SUMMER INTERNSHIP PROJECT REPORT “Strategic Analysis and Market Research for EducationERP.Net”
At Globals Inc., Bangalore.”
(Submitted in partial fulfillment of the requirement for the award of Degree of Master of Business Administration)
Visvesvaraya Technological University, Belgaum.
Submitted By
Mr. Sreedhara K.R (USN: 1BJ08MBA51)
Under the Guidance of
Dr. K. Karunakaran Professor, MBA Department SBMJCE
SRI BHAGAWAN MAHAVEER JAIN COLLEGE OF ENGINEERING DEPARTMENT OF MANAGEMENT STUDIES Jakkasandra post, Kanakapura Taluk, Bangalore-562 112 April – 2010
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DECLARATION
I declare that the ―Summer Project‖ undergone by me at Globals Inc, Bangalore, is carried out by me under the guidance of Dr. K. Karunakaran, Internal Guide, Department of Management Studies, Sri Bhagawan Mahaveer Jain College of Engineering, Bangalore and is an independent work. The report has not been submitted earlier to Visvesvaraya Technology
University or to any other Institution. The matter in this report is based on the information Associate Manager, collected by me at Globals Inc. under the guidance of Anmol Vij – Associate External Guide.
The report is towards the fulfillment of the requirement requ irement of the Master of Business Administration course of Visvesvaraya Technological Tec hnological University.
Date:
SREEDHARA K.R.
Place: Bangalore
(USN: 1BJ08MBA51)
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ACKNOWLEDGEMENT
I wish to thank all those who helped me and without whose support, I could not have completed this project successfully.
First and foremost I express my heart felt thanks to Mr. Anmol Vij, Vij, Associate Manager of Globals, for granting me the permission to do the project and for his constant guidance during my project. I would like to thank with immense gratitude Dr. Y Vijay Mahaveer Jain College Kumar, the Principal of Sri Bhagawan Mahaveer of Engineering and Prof. and Prof. L P Rajan, the Head- Department of Management Studies for allowing me to undertake this project. I have immense pleasure in expressing my deep sense of gratitude to Dr . K. Karunakaran, Professor – MBA, Department of Management Studies for his valuable guidance, time, co-operation and support without which this project report would not have been completed. Last but not least, I would like to thank my family and friends for their wholehearted support for the completion of this project.
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CONTENTS CHAPTERS
PARTICULARS PART - A
1
EXECUTIVE SUMMARY GENERAL INTRODUCTION
2
INDUSTRY PROFILE
COMPANY PROFILE
3
MCKINSEY‟S 7 S MODEL
4
SWOT ANALYSIS
5
LEARNING EXPERIENCE
PART - B 7
GENERAL INTRODUCTION RESEARCH METHODOLOGY
Statement of the problem
Objectives of the study
Scope of the study
Methodology
Limitation of the study
8
9
ANALYSIS AND INTERPRETATION
10
FINDINGS
11
RECOMMENDATIONS AND CONCLUSION
12
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EXECUTIVE SUMMARY
Indian IT/ITeS sector has seen too much of up and downs in this decade. It has become very crucial for every company to acquire and retain best talent, getting clients and serving them profitably, providing cost effective solutions without compromising on quality. Indian IT/ITeS sector is dominated by a few large co rporations along with presence of large number of small and medium scale organizations. Intense competition can be seen in this sector. This project Titled ―Strategic analysis and Marketing for EducationERP.net‖ aims at analyzing
Globals Inc and its flagship product EducationERP.net strategically. Primarily, Indian IT and ITeS industry and its Macro Environment are analyzed. In the later part, Market Research is done o n Indian Education Sector to get insight about the industry since, it is EducationERP. Net‘s target market.
Competitive analysis for Education ERP is conducted considering the major competitors based on their market share. Finally, a client satisfaction survey is conducted using Online Questionnaire Survey method with the objective to know client satisfaction level and their expectations from the company. Based on the analysis of the industry and company, my recommendations to Globals is to focus more on SaaS based IT solutions, increase breadth of its offerings, enter into new markets and should focus more on growing its partners network to strengt hen its distribution channel for Education ERP. In addition, meeting the criteria to get SEI-CMM level 5 co mpany status and getting ISO certification is very essent ial for company.
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INDUSTRY PROFILE
In an increasingly globalised world, significant complexity and u ncertainty is being attached to the unprecedented economic crisis. The Indian economy has also been impacted by the recessionary trends, with a slowdown in GDP growth to seven per cent. The focus and exponential growth in the domestic market has partially offset this fall and insulated the country, resulting in net overall momentum.
The IT-BPO industry in India has today become a growth engine for the economy, contributing substantially to increases in the GDP, urban employment and exports, to achieve the vision of a ―young and resilient‖ India. During the year, the sector maintained its double-digit growth rate
and was a net hirer. This growth has been fueled by increasing d iversification in the geographic base and industry verticals, and adaptation in the service offerings portfolio. While the effects of the economic crisis are expected to linger in the near term future, the Indian IT -BPO industry has displayed resilience and tenacity in countering the u npredictable conditions and reiterat ing the viability of India‘s fundamental value proposition. Consequently, India has retained its leadership position in the global sourcing market.
The Indian Information Technology industry accounts for a 5.9% of the country's GDP and export earnings as of 2009, while providing employment to a significant number of its tertiary sector workforce. More than 2.3 million people are employed in the sector either directly or indirectly, making it one of the biggest job creato rs in India and a mainstay of the national economy. In March 2009, annual revenues from outsourcing operations in India amounted to US$60 billion and this is expected to increase to US$225 billion by 2020. The most prominent IT hub is IT capital Bangalore. The ot her emerging destinations are Chennai, Hyderabad, Mumbai, Pune, NCR and Kolkata.
The share of IT (mainly software) in total exports increased from 1 percent in 1990 to 18 percent in 2001. IT-enabled services such as back office operations, remote maintenance, accounting, public call centers, medical transcription, insurance claims, and other bulk pro cessing are rapidly expanding. SBMJCE
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The Indian IT-BPO industry is estimated to achieve revenues o f USD 71.7 billion in FY2009, with the IT software and services industry accounting for USD 60 billion of revenues. During this period, direct employment is expected to reach nearly 2.23 million, an addition of 226,000 employees, while indirect job creation is estimated to tou ch 8 million. As a proportion of national GDP, the sector revenues have grown from 1.2 per cent in FY1998 to an estimated 5.8 per cent in FY2009. Software and services exports (including BPO) are expected to acco unt for over 99 per cent of total exports, employing over 1.76 million employees. While the current mood is that of ―cautious optimism,‖ the industry is expected to witness sustainable growth over
a two-year horizon, going past its USD 60 billion export target in FY2011.
While the industry has significant headroom for growth, competition is increasing, with a number of countries creating enabling business environments aimed at replicating India‘s success in the IT-BPO industry. Hence, concentrated efforts are required by all stakeholders to address the current challenges, to ensure that India rea lizes its potential, and maintains its leadership position.
ITES:
ITES refers to Information Technology Enabled Services. BPO or Business process outsourcing is the arm of ITES, which facilitates delivery of services through the use of information technology. ITES services are diverse in nature. It's easier to understand by segregating it as customer interactive services and back office operations for remote customers. India based service providers can deliver services in diverse areas such as finance, HR, administration, healthcare, telecommunication and manufacturing. Services ranging from customer care, call centers and claims processing to medical transcription, HR hiring, biotech research, Web sales/marketing and back-office operations such as acco unting, data processing, and data mining harness the power of IT. However, it necessitates transfer of ownership and management of the process from the customer (offshore) to India-based service provider in order to deliver service to remote areas through telecom and Internet medium. Sensing its advantages, host of fortune 500 and fortune 1000 businesses of all sizes have set up their own BPO units or have outsourced to Indian firms to reap the advantages of this. SBMJCE
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Today, Bangalore is known as the Silicon Valley of India and contributes 33% of Indian IT Exports. India's second and third largest software companies are headquartered in Bangalore, as are many of the global g lobal SEI-CMM Level 5 Companies.
