Growth Strategy & Direction

Growth
Strategy &
Direction
Whitepaper

Vinay Srinivasan
vinay.srinivasan@techmahindra.com

10th Annual International

Software
Testing
Conference in India 2010

Growth Strategy & Direction
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Vinay Srinivasan

Abstract
The purpose of this Whitepaper is to Understand the Nature of Strategy for Growth, then
identify the Keys for Growth, to analyse the Forces Affecting Growth, to provide ideas on
developing a Strategy for Tailoring Growth in IT Industry, to draw an Analogy between
Natural and Generic Growth Strategy, to find out the Steps Towards Growth Strategy and
Areas for Growth in IT Industry and to work out on the Directions for Growth including
Optimistic Growth Strategy Models.

1. Nature of Growth
Growth is a Time Bound Activity and it is a measurable Quantity. For the Industry Sector it
can be considered as Increase in Strength, Opportunities and Revenue over a period of Time
and it can be specific to a Region. Here Capital Investment, Intellectual Capital, Resources,
Assets, Technology, Skills, Competency can be Considered as Strength. Markets, Stocks,
Domains, Technology can be considered as Opportunities. Income from Turnover or Income
from Sales, Services, Appreciation, and Increase in Stock value or other sources has
monetary values and can be considered as part of Revenue.

2. Growth Strategy
In General a Strategy determines the ways for reaching a particular Target and to achieve
the Goal. In the case of a Growth Strategy, it identifies the Keys for Successful Growth,
Steps towards Growth, determines the ways of building or utilizing those Keys and to
achieve the Growth (Directions). A Growth Strategy can be Generic but it will be better if
the Nature and Type of the Industry/ Domain, its Proposed/Existing Products or Areas of
Services or Both are known in advance. For example let us consider a Human Embryo, it
contains the Key Genetics for the Successful Growth into a Full fledged Human Being,
Likewise it is the same case with that of Seed of a Grass or a Tree. Here the Kernel of the
seed contains the Key Genetics for the Successful Growth into a Grass or a Tree
respectively. Similarly Let us consider an IT Organization; it should have the Key Factors
Assisting the Growth and the Areas of Specialization like Application Programming, System
Development, Software Testing, Best Practices and Process and so on to Grow into a desired
IT Organization. This Growth Strategy is very similar to the Strategy as can be found in
Nature in the form of Growth of a Tree.

3. Keys for Growth:

3.1. Developing Knowledge, Intelligence, Wisdom, Decisiveness
Knowledge is the know-how developed by processing available data and information. It can
be said to be borne out of Studies and Understanding or by Intellectual Means or by means
of Experience gained through Practice or by Transfer of Know-How with the guidance from
other persons possessing knowledge. Intelligence is borne out of Knowledge, based on the
collected Facts and Figures, Events and Forecasts and judgment on the Outcome. Wisdom is
developed when the Knowledge Matures and Realisation occurs on real world things.
Wisdom is useful for developing Insight, for Foreseeing Things that might happen and for
Making Wise Decisions. Decisiveness means taking the Right Decisions, to be ready to face
the Outcome of the Decisions and to be conclusive on what needs to done. Thus we can say
that Intelligence, Wisdom and Decisiveness are all derivatives/products which arise when
Knowledge is Cultivated or Grown in the form of a Tree. In case of a Tree, itself including its
Seed will have the Knowledge on How to grow its Roots, Trunk, Branches, Twigs and Leaves
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and so on. Likewise in case of an IT Industry itself, consisting of its Board of Directors, Top
Management/ Executives including the Staffs should have knowledge on how to increase
Strength, Hunt for Opportunities, Grow the Business and thereby earn more Revenue and
resulting in Overall Growth of the Industry. Similarly Intelligence, Wisdom and Decisiveness
are cultivated from Knowledge in both the cases of the Tree and the IT Industry. Hence
Knowledge can be considered as the Master Key to the Treasure for the Growth and for
the Growth Strategy itself.

3.2. Strength
Strength is like a Stimulus or Force or Will Power or Confidence which provides the
Opportunity for Growth. In case of a Tree, to begin with the Seed is its Strength. This seed
is what will germinate into Stem, Leaves, Roots, then later grow into a Tree and it is similar
to an established Capital. As the Tree Grows it will develop Trunk, Branches, Twigs, Leaves
and Propagate its Roots. Likewise in the case of an IT Industry, the Cash brought in as
Capital is its Seed of Strength. Then using this Capital it Creates Assets, Develop Skills,
Resources, Develop/ Acquire Technologies, Propagate its Growth by means of Production, by
Rendering its Services, by Marketing and thus increase its Revenue which all adds up to its
Strength. Strength is like the Key to the Potential for Growth.

