1. Service Offerings- Satyam Industrial Practice
Product Development
1. Product Engineering
2. Managing Complexity
3. Electronics Control- Motion – Power
4. Continuous Product Improvement
5. Product Data Management
6. Supplier Collaboration
Supply Chain Management
1. Demand and Supply Planning including Forecasting
2. Global Strategic Sourcing
3. Supplier Charge Back
Manufacturing
1. Factory Scheduling and Sequencing
2. Manufacturing Execution Systems
3. Lean Manufacturing
4. Operations Planning.
Sales and Marketing
1. Channel Management
2. Marketing
3. Market Intelligence ( Business Intelligence)
4. Order Management
5. Sales
6. Service
7. CRM Analytics
8. Sales Planning
After Sales Service
1. Network Optimisation
2. Inventory Planning
3. Product Life cycle and Logistics Management
4. Opportunity Management
5. Contract Management
6. Dealer Management

2. High Tech Companies and their Product Development
Lifecycle in Globalized Era
- Ram Prasad (ramprasad.srivats @gmail.com)
Part I: Trends, Drivers and Constraints and Opportunities.
Trends:
Global sourcing has become an important parameter in the high- end technology manufacturing –
causing drastic shifts in how and where the product components are sourced and leading towards
to manufacturing of finished product. In recent years, high- technology companies are facing
relentless pressures on their R&D and product development due to increase in consumer demand
for : innovative product solutions, shrinking product life- cycles and declining price points. In this
regard, global sourcing solutions offer an increasingly attractive value proposition to address
these pressures, and product development is the inevitable next stage to enhance the
competitiveness of the high-tech companies in this increasingly becoming borderless world.
With global sourcing and procurement of products becoming the order of the day, companies are
disaggregating their operations and are more focused to delivering value added products in terms
of – enhanced value creation, cost- efficient and globally marketable products.
As a result, these companies reap the benefits that go beyond the simple cost reduction
mechanism to product innovative mechanism which quintessentially adds value to both their
value creation stream and revenue generation stream.
This paper extrapolates the impact of the global sourcing on product development ( R&D)
operations of high-tech companies. Part One examines the trends, drivers and constraints and
opportunities of adopting global sourcing in product development; Part Two explores how
companies are executing their global sourcing strategies by evolving their organisational
architecture.
High-
Key Imperatives of High- Tech Product Development
• Reduce product development cycle-time; improve time to market and creating
enhanced value creation.
• Maximise value obtained from increased tech-spend in developing new products.
• Accelerate the innovative mechanisms and creating clusters for innovative product
developments.
• Managing the cost of product operations, for both new and mature product lines.
• Increase the success rate of new products, through improved fit with market needs.
Product Development Key Imperatives
The high-technology is always in a state of flux. Companies are facing tremendous pressure to
innovate and create new products in consonance to the business demands, while dealing with
decelerating price points and shrinking profitability margins. These trends are driven by:
• Rapid assimilation of technology into every day life and thereby changing the
landscapes of technology mechanisms.
• Increased consumer demand for newer products and technologies.
• Hyper competition from low- cost locations.

3. • Emerging new business models and business landscapes.
This pressure translates several key imperative for the companies to develop new products, new
technologies and new markets across global locations.
• Development of new product platforms- Companies need to evolve towards
development of new product platforms which form the basis for multiple
product development, fuelling innovation within the organisation.
• New Technological Solutions – Developing new solutions should be the
mantra for the corporations , enabling them to move towards solutions
centric from product centric operations.
• New Markets- Creating new products, markets and technology enables the
companies to leverage their IP ( Intellectual Property) property .
• Management of Product Development Costs- Managing costs and
complexities of far flung product development operations, both within and
outside the company’s operations.
Development
Leveraging Global Sourcing to Address Product Development Imperatives
In order to address these imperatives, and their challenges product development executives are
increasingly turning towards global sourcing opportunities. With high-tech companies becoming
more focussed in disaggregating their product development value-chains they are closely moving
towards discrete modules of work by identifying key global locations in their supply chain
mechanism for better delivery mechanism, while factoring all imperatives such as: costs,
competencies, skills sets, location for development and a closer association with the customer.
Product Key Drivers Key Enablers
Conceptualisation
• Developing Multiple • Deep Technological
Product Alternatives Expertise.
through increased R&
D and
Tech-spend
Market Assessment • Reaching to Emerging • Inherent assessment
Markets- BRICS- of the markets
Brazil/ Russia/ India/
China markets
Product Design & • Innovation to • Use of infrastructure
Development Consumption model mechanisms to
• Lower Development develop new product
Costs. designs.
• Product Improvisation
Product Testing • Low Costs • Product Testing
• Faster time to market • Quality Assurance
• Product Improvisation
Product Release • Enhanced Market • Product Launch
Reach
• Customized Products
Product Sustenance • Lower Cost • Basic Infrastructure
• Product Provider towards
Enhancements product sustainability.