KEY INDUSTRY HIGHLIGHTS Government IT spend estimated at INR 150 billion billion in 2009; expected to reach INR 250
billion by 2011. e-Go vernance. US $ 9 billion business opportunity in e-Governance. fastest growing geography with an estimated growth of 10%. APAC is the fastest g lobal market place with 51 percent Indian IT-BPO industry continues to dominate the global market share. Growth in emerging verticals such as retail and healthcare 3x faster than core verticals. Infrastructure services to be a key growth driver for the industry with an est imated
growth of 10.5%.
Indian IT Industry Sector Growth
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The Global IT spending is expected to decline steeply below the expected levels of $869 billion by 2010.
Break up of Total Global IT Spending
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Revenue by Geography
Key highlights of the Indian IT industry performance in FY 2009-10
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ESTABLISHED IT/ITES HUBS IN INDIA
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PORTER‟S FIVE FORCES MODEL FOR INDIAN IT INDUSTRY
Threat of Substitutes: Medium
1. Other offshore locations such as Eastern Europe, the Philippines and China, are emerging and are posing threat to Indian IT industry because of their cost-advantage. However, this should have an impact only in the medium to long term. 2. Price quoted for projects is a major differentiator, the quality of products
Bargaining Power of Customers: Very High
being same. Bargaining power of supplier: Shift from high to low
1. Due to slowdown, the job-cuts,
RIVALRY AMONG FIRMS: High
high competition for projects. 1. Commoditized offerings 2. Huge decline in IT expenditure:
the layoffs and bleak IT outlook.
2. 'Low-cost, little-differentiation' positioning.
2. Demand and supply of IT professionals is no longer that
3. High industry growth
favorable to employees. 3. Availability of vast talent pool –
1. Large number of IT companies vying for IT projects – resulting in
4. Strong competitors – few numbers of large companies. Barriers to Entry: Low
1. Low capital requirements.
Indian IT sector is dependent on USA and BFIS in particular for majority of its revenues, and with the recent financial crisis, the new spending from these has reduced tremendously. 3. However, for the existing products and services, the clients continue the old com anies.
2. Large value chain, space for small enterprises. 3. MNCs are ramping up capacity and employee strength.
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COMPANY PROFILE
Background and Inception of the company.
Globals Inc is a multinational company founded in the year 2000 by Mr. Suhas Gopinath at the age of 14 years at California, USA.
Suhas Gopinath is a resident of Bangalore and wanted to launch his company in India. However, his attempt to launch a private limited company ran into difficulty, as the laws in India did not allow a kid of 14 to start a company. Therefore, Suhas decided to turn to US where such a law did not exist. Thus, Globals Inc was set up in California and registered online in San Jose.
Globals has drastically grown from a small home office to a recognized multinational co mpany with presence in 11 countries with headquarters in India.
Globals offers cost effective world-class quality solutions in Web, e-Commerce, Software, and Mobile. Till date Globals has served more than 200 clients worldwide. Globals helps customer to reduce their operational costs significantly, helps them cut down carbon emissions and increase revenues.
Nature of the business Globals is serving the global clientele base in 11 c ountries in the ITeS spectrum. It offers wide range of products and services including world-class quality solutions in Web, e-Commerce, and Mobile. Today Globals develops mission critical applications on the web for various industries including Education, Finance, and Governments.
Vision ―To be a world class IT solution provider and to become one of the most preferred IT partner in the world.‖ SBMJCE
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Mission ―At Globals, we aim to offer cost effective world class quality IT solutions to every customer
and to translate our solutions into value for our customers. We are also committed to conduct our business in a fair, ethical, and legal manner at every level of our organization.‖
Business Philosophy At Globals, we have always placed quality over quantity, mind over machine and u nity over uni-opinion. Our work culture and philosophy has helped us to establish employee friendly workplace where team spirit and leadership is well nu rtured. There is a lot of enthusiasm among our people to perform and this enables our work more streamlined and solutions meet the prescribed time boundary. We believe in doing things through proper channels for optimum results. Nothing else would explain serving more than 200 clients worldwide. We at Globals understand we have miles to go before even looking back. Hence, we do not rest on our prior laurels. Laurels come and go, progress is the only thing on our minds, and will be the same for the time to come.
Total Quality Process At Globals, we employ a total quality process that begins on day one and carries through to the successful launch and long-term maintenance of a project. With the help of our highly trained quality assurance personnel, we check our work, test our products, and anticipate errors, working to maximize quality for the total solution we develo p. By providing high quality IT services, on t ime and at lower than market prices, we help our clients get to market faster and with more stability t han other providers. Globals shall relentlessly strive to create a unique software development environment where every employee is aware of quality and its economics.
To ensure quality from the ground up we are using accredited techniques for planning, testing, project management, requirements and configurations. To co mplement this, we also apply
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techniques to control and measure our performance and process quality to scope out opportunities for further improvement and improved technology. Our interlaced quality control policy not only helps us to streamline an application‘s development, but also to: • Offer high quality projects that exceed expectations and come in on time and on budget; • Reduce client risk by providing a predictable and controlled development process; • Focus on dynamic solutions by concentrating on the tasks at hand in the most efficient way
possible. The three most important factors that we consider and emphasize to maintain our quality standards are Process, Technology and Personne l quality that enables to Globals to offer cost effective world-class quality solution.
PRODUCTS/SERVICES PORTFOLIO
The portfolio of products and services comprises the following: 1. IT strategy. 2. Procurement and partnership 3. Business Process Improvement 4. Information Management 5. Contract Development 6. Web Designing 7. Web Development 8. Content Management System 9. Internet Marketing 10. Media Streaming 11. Custom Application Development/ 12. Custom Software Development 13. Industry Solutions 14. WAP 15. Education Management SBMJCE
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Products and Services Profile
2. Solutions offered
2.1. Web Solutions
Globals offer a spectrum of web solutions that includes high quality Web Designing, Integration and Implementation Content Management Systems, E -Commerce Solutions, Web 2.0 Solutions, Customized Portals, Hosting & Maintenance, and Development of customized web applications, including customization of Open So urce applications. We have been successful in making our Business Partner‘s internet presence successful by adopting
the methodology expressed below:
Web solutions development methodology
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2.1.1. Web Designing
Globals has the creative skills, advanced experience, and cutting edge resources essential to help illustrate clients brand and image. Highly professional web development and design staff at Globals apply a combination of proven experience with innovative design expertise to generate zeal for clients' products and services. The team o f graphic design, web design, and web development professionals utilize years of fine-tuned skills to assist small to large corporations in successful online customer communication. Globals can add value to its clients internet presence at any stage of the lifecycle like revamping an existing website, building from scratch, maintenance of the website, etc. A site must precisely convey client‘s business philosophy and approach. Globals offer a complete package of web design services, from initial planning to final implementation. Our web design services include the following services:
Graphic designing including 2D & 3D Modeling
Website Content Planning & Drafting
Logo Design & Corporate Identity designing
Website layout design
Designing Flash Intros & Animations
HTML Coding & Java Scripting
Navigation Menu
Sitemap
Newsletter design
Interactive flash web design
By holding to a thorough cycle of divergent and convergent modes, Globals comprehensively explore possible design realizations and focus on those that most successfully complete clients‘ objective.
Globals design solution follows the following basic steps: 1. Analysis – Understanding your business and its design requirements. SBMJCE
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2. Research - Visual research, image collection, competitive analysis 3. Briefing - Summarization of analysis and research with focus on objectives. 4. Conceptualization - generation of many ideas and prototypes 5. Refinement - Analysis of previous phase, extracting positive aspects and discarding others 6. Realization - Finalization of refined prototypes and po st-production Globals expert technology in design solution includes Adobe Photoshop, Adobe Flash, AJAX, HTML, DHTML, JavaScript, Swish, Dreamweaver, Adobe Illustrator, QuarkXPress, etc.
