IT STRATEGY & BUSINESS DYNAMICS OF THE IT INDUSTRY

Answer of Question Bank

Contents

Q.1 What is business strategy? What is IT strategy? Explain briefly their relationship.........................3

Q.2 What do you understand by the term “context of business”? Explain briefly the steps involved in arriving at the IT Strategy after understanding the context of business?..............................................7

Q.3 What do you understand by the term business transformation? What process practices (or factors) that one needs to consider enabling smooth transformation of IT during such transformation?...................................................................................................................................10

Q.4 Describe briefly various roles, responsibilities and accountability matrix that needs to be established at minimum for an IT department and briefly explain its strategic importance to the organization?.......................................................................................................................................14

Q.5 Who is responsible for IT Strategy in an Organization? Explain how the members identified for the Organization shall drive IT Strategy across the organization?.......................................................19

Q.6 Describe briefly any three IT services provided from India. Based on the past experience, what should be the vision (strategy) for the next 3 coming years for the industry?....................................20

Q.7 Describe the role of venture capital funding for IT industry? How should one evaluate to minimize the risk of funding and enable contribute growth to the industry?.....................................22

Q.8 what do you understand by the term “Business Dynamics”? Explain briefly the present IT industry scenario for each of the following factors or criteria.............................................................24

a. Domestic market performance and forthcoming opportunities......................................................24

b. International market performance and forthcoming opportunities................................................24

c. ITES opportunities in different verticals and countries....................................................................24

d. Opportunities in Cloud related business..........................................................................................24

e. Web technologies – build, operate and transfer.............................................................................24

b. International market performance and forthcoming opportunities................................................25

c. ITES opportunities in different verticals and countries....................................................................26

d. Opportunities in Cloud related business..........................................................................................26

e. Web technologies – build, operate and transfer.............................................................................27

Q.9 An IT company Tech Innovators LLC (TI) specialized in technology and provides services around it for the past 18 years. Another company specialized in financial services business (GFS PLC) merge to leverage best of both organizations to increase their global market share. Describe briefly the high level activities that you will take up as IT Director for the merged organization.................................28

Q.10 With the current decline in performance of many IT companies over the past 4 years, what would be the top 10 strategies that India needs to take to bring change in IT scenario in next 2 years?..................................................................................................................................................30

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Q.11 Explain briefly the dynamics of IT business for the forthcoming years between India and United States with respect to the following statements arising out of recent political, financial / economic changes that has occurred recently.....................................................................................................33

a. Restricted IT and ITES outsourcing activities from India..................................................................33

b. Utilization of local skill sets from United States of America............................................................33

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Q.1 What is business strategy? What is IT strategy? Explain briefly their relationship.Answer: -

Business Strategy: -

A business strategy is the means by which it sets out to achieve its desired ends (objectives). It can simply be described as a long-term business planning.

Company business strategy can be defined as a high level plan for reaching specific business objectives. Strategy describes how a company differentiates itself from competitors, how it generates revenues, and where it earns margins.

A strategy is judged successful if it leads to a strong competitive position, business growth, and good margins.

Business strategy help to understand, how the company willo Creates customer value,o Competes with others in the same industry,o Generates revenues and spends to create good margins.

Business strategy can be defined in either several paragraphs or be written as a set of strategic statements. It is a summary of how the company will achieve its goals, meet the expectations of its customers, and sustain a competitive advantage in the marketplace.

Business strategy should answer these questions:o Why is the company in business?o What are we best at doing?o Which customers should we continue to serve or start serving?o Which products/services should we stop offering, continue to offer, or start offering?o Why have we decided on these strategic directions?

Why we need of Business Strategy?o Retain Customers -

For every business, more important to retain customers than to constantly chase for new ones. This is one major area where business strategy is extremely necessary. In the absence of a sound business plan, you will find it hard to generate customer loyalty. Businesses that have no specific guidelines on how to cater to existing customers risk alienating the later, and a competitor can easily snatch them out of your hand just by emphasizing on customer service.

o Robust System of Follow up -What business need to do, is develop a robust system of follow-up where calls are made and emails are sent to repeat customers not only to ensure that their products are operating properly, but also to let them know that business cares for them. Also depending on line of business, business can send greeting card and gifts to loyal customers on special occasions like festivals, special occasions of customer’s life (birthday, anniversary, etc.)

o Resource Allocation -

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Resource allocation is another important area where business strategy comes in handy. Doesn’t matter what size of business, business will always need limited resources on hand, which necessities the need of efficient management so that these resources can be used with maximum efficacy. A sound business plan helps weave together resources like employees, brand value, clientele, trademarks, and supply partners etc., to achieve a competitive advantage and also create products and promotion that speaks directly to target market. If resources are not managed efficiently, then the business is likely to lose both revenue and customers in the long run.

o Business ExpansionBusiness expansion is also a goal which cannot be achieved without strategy. If business expansion goals are laid out in great detail, then it will help team leaders and executives to explore opportunities outside of standard business practice to facilitate company expansion. Business will be able to set aside budget and hire appropriate people for market research that can not only collect and collate data, but also analyse trends to which help business to spot untapped niches.

o Clarity, focus and directionIf business strategy in place, then business will be having clear idea on, where business is now, where it is going and what needs to do to get desire position. This will give business clarity, focus and direction to align business to achieving the business strategy.

o A better understanding of your current businessTo develop a business strategy, need to understand your business is now. This involves looking at overall business, including the key internal drivers such as financial performance, customer satisfaction, staff turnover, sales and marketing trends, conversion rates etc. Business also needs to consider the strengths, weaknesses, opportunities and threats associated with business. Also understand the external business environment, competitor’s and market position of business. This will help business to move forward in much better place.

o Better business resultsDeveloping a business strategy helps business to lead to better performance as focused on taking the business to where desire. Business less like to get distracted and waste time on areas that are not moving with long term objectives.

IT Strategy: -

IT strategy is a comprehensive plan that information technology management professionals use to guide their organizations.

IT strategy should cover all facets of technology management, including cost management, human capital management, hardware and software management, vendor management, risk management and all other considerations in the enterprise IT environment.

Executing an IT strategy requires strong IT leadership; the chief information officer (CIO) and chief technology officer (CTO) need to work closely with business, budget and legal departments as well as with other user groups within the organization.

IT strategy is a comprehensive plan that information technology management professionals use to guide their organizations.

IT strategy is the discipline that defines how IT will be used to help businesses win in their chosen business context.

IT Strategy is:o A long-term action plan for achieving a goal.o Those which not only link to a business strategy, but also combine tactics and logisticso It is about how IT will help the organisation win in its chosen markets.o IT strategy should cover all facets of technology management, including

Cost Management Capital Management Hardware / Software Management

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Vendor Management Risk Management

IT Strategy should answer the following questions:o Are we doing the right things with technology to address the organization’s most

important business priorities and continuously deliver value to the clients?o Are we making the right technology investments?o Do we measure what is the real value to the organization derived from that technology?o Is our current Information Technology agile enough; flexible to continuously support a

successful organization?o Is our Information Technology environment properly managed, maintained, secured, able

to support the clients, and is it cost effective?o Can our strategy support current and future business needs?

IT Strategy should: -o understanding the aims and objectives of the businesso establishing the information requirementso outlining the systems needed to provide the informationo determining the role of information technology in supporting the information systemso agreeing policy, priorities and development and implementation planso managing, reviewing and evolving the strategy, and planning to manage potential impacts

such as the effect on culture and organization An information technology strategy brings this information together into a plan to make the most

appropriate use of both information and technology available in an organisation

Relationship between Business Strategy and IT Strategy: -

Business Strategy links to IT Strategyo IT Strategy follows from business strategyo Ensure the business is making best use of IT to deliver its strategyo Ensure the business is using IT effectively and efficiently

However, what makes this uniting between IT and business strategies works is the collaborating in the organization level between the IT senior managers and business top management, IT managers and IT professionals and all the departmental workers. There are so many factors that

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contribute to the uniting IT and business strategies together and the most important factor are having the right CIO, having the right top management team, having a good IT governance and having business drive IT strategy.