4. Global Sourcing Drivers and Enablers by Product Lifecycle Stage
Desegregation of Product Development Lifecycle
Any consulting company involved in high end customer solutions, should embark on
disaggregating of the products along the various stages of product development lifecycle. As
companies involved in developing improved cost structures, should identify between its in-house
capabilities and outsourcing of its products from specialised partners around the world.
Global sourcing adoption is the highest in product development. This enables the companies to
adopt a low cost – high revenue models. Other features which are intricately woven around this
model includes is- it develops the supplier networks across the globe which is one of the key
features in new product development.
Another area which is emerging and its widely practiced by IT Consulting Companies is to:
leverage the competency of outsourcing partners towards more value added works by drawing
them towards more sophisticated engineering and design works, where by virtually handing over
the every aspect of product development, which is key to vendor development management. This
is particularly true when a vendor demonstrates deep capabilities in specific area of software or
hardware technology, and when these capabilities will enhance the product success as measured
by performance, feature-set and price value equation.
Global Sourcing Stages of Maturity
Although hi- tech companies are leveraging global sourcing across many stages of product
lifecycle, most companies cannot immediately engage or realize benefits across- all stages of
these stages. It is mandatory for IT Consulting Companies like Sat yam to observe these
developments which are leading towards leveraging of global sourcing strategy in product
development cycle to visualise the next stages of maturity by envisaging the future to transfer all
responsibility pertaining to outsourcing where by they can enhance their value architecture with
their clients.
Global Sourcing Stages of Maturity- Various Stages of Maturity for Hi-
Tech Design & Engineering.

5. Level IV:
Benefits
Impacting
Bottom
Line
Level III Level V:
Partnering to Benefits
drive the Impacting
D&E agenda Top Line
Maturity
Stage
Level II Level VI:
Design Benefits
Ownership Additional
&Product Revenue
Development Streams
Level I
Product
Design &
Developme
nt
A

6. Benefits Impacting Bottom Line
• Reduced Investment in Product Development
• Reduced Cost of Product Operations
• Enhanced Productivity of Engineering Workforce
Benefits Impacting Top Line
• Recharged Innovation Cycle
• Reduced Time to Market for New Products
• Improved Product- Market Fit
• Longer Product Life (with extensions)
• Additional Revenue Streams
Companies will go through different stages of maturity as they are in the process global delivery
model and their product development lifecycles evolve with their operating models and establish a
closer collaborative relationship with their global sourcing partners. Those at the leading edge of
this transition are evolving from superior cost- driven model to value enhancement model
reflecting the trends of market orientation and market acceptability.
Business Impact of Global Sourcing in Product Development
Companies realize the tremendous impact as they leverage the range of capabilities offered
through global sourcing model
Benefits Impacting the Bottom Line
Global sourcing not only reduces the costs by leveraging the capabilities of offshore capabilities in
low-cost centeres, but it also enhances the productivity factors also, by enabling to work towards
new product development processes and programs leading towards improved program
management.
As global sourcing model lowers down the product development costs, companies tend to stretch
their product development budgets farther- which enable better and quicker analysis in
developing new products with better features. This move further lends credence towards fostering
innovative products and a higher success rate for new product introduction.
Benefits Impacting the Top Line:
Global sourcing model enables companies to look beyond cost reduction model. Mature
companies are using global development teams to accelerate development lifecycle times, thus
meeting the market requirements. In this way, companies are moving away simple value addition
orientation to value enhancement orientation through superior innovation cycles, superior delivery
mechanisms, cutting edge technologies to improve their products. In this way, they are beating
the competitor’s product by customised product differentiation to command higher market prices.
Companies are also improving their competitive edge by focusing on internal value accruals of
the products by designing more valuable product designs and product line management tasks,
and outsourcing either commodity tasks or more specialised tasks to their partners.

7. Additionally, for mature products, top line benefits accrue in the form of re-casting the product line
for additional sources of revenue or extending the life of mature products with additional features,
perhaps directed towards different market segments.
Tapping into Emerging Markets:
Global markets are expanding like never before in emerging markets of BRIC countries, (namely,
Brazil, Russia, India and China). As the opportunity beckons companies in full, they should
leverage their skills to build customised products to cater to each of these segments as these
markets are witnessing an exponential growth across various product segments.
Conclusion:
As matured companies like Satyam Consulting operates across different verticals and different
spectrum on services delivery, they certainly know when to introduce new products to market, and
have the ability to quickly market them. In the rapidly becoming flat world, new market conditions
are creating new challenges in bringing the right products to market quickly. The ability to adapt to
various market conditions entails companies to quickly spot new opportunities and address new
challenges and take advantage of new opportunities that flat world is creating, will determine the
long term winners and losers in the high tech market place.
Satyam with its inherent capabilities gained over more than three decades of experience in
product development consulting across different models across geographies would entailing its
efforts to create new solutions for companies in the flat world by realising various product
innovations in product development cycles by embarking on new design and development
partnerships.
With the flat world offering huge potential, only companies that view globalisation with strategic
and long term orientation will be able to execute their strategies well; will make use of the
opportunities. Sat yam has superior capabilities to assist companies in leveraging global
partnerships to create product innovation, while optimising new product development with cost
variables under control.