2.1.2. Web Development
Globals has been developing custom web app lications and websites since its inception. We follow a process oriented development methodology planned to minimize project risks and development time. We focus on business solutions that fulfill business objectives, instead of merely providing technical solutions. Our work is diverse and we cat er to clients from all over the world. Our clientele range from Fortune 500 companies to individual entrepreneurs. A customized web application development der ived out of the vision of the client results in higher productivity, managing information effectively, reducing cost and smooth functioning o f business processes. As the market leader in Web Solutions, Globals has always added va lue to its business partner‘s internet presence.
Some of Globals Web Development service includes:
Custom Website
Newsletters
Social Networking & Dating portals
Real Estate portals
Healthcare and Tele-medicine portals
Online Catalogue
User registration and member database websites
Event management portals
RSS feeds
Corporate Websites and more
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Advanced database driven websites can be used in a number of areas to boost positive online experiences. From the security of user password protection to data retrieved from referral tracking programs, all web sites that strive for better interactivity rely on database programming at the server.
Few database-driven websites includes:
E-commerce or online ordering systems
News feeds and finance portals
Product search and site search websites
Member database
Restricted access to sites
Event registration and more
Features of our Application Development Process
We dedicate a great deal of our consulting hours in understanding your business, your core objective & then draft a strategic plan to achieve the end in most cost-effective manner.
Our professional methodology ensures delivery on time and within the budget .
We give special emphasis on scalable web application development. A scalable web application development can accommodate the rapid business changes with ease in the time to come.
Technology Globals has teamed with the finest programmers and analysts in various web -based technologies who have great experience in their respective skill sets.
Technologies include: Internet Programming Languages ASP, ASP.NET, VB.Net, C#, PHP, Ruby, Perl (CGI),
ColdFusion, Python, JavaScript, VBScript, Active Script (Flash)
Technologies HTML, XML, AJAX, DHTML, OLE/COM, ActiveX, DCOM, COM+,
COM.NET, Cobra, WAP, J2EE, SQL, ADO, ADO.Net, .Net Compact Framework. SBMJCE
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Databases MS SQL Server, MS Access, MySQL, Po stgreSQL, Oracle, Informix, DB2, Sybase
Web Servers MS Internet Information Server (MS IIS), Apache, WebSphere, Tomcat Apache,
Jrun Operating Systems MS DOS, MS Windows 98,ME, Windows NT/2000, Windows XP, L inux,
FreeBSD, Unix.
Technologies Used at Globals.
2.2. E-Commerce Solutions Leveraging the unique combination of technical competence and business knowledge Globals delivers integrated B2C (business-to-customers) and B2B (business-to-business) e-commerce solutions. Our solutions designed to serve our clients business needs ensuring streamlined operations, improved customer service, brand awareness, co nnection with business partners and prospects. From e-commerce strategy consulting, solution development and application integration to solution deployment and post-implementation support our business analysts and technical
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experts can help you implement a dependable solution that will maximize your co mpetitive advantage and organizational productivity. Globals has a wealth of experience building and maintaining both retail and B2B e-commerce solutions. Globals e-commerce solutions allow you to start trading online quickly a nd cost effectively. Your website handles the entire sales workflow fast and securely. Orders are processed via a we b based back office, automatically updating all records and generating the required sales, invoicing, customer and supply-chain documentation. Globals‘ e-Commerce solution includes a complete lifecycle of integrating and implementation of e-Co mmerce based services our end user. The following is a typical e-Co mmerce model with various entities and third party systems like Shipping, Payment Processing, Security, Merchant Not ification, etc for which Globals has remarkable expertise.
E-Commerce Model
Clients website has easy-to-use customer relations management tools and the website content is quick to update; making it simple to buy and sell online. Globals delivers high-performance ecommerce solutions helping business partners maintain a competitive edge including multiple
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features that facilitate connect a customer to complete transactions. End -users will have the ability to place real-time credit card transactions in a secure mode, and the complete order process from a client viewpoint can be completed in a matter of minutes. Globals e-commerce solutions also seamlessly incorporate the web store into the current store operations using such tools as order fulfillment and management system, integration with several shipping gateways, and extension to POS/Accounting and other legacy systems.
Globals E-Commerce Solutions includes the following: • Online Payment Gateway integration like Citibank, VeriSign, PayPal, WorldPay, etc • Shipping Gateway integration like FedEx, DHL, UPS, etc • Inventory Management • Online Shopping carts • Customer Order Tracking systems • Mobile Commerce • Payment Management system • Tailor made payment gateways • Auctioning and Online Shop po rtals
Open Source e-Commerce Integration Globals have been successfully integrating, customizing and implementing Open Source eCommerce solutions like OS Commerce, Zen Cart, Fish Cart, etc. Globals offers one of the largest compilations of ecommerce templates for a custo mized ecommerce solution with our exclusive design and development skills and resources.
2.3. Web 2.0 Solutions
The Web 2.0 Division has taken conventional text based internet marketing techniques and combined them with Web 2.0 Technologies like audio, video, social networking and mobile promotion. The goal of the Web 2.0 Division is to get your product and service messages into the everyday lives of the internet public at lower costs than traditional media outlets.
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At Globals, we have been specializing on the state of the art Internet Technology – Web 2.0, where we have already developed various Web 2.0 applications like Social Networking Portals for various groups of interests like Medical Professionals, Hedge Fund Investors, Stu dents, Celebrities, etc. Apart from Social Networking portals, our other expertise of Web 2.0 applications includes Auction Portals, Content Management Systems (CMS), Blogs, Mobile based Web 2.0 (Mobile 2.0), News Publishing Systems, Event Management Systems and Portals for Events like Conferences, Webinars, etc, and Ecommerce portals.
Web 2.0 Solution
Key Features of Web 2.0: • Websites that use the WWW as a platform to offer application driven websites • Linking information within websites and the use of systems designed by an architecture of
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• Lightweight application development that allows for service (web services) and co ntent (RSS)
syndication • Perpetual Beta, applications are in constant state of Beta and upgraded continuously. • Lightweight business models enabled by content and service syndicat ion • A rich, interactive, user -friendly interface based on AJAX or similar frameworks.
Globals Web 2.0 Solution can assist your organization in bridging the information divide to the marketplace. Web 2.0 solution offers the next generation of online marketing tools that will enable your organization to harness the power of the Internet to reach customers in unique and varied ways. This with the goal to get people together to share their expertise and tho ughts about your products and services through social interaction thereby creating brand awareness, buyer interest and enhanced selling opportunity. Just as the open source movement changed the face of software development, so has Web 2.0's open source content model changed online marketing. Globals has gained enormous experience in the development of Web 2.0 applications for inhouse Internet Ventures and for external business partners across the world. Hence, reassuring world class quality solutions on Web 2.0 technology and with the major advantage of reducing costs in development and quicker delivery by integrating Open source technology.
2.3.1. Custom Application Development
To gain a competitive edge requ ires innovation, automation and streamlined software development. Globals satisfies requirements in almost any industry where speed and accuracy are vital. There are times, however, when a client needs a customized engineering workflow, focused functionality or a solution that requires intensely customized technology in order to stay competitive. To achieve this objective, Globals o ffers custom software development with its Agile Application Development Methodology, which is a globally proven and acc laimed
development process, and is the technology base to Globals. Through user interface reduct ion and supplementing or reducing functionality, clients easily realize their goal to maximize the automation Globals can bring to an enterprise while limiting the risk introduced through options and complexity.
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The competence and experience of Globals ensures excellent services and solutions to our clients. The highest quality standards are maintained at every stage of the development process from conceptual design to final release. We use the most popular and cutting edge technologies.
Development Process: The approach that we adopt is the iterative methodology, where the project goes through one or more iterations of all project stages till we meet client‘s expectations. We have defined processes for requirements capture, analysis, design, development, testing and deployment. We generate UML diagrams representing the Use Case Mode l, Analysis Model, Design Model, Implementation Model and Test Model.
