wipro and forbes insights' global cxo outlook: growth strategies for 2012 and beyond

Global CXO outlookGrowth Strategies for 2012

and Beyond

© 2011 Wipro Ltd - Confidential

Agenda

3

4 Going green for business growth

1 Introduction

2 Key findings

Seeking the key differentiator

© 2011 Wipro Ltd - Confidential2 © 2011 Wipro Ltd - Confidential2

4 Going green for business growth

5 Developing opportunities in the developing world

6 Methodology

© 2011 Wipro Ltd - Confidential3

Global CXO OutlookAn Introduction

IntroductionWhat are your company’s current top business

priorities?Wipro in association with Forbes Insights, conducted an exclusive survey in Feb 2011 of more than 300 CEOs and other C-level

executives at global enterprises

Areas of focus of the study


Strategic Innovation

Sustainable Development

Emerging Markets


Key Findings A snapshot of insights from the survey

Strategic innovation

• Strategic innovation is more important than ever to driving growth• C-level executives see innovation as a way to differentiate their businesses, particularly following the 2008-09 recession

• Speed-to-market is necessary for successful innovation• Cost remains the biggest hurdle to fostering innovation• Paying attention to best practices is the most effective way to foster innovation

Key Findings


Sustainable development

• Executives see a very clear business case for using “green” business practices• Embracing green business practices as part of a corporate innovation strategy is essential to their success• Green IT is a priority for more than three quarters of companies• Executives see investment and expansion into emerging markets as crucial to their strategies today and in the near future

Emerging markets

• Expansion into emerging markets is being driven by lower costs and a higher rate of growth, according to executives surveyed


Strategic InnovationSeeking the Key Differentiator

Strategic Innovation : the growth engine

Did the economic downturn of 2008-09 change your company's approach to innovation?

Importance of innovation

More than 90% of respondents to thesurvey who wholeheartedly agreedon the importance to business ofinnovation in products and services,and business practices

“It is critical to our customers’ success that we continue to push the boundaries of the unknown.”- Sophie Vandebroek, Xerox


your company's approach to innovation?

• Disruptive approach to the market

• Partnership with customers

LightRadio

Towards effective innovation

• Three out of four respondents say that

robust data should underpin all decisions and

competitive intelligence to drive business

innovation

• Toyota practices kaizen or “continuous

improvement,” in which teams get together not

only to problem-solve the weak points, but also

to look at what are considered the strong points

Focusing on effective innovation Case-in-point:


• Partnership with customers

• Partnerships with suppliers

to look at what are considered the strong points

• 81% agree that getting a product or service

swiftly out to market is a critical business tactic

Getting customer input

Innovation requires getting products and/or services to the market quickly

“When there’s a big problem, we know have to change, but when there isn’t a problem, we still want to innovate.”

Norm Bafunno, Toyota

Product and service innovation is less important in developing markets than mature markets, according to 67% of senior executives surveyed.

39% of respondents point to cost as the biggest hurdle to fostering innovation

Cost is seen as bigger challenge than talent recruitment and restrictive regulatory environments

Barriers to innovation

What are the biggest barriers your company currently faces regarding fostering

innovation?


and restrictive regulatory environments

“One way to go beyond pure technical innovation is to work

together, between research and R&D and key suppliers, to define new

approaches to be the first to market with innovative products. This is one

of the main elements of our strategy” – Jean-David Calvet,

CPO, Alcatel-Lucent

Tools for innovation

How effective do you believe the following tools and tactics are fro business

innovation?

80% of the surveyed respondents believe that attention to best practices is the premier technique

Best practices


The next most-effective tool for business innovation is technology, rated effective by 79% of respondents

Technology

Data-based decision-making ranks third, tied with and in collaboration with customers

Data

Case-in-point: Xerox

The Xerox hub has adopted Open Innovation and is using the hub to expand partnerships with leading Indian technical and business schools

A partnership with Another partnership


A partnership with the well-known Indian Institute of Technology, Madras (IIT Madras) to use on-demand cloud computing to improve the efficiency and economics of document-services delivery

Another partnership with IIT Madras’sRural Technology Business Incubator to develop innovative solutions to improve workflow at small technology-based businesses in rural India

A collaboration with the Indian Institute of Science on a project on machine-learning and game-theory principles to improve the performance of online service marketplaces

A project with the Indian Institute of Technology, Bombay to develop linguistic databases to provide automated translation of documents


Sustainable Development

Going Green for Business Growth

Focusing on return rather than cost

Which of the following practices are most important to your company’s use of green

business practices?“Companies can become believers in carbon-emission reduction if they understand that by cutting their carbon output they are taking the waste out of their systems and are driving efficiencies—efficiencies that can then be converted into cost


can then be converted into cost savings better used for growth and

expansion” - Justin Barrow, co-founder and chief innovation officer of China-

based Climate Action

Green practices are the way forward, and make a great marketing tool as they highlight the “engaged”

side of a company.

• The focus on coal created a dilemma for CLP Holdings when it debated its climate-change strategy

• CLP balanced its generation portfolio, and moved towards de-carbonization by offsetting the emissions from coal-fired generation in part with non-fossil-fuel generation and renewable energy.

• The company also changed its business approach to be compatible with global objectives for stabilizing greenhouse gas emissions to limit climate change.

