L&T 5 Forc
L&T 5 Forc
L&T 5 Forc
Keshab Panda Chief Executive, L&T Integrated Engineering Services (IES) Larsen and Toubro Limited
My Points of View...
My Points of View...
2009 Population 738 Millions Population 307 Millions 2009 USA -2.73 % 2009 EU -4.19 % 2014 China +9.51 % 2009 India +5.36 % 2014 India +8.08 % China +8.50 %
Mirroring the industrialization of the economy, share of industry and services has been consistently increasing
Survival of US & European Industries (An Example- Engineering Procurement & Construction Projects)
Typical Rates
Project Engineering / Commissioning Rates Europe Americas
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ESO providers clients competed profitably, thus far, with a fair degree of control in their dominant markets.. Balancing the market forces at play..
New Entrants
Threat of New Entrants Bargaining power of Buyers
Suppliers
Bargaining power of Suppliers
Buyers
Threat of Substitute
Substitutes
In the borderless world... Opportunities galore... Challenges tougher... Resources limited... Times compressed...
Opportunities
New Products Greater Volume Broader Price Points Lower Cost Resources Larger Capital Pool More Resources
Challenges
Increased Competition Complex barriers for entry Increased risks Supplier bargaining Power Buyer bargaining power New Entrants
Companies can no longer afford complete ownership of all resources . . . But, need more resources to meet demand in time
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ESO services providers clients are transforming the ownerships of their value chain, that are being redesigned to compress time to value...
Outsource?
Buyer behaviors
Product Development
Product Engineering
After-Market Management
CRM
Outsource?
To build right products at right time, everything is on the table for ESO providers, but, have to deliver beyond cost... It is value-to-cost ratio... Reduced time-to-value... Increased service velocity on a global basis
Product Development
Product Engineering
After-Market Management
CRM
Product Specification
Concept Design
Detail Design
Prototype Build
Test
Production Launch
Sustenance Engineering
Concept Sketch
CAID 3D Modeling
Clay Model CAE Build Planning Drafting/ Detailing Vendor Coordination NDT Assembly Field Test Assembly Manuals Engg. Change Assembly Line Value Engg. Product Improvement
Thereby increasing focus and ownership on core resources that provide them competitive advantage and greater degree of control on value realization. The rest is leveraged from reservoir of global resource pool
Product Specification
Concept Design
Detail Design
Prototype Build
Test
Production Launch
Sustenance Engineering
LEVERAGEABLE Resources
Competitive Advantage Ownership Of Resources
Selective Ownership
CORE Resources
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My Points of View...
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ESO providers ability to provide competitive differentiation across various dimensions of Client Product Development Needs are critical for their success...
Risk Mitigation
Local Adaptation
Differentiation
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Our Experience . . .
Nature of Services
Medical Devices Manufacturing Co.
Client Owned
Outsourced Services
Turnkey Product Development Contract Manufacturing Management Concept to commissioning Global Standardization Modularization
Concept to Sustenance Engineering Global Plant Engineering Product Design to Testing Global Product Development Process Definition Equipment Procurement Material Selection Design Manufacturing Supply Chain Management Market management
Material Testing Detailed Design Product Testing Competitive product analysis Reverse Engineering
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NPD (Design, Protos & Testing Support) Tech Publication Certification Support NSF, CSA, UL & CE Analytics FEA & CFD
Configurators & CAD/ Design automations VA-VE Glocalization Prototype Dev & Testing Services EPO (Sales Enq-Order -Del process Mgmt) Component Sourcing Manufacturing Engg Support
OP
Existing Engagement
OP
Opportunity Exist
CE
My Points of View...
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India has a reservoir of highly experienced engineers with global knowledge base, that provides a foundation for ESO services providers to drive engineering value realization through global collaboration
ESO s Knowledge base of Global Engineering needs Acquisition of global companies Ownership to product development Development of products for local & global markets International company transplants Increased JV in private sector Return of Ex-pat Technologists Increased foreign company investments Technology Outsourcing Captive Centers
Government R&D and Enterprises International tie-ups Licensed Public Sector technology transfers Selective Foreign company investments 1950
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1990
2000
2010
2020
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India dominates the talent pool needed for the off-shoring sector
India 28%
China 11%
Philippines 8%
* Graduates with skills for direct employment in IT/ BPO (does not consider willingness and accessibility of telent Source: Nasscome reports, Booz & Company IC
THANK YOU
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