Requirement Definition: Client requirements are gathered. This is done on the basis of information provided by the client in the form of documents, existing systems & process specs, on-site analysis interviews with end-users, market research and competitor analysis.
Analysis: A detailed analysis is carried out from the information in the vision & scope document and feature list.
Design: The application design is developed on the basis of the software requirement specification, use case specification, business rules & diagrams and the scope agreed upon in the Requirement Definition stage.
Development: The actual code based on the design is created and tested against design requirements and test cases.
Integration and Testing: The developed application is tested through test cases, t est plans and user acceptance criteria in the deployed environment, followed by client acceptance tests.
Deployment and Acceptance: In this stage, the developed application is deployed on the live server, and after complete documentation, user manual, et c, the application transfers the knowledge to the maintenance team.
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2.4. Software Solutions
Client organization's operations, strategic direction, and information system challenges are unique. Globals Inc. provides its clients with a distinctive understanding and thoro ugh assessment of your enterprise systems, from the desktop to the mainframe. Globals assessment capabilities empower clients organization to visually access, manipulate, and analyze complex data, systems, and applications. With this understanding, clients can achieve their object ives, avoid disruption, expedite implementation, and reduce t he total cost of ownership. Globals provide full-range service to Define, Develop and Support software projects.
2.5. Industry Solutions
2.5.1. Financial services Globals looks at the sweeping changes, business challenges, and cust omer demands impacting the financial services industry and sees opportunities — for virtual multichannel enterprises, expansive customer-focused services, evolving business partnerships, and cost -effective integration of today's leading technologies across your enterprise. Let us offer you a new view of the future with cutting edge solutions that transform your business and help you seize the opportunities for a successful financial services future.
2.5.2. Manufacturing Globals looks at market trends and key business issues to identify opportunities to help you streamline your time-to-market, improve employee effectiveness, enhance customer channels, speed market expansion, and build a solid infrastructure. From Customer Relationship Management, to Converged Voice and Dat a Networks, to Unified Communication, we can deliver cutting-edge solutions that equip your manufacturing firm for a successful business future in today's customer economy.
2.5.3. Retail Globals Inc is prepared to help meet the changing needs of businesses in the retail industry. We can help you make the most of your existing communications network b y giving you cost-saving SBMJCE
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efficiency and competitive savvy. Globals Inc brings you the best in next-generation communications technology backed by an impressive array of services and support to meet your needs for Customer Relationship Management (CRM), Converged Voice and Data Networks, and Unified Communication solutions.
2.5.4. Government Government at all levels is challenged with protecting peo ple, property, and infrastructure during emergencies and disasters. We believe that communications are critical to enabling government organizations to respond to, recover from, and manage through emergency situations. As a world leader in communications solutions, Globals Inc delivers powerful communications systems, applications and services designed to meet the needs of Federal, State, and Local Government bodies.
2.6. Mobile Solutions Globals Inc. Mobile Solutions provides network operators and OEM partners with a complete end to- end solution for the delivery of easy to use, simple to support, and cost effective mobile data applications. As a creative software solutions developer and system integrator with proven credentials in advanced technology, Globals Inc can speed the efforts of your organization to bring wireless applications to market. Globals Inc provides the tools and infrastructure to fit your mobile strategy - whether it's accessing e-mail and PIM data, accelerating the delivery of data to remote users, or deploying full-scale, customized mobile solutions. We offer you Wireless applications and Micro-co ntroller systems that can be monitored from any remote locations. Globals Inc also provides solutions like SMS applications, Group SMS, SMS controlled devices, etc. Overall our aim is to support our partners, enabling them to deliver a branded pro duct that hides the technological complexity of mobile data; is simple to use; and is geared for the mass market.
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3. Products
3.1. EducationERP.net EducationERP.net is a specialized ERP solution for E ducational Institutions resulting in better management and enabling institutions with better decision making capabilities. With excellent domain and technical expertise, educationERP.net has been developed by working closely with premium institutions and domain experts in the education sect or. educationERP.net has evolved as the most preferred ERP for educational institutions. EducationERP.net is our ingenious effort to streamline your Institution‘s process starting from admissions management to placement cell management, we have an answer to all your problems. A range of modules of our ERP would facilitate you to manage your institution successfully. educationERP.net helps in controlling the working and functionality of your institution. It also strengthens the bond between students, teachers, parents, management and the administration staff of your institution. The open ended and scalable architecture enables our ERP to be customized according to your unique requirements. Concisely, educationERP.net is a comprehensive and an extremely user friendly solution with Web 2.0 interface and mobile enabled ERP.
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4. Business Process Outsourcing Business Process Outsourcing (BPO) - Enables you to focus on the core activities of your business, by outsourcing the labor-intensive processes where the objective of the processes, which is a non-value addition task, is effectively and efficiently achieved in terms of cost and time. At Globals we deliver a predictable and flexible process management services. We offer the following services:
Insurance Process
Data Management Services
Knowledge Process Outsourcing
RPO
4.1. Insurance At Globals we offer highly cost effective healthcare insurance data processing and administrative services. We offer claims administration and management solutions to PPOs, HMOs, TPAs, Insurance carriers, Re-Insurance Carriers, Medicaid, and Medicare Administrators, Self-funded plans, Benefit administrator and provider groups. Our entire portfolio of Front-end Services, Claim Administration Services, Back-end Pro cessing Solutions, and IT Services allows GIPL to provide a complete & integrated package of insurance data processing services.
4.2. Data Management services Our data-entry experts work with utmost accuracy and co nfidentiality. We plan the service that we offer for your specific data entry projects and form consistent processing requirements and the technologies we use, enable us to deliver on time data quality, accuracy, and swift turnaround time.
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Area of Opearation
Global operation in 11 countries, excluding India. Headquarters is at Bangalore, India and having branches in the following countries: USA, UK, Spain, Netherlands, Italy, Germany, Chile, Canada, Bangladesh, Bahrain, Australia.
Ownership Pattern
Privately held sole proprietorship company registered in India as Globals ITeS Pvt.Ltd. Owned by the founder Mr.Suhas Gopinath, a Resident of Bangalore.
Registered Headquarters
Globals ITes Pvt. Ltd., Samriddhi, 10, 2nd Floor, RMV 2nd Stage, New BEL Road, Bangalore - 560094 INDIA.
Achievements/Awards
Globals was chosen as one of 9 ICT partners of World Bank. Member of World Economic Forum. Information and Communication Technology (ICT) partner of European Un ion.
Corporate Social Responsibility
Organized Global Dignity Day at Jain Vidyaniketan. Globals has adopted Deena Seva Sangha School. Employees of Globals have volunteered in social service initiatives of Yuva Bengaluru, a NGO.
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Future Growth Prospects
As the world gets out of the recession, IT spending by companies is going to increase which in turn would benefit Globals. With the increase in adoption of Software as a Service, popularly known as SaaS model of application delivery, Globals foresees an increasing d emand for its SaaS based applications. In addition, Mr.Suhas Gopinath, CEO & President of Globals in an Exclusive interview revealed his plan of expanding operations into Pakistan, thus being the very first indian company to setup its branch in Pakistan. Company is looking for Venture Capital funding to scale up its business. Also, it has plans fo r going public through IPO (Initial Public Offering) in the near future. Globals has launched a new internet venture named ‗DoRef‘ which is a social networking site for
officials.
Global Partners Network
a) HCL b) European Business School c) World Economic Forum d) WHU e) BrainNet f) Hindsight g) World Bank h) European Union
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HOW WILL WORKING WITH GLOBALS BE CHEAPER?
