Final Wipro

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Presentation on Case Study of WIPROPresentation on Case Study of WIPRO

LTD.LTD.-- THE NEW FACE OF GLOBALTHE NEW FACE OF GLOBALCOMPETITIONCOMPETITION

Presented to:

Dr. Himnashu Mohan



Fast Facts



Fast Facts



Fast Facts



VISION MISSION

W

I

P

R

O



COMPANY OVERVIEW

Wipro (Western India Palm Refined Oils) started in 1945 as a vegetable oil tradingcompany

In 1977 Wipro entered into the information technology sector

In 1979 Wipro began developing its own computers and in 1980 moved to softwaredevelopment

Since 1992 Wipro began to grow its roots offshore in US and by 2000 its ADRs were

listed in NYSE

Currently Wipro Ltd deals in ± information technology, consumer care, lighting,engineering & healthcare businesses

Provider of integrated business, technology and process solutions on a global delivery platform

First CMMi Level 5 certified software services company

First company outside USA to receive the IEEE Software Process Award

55+ Centers of Excellence creates customized solutions irrespective of domain involved



PORTFOLIO OF PRODUCTS &

SERVICES



DISTRIBUTION CHANNELS

Wipro Technologies uses two distribution modelsfor its IT based services:-

Global Delivery Model- Also known as ³followthe sun model´ as it provides delivery of servicesat a global platform

Fixed Delivery model:- Distribution of servicesfrom one fixed location to multiple customers



DISTRIBUTION CHANNELS

Achieving Data Synchronization



Distribution framework of WIPRO:-

Common Product Catalog :- This makes product data standardized or a creation of acommon product catalog a pre requisite for allProject Management of any distributor

R everse Logistics :- Seamless collaboration between retailers and suppliers

Centers of Excellence :- Provides winningsolutions faced by Wipro¶s clients and help them proactively respond to industry trends



PEOPLE & PROCESSES

STRENGTHS

Human R esources :- ³Centers of Excellence´delivering unmatched business value to customersthrough a process of quality excellence, qualityframeworks and service delivery innovation

Employee Feedback and Communication:-Wipro believes in connecting and listening to people

Corporate Culture :- Innovative and thought provoking corporate culture with beyond work

Workforce diversity:- Promotes respect for entire human race



PEOPLE & PROCESSES

STRENGTHS

Business Level Program:-

Wipro Leaders Qualities Survey:- 360 degrees survey process

Leaderships lifecycle Programs:- Training and

development programs at various stages have beendesigned by mapping the competencies to different roles

Entry Level Program (ELP)

New leaders Program(NLP)

Wipro Leaders Program(WLP)

Business Leaders Program(BLP)

Strategic Leaders Program(SLP)



PEOPLE & PROCESSES

STRENGTHS

Evolution of Six Sigma at Wipro:- Wipro started the initiativeof Six Sigma in 2000.

Six sigma at Wipro means a measure of quality thatstrives for near perfection. It is an umbrella initiative

covering all business units and divisions so that it couldtransform itself in a world class organization by followingthe following rules:-

Have products and services meet global benchmark

Ensure robust processes within the organization

Consistently meet and exceed customer expectationsMake quality a culture within



Journey of Wipro

In 1989 general electric entered into a joint venturewith Wipro, Wipro GE Medical system, to make & sellGE ultrasound scanners in India.

Wipro outsources work from India to GE as in Indiasoftware programmers earn an average of $10000 ayear while in US they make $ 64000 a year.

GE quickly hire Wipro software programmers to writecode for GEs ultra sound machine and its CT scanners.



Continued

In mid 1990s, senior GE manager encourage other units tofollow the medical divisions lead & outsource informationtechnology.

Wipro was getting 50% of its revenue from general electricsat one pt. by the mid 1990s.

Wipro learnt a lesson as GE contracted out work to other ITcompanies.

Wipro moves the right path as they noted their weakness.(copied Wipro).



Continued

Wipros customers are general electric , Hewlett-packward, home depot, Nokia, Sony,&Weyerhaeuser.

In 2003, Wipro was supporting a broad array of Weyerhaeusers information system includinglogistics, sales, human resource applications fromBangalore.

In 2002, wipro signed a deal to design & engineertape storage devices for storage technology.



Continued..

In 2004, Wipro took over responsibility for all developmentwork on this product line from 200 employees inMinneapolis.

Wipro moving towards high value added software services,i.e. global supply chain, billing systems for largecorporations.

