Sum-IT-up

2015-16

IT & Consultancy Finals Guide

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Table of Contents
INTRODUCTION ................................................................................................................................ 4
IT INDUSTRY PROFILE ....................................................................................................................... 4
Key Statistics ................................................................................................................................. 4
Pre Sales ......................................................................................................................................... 12
Project Management ...................................................................................................................... 15
Planning ...................................................................................................................................... 15
Work Breakdown Structure (WBS) ............................................................................................. 16
Gantt Chart ................................................................................................................................. 16
Program Evaluation Review Technique ...................................................................................... 17
Benefits of PERT ......................................................................................................................... 17
Software Development Life Cycle .................................................................................................. 17
Waterfall Methodologies ........................................................................................................... 18
Agile Methodologies................................................................................................................... 18
Rapid Application Development................................................................................................. 19
Fundamentals of RAD ................................................................................................................. 19
V Model ...................................................................................................................................... 19
Enterprise Resource Planning (ERP) ............................................................................................... 20
Evolution of ERP ......................................................................................................................... 23
Modules of ERP .......................................................................................................................... 24
Benefits of ERP ........................................................................................................................... 24
Disadvantages of ERP ................................................................................................................. 25
Steps to Implement ERP ............................................................................................................. 26
ERP Market ................................................................................................................................. 26
Consultancy .................................................................................................................................... 27
Types of Consulting .................................................................................................................... 27
Job Description of a Management Consultant ........................................................................... 28
Major Consulting Firms .............................................................................................................. 29
Cloud Computing ............................................................................................................................ 29
Advantages ................................................................................................................................. 29
Service Models ........................................................................................................................... 29
Challenges .................................................................................................................................. 30
Deployment models ................................................................................................................... 30
Big Data .......................................................................................................................................... 31
Introduction ................................................................................................................................ 31
Why Big Data .............................................................................................................................. 32
Growing Data Volumes ............................................................................................................... 32

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 Growth in the investments on the technology .......................................................................... 33
Predictive Analytics on demand ................................................................................................. 35
Competitive Advantage .............................................................................................................. 35
Technologies Used...................................................................................................................... 36
Advances of the Technology ...................................................................................................... 38
Social Media Analytics .................................................................................................................... 39
Social Media Analytics Tools ...................................................................................................... 39
Information provided by these tools:......................................................................................... 39
Some of the Social Media Analytics Tools are:........................................................................... 39
Screenshots of a Social Media Analytics tool: ............................................................................ 40
Customer Relationship Management ............................................................................................ 41
CRM software ............................................................................................................................. 41
CRM packages typically include tools for: .................................................................................. 41
Types of CRM Software: ............................................................................................................. 42
Bibliography.................................................................................................................................... 43

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INTRODUCTION
Information Technology (IT) can be defined as the utilization of hardware, software, services
and infrastructure to create, store, exchange and leverage information in its various forms to
accomplish any number of business objectives. Additionally, the term encompasses the
workers that develop, implement, maintain and utilize information technology directly and
indirectly.

IT Hardware – computers, tablets, mobile phones, printers, servers, etc.

Software – productivity applications, network applications, security applications, etc.
IT Services – integration, maintenance, repair, application development, managed
services, etc.
IT Infrastructure – the Internet backbone, fiber optic networks, data centers, etc.
Information – data, documents, voice, video and images, etc.
Business Objectives – communication, collaboration, efficiency, insight, production,
e-commerce, etc.

IT INDUSTRY PROFILE

The growth of service sector in India is pioneered by the IT industry, contributing substantially
to Indian GDP. IT industry in India constitutes7.5% of GDP as per FY2012 statistics.

Key Statistics
Global IT industry –
Gartner projects worldwide IT industry growth of 4.2% for 2013; Forrester
forecasts 5.4% growth; and IDC 5.7%. Its size is expected to reach US$357 billion by
2015.
Indian IT industry – The IT–BPO sector in India aggregated revenues of US$100 billion
in FY2012 growing by over 9%
IT Hardware industry –US$40 Billion
Export Revenue- US$69.1 billion
Domestic Revenue - US$31.7 billion
The industry’s share of total Indian exports (merchandise plus services) increased from
less than 4 per cent in FY1998 to about 25 per cent in FY2012
The IT industry is a major employment generator - providing direct employment to
about 2.8 million, and indirectly employing 8.9 million people.

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Productivity & Competitiveness Trends of IT industry
Based on overall IT competitiveness index, US ranks number one. While India and China has
been ranked at 46th and 49th respectively in 2006. India fares better than China because of
its highly developed software industry but is far behind China’s hardware sector.

Services and products of the IT industry can be broadly classified in three major sectors:

 Hardware

 Its use and components

A personal computer is made up of multiple physical components of computer
hardware, upon which can be installed a system software called operating system
and a multitude of software applications to perform the operator's desired
functions. A typical personal computer consists of a case or chassis in a tower shape
(desktop), containing components such as a motherboard, RAM and others.

 Role of Electronics and Hardware Industry in India’s GDP

India has become one of the favored destinations pertaining to the electronics and
hardware. India Semiconductor Association (ISA) is the apex agency pertaining to the
semiconductor companies and chip design firms in India.
 Performance of Indian Electronics and Hardware Industry
Electronics and IT Hardware Industry is the largest and fastest growing manufacturing
industry in the world. The current recession notwithstanding, the Indian IT hardware
& Electronics Industry has grown at approximately 7% per annum.
Market researchers have forecast rapid growth of electronics hardware demand in
India, going up from the existing US$40 billion to US$155billion by 2015 growing at
20% annual growth rate. This would be 12% of the projected GDP in 2015 against the
present 2%.
A manufacturing output of US$ 155 billion would have the potential to create
employment of 21 million (7million direct + 14million indirect) and Revenue of
approximately US$ 56 Billion.