The way Globals keeps its cost low can be explained by comparing the salary o f the talented programmer in US versus India. While a talented programmer in the US will be in the higher salary range, the actual cost to company for every employee is substantially more. In addition to the salary, every company needs to make other statutory payments for each employee. In addition, for each role, there will be other infrastructure costs such as hardware, software, utility, and space costs that get added as overheads. About the earnings of Globals‘ employees it was observed that the employees in India earn
between Rs.20,000 to 25,000 a month. (approximately equal to US $ 550 to 650) which is considered as a good wage in India but is about one third of what the Globals employees get (approximately US $1500) in the western countries. In a typical project, the analysis, architecture and des ign takes up approximately 15% of the time in terms of effort and costs approximately 20% of the tot al cost, project management takes up approximately 20% of effort and 28% of cost, and development and testing takes the remaining 65% effort and 52% of the cost.
Overall, a 12 man month project that would take approximately a year for a programmer in the US (costs about $100,000) can be completed in about 6 months by a team in India, and at an approximate total cost of $25,000. Thus, Globals delivers cost effective, quality solutions within the stipulated t ime period to its clients.
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MCKINSEY & COMPANY 7S FRAMEWORK MODEL
What is 7S-Model? The 7S-model is a tool for managerial analysis and action that provides a structure with which to consider a company as a whole, so that the organization‘s problems may be diagnosed and a strategy may be developed and implemented. The seven – Ss is a framework for analyzing organizations and their effectiveness. It looks at the seve n key elements that make the organizations successful or not.
The 7S diagram illustrates the multiplicity interconnectedness of elements that define an organizations ability to change. The theory helped to change managers thinking about how companies could be improved. It says that it is not just a matter of devising a new stra tegy and following it through. Nor is it a matter of setting up new systems and letting them generate improvements.
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To be effective, their organization must have a higher degree of fit, or internal alignment among the seven Ss. All Ss are interrelated, so a change in one has a ripple effect on all others. It is impossible to make progress on one without making progress on all. Thus, to improve their organization, you have to pay attention to all of the seen elements at t he same time. There is no starting point or implied hierarchy-different factors may drive the business in any one organization.
STRATEGY Strategy is a plan an organization formulates to gain substantial advantage over the competition. It is the art of devising and employing a system of activities that mobilizes all resources towards a valuable goal. ―Strategy is the determination of basic long term goals and objectives of an
enterprise, and the adoption of course o f action and the allocation of resources necessary for carrying out these goals.‖
Strategies adopted by Globals Globals has drastically grown from a small home office to a reputed MNC by adopting the following strategies: Generic Competitive Strategies a) Low Cost Leadership Globals from its inception has provided its quality services at a cost which is significantly lower than its competitors to achieve a rampant growth. b) Differentiation EducationERP.net, a flagship product of Globals is differentiated in terms of technology used, delivery model, customer service, which contributes a considerable portion to company‘s revenue. Ansoff‟s Matrix: Grand Strategy
Current Market
New Market
Current Product
Market Penetration Strategy
Market Development Strategy
New Product
Product Development Strategy
Diversification Strategy
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Also, it has separate functional strategies for HR, Finance, Operations and Marketing.
STRUCTURE Structure describes the hierarchy of authority and accountability in an o rganization. These relationships are frequently diagrammed in organizational charts. Most o f the organizations use some mix of structures pyramidal, matrix or networked ones to accomplish their goals. A structure is the formalizing of relationships, roles, and responsibilities in order to organize and perform work. In simple terms, Structure is the pattern in which the various parts o r components are interrelated or interconnected. Therefore, organization structure is the pattern of relationships among various activities and positions. Because various persons hold these positions, the struct ure is the relationships among the people in the organization.
Management Structure at Globals
Chief Executive Officer & President – Mr.Suhas Gopinath Chief Operating Officer – Mr.Vineeth Kumar. Chief Technology Officer and Vice President,Software Solutions – Mr.Samuel S Carre Vice President, Finance – Mr.Anil Desai Vice President, Strategy and Marketing – Ms.Amruta Desai Vice President, Worldwide Human Resources – Mr.Micheal Vaughan Senior Vice President, e-Commerce & Web So lutions – Mr.Vantt Chris
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Board of Directors Chairman of the Board (CEO Deepti Marketing Services)
Mr. M.R. Gopinath
Vice Chairman of the Baord (CEO, Globals Inc.)
Mr. Suhas Gopinath
Executive Director (COO, Globals Inc.)
Mr. Vineeth Kumar
Non-Executive Director (Chairman, Jain Group of institutions)
Mr. R Chenraj Jain
Non – Executive Director (CEO Deepti Electronics & Electro-
Dr. Sheshadri M.R.
Optics Pvt. Ltd.) Executive Director (Legal Counsel, Globals Inc.)
Mr. Joshi D.N.
Non-Executive Director (NASA – Washington DC.)
Dr. Narayan Rao
Departments Web Solutions HR & Administration System & Administration Opalesque Jadoos Strategy & Marketing .Net Development (EducationERP)
SYSTEMS A system refers to the processes used to manage the organization. It includes:
Management information Systems
Innovation Systems
Performance Management System
Financial System/Capital Allocation System
Compensation System/Reward System
Customer Satisfaction Monitoring System
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including compensation systems, management information systems and capital allocation systems that govern everyday activities.
Systems used in Globals Globals has automated its systems such as Employee Attendance using a web based application GScheduler, Leave application, HR using a ERP system called OrangeHRM, and all the marketing activities are synchronized together using S ugarCRM.
STYLE Style of leadership or relationship refers to the manner in which an individual uses his or her talents, values, knowledge, judgment, and attitudes to lead and relate to others. Style expresses the person‘s character. Style is the leadership approach to top management and the organization‘s overall operating approach; also the wa y in which the organizations employees
present themselves to the outside world, to suppliers and custo mers. In simple words, Style is the pattern of behavior, which the leader adopts in influencing the behavior o f his followers in the organizational context.
Management Style in Globals Globals encourages entrepreneurial spirit in its employees. The leadership at Globals is result oriented and emphasizes on t ime management. Leaders at Globals are decisive, take initiative, and believe in teamwork. They believe in delivering the qua lity irrespective of the quantity.
SKILLS A skill is the ability, knowledge, understanding, and t he judgment to accomplish a task. Skills maybe defined as what the company does best, the distinctive capabilities and competencies that reside in the organization.
Globals has mastered the best practices in these areas o f management – Project management, Off sourcing related activities, Marketing management, Jargon free pract ical IT consulting and handling mission critical application development projects. SBMJCE
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STAFF Staffing maybe defined as filling, and keeping filled the positions in the organization structure. This is done by identifying workforce requirements; inventorying the people available and recruiting, selecting, placing, promoting, appraising, planning the carriers of co mpensating and training or otherwise developing both the candidates and current job holders so that the task is accomplished effectively and efficiently. Globals recruits both freshers and experienced people. Globals is an equal employment opportunity provider without any discrimination like race, gender etc.
SHARED VALUES Shared values are what engender trust. Values are the identity by which a company is known throughout its business areas. These values must be explicitly stated as both corporate objectives and individual values. A shared value is an essential characteristic or attribute promoted by the organization to motive the behavior of members of the organization.
Globals has few core values which are the essence of their business: Leadership – Entrepreneurial spirit Integrity – Ethical & Legal business practices Swiftness – Timely, quick delivery to clients. Commitment – Accountability in delivering the promised.
Globals follows these code of ethics: Respect for people Training and Development Maintain confidentiality Ethical business practices Green policy
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S.W.O.T ANALYSIS OF GLOBALS
Strengths > Brand Name
Weaknesses > High employee attrition rate
>Advanced Technologies
> Unable to get deals of large sum.
> Efficient Management team
> Not a SEI-CMM Level 5 company which is mandatory to get most of the Govt and PSU projects.
> Cost advantage > Quality and matured process
S.W.O.T Analysis
Opportunities > Govt spending on IT increased. > FDI in education sector to be allowed. > High growth potential in new markets. > Greater scope to service domains other than BFIS like manufacturing, retail, infrastructure, logistics etc.
