Successfully reported this slideshow.
We use your LinkedIn profile and activity data to personalize ads and to show you more relevant ads. You can change your ad preferences anytime.
Loading in …3
×
1 of 15

Large Enterprises : Transforming India's Digital Future

4

Share

Download to read offline

Large Enterprises will contribute significantly to India's Digital Future. Transport and Hospitality leads among all verticals in terms of profit and revenue contribution.

To know more about where your organization stands and the steps it must take to be digital ready, write to us at info@zinnov.com

Related Books

Free with a 30 day trial from Scribd

See all

Related Audiobooks

Free with a 30 day trial from Scribd

See all

Large Enterprises : Transforming India's Digital Future

  1. 1. Large Enterprises : Transforming India's Digital Future 1
  2. 2. Large Enterprises contribute significantly to the business ecosystem in India 2 Note: All figures and data pertains to FY17 | 1denotes enterprises operating in India with HQ in India / outside India, and having a headcount of 1,000+ employees. The list includes private, PSUs/Government undertakings | 2Large Enterprises listed on Bombay Stock Exchange (BSE)/National Stock Exchange (NSE) | 3Talent pool includes total number of employees working full-time/part-time/casual with an enterprise | (USD 1 = INR 65 approx.) Source: VCSData, Zinnov Analysis of 1100+ Public Listed Indian Enterprises by Revenues in FY13-17 Snapshot of Large Enterprises in India Large Enterprises1 in India Public Listed Large Enterprises2 in India 3.2-3.4k 1.1-1.3k ~40%USD 1.75Tn Market Capitalization (BSE) Total revenues generated compared to India’s GDP ~6Mn Total Talent pool3 employed Contribution of Public Listed Large Enterprises
  3. 3. Consistent performance has led to a growth in Billion Dollar Enterprises over the years Source: Zinnov Analysis of top 1100+ Public Listed Indian Enterprises by Revenues in FY13-17 3 Regional Distribution of Public-listed Large Enterprise by Headquarters Note: Manufacturing includes Automotive, Industrial products, Chemicals, Metals, Electricals and Electronics, Textiles etc. | Others includes Media & Entertainment (2.4%), Telecom (1.5%), Mining & Trading (1.1%) and Education & Publishing (0.8%) | (USD 1 = INR 65 approx.) Region LE HQ Revenue contribution in FY17 Key Verticals West 46% 51% North 24% 29% South 22% 15% East 8% 5% 40.1% 13.0% 11.0% 8.5% 6.9% 6.3% 4.9% 3.5% 5.8% Manufacturing Real Estate & Construction Retail / CPG BFSI Healthcare Energy & Utilities IT/ITeS Transport & Hospitality Others Vertical-wise Distribution of Public-listed Large Enterprises 5% Revenue Growth 2.5% Profit Growth 114 119 129 128 141 FY13 FY14 FY15 FY16 FY17 # of Billion Dollar Public-listed Enterprises (by Revenue)Performance of Public-listed Large Enterprises during FY’13-17
  4. 4. 141 ‘Billion Dollar’ firms reflect the overall state of Large Enterprises Source: Zinnov Analysis of 141 Billion Dollar Public-Listed Indian Enterprises 4 Major Ownership 67% Private sector 33% Government sector 10 Industry vertical spread 9 Conglomerates 75% of Total Revenues of Large Enterprises* 65% of total talent pool in Large Enterprises* 60% of total Market Capitalization of Large Enterprises* Note: *denotes the Public-listed Large Enterprises
  5. 5. 2 2 2 6 5 9 12 8 27 33 2 2 1 2 3 7 6 1 1 2 2 1 2 1 1 1 USD 1 to 5Bn USD 5 to 10Bn USD 10 to 25Bn USD 25 to 50Bn USD 50+Bn Billion Dollar Enterprises in Mfg, BFSI and Energy & Utilities are the largest contributors to revenue and talent pool Source: Zinnov Analysis of 141 Billion Dollar Public-Listed Indian Enterprises for FY’17 5 41 37 16 14 10 6 6 5 4 2 Revenue-wise Split ~Talent pool (Mn) 0.62 0.10 1.17 0.11 0.31 0.17 0.36 0.97 0.05 0.03 # Manufacturing BFSI Energy & Utilities Retail / CPG Real Estate & Construction Mining & Trading Healthcare IT/ITeS Telecom Transport & Hospitality Verticals ~Revenue (USD Bn) 161.0 9.3 172.8 25.8 37.2 201.0 15.8 38.5 17.4 6.4 Note: Talent pool includes total number of employees working full-time/part- time/casual with an enterprise 106 23 7 4 1
