This document discusses how organizations need to transition from traditional "organizations of yesterday" to "organizations of tomorrow" in order to remain competitive in a rapidly changing global business landscape. It outlines three foundational pillars that organizations of tomorrow should be built on - being digital, agile, and global. It also describes five key levers that can help organizations unlock their potential through these pillars: talent, markets, innovation, customer engagement, and operational excellence. The document uses examples and case studies to illustrate how leading organizations are transforming themselves through these pillars and levers to adapt to disruption.

1. This report is solely for the use of Zinnov Client and Zinnov Personnel. No Part of it may be quoted, circulated or reproduced for distribution outside
the client organization without prior written approval from Zinnov.
Building “Technology Organizations of Tomorrow”
3rd October, 2014

2. Zinnov is one of the world’s leading management consulting firms with
a focus on helping organizations globalize their business
2
 Started in 2002 with a focus on helping technology organizations globalize
their operations
 Operations in Silicon Valley, Houston, Bangalore, Beijing, Singapore and
Delhi
 120 consultants spread across these locations
Evolution
Service offering
Customer Type
Focus Areas R&D Innovation Talent
Global Business
Corporations
New Age Digital
Firms
Government Associations
Balanced
globalizatio
n
Setup
strategy
Growth
strategy
GAP
Business
Transformatio
n
Technology

3. Zinnov’s consulting clientele has a heavy representation from the top
10 of each industry vertical (illustrative list)
3
ClienteleVertical
Semiconductor/CE
Manufacturing R&D
Enterprise software
companies/ storage
Companies
Telecom and
Networking

4. Zinnov is a globalization advisory firm with strong capabilities in
defining the globalization roadmap for organizations
4
Engineering
& IT
Excellence
Globalization
Strategy Review
& Definition
Location
Analysis &
Captive Set Up
Sourcing
Strategy, Vendor
Selection &
Vendor
Management
Globalization
Accelerator
Platform
Industry
benchmarks and
frameworks
Networking
opportunity with
peers
Thought leadership
and on demand
insights
Branding
opportunities
Business
Strategy &
Expansion
Business
Strategy
Account
Management
M&A/Operation
s Optimization
Customer
Connect
Emerging
Markets
Direct Sales
Maximization
Channel Design
and Monitoring
Solution
Ideation
Opportunity
Assessment &
Go to Market
Service Offerings

5. Legacy organizations are being disrupted and are failing to keep pace
with the hyper-volatile business landscape
5
The competitive landscape for organisations has become more dynamic. 465 companies moved out of the Forbes list from
2011 to 2013 and were replaced by a set of new entrants. This is expected to increase to 550 by 2015
465
Companies moved out of Forbes
2000 list between 2009 and 2013
465
550
Companies are expected to move out
of Forbes 2000 list between 2013 and
2015
2000 1535 985
FY 2011 FY 2013 FY 2015
Forbes 2000

6. 6
Top performers of the past have failed to maintain their growth
trajectory
141.47
There was a drop of
5.2% in the aggregate
sales for the Forbes top
10 companies from 2009
to 2014
USD Bn
12.56USD Bn
2/10
Revenues plummeted
over 6% for these
companies from 2009 to
2014
Only 2 out of the top 10
Forbes companies in
2009 still remain in the
2014 top 10 Forbes list
Top 10 (2009)
Decrease in Sales Decrease in Profits Retained in Top 10

7. 7
They are facing existential
threat because of the
dynamically evolving market
landscape. There are three
key propellers that are
driving this disruption
Globalized Markets
Digital at Heart of Business
Hyper Agile Competitors

8. Traditional Enterprises are facing competition from a new breed of
companies which are agile by DNA
8
Emerging Markets
Competition
1 Startups2 Tech Mafias3
Adopted a multi-market growth strategy
coupled with strategic acquisitions of
IBM Peripheral divisions (‘05), Motorola
Mobility (‘14) and IBM x86 server
business (‘14)
Global leader in
PC Sales
Global PC
Market Share
16.7%
500M users
Effectively moved SMS from telecom
networks to the Internet making it
transport agnostic and disrupting the
age old telecom industry
Technology diversified
company
8%
(2009) (2014)
Loss in SMS Revenues of global
telecom service providers
USD7.5BN
Market Capitalisation share
USD1.5TNUSD6.1TN
(2013) G100 companies Tech Mafias
Search, Google+, Android, Google Glass,
self-driving cars – Google is evolving in
almost every direction at once and
disrupting newer verticals