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Threats > Increased competition from low wage countries like China, Indonesia. > Rupee - Dollar exchange rate fluctuations affects revenue. > Easy availability of substitute products > US govt is against outsourcing
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MY LEARNING EXPERIENCE
During my 10 weeks tenure at Globals as a Trainee – Strategy & Marketing, I have learnt a number of the invaluable lessons about the corporate world and how to face the challenges it throws at us at every step.
Accomplishments
1. Developed corporate video for EducationERP.net 2. Published whitepaper on ― Software as a Service (SaaS)‖ 3. Conducted market research of Indian Education sector, market sizing and potential. 4. Done competitive analysis for Education ERP. 5. Done Strategic analysis of external environment of Globals. 6. Worked on Search Engine Optimization (SEO) by posting blogs, tweets for EERP. 7. Prepared Sales Documents and material to help HCL Sales Associates in promoting Education ERP. 8. Done analysis of GESS(Gulf Education Supplies and So lutions) Exhibition to decide whether it is worth attending for Globals as an Exhibitor. 9. Prepared a case study on the success story of a client of Education ERP. 10. Assisted Business Analyst and Vice President, Marketing in Client Presentations.
Learning
1. Learnt how to conduct market research. 2. Learnt to use many applications such as Go To Meeting, Team Viewer and SugarCRM etc. which are used in Marketing activities. 3. Got good exposure to deal with clients, which gave me a clear idea about B2B marketing scenario and processes. 4. Meliorated the skill of writing reports and publishing whitepapers. 5. Gained insight about new technologies like SOA, SaaS, Cloud Computing, SEO etc.
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PART – B
INTRODUCTION
This part is further divided into four sections for the purpose of study.
Section-I deals with Strategic analysis of Globals macro environment. Section-II deals with Competitive analysis for EducationERP.Net of Globals. Section-III deals with the Indian education sector analysis with regards to Educat ionERP.Net Section-IV deals with studying the customer perception, expectat ion and level of satisfaction.
NEED OF THE PROJECT/SIGNIFICANCE
In today‘s ever changing, volatile market scenario, it becomes very important for the
organization to analyze its external environment and to understand its impact on the business.
As there are lot of competitors who are striving to capture a better market share, it becomes essential for the organization to do competitive analysis. In order to compete best in the market place one must know key information about competitors.
Also, determining the market segment to serve and knowing depth and breadth of those segment is needed for effective marketing.
Finally, “Gaining a new customer is 5 times costlier than retaining the existing customer”, says Marketing experts. Hence, knowing what client feels about the product/services offered, understanding the client satisfaction level is much required in order to serve the clients better.
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SECTION-I General Introduction This section deals with the analysis of external environment o f Globals.
Problem Statement Studying the external environment of Globals to analyze the position of company strategically with respect to the factors in macro environment.
Objectives of this study Scan the Political, Economic, Social, Techno logical, Environmental and Legal
environments that affect the business directly or indirectly. Foresee the long-term impact of those factors from organizations perspective.
Scope of Study Data collected from the news articles featured in various Newspapers and Magazines. Analysis is based on the data of Financial Year 2008-09.
Methodology Secondary research conducted to collect data about the macro environment. Sources of data: Government websites NASSCOM Gartner Research AT Kearney Research Data Quest India Silicon India
Limitations of study The economic condition of IT industry getting revamped from the starting of 2010. But during FY 2008-09 scenario was totally different as economic slowdown, Satyam fraud resulted in reduced growth of the sector. Data used in this study is of FY 2008-09 and hence, might not be represent the latest quarter information. SBMJCE
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STRATEGIC ANALYSIS OF GLOBALS
EXTERNAL ENVIRONMENT – P E S T L E ANALYSIS
1. Political Stability: Highly Stable Government at
Positive
Central as well as in State. 2. U.S. government has declared that U.S companies
Political
that outsource IT work to other locations other than
Deep Negative
U.S. will not get tax benefit. 3. Government owned companies and PSUs have decided to give more IT projects to Indian IT
Positive
companies. 4. Terrorists attack on Mumbai, bomb blasts
Negative
in Bangalore.
1. Increase in Global IT spending(Demand)
Positive
2. Domestic IT Spending (Demand): Domestic market
Positive
to grow by 20% (CAGR) - NASSCOM.
Economic
3. Currency Fluctuation. 4. Attrition: High attrition rate in the industry with increase in the job opportunities. 5. ECOMONIC ATTRACTIVENESS due to cost advantage and other factors. (Source: Global competitiveness report-2010)
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Negative Deep Negative
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India continues to be the leader in terms of “Financial Attractiveness”
Financial Attractiveness of Top 5 Global service locations
1. Language spoken: English is widely spoken language in India, English medium being t he most
Highly Positive
accepted medium of education. Thus, India boasts of
Social
large English speaking population. 2. Education: A number of technical institutes and
Positive
universities over the country offer IT education. 3. A large number of population is in working age.
Positive
i.e., 25-45.
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India creates a large pool of skilled IT professionals each year, to meet industry
Number of IT Graduates in India
As per NASSCOM Strategic Review report, India is one of the few countries to have an increasing share of working population.
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1. High penetration of Telecommunication services with world‘s lowest call rates.
Enterprise telephone services, 3G, Wi-max and VPN are poised to grow. 2. Internet Backbone: Due to IT revolution of
Highly Positive
1990s, Indian cities and India is well connected with
Techno
undersea optical cables.
-logical
3. New IT technologies: Technologies like SOA,
Positive
Web 2.0, High-definition content, grid computing, cloud computing, green IT solutions etc and
Positive
innovation in low cost technologies is presenting new challenges and opportunities for Indian IT industry.
1. IT Act: Indian government is strengthening the IT act, 2000 to provide a sound legal environment for
Highly Positive
companies to operate esp. related to security of data in transmission and storage, etc.
Legal
2. Companies operating in Software Technology Park (STPI) scheme will continue to get tax-benefit till 2010.
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Energy Efficient processes and equipments:
Environ -mental
Companies are focusing on reducing the carbon footprints, energy utilization, water consumption,
Positive
etc. Green IT solutions gaining more importance.
INTERPRETATION OF PESTLE ANALYSIS
POSITIVE IMPLICATIONS Indian Government and PSU‘s to increase IT spending and projects to be given to
indian companies. With the allowing of FDI in Education sector, market for ERP solutions will
expand.
NEGATIVE IMPLICATIONS U.S Government is against outsourcing IT activities to India and remo ved tax
benefits for the outsourcing companies. High employee attrition rate in the industry. Rupee – Dollar rate fluctuations hurting export revenue.
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BCG MATRIX FOR OFFERINGS OF GLOBALS INC.
Market Share High
Low
EducationERP,
IT consulting,
Custom application development,
Social Networking.
SaaS based applications.
Market Growth
High
Web 2.0, CMS, Off sourcing.
Media Streaming.
Low
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ABOUT EDUCATIONERP.NET
With the stupendous growth of the education sector, edu cational institutes are becoming increasingly complex organizations just like corporate houses. Therefore, today educational institutions deserve the best modern management practices and state -of-the-art technology, which improves performance in terms of cost, speed, & accuracy. In these days of information overdrive, it is most critical to have an Enterprise Resource P lanning System (ERP), which is a complete solution to all the educational ma nagement hassles.
EducationERP.net™ is a flagship product of Globals Inc. Globals has a remarkable
experience in service-offering for the Education Industry since its inception starting from Basic School Management Systems to Mission Critical enterprise systems for the H igher Education and Universities.
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SECTION-II
General Introduction This section deals with the Competitive Analysis for Education ERP.Net o f Globals.
Problem Statement To study the competitors and compare them with Education ERP on different parameters.
Objectives of this study To determine the technological superiority of the co mpetitors. To know the customer satisfaction level for competitors products.
Scope of Study Only 6 major domestic competitors are chosen from a vast 100+ companies in the same segment. International players are not considered as this study is confined only to India.
