TechMNxt Analyst Event — Tech Mahindra Unveils 3-4-3 Strategy
Tech Mahindra (TechM) hosted an analyst summit in Hyderabad, India in the month of April. The executive team unveiled its 3-4-3 strategy to repackage the firm’s existing services and offerings in a manner that will resonate with the buyers of digital services. Where do the 3-4-3 numbers come from? The first number 3 denotes the three mega trends that TechM is observing in the industries in which it operates. These trends help TechM make 4 big bets in each of the industries to help its clients achieve 3 objectives: run better, change faster, and grow greater.
Each Industry Practice Has Its Own 3-4-3 Framework
At the corporate level and for the communications vertical, the three mega trends are: 1) an explosion in connected devices; 2) 5G; and 3) video on all devices. However, different industry practices identified different, specific trends of their own. Consequently, the aforementioned 4 big bets differ by practice, as well. For example, while the retail practice talks about digital customer experience, platforms, IP-led innovation, and core transformation, the firm’s manufacturing practice is betting on smart products, smart manufacturing, customer centricity, and a connected aftermarket. Still, TechM’s clients will find this 3-4-3 framework to be a very simple, consistent, and easy way to standardize articulation of their strategic approach.
Three Customer Objectives Are The Only Constant
TechM’s industry verticals still need to do some work before they fully internalize this framework, however. For example, the four bets for the healthcare and life sciences practices could be aligned better.
The company has also not outlined a platform approach, which is clearly a missed opportunity given the direction that the industry is headed (please see an update below). To its credit, TechM has ensured that the end customer objectives of run better, change faster, and grow greater are kept consistent across all practices. To benefit from this goal, TechM’s customers/prospective customers will need to look at their engagements and institute practices that track the service provider’s contribution to these goals.
IoT Is Omnipresent
Given TechM’s heritage and traditional focus on telecom, networks, and connectivity in general, the internet of things (IoT) comes up very frequently in its offerings. Most of its verticals have one or more of the big bets based on IoT-enabled solution offerings. In manufacturing, three out of the four bets have an underlying IoT component. This is clearly an important area for TechM, and enterprise buyers should include the firm in their evaluation mix.
Other notable topics of the event included TechM’s nascent consulting offering and credible design practices, which it is building on the back of the acquisition of firms such as Pininfarina and BIO. It also has a more evolved startup engagement program — especially compared to some of the other large service providers based out of India — to drive innovation and solution partnerships .
In summary, a clarity in the go-to-market through 3-4-3 will help TechM bring structure into client conversations, especially in situations that align well with this articulation. It will have to put some more effort in explaining its value proposition to clients where the work opportunity falls outside its self-professed big bets.
For CIOs — those who are already working with them and the ones that have TechM in their evaluation mix — it will be important to see how TechM lays out its investment dollars and builds capabilities around its big bets.
Update: Tech Mahindra updated me after the publishing of this blog that they do have a robust platform strategy in place in their Healthcare and Life Sciences practice. The have platform offerings in healthcare uberization and patient support program. For some reason I did not notice their mention by the industry speakers and regret the oversight.