Thursday, October 7, 2010

Leadership and Innovation in the commoditized industry

Satish Agrawal

Sr. Project Manager

Persistent Systems Ltd.

Commoditization State of

commoditization is reached

When the skills/services/products are available easily.

They are available with same rates over a wider geographical area.

Examples of commodities

FMCG Metals like Gold Food Grains

Examples of commodities

And Also, skills like Programming, Testing, Telemarketing, Driving etc.

Technology Commoditization

Source: http://blogs.cetis.ac.uk/wilbert/category/cetis-standards/

Impact of commoditization Products/Services/Skills

are no more a differentiator.

Seller can’t ask for the premium rates for his/her services/products/skills.

Cut throat competition among sellers.

Low margins on sales.

Impact of commoditization

High volume sales transactions are must to be in business.

Very high investments are required in Sales and Marketing.

Huge sales force is must to reach customers first.

In short – its buyers’ market.

Who can sustain in the commoditized market? Those who can provide

better service/product/skill, faster with the same rates.

In short, those who can afford to sell their products/services/skills with better quality and less prices and can also afford to give some freebies.

Is there any other way?

Leadership and Innovation

How leadership can help?

Leader

Motivates

Partnership

Quality Innovation

Vision

Motivated Employees

Strategic Partnership with Employees.

Quality Oriented Approach.

Investment in Innovation.

Vision to create world class solutions.

How Innovation can help?

Differentiate from others

Ask for Premium Rates

Get Increased Margin

Testing Industry today…

Rates/Hr/Tester is the business language in IT Industry.

Volume Business is the mantra to increased sales.

Factory Model is the key to get more in less.

Outsource Testing to Bangladesh in 2020?

You decide…

The thought process begins now.

right here @ ThoughtWorks…