I was reading an article in business world about what ails Infosys this made me realize that how fragile is reputation , trust that an organization builds spanning over decades and in rare cases centuries
Infosys to an outsider like me appears to be an organization with strong culture….a culture that reflects its value system at the same time appears to be very staunch…overpowering….inflexible in its approach….its culture has not changed much with times…….there is enough data to show that the top most management believes in tight control over the organization at the same time they have a decentralized decision making system (conflicting is’nt it)…
Last quarter also infy failed to achieve forecasted growth; soon speculation began of what is wrong with Infosys. There are many thing which are wrong with infy at the moment however what needs to be reminded is that its an organization going through a huge transition….without the top management which have taken infy through her baby steps……it has come a long way…..for me I will put it like a child who is now entering turbulent teenage years…where there are conflicts…..internal changes……adaptation to eternal environment around us more so ever …formation of the adolescent years that lie ahead. Its not an organization which people can write of so easily……..people, investors, employees they need to have their faith intact and then only then can be part of the years that are ahead.
Its core competency lied purely in its GDM model which now has been adapted its peer organizations and competitors alike…..so what has Infosys left with now….what it needs to do is to innovate itself find its niche again….do what it did every time…bounce back with something new something unique….and true differentiator…But all this would require tremendous change….few ups and loads of down’s at the same time it needs to regain faith of investors and employee’s…but the question is how……..
It’s so easy for people like me to speculate…………..that this is wrong that is wrong and we Indians are PHD’s in it but we need to provide solutions as well…next time onwards…I’ll think (without googling)
Btw I had decide to write this blog with pure data and u know some typical MBA tuff but then as it goes I am still getting use to the typical MBA bhasha , however I had made some points while reading the article…..
· Conservative org culture , tight control and high focus on margins, forecasting shunning away business which were not profitable, conserving cash and growing organically
· US Europe market dependence diversification
· Improve profit, reduce cost , improvise product and services but how? Need for an innovative model but what
· Competitive advantage with GDM not anymore need to find another differentiating factor in GDM
· HUGE cash reserves of $4.1 billion …what are they doing with it (FDs also don’t yield you any return with this kind of money….invest it SOMEWHERE)