  6. 6. However, Transport & Hospitality followed by IT/ITeS, Healthcare and Retail, lead in the growth metrics Source: Zinnov Analysis of 141 Billion Dollar Public-Listed Indian Enterprises 6 Average Revenue / Enterprise (Bubble size) Industry-wise Productivity (Bubble color) Low HighMedium Real Estate & Construction Telecom BFSI Retail / CPG Healthcare IT/ITeS Mining & Trading Energy & Utilities Manufacturing Transport & Hospitality 0 Revenue Growth during FY’13-17 (%) Profit Growth during FY’13- 17 (%) (+) (-) (+) Sluggish Strivers Nimble Note: Revenue and Profit Growth pertains to the period FY’13-17 | Productivity is calculated as Industry revenues divided by total talent pool employed within industry Low High Medium
  7. 7. A triple play of opportunities exists for the Large Enterprises to capitalize upon Source: News reports, TradingEconomics, Ministry of Commerce, GoI, Nielsen Consumer Confidence Index 2017, #BCG’s Centre for Customer Insight report 2017 7 Note: *Nielsen Consumer Confidence Index measures the perceptions of local job prospects, personal finances, immediate spending intentions and related economic issues of online consumers around the world (Beneficiary verticals) Government Policies Consumer Growth International Expansion (Telecom, IT/ITeS) (Manufacturing) (Transport & Hospitality, Real Estate & Construction) Other Initiatives (illustrative) • UDAN scheme for regional connectivity (Transport & Hospitality) • Banking reforms (BFSI) • Price-capping of essential drugs (Healthcare) 12% y-o-y growth in consumer expenditure, India to be 3rd largest consumer market by 2025 # India ranks 1st globally in Consumer Confidence Index* 2nd largest population in the world with over 60% of them in working age bracket (Real Estate & Construction, Telecom, Manufacturing) Favourable Trade Conditions • India has signed Free Trade Agreements (FTA) and Bilateral Investment Treaties (BIT) allowing trade and investment with 70+ nations Rising Export Hub • India’s exports in FY17 doubled to ~$275Bn within the last decade • Key exports: Petroleum products, engineering goods, pharmaceutical products, gems & jewellery • International business contributes 65% to Gitanjali’s and 70% to Sun Pharma’s revenues • Jaguar Land Rover contributes prominently to Tata Motor’s profits • ONGC acquired 15% stake in Russian oil field Vankor for $1Bn (2016) to secure energy interests of the nation Growth, Profitability & Diversification
  8. 8. However, Competition poses a distinct challenge in Indian scenario compared to developed economies 8 Source: News reports, Technology blogs, Zinnov Analysis Lack of Skilled Workforce Managing Omnichannel presence Rising input costs Customer acquisition Legislative & environmental barriers Operational Challenges Retail/CPG Telecom, Media & Entertainment Transport & Hospitality BFSI IT/ITeS SaaS enterprise offerings Tackling Disruptions E-commerce disruption OTT applications e-wallets & digital banks Alternate to conventional means • From fast-growing domestic enteprises • From leading MNC enterprises Competition Intrinsic Hurdles • Regulations - e.g. Dodd Frank Act of 2010, Repealing of Obamacare • Stagnating Consumption – Flat / Declining growth of population affecting conventional consumption • Dormant Innovation – Declining new product portfolios/patents • Geo-political Uncertainty- Affects long-term decision making India USA