 Major Players
HCL Infosystems Ltd, Wipro Ltd., Zenith Computers, PCS Industries Ltd., Acer, TVS
Electronics, D-link Industries, Microtek Devices, Patni Computers (now iGATE Patni)
are some of the renowned Indian computer hardware and peripheral device
manufacturers in India. IBM, Hewlett Packard, Dell, Epson, Canon, Intel are
multinational corporations in computer hardware and peripherals operating in India.

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 Software

 Overview
The software industry includes businesses involved in the development, maintenance
and publication of computer software using any business model.
There are several types of businesses in the software industry:
 Infrastructure software, including operating systems, middleware and databases,
is made by companies such as Microsoft, IBM, Sybase, EMC, Oracle
 Enterprise software, the software that automates business processes in finance,
production, logistics, sales and marketing is made by Oracle, SAP AG.
 Security software is made by the likes of Symantec
The companies do contract programming to develop unique software for one
particular client company, or focus on configuring and customizing suites from large
vendors such as SAP or Oracle.

 Difference between Software Development & Software Service industry

The software development companies concentrate more on making products which are
sold to the clients. The products, however, are modified by the software services
companies according to the specific client requirements.
Some of the IT companies and their software products are:
 IBM – IBM Mainframes.
 Oracle 10g,11i database by Oracle Corporation
 Oracle EBS
 SAP R/3 ERP software by SAP AG
 Microsoft Office by Microsoft

The major products of some Indian companies are:

 Flexcube by i-Flex Solutions (now Oracle Financial Services Ltd.) – this product was
designed mainly for their client Citibank Corporation.
 Finnacle by Infosys Technologies.(Banking product)
 Banks & Quartz by TCS. (Banking product)
However, the bulk of the revenue for the Indian companies is drawn from the software
services.

 Software industry in India

India ranks fifth among the emerging markets based on revenues, according to the
PwC Global 100 Software Leaders report, a revenue-based Study on the world's top
100 software vendors.
Geodesic was ranked 14 on the list of software services revenue, followed by
OnMobile (21), Subex (26), Infosys (27), TCS (29), FT India (35) and Tally Solutions
(39).Among other Indian firms, Cranes Software was placed in the 44th position in

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 the list, followed by 3i Infotech (60), Newgen Software (62), Ramco Systems (64),
Persistent (65), KLG Systel (71), Polaris Software (72), Educomp Solutions (85) and
Teledata Technology (89).

A number of software product firms have grown over the last decade from a little
over 100 in the year 2000 to nearly 2,400 in 2013. According to NASSCOM, the
revenue from the software product segment currently stands at $2.2 billion and is
expected to reach $10 billion by 2020.

With emerging technologies such as Social media, Mobility, Analytics and Cloud
(SMAC) driving the growth some key forces causing structural changes in the industry
are:
 Software-as-a-Service is gaining traction
 Customer is king
 Emerging hybrid models bring new challenges
 Priority on pricing

 Services:

 Overview
The leading IT companies in India are into development and maintenance of businesses
which includes domains like banking and finance, insurance, media, etc. Increased
acceptance from mature segments such as BFSI, US, and large corporations, and emerging
segments such as retail, healthcare, utilities, SMBs is driving the growth.
According to Gartner research, top five India-based IT services providers grew 23.8 per
cent last year compared to 7.7 per cent growth logged by the overall global IT services
market.
IT services is the fastest growing segment in the Indian domestic market as well, growing
by 18 per cent to reach Rs 589 billion, driven by increasing focus by service providers.

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  Major Players
Top 5 - TATA Consultancy Services, Cognizant Technology Solutions, Infosys, HCL, and
Wiprotogether grew 13.3 per cent, accounting for revenues of $34.3 billion in FY2012.

 ITES INDUSTRY

What is ITES industry?

ITES, Information Technology Enabled Service, is defined as outsourcing of processes that
can be enabled with information technology and covers diverse areas like finance, HR,
administration, health care, telecommunication, manufacturing etc. Armed with
technology and manpower, these services are provided from e-enabled locations. This
radically reduces costs and improves service standards. In short, this Internet service
provider aims in providing Business to business (B2B) e-commerce solutions.

 Overview
The growth of IT enabled Services (ITES) has opened windows for job opportunities,
service offerings and foreign investments in India. India is well positioned to derive
benefits from the ITES market and become a key hub for these services.

 BPO
Business process outsourcing (BPO) is a subset of outsourcing that involves the
contracting of the operations and responsibilities of specific business functions (or
processes) to a third-party service provider. It is primarily used to refer to the
outsourcing of services.
BPO is typically categorized into back office outsourcing - which includes internal
business functions such as human resources or finance and accounting, and front
office outsourcing - which includes customer-related services such as contact center
services.
BPO that is contracted outside a company's country is called offshore outsourcing.
BPO that is contracted to a company's neighboring (or nearby) country is called near-
shore outsourcing.

 KPO
Knowledge process outsourcing (KPO) is a form of outsourcing, in which knowledge-
related and information-related work is carried out by workers in a different company
or by a subsidiary of the same organization, which may be in the same country or in
an offshore location to save cost. Unlike the outsourcing of manufacturing, this
typically involves high-value work carried out by highly skilled staff. KPO firms, in
addition to providing expertise in the processes themselves, often make many low

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 level business decisions—typically those that are easily undone if they conflict with
higher-level business plans.
Types of KPO services:
o Investment research services (equity, fixed income and credit, and quantitative
research)
o Business research services
o Market research services
o Valuation and Fairness Opinions
o Legal research services (also known as Legal Process Outsourcing)

 LPO
Legal Process Outsourcing (also known as LPO) refers to the practice of a law firm or
corporation obtaining legal support services from an outside law firm or legal support
services company. When the outsourced entity is based in another country the
practice is sometimes called Offshoring.
LPO providers have established themselves in India, the Philippines, the US, Israel and
Latin America. They traditionally offer services in the areas of document review, legal
research and writing, drafting of pleadings and briefs, and patent services outsourcing.
There were over 5,200 professionals in the LPO industry, as on April 2010, in India and
the Philippines, contributing an annual revenue of USD 300 million, and this is
expected to reach 18,000 professionals with an annual revenue of USD 960 million by
December 2015.

