Imt Case Journal Volum 2 No.2-Libre

VOLUME:2
IMTCJ
NUMBER : 2
JAN-JUNE 2012
IMT CASE JOURNAL

A Bi - Annual Case Journal of IMT - Nagpur
www.imtnagpur.ac.in
INSTITUTE OF MANAGEMENT TECHNOLOGY, NAGPUR
CONTENTS
EDITORIAL
SUCCESSFUL IMPLEMENTATION OF ELECTRONIC
BILL PAYMENT AND PRESENTMENT SYSTEM
A SADAD CASE STUDY
1 - 12
Mohammed A. T. Alsudairi, T. G. K. Vasista
RAISING CAPITAL IN GLOBAL MARKETS:

A CASE OF SBI
13 - 24
TRIUMPH TUTORIALS SEARCH OF

THE TRIUMPHANT STRATEGY
25 - 38
STRATEGY MAP PERSPECTIVE:

SERVICE LEADERSHIP AT DREAM LABS
39 - 48
Inder Sekhar Yadav
Nisarg Joshi, Narayan Baser, Harishchandra Singh Rathod

& Apurv Raval
Ashok K. Sar
Whatever may be the pros and cons of the case study methodology/research, IMTCJ has
always tried to publish good case studies across all the dimensions of business
management. This issue of IMTCJ publishes four good quality cases from different aspects
of business studies.
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Case study methodology often lacks academic rigor and are regarded as inferior to more
rigorous methods, where there are more specific guidelines for collecting and analyzing
data. These criticisms stress that there is a need to be very explicit about the choices one
makes and the need to justify them. One reason why case studies are criticized may be that
researchers disagree about the definition and the purpose of carrying out case studies. Case
studies have been regarded as a design (Cook and Campbell 1979), as a qualitative
methodology (Cassell and Symon 1994), as a particular data collection procedure
(Andersen 1997), and as a research strategy (Yin 1989). Furthermore, the purpose for
carrying out case studies is unclear. Some regard case studies as supplements to more
rigorous qualitative studies to be carried out in the early stage of the research process;
others claim that it can be used for multiple purposes and as a research strategy in its own
right (Gummesson 1988; Yin 1989). Given this unclear status, researchers need to be very
clear about their interpretation of the case study and the purpose of carrying out the study.
Recently, the case study based research has gained its momentum in the area of business
management. Case studies are tailor-made for exploring new processes or behaviors or
ones that are little understood (Hartley 1994). Hence, the approach is particularly useful for
responding to how and why questions about a contemporary set of events (Leonard-Barton
1990). Moreover, the researchers have argued that certain kinds of information can be
difficult or even impossible to tackle without qualitative approaches such as the case study
methodology (Sykes 1990). Gummesson (1988) argues that an important advantage of case
study methodology is the opportunity for a holistic view of the process. The detailed
observations entailed in the case study method enable us to study many different aspects,
examine them in relation to each other and view the process within its total environment.
Criteria of research, its genesis and their schemata have evolved out of historical and social
practices. Interpretation of social events is guided and constrained by the prevailing
rationality which itself reflects the dominant constellation of power. While each area of
research (science, engineering, medicine, social science and arts and humanities) has many
common features, but research in individual area has its own distinction. Although,
interdisciplinary and multi-disciplinary research approaches bear a long history and
heritage, these approaches enjoy the stage of marginal utility in the 21st century. But,
there is no way of denying a need of interdisciplinary and multidisciplinary approaches of
research. However a research manuscript/case study that is targeted to publish at the area of
social science focusing on business management world should be encouraged to follow
pattern, style, wording, tautology, research design and language that are universal for social
science.
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I duly acknowledge the support and cooperation received from IMT-Nagpur management.
Sincere thanks to all the editorial board members for their extended support in timely
reviewing the manuscripts. I greatly concede the scholarly contribution of all contributing
authors. I also acknowledge the encouragement received from the Director, Dean
(Academics), Chairperson (Research & Development) of IMT-Nagpur. Last but not the
least; I acknowledge the interest and support of all the readers of IMTCJ.
Dr. R .K. Jena

(Editor)
The final case, STRATEGY MAP PERSPECTIVE: SERVICE LEADERSHIP AT

DREAM LABS, written by Ashok Sar, starts with a brief overview on the concept of
differentiation advantage, the strategic logic thereof and how a strategist in a typical firm
goes ahead with the strategy formulation and execution thereof. Several illustrations
covered in the case study would help the instructor to explain the concept of differentiation
advantage. Further, during the case analysis, students may be asked to come up with their
examples of differentiation strategy. This discussion should conclude with highlights on
value creation and capture, customers willingness to pay (WTP), suppliers opportunity
cost (SOC); and the trade off between WTP & SOC.
The principal subject matter of the third case, RAISING CAPITAL IN GLOBAL
MARKETS: A CASE OF SBI by Inder Shekhar Yadav is to analyze the cost of
issuing/raising capital globally. Secondary issues examined include assessing foreign
exchange risk, designing appropriate hedging strategy and computing the conditional cost
of a global debt issue in light of appreciation and depreciation of domestic currency.
The second case, SUCCESSFUL IMPLEMENTATION OF ELECTRONIC BILL

