BADM 590 Case 2 Write Up
Infosys Consulting in 2011
Innovative Business Model Infosys Consulting (thereafter IC) is a new, fast-growing consulting firm under parent company Infosys Technology Limited (thereafter ITL) base in India. Infosys Consulting has 700 consultants by 2011 and they provide consulting services worldwide with a focus on entrepreneur technologies. Infosys has two valuable business models: Value Realization Method (VRM) and Global Delivery Model (GDM). These two models have been IC’s key differentiators during the recent few years. GDM is an older method used by IC. IC is the first among the consulting industry who started to practice such model. Each consulting project is staffed with 1 IC-based consultant, 1 ITL-based technical employee and 3 IT employees. This helps to bring together both strategies and technologies. However, managing director Raj discovered that GDM could be further developed to a better model. Then comes to the valuable VRM.
VRM is an approach to realizing client’s measurable business value through transformation programs. The best way to understand VRM is to connect IC’s initiatives to enlarge shareholder’s value. This behaves more like a “back warding” approach of to discover initiatives. For example, if shareholders’ goal is to generate as much free cash flows, then the company needs to increase revenue and reduce cost. Then going back to operational level, IC will detect the level 0 to level 4 business processes. Then based on the objectives and levels of processes selected, specific solutions will be applied, such as improvement of ERP platform or digital marketing. A big selling point of VRM is the target timeframe IC designed to reach the desired process metric. And then following the processes, IC was able to deliver measurable business value to clients.
Comparison to Traditional Consulting Firms IC can differentiate from competing consulting firms by using VRM and implementing cost-efficient solutions. Traditional consulting firms
Innovative Business Model Infosys Consulting (thereafter IC) is a new, fast-growing consulting firm under parent company Infosys Technology Limited (thereafter ITL) base in India. Infosys Consulting has 700 consultants by 2011 and they provide consulting services worldwide with a focus on entrepreneur technologies. Infosys has two valuable business models: Value Realization Method (VRM) and Global Delivery Model (GDM). These two models have been IC’s key differentiators during the recent few years. GDM is an older method used by IC. IC is the first among the consulting industry who started to practice such model. Each consulting project is staffed with 1 IC-based consultant, 1 ITL-based technical employee and 3 IT employees. This helps to bring together both strategies and technologies. However, managing director Raj discovered that GDM could be further developed to a better model. Then comes to the valuable VRM.
VRM is an approach to realizing client’s measurable business value through transformation programs. The best way to understand VRM is to connect IC’s initiatives to enlarge shareholder’s value. This behaves more like a “back warding” approach of to discover initiatives. For example, if shareholders’ goal is to generate as much free cash flows, then the company needs to increase revenue and reduce cost. Then going back to operational level, IC will detect the level 0 to level 4 business processes. Then based on the objectives and levels of processes selected, specific solutions will be applied, such as improvement of ERP platform or digital marketing. A big selling point of VRM is the target timeframe IC designed to reach the desired process metric. And then following the processes, IC was able to deliver measurable business value to clients.
Comparison to Traditional Consulting Firms IC can differentiate from competing consulting firms by using VRM and implementing cost-efficient solutions. Traditional consulting firms