Criticisms:
One of the major concerns with legal outsourcing is the potential for breach of client’s
confidentiality. Secondly, another concern is that the people performing legal work
may not be bound to the necessary ethical standards

 Major work in ITES business

 Back office operations
 Call Centers
 Content Development / Animation
 Data Processing
 Engineering and Design
 Geographic Information System Services
 Human Resource Services
 Insurance Claim Processing
 Legal Databases
 Medical Transcription
 Payroll
 Remote Maintenance

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  Revenue Accounting
 Support Centers
 Web site services

 Government Policies and Regulations

Government of India has taken a major step towards promoting the domestic industry
and achieving the full potential of the Indian IT entrepreneurs. Thus for example,
venture capital has been the main source of finance for software industry around the
world. However, majority of the software units in India is in the small and medium
enterprise sector and there is a critical shortage of venture capital kind of support. In
order to alleviate this situation and to promote Indian IT industry, the Government of
India has set up a National Task Force on IT and Software Development to examine
the feasibility of strengthening the industry. The Task Force has already submitted its
recommendations, which are under active consideration. Norms for the operations of
venture capital funds have also been liberalized to boost the industry. The
Government of India is also actively providing fiscal incentives and liberalizing norms
for FDI and raising capital abroad.

Recently, an IT committee was set up by the Ministry of Information Technology,

Government of India, comprising Non Resident Indian (NRI) professionals from the
United States to seek expertise and advice and also to step up U.S. investments in
India's IT sector. The committee is chaired by Minister of Information Technology,
Government of India, and the members include Secretary, Ministry of Information
Technology and a large number of important Indian American IT entrepreneurs.

The primary functions of the group are:

o Monitor global IT developments and refine Indian IT policy to meet global

requirements. Specifically, this will help angel investors, venture creators
and incubation;
o Promote the growth of human resource development in the IT sector with
the aim of creating quality-based education;
o Promote R&D in the sector by identifying thrust areas and drawing up a
blueprint for action.

India’s most prized resource in today’s knowledge economy is its readily available
technical work force. India has the second largest English-speaking scientific
professionals in the world, second only to the U.S. It is estimated that India has over
4 million technical workers, over 1,832 educational institutions and polytechnics,
which train more than 67,785 computer software professionals every year.

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 NASSCOM & its role

 About NASSCOM
NASSCOM is the premier trade body and the chamber of commerce of the IT-BPO
industries in India. NASSCOM is a global trade body with more than 1200 members,
which include both Indian and multinational companies that have a presence in India.
NASSCOM's member and associate member companies are broadly in the business of
software development, software services, software products, consulting services, BPO
services, e-commerce & web services, engineering services offshoring and animation
and gaming. NASSCOM’s membership base constitutes over 95% of the industry
revenues in India and employs over 2.24 million professionals.
It is a not-for-profit organization, registered under the Indian Societies Act, 1860.
Currently, NASSCOM is headquartered in New Delhi, India with regional offices in the
cities of Mumbai, Chennai, Hyderabad, Bangalore, Kolkata and Pune.

 Objectives
Following are their main objectives and services:
 Encourage members to provide world-class quality products, services and
solutions in India and overseas and help build brand equity for the Indian IT
software and services industry.
 Taking effective steps to campaign against software piracy.
 Provide an ideal forum for overseas and domestic companies to explore the vast
potential available for Joint Ventures, Strategic Alliances, Marketing Alliances,
Joint Product Development, etc., by organizing Business Meets with delegations
of various countries.
 Work actively with Overseas Governments, Embassies to make the Visa and Work
Permit Rules more "India Industry Friendly".
 Disseminate various policies, market information and other relevant statistics by
sending more than 200 circulars (annually) to all members.
 Involve membership participation in various forums of Nasscom on subjects such
as HRD, Technology, Exports, Domestic Market, E-Governance, IT Enabled
Services, IPR, Finance, Government Policies, Quality, etc.

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 Other Initiatives
o Domestic Market Initiative: It provides the platform to link the non IT sector with
the IT industry and to develop a vision for sustainable growth of the domestic IT
market.
o Education Initiative: Under this initiative, NASSCOM aims to enhance graduate
employability through appropriate skill enrichment and act as bridge between
industry, academia and government.
o Women in Leadership-IT Initiative: NASSCOM has launched the Women in
Leadership-IT Initiative to enhance participation of women into the workforce and
create more women leaders in the IT-BPO industry.
o Security Initiative: Aim towards creating an enabling environment in the country
for information security and compliance through awareness and conducive legal
framework.

Pre Sales

What is Pre Sales?

Pre Sales includes the entire gamut of activities involved in preparing to engage with
prospects, clients and others and includes specific responses to client requests. Clients or
companies that need software services and project implementations generally call for
proposals or expect responses from their vendors and service providers. Although it is hard
to generalize on the nature of or the contents of such proposals, most documents follow a
structured framework: detailing the project, asking vendors for suggestions or solutions or
proposals along with cost estimates regarding the work to be done.

In a typical sales cycle the stages are:

1. Contact

3. Prospect / 2. Lead /
Opportunity Suspect

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 The task of a presales person starts from the initial contact phase and often ends once the
customer is acquired i.e. sale is made. In some cases, presales also provide some initial or
transitional support post sale.