Methodology Primary research: few key details about the competitors is collected by calling them up by disguising as a prospective customer, since some of the data were not disclosed. Secondary research conducted to collect data. Sources of data: Silicon India Capterra Business Directory Respective company‘s website.
Limitations of study Only 6 competitors from domestic market are chosen for the study. Complete information about the flow of processes within the competitors organization was not available and were not revealed.
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COMPETITIVE ANALYSIS FOR EDUCATION ERP.NET
Major competitors for EducationERP.net of Globals are: Mylyceum from PacSoft School Management System from Entab Smart Campus from Idenizen i-school from CEON Literom from WHBS Quickschool from NIIT
Competitive analysis conducted considering the following parameters:
Product offered for which segment? K12, Higher Education.
Number of modules available
Customer Satisfaction rating on a scale of 5.
Whether offers a web based solution
Total number of implementations done so far
If the company is Venture Capitalist Funded?
Average price per implementation
Technology platform used in the development
Customization time required
Areas covered by marketing channel.
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Number of modules offered
Interpretation:
It is very important that the number of modules offered meets the requirement of the educational institutions. CEON offers the highest number of modules, while Globals offers the next highest number of modules. Since, It is very essential for any products success, co mpany must offer what clients want; not what they have.
Globals must increase the number of modules offered. By benchmarking with international Education ERP vendors like Oracle PeopleSoft, DataTel, SCT it should make its product.
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Customization time required
Interpretation:
Once the sales order is closed, companies undertake a customization process to make the product fit to the requirement of education institute. The time required for this pro cess matters a lot in Customer decision making, when the customers focus is on Fast Introduction of ERP solution for their institute.
CEON, NIIT, and Globals almost take the same amount of time to customize the product.
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Customer Satisfaction Rating out of 5
Interpretation:
Client satisfaction rating is obtained by a third party IT product reviewing and e valuating company. On a scale of 5, Education ERP.Net and NIIT Quick school scored a decent 4 points. It can be found from the above chart that many of the competitors customers are dissatisfied with the service they are getting. Hence, G lobals must take the advantage of this by acquiring clients who are changing vendor.
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SECTION-III
General Introduction This section deals with the market analysis for educationerp.net (Indian Education Secto r Analysis)
Problem Statement A clear picture of the Indian Education Sector was not available which resulted in the difficulty of positioning the ERP product and this information was critical for the organization to get Venture Capital (VC) funding.
Objectives of this study 1. To get segment wise data of educational institutes in India. 2. To get information about average number of students enrolled per segment, revenue of each of these segment and CAGR( Cumulative Annual Growth Rate). 3. To help management in making sales projection for the financial year 2010-2011.
Scope of Study Covers the geographical area of Indian subcontinent and includes data about Pre-Schools, K-12, Higher Education, Training institutes.
Methodology Design
Indian Education Sector divided into the following segments: Pre-School K12 Institutes Teachers Education Institutes Polytechnic Colleges Graduation Colleges Engineering Institutes SBMJCE
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Medical Colleges MBA Institutes Professional Training Institutes
Secondary research method is used to collect segment wise data. Sources: Government: AICTE, UGC, HRD Ministry. CLSA, IDFC Research re ports on ‗Indian Education Sector‘.
Limitations of study Time limit was the major constraint. No clear information was available about some segments like Coaching & Training, play homes/preschool, as these formats basically run in home/small private space w ith no need of affiliation or recognition from authorities.
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MARKET ANALYSIS FOR EDUCATION ERP.NET
Indian Education Sector: Segment wise Statistics June.2009 Segment
No of
No. of
Market
Market
Institutions
Students
size(2008)
Potential(2012)
in
in US $
in US $ Million
Segment
Million
Preschool
3000
802345
307
1024
K12 Institutes
75060
90000000
19520
30899
Engineering
1400
1440000
4596
6974
Medical
140
65000
346
521
MBA
2639
316000
2017
3854
Polytechnic
1674
1193750
635
912
Teachers
1669
333800
142
210
Graduation
14300
7734254
6582
12464
Training
7000
6023000
7689
13240
Education
Institutes
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SEGMENT WISE MARKET ANALYSIS
Preschool Segment
In Preschool segment, Key Players listed below ac count for 2000 institutions out of 3000 institutions.
KidZee Euro Kids Apple Kids Shemrock Kangaroo Kids Tree House Bachpan Podar Jumbo Kids Mother‘s Pride DRS Kids Sunshine
Other major preschools account for 1000 institutions across India.
Interpretation:
Preschool market is growing rapidly with an expected CAGR of 36% to reach US $ 1024 million by 2012. Globals must focus more on this segment, particularly target chain of schools like Kid Zee, Euro Kids etc. as these organized players can easily afford ERP solutions. For the unorganized players it is quite difficult to go for ERP solutions with their limited resources.
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K12 Segment
Interpretation:
This segment constitutes the highest number of institutes (75 thousand) with largest student universe (90 million). Kinder Garden to Class 12th (K12) segment is expected to grow at 12% CAGR to reach US $31 Billion by 2012. This is the highly targeted market segment by Globals as well as competitors and market potential is the highest compared to other segments.
Engineering Segment
Interpretation:
Number of engineering institutes is 1400 and during 201 0-11 it is expected that more than 400 institutes will be added newly. This category of market is always ahead in adopting the technology hence, more emphasis has to be given to this segment.
Medical colleges segment
Interpretation:
Number of medical colleges is around 140 and constitutes a student universe of 65000. Though not a huge segment like K12 and Engineering, this segment is attractive since the marke t potential is not exploited yet by any o f the player. For Globals this will be a new segment to cater to. SBMJCE
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MBA Institutes Segment
Interpretation:
Number of MBA institutes is growing at a rapid pace compared to Engineering and Medical institutes and revenue of the segment is expected to reach US $ 3 billion by 2012. So, Globals must capitalize this opportunity by focusing on th is segment specially in Metropolitan cities.
Professional Training Institutes
Key Players:
NIIT
Aptech -IT and Aviation
Avalon
Jet King
ICA
CMS
VETA English Training
Russell English Training
Frank Finn
K10
Agarwal classes
Brilliance
Mahesh Tutorial
FIITJEE
Career Launcher
TIME
Career Forum
IMS
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Interpretation:
The market potential of this segment is US $ 7.5 billion and is expected to reach US $ 14 billion by Year 2012. This is the untouched market segment with least market penetration among a ll segments. Group of Institutes and Institutes with multiple branches which are running in different geographic locations are in a need of good connectivity and synchronization of data. This segment has some of the most successful chain of institutes like TIME, VETA, Frank Finn et c. Education ERP of Globals has to be projected as the solutions for the problem these institutes facing while integrating their business processes.
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SECTION-IV General Introduction This section deals with measuring the client satisfaction level with regards to Globals.
Problem Statement The purpose of the study is to understand the level of customer satisfaction, thereby understanding the customer base, their perception and their content ment with the service provided by Globals.
On the basis of this problem statement, the following specific objectives have been crystallized.
Objectives of this study To understand the customer base of Globals. To understand customers perception about Globals. To gauge the effectiveness of service provided by Globals To measure the level of client satisfaction of Globals. To understand the customer expectations and their response to new services offered by
Globals.
Scope of Study The study will cover the overall customer opinion survey on customer satisfaction and the study will be restricted to few clients only. The stud y will be done to analyze the satisfaction level o f the customers, and the responses will be related to the project done period only.
Methodology Formal research will be conducted to study the level of client satisfaction. The study requires data to be collected from Primary research, which will be do ne using Online Questionnaire Survey method.
Sample Size: A sample size of 30 organizations who are clients of Globals has been selected.
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Sources of data The data required for the analysis will be co llected as follows
Primary Data: In order to collect data a structured questionnaire is prepared. In the questionnaire, questions are presented with exactly same wordings and exact ly in the same order to all respondents in order to elicit the right responses.