The CIOs need to have both the business and technical knowledge in order to know the business needs from IT and the expectations from IT. Also, the CIOs need to have a vision for the business and how IT will better incorporate and support the organization strategy, create and strong senior IT management team and information services. The CIOs need to propagate the company and business vision to the rest of top managements. Top management team they are the right hands for the CIOs and their role is very important, they are the ones who take the time to work and support the integrated strategies between IT and business. 

Function Integration of Business Strategy & IT Strategy

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Q.2 What do you understand by the term “context of business”? Explain briefly the steps involved in arriving at the IT Strategy after understanding the context of business?Answer: -

Context of Business: -

Context analysis is a method to analyse the environment in which a business operates. Environmental scanning mainly focuses on the macro environment of a business. But context

analysis considers the entire environment of a business, its internal and external environment. SWOT analysis helps business to understand its context of business. The main goal of a context analysis, SWOT or otherwise, is to analyse the environment in order to

develop a strategic plan of action for the business. Workforce planning needs to be directly linked to business goals, and so the first step is to think

about business context. Business should answer following questions: -o What are the business goals and vision? o Where is business heading? Is it growing, downsizing, transitioning, shifting skills,

introducing new technology or is it in a maintenance mode?o What are the economic conditions that impact on industry sector and markets and does

this impact on my business?o Who are my customers/clients?o What is going on internally in my business and how will this impact on my workforce

requirements? o What are the short, medium and long term goals for my business and what workforce

skills and capability will I need to achieve these business goals? Having a good understanding of the current environment and context of the industry your

business is operating in, as well as your goals for the future of your business, will help you to plan your workforce needs and develop strategies to turn your goals into business success.

Steps for arriving at an Effective IT strategy: -

Step 1: Review Strategic and Tactical Goals and align with the Technology Projects and Goals.

o Developing an effective technology strategic plan should first start with a review of the organization’s strategic plan. Often after listing out the strategic plans and tactical plans of the organization, the areas where technology could enhance or enable such plans becomes apparent. Many organizations that have reached the state where their IT planning is pro-active rather than reactive have used the strategic plans and tactical plans as the litmus test for whether a project should be funded. When reviewing projects during the budget process, consideration should be given to whether the project contributes to achieving the strategic goals of the organization.

o Example: If one of your strategic goals is to become “a premier provider of health care services”, how is that goal going to be achieved? What is a premier provider, and what tools would enable your health care staff to become just such a provider?

Step 2: Interview the Executive and the Operational Staffo Example: The survey questions are designed to ask the users of the IT systems to rank

their opinions about the mind-set of the organization as far as IT investment is concerned. o The data collected might be sorted to show the following common issues:

The organization as a whole has a desire to be perceived as an “Innovator or Early Adopter” in their use of IT

The current state of IT in comparison to other senior living communities is closer to “Laggard or Late Majority”

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Technology that is currently available to the community is not being used properly, indicating the reasons (e.g. a lack of training or limited support)

Step 3: Benchmark the Current IT Organization and IT Spendingo The benchmarking exercise may include the following aspects:

IT Leadership – does your company have a CIO or IT Director in strategic planning and growth? Is IT Leadership proactive or reactive?

What is the size and scope of the current IT organization? How does this compare to other similar senior living providers? Rank your internal IT staff and responsibilities in comparison to similar senior living providers to determine if your organization is a leader, follower, or laggard in providing IT solutions to your company.

Benchmark IT spending against other Senior Living providers to see how your organization invests their IT dollars. We typically find that many senior living providers “think” they are spending enough on IT, but they are really laggards in comparison to senior living organizations that view IT as a strategic investment over their competitors.

o Example: Take a critical look at how IT is funded in your organization and ask yourself the following questions:

Is Information Technology considered a “cost” of doing business or an “enabler” of the business to succeed?

Are projects funded based on proactive or reactive thinking? Do you replace systems when they break or are there multi-year plans to upgrade

systems? Do you include IT leadership on the organization’s Executive team? How are new corporate directives and goals communicated to IT? Would outsourcing some or all of IT for your organization lower IT expenditures?

Step 4: Software Application and Systems ReviewExample: Your organization is being charged with looking for a new clinical system that will support EHR to meet the new regulatory requirements. Your current clinical system can be upgraded to support EHR but you are not sure that the DON and other users are happy with the current system. A suggested action plan might be: o Identify the current and anticipated needs by interviewing and working with the clinical

staff and related departments such as finance) o Put the results of the needs analysis into a spreadsheet for review o Sit down with your current clinical vendor and determine where the existing application

can or cannot meet the needs identified in the steps above o Consider performing the same process with alternative vendors, particularly if the current

vendor cannot meet the required needs sufficiently Step 5: Review the Gaps between the Strategic Goals and the Current Operations

Examples of some of the gaps could include: o Growth goals for the organization may not be in line with current IT investment o IT staff may be improperly sized to support growth or meet the current needs o Software Applications may be identified for replacement sooner than expected o End-users lack sufficient training to maximize the use of existing applications o IT systems (hardware and infrastructure) may need to be replaced to meet the goals

Step 6: Develop the IT Short-Term and Long-Term Project Plan/TimelineExample: During the gap analysis, the following projects were identified as being needed to meet the strategic goals of the organization. o Clinical systems that support EHR, Home Health and Point of Care solutions o Wi-Fi support for multiple systems across the communities o Enhanced training for the clinical staff to support existing applications o Access to more computer systems across the organization

Step 7: Give Information Technology a “Seat at the Table”Example: Here are some ways to accomplish this goal in your organization

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o If you are a single site or smaller multi-site with a Director of IT or IT Manager position in your organization, include them in your monthly operations meetings so they have insight into what is going on in the rest of the organization and provide input. Consider having the executive team responsible for strategic planning to meet with them on a bi-annual basis to review the technology vision and discuss changes in the organization’s goals that might affect the plan.

o For larger organizations, you probably already have a Director of IT or VP/CIO position. Due to the complexity of the growth plans and organization changes, this position should be involved in the executive team handling strategic planning on a regular basis. Consider including them on these teams as well as at board meetings if appropriate. Operations meetings should be also attended on a regular basis so that tactical and strategic performance can be considered as the plan is reviewed.

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Q.3 What do you understand by the term business transformation? What process practices (or factors) that one needs to consider enabling smooth transformation of IT during such transformation?Answer:

Business transformation is about making fundamental changes in how business is conducted in order to help cope with a shift in market environment. Business transformation entails a wide-reaching, strategically driven campaign to improve the way in which a company conducts business. Often business transformation is undertaken as a response to shifting market conditions, eroding competitive standing, and deteriorating financial results. These symptoms prompt companies to undertake business transformation initiatives. Top-performing companies may also implement proactive business transformation programs in order to continuously improve their performance and maintain competitive advantage. For any enterprise, a successful business transformation campaign can yield substantial benefits including greater strategic clarity, re-energized leadership, improved operational efficiency and effectiveness, and stronger financial performance.

