Automotive and Ancillary:
The automotive industry continues to be the most exciting and challenging of industries. The OEMs as well as dealers in this industry are facing the effects of over capacity, shrinking demand in developed economies such as North America, Europe and Japan; maturing growth in China and uncertain business climate in India, and other BRIC countries. Furthermore; radical changes in emission regulations across the globe and escalating fuel costs are also affecting the firms in the sector.
As a result, the global automotive, heavy machinery and allied industries are in the course of major transformation. The industry is now focused on technological advancements such as connected cars, and new market opportunities. First stage of transformation is to sell products across the developing markets which offer tremendous opportunity for these OEM’s. Additionally, these markets also povide an opportunity for these OEM’s to source components at attractive prices. Some of the global firms are also looking at setting full fledged production plants in this region due to large pool of talented workforce which is available at competitive prices.
The second stage of transformation is occuring in developed markets where the emphasis is on innovation and alternate fuel technology. Rising costs in developed markets where currently 80% of the automotive production takes place has been moving towards assembly manufacturing and contract manufacturing.
GrowthPraxis combines insightful analysis to address key industry questions such as growth strategies and market entry; sales and marketing strategies, product design, and planning among others. GrowthPraxis works with automotive manufacturers, Agricultural Machinery & Other Heavy Machinery manufacturers, and dealers & suppliers.
ITes, Cloud and Technology
Technology companies face many challenges. These firms operate in a true global environment and are challenged by rapid changes in the eco system driven by emergence of technology, new competitors, new business models coupled with evolution of customer needs and expectations. As a result, these firms are facing critical questions related to strategy, operations and human resources.
Furthermore, adoption of cloud, social media, analytics and mobile technologies are revolutionizing every industry. Companies operating in this domain are expected to play a key role in this transformation and are expected to undergo a sea change them self. All of these would require technology companies to de align themselves.
The software industry’s major challenge is to maintain a global focus. In addition, these firms are required to deploy modern applications through both web and mobile devices. Organizations must also be ready to do business with virtually any client industry including the government. Furthermore, technical infrastructure needed to support global markets are much more complex that those in the past. Applications must work seamlessly across PCs, mobile devices, and across ISPs and mobile carrier networks. While all these offer greater opportunity, they also mean more challenges.
The IT services sectors remain highly dynamic with emergence of SMAC. These technologies have created an opportunity for firms to move up the value chain. However, saturation of IT spending, regulatory hurdles for off shoring, lack of skilled labour and increasing cost of hiring talent are leading to thinning margins. Furthermore, the industry has also seen a shift in business model moving from FTE based to success based pricing.
The ITeS and the BPO industry is going through a phase of sluggish growth. Firms operating in this sector are struggling to maintain their USP which is low cost, English speaking and technical employee’s base. Attrition which is pegged at approximately 30% in a country like India is also big concern. Firms operating in this sector are looking at expanding their operations beyond India and Philippines.
GrowthPraxis helps its clients around the globe to improve the performance, measure and control cost of operation, expand to new market segments and new geographies.
Payments & Commerce
Technology is reshaping the way we spend money and also how we store it, transfer it and send it across the country or across the world. It is transforming the way we buy things online at Ecommerce stores or at Physical Stores.
The new canvas of Commerce is obviously about Money. It’s also about Mobile, which is the new Online. It’s about Payments, Wallets and Transactions, but in the broader context of innovation in commerce. It’s about retail propositions such as Offers, Deals, Coupons, Shopping, etc. – everything that touches the consumer experience in this mobile generation.
Backend infrastructure and transactions for banks, inter bank and networks are unimaginably huge and in-efficient. Technology is reshaping that as well.
Startups are coming up with innovation solutions, ranging from Bitcoin wallets, Remittance Solutions, magstripe innovation, prepaid, and many more areas. The biggest innovation will come from the way we can transact efficiently at the lowest denomination level. The prospect of sending very small amounts, perhaps a penny is so exciting.
It took us hundreds of years to go from cash to plastic and its still not complete. Its definitely going to take much lesser time going to cashless and cardless regime.
Consumer acceptance is increasing slowly. And so is Fraud and Risk.
Equally important is to move toward s Universal Financial Inclusion
Payments innovation is happening in Banking, FinTech, Retail, Telecom, Advertising, Marketing and other industries as well. Even a watch and a car is becoming a connected device and can transact. This interdependency between adjacent industries is a central theme of the innovations that are shaping the new money-related experiences.