9. Every industry is facing digital disruption and organisations are in a
race to be the digital leaders
9
Using User Data for Product innovation
The Digital Age
A third of world’s population
will be on social media by 2017
Cloud & Analytics Social Media
Cloud applications will account for 90%
of total mobile data traffic by 2018
2 billion smart-phones by end
of 2015
Mobility
Companies are adopting digital at the core
of organization
• Harnessed data analytics to bring them back to
the forefront of the industry in 2009 after
reporting a loss of USD 12.6 B in 2006
• Leverages its data analytics lab in Silicon Valley to
help with real-time analysis for the driver, future
vehicle designs among others
Using User Data for Channel optimization
• Engages with its customers and captures the real-
time data generated for providing information
and alerts
Predictive Success Gauging
• Ran social media analytics to assess the buzz
generated by the movie (Pitch Perfect) pre-release
• Data mining from Twitter helped them change
their pre-release strategy for the movie

10. 10
USD 30 TNUSD12 TN
USD 26 TN
USD 34 TN
World Consumption( in USD Trillions)
Developed Markets
Emerging Markets
FY2013 FY 2025 ( E)
Rank Country 2008-2012 Internet User Adds (Mns) Y/Y Growth
1 China 264 10
2 India 88 26
3 Indonesia 39 56
4 Iran 35 205
5 Russia 33 6
6 Nigeria 31 15
7 Philippines 28 32
8 Brazil 27 6
9 Mexico 19 9
10 USA 18 3
World 902 8
The majority of
the new
internet users
between 2008-
2012 was
added in India
and China
2000 2002 2004 2006 2008 2010 2012 2014 2016 2018 2020
Rest of
World
EU
United
States
Eastward moving centre of world economy is putting further pressure
on these organizations
Global Middle
Class
Consumption,
is expected to
majorly
increase from
emerging
economies
2000-2020

11. “Organizations of Yesterday” have failed to respond to these
challenges and hence are struggling to survive
11
Organisations
of Yesterday
Hierarchical Decision Making
Solitary/Siloed organizations
Lateral focus on the international
markets
Technology dictated product roadmaps
Accelerated growth in focussed verticals
Digital as a choice
Accelerated growth in focussed verticals
Technology dictated product roadmaps
Digital as a choice
Lateral focus on the international
markets

12. 12
Organisations
of Tomorrow
Agile decision making
Hyper- Collaborative
Lateral focus on the international
markets
Technology dictated product roadmaps
Accelerated growth in focussed verticals
Digital as a choice
Disruptive growth by entering new
verticals
User experience dictated product
roadmaps
Digital as a Priority
Core focus on international markets
To counter these challenges, there is a need for the organizations to
revise their strategic vision and build “Organizations of Tomorrow”

13. 13
“It is not the strongest or the most intelligent who will
survive but those who can best manage change.”
- Charles Darwin, Origin of the Species

14. “Organizations of
Tomorrow” should be
built on three
foundational pillars –
Digital, Agile and Global
which shall be enabled
through 5 key levers
14
Three Foundational Pillars
5 Key Levers
Agile
“Organizations Of Tomorrow”
Global
Markets Talent
Innovation
Digital
Customer
Engagement
Operational
Excellence
Supply Chain
Optimization
Digital Products
and Services
1 2 3 4 5
Operations Hierarchy
Workforce
Product
Dev.