Intention to expand its business Wipro was hiring local

national to increase its sales.

Now, Wipro has its direct sales presence in 35 countriesmostly which are staffed by local nationals.



Continued..

By 2005, the company expected 3 quarters of theemployees that customer see will be local nationals.

Wipro was also buying local companies to give itinstant industry presence as in Nov 2002 Wipro paid$26 million for American management system.

Since 2000 Wipro moved some product development

work out of India to developed nations.( 9development centers in Europe & U.S). They focusedon product work where more communication betweenWipro engineers &client is required than outsourcing.



Brand Evolution

Mid-1970s

Late 90s: ³ Applying

Thought´

2005-06 onwards:

³Spirit of

Wipro´

6 Wipro Beliefs

1. Respect the individual

2. Be a business leader

3. Accomplish all tasks in a

Superior manner

4. Maintain the highest ethicalstandards

5. Serve customers well

6. Measure performance based

on long term profitability

4 Wipro Values

1. Human Values:

2. Integrity:

3. InnovativeSolutions

4. Value for

money

Spirit of Wipro

1. Intensity to win

2. Act with

Sensitivity3. Unyielding

Integrity



STRATEGIC ALLIANCES

Five-year engagement with British Petroleum

Multi-year deal with a leading infrastructural company

Wipro acquires NOKIA's mobile TV software Unit

Wipro acquires mpower and NewLogic

GE to integrate healthcare unit with Wipro



SWOT Analysis





Strategic Business Units



SBU

MARKET

SHARE

COMPETIT

OR

C MARKET

SHARE

RELATIVE

MS

REVENUE

GROWTH

REVENUE(i

n billionRs.)

WIPRO

TECHNOLOGIE

S1.2

IBM Global

services14 0.085 1 4.41

WIPRO

INFOTECH8.

IBM Global

services10.8 0.805 18 34.56

WIPRO

LIGHTING8.1 PHILIPS 35 0.231 10 5.20 5

WIPRO INFRA

ENGG.0

Larson and

Tubro15 4.6 4 .145

WIPRO

CONSUMERCARE

8. 4 HUL 50.34 0.1 36 11 15.6225

WIPRO BPO 21.9 GENPACT 36.25 0.60413 11.90 1 .25



BCG MATRIX

TECHNOLOGIES

INFOTECH

BPO

CONSUMER CARELIGHTING

INFRASTRUCTURE

5

1

15

2

25

-5-3-1135¡

BCG MATRIX-WIPRO LTD.

.

85

.8

5

.6

4

.1¡ 36

.231 4.6¡



PERCEPTUAL MAPPINGFIR M Innovative

nessCustomer

satisfacti

on

Integrity

Effectiveness

Timelines

Pricing

Customer

suppor

t

Employee

Satisfact

ion

Wipro

Technolog

ies

7.2 69 7.4 6.9 6.9 7.9 7.2 8

Infosys 7.6 73 7.1 7.6 7.4 7.4 7.7 6.8

TCS 6.4 77 9 8.3 8 8.8 8.3 8

CTS 6 72 7.2 7 6.8 8.1 8.8 6.8

IBM 7.8 84 7.8 9 7.4 7.1 7.1 5

Accenture 5.5 66 5.5 6.5 5.9 4.6 5.7 5.7

Capgemini 5 63 5.8 6.9 6.4 5.5 6.8 7







Apart from Acquisitions

Effective riskEffective risk

managementmanagement

ExtensiveExtensiveDistributionDistribution

NetworkNetwork

Service LineService Line

ExpansionExpansion

QualityQuality

LeadershipLeadership

Investing inInvesting in

Human ResourceHuman Resource



Suggestions

Product Line

Expansion

Product

DiversificationBranding

Strategic Alliance

with RetailCompanies

Investing in R&D

Services



Words of Wisdom

We are selectively looking at acquisitions...it

will be a string of smaller ones," WiproChairman Azim Premji told reporters on

the sidelines of a conference here. Premji

said Wipro is focusing on the domestic

sector



Words of Wisdom

Ayan Mukerji, Head of Europe Operations, Wipro

Technologies said, Today, Wipro has grown to

become a leading IT Services company in the UK.Both the centers at Reading and London will be a

key hub for recruiting, training of local staff and

also gives an opportunity to offer an onsitedevelopment center premises to more

customers.



