GenNext Early Engagement

"Persistent-Ace the Case"

Group Name The Mavens

Company Name Brilliant Software Solutions

Number of group members 3

College
S No. Name Name PG degree Email

1 Aman Choudhary IIM Lucknow MBA ipmx15059@iiml.ac.in

ipmx15089@iiml.ac.in
2 Rahul Das IIM Lucknow MBA

3 Sandeep Tiwari IIM Lucknow MBA ipmx15095@iiml.ac.in

Project Charter
Project title : Growth business strategy for
Brilliant Software Solutions Project Team Team name: The Mavens
1. Aman Choudhary
: 2. Rahul Das
Project start date : 25-Oct-2022 3. Sandeep Tiwari

Problem/Opportunity Statement
• Brilliant Software Solutions is a multinational technology service company has offerings such as Software Product Engineering,
Automation & AI, Cyber Security, Cloud and Infrastructure, Data & Analytics, Blockchain, IoT, etc. Company is looking for doubling the
revenues by end of FY 2024.
• Currently Brilliant Software has a revenue of 1015 M USD in FY 22 and has also attained a revenue of 350M USD in Q1-23.
• 75%, 13%,12% of revenue of Brilliant Software is coming from US, Europe and other markets respectively.

Business Case Scope of the Project

• Brilliant Software currently serves 5 industries namely BFSI(24) • Identify ways to mitigate the impact of the srecession
Industrial(12), Healthcare(20), Retail(9) and Software & Hi-Tech(35) • Identify the correct market for expansion in Europe from below
• Company wants to reduce its dependence on US market and (a) Germany
expand business in Europe (b) Switzerland
• Company wants to reduce attrition rate further from the current (c) Netherlands
rate 25% • Identify the reason for the high attrition rate and ways to reduce
the same

Critical Success Factors Value Proposition of the Project

• Retain existing customers in US market
• Upsell and cross sell analytical services to US clients
• Identification of optimum expansion strategy in Europe
• Identification of VRIO based strategic partners for alliances
• Retention of employees in order to save on overheads
• Expansion of work force to meet the forecasted demand
Project aims to make
(a) Mitigate the impact of macroeconomic factors by retaining
existing customers and revenue
(b) Create Go to Market strategy for entering in European market
(c) Policies and steps for retention of employees and reduce
attrition rates
Issue tree for Growth strategy

Growth strategy

Organic Inorganic

Increase revenue per customer by Increase No. of

Broaden product base Strategic Alliances Merger & Acquisition
Mitigating impact of recession customer

Horizontal integration
Increase no. of Increase Increase size of Increase Market Supply chain
transactions revenue per the target share solutions-
transaction market TMS/WMS
Vertical integration

Telecom solution

Cross selling Upselling

Gold loan
Scenario Analysis for mitigating the impact of recession

Forecasted Revenue Objective: To reach a target revenue of $2 Billion in 2 years

2500 Based on the market sizing analysis Without expansion
2086.35
2000

1430.43 Growing Revenue at current Growing revenue at same rate Growing revenue at same rate
1500
CAGR (17.4%) & retaining as previous year (36.29%) & as Q1 of 2022 (37.95%) &
1014.82 the market share retaining market share retaining market share
1000
744.58
598.62 641.02
500
Revenues increase Revenues increase Revenues increase
0 to $ 1457.45 M to $ 1885.02 M to $ 1931.30 M
2019 2020 2021 2022 2023 2024

Assumptions for Revenue Forecasting Objective: To reach a target revenue of $2 Billion in 2 years
• Revenues are increasing YoY. Based on the market sizing analysis with expansion
• Additional Revenue of $ 100 M in 2023 and $ 250 M in
2024 is expected from the expansion of the business.
• A reduction of 5% in revenue is expected because of $ 250 M increased revenue $ 250 M increased revenue $ 250 M increased revenue
ongoing macroeconomic instabilities. from market expansion and from market expansion and 5 % from market expansion and 5
Solution for mitigating the impact 5 % loss in revenue for loss in revenue for % loss in revenue for
macroeconomic factors
• Existing customers in the US market should be retained. macroeconomic factors macroeconomic factors
• Efforts are to be made on upselling /cross-selling
analytical solutions as firms would be eager to optimize Revenues increase Revenues increase Revenues increase
costs and identify revenue-generating segments. to $ 1634.57 M to $ 2040.77 M to $ 2086.35 M
Europe Market Attractiveness Analysis for Inorganic growth opportunities
Average IT Low High
Size of Annual Industry
Expected High
Netherlands

IT Industry expected growth rate

Economy EODB Labor expected France
Country Growth growth

High
(Trillion) rank Cost CAGR for
rate industries
(USD) /Employe 2022-
e 2025 Germany

Trading
Source -> Statista Statista
Economics
Glassdoor Statista 6.1%

Germany 4.23 4.01% 22 60563 6.23% Hi-Tech Switzerland

Digital Italy
Switzerland 0.87 3.99% 36 118441

Low
5.90% Finance
Supply
Netherlands 1.13 4.20% 42 69773 68K/P/Y
6.45% Chains Annual Salary Per Employee
France 2.63 3.44% 32 49800 6.17% Energy
Italy 2.17 3.10% 58 44237 5.92% Beverage

High
Germany

Expected GDP growth rate

Assumptions: Netherlands
• Other than countries in the scope of the case we have also included France
and Italy in our analysis for better comparison France
• Partitions in the matrix are taken on the basis of the saverage of the five 3.8%
countries.
Findings:
• Germany seems an attractive destination for the expansion
• Additionally, France can be explored as a probable destination for Switzerland Italy