The need for business transformation may be caused by external changes in the market such as an organization’s products or services being out of date, funding or income streams being changed, new regulations coming into force or market competition becoming more intense. This management approach also incorporates Business Process Reengineering and is widely used:

to increase revenue or market share to improve customer satisfaction to cut costs

Business transformation is achieved by one or more of: realigning the way staff work, how the organization is structured, and the core product or service portfolio of the business and how technology is used. Typically organizations go through several stages in transforming themselves:

recognizing the need to change and gaining consensus amongst stakeholders that change is necessary

agreeing what form the change should take, the objectives of the change and a vision that describes a better future

understanding what the organization is changing from and what needs to change in detail designing the new organizational way of working and its support and management testing and implementing changes, usually in waves, typically over a number of years Bedding in the change so that the organization cannot move back to how it was and achieves the

intended benefits.

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Framework:

The Business Transformation Framework encompasses a model to assure alignment in two ways: ‘strategic alignment’ and ‘business – IT alignment’.

First, ‘strategic alignment’ is assured using the Business Transformation Framework ‘from top to bottom’. It starts with clarifying the strategy and objectives, because a clear strategy is vital to defining the changes. To further operationalize the strategic goals we define a set of guiding principles. Based on the guiding principles and an understanding of the current situation and we design the target situation. Action items refers to all kinds of activities needed to realize the required business transformation and to achieve the target situation. We use these action items to define the business transformation portfolio by grouping them into projects end programs. The business transformation portfolio can be seen as a roadmap in which all projects and programs are planned according to their priorities and interdependencies.

Second, the ‘business – IT alignment’ is achieved using the Business Transformation Framework ‘from left to right. Each column represents an aspect of operational management. We distinguish between four aspects, being: clients & services, processes & organization, information & applications and IT infrastructure and facilities. Clients & services is about which clients the organization wants to serve, what products and services the organization offers to them, how it distributes these, under what conditions and to what quality or service levels. The aspect of “Processes and organization” focuses at the internal processes, organizational structures and organizational cultural. The aspect “Information & applications” is about providing optimal support for the services, processes and employees in terms of data and information systems. The last aspect “IT infrastructure & facilities” refers to what is needed for the information systems to work according to specifications, like software development platforms, application and data servers, network infrastructure, data centers, and so on.

IT transformation is comprehensive change to an IT organization that cuts across its processes, technologies, culture, and sourcing and delivery models that enables continuous step-change improvements in business capabilities supported by significantly stronger IT capabilities at lower unit costs. It is a complete overhaul of an organization's information technology (IT) systems. IT transformation can involve changes to network architecture, hardware, software and how data is stored and accessed. Informally, IT transformation may be referred to as "rip and replace." As with any large-scale organizational transformation, IT transformation will impact workflow, business rules,

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what gets automated and perhaps most importantly -- the corporate culture. Many times, the goal of IT transformation is to change the IT department from being a reactive, inflexible organization to being a more pro-active, flexible part of the business that can respond quickly to changing business requirements.

As part of IT Transformation, businesses and clients go through IT strategy for 3-5 years to replace their existing legacy technology with newer or better technology. IT Transformation is assessed in terms of People, Process and Technology. The sponsorship is mostly within IT department and implementation of the strategy is completely IT driven. However, in today's era where growth is measured in terms of revenue / profit / customer service and SLA's, IT becomes an enabler for business to achieve these goals. So when business vision, mission and goals are considered, IT transformation automatically becomes the same as business transformation. Business users play an active role during this process and act as a key driver for the successful completion.

Process Practices that one needs to consider enabling smooth transformation of IT during business transformation:

1. Business Vision Obtain business stakeholders vision of the future of their business; Where do they expect

the business to be few years from now (generally 3-5 years depending on the size of business or industry)

Understand overall organization and the business Understand the core services and business processes Key concerns / challenges being faced in the business

2. Current State Assessment (CSA) Understand the AS-IS business process and business applications Conduct discussion sessions with business stakeholders Document all issues, manual processes, areas of pain points

3. Future State Define the 'To-Be State' for IT Systems, Infrastructure and business processes Apply solution(s) to business vision, manual processes and pain points Consider modern business, IT trends, Industry Standards and guidelines

4. GAP Analysis Defines what it will take to go from current state to defined future state Should consider new business processes, new IT applications Apply disruptive IT solutions e.g. Mobility, Automation

5. Define IT Solution Architecture Define solutions for various gaps identified and new processes/applications considered Perform initial Product Evaluation for solutions if needed. Consider Buy vs Build Identify Logical (functional view) and Physical (system view) IT solution and model

6. Develop Roadmap Estimate the timelines and effort for the various solution defined Perform cost analysis by considering price of infrastructure, IT systems (product / in

house development), hiring new people, and introducing new processes

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Break down solutions into various projects and assign stakeholders either from IT or Business

Propose a Road map to rollout the solutions.

7. Review and finalize strategy Review the proposed transformation process as draft via a presentation or a document Conduct sessions with various business unit stake holders and IT stakeholders Agree on the proposed solution and roadmap Refine and resolve any open issues or questions Baseline Strategy for CTO and CEO approval

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Q.4 Describe briefly various roles, responsibilities and accountability matrix that needs to be established at minimum for an IT department and briefly explain its strategic importance to the organization?Answer:

Responsible for Smooth IT Operations following roles are there in IT department:

1. Chief Information Officer: The Chief Information Officer of an organization is responsible for a number of roles. Firstly and most importantly, the CIO must fulfil the role of business leader. As a CIO must make executive decisions regarding things such as the purchase of IT equipment from suppliers or the creation of new systems, they are therefore responsible to lead and direct the workforce of their specific organization. In addition, the CIO is ‘required to have strong organizational skills. This is particularly relevant for a Chief Information Officer of an organization, who must balance roles in order to gain a competitive advantage and keep the best interests of the organization’s employees. CIOs also have the responsibility of recruiting, so it is important that they take on the best employees to complete the jobs the company needs fulfilling. In addition, CIOs are directly required to map out both the ICT strategy and ICT policy of an organization. The ICT strategy covers future proofing, procurement and the external and internal standards laid out by an organization. Similarly, the CIO must write up the ICT policy, detailing how ICT is utilized and applied. Both are needed for the protection of the organization in the short and long term and the process of strategizing for the future.

2. Service Delivery Manager: This is the most senior project-level business role. The Business Sponsor is the Project Champion who is committed to the project, the proposed solution and the approach to delivering it. Specifically responsible for the Business Case throughout (however formally or informally this may be expressed), the role will own the solution once delivered and will be responsible for the realization of any benefits associated with it. The Business Sponsor must hold a sufficiently high position in the organization to be able to resolve business issues (e.g. to force open closed doors) and make financial decisions. This role has a crucial responsibility to ensure and enable fast progress throughout the project. There should be only one person responsible for this role. This person should be committed and available for the duration of the project, providing a clear escalation route.

Responsibilities Owning the Business Case for the project Ensuring ongoing viability of the project in line with the Business Case Ensuring that funds and other resources are made available as needed Ensuring the decision-making process for escalated project issues is effective and rapid

Responding rapidly to escalated issues.

3. IT Plan and design manager: As the project’s technical design authority, the Technical coordinator ensures that the Solution Development Teams work in a consistent way, that the project is technically coherent and meets the desired technical quality standards. The role provides the glue that holds the project together while advising on technical decisions and innovation. The Technical Coordinator performs the same function, from a technical perspective, as the Business Visionary does from a business perspective.