3.3. Creating Innovation, Invention
Innovation is the Idea/Concept/Science which revolutionizes the development of new
Principles from the beginning or from the existing old ones and the application of that
Principle to meet the requirements. The Main purpose of innovation is to reduce the effort
involved in doing a Task or to reduce the Time required for obtaining a Solution. The Applied
Principle which results in the development of a Solution or Technology is termed as
Invention. In one way Inventions can be treated as derivatives of Innovation. For Example
in the case of Trees some of them have the innovation of developing Toxins, Hard shell
around the Seed Kernel, able to develop Wax Coating around the Leaves to protect
themselves, to withstand certain temperature and climatic conditions, are able to grow in
hilly regions and rocky areas as their roots are able to penetrate deep inside the solid
surface and so on. Here the Toxins, Hard Shell, Wax Coating etc, can be considered as
Inventions. Likewise in the case of an IT Industry, let us consider the example of Client
Server Technology. Here earlier there was a concept of using Thick Clients which were of
standalone in nature and required the Client to be installed at the point of access. At this
stage an Innovation occurred on an Idea for the purpose of extracting Texts and later on
Images from various different servers and submitting the data back to the connected Server
using a Single Universal Client. This Innovation resulted with the invention of Browsers, and
also became the Innovation of using it as a Thin Client. The usage of Thin Client was faster
and dynamic as compared to the Thick Client and has a very wide acceptance. Thus,
Innovation and Invention are like Key to the Brains for Growth.

3.4. Developing Competitiveness/ Leadership/ Domination:
Competitiveness is the Ability or Strength of an Individual or a Group or an Organization to
perform well in Challenging Situations or possess the Capability to compete with others. If
an Individual or Individual among a Group or Organization can excel in Competition for a
specific area or field or an identified collection of Roles/Tasks and also possess capabilities
to Guide others in those areas, then that Individual or Organization can be considered to
possess leadership tendencies/ characteristics. If the Individual or the Organization
possessing Leadership characteristics tend to Overcome Competition from Others without
much resistance and with much ease or try to rule out competition from others and subject
them to their own Authority/Rule/Mercy then they are said to possess Domination
tendencies/characteristics. Here for Example we can say that it is Good to be Competitive

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Like a Tiger because of its Competitiveness in getting its share of prey, Good to be a Leader
like a Lion because it excels in Competition among the Wild Cats, Good to be in Domination
like a Shark because of its Domination in its area which is the Seas. In the case of a Tree it
is only competitive in Growth towards lights and towards source of water. Likewise, in the
case of an IT Industry, for example, Microsoft Windows, Apple Mac, Linux and UNIX are the
main competitors for the Desktop Operating System, while here Microsoft is having the
majority of the Market Share and can rightly be considered as a Leader in the Desktop
Operating System Market. For another example, Let us consider an example of various
Sport Events, Here if Individuals or Group participate in an Event, say like Running Race and
try to win the Race then they can be considered as competitors and if an individual who won
a Race Event also wins in other Race Events, then that Individual can be considered as
Leading those Race Events or as a Leader of those Race Events. Similarly if an Individual or
a Team or a Particular Participating Country wins in majority of the Sport Events of a Year,
then we can consider that Individual or that Team or that Country has dominated the Sport
Events for that Year. Similarly in the case of IT Industry, any major IT Player/ Industry who
holds a major share in a market for a particular Product or particular Service can be
considered to be dominating in that area. Thus Competitiveness is like the key to
Achieve Success in Growth.

3.5. Undergoing Specialization/ Selecting Niche Areas
Specialization means learning and developing Skill in certain Type of Work or a particular
Field or Subject in a Branch of Science or Engineering. It can also be regarded as carrying
out Tasks of Specifically Assigned or Developed Functionality. While Niche Areas are very
Special Areas or Segment in Specific Field of work which are difficult to undertake by
Ordinary means and are high in Demand. For Example in case of Trees, certain Trees have
Specialization in the form of Prop Roots, which grow from the Branches towards the Earth
and function as to provide Support and Nourishment and in some other Special cases the
Roots have ability to store food and some have ability to initiate Growth on their own.
Likewise in the case of IT Industry, Specialization exists in the areas like Security,
Intelligence Mapping, Data Mining, Embedded Systems, Real-time Operations, Touch Screen
Technologies and Visual Programming and so on. Specialization is the Key to explore
Specific Areas of Growth.

