Blitzkrieg 2013 The HR Challenge

Team Cloudburst
Kunal Chhajer (2nd Year) Aditi Dixit (2nd Year) Kanika Mittal(1st Year)

thus creating depth in solution categories. Product To Service: Instead of different SBUs selling their existing products to the clients. Financial Implications: .  Collaboration with the new company would also help build capability over time. building channels for new business. DSL would charge the price of the product and the consulting fees.Answer 1. or with minor modifications. 1. Build Capability Through Collaboration: In areas such as cloud computing where DSL does not have expertise it would collaborate with one of the start-ups of the ERP market.  DSL’s new partner brand to sell all its products under the new collaborated brand. Mode of Sale:   Transition from a sales team to a consulting team.  Thus. Financial Implications:  The above setup would include sharing of profits. The new business model is about best in class service to enterprises through its unified and innovative suite of enterprise service offerings. to provide best – in. where the start-up company would get paid for the software. Financial Implications:   For clients who would require one of the existing products as a solution. 2. 4.  It will also create a relationship with clients across sectors. 3. whereas DSL would charge for consulting.  Build new Software Application to create a business value proposition after an organization diagnostic. DSL even without a product offering would generate profits through consulting. and would offer their products as a solution. Creation of Sector Specific Solutions: A Newly Created Solution so offered to a client would in most cases work for another client in the same industry. and can be sold as it is. In cases where a new product is to be developed.class solution The above would thus improve DSL’s market knowledge in terms of product requirements and Sector Expertise. DSL would charge a the product development fee and consulting fees. DSL as one entity would offer solutions to the business problems (ERP requirements) as consultants:  An Existing Software Application tailored to client requirement.

which would be chargeable after the end of a promised service period. Continuation of Current Business:  The existing on-premise customers would not easily move to the online ERP versions because of risks like data security and lower customization. Financial implications: Profit through the customer service. 3. As DSL moves from a product based company to a more service-oriented company. Implementation: Same As Before The Implementation of ERP for the clients would still be done by third party vendors. thus further improving the bottom line. 2. Customer Support: A value Proposition DSL would provide the best in class responsive customer support.  The customers who end up taking on-premise ERP systems would renew their licenses every year. Overall Financial Implication 1.Minimal costs and high margins on such sales made would improve the bottom line. as the focus would be at selling what the customer requires at the best cost. 6. the onpremise ERP which has been popular with the Fortune 500 companies and the more affordable online versions which would be popular among the SMEs. Thus. Non performing service would not be resource intensive. . a drop in overall profits. with low sales volume for some time. 4. 7. consulting would become a major revenue source thus profit margins would increase as it is a low cost service. 5. Overall the new Business Model of providing ERP solutions would position DSL in both markets. The customer support arm would also help in improving the bottom line. Initial move from a product based firm to a service oriented firm would mean increased costs of capability building and buying for the consulting and sales force.

Answer2. Product Development and Customer Service. They would also work on customization of existing product. Senior engineers would work as consultants providing innovative solutions to business problems (ERP requirements). 5. 2. as per the consulting teams. Strong Customer service teams would require engineers to continuously troubleshoot for issues and debug the software. Separate engineering teams would work on integrating the various enterprise solutions. bought in for online enterprise solutions customers. 6. Engineers would also work on development of innovative products in sync with the requirements of the client. . business and information systems knowledge. Change in Engineering Practices: 1. 3. Integration of engineering resources of all product verticals into Consulting. They need to have good product. An IT engineering team would also be required to maintain the IT infrastructure. 4.

HR. 5. Instead they would have verticals according to the functions. The HR processes must also drive problem solving. Marketing. The Engineering vertical would comprise of: 1. The Performance Management System. there would be HRBPs for each of the new verticals who would take care of their specific and short term needs.Answer3. who would also work in teams on different projects. Product integration: Team would integrate different suites into one platform for the client. Finance and Customer Support There would be a common HR department with common policies and systems. The HR policies of the company should be aligned to drive the entrepreneurial culture. Giving individuals more responsibilities and freedom to work. such that all engineers could move across not only their sub-functions of engineering but also across the major functions like consulting and customer support. 3. Avoiding bureaucracy in the organization and 6. If there would be free resources at any point of time they could be moved from one team to another. 3. . 5. Product Development. 4. 4. However. Allowing them to take risks would also inculcate entrepreneurial instincts (no penalty for failure when taking risk). These four competencies can be driven by means of 1. The new organization structure would not have different business units according the products. 7. Avoiding centralization of power. The structure would be flexible. 8. 3. 2. Product Improvement: Updating and improving existing products to higher and newer versions. IT. 6. 2. The functions would include 1. Legal. 2. Under the heads of each of the above groups would be team leaders with their teams working on the requirements of different clients. Consulting (Sales). Through staffing the right resources and training them. The Consulting (Sales) vertical would mostly comprise of senior engineers with good product and business knowledge. Product development: Development of new products and customization of existing products according to client needs. innovation and customer service orientation among employees.

The Marketing teams would advertise and market the consulting expertise of the firm and the existing products.The Customer Services vertical would comprise of engineers who would cater to specific clients and resolve their issues. .

4. we need to have a performance management system which focuses on: 1. Bottom performers were terminated. Mid-Term or Quarterly review of performance and path correction if required. they should not just be terminated. The current PMS talks about potential and performance however it does not have the right measure to judge potential. This is in line with creating a cushion for risk takers thus promoting entrepreneurial spirit. . b. (Among function line leaders) f. and job requirements) c. Proper steps on the PMS a. 3. d.Answer 4. and Salary hikes) High differentials among different grades of performers. 360 Degree Feedback (which would take the client perspective) g. problem solving and customer service. Talent round tables. To inculcate the cultures of entrepreneurship. Even if employees (mainly engineers) are not able to perform in the current set up and some of them lie among the bottom performers. 4. Year end review e. Payment of Bonus and Salary hike. The ‘What’ (goals and results and outcomes) and the ‘How’ (Input. It is thus only a performance appraisal process and not a Performance Management System. We believe that they were very talented when they were hired. 5. 2. Training needs Identification (from previous year’s performance. innovation. The Current performance appraisal system is not the right fit for the new business model because: 1. and so would like to recommend that they should be counseled to leave and be helped in finding jobs elsewhere. Goal setting. There is no information about the differential in rewards for different grade of performers. Moreover the current PMS talks only about rewards 3. Competencies) Development (Trainings and career planning) and Rewards (Incentives. 2.

capability building and organizational profits. 3. Innovation – to create the new products to suit the needs of the customers. Entrepreneurial in nature 2. Currently the culture of the organization is broadly 1. Capability building 3. Customer service orientation – to boost sales and build relationships with clients by means of giving what they want. Answer 6. In the current compensation structure. Entrepreneurial spirit – to improve sales of business solutions through Consulting. It is a right approach to pay the senior leadership in stock options as that brings in accountability. It is recommended that the compensation be driven by the following value drivers such as 1. However the actual no.Answer 5. The new business model where DSL moves to service strategy would require the leadership and HR to drive a culture of: 1. Organizational profits. Customer satisfaction and 2. Openness and Transparency. The existing culture of openness and transparency will be a driver for entrepreneurial spirit. 2. as mentioned above should depend on customer satisfaction. the key driver to achieve full compensation is Division revenue and profits through DSA Reward System. .