Responsibilities Agreeing and controlling the technical architecture Determining the technical environments Advising on and coordinating each team’s technical activities Identifying and owning architectural and other technically based risk, escalating to the Project

Manager as appropriate Ensuring the non-functional requirements are achievable and subsequently met

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Ensuring adherence to appropriate standards of technical best practice Controlling the technical configuration of the solution Managing technical aspects of the transition of the solution into live use Resolving technical differences between technical team members

4. IT Project Manager: The Project Manager role is responsible for all aspects of the delivery of the solution. As well as providing high-level management direction to the project team(s), the role is focused on managing the working environment in which the solution is evolving. The Project Manager co-ordinates all aspects of management of the project at a high level. The Project Manager is expected to leave the detailed planning of the actual delivery of the product(s) to the Team Leader and members of the Solution Development Team. Although the Project Manager role is delivery-focused, this does not dictate from where in an organization the role is resourced. Appropriate sourcing of the role will depend on the skills and knowledge required. It is vital that the Project Manager takes responsibility throughout the duration of the project. This must include both business and technical delivery aspects of the project, from establishing the Foundations of the project through to the Deployment of the solution.

Responsibilities Communicating with senior management and the project governance authorities (Business

Sponsor, project board, steering committee, etc.) with the frequency and formality that they deem necessary

High-level project planning and scheduling, but not detailed task planning Monitoring progress against the baselined project plans Managing risk and any issues as they arise, escalating to senior business or technical roles

as required Managing the overall configuration of the project Motivating the teams to meet their objectives Managing business involvement within the Solution Development Teams Resourcing Specialist Roles as required Handling problems escalated from the Solution Development Teams Coaching the Solution Development Teams when handling difficult situations.

5. Team Leader: Reporting to the Project Manager, the Team Leader ensures that a Solution Development Team functions as a whole and meets its objectives. The Team Leader works with the team to plan and co-ordinate all aspects of product delivery at the detailed level. This is a leadership role rather than management role and the person holding it will ideally be elected by his or her peers as the best person to lead them through a particular stage of the project. It is therefore likely that they will also perform another Solution Development Team role (e.g. Business Analyst, Solution Developer or Solution Tester) in addition to their team leadership responsibilities. It is also feasible that the person carrying out the Team Leader role could be different from one time box to another, where time boxes have a different focus.

Responsibilities Focusing the team to ensure an on-time delivery of the agreed Products Encouraging full participation of team members within their defined roles and responsibilities Ensuring that the iterative development process is properly focused and controlled Ensuring that all testing and review activity is properly scheduled and carried out Managing risks and issues at the Development Time box level, escalating to the Project

Manager or Technical coordinator as required Monitoring progress on a day-to-day basis for all team activities Reporting progress to the Project Manager Running the daily team meetings ensuring they are timely, focused and brief.

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6. Systems Analyst / Solution Developer: The Solution Developer interprets business requirements and translates them into a deployable solution that meets functional and non-functional needs. A person assuming a Solution Developer role should ideally be allocated full time to the project they are working on. Where they are not full time, the project ought to be their first priority. If this cannot be achieved, significant risk is introduced with regard to time boxing. This risk needs to be managed proactively by the Project Manager.

Responsibilities Working with Business roles and Solution Testers to iteratively develop:

o The deployable solutiono Models required for the properly controlled development of the solutiono Models and documentation required for the purpose of supporting the solution in live use

Recording (and later interpreting) the detail of any:o Changes to the detailed requirementso Changes to the interpretation of requirements which result in re-work within the solutiono Information likely to impact on the ongoing evolution of the solutiono Adhering to technical constraints laid out in the System Architecture Definitiono Adhering to standards and best practice laid out in the Technical Implementation

Standardso Participating in any quality assurance work required to ensure the delivered products are

truly fit for purposeo Testing the output of their own work prior to independent testing

7. Business analyst: The Business Analyst is fully integrated with Solution Development Team and focuses on the relationship between the business and technical roles, ensuring accurate and decisive direction is provided to the Solution Development Team on a day-to-day basis. The Business Analyst ensures that the business needs are properly analyzed and are correctly reflected in the guidance the team needs to generate the solution. Active involvement of the business users in the process of evolving the solution is vital to the success of a project so it is important to ensure that the Business Analyst does not become an intermediary between the Developers and the Business Ambassadors and Advisors, but rather supports and facilitates the communication between them.

Responsibilities Ensuring all communication between Business and Technical participants in the project is

unambiguous and timely Managing development, distribution and baseline approval of all documentation and products

related to business requirements and their interpretation Ensuring that the business implications of all day-to-day decisions are properly thought

through

8. Solution Tester: The Solution Tester is fully integrated with the Solution Development Team and performs testing in accordance with the Technical Testing Strategy throughout the project.

Responsibilities Working with Business roles to define test scenarios and test cases for the evolving solution

In accordance with the Technical Testing Strategy: Carrying out all types of technical testing of the solution as a whole Creating testing products, e.g. test cases, plans and logs Reporting the results of testing activities to the Technical Coordinator for Quality Assurance

purposes Keeping the Team Leader informed of the results of testing activities

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Assisting the Business Ambassador(s) and Business Advisor(s) to ensure that they can plan and carry out their tests well enough to ensure that the important areas are covered.

The roles responsibility accountability matrix also known as RACI matrix describes the participation by various roles in completing tasks or deliverables for a project or business process. It is especially useful in clarifying roles and responsibilities in cross functional/ departmental projects and processes.

Responsible – Who is responsible for the execution of the task?Accountable – Who is accountable for the tasks and signs off the work?Consulted – Who are the subject matter experts who to be consulted?Informed – Who are the people who need to be updated of the progress?

Responsibility Chart

Creating a RACI Matrix (step-by-step)

1. Identify all the tasks involved in delivering the project and list them on the left hand side of the chart in completion order.

2. Identify all the project roles and list them along the top of the chart.3. Complete the cells of the chart identifying who has responsibility, accountability and who will

be consulted and informed for each task.4. Ensure every task has a role responsible and a role accountable for it.5. No tasks should have more than one role accountable. Resolve any conflicts where there is

more than one for a particular task.6. Share, discuss and agree the RACI Matrix with your stakeholders before your project starts.

Fig: RACI Matrix for an IT Department

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As you can see, this simple, color-coded matrix provides a very clear visual representation of how each role (and the person associated with that role) is expected to interact with the project deliverables. It also provides a clear depiction of the involvement required from each role to complete each activity.

Strategic importance to the organization:

1. Share information via technology‐based systems with customers/consumers and/or suppliers and change the nature of the relationship;

2. Produce more effective integration of the use of information in the organization’s value‐adding processes;

3. Enable the organization to create, develop, produce, market and deliver new or enhanced products or services or new value propositions based on information;

4. Augment people’s cognitive processes in generating knowledge and insight from information; they provide executives, management and professionals with information to support the development, implementation and evaluation of strategies.

An approach was adopted by Venkatraman in assessing how the strategic benefits from IT resulted from increasing the extent of business change (and risk). He described three types of ‘revolutionary’ uses of IT, which require considerable transformation in terms of what the organization does or how it does it:

-Business process redesign – using IS/IT to realign business activities and their relationships to achieve performance breakthroughs.-Business network redesign – changing the way information is used by the organization and its trading partners, thereby changing how the industry overall carries out the value‐adding processes.-Business scope redefinition – extending the market or creating new products, based on information, or changing the role of the organization in the industry, such as with the introduction of a new information‐enabled business model.

Supporting management in making decisions has always been an objective of deploying IT. Early MIS were designed to provide the information that managers determined they needed to make specific decisions. Recognizing that executives frequently make ‘unstructured’ decisions, a modelling capability was added. While these applications were typically referred to as Decision Support Systems in the 1970s, technological developments have seen them evolve into online analytical processing (OLAP), data mining, and business intelligence (BI) and analytics. Recent developments in external data sources, which are readily available via the Internet, plus the potential offered by knowledge ‐based and scenario planning applications, used in conjunction with analytics applied to extensive ‘big data’ sources enable organizations to explore and evaluate strategic options.

