Strategic CIO // Executive Insights & Innovation
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2/14/2014
12:00 PM
Chris Murphy
Chris Murphy
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Can Digital Business Make Tata A Software Company?

As IT outsourcer launches a new business unit focused on licensing software, it faces three key challenges.
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Seeta Hariharan, TCS digital software GM
Seeta Hariharan, TCS digital software GM

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simplythink
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simplythink,
User Rank: Apprentice
8/25/2014 | 10:40:00 AM
Be careful of Old wine in New Bottle
I congratulate TCS for their digital business intiative as DSS divison. I have been tracking TCS from two persepective.

1. investor - TCS being blue ship software services company with global presence so investing in TCS is preudent. They have been giving great returns for last decade or more.


2. Industry Analyst and Banking technology Expert ( Also Ex Customer): Building team of 300 for largest employer in India and other contient is not rocket science but,  starting business sure needs strategy check.

Let us look at TCS history - Largest software and services provider (Their own home baked as well as alliance and partners solution in more than 20 to 25 verticals) developing and managing largest IT setup for e.g. In Banking they manage Citi,USA as well as SBI in India.

DSS will focus on Telecom, Banking and Retail where in already TCS has foot print and acquired customers in one r the other engagement format. TCS already does lot of work in analytics, SCM, banking and many more.

With above background in mind, I feel DSS is born to capture some unexplored areas:

1. TCS would have seen some deals going to Niche players which have point solutions or framework (We can find 10,15 or more such innovative solutions guys like Digital Banking - D3, Digital Insight..) loss of revenue for incremental marketing and sales cost to get it.


2. European Banks have gone ahead of other regions with more than 20% on Digital bank architecture ( BBVA and some more such banks leading the way:)) McKinsey recently published interesting article on Digital Banking space and it's growth. DSS makes sense to be Lin eof Business for company like TCS.

3. Amazon, flipkart,Uber and more fuels retailing market on B2B as well as B2C front opens lot of opportunities on SCM, Analytics, Social Media ( For eg. One leading Analystics service outsorucing company (Listed) has all the major retail MNC brands as their customers and their revenue is lost of business already for TCS as most of these brands also take IT services from TCS :)

4. SBI is premium customer of TCS as their entire core banking business runs on TCS platform but SBI's Digital Banking Platform is build by Accenture and already roll out started for it. This is learing and correcting input for TCS build their offering on DSS.

The way I look at TCS DSS offerings will be how they differentiate from niche players as well as build their offerings which does not resemble their existing offerings other wise it will look like Old wind in new bottle for customers.
Laurianne McLaughlin
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Laurianne McLaughlin,
User Rank: Apprentice
2/15/2014 | 8:50:56 AM
Rivals
Aren't they competing with the likes of Salesforce on the customer insights front? One tough rival.
ChrisMurphy
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ChrisMurphy,
User Rank: Author
2/14/2014 | 5:17:35 PM
Re: Careful what you wish for?
There's a tension these days over where the next enterprise software innovation will come from -- established software vendors, or Valley-backed startups. TCS is threading between those. Does its reputation and history in IT services help it in trying to break into software?
RobPreston
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RobPreston,
User Rank: Author
2/14/2014 | 1:16:13 PM
Re: Careful what you wish for?
I think Tata's industry-specific approach is the way to go. It's an opportunity to bring in its vertically oriented consultants.
Lorna Garey
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Lorna Garey,
User Rank: Author
2/14/2014 | 1:04:27 PM
Careful what you wish for?
Tata is thinking big here, but given the woes plaguing established software providers lately, this seems like a case of "be careful what you wish for." Building secure, stable code is difficult, and unless you can command licensing margins like Oracle, not easy to make profit on.

On the other hand, it must be nice to not have a legacy code base to deal with and be able to build new, with digital in mind from the get go. It'll be interesting to see how this works out.
The Business of Going Digital
The Business of Going Digital
Digital business isn't about changing code; it's about changing what legacy sales, distribution, customer service, and product groups do in the new digital age. It's about bringing big data analytics, mobile, social, marketing automation, cloud computing, and the app economy together to launch new products and services. We're seeing new titles in this digital revolution, new responsibilities, new business models, and major shifts in technology spending.
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