Case-in-point: CLP Holdings


stabilizing greenhouse gas emissions to limit climate change. • In 2007, CLP developed Climate Vision 2050, which sets a group-wide target of reducing

carbon-emission intensity by 75%, by 2050

“We are balancing the economic, social, and financial goals that sustainability is

all about” –Andrew Brandler, CLP

Holdings

Worldwide demand for electricity is expected to grow by 2.2% annually

through 2035, with more than 80% of that increase coming from non-OECD

countries.-World Energy Outlook 2010

Green Innovation

100% APAC region linked green practices to innovation

• Compete with western counterparts in the sustainable business

• Need to ramp up green practices to meet customers’ requirements, enhanced rules

• Tighter control on environmental degradation by Asian governments

• Heavy taxes and penalties

Reducing IT’s carbon footprint

• Data centers are the key energy consumers

• Reducing data center footprints -common element of their green IT strategies

Creating an eco-friendly framework

• Companies need an organizational framework to spur green business practices.

• What it takes to focus on environment – Strong executive leadership that is prepared to make decisions


• Heavy taxes and penalties imposed on polluters

As part of your innovation strategy, has your company embraced "green" practices?

Is green IT a priority for your company?

Green Innovation

Which of the following elements are a part of your company’s green IT strategy?

Tackling climate challenges requires greater

collaboration across business sectors and between business, government,

academia and civil society.--World Business Council for Sustainable Development, a


Sustainable Development, a CEO-led, global association of

about 200 companies.

After laying out sustainable-development targets in its Climate Vision 2050 strategy paper, CLP carriedout an exercise to educate its 6,000 employees

about the targets.

Establishing a framework

Companies need an organizational framework to spur green business practices

Green initiatives by companies cannot be successful without the support of national and local governments

China, for example, has set significant targets for low-carbon energy, energy efficiency, and

Case-in-point: After laying out sustainable-development targets in its Climate Vision 2050 strategy paper, CLP carried out an exercise to educate its 6,000 employees about the targets


without the support of national and local governments

Carbon taxes will soon become widespread globally

Three out of four respondents were convinced carbon taxes would soon become widespread globally

for low-carbon energy, energy efficiency, and clean technology in its 12th Five-Year Plan covering 2011-15

India has boosted allocations for clean environment schemes in the 2011-12 budget


Emerging Markets

Developing Opportunities in the Developing World

Emerging markets

Venturing into developing markets

• Faster and higher growth potential compared to more mature markets.

• Greater purchasing potential of consumers

Challenges


China and India are the most popular investment spots

Challenges

• Poor distribution channels

• Skill shortages

• Volatile political climates

• Strong local and international rivals

The corporate mood appears buoyant heading into 2012

The trick for foreign entrants may be to formulate business plans that consider the socio-economic trends in those emerging markets, and correctly identify the

opportunities and challenges there.

Emerging Markets

In which emerging markets does your company see greatest opportunities for

growth in the next two years

“For companies to grow fast organically, it is necessary to grow fast in emerging markets where the rate of growth is

quicker” -Wong Wai Ming, senior vice-president and CFO of Lenovo


Importance of investment/expansion into emerging markets

president and CFO of Lenovo

Emerging Markets: the driving forces

What are the key drivers for your company to target emerging markets?


Lower cost continues to be the key driver for

targeting emerging economies

Emerging markets: the detractors

What are the key drivers for your company to target emerging markets?


Poor distribution channels and

political instability continue to hinder

geographical expansion

• Lenovo has launched its LePad and IdeaPad but only within China, its strongest market.

• The initial focus is always on China – it accounts for about 46% of its worldwide sales, and where it has strong brand recognition

Protect and attack strategy

• This involves staggered launches in which it protects the core business in China and mature

Case-in-point: Lenovo


• This involves staggered launches in which it protects the core business in China and mature commercial markets, and attacks in fast-growing emerging markets such as India, Russia and Brazil.

“We plan our business on a global basis but when we launch, we identify a market that will give us the best chance of success.”

–Wong Wai Ming, Lenovo

Case-in-point GAP

“With regard to new countries, we take a different approach depending on the market. For instance, first we identify large markets, like China and Italy, with significant long-term upside for our brands and decide to make the

investment to own and operate our own stores, whether it’s full-priced brands or our

outlet models” -- Gap spokesperson.


• Opened four flagship stores in Shanghai and Beijing• Offers stylish, quality products at accessible prices, all tailored to the Chinese fit• Strategy for global growth - Leverage core brands across multiple platforms, channels and

geographies

outlet models” -- Gap spokesperson.

GOAL

Gap’s goal is to improve top-line revenue, and to increase the percentage of its online and international revenue to 30% of total revenue by 2014, up from 22% of total revenue in 2010.


Methodology

Methodology

Wipro, in association with Forbes Insights surveyed 308 C-level executives at large global enterprises with annual revenues of more than US$500 million.

About a third worked for companies with annual revenues of $US5 billion or more.


All respondents had C-level titles, including CEO (40%), COO (10%), CFO (13%), CIO (15%), CMO (10%), and other C-level executives (13%).

They represented a wide range of industries, including manufacturing (28%), banking/financial services (23%), retail (10%), telecommunications (10%), insurance (7%), and energy (7%)

Geographically, 37% of respondents were located in the U.S., 6% were located elsewhere in the Americas, 39% were from Europe/Middle East/Africa, and 18% were from Asia Pacific

To read the complete report please visit the link belowhttp://www.wipro.com/insights/cxo_report.htm


http://www.wipro.com/insights/cxo_report.htm

Wipro set up the Council for Industry Research, comprised of domain and technology experts from the organization, to address the needs of customers. It specifically surveys innovative strategies that will help customers gain competitive advantage in the market. The Council, in collaboration with leading academic institutions and industry bodies, studies market trends to help equip organizations with insights to facilitate their IT and business strategies.

About Wipro Council of Industry Research


strategies.

For more information on the Research Council visit www.wipro.com/insightsor mail [email protected]

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© 2011 Wipro Ltd - Confidential

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