The impetus for Canon's pioneering entry Bepersonal copier business came from an overseas sidary—not from planners in Japan Be gn of the stratezy hierarchy remains valid—to uosstency up and down the organization, But this cy is better derived from aclearly articulated stra Biatthan from infexibly applied top-down plans. In Ute challenge willbe to enfranchise employees emeans 10 accomplish ambitious ends, eldom found cautious administrators among the ements of companies that came from behind to Bie incumbents for global leadership, But in stu fiizations that had sur 5 who, for whatever reason, lacked ndered, we invariably eto commit their companies to heroie goals Mbit lay beyond the reach of plannin conservative goals they set failed to gen- and existing ation much useful guidance. Financial ie mission statements just cannot provide sen rection that isa prerequisite for winnin alcompettive war indofconservatismis usually blamedon the finan fos But we believe that in most eases investors Bi sioc-erm orientation simply reflets their lack Elie reich goals. The chairman of one company that even after it improved return on fenployed to over 40 percent (by ruthlessly divest ster businesses and downsiit the company to an 8:1 price hers), the stock ‘We don't tust eve shown no ability to achieve profitable growth, the denominators, and per lb taken over by a company that ean use your more creatively.” Very little inthe track record age Western companies warrants the confidence Bock marke, Investors aren't hopelessly short-term: Gsiiably skeptical that fop management's caution reflects a apabilties—this is the real challenge for top Bait. Only by rising to this challenge will senio Bin the courage they need to commit them Efi their companies to global leadership. SECTION FOUR: STRATEGIC ACTION 5BO Infosys Consulting in 2006: Leading the Next Generation of Business and Information Technology Consulting There is no doubt in my mind that ive years from now, the Infosys Consalting model will be the standard way of doing things where technology development i done afsite, We are one of fastest rowing IF consulting firms int wr to break with old habits and take a chance on anew better model and recraling the right people —top ser talent who understand our inovative approuch Steve Prat CEO, In ‘Aneesha Capur and Robert A. Burgelman In January 2006, the five managing partners of Infosys Consulting (ICD, also known to the leadership of IC's arent company Infoxys Technologies as “the dream team,” congregated at the St, Regis resort in Orange County, California for thei first team meeting ofthe CEO and managing director Steve Pratt, COO and mao: aging director Paul Cole, managing director Romil Bahl ‘managing director and founder Raj Joshi, and managing tor Ming Tsai, (see Exhibit 1 for management bios) ll proud of how much the company had achieved cits inception in April 2004 as a wholly owned US. subsidiary of Infosys Technologies, The firm had more than 100 consulting en its inception in April 2004 to over nary 2006, achieving its wo ye jements and had grown from 1) employees in recruiting target It was also on plan for both its own revenue target and its target contribution to Infosys Technologies’ revenue Source: Aneesha Capue prepared this case under the supervision of Professor Robert A. Burgelman athe bss for elas dscvesom ahr than itsrat ithe fective or ineffective handing of an dn Copyright © 2006 by the Board of Tastes of te Leland Stand inssion 0 repraduce materia, mal the Case Weitng Ole a nos sanded or wrt: Case Wring Office Stanford Gea ae School of Business, S18 Menu Way, Sani Unser. Stan ‘CA 94305.8015, No ato this publica sredinaretrieval syste, used na spreadsheet, or ranted in foum or by any means elem, mechanical, photocopying recon Jing, oroertze without the por School of Busines.59D. FAat TW, DESIGN AND IMPLEMENTATION OF TECHNOLOGY STRATEGY: AN EVOLUTIONARY PERSPECTIVE EXHIBIT 1 Executive Bios of ICI Managing Partners Steve Pratt, Chief Executive Officer and Managing Director With over 20 years of experience in business consulting, Pratt had an established rack record of growing innovative consul practices that excelled al chent service, Por fo joining Infosys