3.6. Improving Talent/ Skill
Talent is the Special Ability or Potential or Flair to perform particular Tasks successfully. For
Example a person can possess natural Talent in Singing or Painting, etc. Likewise persons
can have Talent in Development, Software Testing and Design and so on. Skill is said to be
developed when the ways of performing a Task are studied and the Task is accomplished in
a continuous improvement process. A Person who is studying or Learning the ways of doing
a Job or Task is known as a Novice. If the Novice improves his or her Skill based on
Experience and develops Accuracy in Performing Tasks correctly then that person is said to
be a Professional. If a Professional improves his or her Skill to a Greater extent and is
capable of performing the Tasks right at the First Time itself, then that Professional can be
considered to be an Expert. For Example in the case of a Tree, the Leaves posses the Talent
in performing Photosynthesis, the Roots possess the Skill to find out the Sources and Area
of water and grow towards them. Likewise in the case of an IT Industry, Skill is available in
the form of Programming, Testing, Networking and Administration and so on. Thus Talent/
Skill are like the key to make Progress Work towards Growth.

3.7. Assets
Assets are items with economic value and which can be converted to Cash. Assets include
Cash, Cash Equivalents, Short Term Investments, Amount Receivables, Prepaid Expenses,

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Inventory, Investments, Fixed Assets, Tangible Assets and Intangible Assets. For Example
in the case of a Tree its Assets are its Roots, Trunk, Branches, Twigs and Leaves. Likewise
in the case of an IT Industry the Assets are Cash in Hand, Capital, Investments, Knowledge,
Clients, Infrastructure, Computers, Laptops, Hardware, Software, Patents, Vehicles etc.
Possessing Appropriate Assets is like having Key to the Foundation and Support for
Growth.

3.8. Resources
Anything which meets the Requirement of a Job or Task or towards Growth itself can be
considered as a Resource. Resources may be available in Limited Quantity meaning that
when they are exhausted they might no longer be available until they are replenished. For
example consider a Growth of a Tree; it requires Fertile Soil, Water, Oxygen and Sun Light
as Resources. Likewise for an IT Industry it requires Skilled People, Cash, Plans, Work,
Electricity, Work Space, Software, Hardware, and Work Environment as Resources. But in
most of the cases only People are considered as Resources and they are referred to as
Human Resources. Possessing Adequate Resources means like having a Key to the
Utilities for Successful Growth.

3.9. Technology
Technology is an Outcome which arises when Specific Science Principle is put into Practice.
The Outcome can be a Technique or a Tool which can help or complete a Specific Task. The
Task of applying an Innovation or Engineering a specific Science Principle to develop an
Application or Tool is known as Technology Creation or Technology Development. For
Example Grass, Plants and Trees possess Chlorophyll which is like a Tool/ Technology
participating in Photosynthesis for Food Production. Similarly roots possess Capillary
Technology which acts as a Tool to absorb water from the Earth. In case of a Generic
Industry Technology is like a Tool which is useful for performing the Tasks and improving
Productivity. Industries can have primitive or moderate Technology or Advanced Technology
but still the ones with primitive or moderate can survive but may find it difficult to Compete
and Sustain Growth. Industries with Advanced Technologies will be able to Compete and
also Sustain Growth at a Faster Rate. In the case of an IT Industry, for example in the
software segment it can use programming languages like C++, Java, C# etc., Architecture
like Client Server, SOA, Cloud Computing, Operating Systems like Windows, Unix, Linux,
AIX, Mainframe, Embedded OS, Real Time OS, etc., and Databases like Oracle 11g, MS-SQL
2008, MySQL, PostGreSQL, Derby, etc., as Technology for developing Products/ Applications
or for rendering its services towards Software Design, Development, Testing and other
Allied Areas. Possessing Appropriate Technology means like having a Key to the Muscles
for Growth.