Limitations of study Time limit was the major constraint. Since the approached respondents were at Senior Manager level, it was quite difficult to get response from them. The result and analysis are based on the customer survey method and small sample size has taken only 30.
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CLIENT SATISFACTION SURVEY
1. From how long you are a client of Globals?
Response
No of Respondents
Percentage
0-1 Years
7
23%
1-2 Years
12
40%
2-4 Years
6
20%
4+ Years
5
17%
Interpretation: Out of 30 respondents 17% are the clients of Globals for more than 4 years which implies that Globals is providing quality cost effective solutions and hence is able to retain the clients. SBMJCE
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2. What is the employee strength of your organization?
Response
No of Respondents
Percentage
5-100
16
53%
100-250
7
23%
250-1000
5
17%
1000+
2
7%
Interpretation: Out of the chosen 30 organizations, 53% are small scale organization with <100 employees, 40% are medium scale and 7% are large organizations. Small and medium scale companies scored highest growth during fiscal 2008-09 accord ing to Economic Times. (40% GR compared to 20% GR of large companies.) This would result in increased IT spending by these co mpanies.
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3. What is the annual revenue of your organization?
Response
No of Respondents
Percentage
12
40%
US $ 10-50 million
17
57%
> US $ 50 million
1
3%
Interpretation: 57% of clients of Globals earn a annual revenue of
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4. What product or service of Globals you are using?
Response
No of Respondents
Percentage
Web Development
8
27%
Flah/Graphic design
3
10%
14
46%
5
17%
Education ERP Custom Application Development
Interpretation: 46% of the clients are using Education ERP which shows majority of clients are Education Institutes. Next are 27% clients using web development service. Custom application development and Graphic design services account for the rest.
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5. Are you satisfied with the processes and quality of the services provided by Globals?
Response
No of Respondents
Percentage
Yes
23
73%
No
7
27%
Interpretation: 73% of the clients expressed that t hey are satisfied with the quality and process of the solutions provided by Globals. But more than a quarter of clients(27%) are dissatisfied with the service which Globals has to address quickly.
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6. Do you think pricing of the products/services are appropriate?
Response
No of Respondents
Percentage
Very high
3
10%
High
5
17%
Proper
16
53%
Low
6
20%
Interpretation: Majority of clients feel that Pricing of services is proper(53%), mere 10% told that its very high. 20% of the clients told its low. Overall, the Pricing policy of Globals is the key reason that keeps its clients satisfaction high.
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7. Rate the service provided by Globals. Response
No of Respondents
Percentage
Excellent
5
17%
Good
15
50%
Average
8
27%
Poor
2
6%
Interpretation:
About 50% of the clients rated service of Globals Good and 17% rated it as Excellent. Rating for the services of Globals gives positive outlooks and affirms the fact that Globals provides world class quality solutions and are on their to es to serve the customer every time. SBMJCE
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8. How did you came to know about Globals?
Response
No of Respondents
Percentage
Website/Blog
7
23%
Media coverage
12
40%
Sales personnel
6
20%
5
17%
Word of mouth
Interpretation: Starting from its inception Globals got huge media co verage as promoter Suhas Gopinath is famous as world‘s Youngest CEO. No wonder most of the clients came to know about Globals
through Media coverage. SBMJCE
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9. Are you aware of the fact that, Globals is providing IT applications also on „Cloud Computing‟ model (SaaS)?
Response
No of Respondents
Percentage
Yes
13
43%
No
17
57%
Interpretation: 57% of clients told they were unaware of the fact that Globals also provides its application on cloud. Inference can be drawn from the above data that Globals is not updating its clients about new offerings. Hence, newsletters, tweets, e-mails, catalogues has to be sent to clients periodically to keep them updated. SBMJCE
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10. Would you like to use IT applications on SaaS model? If yes, rate the reasons based on your priority, why you would go for SaaS model?
Response
No of Respondents
Percentage
Ease of use
11
37%
Mobile access to data
13
43%
Fast Introduction
7
23%
Automatic upgrades and updates
10
33%
IT cost saving
19
63%
Interpretation: IT cost saving, Ease of use, Mobile access to data are the key drivers for adopting SaaS based application according to the priority of clients. SBMJCE
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FINDINGS Strategic analysis of Globals
Globals is well situated strategically, with very good growth o pportunities. Capitalizing the opportunities posed using its strengths has to be the focus for Globals.
Competitive analysis of Globals
Major competitors of Globals in Education ERP market are: CEON, NIIT, which are consistently striving to be the best in terms of technology, unique offerings, better customer service and ultimately to own more market share. Globals must benchmark its business process with international vendo rs like PeopleSoft, DataTel to make itself more competitive.
Education Market research
Indian education sector is booming. Many o f the segments are untouched, like medical institutes, professional training institutes etc. Globals must harness this potential.
Client satisfaction survey
Clients of Globals are satisfied with the quality, responsiveness, processes of Globals. Many of the clients are not aware of new offerings from Globals, which has to be resolved soon.
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RECOMMENDATIONS
Globals needs to focus more on delivering SaaS based IT solutions, since its going t o be the next big thing according IT Trend Analyst firm Gartner. It must increase breadth of its offerings, to serve new set of clients in different industry segments. Globals must enter into new markets. Expanding its base in Euro pe, North America, and AsiaPacific region has to be done at the earliest. Globals should focus more on growing its partner‘s network to strengthen its distribution channel for Education ERP.
In addition, meeting the criteria to get SEI-CMM level 5 company status is very crucial for t he company to get projects from Government and PSU‘s. Getting ISO certification is very essential for company to ensure its global clientele base about the quality of the process.
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CONCLUSION
Globals is emerging as one of the good IT company in India. Already it has served more than 200 clients globally starting from individual entrepreneurs, small and medium scale enterprises to fortune 500 companies. Still, it‘s a long way to go for Globals.
In the present situation, Globals must expand its business operation by getting financing from Venture capitalists or from Banks. Company should strengthen its competitive position by Research & Development to have unique selling proposition. This project gave me business acumen about the IT industry and the responsibilities I have given made me industry ready by providing me an opportunity to handle marketing activities like client presentations, interactions with clients, using CRM solutions etc. This project has helped me understand the importance and significance of consumer satisfaction and has given me exposure to the practical side of IT industry and at the same time enhanced my knowledge by applying theory learnt in class to practice.
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ANNEXURES
ONLINE QUESTIONNAIRE (www.surveymonkey.com)
NAME:
_________________________________
DESIGNATION: ____________________________ ORGANIZATION: ___________________________ CONTACT NUMBER: ________________________
( Tick which is applicable)
1. From how long you are a client of Globals? a) b) c) d)
0-1 Years 1-2 Years 2-4 Years 4 + Years
2. What is the employee strength of your organization? a) b) c) d)
5-100 100-250 250-1000 1000+
3. What is the annual revenue of your organization? a) < US $10 million b) US $10-$50 million c) > US $50 million SBMJCE
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4. What product or service of Globals you are using? a) b) c) d)
Web development Flash/Graphic design Education ERP Custom Application Development
5. Are you satisfied with the processes and quality o f the services provided by Globals? a) Yes b) No
6. Do you think pricing of the products/services are appropriate? a) b) c) d)
Very high High Proper Low
7. Rate the service provided by Globals. a) b) c) d)
Excellent Good Average Poor
8. How did you came to know about Globals? a) b) c) d)
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Websites/Blogs Media Coverage Sales Personnel Word of mouth
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9. Are you aware of the fact that, Globals is providing IT applications also on ‗Cloud Computing‘ model(SaaS)? a) Yes b) No
10. Would you like to use IT applications on SaaS model? If yes, rate the reasons based on your priority, why you would go for SaaS model? Ease of use Mobile access to data Fast Introduction Automatic upgrades and updates IT cost saving
Any suggestions or feedbacks ___________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________ ____________________________________________________________________
-Thank You-
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