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Q.5 Who is responsible for IT Strategy in an Organization? Explain how the members identified for the Organization shall drive IT Strategy across the organization?

Responsible for IT strategy in an organization

A technology strategy has traditionally been expressed in a document that explains how technology should be utilized as part of an organization's overall corporate strategy and each business strategy. In the case of IT, the strategy is usually formulated by a group of representatives from both the business and from IT. Often the Information Technology Strategy is led by an organization's Chief Technology Officer (CTO) or equivalent. Accountability varies for an organization's strategies for other classes of technology.

Executing an IT strategy requires strong IT leadership; the Chief Information Officer (CIO) and Chief Technology Officer (CTO) need to work closely with business, budget and legal departments as well as with other User Groups within the organization

It is the IT Executive Committee or IT Strategy Committee (responsible) comprising of CTO, CIO, heads of different business units, at least one member from the board of director, along with CEO who are the driving force for IT strategy with CTO chairing the committee (accountable)

How the members identified for the Organization shall drive IT Strategy across the organization

The member identified for the organization can drive IT Strategy across the organization creating value, delivering value, capturing value, addressing business technology alignment and it should be designed in a way that non-technical audience can also read it.

Creating Value

In order to create value one needs to trace back the technology and forecast on how the technology evolves, how the market penetration changes, and how to organize effectively?

Capturing Value

To capture value one should know how to compete to gain a competitive advantage and sustain it, and how to compete in case that standards of technology is important?

Delivering Value

The final step is delivering the value, where a firms defines how to execute the strategy, make strategic decisions and take decisive actions?

Business–technology alignment

Primary objective of designing Technology Strategy is to make sure that the Business Strategy can be realized through Technology and Technology Investments are aligned to Business. There are frameworks (E.g. ASSIMPLER) to study current and future Business Strategy, assess Business-IT alignment on various parameters, identify gaps,and define Technology Roadmaps and Budgets. Technology Strategy facilitates the attainment of a company's vision through alignment of its information technology strategy with its business strategy.

The important components of information tech-strategy are information technology and strategic planning working together.

The IT strategy alignment is the capability of IT functionality to both shape, and support business strategy.

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The degree to which the IT mission, objectives, and plans support and are supported by the business mission, objective, and plans.

Audience

A technology strategy document is usually designed to be read by non-technical stakeholders involved in business planning within an organization. It should be free of technical jargon and information technology acronyms.

The IT strategy should also be presented to or read by internal IT staff members. Many organizations circulate prior year versions to internal IT staff members for feedback before new annual IT strategy plans are created.

One critical integration point is the interface with an organization's marketing plan. The marketing plan frequently requires the support of a web site to create an appropriate on-line presence. Large organizations frequently have complex web site requirements such as web content management.

Q.6 Describe briefly any three IT services provided from India. Based on the past experience, what should be the vision (strategy) for the next 3 coming years for the industry?

Three IT services provided from India

Some different types of information technology services include network security, network administration, data management and recovery, end-user console management and email administration. Many IT companies and departments also offer specialized support services for specific devices, operating systems or internal programs, which may include training and maintenance.

1. Network Security

Network security is a common area within the IT field, as it involves the creation of specific protocols and systems to protect the users on an company's Internet connection. This may involve installing anti-virus software, maintaining a corporate VPN or creating a list of restricted websites.

2. Network Administration

The IT department also monitors the network for any security risks and helps respond to threats as necessary. Similarly, many IT departments also offer network administration services, which typically include the initial setup of wired and wireless Internet connections, the management of all access credentials, and the monitoring of network usage to identify any inappropriate behavior or latency in the system.

3. End-user console management and email administration

Many IT services also work directly with employees to set up work stations, grant access to company software, and troubleshoot a variety of issues. The IT department also creates and manages company email accounts and lists.

Vision (strategy) for the next 3 coming years for the IT industry?

information technology is playing an important role in India today and has transformed India's image from a slow moving bureaucratic economy to a land of innovative

The IT sector in India is generating 2.5 million direct employments. India is now one of the biggest IT capitals of the modern world and all the major players in the world IT sector are present in the country.

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India's prime minister Narendra Modi has started 'Digital India' project to give IT a secured position inside & outside India.

Visione-Development of India as the engine for transition into a developed nation and an empowered society. It includes the following :-

1. e-Government: Providing e-infrastructure for delivery of e-services

2. e-Industry: Promotion of electronics hardware manufacturing and IT-ITeS industry

3. e-Innovation/R&D: Enabling creation of Innovation /R&D Infrastructure in emerging areas of

ICT&E

4. e-Learning: Providing support for development of e-Skills and Knowledge network

5. e-Security: Securing India’s cyber space.

6. e-Inclusion: Promoting the use of Information and Communication Technologies (ICT) for

more inclusive growth.

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Q.7 Describe the role of venture capital funding for IT industry? How should one evaluate to minimize the risk of funding and enable contribute growth to the industry?Answer:

Venture capital (VC) is a type of private equity, a form of financing that is provided by firms or funds to small, early-stage, emerging firms that are deemed to have high growth potential, or which have demonstrated high growth (in terms of number of employees, annual revenue, or both).

Venture capital firms or funds invest in these early-stage companies in exchange for equity–an ownership stake–in the companies they invest in. Venture capitalists take on the risk of financing risky start-ups in the hopes that some of the firms they support will become successful. The start-ups are usually based on an innovative technology or business model and they are usually from the high technology industries, such as information technology (IT), social media or biotechnology.

The typical venture capital investment occurs after an initial "seed funding" round. The first round of institutional venture capital to fund growth is called the Series A round. Venture capitalists provide this financing in the interest of generating a return through an eventual "exit" event, such as the company selling shares to the public for the first time in an Initial public offering (IPO) or doing a merger and acquisition (also known as a "trade sale") of the company.

In addition to angel investing, equity crowd funding and other seed funding options, venture capital is attractive for new companies with limited operating history that are too small to raise capital in the public markets and have not reached the point where they are able to secure a bank loan or complete a debt offering. In exchange for the high risk that venture capitalists assume by investing in smaller and early-stage companies, venture capitalists usually get significant control over company decisions, in addition to a significant portion of the companies' ownership (and consequently value). Start-ups like Uber, Airbnb, Flipkart, ReviewAdda, Xiaomi & Didi Chuxing are highly valued startups, where venture capitalists contribute more than financing to these early-stage firms; they also often provide strategic advice to the firm's executives on its business model and marketing strategies.

Venture capital is also a way in which the private and public sectors can construct an institution that systematically creates business networks for the new firms and industries, so that they can progress and develop. This institution helps identify promising new firms and provide them with finance, technical expertise, mentoring, marketing "know-how", and business models. Once integrated into the business network, these firms are more likely to succeed, as they become "nodes" in the search networks for designing and building products in their domain. However, venture capitalists' decisions are often biased, exhibiting for instance overconfidence and illusion of control, much like entrepreneurial decisions in general.

Characteristics:

High risk Participation in management Provided at earlier stage Finance to smaller and less mature companies Finance to new and rapidly growing companies Lack of liquidity Long time horizon

Types:

Early Stage Financing Expansion Financing Acquisition or Buyout Financing

Evaluation & Enable growth to the industry-

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Risks:

Market timing risk - Is now the right time for the business? It’s often hard to evaluate this risk, but nevertheless, it’s an important consideration. There are many stories of people saying I invented Facebook before Facebook, which may very well be true. But the market just wasn’t yet ready for it.

Business model risk - Is there a clear business model? Do the unit economics seem to work? If not, what are the assumptions required to achieve profitability?