Low
expansion because of its lower labour rates and high GDP growth rate as
wells as high IT industry growth rate.
2.1 Trillion
Size of Economy
CAGE Analysis (Similarity with respect to India)

Germany Netherlands Switzerland France Italy India

Cultural Measured using 59.33 53.33 61.67 63.16 49.67

C Distance avg Hofstede Index (Very High) (High) (Very High) (Very High) (Medium)
60.33

Measured using
22
Administrative EODB rank (the 42 36 32 58
A Distance lower the rank,
(Very High)
(High) (Very High) (Very High) (High)
62
better it is)

Measured 6748 (Distance) 7106 (Distance) 6902 (Distance) 7364 (Distance) 6565 (Distance) 0 (Distance)
Geographic geographical
G Distance distance and area
357.02 (Area) 41.54 (Area) 41.28 (Area) 543.94 (Area) 301.23 (Area) 1506 (Area)
of countries High Lows Low Very High Very Low

Measured using 3.99 (Growth) 4.20 (Medium) 4.04 (Medium) 3.44 (Medium) 3.10 (Medium) 6.5 (Medium)
comparing
Economic
E Distance
economic growth
rate and size of
4.23 (Size) 1.1 (Size) 0.8 (Size) 2.6 (Size) 2.1 (Size) 3 (Size)

economy High Low Low High Medium

Financials
Financials –– break
break up
up of
of P&L
P&L statement
statement

1200
P&L Statement - Waterfall chart
1014
1000 Financial Year-> 2019 2020 2021 2022
In million Rs. -->

Total Revenue ($Mn) 598.62 641.02 744.58 1,014.82

800 645.74 34.25 31 Power & Fuel Cost 2.04 2.14 1.54 1.42
600 Employee Cost 359.32 402.39 469.62 645.74
Selling &
400 Administrative
Expenses 49.14 40.54 25.43 34.25
200 162.26
147 Operating & Other
2.21 43.66 Expenses 113.97 128.66 157.66 205.74
0 Total Costs 524.47 573.73 654.25 887.15

PAT
EBIT
Emp Cost

SG & A

Finance cost
Depreciation

Tax
Total Revenue

EBITDA ($Mn) 111.61 108.27 137.07 191.04

Depreciation /
Amortization 29.35 30.98 32.77 30.99
PBIT ($Mn) 84.35 79.5 106.64 162.26
Interest & Other
Items 0.06 1.18 1.08 2.21
PBT ($Mn) 84.3 78.41 105.64 160.21
% of net Taxes & Other Items 25.14 20.92 29.64 43.66
revenue 63% 3.5% 3% 16% 0.2% 4% 11.5% Net Income ($Mn) 60.96 58.98 78.12 119.67
EPS 44.2 43.75 58.97 90.33
DPS 11 12 20 31
Payout Ratio 0.25 0.27 0.34 0.34
PAT Margin 10.18 9.20 10.49 11.79
Drivers Users volume/
Interest
rates/ Corporate
Employee Cost/Total
Expansion Capex Cost 68.51 70.14 71.78 72.79
of each Software
Inflation
N/A Financing Tax policy N/A
Operating Cost/Total
element charges through
debts Cost 19.04 20.07 21.17 20.27
SGA/Total Cost 9.37 7.07 3.89 3.86
Reasons for Attrition

Opportunities for Better

pay and work conditions Technology becoming
with other competitor obsolete rapidly
01 04
firms

Relocation for work Start-up Ecosystem.

02 Possible Reasons for 05 Expectation of very
Attrition in IT Industries high growth rate and
high work pressure

Long and odd duty

hours and tight Organization
deadlines 06 Culture and lack of
03
support from
management
Possible Solution for Lowering the Attrition Rate

Encourage Work- Onsite Opportunity

Life Balance & through expansion in
01 04 Europe
assurance of no Lay
off during recession

Provide Training and

Development Possible steps to Tames Improve
Opportunities in 02 05 Management
the High Attrition Rate
new technologies Practices and
organization culture

Offer Competitive
Effective Recruitment
Salaries, increments 03 06 Strategies to ensure
and Benefits
no shortage of
manpower
Final Solution tree for Growth strategy

Growth strategy

Organic Inorganic

Increase revenue per customer by Increase No. of

Broaden product base Strategic Alliances Merger & Acquisition
Mitigating impact of recession customer

Horizontal integration
Increase no. of Increase Increase size of Increase Market Supply chain
transactions revenue per the target share solutions-
transaction market TMS/WMS
Vertical integration

Telecom solution

Cross selling Upselling

Digital Payments
Our Go –to- Market (GTM) Strategy is …

The target market for expansion has been identified using the CAGE framework and matrices and Germany and France
Market Identification seem to be good opportunities for expansion.

As highest revenue is coming from Hi-Tech industry so strategic alliances to be formed instead of M&A for short term
Product Strategy goals to penetrate in these areas

Strategic partner to be selected in a way that has a good client base in the Hi-Tech domain and partner’s network
Product Awareness should be used for product awareness and marketing
Innovative pricing model by leveraging synergies in cost and savings to be passed on to end customers and provide
Pricing Strategy services at competitive prices and gain a competitive advantage in terms of cost.

Organizational culture to be made customer services focused for this internal training needs to be organized to retain
Customer Service existing clients by leveraging relationships with existing clients. The focus of the sales force should be on cross-selling
and up-selling analytical solutions customized to customer problems in the recession.
Customer Grievance
Customer grievances to be responded on priority. SLA-driven SOPs to be defined for grievance redressal
Redressal
Retain existing employees by providing assurance of no lay off in recession, better pay and compensation with onsite
Team Building opportunity due to European expansion plan.

Customer acquisition in the target market(German and France) in the Hi-Tech domain by working closely with the
Customer Acquisition alliance partners