The responsibilities differ from organization to organization but in general include:

1. Solution Preparation/Proposal based on Customers’ Requirements

2. Product demonstrations

3. Proof of Concept Creation

4. Creation of Marketing Documents

Typical Pre-sales support activities include:

 Responding to client requests: Responses to clients could include informal responses,

pointers to publications, collaterals or other references or take more specific forms
like responses to proposals including: Request for Proposal (RFPs), Request for
Information (RFI) and specific Statement of Work (SoW) or Work Orders
 Supporting client visits: In some cases, clients or prospective clients may make a trip
to offshore vendor's offices for a personal visit prior to engaging with them. This could
include offshore client visits targeted at offshoring
 Visiting clients and/or making presentations: Engaging clients for larger, complex
deals involves a number of activities, including making presentations, meeting with
clients to discuss specific aspects of their (client's) initiatives, to get a better
understanding of the context in order to make specific recommendations in proposals.
This may also include preparing proof-of-concept demonstrations and solution
mockups.
 Competitor Analysis and market scanning: This is a crucial aspect of pre-sales since
many clients evaluate responses from multiple vendors, and responses should address
such competitive scan. The analysis could include using online tools, subscribing and
analyzing research reports, analyst studies, market research data etc.
 Sales Support: Such activities may include supporting sales and account teams in
responding to general client queries about solutions and capabilities. This could
include partnering with onsite/client facing Sales or Business Development Managers
to identify and convert prospects into customers.
 Interfacing with other internal groups (within the organization) while responding to
client requests. This is especially true of larger software service firms where Pre-sales
people from one group/division may have to rope in Subject Matter Experts from
other groups while responding to a client request or proposal

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  Marketing support: Large service firms work hard at differentiating themselves from
others by formulating marketing messages and evolving Go-to-market solutions or
customized offerings. This may also take a form of alliances with other software
product development firms or niche vendors. Pre-sales activities may include
leveraging such alliances to showcase extended capabilities to clients.

How does Pre-sales work?

Clients or companies that need software services and project implementations generally call
for proposals from a pool of preferred vendors. Although it is hard to generalize on the nature
of or the contents of such proposals, most documents follow a structured framework:
detailing the project, asking vendors for suggestions or solutions or proposals along with cost
estimates regarding the work to be done. RFP responses would generally involve two
components:

 The technical solution: A typical response to an RFP or proposal will include a

substantial technical component. People responding to RFPs at service firms generally
follow a well-defined operating process involving plugging the response documents
with common templates about the company and its capabilities. The customization
process kicks in when it comes to project and client specific responses; and here is
where someone with a technical background is really valuable. Technical subject
matter experts are needed to analyze the client's problem, think through a framework
to create a solution based upon their knowledge and experience. Such skills can be
especially useful while preparing a proof of concept or technical demo. The focus areas
include:
o Demonstrate to the client that you Get their problem and showcase how you
will approach the solution. During Pre-sales phase, technical solutions could
include a mockup of the end-state technical view, reference architecture (aka.
Marchitecture), approach or framework to solve the client's specific problem.
o Demonstrating organizational capabilities. Organizations typically
demonstrate their capabilities by referencing past successes (Case studies,
whitepapers etc.), and may also develop proof-of-concept (POC),
demonstrations or mockups.
 Commercials and administrative aspects: Commercial and administrative aspects
include a whole gamut of activities involved in responding to clients with specific
reference to the processes involved in executing the engagement / project. Cost is
definitely a key criteria organizations use while evaluating a proposal though
depending on the nature of problem being sourced, the credentials of the vendor and
the solution may take a higher priority. The administrative aspects include a high-level
estimate of the effort involved in terms of duration (time), effort (people/resources)
and additional resources including infrastructure etc. required to successfully provide
the required solution. Estimating the level-of-work involved may include formal

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 estimation techniques based on expertise from past projects or could be a very
heuristic process, especially for newer technologies without adequate benchmarks.
The focus areas may include:
o Cost, budget and financials: What is the total cost to the client, how often will
they be invoiced and the mode of payment etc.? This may include defining the
billing model: Time and Material (T&M), Fixed Price (FP) or other blended
models.
o Staffing plan, resource management: Responses to proposals typically include
staffing plans (how many people, skills they bring to the table, roles etc.) and
may also include other resources needed including specific systems, hardware,
software etc.
o Credentials, testimonials and references from past clients. There are instances
where clients may ask for specific testimonials from existing/past clients of
service firms. Staff engaged in pre-sales activities should be able to arrange for
such references.

Project Management

Project management is the process of Planning, Organizing, Staffing, Directing,

coordinating and budgeting resources to achieve specific goals.
It can be classified into:
Project framework

Integration management

Scope management

Time management

Cost management

Quality management

Human resources management

Communications management

Risk management

Procurement management

Planning
1. Clearly define the project objective.
2. Divide and subdivide the project scope into major “pieces”

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 3. Define the specific activities for each piece (work package)
4. Graphically portray the activities that need to be performed from each work package
in order to accomplish the project objective – in the form of network diagram.
5. Make a time estimate for how long it will take to complete each activity – resources
needed.
6. Make a cost estimate for each activity.
7. Calculate a project schedule and budget to determine whether the project can be
completed within the required time, with the allotted founds, and with the available
resources.

Work Breakdown Structure (WBS)

A work breakdown structure (WBS) is a model of the work to be performed in a project

organized in a hierarchical structure. The WBS is an important tool which helps you keep an
overview of the project:

 It forms the basis for organization and coordination in the project.

 It shows the amount of work, the time required, and the costs involved in the project.

The work breakdown structure is the operative basis for the further steps in project
planning, for example, cost planning, scheduling, capacity planning as well as project
controlling.

Gantt Chart
A Gantt chart is a type of bar chart, developed by Henry Gantt in the 1910s, that illustrates
a project schedule. Gantt charts illustrate the start and finish dates of the terminal elements
and summary elements of a project. Terminal elements and summary elements comprise the
work breakdown structure of the project. Some Gantt charts also show the dependency
relationships between activities.

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Program Evaluation Review Technique
The Program Evaluation and Review Technique (PERT) is a network model that allows for
randomness in activity completion times. It has the potential to reduce both the time and cost
required to complete a project.
PERT planning involves the following steps:

1. Identify the specific activities and milestones.

2. Determine the proper sequence of the activities.
3. Construct a network diagram.
4. Estimate the time required for each activity.
5. Determine the critical path.
6. Update the PERT chart as the project progresses.