3.10. Quality
Quality is like a Perception in that it means that it may differ from one Person to another
Person and also can be based on a mutually accepted standard. It can be said to satisfy
Factors like: Ease of Use, Appealing Look, Stability, Consistency in Performance, Meets user
Requirements etc. For Example in the case of a Tree its Quality can be viewed based on
Factors of its Growth like: its Type, Trunk Size and Strength, its Greenery, its Height, its
Branches, its Roots etc. Other than this Quality of a Tree can also be determined by the
Quality of its Fruit and Seed. Here these Factors of Quality for Growth depend on the
Genetics Material in the Seed Kernel. If the genetics are damaged or not proper or if the
Resources are not properly available, then Seed may not germinate or may have a stunted
or abnormal growth. Likewise in the case of an IT Industry the Quality can be determined
by the Factors of its Growth like: Quality of its Infrastructure, Availability and Level of
Skilled Resources, Quality of its Processes and Practices, Quality of the Product, Quality of it

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Services. Considering these we can say that Quality of its Infrastructure, Skilled Resources,
Processes, Practices, Product and Services will determine the Quality of Growth in the
Industry. Here the Quality of Resources, Processes, Practices, Products and Services are
very crucial. The Quality of the Resources can be improved by means of Training, imparting
education in areas of work demanding high level of skill sets. The Quality of the Processes
can be improved based on the analysis of outcome when the process is used, feedback and
Implementation of the Audit Recommendations. The Quality of the Practices can be
improved based on its review. The Quality of Product and Services can be improved by
Quality Control (Verification Techniques) and Quality Assurance (Validation Techniques).
Quality is like a cultivation process and improved Quality will be like a Key to Promote
Growth.

3.11. Brand, Brand Image & Marketing
Brand is like an Identity. Brand Image is like a view or opinion as perceived by others. For
example an Image of a Tree may appear as Tall, Strong, Lush Green, providing Shelter, Act
as a Carbon Sink, Provide Oxygen, Fruit yielding etc. People, Birds and Animals will view
that their association with the Tree as more beneficial and may Like, Trust and Rely on it
because of its contribution to the Ecological balance and Environment like Shelter, Life
Support in the form of Oxygen, Fruit bearing abilities. Likewise in the case of an IT Industry
Brand Image helps to gain Popularity, win Trust among its clients and will be helpful for
Marketing. Marketing is an Action by which Industries render the sales of their Product and
Services and earn Revenue. For Example in the case of a Tree, the Roots are similar to
Marketing, in that they draw resources like waters, minerals etc, as required for its growth.
Similarly, in the case of an IT Industry, Marketing promotes Brand Image through
Advertisement, Client Interactions, identifies and pulls the Sources of Opportunities and
Revenue, undertakes Sales and initiates Work Engagements. In the overall Brand, Brand
Image & Marketing are like the Key to Pull Appropriate Sources for Growth.

3.12. Opportunities
Opportunities are like circumstances which are in favour. It can be like the Natural
Environment or Climate or Seasons, Space for Propagation with adequate Resources. On the
contrary Unfavourable circumstances will lead to lack of Opportunity. For example in the
case of a Tree, it can have opportunities of Nature like Open Space, Seasons, Weather,
Climate, Environment, and to grow by the source of light, grow its Branches, its Twigs, its
Leaves, its roots in various possible directions and bear fruits and propagate its seeds.
Likewise, in the case of an IT Industry it can have its Opportunities, in various areas like
Improving its Infrastructure, Product/ Application Development using C++, Java, VC++,
C#, VB etc, providing Services like Source Code Development, Technical Solutions,
Designing Architecture, Testing, Improving Quality, including that of Market Segments like
Service Marketing, Product Marketing, Stock Trading, Work in the areas of Domains like
Banking, Insurance, Telecom, etc,. When the Opportunities are handled properly, they yield
Fruits of the effort/work in the form Projects, Revenue, etc. The Opportunities are like the
Key to the Requirements for Propagating Growth.

3.13. Revenue
Revenue is the Income gained by selling Products/ Services. For Example in the case of
Trees they Trade in Carbon Dioxide, synthesize Sugar using Carbon Dioxide, Chlorophyll,
Sunlight and releases Oxygen. Here the Sugar is the Revenue for the Tree. Likewise in the
case of an IT Industry it Trades in the Opportunities which are source for the work, or the
work by itself, Deliver Products or Services or both synthesized using the Resources, Assets
and earn Cash for it. Here Cash is the Revenue for the IT Industry. Revenue is like a Key
to the Life for Growth.