Market adoption risk - Are there strong competitive players in the market? What are the major barriers to entry?

Market size risk - If the company is successful, is the exit scenario large enough to provide the types of returns our fund needs?

Execution risk - Does the team have the right skills and passion to reach their goals? If not, are they amenable to finding others to complement their skills?

Technology risk - Does the company have to develop a new technology that may not reach fruition, or may take much longer than expected? This is typically more prevalent in cleantech and hardware companies.

Capitalization structure risk - does the company have enough room in the cap table to take more investment necessary to grow while still ensuring employees and executives are well compensated?

Platform risk - Is the startup building atop YouTube, Twitter or Facebook? How strong is their relationship? Are their product plans in the direct path of the platform or complementary?

Venture management risk - Is the company receptive to feedback? Is the team candid about the state of the business?

Financial risk - How much money does the company require to achieve its goals? Is the financing risk manageable given the current environment and company trajectory?

Legal risk - Does the company have a high likelihood of lawsuit for patent or copyright infringement? Does the company have any outstanding complaints with early employees or founders? Are there regulatory challenges involved in this sector?

Deciding Factors:

Are you open to more active input from a venture capital firm? Do you appreciate the additional expertise and resources a VC firm could provide? Is loss of ownership and control an issue for you? Could you gain through a VC firms business connections? If you lack experience and could appreciate the additional support, a VC arrangement might

work for you. How do venture capitalists meet their investors’ expectations at acceptable risk levels? The

answer lies in their investment profile and in how they structure each deal. Timing Is Everything. More than 80% of the money invested by venture capitalists goes into

the adolescent phase of a company’s life cycle. In this period of accelerated growth, the financials of both the eventual winners and losers look strikingly similar.

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Q.8 what do you understand by the term “Business Dynamics”? Explain briefly the present IT industry scenario for each of the following factors or criteria.

a. Domestic market performance and forthcoming opportunities

b. International market performance and forthcoming opportunities

c. ITES opportunities in different verticals and countries

d. Opportunities in Cloud related business

e. Web technologies – build, operate and transfer

Answer:

“Business Dynamics” is concerned with learning in and about complex systems. Effective decision-making by growing dynamic complexity requires executives to become systems thinkers—to expand the boundaries of their mental models and develop ways to understand how the structure of complex systems creates behavior.

Business dynamics can be understood as the evolution of one single business as well as the evolution of businesses in an industry or in a region. The creation and growth of new firms and the decline or market exit of old firms are often regarded as key to business dynamism and economic growth. New firms are thought to be especially innovative and to play an important role as job creators. Based on these ideas, policy makers often believe that institutions, which foster firm entry, may ultimately enhance the overall economic performance of their country.

a. Domestic market performance and forthcoming opportunities

India is the world's largest sourcing destination for the information technology (IT) industry, accounting for approximately 67 per cent of the US$ 124-130 billion market. The industry employs about 10 million workforces. More importantly, the industry has led the economic transformation of the country and altered the perception of India in the global economy. India's cost competitiveness in providing IT services, which is approximately 3-4 times cheaper than the US, continues to be the mainstay of its Unique Selling Proposition (USP) in the global sourcing market. However, India is also gaining prominence in terms of intellectual capital with several global IT firms setting up their innovation centres in India.

The IT industry has also created significant demand in the Indian education sector, especially for engineering and computer science. The Indian IT and ITeS industry is divided into four major segments – IT services, Business Process Management (BPM), software products and engineering services, and hardware.

IT-BPM sector which is currently valued at US$ 143 billion is expected to grow at a Compound Annual Growth Rate (CAGR) of 8.3 per cent year-on-year to US$ 143 billion for 2015-16. The sector is expected to contribute 9.5 per cent of India’s Gross Domestic Product (GDP) and more than 45 per cent in total services export in 2015-16.

Market Size

The Indian IT sector is expected to grow at a rate of 12-14 per cent for FY2016-17 in constant currency terms. The sector is also expected triple its current annual revenue to reach US$ 350 billion by FY 2025#.

India ranks third among global start-up ecosystems with more than 4,200 start-ups##.

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India’s internet economy is expected to touch Rs 10 trillion (US$ 146.72 billion) by 2018, accounting for 5 per cent of the country’s GDP###. India’s internet user base reached over 400 million by May 2016, the third largest in the world, while the number of social media users grew to 143 million by April 2015 and smartphones grew to 160 million.

Public cloud services revenue in India is expected to reach US$ 1.26 billion in 2016, growing by 30.4 per cent year-on-year (y-o-y)^. The public cloud market alone in the country was estimated to treble to US$ 1.9 billion by 2018 from US$ 638 million in 2014^. Increased penetration of internet (including in rural areas) and rapid emergence of e-commerce are the main drivers for continued growth of data centre co-location and hosting market in India. The Indian Healthcare Information Technology (IT) market is valued at US$ 1 billion currently and is expected to grow 1.5 times by 2020^^. India's business to business (B2B) e-commerce market is expected to reach US$ 700 billion by 2020 whereas the business to consumer (B2C) e-commerce market is expected to reach US$ 102 billion by 2020.

Road Ahead

India is the topmost offshoring destination for IT companies across the world. Having proven its capabilities in delivering both on-shore and off-shore services to global clients, emerging technologies now offer an entire new gamut of opportunities for top IT firms in India. Social, Mobility, Analytics and Cloud (SMAC) are collectively expected to offer a US$ 1 trillion opportunity. Cloud represents the largest opportunity under SMAC, increasing at a CAGR of approximately 30 per cent to around US$ 650-700 billion by 2020. The social media is the second most lucrative segment for IT firms, offering a US$ 250 billion market opportunity by 2020. The Indian e-commerce segment is US$ 12 billion in size and is witnessing strong growth and thereby offers another attractive avenue for IT companies to develop products and services to cater to the high growth consumer segment.

b. International market performance and forthcoming opportunities

The digital revolution changes the nature of innovation.One of the key characteristics of the digital revolution is that it is nurtured by a different type of innovation, increasingly based on digital technologies and on the new business models it allows. In addition to making traditional research tools more powerful, it allows for new and near-costless types of innovation that require little or no R&D effort.

Firms will face increasing pressure to innovate continuously.Seven countries stand out in terms of economic and digital innovation impact: Finland, Switzerland, Sweden, Israel, Singapore, the Netherlands, and the United States. This technology-enabled innovation in turn unleashes new competitive pressures that call for yet more innovation by tech and non-tech firms alike.Because digital technologies are driving winner-take-all dynamics for an increasing number of industries, getting there first matters.

Businesses and governments are missing out on a rapidly growing digital population.In recent years, digital innovation has been primarily driven by consumer demand. Yet this increasing demand for digital products and services by a global consumer base is largely being met by a relatively small number of companies. Businesses need to act now and adopt digital technologies to capture their part of this growing market.

A new economy is shaping, requiring urgent innovations in governance and regulation.As the new digital economy is taking shape, offering it the right framework conditions will be crucial to ensuring its sustainability. Digital technologies are unleashing new economic and social dynamics that will need to be managed if the digital transformation of industries and societies are to deliver long-term and broad-based gains. A resilient digital economy also calls for new types of leadership, governance, and behaviors. A critical ingredient for the success and sustainability of the emerging system will be agile governance frameworks that allow societies to anticipate and shape the impact of emerging technologies and react quickly to changing circumstances.