15. 15
Encode Digital in DNA
Increased investment in future technologies
Optimize costs in legacy products and redirect
savings new products
Go Local for Global Markets
5 Key Levers
5 Key Levers
Explore outwards for rich talent
5 Key Levers to unlock “Organizations of Tomorrow”

16. Demand
Supply
The scarcity and the competition for talent is bound to increase for the
G500 companies
16
302421
336000
Digitally
Native
G500
Spenders
D500
Organizations
Digitally
Native
G500
Spenders
D500
Organizations
2013 2018
STEM talent
Demand and
Supply
forecast
STEM talent
absorption
Pyramid
33579
Deficit
412401
368071
44330
SurplusDemand
Supply
The talent supply in the US will be
inadequate and expensive to
meet the future demand for
emerging skillsets.
The scarcity of STEM talent is
expected to become acute by
2018.
There will be a forecasted
shortage of ~44000 STEM
graduates
Going forward, the G500
spenders will face higher talent
competition from the digitally
native and the D500
organizations.
The availability of STEM talent for
G500 companies will be further
restricted

17. Organizations need to explore newer talent hotbeds to satiate their
talent needs
17
178 234
India
394 535
China137 218
Mexico
14 18
Finland
75 111
Spain
56 80
Australia
112 140
Poland
22 36
Czech
Annual STEM Graduates( in Thousands)
2013 2018
196 201
Russia

18. Case Study – Google’s globalization strategy is focused on operational
optimization and leveraging local talent to drive global innovations
18
HQ , 67% Global Locations,…
R&D Spend Share
 Consolidates R&D leadership in the US to allow for quicker decision-making
 Creates Global CoEs based on Talent availability and access to local markets
 Optimizes the cost of product support operations by delivering support from locations
with abundant low cost talent
 Acquires start-ups for deep technology expertise and creates global technology CoEs
BAY AREA
NEW
YORK
KIRKLAND
ZURICH
BANGALO
RE
SHANGHAI
AND
BEIJING
LONDON
PARIS
TEL AVIV
AND
HAIFA
e.
LOS
ANGELES
BOULDER
Headquarters / Engineering Hub
Satellite
Outpost
Google’s follows a model of semi-autonomous engineering
hubs to leverage global engineering talent
Map Maker
Search Products
Hangouts for Google +
Google Talk
Video optimization technologies for YouTube
Live Results
Google Suggest
In-Page Analytics
Birthplace of Maps

19. 19
Encode Digital in DNA
Increased investment in future technologies
Optimize costs in legacy products and redirect
savings new products
Go Local for Global Markets
5 Key Levers
5 Key Levers
Explore outwards for rich talent
5 Key Levers to unlock “Organizations of Tomorrow”

20. Innovation Leaders are looking ahead of disruption curve by making
bolder bets on future technologies
20
Market leaders are increasingly focussing on horizon 3 innovations which are keeping them abreast with the technology
curve and ahead of the competition. Even traditional industry players such as automotive, Industrial products, medical
devices are investing in technologies of tomorrow which may become core to their operations in the future
Mobile Auto Home
Automation
Broadband
Horizon 1
Horizon 2
Horizon 3
Process
Improvements,
upgrades, variants and
cost reduction
Google has grown and penetrated newer
verticals by investing i`n the upcoming
technology areas much ahead of
everyone
Consumer
Devices
Building
Automatio
n
Cloud
Services
Virtual
Reality
Big Data &
Analytics
Haptic
Touch
Ford is focussing on research in areas of
Virtual Reality, Haptic touch etc. to
incorporate these technologies in its future
programs
New Products
serving existing or
adjacent markets
Breakthrough Innovations,
New Technologies, New
Industries
Amazon through its “Lab 126” has
focussed on coming up with innovations
in its non core fields

21. 21
Intrapreneurship
Hyper Collaboration
Global Startup Connect
Achieving Horizon 3
Innovations
To catch up with the innovation leaders, organizations need to build an
entrepreneurial culture as well as partner externally
• Connect with startups across all your
markets
• Create accelerator/incubation programs
to identify future disruptors early
• Engage early and engage often
• Focus on synergies while making
acquisitions
• Partner with external organizations for
joint products
• Partner with academia, start ups and
local R&D ecosystem
• Explore Crowdsourcing for innovative
solutions
• Build an innovation culture
• Build a structured intrapreneurship program
• Reward intraprenuers
• Be bold in taking ideas to market
GE Flight Quest
GE, used Kaggle, an analytics
crowdsourcing platform, to build
flight path optimization solution
Post It Notes was result of the
3M’s“Bootlegging Intrapreneurship
Program” which allows the employee
intrapreneur to spend up to 15 percent of
their time at work developing their own
creative ideas
Microsoft runs Microsoft accelerators in 7
global locations and has built
partnerships with 200 startup-focused
organizations around the world

