TEAM MIND BENDERS

Leveraging Artificial Intelligence for Business Acceleration in the future

towards Industry 4.0
 SOM 616 - Technology Management
Profit Pool Analysis and Problem Structuring

Team Roll No Email-ID Contact

Raj Kishore Chauhan 199278030 raj.kishore@sjmsom.in 9425674564
Hari Prasad Chintala 199278009 hariprasad.chintala@sjmsom.in 8500473195
Dipak Kumar Paswan 199278040 dipak.kumar@sjmsom.in 9529955255
Nayanali Teltumbde 189278069 nayanali.teltumbde@sjmsom.in 9860853270

Section: A
Company name: Wipro Limited
Industry: Information and Communications Technology (ICT)
Team Name: Mind Benders
 Profit Pool

Business Components contributing to the revenue generation of Wipro Limited.

All figures are in $ millions
Revenue of
Operating
Business Components each Profit
Margin (in %)
components
Banking Financial Services and Insurance (BFSI)
2503 19.30% 483.079
Energy, Natural Resources and Utilities (ENU) 1276 18.80% 239.888
Health Business (Health BU) 466 13.50% 62.91
Technology (TECH) 1040 9.70% 100.88
Consumer Business (CBU) 1075 11.50% 123.625
Communications (COMM) 666 17.90% 119.214
Manufacturing (MFG) 1094 20.80% 227.552
Total 8120 1357.148

Some interesting insights:

 The contribution from BFSI is highest. BFSI has highest revenue share and close to highest
operating margin.
 Technology (TECH) has the lowest operating margin.
 Health Business Unit (HBU) has lowest contribution in revenue but still has comparable
operating margin.
 Communications (COMM) generate second lowest revenue and have considerable operating
margin.
Problem Statement:
Wipro is among the top three service provider giants of the country and a leading firm working
towards AI product development. However, despite being the leading AI product developer the
product Holmes faces a stiff challenge from some of its competitors such as Watson. Some of the
main areas where problem lies are the spend on R&D, big data gathering and securitization, new
features development, etc. Along with this, the new stringent policies for data around the world is
also posing a challenge. Thus, the company should work towards better AI development so that it
could move up the value chain and be recognized as solution provider in next generation
technologies rather than IT services company and further expand its business

Goals Blocked/ US:

The prior vision of the company was to provide solutions with leading technologies which is now
changed to digital first approach. If we look right now in the company, the company still is mostly
dependant on traditional platforms for providing services and lacking in providing solutions in the
form of products.

List of causes for the problem:

The main causes of the problem are as follows:
 Rigid pricing model compare to competitive and flexible pricing models by Watson.
 Low R&D expenditure (0.36% of income)
 Less patent grant to filled ratio (552:2200).
 Most of the work is still done on traditional platforms.
 Lack of skilled workforce who have knowledge of next generation technologies.
 Fewer features provided by Holmes compared to competitors such as Watson, TensorFlow,
etc.
 No shift of customer’s perception from service provider to solution provider.

Root Cause Diagram

Ambiguities

As there is a paradigm shift in the industry with the advent of Industry 4.0, the ambiguities have also
started occurring in the companies. Few of the ambiguities faced by Wipro are as follows:

 With the lack of clarity in direction and defined roles, the productivity of the workforce will
not be increased, hence the company should establish proper goals and effective methods
to establish those goals.
 With the advent of next generation technologies, the employees should be guided and be
trained properly to avoid confusion and work towards common goal.
 Toxic ambiguities such as work environments based on primitive methods should be
reduced as much as possible and new innovative methods to be incorporated.
 Most of the revenues generated is from IT services rather than new AI products so better
focus should be given to the later area as well to have a stronghold in the industry and grow
further.