Matrix organizations are the norm at MNC centers irrespective of the reporting/organization structure. Based on this reality, Zinnov has propounded a model where it classifies all matrix organizations into three broad categories - Volatile, Stable and Effective based on key characteristics such as cost, consistency, frequency of communication, decision making ability etc. It explores with examples the current trends in reporting structures and how some companies’ matrix structures have evolved across these stages.
Note: This report is a part of both Global Leadership and Competency Creation categories
The maturity benchmarking exercise is an extension of a framework developed by Zinnov –‘The Maturity Model’. This framework is aimed at helping R&D subsidiaries gauge, by assessment, the maturity of the India Center operations relative to their peers, identify gaps, if any, and also analyze trends that have enabled companies to move up the value curve.
Zinnov’s perspective on what lies ahead for MNC R&D Centers in 2010 based on the events that have occurred in the past year, the challenges and constraints that have become relevant and measures that companies should take/are taking considering these new realities.
As the MNC R&D landscape has matured, today it is in a position to give back to the local ecosystem. This report explores the main advantages of having MNC R&D centers in India which include employment, investments, development of the startup ecosystem, university-industry collaborations and local innovations.
Difference in Global Stakeholders Perception ( 2009 - 2010 )
This report juxtaposes the survey result from data collected from MNC R&D stakeholders based both in India and the US. The main objective of the report is to understand the similarities and dissimilarities in thoughts and perceptions of global stakeholders on globalization. It also provides an interesting perspective on the perception gap that exists between the east and the west.
Note: This report does not have a separate overview
Emerging markets present a complex business environment that requires technology firms to have a great deal of product localization, strong support and well developed business models. This concept note on sales and R&D collaboration highlights a hypothesis that the current structures of technology MNC’s i.e. separate entities for Sales & R&D present in emerging markets is not the most effective solution, and is a possible hindrance to growth. It examines how increased sales and R&D collaboration might help MNC’s have greater effectiveness in growth markets.
Note: There is no seperate 'Overview' for this report
Global R&D Service Providers' Rating: Final Report (2009 - 2010)
This report is an in-depth analysis of the Global Service Providers' Rating exercise. It includes detailed information on the profiles of participating companies, methodology used for ranking, the outsourced product development landscape and macro trends in each of the 7 verticals that were analyzed as a part of the study. The analysis of the capabilities of the R&D Service Providers across verticals was done with the intent to showcase service providers’ capabilities across different geographies to service the R&D needs of large global clients. It also includes insights on the business models used, case studies and best practices that have been / are followed by service providers to combat the effects of recession.
With the recession-hit economy showing signs of recovery, there is an increased focus on globalization to rapid growth markets such as India and China. Apart from the conventional drivers, there is more value derived per dollar from these markets on account of Purchasing Power Parity (PPP).The focus of this report is on certain specific verticals viz. Semiconductors, Software, Telecom & Networking, Industrial & Consumer Electronics/ Computer Hardware which together account for nearly half of the R&D spend by the global top 1000 R&D spenders. It further includes heat map of the verticals’ R&D spend vs. net sales, geographic deep dive etc. It also analyzes trends in the aforementioned verticals across India and China. In addition the report also includes in-depth analysis of the software vertical by providing a comprehensive peer landscape, evolution of the top companies in the said vertical and a road map to increased value delivery from the subsidiaries.
Global R&D Service Providers' Rating (2009 - 2010)
This is a comprehensive report ranking the Top Global R&D Service Providers across geographies like India, China and Eastern Europe across multiple verticals. The overall rating is based on components like financial strength and capabilities like business models, innovation, expertise, people strength and operations. The rating also highlights that the impact of recession on the R&D Service Providers Community has been felt across four key levers, namely, contract re-negotiation, increase in sales cycle time, bankruptcy of clients and fears of business continuity risk, which did result in many of them having to reassess and redefine their strategies.
Software Product Companies and Globalization Opportunities (2009 - 2010)
The current economic crisis has made it imperative for companies to re-look at their globalization strategy holistically. This report provides an in-depth analysis of the software product R&D spend globally, while considering globalization across areas such as cost of services, SG&A etc. The report also feature the role of emerging markets, such as India, China etc. and the addressable opportunity these markets will provide over the next few years.
R&D Globalization Perception Survey - US Stakeholders (2009 - 2010)
An insight on US stakeholders perception on key globalization trends. This is based on a survey carried out by Zinnov in October 2009
The survey result is based on the data provided by 26 stakeholders of US-based companies. The main objective of the survey was to understand the key R&D trends along 4 parameters, namely: (i) Top factors/influencers of globalization (ii) Rationale for headcount growth in global locations (iii) Nature of growth in global locations and (iv) Globalization level of non-product related functions
Note: There is no seperate 'Overview' for this report
HQ’s believe effective actions should be taken to be able to generate maximized business value from remote teams in the current economic crisis. Also, for an effective product transition, both the HQs as well as remote centers will surely have to address several issues…
Indian R&D offshoring industry is at a cross-road today with a number of risks challenging its growth in coming years. So,what is it that it should do?
Currently there are over 700 R&D centers in India. Given various uncertainties in the market most of the companies have frozen their hiring at these centers. Also, the salaries are expected to either increase incrementally in single digit or be flat. This report showcases aspects with which, an R&D center can optimize its operations. Coupled with a unique framework, learn more on how you can not only save operating cost by about 20% but also effectively improve productivity thus deriving maximum value from globalization.
This study provides insights into the entire MNC R&D landscape as well as the Service Provider R&D market of Russia. It promptly highlights that Russia over the years has evolved as the largest market of IT offshoring worth USD 3350 Million in 2008, as compared to Central and Eastern European (CEE) region. Unlike India and China, the Russian R&D offshoring market is primarily driven from the service providers. Also, the high R&D activity in Russia is primarily attributed to the fact that the talent in Russia is highly capable of performing new product development and similar high-end activities due to the prevalent advanced education system.
With an overall IT market of USD 0.62 Billion in 2008, Ukraine’s R&D market is still nascent when compared to that of India and China. Also, the market is predominantly driven by service providers. This study highlights that the total cost of running a center in Ukraine is about 60-70% cheaper than the US. Other vital details on how this market has evolved over the years, with specific skill-sets, etc form an intrinsic part of this report.
“R&D Globalization – A China Perspective” brings into purview the entire R&D offshoring market in China. This unprecedented study focusing on the MNC R&D subsidiary landscape as well as the market for R&D service providers showcases China’s R&D capabilities, in addition to some key challenges and drivers for growth in that market. The study opens gate to the Chinese R&D market and the vast opportunity it presents us with!
India R&D centers are not isolated from the financial crisis and apart from slowing growth, they have to address a number if additional challenges. Aspects like controlling costs have become a priority for all. However, having said that, the current crisis also has created a window of unprecedented opportunities. Read more on what these opportunities are.
Globalization Maturity Model is a framework for global organizations to assess the effectiveness of their Global R&D operations. The need to expedite innovation and service the ever-expanding and ever-changing customer base has prompted companies to set up engineering centers in several locations across the globe. However, companies struggle to devise the right short-term and long-term strategies for each of their global centers to reconcile with the Global business strategy of the organization. The Maturity Model is a framework that helps companies to measure the effectiveness of each of their global centers and product teams, and formulate the right strategy for each one of them.