22. 22
Encode Digital in DNA
Increased investment in future technologies
Optimize costs in legacy products and redirect
savings new products
Build Products for Global Markets
5 Key Levers
5 Key Levers
Explore outwards for rich talent
5 Key Levers to unlock “Organizations of Tomorrow”

23. Companies across industries are racing to migrate from "analog“
organizations to “digital” organizations
23
Customer
Targeting &
Engagement
Workforce &
Partner
Enablement
Operational
Excellence
Data Driven
Product
Engineering
Assisting enterprises increase customer base,
engagement, loyalty and advocacy through
targeted promotions and marketing, personalized
in-store and online experience
Digital
Transformation
Enhancing existing
products/services or creating
new products/services through
digitization
Helping organizations in not
only real-time fraud & theft
detection but also
prevention
Building new products based on customer usage
patterns and product performance measurement
Digital
Products &
Services
Risk
Management
Enhancing workforce & partner
productivity through ecosystem
integration and collaboration
Enabling enterprises optimize their business
processes real-time within the organization (incl.
support functions, supply chains etc.)
Digital Leaders are enhancing their digital maturity through focus on 6 key digitization areas spread across various business
functions including product development, Operations and Marketing

24. 24
Traditional Enterprises need to adopt an incremental and iterative
approach in helping enterprises in their digital journey
• Benchmark industry best practices
• Determine key enabling technology
• Understand internal and external data
sources
• Strategies, initiatives and activities of
digitally native enterprises & start-ups
STEP 1
• Evaluate current state & desired state of
business initiatives and prioritize them in
terms of:
• Business Impact: Benefits and Risk
• Ease of Implementation: People,
Structure & Technology
STEP 2
• Determine a step-by-step map for digital
transformation with respect to:
• People (Skills, Talent Acquisition &
New Roles)
• Processes (Change Management)
• Infrastructure
• Part by part implementation of digital
solutions incrementally and iteratively
along with the required IT infrastructure
for those solutions
STEP 4
Think Vision:
Build to a
Roadmap
Digital Priority :
Assess business &
digital priorities
Organize Digital
Team and
leverage
Disruptive
Technology
Incremental &
Iterative
Development
1 2
34
STEP 3

25. Partnered with technology vendor Analytic Partners to track how Acuvue Lens campaigns performed across
all media by using dashboards that include features like digital sales odometers, ad-spend waterfall charts
& predictive revenue forecasts
Offers a mobile program to
expectant mothers in emerging
countries that gives them
information about pregnancy
Created awareness on AIDS by creating a
campaign whereby every time someone shared,
tweeted or pinned a particular infographic, J&J
would donate $1 to the Global Fund to fight AIDS,
up to $100,000
Channel Optimization Analytics
Customer Engagement Real-Time Data Monitoring & Customer Engagement
Challenge: Reinforce the brand image and value proposition of Acuvue Moist, which
gives the user “All Day Comfort” due to rich moisture content
Solution: Interactive “Personalized Hydration Expert” mobile app that tracks moisture
balance of the user
Real-Time Data Monitoring & Customer Engagement
Case Study: Johnson & Johnson has leveraged digitisation to create
high business value

26. 26
Encode Digital in DNA
Increased investment in future technologies
Optimize costs in legacy products and redirect
savings to new product innovations
Go Local for Global Markets
5 Key Levers
5 Key Levers
Explore outwards for rich talent
5 Key Levers to unlock “Organizations of Tomorrow”