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3.14. Communication
Communication is a means of exchanging information or data. For Example in the case of a
tree the communication takes place in the form of transportation of food, minerals, water,
oxygen, ion exchange, etc. This happens between the Tree leaves, its twigs, its branches
and roots. Likewise in the case of an IT Industry the communication happens between its
Staffs, Management, Executives and its Client etc. The communication should be Reliable,
Significant and Strong and it is like a Key to the Reliable Input for Growth.

3.15. Management
Management are the means of controlling the Utilization of Resources, Assets which are
grouped into Groups or Teams in terms of some Hierarchy. For Example in the case of a
Tree the Trunk manages the Roots, Branches. The Branches in turn manages the Twigs,
which in turn manages the Leaves. Here, in this case, we can consider this type of
Management to be hierarchically similar to a Pyramid Form. Likewise in the case of an IT
Industry there are the Board of Directors and the CEO who mange the Top/ Executive
Management and who in turn manage the Branches/ Delivery Units and the Other Senior
Managers. The Senior Managers in turn manage the Middle Managers who again in turn
manage the Large Groups. These Large Groups consists of several Teams which are in turn
managed by the Team Leads. The Management is essential for taking crucial decisions that
affect the Growth and can considered as the Key to Leadership and Control for Growth.

4. Steps Towards Growth:

4.1. Value Proposition
Value needs to be proposed for Growth by determining the ratio of the Growth Benefits to
the Cost for the Growth. This Value Proposition for the Growth will help to determine
whether the Growth till certain stage or beyond it will be beneficial or not. If the Benefits
outweigh the Cost then the Growth can be progressed and if the Costs outweigh the Benefit
then the Growth will have to be stopped and saturated at that particular stage.

4.2. Determining Profit & Loss
Profit & Loss needs to be determined for the proposed Growth by simulating a Financial
Statement for the Industry indicating on how much Revenue can be expected, what will be
the Costs and Expenses and how the Revenue will be transformed into Net Income after
deducting the Cost and Expenses. If there are proposed Profit then the Growth should be
initiated else if Loss is foreseen then the Growth should not be initiated.

4.3. Proposed Return of Investment
Proposed Return of Investment (ROI) is calculated as the difference between the Incomes to
be gained to the Investment to be made. The proposed percentage Return of Investment is
calculated as the difference between the Incomes to be gained to the Investment to be
made, divided by the Investment to be made. The Better the ROI, Better will be the
prospects of the Growth.

4.4. Analysis of Vulnerabilities and Risks
As an Industry continues to Grow, it will be prone to develop Vulnerabilities and may get
exposed to higher Risks. For Example the Vulnerabilities can include Diminished Capital,
Depreciation of Assets, and Low Stock Values and so on. On the other hand the Risks can
include Reduced or Loss of Opportunities, Loss of Revenue, High Wage Demands, and High
Attrition and so on. Here the Vulnerabilities are an outcome of Weakness and are caused by

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internal Factors and they can be overcome, while the Risks are an outcome of
Vulnerabilities, Known Factors and Unknown Factors which can be either internal or external
or both and the Risks can only be minimized. A Study/ Analysis of these Vulnerabilities and
the Risks should be undertaken so as to determine their Impact on the Growth and ways to
overcome or minimize them. This will be crucial in deciding on the progress of Growth.

4.5. Analysis of Strengths, Weakness, Opportunities and Threats
Strengths, Weakness, Opportunities and Threats are the Forces that affect the Growth.
Strengths can include Capital Investment, Intellectual Capital, Resources, Assets,
Technology, Skills, Competency, Confidence, Willpower and Motivation. Strengths should be
analysed to determine whether they meet the potential for the Growth or not. The more is
the Strength the more will be the Potential for the Growth and otherwise the less is the
Strength the less will be the Potential for the Growth. On the contrary Weakness is the
Opposite of Strength. It can include Diminished/Less/Inadequate Capital, Lack of
knowledge, Lack of Skilled Resources, Inappropriate/ Highly Unfit/ Highly Depreciated
Assets, Out Dated/ Phased Out/ Unfit Technology, Incompetency, Distrust, Lack of
Confidence, Lack of Willpower. The Weakness should be analysed to determine whether
they outweigh the Strengths or not. When the Weakness is more than the Strength it is
better not progress with the Growth. When considering Opportunities, they can include
Markets, Domains, Stocks and Technology. The Opportunities should be analysed to
determine the circumstances favourable for Growth. If the circumstances are favourable
then it will aid the Growth and if they are unfavourable then it will block the Growth. In the
case of Threats, they are like external Forces and can include Rivalry, New Entrants,
Alternatives, Change in Technology, Government Policies, Socio Economic and Political
Factors, Natural Calamities and Disasters, etc. The Threats should be analysed so as to
determine their Nature and Impact on Growth. If the Threats are severe they will affect the
Opportunities to a greater extent and the Revenue will reduce. To reduce the impact of the
Threats, the Strength will have to be increased and may have to wait till the Opportunity
improves. If the Threats are mild then increasing the Strength alone might be sufficient.