Consulting, Pratt was a partner wih Deloite Consulting and ‘ovfoundar ofthe Delotte CRM practice. ‘Asa founder, CEO and managing director of infosys Consulting, Prat fundamentally transformed the consulting ious Ha created a now brand of ensuing fim—one that takes innovative azoroaches fo delvering mare compettve operations, wit ts clients Pra was nominated as one ofthe Top 25 Consultan in the Word in 2008 and 2008 in Consulting Magazine an has hail several Fortune 800 companies, His primary areas of expertise inckided helping cents imorove the valve ol their eatonships wth customers, and hel became more compative. In a survey of Siebel systems Jonts consistent rated Pratt a8 #1 in Customer Sa ‘As co lourver (with Bo Manning, now CEO of Pkolal Software) a he Delote CRM practice, Irom 1995 o 2002, Fra Gell practice to over 3,000 papa and aver $7500 in reverus. Pratt was frequently published on the topes of Customer Stategy. CRM and Web-based Sales and Service, He reco Bachelors and Mastere Dagrees in Electrical Engineering Paul Cole, Chief Operating Otticer and Managing Director ‘hs a ounder and managing sirectoro Infosys Consuting, Cale was responsible fora sales an operations Wih over 25 yeaa ‘experince in consulting an Information Tecnnolag, Cole provided IT consulting services to some ofthe world largest com fe had extonswe experience in customer relationship management anc was the global leader or the DRM service neat Gemini Emst& Young. He wes responsibi fora $18 CRM practice at Cap Gemini and isa noted industy expert nthe td managed the mobifzaion and implementation ofa three yoar company-wide tanslormation eff, which accomplished sgl Dperating peromance improvements, He was als a vee preeidont with Mercer Management Consulting “Throughout hs career in IT consulting, Cole served giogal Fortune 500 cons across several industries, He has manage consulting engagements for conts such as Lloyds TSB, Heuwlet Packard, Scottish Enorprses, SBC Communications, Wal Oil ‘Word, IBM, Texas Instruments, and GTE ‘Cola revowed a Bachelor of Science in Marketing: Management from Benttey Colege Romil Bani, Managing Director ‘ith more than 15 yoats experience helping clens wth businesse-business strategies, strategic technology ection and large-scale technology. enabled transformations, Bah led the Industry Practices and Service Otfering portolo forte fem. ‘Specicaly, Gat led th fms Business/T Strategy areas Ineuding Business Aligrment, Next Generation IT and Portola Assessment using the trm's Competitve Advantage framework Bahl spent over eight years at A. TKeamey"EDS, wth Mis last role asthe leader of EDS’ 6,000 person Consulting Serves ll He specialized in strategic planning, new cusiness incubation andiauncn, Iradaticn to his EDS Gonsutng Serves experience, Bah's provious roles included leader of A. Kearney’s Europes Srratagie Technology and Transiormation Practice, based in Londoa, Prior total he workod with Deloitte Consulting an 86a Southwest ragion's Strategic information Systems Planning eam ‘Bahl received an MBA with a specialization in Information Systems Management rom Bachelor of rom OMET, Ina through the third quarter of its second year of existence, for company rankings). They also faced internal Moreover, ICI's managing partners were confident that lenges of leveraging Infosys Technolo the subsidiary had contributed to Infosys Technologies’ productively with the parent company and mii ranking in Wired magazine's Top Ten Company list ining growth as they built the organization. In ail May 2005 and high ratings from analysts in 2004 and each managing partner was committed to “chil 2008 (see Exhibit 2) the rules of the game within the consulting ini However, the five managing partners saw several in the founding partner Raj Joshi’s words. By if challenges ahead for ICI. Driven by Infosys Technolo- ing Infoxys Technologies’ approach (0 gies’ COO Kris Gopalakrishnan’s edict to “compete the leadership team at ICI believed the firm had el ‘with the best.” the team aspired to be ranked alongside a unique model in business and information tei IBM and Accenture, leaders in the business and infor- that shortened the Tifecye! mation technology consulting industry (see Exhibit 3 ‘consulting