  9. 9. Enterprises tackling challenges Infrastructure Upgradation New Business Models Technology Adoption People Operational Efficiencies To overcome the challenges, Large Enterprises are taking a five pronged approach.. 9 1 2 3 4 5 Hiring Key Talent with Niche Capabilities Streamlining Business Processes, Improving Communication and Collaboration Moving from Legacy to Modern Infrastructure Driving Innovation in Business through Technology Diversifying Business Operations to Generate Additional Revenues
  10. 10. ..to get transformed as a modern digital enterprise 10 NEW AGE ENTERPRISE DIGITAL BUSINESS MODELS DIGITAL BUSINESS OUTCOMES Personized Experience New Revenue Streams Business Efficiency Empowered Workforce Business Security & Customer Privacy Internet of Things Artificial Intelligence Robotic Automation Blockchain AR/VR Near Zero Interfaces 3D Printing DIGITAL TECHNOLOGY FOUNDATION MODERN INFRASTRUCTURE Cloud Centric Infrastructure Data Lakes Security Infrastructure (MDM, End Point Encryption) High Performance Compute Architecture Software Defined Infrastructures Software Led Platformization Data Ecosystem Co-Innovation With Customer DIGITAL WORKLOADS & RELEVANT STAKEHOLDERS Customer Experience Operational Excellence Workforce Engagement Risk Management & Security New Digital Products and Services CMO | CDO | CAIO CInO | CTO | CDO | CAIO COO | CIO | BU | CDO COO | CHRO | BU CRO | CIO
  11. 11. 141 Billion Dollar Large Enterprises will spend over USD 360 Mn by 2020 towards Enterprise Digital Transformation (EDT) 11 FY17 FY20 (E) Rest of IT Digital Tech Enablement Enterprise Digital Transformation ➢ Enterprise digital transformation spending forms ~11% of the overall digital spends currently, rest being constituted by investments towards digital enablement ➢ BFSI, IT/ITeS, Manufacturing and Retail/CPG, Energy & Utilities verticals in India will constitute nearly 90%of the overall spends for EDT by 2020 Source: Zinnov Analysis of 141 Billion Dollar Public-Listed Indian Enterprises Enterprise Digital Transformation Spending Enterprise Digital Transformation Spending Indian Billion Dollar Enterprise Digital Transformation Spending (USD Bn) and Growth (CAGR %) 9.6 10.2 0.95 1.440.12 0.36 Note: ‘Enterprise Digital Transformation’ - finding newer possibilities to maximize the customer experiences and operational efficiencies. It includes UI/UX Designing, Predictive Analytics, Connected systems, AI, RPA, IoT etc. | ‘Digital Tech Enablement’ - overhauling of the existing IT infrastructure to enable digital use cases and execute data driven business processes. It includes Service Oriented Architecture, Big data Infrastructure, Analytics platforms, APIs, Data Lakes etc. | ‘Rest of IT’ - creating infrastructure to manage, provide access to information and run business applications. It includes Operating systems, Hardware & Software support, Business Process Outsourcing (BPO), Cloud infrastructure, Social media applications, BI and analytics applications, Sensors and Beacons, Identity Management etc.
  12. 12. Allahabad Bank Andhra Bank Axis Bank Bajaj Finance Bank of Baroda Bank of India Bank of Maharashtra Canara Bank Central Bank of IndiaCorporation Bank Dena Bank DHFL Federal Bank HDFC Bank HDFC LIMITED ICICI Bank IDBI Bank IDFC Bank Indiabulls Housing Finance Indian Bank Indian Overseas Bank IndusInd Bank J&K Bank Kotak Mahindra Bank LIC Housing Oriental Bank of Commerce Punjab & Sind Bank Punjab National Bank Shriram Transport Finance South Indian Bank SBI Syndicate Bank UCO Bank Union Bank of India United Bank of India Vijaya Bank Yes Bank Adani Power BPCL CESC Chennai Petroleum GAIL HPCL IOCL Mangalore Refinery NHPC NTPC ONGC Oil India Powergrid