Benefits of PERT
PERT is useful because it provides the following information:
 Expected project completion time.
 Probability of completion before a specified date.
 The critical path activities that directly impact the completion time.
 The activities that have slack time and that can lend resources to critical path
 Activity start and end dates.

Software Development Life Cycle

A framework that describes the activities performed at each stage of a software

development project.

1. Planning phase – involves establishing a high-level plan of the intended project and
determining project goals

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 2. Analysis phase – involves analyzing end-user business requirements and refining
project goals into defined functions and operations of the intended system
3. Design phase – involves describing the desired features and operations of the system
including screen layouts, business rules, process diagrams and other documentation
4. Development phase – involves taking all of the detailed design documents from the
design phase and transforming them into the actual system
5. Testing phase – involves bringing all the project pieces together into a special testing
environment to test for errors, bugs, and interoperability and verify that the system
meets all of the business requirements defined in the analysis phase
6. Implementation phase – involves placing the system into production so users can
begin to perform actual business operations with the system
7. Maintenance phase – involves performing changes, corrections, additions, and
upgrades to ensure the system continues to meet the business goals

Waterfall Methodologies

Waterfall methodology – an activity-based process in which each phase in the SDLC is

performed sequentially from planning through implementation and maintenance

Agile Methodologies
Agile methodology aims for customer satisfaction through early and continuous delivery
of components developed by an iterative process
 An agile project sets a minimum number of requirements and turns them into a
deliverable product

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  Iterative development – consists of a series of tiny projects

Rapid Application Development

Rapid Application Development emphasizes extensive user involvement in the rapid and
evolutionary construction of working prototypes of a system to accelerate the systems
development process.
The prototype is an essential part of the analysis phase when using a RAD methodology
Prototype – a smaller-scale representation or working model of the users’ requirements
or a proposed design for an information system

Fundamentals of RAD
• Focus initially on creating a prototype that looks and acts like the desired system
• Actively involve system users in the analysis, design, and development phases
• Accelerate collecting the business requirements through an interactive and iterative
construction approach

V Model

• A variation of the waterfall model

• Uses unit testing to verify procedural design
• Uses integration testing to verify architectural (system) design
• Uses acceptance testing to validate the requirements
• If problems are found during verification and validation, the left side of the V can be
re-executed before testing on the right side is re-enacted

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Enterprise Resource Planning (ERP)

ERP system deals with the planning and use of resources used in the business. Resources are
finance, manufacturing, HR, materials. ERP is a package encompassing all major functions of
the business. It is a way to integrate the data and processes of an organization into one single
system.

Usually ERP systems will have many components including hardware and software. In order
to achieve integration, most ERP systems use a unified database to store data for various
functions found throughout the organization. ERP integrates all departments and functions
throughout an organization into a single IT system (or integrated set of IT systems) so that
employees can make enterprise wide decisions by viewing enterprise wide information on all
business operations.

ERP systems collect data from across an organization and correlate the data generating an
enterprise wide view

Why do organizations need integrations, if an ERP system contains one database that
connects all applications together?
Most organizations operate functional “silos”, and each department typically has its own
systems. A company might purchase an ERP and then all of the functional silos would be on
one system, however, this doesn’t happen very often in the real world. Most organizations
require anywhere from 10 to 100 to 1,000 different systems to run their business. Finding one
system that could meet all the needs of an entire organization from billing to sales is almost
impossible, “sort of a utopia”

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 An organization can purchase an ERP and still have other applications running parts of its
business (for example, taxation packages) that are not supported, or not supported well, by
the ERP system.

At the heart of all ERP systems is a database

ERP systems automate business processes, for example, order fulfillment

When a CSR takes an order from a customer, he or she has all the information necessary
to complete the order (the customer’s credit rating and order history, the company’s
inventory levels, and the delivery schedule). Since the company is using an ERP, everyone else
in the company will automatically see the information that the CSR types into the ERP system
When one department finishes with the order, it is automatically routed via the ERP
system to the next department. To determine where an order is at any point in time, a user
only needs to login to the ERP system and track it down.

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Organization before ERP

ERP – bringing the organization together

22
Evolution of ERP

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Modules of ERP
• Business forecasting, planning and control (Business)
• Sales, distribution, invoicing (Sales)
• Production planning and control (Production)
• Materials Management (Materials)
• Finance and accounting (Finance)
• Personnel management (HR)

Benefits of ERP
• Cross-functional process orientation with high visibility
• Enables exchange of information throughout the supply chain in real time
• Reduces operations costs
• Reduces cycle times
• Facilitates bottleneck identification and management
• Improved inventory management and inventory cost reduction
• Improved customer service levels, material shortages and reduced late deliveries
• Standardized and normalized data and data formats
• Enhanced communication across functional boundaries
• Emphasis on process orientation
• Enhanced integration across the supply chain and business units
• Expanded information access with appropriate user rights
• Enhanced empowerment of employees through increased information sharing
• Improved system-wide accountability and visibility
• Facilitates the implementation of do it right the first time philosophy
• Improved accuracy of forecasting and master scheduling
• Integrates organization activities

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 • Employs “best practices”
• Enables organizational standardization
• Improves information management via single database
• Provides on-line and real-time information
• Facilitates intra- and inter-organization communication and collaboration

Disadvantages of ERP
• Customization of the ERP software is limited.
• ERP systems can be very expensive
• ERP’s are often seen as too rigid and too difficult to adapt to the specific workflow and
business process of some companies—this is cited as one of the main causes of their
failure.
• Some large organizations may have multiple departments with separate, independent
resources, missions, chains-of-command etc., and consolidation into a single
enterprise may yield limited benefits.
• The need to reengineer business processes
• High cost of the software itself, consultants, employee time, and training
• Requires significant changes in corporate culture and business processes.
• Complex and extended undertaking that can fail and waste millions of dollars.
• Extensive reliance on the ERP vendor
• Painful and lengthy implementation and debugging
• High level of expertise needed for implementation and debugging

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Steps to Implement ERP

Requirement Product mapping

Analysis: RDD to RDD
1 2 Fig: 9 steps is ERP
implementation

Gap analysis
For review
3

Functional
Implementation Implement fully
5 User training 8
ERP product Hand holding
Configuration Testing
4 User feedback
Technical Review Project & process
Implementation 7 Review
6 9

ERP Market

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Consultancy

"The creation of value for organizations, through the application of knowledge,

techniques and assets, to improve performance. This is achieved through the rendering of
objective advice and/or the implementation of business solutions."