4.6. Areas for Growth
Areas for Growth of an IT Industry in Software side can consist of areas like System
Software Development, Application Software Development, Embedded Systems, Operating
Systems Development, Product Software Development, Software Testing, Database
Development, Intelligence Mapping, Data Mining, Performance Engineering, Process
Engineering, Service Oriented Architecture, Touch Screen Technologies, Visual
Programming, DNA Computing, Artificial Intelligence, Avionics, Cloud Computing,
ecommerce, Electronic-Security, Network Programming, Neural Networks, Web
Programming, Communication Systems, Mobile Telephony, Biometrics, Operational Support
System, Decision Support System, etc, and for Domains like Banking, Insurance,
Investments, Law, Transportation, Shipping, Logistics, Petroleum Industry, Defence,
Aerospace, Space Research, Healthcare, Sanitation, Water Works, Public Administration,
Telecom, Media, Radio, Television, Manufacturing, Automobile, etc, and for communities like
Open source and Freeware, etc and for Setting up the Centre of Excellence in Areas of
Coding, Testing, etc.

5. Directions for Growth:

5.1. Incremental Growth (Model)

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Figure 01 Incremental Growth

In the above Figure 01 the Incremental Growth varies (increases or decreases) for specific
variations in the strength, the Opportunity and the Revenue. The Growth navigates across
various points in the form of a Logistic Sigmoid Curve. This can be in the form of various
ups and down (Crests and Troughs) in the graph for a spread of certain specific span. The
Revenue from Growth may fluctuate and it may increase or decrease at certain points
depending on the Opportunity and it may also remain constant for certain points where the
Strength and the Opportunity are Constant. The Revenue adds up for each growth points as
small or large increments. For Example the Grass, Creepers, Twines, excluding other trees
with exception of trees like the Coconut Tree, Palm Tree etc, can be considered as Better
examples of Incremental Growth. Likewise in the case of an IT Industry, the Industries with
small Capital, Restricted Specialisation, Less Resources, Less Opportunities, and Less
Revenue follow Incremental Growth.

5.2. Cumulative Growth (Model)

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Figure 02 Cumulative Growth

In the above Figure 02 Cumulative Growth, as the Strength (eg. Strength 01) and the
Opportunity of Growth (eg. Growth 01) increases, upto a certain point where the Strength
will be intersecting the Growth for developing a particular product or rendering a service
offered for a particular Opportunity like specific domain, market etc. At this intersection the
Opportunity would have reached a limit and the Growth will have to be saturated upto that
point. The Area of Growth will be between the Strength Curve and the Growth Curve. The
Revenue from this Growth in complete or some portion of it along with additional Cash can
be used to start another Growth for another Product or Service offered for another
Opportunity, in parrallel or as a new one. Here the Growth (eg. Let us say like Growth 02)
can be larger than the previous Growth and will encompass/ contain it. Like this we can
contain the Growth, till the maximum Growth (eg. Let us say like Growth 05) upto the limit
of the maximum Opportunity or till its saturation is reached. The Growth will have to be
limited upto the maximum limit of the Opportunity or else trying to Grow further may result
in loss. Like this the Growth will occur for various Opportunities and will grow outwards like
a tree encompassing other inner Growths. Here the Strength of the other Growth can be
used as the Strength addup for another Growth. By this way the Strength from different
Growth can be grouped and developed further and can be used to Train other Resources to
gain additional Strength, work together with other Teams and gain the Strength in other
Opportunity Areas of Work. For Example in General a Tree has a Cumulative Growth Model.
Here the Growth progresses Outwards towards the source of Light in many directions with
each addition of the Branches, the Twigs, the Leaves, Increase in the Thickness of the Bark,
the Trunk and the Propogation of the root towards the source of Water, Minerals etc.

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Likewise Strong IT Industries also Grow Cumulatively by increasing their Strength interms
of their increase in Capital, Assets, Infrastructure, Spread across Geography, Resources,
Propogate towards existing, new Opportunities like Markets, Technology and increase in
Revenue.