PAYMENT AND PRESENTMENT SYSTEM A SADAD CASE STUDY by
Mohammed A. T. Alsudairi & T. G. K. Vasista provides to the students a comprehensive
understanding as well as allows them to think critically from several perspectives at
different abstraction levels. The case tries to give access to underlying economic and ebusiness models at the same time giving the students an opportunity to elicit some more
perspectives such as electronic payment systems, electronic security and other underlying
e-commerce and e-business models.
The first case, TRIUMPH TUTORIALS SEARCH OF THE TRIUMPHANT

STRATEGY by Nisarg Joshi, Narayan Baser, Harishchandra Singh Rathod & Apurv
Raval narrates the real life story of a business venture in Ahmedabad city of the state of
Gujarat. The case focuses on the strategy adopted by the managers of the institute & its
repercussions then after. The case is meant for the marketing class of post graduate students
with emphasis on Market Segmentation and Positioning strategy. It also discusses the
implications of business diversification.
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ISSN : 2229 - 6743
SUCCESSFUL IMPLEMENTATION OF ELECTRONIC BILL

PAYMENT AND PRESENTMENT SYSTEM
A SADAD CASE STUDY
MOHAMMED A. T. ALSUDAIRI1, T. G. K. VASISTA2
ABSTRACT
Businesses of all sizes and industries need to evaluate their current
practices and have to look for ways to increase their bottom line
profits in terms of Business Process Re-engineering (BPR) by
introducing electronic services to reduce the capital expenditure and
operating costs. Billing as a core of the retailing business can change
its business process with the advent of latest practices of ICT to
compete in the business market space by focusing on delayed and
error prone processes to increase the customer satisfaction. Because
the ability to accurately produce bills, statements and confirmation
notices, and collect payments expeditiously is fundamental to
corporate success (IBM, 2000). A highly automated, rapidly
deployable web-based customer self-service solution can
significantly and quantifiably reduce the cost of customer service
operations while giving customers faster access to the information
they require. A study of 200 companies in USA that were used webbased customer self-service has revealed that there are savings of
$500,000 per quarter (Vivek, Infosys).
Electronic Bill Presentment and Payment (EBPP) speeds the
Accounts Receivable process by getting invoices to your customers
faster and by enabling them to pay the invoice and resolve disputes
electronically. EBPP can also strengthen your competitive position in
the marketplace by building closer relationships with your customers
and delivering interactive statement inserts electronically (Anne
Terrell Thomson, CCM).
Saudi Arabia Monetary Agency (SAMA) is an economy agent of
Kingdom of Saudi Arabia. SADAD Payment System (SADAD) was
established by the Saudi Arabian Monetary Agency (SAMA) to be the
national Electronic Bill Presentment and Payment (EBPP) service
provider for the Kingdom of Saudi Arabia (KSA). SADAD is an
electronic platform to streamline the bill payment process. This
electronic platform will act as an intermediary between billers and
banks for performing trusted payment process that uses leading edge
technology to provide efficient and effective customer service to the
people of the Kingdom of Saudi Arabia (SADAD Web site). SADAD
case study helps in understanding the innovative SADAD system
IMT CASE JOURNAL, JAN - JUNE 2012
2
Successful Implementation of Electronic Bill Payment and Presentment System - A Sadad Case Study
adopted by Saudi Arabian Monetary Agency to fix failing and