27. Frequent
technological
disruptions
Dynamic Customer
Expectations
Accelerated Product
development
Lifecycles
New and Nimble
competition
Due the dynamically changing market landscape, organizations are
being forced to innovate faster and focus on newer products for
growth
27
>30%
Revenue from New
products for Industry
Leaders across ISV,
automotive, semiconductor
and Consumer Electronics
Verticals
Organizations are building
products faster and more often
. The focus is on increasing
revenues through newer
products and innovations
rather than growth of legacy
product market share
Drivers
New Products
were launched in
2013
300,000+
Increasing Focus on new
products

28. organization need to optimize R&D cost by engaging with external
partners
28
StrategicImportance
Product Complexity
Organizations need to analyse their product portfolios
based on 3 key parameter to identify the outsourcing
readiness for each product
External R&D
Partners
Offshore Service
Providers
Onshore Service
Providers
Global R&D
Centres
Academia

29. 29
Encode Digital in DNA
Increased investment in future technologies
Optimize costs in legacy products and redirect
savings new products
Go Local for Global Markets
5 Key Levers
5 Key Levers
Explore outwards for rich talent
5 Key Levers to unlock “Organizations of Tomorrow”

30. Organizations are witnessing growth driven, primarily, from the
emerging markets
30
30
2005 2007 2009 2011 2013 2015 2017 2019
S&P 500 Cos. Revenue growth by markets
Home Emerging
Primary
growth
markets
Sluggish
Growth
Changing Growth
Paradigm
• The growth in home markets for US
companies has been nearly static. On
the other hand, the growth in
emerging markets has been steadily
increasing.
• Emerging markets are expected to
drive growth in the near and the far
future because of an increasing
consumption class size
• A globally diverse consumer market
is being created as middle class
consumption in India and China is
poised to overtake US.
• Asia will become a key market for
enterprise software as 1/3rd of all
large companies will be based there.

31. To succeed in global markets, organization need to think local, and
plan strategies and products locally for each market
31
1
Localise->
Adapt ->
Relocalise
2
Long term
Commitment
3
Build Local
channel
partnerships
4
Embrace
local and
newer
business
models
5
Empower
local
leadership
Winning strategies for
Global markets

32. has set up local R&D centres to meet the local as well as global
demands
32
USA
53%
Europe,
middle east,
& Africa
27%
Asia Pacific
14%
Latin
America,
Mexico, &
Cannada
6%
Information Infrastructure
RSA Security
Ownership of Local and APAC products
Develop Platform and Layered Applications
Quality Assurance
Support
Oil and gas industry innovation hub worldwide.
It has 80 researchers, an Applied Research Center, Solution Development
Laboratories
EMC Israel Center of Excellence joins design partners (such as startups,
mature companies in Israel and globally, and the IDF) to discover ‘the
next best thing’ in IT
• EMC has ~47% revenues from foreign markets
• ~45% of the R&D investment is directed towards foreign R&D centers
• Each R&D center has either focus on local markets or is the CoE for certain
technology areas
• R&D centers are located in India, China, Russia, Brazil & Israel outside USA
EMC Revenue Split by Geography
Cloud & Big Data
Information infrastructures
Virtual infrastructures
Region No Of R&D Centers
Percentage
contribution
USA 11 50-55%
EMEA 10 10-15%
APAC 10 20-25%
Rest of
Americas
1 2-5%

33. Texas
21, Waterway Ave
Suite 300
The Woodlands
TX-77380 USA
Phone:+1-281-362-2773
Gurgaon Office:
First Floor,
Plot no. 131, Sector 44,
Gurgaon-122002,
Phone: +91 124 4420100
Singapore
Level 42, Suntec Tower Three
8 Temasek Boulevard
Singapore 038988
Phone:+65 6829 2123
California Office
3080 Olcott Street
Suite A125,
Santa Clara, CA 95054
Phone: +408-716-8432
Bangalore
69 "Prathiba Complex",
4th 'A' Cross,
Koramangala 5th Block,
Bangalore-560 095.
Phone: +91-80-41127925/6
Beijing
Meilifang Tower 4, Entrance 4,
10/F #1003,
11 Beiyuan Shuangying Road,
Chaoyang District, Beijing
China 100012
Thank You
33