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Cross-border data flows, digital innovation, and economic growth

The flow of digital communication between countries, companies, and citizens has been recognized for years as a critical driver of economic growth and productivity. Countries adept at fostering digital activity have witnessed the emergence of new industries as well as the accelerated development of traditional sectors. However, despite the intensive and extensive growth of the global Internet, concerns over growing barriers to digital flows are mounting.

c. ITES opportunities in different verticals and countries

India is regarded as the back office of the world owing mainly to its IT and ITES industry. The sector in India grew at a Compound Annual Growth rate (CAGR) of 15 per cent over 2010-15, which is 3-4 times higher than the global IT-ITES spend, and is estimated to expand at a CAGR of 9.5 per cent to US$ 300 bn by 2020.  India is also the world's largest sourcing destination for the information technology (IT) industry, accounting for approximately 67 per cent of the US$ 124-130 bn market.

Opportunities and Challenges:

The changing economic and business conditions, rapid technological innovation, proliferation of the internet and globalization are creating an increasingly competitive environment. The role of technology has evolved from supporting corporations to transforming them. Global companies are increasingly turning to offshore technology service providers in order to meet their need for high quality and cost competitive technology solutions.

IT and ITES industry, some of the challenges faced include:

Ability to create and maintain a truly world class proven global delivery model which would allow your organization to provide services to customers on a best shore basis. This would require round the clock execution capabilities across multiple time zones, access to a large pool of highly skilled technology professionals and a knowledge management system to reuse solutions where appropriate

Develop and expand a strong, comprehensive, best in class end to end solutions and service offerings in order help your clients gain market differentiation or competitive advantage and thus capture a greater share of your client’s technology budgets

Ability to scale when the opportunity arises. This would require constant investment in infrastructure and rapidly recruit, train and deploy new professionals

Manage revenue and expenses during economic downturn, enhance your organization’s capacity to withstand pricing pressures, commoditization of services and decreased utilization rates

Manage exchange rate volatility and counter party risk in treasury operations Expand your client list across business verticals to reduce over dependency and risk of losing

substantial market share Maintain superior and sophisticated project management methodology in line with global

quality standards and ensure timely, consistent and accurate execution to achieve highest client satisfaction

Ensuring successful integration of inorganic growth opportunities that your organization may undertake from time to time across geographies

d. Opportunities in Cloud related business

SaaS applications are designed for end-users, delivered over the web  PaaS is the set of tools and services designed to make coding and deploying those

applications quick and efficient 

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IaaS is the hardware and software that powers it all – servers, storage, networks, operating systems

Security as a Service: Many security applications have been moved into the cloud, with the latest being security suites. Some notable vendors are offering hosted security solutions for desktops and servers -- the desktop solutions work with a host system to deliver anti-malware, firewall, antiphishing and several other security capabilities -- fully integrated with the desktop. The advantages offered by hosted security include up-to-date protection -- no signature updates needed -- deep packet inspection taking place at the host and comprehensive reporting.

Elastic Clouds: Companies such as Amazon are now offering services where virtual servers can be rented to run customer applications. The idea is that a customer can instantly scale as needed, have complete control over a virtual instance of a server OS and pay based upon demand. At the same time, a method like Amazon's EC2 is a way for customers to leverage cloud computing. That service can also be used by solution providers to build out virtual data centers, which then can be provisioned to create cloud services to customers. In other words, services such as EC2 can be used to create an instant cloud-related business.

Virtual Desktop Infrastructures: Many businesses are looking to desktop virtualization as a method to centralize and control PC desktops. A VDI works by delivering a virtual PC down to a client device or end point. Users then have full access to that virtual PC either as a remote client or using synchronization technology. VDI is poised to become a cloud computing service, where custom virtual PCs can be created and then delivered down to an endpoint. Customers pay for access to that virtual PC, which is also constantly backed up and part of a business continuity solution.

e. Web technologies – build, operate and transferIn the Build-Operate-Transfer (BOT) Model, the client is offered a dedicated facility through which they can leverage the service providers’ world-class technical infrastructure, processes and execution capabilities. The dedicated facility is staffed either by service provider or client's resources or a mix of both, depending on the clients' need. BOT model enables customers to rapidly start offshore operations and later transfer the offshore development centre as their own subsidiary/captive centre. BOT ensures faster time-to-market, with guaranteed service performance from day one. At the same time, it builds operation and maintenance competencies within your organization.

The clients see the following advantages by working with BOT model:

Faster Time to Market with lower operational costs Lower Organization Costs Risk Diminution Flexibility Process Expertise

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Q.9 An IT company Tech Innovators LLC (TI) specialized in technology and provides services around it for the past 18 years. Another company specialized in financial services business (GFS PLC) merge to leverage best of both organizations to increase their global market share. Describe briefly the high level activities that you will take up as IT Director for the merged organization.Answer:

As IT Director of the organization it would be essential to focus on 3 important priorities for a successful integration post-merger, each of which carries risks and benefits for the whole organization.

- IT department must ensure business operations run as usual during the integration process.- Combine the IT departments of merging companies with an aim to reduce costs or recognizing

other synergies.- Provide IT support for integrating all business units while establishing a revised architecture for

the long-term business objectives of the company in its new iteration.

The entire IT Integration process will be carried out in the following steps:

Step 1: Participate in Due-Diligence Process

It is extremely important to first understand the strategic objectives of the merger. It will help to align the integration plan with the business needs of the merger.

In the due-dilligence process, it is imperative to also identify the following IT aspects with respect to Target Company:

- Potential obstacles to integration like Incompatible platforms that will require a work-around- Potential liabilities of the target, such as the massive underinvestment in technology, like

outdated architecture and systems.

Step 2: Analyse IT Requirements

For the integration to be successful the IT infrastructure of the organization must be scalable. Hence to begin with, it will be required to gather explicit knowledge about the company's architecture.

Areas of analysis include the following:

• Hardware, software, and network systems• Enterprise platforms (e.g., ERP and/ or CRM systems)• Corporate programs for specific lines of business, products, services, and vendor platforms

This analysis will help to determine which systems to keep, what data is important and how much integration is needed before the companies are technically joined.

It is also important to gauge the target company’s in-house and outsourced capabilities, verify whether a shared-service model is in place, in order to utilize them as a part of the IT integration plan.

Step 3: Prioritize Integration Initiatives

Given that IT resources are limited the IT integration will be planned in conjunction with business teams to decide how best to prioritize projects.

These priorities are to be considered across three dimensions:

• Business impact, including regulatory compliance, risk management, and possible rationalization of services or product lines

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• Ease of implementation, including technical complexity, resource demands (both personnel and hardware), and the degree to which certain projects are interdependent with others

• Expected business benefit, including potential cost savings and growth in revenue and/or market share

Step 4: Develop an Integrated Implementation Plan/Road Map

Once integration priorities for both the IT department and the new corporate structure have been identified, an overall integration plan will be developed that includes sub-projects, detailed timelines, risk management and contingency plans.

By working with functional sub-teams, it would be necessary to understand the true impact of integration and form realistic time and cost estimates.

Furthermore, it should include key conditions and success factors for each step.

Step 5: Set up a Strong Governance Model

A strong governance structure will be created in order to ensure that IT and business lines are aligned throughout the integration process. The ultimate goal of governance is to provide a clear direction ensuring on-time and within-budget completion of the integration activities, while realizing all potential cost savings and synergies.

A key reason that strong governance is so crucial for merger integration is timing. Merger integration efforts typically occur over a sustained period of time, during which circumstances can evolve and many elements of the original plan can change. A solid governance structure that encompasses IT and business will help ensure that these changes get addressed in a consistent manner across the combined firm, rather than in silos.

Step 6: Execute the Integration plan

Once the plan is complete, the actual hands-on work must be started and completed as soon as possible without any impact to business.