Types of Consulting
1. Strategy Consulting: Strategy consultancy means advising the senior management in
large organizations on the future direction of their business. This may involve
analyzing growth opportunities, cost reduction exercises or benchmarking products,
services or structure against competitors. But with increasing depth of overhaul
processes recommended that lead to the refocusing, re-engineering or re-launching
of a client's business, many strategy consultancies have moved from their traditional
role as pure advisors to also providing support in the implementation phase of major
projects.
2. Management Consulting: The general management consulting field covers a wide
variety of services from the consultancy arms of the major accounting firms,
concentrating on operational and organizational issues, through to corporate identity
specialists and executive search companies. Put very simply, while advice and
recommendation play a large part in the work, the emphasis in general management
consultancy is on "doing" - implementing a system, reorganizing a department,
improving a process - and will consequently appeal to those with a more practical,
"hands-on" approach.
3. IT Consulting: With information technology permeating all aspects of our lives, both
in the workplace and at home, IT consultancy has mushroomed over the last decade
and is now, not just a functional specialism, but an industry in itself. IT consultancy
ranges across all areas of strategy and general management consultancy, from
advising clients on how to take best advantage of new technologies, to change
management, to systems implementation and new product development, on
developing basic skills and competencies.
4. Operations Consulting – This type of consulting mostly applies to manufacturing-type
situations. For instance, a firm might want to reduce assembly line defects from 5% to
1% in 3 months. A call center might want to achieve waiting time reduction of 1
minute, and 5% improvement in “abandonments”.
5. Marketing & Sales Consulting – A firm might need assistance in understanding what
the most effective promotional channels are, which ones to consider, how budgets
should be allocated across these channels, how large the marketing and sales team

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 should be, how to increase reach of sales teams, how they should track effectiveness
(and take corrective action immediately), etc.
6. Real Estate Consulting – Real Estate Consultants assist firms with valuations, property-
related legislation (tax, compliance, etc.), locating and renovating/building the best
possible office/factory/residential space at the lowest possible price.
7. Boutique & “small shops”: Boutique consulting firms offer businesses
and corporations’ highly specialized advice that addresses specific problems or
aspects of a business or that provide services to specific types of businesses. This type
of consulting firm typically focuses on a particular niche or a small number of
niches. Boutique firms are often able to resolve business issues more quickly than
large firms and can draw on their expertise in specific subjects to create effective
solutions.

Job Description of a Management Consultant

The day-to-day activities of management consultants are often complex and varied.
Projects can vary in length depending on the type of consultancy, firm and the demands
of the client. They can involve an individual or a large team and may be based in one
location or across various sites including overseas.

Typical tasks, particularly for new graduate recruits, involve:

 Carrying out research and data collection to understand the organization;

 Conducting analysis;
 Interviewing client's employees, management team and other stakeholders;
 Running focus groups and facilitating workshops;
 Preparing business proposals/presentations.

In addition to the above, tasks for more experienced and senior consultants involve:

 Identifying issues and forming hypotheses and solutions;

 Presenting findings and recommendations to clients;
 Implementing recommendations/solutions and ensuring the client receives the
necessary assistance to carry it all out;
 Managing projects and programs;
 Leading and managing those within the team, including analysts;
 Liaising with the client to keep them informed of progress and to make relevant
decisions.

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Major Consulting Firms
Companies Headquarter
1. McKinsey & Company New York
2. Bain & Company Boston
3. The Boston Consulting Group Boston
4. Strategy& (formerly Booz & New York
company)
5. PwC (Pricewaterhouse Coopers) New York
6. Deloitte Consulting LLP New York
7. The Brattle Group Cambridge
8. Accenture New York
9. The Cambridge Group Chicago

Cloud Computing

The practice of using a network of remote servers hosted on the Internet to store,
manage, and process data, rather than a local server or a personal computer.

Advantages
It reduces upfront infrastructure cost so that the organization can focus on projects. It
relies on sharing resources and focuses on maximizing the effectiveness of the shared
resources. Cloud resources are usually not only shared by multiple users but as well as
dynamically re-allocated as per demand. This can work for allocating resources to users in
different time zones. For example, a cloud computer facility which serves European users
during European business hours with a specific application (e.g. email) while the same
resources are getting reallocated and serve North American users during North America's
business hours with another application (e.g. web server). Moreover, for new installations, it
enables the organizations to get their solutions up and running in less time. The maintenance
and scalability issues can be relatively easily addressed in cloud based solutions.

Service Models
Cloud computing providers offer their services according to several fundamental models:
infrastructure as a service (IaaS), platform as a service (PaaS), and software as a service (SaaS)
Infrastructure as a Service: Cloud providers of IaaS offer computers - physical or (more
often) virtual machines - and other resources.

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 Platform as a Service: Cloud providers deliver a computing platform, typically including
operating system, programming language execution environment, database, and web server.
Software as a Service: Cloud providers allow access to application software and
databases.

Challenges
1. Customers do not have full visibility and control since the server is not within their
own network.
2. Security concerns if sensitive data lands on public cloud servers
3. There are Capacity concerns since users may use an unpredictable amount of
resources at any given time and then disappear at any time
4. Budget concerns around overuse of storage or bandwidth

Deployment models
The most popular deployment models are:
1. Private cloud: Cloud infrastructure operated solely for a single organization.
2. Public cloud: When the services are opened for public use.
3. Community Cloud: When infrastructure is shared between several organizations from
a specific community with common concerns (security, compliance, jurisdiction, etc.)
4. Hybrid cloud: It is a composition of two or more clouds.
5. Personal cloud: Application of cloud computing for individuals similar to a Personal
Computer.