Corp Suzlon Energy Tata Power Torrent Power Aurobindo Pharma Cipla Dr. Reddy's Glenmark Pharma Lupin Sun Pharma HCL Infosys TCS Tech Mahindra Wipro ABB India Limited Alok Industries Apollo Tyres Ashok Leyland Asian Paints Bajaj Auto BEL BHEL Bhushan Steel Bosch Century Textiles Chambal Fertilizers Coromandel Intl. Eicher Motors Exide Industries Grasim Industries Havells India Hero Motocorp Hindalco Hindustan Zinc Jindal Stainless (Hisar) Jindal Stainless Jindal Steel & Power JK Tyres JSW Steel L&T M&M Maruti Suzuki Motherson Sumi MRF NALCO National Fertilizers Ltd. NLC India Rashtriya Chemicals Reliance Industries Shree Renuka Sugars Siemens Ltd. SAIL Tata Chemicals Tata Motors Tata Steel TVS Motors UPL Ltd. Videocon Industries Adani Enterprises Coal India MMTC NMDC Vedanta Ltd. ACC Ltd. Ambuja Cements Gammon India Jaiprakash Assoc. KEC Intl. NCC Ltd. Reliance Infrastructure Shree Cements Ultratech Cement Aditya Birla FashionBritannia Industries Future Retail Gitanjali Gems HUL ITC Nestle India PC Jewellers Redington India Ruchi Soya Industries Titan United Breweries United Spirits Bharti Airtel Bharti Infratel Idea Cellular Reliance Commn Interglobe Aviation Jet Airways Nearly 20% of the Billion Dollar Enterprises are the Early Adopters and are well underway in their digital transformation journey Source: Zinnov Analysis of 141 Billion Dollar Public-Listed Indian Enterprises 12 Capability (Advanced Technology*, Digital Talent, Digital Partnership, M&A and Investments) Scalability(RevenueGrowth,ProfitGrowthandProductivity) Early Adopters Beginners Followers Verticals BFSI Healthcare Manufacturing Real Estate & Construction Telecom Energy & Utilities IT/ITeS Mining & Trading Retail/CPG Transport & Hospitality *Advanced Technologies include Artificial Intelligence, Internet of Things and Robotic Process Automation
  13. 13. Around 40% of Billion Dollar Enterprises have invested in AI, Automation and IoT currently 13 50% 46% 40% 22% 17% Advanced Technologies Adoption by Industry Verticals Source: Zinnov Analysis of 141 Billion Dollar Public-Listed Indian Enterprises 19% AI Automation IoT Transport & Hospitality Energy & Utilities Real Estate & Construction IT/ITeS Telecom BFSI Retail/CPG Manufacturing Mining & Trading Healthcare Advanced Technologies Focus of Large Enterprises
  14. 14. Global technology firms are facilitating the enterprises in their transformation journey Global Technology Players (Illustrative) Digital Solutions Investments in Startups Key Digital Talent Hired CoE on Advanced Tech Focus on ISV partnerships Partnership with Service Provider Co-innovation with Customers Amazon Web Services Cisco Google HP IBM Microsoft Oracle SAP iBoT platform with Azure IoT services helped United Spirits keep a track of its Visicoolers and enhance customer experience Launched ‘Pointnext’, its digital transformation services arm, to help customers in adoption of new technologies S/4 HANA was adopted by Hero Future Energy (part of Hero Group) for end-to- end business process integration and bringing in financial and operational efficiencies Setting up of Internet of Things (IoE) Innovation Centre in Visakhapatnam and Technology Center of Excellence and Research Lab at Tirupati Source: News reports, Technology blogs, Company press releases, Zinnov Analysis 14Low High
  15. 15. @Zinnov Thank You! Texas 21, Waterway Ave Suite 300 The Woodlands TX-77380 USA Phone:+1-281-362-2773 Bangalore 69 "Prathiba Complex", 4th 'A' Cross, Koramangala 5th Block, Bangalore-560 095. Phone: +91-80-41127925/6 Gurgaon Office: First Floor, Plot no. 131, Sector 44, Gurgaon-122002, Phone: +91 124 4420100 California Office 3080 Olcott Street Suite A125, Santa Clara, CA 95054 Phone: +408-716-8432 info@zinnov.com

×