibit 14)

Challenges of building a strategic business model:

Redivivus Technologies, being a start-up organization, had the opportunity to grow with innovative and

challenging business strategy. The organizational business model had to be robust enough for

withstanding the tough competition in national as well as global market. Govinda needed to think whether

to continue with the current software solution focused model or to evolve into an end-to-end automation

solution model. (Refer Exhibit 15)

Govinda had to adopt the best suggestions from the business strategy alternatives available. Mr. Govinda

was quite sure of taking his company to new heights in the coming years. The best business strategy was

needed for “Redefining–Redivivus Technologies” since the name itself stood for reviving or

redefining.13

Please help Govinda to workout market development strategies and a strategic business model (as

mentioned above) to put Redivivus Technologies on the Growth Roadmap. What should be the strategic

blueprint of Govinda for Redivivus Technologies Pvt Ltd?

12 Based on the brain storming sessions and meetings with Govinda Mahajan, MD, RTPL 13 RTPL MD- Govinda Mahajan’s Future strategic thinking insights in the interview.


Exhibit 1

Source: IBEF (India Brand Equity Foundation) report 2017

Exhibit 2

IT Industry Break up of India

Source: IBEF (India Brand Equity Foundation), 2017

Exhibit 3- IT Exports

Source: IBEF (India Brand Equity Foundation) 2017


Exhibit 4-Major Competitors

Printing

Automation

Propix Nice Label Maharshi

Image

Processing

ACG Propix Jekson Vision

Manufacturing

Automation

PARI Propix Rockwell Siemens

/Honeywell

Warehousing

Automation

PARI Wonderware Rockwell Siemens

/Honeywell Source: Author Creation based on Data from RTPL, www.redivs.com

Exhibit 5-Redivivus Milestones

Year Milestones

2010 Establishment of the Company

2011 Market Entry with Printing Solutions IT Automation

2012 Tie up with Automation hardware companies for supply of Automation software

2013 Entering into Packaging Inspection automation Software solutions

2014 Entry in to Manufacturing automation IT solutions.

2014 Expansion of the team from 8 to 15 people.

2015 Integrated automation solutions partnership with smaller H/W providers

2016 Developed ERP for Pune based SME


Exhibit 6-Automation IT Solutions Services of Redivivus Technologies

Sr.

No

Service Type Service Objective Existing Customers Segments

1 Printing

Automation

Automation for printing various tags or important information on the final

production the assembly.

Pharma, Cement ,FMCG, Glass & Pipes, Automobiles

2 Inspection

Automation

Automation for the inspection of

packaging or printing defects on the final product

Pharma, Automobiles, FMCG

3 Image

Processing

Automation for the Quality Inspection. Pharma

4 Manufacturing

Automation

Process Automation FMCG


http://www.redivs.com/


Exhibit 7-Projects completed by Redivivus Technologies Pvt Ltd

As of now we have successfully developed multiple image processing and automation applications with

our various OEM partners. Our successful products currently running in market with one of our OEM

partners likeKES, control print & Propix Technology includes

1. PACKI TRACKnTRACE:-This is a printing & inspection system designed & developed as per GS1

& DGFT with CFR norms exclusively designed for pharma industry.

2.CODEMAT:-This is a Multi Camera multi code reading system. This application works with multiple cameras (8 tested live) and operates simultaneously.

3.DATA MANAGEMENT SYSTEM:-An application to manage data of multiple clients and stored this

at central location.

4.iPRINT: - A multilevel batch coding & printing system for products and logistic entities.

5.eTRACK: -A multi-level scalable printing & inspection system provides truly plug and play hardware

with Multi Deck Parent Child Relationship on various logistic levels of products.

Above products are running successfully across various companies such as –

Novartis (Chiron Behring Vaccines Private Limited) Ankaleshwar, Gujrat

Johnson & Johnson at various plants in Aurangabad, Baddi, Mumbai

Granules Ltd., Hyderabad

Wockhardt Ltd, India

Rusan Pharma, Centaur Pharma, etc.

Gold Plus Glass Industry Ltd. Roorkee, Uttarakhand

SAIL RSP, Rourkela

Borosil Glass Works Ltd, Ankaleshwar, Gujrat

Reliance Cement Industries

Maharashtra Hybrid Seeds Co. Ltd, Jalna, Aurangabad, Maharashtra

ECL, Kolkata

Baxter (India) Private Limited, Aurangabad, Maharashtra

Zota Health Care Ltd, Surat, Gujrat

Piaggio Vehicles Pvt Ltd, Pune, Maharashtra

Nilon’s Enterprises, Jalgaon/Pune, Maharashtra

Adinath Agro Industries, Pune, Maharashtra

Redivivus worked with other OEMs to bring various products. Also the company planned to launch our own product of printing automation solution for pharma, food, FMCG & other industries.