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Big Data

Introduction
One of the amazing facts on the growing volumes of data today is that every day, around
2.5 quintillion bytes of data is being created. Also, 90% of the data in the today’s world has
been created in the last two years.
The following are the reasons for the enormous increase in the volumes of data.
- Traditional enterprise data – includes customer information from CRM systems,
transactional ERP data, web store transactions, and general ledger data.
- Machine-generated /sensor data – includes Call Detail Records (“CDR”), weblogs,
smart meters, manufacturing sensors, equipment logs (often referred to as digital
exhaust) and trading systems data.
- Social data – includes customer feedback streams, micro-blogging sites like Twitter
and social media platforms like Facebook.
The key characteristics that define big data are:
- Volume: Machine-generated data is produced in much larger quantities than non-
traditional data. For instance, a single jet engine can generate 10TB of data in 30
minutes. With more than 25,000 airline flights per day, the daily volume of just this
single data source runs into the Petabytes. Smart meters and heavy industrial
equipment like oil refineries and drilling rigs generate similar data volumes,
compounding the problem.
- Velocity: Social media data streams – while not as massive as machine-generated data
– produce a large influx of opinions and relationships valuable to customer
relationship management. Even at 140 characters per tweet, the high velocity (or
frequency) of Twitter data ensures large volumes (over 8 TB per day).
- Variety: Traditional data formats tend to be relatively well described and change
slowly. In contrast, non-traditional data formats exhibit a dizzying rate of change. As
new services are added, new sensors deployed, or new marketing campaigns
executed, new data types are needed to capture the resultant information. The data
could be structured or unstructured data such as text, sensor data, audio, video, click
streams, log files and more.
- Value: The economic value of different data varies significantly. Typically there is good
information hidden amongst a larger body of non-traditional data; the challenge is
identifying what is valuable and then transforming and extracting that data for
analysis.

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Why Big Data
Growing Data Volumes

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 Above is a statistic on how much data is generated every minute.
It’s also worth noting that Google is a youthful 16 years old, Facebook is only 11 years old,
Twitter a mere 8. This is driving more content and web service consumption and a greater
need for personalization and recommendation for consumers to cope with the wave of
information and data. And there are more than enough businesses that now offer a solution
to the problem with differing levels of technology driven solutions recommendation
algorithms and physical duration. In many ways web services manage some of the challenges
consumers face in the sheer volume of information they need to navigate, friends they keep
in touch with and products they purchase.

Growth in the investments on the technology

Baseline has reported extensively about the booming interest in big data. In fact, seven
out of 10 CIOs and other top executives say data analytics is a "crucial" or "very important"
business driver, according to survey research from KPMG. The interest is fueled by the fact
that big data continues to grow so rapidly: A statistic quoted in an IDC and EMC report says
that the digital universe is doubling every two years, and will reach 40,000 Exabyte’s (40
trillion gigabytes) by 2020. (A single Exabyte of storage can contain 50,000 years' worth of
DVD-quality video.) As a result, a growing number of corporations have access to far more
information that they can manage, and they are constantly challenged with getting the right
IT tools and tech talent in place to maximize big data's value. As with any new initiatives,
however, there will always be pushback. So, if you're trying to justify the need for a big data
initiative, consider using the following impressive statistics, which were obtained from
research produced or compiled by Sybase, the Wikibon Project, Capgemini, CSC and other
organizations
Gartner termed 2013 as the year of Big Data. According to a worldwide Gartner survey of
IT leaders, 42 percent of respondents stated they had invested in big data technology, or were
planning to do so within a year. A recent IDC forecast shows that the Big Data technology and
services market will grow at a 27% compound annual growth rate (CAGR) to $32.4 billion
through 2017 - or at about six times the growth rate of the overall information and
communication technology (ICT) market. As more organizations realize the importance of
these large information pools, the need for skilled talent to support big data initiatives will be
even greater. Gartner predicted that big data will produce 4.4 million jobs by 2015, with
almost 2 million in the United States alone. The impact of big data goes even deeper,
influencing not just the tech sector, but other fields as well
A survey conducted by New Vantage Partners found that a majority of large companies
spend more than $1 billion annually on technology. According to Paul Barth, founder and
managing partner at the firm, these businesses have a lot of resources to supporting IT
initiatives. Barth also said that 85 percent of respondents already have big data projects in
the works. The survey also found that companies are leveraging big data for a variety of
reasons, especially to enhance the customer experience and improve decision-making. Some

33
organizations want to reduce corporate risk, while others are seeking ways to produce better-
quality products and services.

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Predictive Analytics on demand
Predictive Analytics is a business intelligence tool that can help you to analyze the data
with help of advanced statistical and analytical techniques. These techniques are used to form
models that predict future happenings related to the business or operations. Use of real time
data is supported to plan for future, shape business decisions and, ultimately, improve
business performance. Human mind can look at data in charts / tables and understand a lot
of what’s going on but it is limited to few factors, beyond which untangling relationships
becomes extremely difficult. Here predictive analytics helps to eliminate guesswork and apply
its scientific techniques that can easily mine across hundreds of factors and quickly highlight
those that are most important or vital few to make proactive decisions for future.
Predictive analytics also focuses on distilling insight from data, but its main purpose is to
explicitly direct individual decisions. Its application is not limited to one area of a business
rather it is can applied to many areas such as Marketing, Refinance etc. It can also anticipate
when factory machines are likely to break down or figure out which customers are likely to
default on a bank loan. Marketing is the biggest user of predictive analytics though, with
campaign management, customer acquisition, and budgeting as some of the areas of usages.
There are two different applications of Predictive Analytics – one for Business Intelligence
(BI) and one for IT. Predictive Analytics has been used for several years for BI, receiving a lot
of press in the last two years with announcements such as IBM's acquisition of SPSS.
Predictive Analytics for BI involves data mining and mathematical analysis to understand
patterns and forecast business trends, such as consumer activity, and this is not performed in
real-time.
Predictive Analytics for IT, on the other hand, does a similar analysis, but in real-time. This
new technology is used specifically to analyze performance metrics collected across the IT
infrastructure, determine patterns of behavior, and identify anomalies that signify potential
performance or capacity issues – even when these aberrations might be imperceptible to the
IT admin observer. The real-time aspect of Predictive Analytics for IT is becoming essential in
dynamic environments such as web-based applications for e-commerce, virtual environments
and the cloud.

