Hcl Technologies Presentation
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Transcript of Hcl Technologies Presentation
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7/31/2019 Hcl Technologies Presentation
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HCL TECHNOLOGIES
The incredible journey of a company and thatof a radical man
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INCEPTION
1972: The Govt. of India passes the foreignexchange & regulation act, creating barriersfor multinationals to function and thus it
paved the way for IBMs departure creating avacuum in the IT sector
1974: Shiv Nadar founds HCL in his garagewith fellow engineers having received Govt.approval to enter the hardware market
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VISION & WORKING STRATEGY
Shiv Nadar was a visionary who believedthat computers could be manufactured inIndia
He made it possible for HCL to createcomputer system before APPLE or comingup with 4th generation computer languagebefore Oracle
He invested heavily into R&D which allowedHCL to keep up with latest trends like DOS &UNIX, thus paving the way for golden 80s for
HCL
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RECRUITMENT STRATEGIES
HCL recruited freshers from leading B-schools and Engineering institutions fromacross India
HCL paid a superior salary to attract potentialcandidates
All the candidates employed had an
entrepreneurial spirit, never say die attitude& were unafraid of failures
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ENTERS THE FUTURE PRESIDENT
1985: Shiv Nadar hired a 23 year oldengineer with an MBA degree from XLRI,Jamshedpur, Vineet Nayar
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THORNS AHEAD
The changing trends in the IT marketdemanded changes in strategy from HCL
The financials in computer business waschanging: hardware became commoditizedand software and services became theemerging trend
New competitors like Wipro,TCS & Infosysentered the market
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WRONG DECISIONS
HCL decided to stay in hardware sector,committed to stay on cutting edge
Being ahead of the curve HCL decided to go
global after a study and offered innovativeproducts but couldnt register sales due tothe American perception that the Indianhardware was inferior
HCL thus had to enter a joint venture with HPin the early 1990s
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BANE OR BOON
1992: Vineet along with many of hiscolleagues was frustrated and unsure ofHCLs Future.
Vineet thinks of leaving HCL & start anentrepreneurial venture.
Nadar gives Vineet the oportunity to be an
entrepreneur within HCL. Vineet accepts proposal and tries to win the
bid for the Govts tender of creating a newelectronic Stock exchange.
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THE COMNET BECOMES A REALITY
Vineet hires a few of his colleagues andfounded HCL Comnet (an IT infrastructure andnetworking business wholly owned by HCL)
trying to win the contract Using satellite technology for the Online Stock
exchange was the most radical and innovativeconcept at that time and the team worked for 2
years relentlessly to make it a reality. Soon Vineets Comnet became was HCLs most
innovative & successful divisions.
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TOUGH TIMES
HCL started lagging behind Indian competitors
Deregulation of policies by Indian govt. saw the returnof multinationals like IBM increasing competition
Customers demanding integrated IT services forcompetitive advantage
Global IT leaders transforming in to service deliverybusiness
Companies off shoring recoding and applicationdevelopment to India(particularly Y2K problem)Another wrong decision by Nadar not to participate in
Y2K problem remediation cost HCL further
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IDENTIFICATION OF PROBLEM & SOLN.
HCL not moving into services
Ending collaboration with HP to move in toServices
Attrition rate rose to 30%Changing management & work culture
Late entry into services market
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RISE OF A NEW LEADER
2004: Nadar feels the need for a new leaderfor HCL tech.
Vineet the entrepreneur of Comnet (mostsuccessful unit under HCL) the obviouschoice
Vineet refused.