Exhibit 8-IT Capabilities of Redivivus

Current IT Capabilities of the Company

IT team -8 people

Infrastructure: Own office in Pune and 8 computers, inspection & Automation HW equipped lab.

Automation OEM Tie-ups- Three

R&D Capability- Excellent at New product Development developed for various sectors.


Exhibit 9-Redivivus Technologies Sales Growth:

Source: Data from RTPL

Exhibit 10-Customers’ needs of Automation IT solutions

Customer Preferences Mean Score (Ratings 0-10)

Customization- 8.5

Consolidated Services 7.5

After Sales Service 8.7

Innovation in Services 5.0

Brand image of the Company 6.5

Technical capabilities 7.0

Source: Author Creation based on Survey for RTPL

Score Calculation Methodology: The scores are ratings on the scale of 0-10 given by the key customers

as a part of study done to understand the customer needs while buying the IT Automation services.

0.55

1.24

2.67

3.65

5.1 5.24.9

2010 2011 2012 2013 2014 2015 2016

Sales Rs Million

Sales


Exhibit 11-DAMP Analysis for selection of Segmentation basis (Ratings on 0-10 scale)

Segmentation Basis Distinctiveness Accessibility Measurable Profitable Score

Sector wise, 5 7 8 7 27

Business Usage wise,

8 8 8 9 33

Demographic basis 5 6 8 6 25

Geography basis for

segmentation

8 5 4 4 21


Score Calculation Methodology: The scores are ratings on the scale of 0-10 given by the IT Experts of

Redivivus and industry as a part of study done to understand the Segmentation basis applicability through

DAMP Analysis.

Exhibit 12- Segment Attractiveness data

Seg

men

t

Att

ract

iven

ess

Fact

ors

Wei

gh

tage

Pri

nti

ng

Au

tom

ati

on

Seg

men

t

Sco

re

Insp

ecti

on

Au

tom

ati

on

Seg

men

t

Sco

re

Mfg

.

Au

tom

ati

on

Seg

men

t

Sco

re

Image

Pro

cess

ing

Seg

men

t

Sco

re

(Ou

t of

100)

wei

gh

ted

score

(Ou

t of

100)

wei

gh

ted

score

(Ou

t of

100)

wei

gh

ted

score

(Ou

t of

100)

wei

gh

ted

score

Growth 0.25 80 20 70 17.5 85 21.25 60 15 Profitability 0.25 75 18.75 80 20 65 16.25 85 21.25 Size 0.25 90 22.5 45 11.25 90 22.5 40 10 Competitive

Intensity 0.15 70 10.5 70 10.5 70 10.5 70 10.5

Cyclicality 0.1 50 5 45 4.5 75 7.5 40 4 Segment

Attractiveness

Score

1 76.75 63.75 78 60.75

Attractiveness

Score Rank 2nd 3rd 1st 4th


Score Calculation Methodology: The scores calculated are weighted Scores to analyze the segment

attractiveness. Weightage to each factor is given in 2nd column and rating for each parameter for each

segment is given in the subsequent columns. These ratings have been given the senior management of

Redivivus and the industry experts as per their expert opinion towards the segments. The weighted scores

are the final scores for each factor and segment.


Exhibit 13 Targeting Alternatives

Targeting Opportunities Threats

OEM Tie-up Less Marketing cost No exposure to market

Less development cost Losing business to OEM

Less CRM complexities Limited profitability

Strong Relationship with OEM

Direct Marketing High Growth Low initial profitability

Access to Marketing Potential Risk of losing business of OEM

Self -sustaining marketing Rise of marketing& dev. cost

Source: Created by author based on data from RTPL

Exhibit 14- Positioning Strategy Alternatives

Segment Positioning Strategy Founder’s

Rating

Customer

Rating

Expert

Rating

Total

Score

Printing Low price Player 50 70 50 170

Differentiation through High Customization

80 80 80 240

Inspection Low price Player 60 60 50 170

Differentiation through

High Customization

70 60 70 200

Manufacturing Low price Player 60 70 70 200


High Customization

80 80 70 230

Image Processing

Low price Player 30 30 30 90


High Quality

90 90 80 270


Score Calculation Methodology: The scores are ratings on the scale of 0-100 given by the Senior

Management team of Redivivus to develop positioning strategy.

Exhibit 15- Business Model alternatives


Source: Created by author based on data from RTPL

Automation IT solution Business

Model

Less Margins

Les Investment would keep the ROI competitive

Less automation business share

Internal IT outsourcing is possible, so less

investment needed

Opportunity to dent into the IT solution services

markets of bigger players.

Over dependance on the major OEMs for the

business

End-to-End Automation

Business Model

Large margins

Comparatively larger investment

Bigger pie of the automation solution

market

Outsourcing in IT as well hardware automation

solutions is possible. This would keep the ROI

competitive.

opportunity to position as complete automation

solution player

Self reliance would bring the business sustainability

Documents

A National Level Case Study Competition