Competitive Advantage
The use of Big Data is becoming a crucial way for leading companies to outperform their
peers. In most industries, established competitors and new entrants alike will leverage data-
driven strategies to innovate, compete, and capture value. Indeed, we found early examples
of such use of data in every sector we examined. In healthcare, data pioneers are analyzing
the health outcomes of pharmaceuticals when they were widely prescribed, and discovering
benefits and risks that were not evident during necessarily more limited clinical trials. Other
early adopters of Big Data are using data from sensors embedded in products from children’s
toys to industrial goods to determine how these products are actually used in the real world.

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Such knowledge then informs the creation of new service offerings and the design of future
products.
Big Data will help to create new growth opportunities and entirely new categories of
companies, such as those that aggregate and analyze industry data. Many of these will be
companies that sit in the middle of large information flows where data about products and
services, buyers and suppliers, consumer preferences and intent can be captured and
analyzed. Forward-thinking leaders across sectors should begin aggressively to build their
organizations’ Big Data capabilities.
In addition to the sheer scale of Big Data, the real-time and high-frequency nature of the
data are also important. For example, ‘now casting,’ the ability to estimate metric such as
consumer confidence, immediately, something which previously could only be done
retrospectively, is becoming more extensively used, adding considerable power to prediction.
Similarly, the high frequency of data allows users to test theories in near real-time and to a
level never before possible.

Technologies Used
Apache Hadoop is the rapidly emerging open source technology for big data analytics. It’s
a scalable fault-tolerant distributed system for data storage and processing.
The two main components of the technology are
1. Distributed data
2. Distributed processing
Hadoop Distributed File System (HDFS):
The technology is used for distributing the data and is optimized for large and streaming
reads of files. The data is organized into files and directories and files are divided into blocks,
distributed across cluster nodes. This also allows replication of data in every node which is
the one and only strategy for error handling, recovery and fault tolerance.
MapReduce:
This is the technology used to distribute the tasks/processes across the nodes. The
shuffling and sorting processes happen in between map and reduce.

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The landscape for big data is defined below:

Problem statement for Hadoop:

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Advances of the Technology
The technology operates on both structured and unstructured data. Below is a
comparison of the traditional BI and big data analytics.

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Social Media Analytics

Social Media Analytics is the practice of gathering data from blogs and social media
websites and analyzing that data to make business decisions. Since conversations posted
online can have a big impact on a brand, it becomes critical to understand what people are
talking about in regards to an offering so that appropriate actions can be taken to create and
foster a positive chatter (conversation) about a brand.
Broadly, social media measurements come in two flavours:
1. Measuring the conversations about an offering in social media
2. Measuring the impact social media efforts (e.g. the Facebook widget or links posted on
twitter etc.)

Social Media Analytics Tools

These are a new breed of tools that help in monitoring the social buzz. These tools can
help in “listening” into the conversation about a brand.
In these tools, a specific set of keywords that define a brand or are associated with it are
earmarked and then the tools do the rest. They crawl the social media networks/sites and
find all the mentions of the specified keywords and bring them back in formatted reports.
Once the data is back analysis of the data needs to be done.

Information provided by these tools:

1. Brand Mentions - Conversation about a brand/competitor/industry (as specified by
keywords). Total mentions by day/week/month can be obtained and also the ability
to drill down to a specific conversation.
2. Brand Sentiment – What is the consumer sentiment towards a brand? Are they
positive, negative, neutral?
3. Influencers - Who is talking about the brand? How influential are they and how many
times have they talked about it?

Some of the Social Media Analytics Tools are:

 Radian6
 WebTrends - Powered by Radian6
 Techrigy - SM2
 Omniture - Integration with Twitter
 Visible Technologies
 Nielsen BuzzMetrics
 Biz360 Community Insights
 Dow Jones Insights
 Sentiment Metrics

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Screenshots of a Social Media Analytics tool:

40
Customer Relationship Management

Customer relationship management (CRM) systems have the following functions:

 Capturing and integrating customer data from all over the organization
 Consolidating and analyzing customer data
 Distributing customer information to various systems and customer touch points
across the enterprise
 Providing single enterprise view of customers

CRM software
 CRM packages range from niche tools to large-scale enterprise applications
 More comprehensive offerings have modules for:
 Partner relationship management (PRM):
o Integrating lead generation, pricing, promotions, order configurations,
and availability
o Tools to assess partners’ performances
 Employee relationship management (ERM):
o E.g. Setting objectives, employee performance management,
performance-based compensation, employee training

CRM packages typically include tools for:

 Sales force automation (SFA)
 E.g. sales prospect and contact information, and sales quote generation
capabilities
 Customer service
 E.g. assigning and managing customer service requests; Web-based
self-service capabilities
 Marketing
 E.g. capturing prospect and customer data, scheduling and tracking
direct-marketing mailings or e-mail

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 CRM Software Capabilities:

Types of CRM Software:

 Operational CRM
o Sales Force Automation
o Customer Service Centers
 Analytical CRM
o To extract vital data about Customers & Prospects for Targeted
Marketing Campaigns using tools like Data Mining
 Collaborative CRM
o Involves Business Partners & Customers in Collaborative Service
 Portal Based CRM
o Internet, Intranet & Extranet Web based CRM portals as a common
gateway for various levels of access to all customer information as well
as Operational, analytical, & collaborative CRM tools for customers,
employees & business partners

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