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New Value Leadership Group Strategy Paper

India: An Emerging Research Cluster

By Professor Srinivasa Rangan

Professor Rangan provides cutting-edge insights into the strategies companies are applying to leverage the emerging scientific research cluster in India.

This paper is based on a global Value Leadership Group next practice strategic research project involving the research centers of more than 20 companies in India including Philips, ABB, Motorola, HP, GM, and the Tata Group.

Professor Rangan’s paper builds on his work of almost 10 years with Professor Michael Porter at Harvard University.

Click here to download the complete study in PDF Format

The New Competitive Paradigm in European IT Services – Global Strategy Conference
in Stockholm

In June 2007, the Swedish investment bank, Handelsbanken Capital Markets, and the Value Leadership Group, hosted a global strategy conference in Stockholm. The theme of the conference was – The New Competitive Paradigm in European IT Services.

The Value Leadership Group provided exclusive analysis and CEOs from industry leaders gave important new insights into the competitive dynamics and likely future direction of the European IT services industry.

More than 125 senior executives from 18 countries and a cross section of industries were in attendance. Delegates and speakers gave this event the highest ratings.

Click here to download a 1-page anaylsis of the conference

Does your Offshoring
strategy create differentiation
and greater business value?

Read an exclusive interview on offshoring strategy with Peter Schumacher.

Best practice companies – regardless of size – are those that leverage offshoring to do things they would not be able to do otherwise. You can entrepreneurially rethink your business and implement organizational and service innovations.

Companies that are not thinking about offshoring strategically are likely to miss this opportunity.

This interview was released in Belgium in July 2008 in “Offshore Update” a publication of Applied Development, continental Europe’s first venture funded offshore services firm.

Click here to download the 1-page interview in English Language

Click here to download the 1-page interview in Belgian-Dutch Language

The New Competitive Paradigm

A new global competitive paradigm is challenging the status quo

A new global economic paradigm is taking shape, triggering a broad and fundamental shift in the underlying competitive dynamics of local and global businesses. This catalytic transformation is changing the rules of the competitive game for businesses – regardless of their size, the industry in which they operate, and the country in which they are located. Companies can no longer seek protection in the traditional positions they have built in their domestic markets. In the new global economic paradigm everything is up for grabs.

The rapid expansion of offshoring and the corresponding rise of India to a world class global services and value cluster within the course of just one decade, show that the very nature of globalization is changing too. The slow and bureaucratic way of globalizing belongs to a bygone era. Today, a formidable mix of powerful macro- and micro-level forces including – deregulation, new technologies and the internet, the free flow of capital and ideas, and a new cadre of globally minded entrepreneurs with the intent to disrupt traditional markets – are together creating a fast paced and rapidly changing global competitive environment that is challenging the status quo.

Companies face complex strategic and operational challenges

In many industries traditional firms in Europe and the USA now face powerful new challengers from India and other emerging markets. These challengers are leveraging large highly qualified talent pools, low operating costs and operating model innovations to bring into play a new system of assets that is difficult for many incumbent firms to emulate. Many firms have been caught off-guard by the rapid pace at which these challengers have expanded and encroached their business.

Tactical cost cutting and conventional efficiency improvement initiatives will not solve the competitive dilemma many companies face. As the rules of the game change, companies must develop a broad and complex mix of new strategic and operational initiatives that cut across corporate functions, build new capabilities and perspectives, and most importantly, deliver more client value. In short, many companies have to recalibrate their executive mindsets and rethink their business strategy, alliances, market positioning, value proposition as well as their operating and business models.

Moreover, strategies for winning in this new environment come with significant implications for the soft factors of a successful business requiring new forms of global leadership, governance, organizational culture, and team management. Managing large culturally diverse organizations across distance and time in an integrated way calls for a more sophisticated, entrepreneurially oriented, and nimble set of managers. That is, a new kind of global mindset and mix of capabilities are required to win in the new global competitive paradigm.

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