5.3. Alignment
Alignment is a process by which Adjustment or Orientation of certain Growth Areas takes
place. Alignment can be in the form of Horizontal and Vertical Alignment. The Horizontal
Alignment provides increase/expansion/spread/widening in Shape, Strength to Bear, Hold,
Distribute and Balance the weight, while the Vertical Alignment provides Growth. For
example in the case of a Tree it has both the Horizontal and the Vertical Alignment. The
Vertical Alignment is in the form of growth towards the Source of light is in the form of
Trunk, Branches, Twigs, Leaves and another towards the earth, along with the Gravity but
against the source of light, in the form of Roots growing towards the source of water,
minerals, etc. The Horizontal Alignment is in the form of spread of its Branches, Leaves,
Roots and the expansion/ increase in width of its Trunk, Branches and Roots, etc, in the
Horizontal Direction. Likewise in the case of an IT Industry the Horizontal Alignment is in the
form of Domains like Banking, Insurance, Embedded Systems, VLSI, Aerospace, Telecom,
Networking, ecommerce, CRM, HRMS, etc. On the Other Vertical Alignment is in the Form of
Capital, Infrastructure, Skill, Resources, Technology, Development, Testing, Products/
Applications, Services, Support and Maintenance, etc. These Horizontal and Vertical
Alignments of the IT Industry grow along with and towards the direction of Opportunities.
Other than this, there are other similar Horizontal and Vertical Alignments for the IT
Industry like Brand, Brand Image and Marketing which are like Roots and grow along with
and towards the direction of Marketing.

5.4. Focused
Focused Growth happens when there is a concentrated uniform Alignment. For Example a
Tree can have uniform Horizontal Alignment and can have an increasing Vertical Alignment.
The Best Example for this type is the Coconut Tree, the Palm Tree and the Plantain Tree,
which have Focused Growth in only one direction. Likewise in the case of an IT Industry
Focussed Growth takes place when there is only one or more concentrated uniform
Horizontal Alignment, say like Banking alone or Banking, Insurance, Telecom and Have one
or more Vertical Alignments like Testing alone or Development and Testing Alone and so on.

5.5. Diversified
Diversified Growth means the Growth in different Areas or Segment. The Diversified Growth
happens when different Areas are focused for the Growth. For Example in the case of Trees
there are different varieties of trees of same kind, different kind, with diversified branches,
different varieties of Fruits and so on. The Best Example for a different variety but same
kind is a Mango tree and for different variety and different kind can be a Mango, Apple tree
and including other trees. Likewise in the case of an IT Industry there are different varieties
of Products/ Application/ Services of same Opportunity, different Opportunity, same
Technology, different Technology, same Domain and different Domain and so on. Also the
Diversified Growth can also include IT and Non IT industries. The purpose of the Diversified
Growth is to Increase the Revenue and support for other Branch or Child or Sibling units,
when there is a Loss or Lack of Opportunity or Diminished Cash and so on, and so as to
make it to recover towards its normalcy.

5.6. Uniqueness and Differentiation
Uniqueness means being of only one of its Type and Differentiation means having
distinguishing features as compared to the others of its Type. Uniqueness in case of a Tree

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Vinay Srinivasan

is that it can be of a particular Type/ Variety and its differentiating features are like its Type,
Height, Weight, Span, Leafs, Strength, Flowers, Fruits, and Seeds. Uniqueness in case of IT
Industry is its Type like that of a Software Product Industry or as a Software Services
Industry, etc. Its differentiator are the variety of its products offered by the IT industry like
SAP, Siebel, Oracle DB, Windows OS, MAC OS, AIX, Unix etc., and services like Software
Development, Software Integration Testing, Software Functional Testing, Software
Performance Testing etc. Uniqueness and Differentiation are like Facts which are helpful to
distinguish one Type of Nature and identify various Traits, Tendencies, and Aspects of Work.

5.7. Internal Growth
Internal Growth means the Growth in Strength like Skill, Technology and Quality, etc., as
increased for each of its Branch, its Projects and its Resources. For Example, it is like
internally increasing the Growth (Shape and Strength) of a Tree in term of its Roots, Trunk,
Branches, Twigs and Leaves. In case of IT industry Internal Growth happens in terms of
developing the Skills of the IT Resources, Increasing the Strength of available Resources by
hiring new Resources and Training them, Improving the Financial Positions by increasing the
Capital, Pooling the Revenue/ Income towards Capital, Strengthening the Domain level
expertise, Improving Marketing Skills, Improving Quality Continuously, Conducting frequent
Audits to verify them and achieving high rate of Customer Satisfaction, Conducting frequent
Seminars, Workshops.