2005: Nadar asked vineet to take the helmonce more
Vineet finally agrees
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RECOVERY PROCESSES STARTED
2005: IT industry estimated $36 billionrevenues
IT industry Growth 28% annually
From 3lac employees in 2000 the numberrose to 1million in 2005
Changing technological trends
Software turned into Service(open source toolautomation)
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TRANSFORMATION BEGINS
April 2005: vineet starts as president-HCLTech
3 customers canceled their contracts soonafter he joined
Vineet understands the gravity of thesituation
Decided extreme plans are needed for turnaround of HCL
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HEAR THE STRATEGIES CHANGING
Change in strategies and ops walking away small project based work and going
after big deals Blue print meeting Mirror-Mirror Initiative Import of Young Sparks Centralization of policies Creation of LOB(line of business)
Mobilizing finance teams for sales and deliverybringing in value added business
MSD(multi services Delivery unit
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3 STEP RADICAL STRATEGY
1st phase: EFCS(employee first customersecond)
2nd phase: Form strategic partnerships tooffer more value added services tocustomers
3rd phase: Radical change to be brought to
HCLs business model but what and whenstill unknown even to vineet
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EFCS-IMPLEMENTATION
July 2005: Young Sparks introduced HCLitesto EFCS strategy provide a unique employee environment
Drive an inverted organizational structure ensure transparency and accountability
Encourage value driven culture
Implementation tool: Intranet Icon for rejuvenation: Thambi-the
extraordinary individual
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THAMBIENTREPRENEU
R
PARTNER
BEST OFBREED
PRIDE
;PASSION
ENGINEERINGMINDSET
INDUSTRIOUS
CREATIVIT
Y
FLEXIBLE
DOWN TOEARTH
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TOOLS BROUGHT IN FROM COMNET
The new and improved intranet system
Smart service desk
The new U&I communicationNatasha
Town hall meetings
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360 DEGREE FEEDBACK
360 degree feedback for top managersrecommended to be posted on intranet forthe entire organization to see
Transparency and innovation rejuvenated thetrue HCL DNA
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INITIATIVES TO EMPLOYEES
Trust pay
Business plans
Project quality index Project tracking
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TRANSFORMING SALES
Sanjeev Nikore from COMNET was broughtin to run sales
Automated systems introduced
Big incentives for sales like trip to Rome
Nikore and his counterparts in delivery met inWar room
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RESULTS BEGIN TO POUR IN
$50 millions contract with Auto Desk
Strategic partnerships agreements withJapans, 2nd largest steel manufacturer
Top 10 most wanted Indian stocks
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PREPARATIONS FOR BIG LEAGUE
Blue Ocean strategy
Creating uncontested market space
Value centric not Volume centric
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FINALLY ENTRY INTO THE BIG LEAGUE
$330 million DSG international deal
Deal record in IT history
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2007 SCENARIO
Revenues of $362 million were upto 44%YoY
Operating margins 18%
Operating income up by 57%
Net income 76% YoY
ALAS!!!!! Company still trailing behindcompetitors
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PUBLIC SPEAKING
Audacious multibillion celebration, explore
and transform
Bold speech of Vineet
Declaration of EFCS
Surprisingly well received by public
Huge media attention Fortune entitled HCL as the worlds most
modern management- in INDIA
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PROOF OF GOOD WORKING CULTURE
Co. growing 40% anually
No. of employees increasing from 24090 to32626
Attrition rate between 14 & 20%
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ATTRITION RATE- IT INDUSTRY
Sep. 2005 Dec. 2005 % change
TCS 8.7% 10.8% 24.14%
INFOSYS 10.0% 13.5% 35.00%
WIPRO 14.0% 16.0% 14.29%
SATYAM 16.2% 17.6% 8.64%
COGNIZANT 16.1% 17.1% 6.21%
HCL 19.5% 17.7% -9.23%
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NEW WORK CULTURE
Improved and transparent working culture
Initiative for thinking innovatively
Introduction of iGEN
Active participation by all the employees iniGEN
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FINALLY A BIG PLAYER
$70 million deal with Teradyne
$100 million with Celestica
$200 million deal with Skandia
Enterprise transformational service
Explore and transform with 300 customers
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NEW INITIATIVES
Mirror mirror once again
Six sigma implementation conducted in 90days
Bringing in new dimensions into the co.
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HCLS NEW INITIATIVES
1. 15 Days DMO(days manpower outstanding)2. DRIVE(Discover Review Invent Validate
Enlighten) for ISL3. Targeting lowest attrition rate4. HCL cares5. Smart Recruit and Smart move6. Stitch 8 Hrs deadlines
7. Employee Help Desk8. Zero Ticket Day: the Aim9. Better predictability of costs and revenues
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CONTD.
More Transparent and Automated process Employee first: Identify performers and
reward them
Value creation framework for customersDomain focussed R&D and investment
Nxt Gen Leaders
Train the trainers Zero defect billing
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TRANSFORMERS BEING TRANSFORMED
April 2007 Impressive results LTM revenues $1.27 billion
Top 2 fastest growing Co.
Besides Indian competitors multinationalcontenders
Economists take on HCL
5th biggest Indian Outsourcer Largely unnoticed -won contracts worth $300-
700 m
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NOW WHAT????????
IS HCL READY FOR THE 2nd PHASE AND3rd PHASE?????????
YES.
No..
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WHAT IS THE 3RD PHASE??????
What type of radical changes does thecompany/ Vineet think of or implement..
Feedbacks..