Words of Wisdom

We will continue to invest in building and designing new low-cost

products for the Indian market. Going forward, we will launch

new price points to reach out to the large masses in smaller towns and villages that were not getting

adequate health facilities so far, said Wipro chairman Azim

Premji.

Healthcare is somewhat recession-proof when compared to other verticals, and Wipro already had assets needed to establish a

bigger healthcare practice,-Rajiv shah who heads healthcare

unit



Words of Wisdom

Thats something our clients really like, the

in-between solution, Suraj Prakash, vice

president of Wipros Atlanta Development

Center told GlobalAtlanta. The vision is to

set up a Bangalore in Atlanta, said Joydip

Mukherji, Wipros head of operations in

Atlanta.



WIPRO IN NEWS

Wipro buys some Yardley

businesses for $45.5

million

Y ardley Y ardley isis aa very very strongstrong brand brand

and and will will helphelp completecomplete our our

portfolio portfolio of of products, products, said said

VineetAgrawal VineetAgrawal, , president, president,WiproWipro Consumer Consumer CareCare and and

LightingLighting



Q uestions

1. How did outsourcing work to Wiproimprove General Electrics ability to compete

in the global economy? Does such outsourcing

harm or benefit the American Economy?Answer-

Help them to know the Indian Market.

Marketing the product. Given them a profitable business in

comparison to others.



Q uestion2: Did General Electric help to

create Wipro? How?

Answer:

Yes,

By improving their operating efficiency as theytaught Wipro a hard lesson and after that

Wipro followed the steps of General Electric

which worked as credit of their success.

That leads WIPRO in becoming the brand in

the following ways:



Wipro pursue quality with a missionary zeal and have put robust

processes to ensure that it delivers quality with six sigma

consistency .

Salient features of Quality Program at Wipro:-

Most mature six sigma program in the industry with a rate of

91% of their project completed in schedule

Worlds first company to be awarded PCMM Level 5 and CMMI

Level 5

Defect prevention

Cycle time reduction due to lower rework rate

Cost of failure avoidance and high project visibility



Helped them in making the marketing

stratigies.As Wipro focuses largely on ³pull´ marketing initiatives, targeting prospective clientswhile they are searching for relevant IT information.

Mostly this mean web based marketing with four key components:-

S arc gir ti

T ug t

l ad rs ic t tl adi g IT

rtals a ddir ct ri s

W b s i arsa d v ts

W bsit c t t



Planning to aggressively develop the R&Dservices by focussing on high growth markets

Dedicated sales team for Europe and Asia Focused on New Client Acquisition in Europe

& Asia

Wipros own website is the fulcrum of the

entire lead-generation program

Consciously focused on increasing the revenuecontribution from higher-end service lines

Special offers and more than 400 case studiesto get visitors to demonstrate and registertheir special interests



Comprehensive Web monitoring

Wipro uses permission marketing to strengthenrelationships and move prospects along the salescycle

telesales, direct mail, and industry-basednewsletters

Marketing team relies on the prospect databaseto create carefully targeted lists based onincoming traffic, client profiles, and ongoing webactivity

The database is so effective that Wipro no longerbuys lists of any kind to support its marketingefforts.



Q ues 3. If Indias Information technology companies continue to

prosper, over time what do you think will happen to the income

differential between software programmers in the united states

& India? What are the implications for the American economy?Answer:

The income of the Indian software

programmers will gradually increase because

they will have more job opportunities. where

as us programmers goes income goes down

because of competition with Indian

programmers.

Q 4 Si 2000 Wi h d b d t bli hi l



Q ues 4. Since 2000, Wipro has moved abroad, establishing sales

offices in 35 nations & design centers in nine. Why is Wipro

doing this? What would happen to the company if it did not

follow this strategy?

Answer

It will increase the market share which finally

increase the revenue.

Reduces the transportation & logistics cost.

Increase the competitiveness of the company.

Global operations.



Q ues 5. What does the rise of Wipro teach you about the nature

of the global economy in the first decade of the 21 st century?

Answer:

Expand, contract, merge based on world wide competitiveadvantage.

Obtain high and increased return on invested capital.

Manufacturing in those countries where it finds the greatestcomparative advantage.

Innovation as a key business driver

Inorganic growth strategy for getting deeper domain expertise ,adding new service lines and fuelling rapid growth

Quality management system for high quality standards Low cost service by efficiently managing the resources

Excellent corporate work culture by designing various programs for building strong corporate environment



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Final Wipro