5.8. Restructuring
Restructuring is the Act/ Process of Re-Organising the structures so as to prevent a collapse
of the structure or to minimize Damage or to Prevent Loss or to Recover from Loss or to
Recover from Unfavourable Circumstances and to Promote Re-Growth. For example in case
of a Tree, when the Opportunities like Environment, Weather, Climate, Seasons and Space
for Growth, lack of Resources changes into Unfavourable circumstances, the Tree will have
to Restructure itself. Under such Unfavourable Circumstances, the tree has to wither away
its leaves, drop off its twigs, break off its Branches, conserve its Roots, increase the
thickness of the Bark covering its Trunk and Preserve its Trunk. When the Circumstances
become Favourable it will start developing new Nodes, develop nodes into twigs, develop
the new twigs into branches, develop twigs in the existing Branches, develop new leafs,
nourish and orient its Roots and continue to Grow. Restructuring can be considered as a
part of a Cyclic Process. The Best Example for this can be thought of is Deciduous Trees.
Likewise in case of IT Industry when situations like Diminished Capital, lack of Investments,
Lack of Skilled Resources, Lack of Appropriate Technology or Phased-Out Technology, Lack
of Opportunities, Lack of Revenue, Natural Calamity, Disaster may cause Unfavourable
Circumstances and the Industry will have to undergo Restructure. During the Restructure
the Ratio of Resources like Management Staff, Skilled Resources, Production/ Service Staff,
Marketing Staff, Administration and Support Staffs need to be determined first. Next the
Important Resources needs to be filtered out and the Ratio needs to be worked out again
along with the Restructuring of the Salary, the need and necessity to maintain minimum
Resources. All of this depend on the Strength of the Capital; Cash in Hand, Residual Cash,
Investments, Stocks, Quality of Products/ Services, Technology, Infrastructure,
Opportunities, Market Potential, Scope to Market, Revenue for Growth, Forecasts for Profit,
Loss and Growth. After this the Unfit Resources will have to be withered away and Filtered
out Resources needs to be Trained and Sharpened so that they can work better when the
Circumstances Improve. When the Circumstances are going to be Worst, decision will have
to be taken on how to maintain the required Bare Minimum Resources, Curb New Hires,
Conduct Retrenchment and identify the needs and necessities to be implemented so that
Seed of Re-Growth can be preserved and Growth can be initiated once the Favourable
circumstances occur.

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Vinay Srinivasan

5.9. Expansion
Expansion is the process of occupying and growing in other areas of the Growth with
increasing the Strength, having more than one Alignment and initiating new Growth. For
example in case of a Tree the Expansion takes place when it grows Stronger in terms of its
Trunk Strength, Deep Rooted Roots, More wider across horizontal and taller with many
Branches, Twigs and Leaves. Here we have considered the Shape as a crucial factor for
Expansion. The other crucial factor for Expansion is to start new Growth of its own variety
and kind in other areas by dispersing or spreading its seeds. Likewise in the case of an IT
Industry the Expansion can take place when the Growth increases for a wider Horizontal
Alignment and for various Vertical Alignments. Also the Growth increases when new
Industries are started and Unlike Trees there are other possibilities of Expansion in Growth
in the form of New Acquisitions or Mergers or through the means of Partnership.

Conclusion
A Good Growth Strategy will only be successful when it is executed in Right Time, by Right
Skilled People. Further Extensive Planning is required to chart down the Strategy and
Schedule the Tasks and Activities, so as to reach out the Target and Achieve the Goal. Other
than this Adequate Strength, Right Favourable Opportunities will be necessary to implement
the Appropriate Growth Strategy and Realise the Revenue.

References:
1. Wikipedia
http://en.wikipedia.org/wiki/

By Page 14 of 14
Vinay Srinivasan

About the Author:
Vinay Srinivasan has very wide Experience in IT Industry. He holds Graduate Degree in
Electrical and Electronics Engineering, Post Graduate Degree in Computer Applications and
Post Graduate Diploma in IT Management. He is currently working as TechLead in
TechMahindra, Pune.

By Page 15 of 14
Vinay Srinivasan

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