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Q.10 With the current decline in performance of many IT companies over the past 4 years, what would be the top 10 strategies that India needs to take to bring change in IT scenario in next 2 years?Answer:

In last 4 years, the Indian IT industry has been disrupted. There has been tremendous growth in areas like artificial intelligence (AI), cognitive computing, data analytics, the so-called Internet of Things, mobile technologies, and cloud-based computing, all clubbed under that all-encompassing term - Digital.

IT companies/vendors spent much time defending their legacy business by writing code for and maintaining purpose-built enterprise applications that they ignored, responded poorly, or mismanaged the disruptive innovations taking place in IT.

At present, Indian IT Industry faces three broad challenges:

1. Weak IT spends in financial services and healthcare verticals coupled with rise in insourcing by select financial services clients

2. Deflationary impact of automation on revenue. Automation savings built in large deals/renewals puts downward pressure on revenues. Earlier, automation worked best for standardized, repetitive tasks. But innovations such as IBM Watson, the Google self-driving car, and new flexible robots are redrawing the boundaries about the kinds of work that can be automated.

3. Lack of adequate participation in digital. Indian IT has lower share in early-stage digital technologies.

The top 10 IT strategy technology trends that will help regain IT growth:

1. The Device Mesh

The device mesh refers to an expanding set of endpoints people use to access applications and information or interact with people, social communities, governments and businesses.

The device mesh includes mobile devices, wearable, consumer and home electronic devices, automotive devices and environmental devices — such as sensors in the Internet of Things (IoT).

2. Ambient User Experience

The device mesh creates the foundation for a new continuous and ambient user experience. Immersive environments delivering augmented and virtual reality hold significant potential but are only one aspect of the experience.

The ambient user experience preserves continuity across boundaries of device mesh, time and space. The experience seamlessly flows across a shifting set of devices and interaction channels blending physical, virtual and electronic environment as the user moves from one place to another.

3. 3D Printing Materials

Advances in 3D printing have already enabled 3D printing to use a wide range of materials, including advanced nickel alloys, carbon fiber, glass, conductive ink, electronics, pharmaceuticals and biological materials. These innovations are driving user demand, as the practical applications for 3D printers expand to more sectors, including aerospace, medical, automotive, energy and the military.

4. Information of Everything

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Everything in the digital mesh produces, uses and transmits information. This information goes beyond textual, audio and video information to include sensory and contextual information. Information of everything addresses this influx with strategies and technologies to link data from all these different data sources.

Advances in semantic tools such as graph databases as well as other emerging data classification and information analysis techniques will bring meaning to the often chaotic deluge of information.

5. Advanced Machine Learning

In advanced machine learning, deep neural nets (DNNs) move beyond classic computing and information management to create systems that can autonomously learn to perceive the world, on their own.

DNNs (an advanced form of machine learning particularly applicable to large, complex datasets) is what makes smart machines appear "intelligent." DNNs enable hardware- or software-based machines to learn for themselves all the features in their environment, from the finest details to broad sweeping abstract classes of content. This area is evolving quickly, and organizations must assess how they can apply these technologies to gain competitive advantage.

6. Autonomous Agents and Things

Machine learning gives rise to a spectrum of smart machine implementations — including robots, autonomous vehicles, virtual personal assistants (VPAs) and smart advisors — that act in an autonomous (or at least semiautonomous) manner. While advances in physical smart machines such as robots get a great deal of attention, the software-based smart machines have a more near-term and broader impact.

In fact, some customers today favor self-service over personal interaction. For example, many young adults in their 20s and early 30s prefer to buy insurance online or use mobile banking rather than visiting an insurance agent or a physical bank branch.

VPAs such as Google Now, Microsoft's Cortana and Apple's Siri are becoming smarter and are precursors to autonomous agents. The emerging notion of assistance feeds into the ambient user experience in which an autonomous agent becomes the main user interface.

7. Adaptive Security Architecture

The complexities of digital business and the algorithmic economy combined with an emerging "hacker industry" significantly increase the threat surface for an organization. Relying on perimeter defense and rule-based security is inadequate, especially as organizations exploit more cloud-based services and open APIs for customers and partners to integrate with their systems. IT leaders must focus on detecting and responding to threats, as well as more traditional blocking and other measures to prevent attacks. Application self-protection, as well as user and entity behavior analytics, will help fulfill the adaptive security architecture.

8. Advanced System Architecture

The digital mesh and smart machines require intense computing architecture demands to make them viable for organizations. Providing this required boost are high-powered and ultraefficient neuromorphic architectures. Fueled by field-programmable gate arrays (FPGAs) as an underlining technology for neuromorphic architectures, there are significant gains to this architecture, such as being able to run at speeds of greater than a teraflop with high-energy efficiency.

9. Mesh App and Service Architecture

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Monolithic, linear application designs (e.g., the three-tier architecture) are giving way to a more loosely coupled integrative approach: the apps and services architecture. Enabled by software-defined application services, this new approach enables Web-scale performance, flexibility and agility. Microservice architecture is an emerging pattern for building distributed applications that support agile delivery and scalable deployment, both on-premises and in the cloud. Containers are emerging as a critical technology for enabling agile development and microservice architectures. Bringing mobile and IoT elements into the app and service architecture creates a comprehensive model to address back-end cloud scalability and front-end device mesh experiences. Application teams must create new modern architectures to deliver agile, flexible and dynamic cloud-based applications with agile, flexible and dynamic user experiences that span the digital mesh.

10. Internet of Things Platforms

IoT platforms complement the mesh app and service architecture. The management, security, integration and other technologies and standards of the IoT platform are the base set of capabilities for building, managing and securing elements in the IoT. IoT platforms constitute the work IT does behind the scenes from an architectural and a technology standpoint to make the IoT a reality. The IoT is an integral part of the digital mesh and ambient user experience and the emerging and dynamic world of IoT platforms is what makes them possible.

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Q.11 Explain briefly the dynamics of IT business for the forthcoming years between India and United States with respect to the following statements arising out of recent political, financial / economic changes that has occurred recently.

a. Restricted IT and ITES outsourcing activities from India.

b. Utilization of local skill sets from United States of America.Answer:

a) Restricted IT and ITES outsourcing activities from India.

US President-elect Donald Trump campaigned fiercely over the last 18 months, pitching for several things, including a re-write of the US immigration policy and bringing back jobs lost to outsourcing. This has a direct bearing on Indian IT.

The Indian IT industry makes about 60 per cent of its $100 billion plus revenue from the US — through the jobs outsourced by companies in America. Also, if reforms in the H-1B system see minimum wages going up for foreign workers, Indian IT companies may have to shell out higher wages.

Multiple challengesThe Indian IT sector is already facing multiple challenges — from a shrinking pie for its traditional services business, and increasing competition to narrowing margins.

Industry body Nasscom is all set to revise growth for the sector down to single digits in 2016-17. Now, if companies in the US are forced to limit outsourcing, there may be a bigger risk for these companies. During his campaign, Trump warned companies of a 35 per cent tax if they “fire their workers, move to another country and ship their products back to the US”.

However, given the large contribution of the Indian IT industry to the US economy through taxes, and CSR contributions, Trump may not come down too heavily.

Cost increaseThough most industry experts say that Indian companies may see their wage costs go up with local hiring, the industry is in denial.

A Nasscom report says that the industry pays equal wages to US nationals as well as Indians on H1B visas. In 2013, while a US citizen was paid about $81,447 a year for his work, an H1B visa holder was paid $81,022, with an additional $15,000 on visa and ticket costs for the individual and his spouse/family. It adds that it is talent shortage that makes US companies hire from India. Nasscom quotes a report that shows 46 per cent of openings in STEM jobs go unfilled for more than a month in the US.

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