to technology implementation reiSECTION FOUR: STRATEGIC AC! bk 1 (Continued [esl Managing Director bunds and managing director o Infosys Consuting, Joshi had respanstilty for developing and building the Enterprise ions end T Strategy practices ofthe company, He was alsa architect ofthe fim’ Value Realization Model-a now poh that guides technology-enabied business iransformation engagements while delivering measurable business valu, Hos had extensive experience in Information Technology consulting services and has delvered clent engagements that have ie ene systoms development fe cyle, Joshi managed projects inIT strategy, business transformation, EAP Beriations, cstom appkcations davolopment, ADM outsourcing ang olehore davelopment and raintenance Besialso delivered projects hat included aspects of business strategy, business process reengineering, change management Buigrizatonal design along-wrt IT eloments Pix tooining Infosys Consulting, Joshi was a partner wih the U.S. practice of Deloitte Consulting wiere he held a numberof Hisnp postions. He founded Delite Orfshoe in India and was the CEO ofthis en for more than the years. He played a lin stucturng anc managing con relationships that leveraged the offshore delivery model, Some of his ther roles included hggoba allancos and oading he IT precioe for one of Delate’s geographical regio BProuout his career n IT consung, Josh served global Fortune 500 lens across several industies. He managed majo Bling angagcmens or cents such as ATAT. Agint, Alcatel, BP, DHL, Fujsu, General Motors, Hewfet Packare, Honeywel, Roa, Sun, Texas Instruments ard Toshiba Hosireceived an MBA from the Universiy of Taxas at Arlington and also raced Masters and Bacholors dogr8es in Chemica 21 years of management consulting experience, Tsa had overall eezonsibity for a number o industry groups at inisng Reta and Consumer Preducts, High Tecnnolagy ang Disorete Manufacturing and Aerospace and Automorive, He Blt onal responsibilty fr the professional davelopment of employaes, 3. development. business transformation and process re-engineeiing, customer relationship and stagemont, and e-commerce. His cents included Wal'Mat, Target, CVS, Royal Ahold, Walgreens, Sears, Boots, Moto, fa Kal Foods, Miler Breving, Coca-Cola, P&G, American Express, ATAT, MeGra-Hil, Microsoft and Xerox ri rosy, Tsa was wit IB Business Consulting Service where he held several leadership postions, including the lace o! the Retail Industry, where he had overall responsibilty or driving IBM's real business. Prior otha ol, Tsai was Bie consuling leader fr the Distributon Sector (CPG, Reta and Travel & Transportation), whore he had eros-industy Basti IBM strategy consulting practice. Tsa joined IBM when i accuired Mainspring an e-business strategy consulting bine of 2001 aro inng Mainspring, Tsai was a pariner at Ernst & Young whore he was a co-leader of te eCommerce Strategy practice Bierce. Ealir, Tsai was a senior manager with The Boston Coneulting Group and a senior consuitart with Arthur Beeen& Co's Klanagement Infomation Consulting Divsion (which ater becama Accenture) Bsieceved an MBA with honocs trom Columbia Business Sehoal where he was elected fo the Beta Gamma Sigma National bey and averted the Banjamin Hermann priza for Marketing Ex Engineering trom Yalo UnWversty Bs of a typical client engagement and delivered in India rather than work with third party companies like Bile bencfits to clients. Infosys Technologies. From 1993 through 1999, as US. firms gained confidence in working with Indian compa- os mye age lower price points, Indian companies like Infosys Tech Bilition of global Information Technology (IT) nologies started expandi their footprint by adding Bietonpanies in India bean in the 1990s with the service lines, nt oF application development and mainte One of Infosys Technologies’ main objectives was Hesicesby Americancompanies. BusinessProcess fo increase revenue through repeat business with the conducted company’s client base. To that end, Infosys Technologies Bie nits, for example, companies like Gen- offered clients new opportunities to work with the com: Hise would perform BPO through subsidiaries pany. Infosys Technologies expanded its service offer