fragmented cash-based bill payment and collection system in Saudi
Arabia. Prior to SADAD, the payment and collection situation was
fragmented and silo based. The situation was agonizing to
government, consumers and private sectors firms alike. Authorities
estimated about 10-15% loss of revenue annually due to human
errors, fraud and delays associated with the manual, cash-based
system.
Electronic Service Quality plays an integral role in all aspects of
management including in Electronic Payment Systems too.
Delivering high quality services becomes crucial goal of a manager.
The purpose of a quality management in the business organization is
to ensure that all activities are successfully performed and to report
those activities for which there is still room for improvement based on
a scientific base line or a bench mark created for the organizational
servicing objects. Since user formulates requirements and is the
beneficiary of the services, the degrees in which the final services are
met to the user requirements are of great concern and affect the
quality of services.
Evaluation is a qualitative process to analyze the degree in which
requirements have been fulfilled. Measurement is a quantitative
process where quality metrics are being defined and calculated to
enable quantification in the quality management process (Batagan,
Pocovnicu, Capisizu, 2009).
So the purpose of designing this case study has been targeted to focus
on electronic service quality management under enterprise
environment while considering managerial perspectives relevant to
SADAD EBPP and customer relationship and value aspects.
Keywords : SAMA, SADAD, EPBB, UNPAN, BPR
Introduction
It all began in 2002 by SADAD when it wanted to reach a viable organization with a
feasible business model using a systematic method of conducting market research that
indicated strong acceptance of the SADAD concept and provide valuable insights into
market. Market research indicated that there are consumer complaints on time wastage and
overall inconvenience on bill payment. The analysis by XEROXs Palo Alto Research
Centre - PARC (2002) indicated that the acceptance rate of an electronic payment service
(as long as key requirements are met) as 70%. SADAD business model was developed to
provide a win/win proposition to both bankers and billers where banks are cornerstones in
determining transaction fee. This requires SADAD to follow a component based
development strategy with such components like pricing engine, compensation engine and
financial engine etc. The biller transaction fee is calculated by combining up to five pricing
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elements viz. Bank cost, CapEx, OpEx Reduction Premium SADAD fee, Service
premium, profile Adjustment Factor and SADAD Margin. Similarly up to four pricing
elements are combined to constitute Bank Compensation viz. Bank Cost (+), CapEx &
OpEx Reduction premium (-), SADAD fee (-) and Service Premium (-). Overall the net
effect of SADAD will be a reduction in the structural costs of billing processing in terms of
CapEx and OpEx savings to Banks and Billers due to SADAD. SADAD EBPP architecture
was designed to be very flexible in adding new modules so that it can provide more
services. The growth of SADAD can be seen from three dimensions viz. Market growth,
customer growth and portfolio growth (UNPAN). See Exhibit 1 & 2 .
About SADAD
SADAD Payment System (SADAD) was established by the Saudi Arabian Monetary
Agency (SAMA) to be the national Electronic Bill Presentment and Payment (EBPP)
service provider for the Kingdom of Saudi Arabia (KSA). The core mandate for SADAD is
to facilitate and streamline bill payment transactions of end consumers through all channels
of the Kingdoms Banks. SADAD was launched on October 3rd, 2004 (SADAD Web site).
It is the winner of the United Nations Public Service Award during the year 2008. SADAD
Payment System won the first place in GCC E-Government Award in the field of EEconomy, during the First Gulf e-Government Conference which began on 21, December
2009 in Muscat, Oman (Global Arab Network, 2009).
About SAMA
Saudi Arabia Monetary Agency (SAMA) is an economy agent of Kingdom of Saudi
Arabia. It performs economic governance functions such as issuing national currency, the
Saudi Riyal; Acting like a reserve bank of Kingdom of Saudi Arabia; Supervising
commercial banks; Managing Kingdoms foreign exchange reserves; Conducting
monetary policy for promoting price and exchange rate stability; Promoting the growth and
ensuring the soundness of the financial system.
SAMA has been playing a crucial role in the consolidation and development of the Saudi
Financial System. At the time of its establishment, the Kingdom did not have a monetary
system exclusively of its own. SAMAs preoccupation was to contain inflationary
pressures in the booming economy, expansion of the banking system and manage the
massive foreign exchange reserves. From mid 1980s, SAMAs priorities have been to
introduce financial market reforms. Over the years, with the growth of the economy and
expansion of the financial system, SAMAs responsibilities have increased several folds
(SAMA Web Site).
What Prompted SAMA to go for SADAD?
Pre-SADAD economics of bill payment placed an unduly large burden on banks, it was
inefficient and slow. Banks also recovered a small portion of the cost through keeping the
collected money for varying periods of 7-30 days after the bill was paid.
What is the real work done in the case?
The real work done in this case study is to identify a case study for Graduate Management
students, provide the description of the case, conduct research and literature study relevant
to the case, its underlying theories and models related to economics and business studies
broadly and electronics service quality and eCRM in particular. Though studies on
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Electronic Payment Systems, Electronic Commerce and Electronic Security can also be
brought into the picture of the case study, our scope of the study is limited to elicit areas of
electronic service quality and customer relationship management. The data source is
primarily the web sites of SADAD and SAMA organizations; journals like Emerald,
Science Direct; UNPAN reports; conference papers, presentations and books listed in the
reference section have made a great contribution. Once the purpose of the organization
under consideration for the case study is understood, the knowledge gathering has started
towards indentifying and extracting the knowledge relevant to it, its underlying theories
and models. Case preparation guidelines and templates from IMT Nagpur, India are found
very useful for organizing the Case Knowledge. Most of the data has been drawn from the
UNPAN reports and SADAD and SAMA web sites.
What are the past related works?
Earlier work on SADAD case study is done by Harvard's research and consulting team,
which is headed by Dr. Khalid O. Al-Yahya, Fellow and Advisor at Harvard University and
Assistant Professor of Comparative Management and Strategic Human Resources and
Organizational Development at Arizona State University and Dr. Stephen Goldsmith,
Professor of Government and the Director of the Innovations in American Government
Program (SADAD web site).
This case is used for experts and students at Harvard Universitys Kennedy School of
Government and Business School and other educational institutions as well as for
practitioners participating in Executive Sessions, and most specifically will be used for
international executive teaching in programs held worldwide.
The purpose of the study is to share and disseminate knowledge about bill payment
problems in Saudi Arabia and the innovative approaches used to affect them. The case
study discusses the problems faced by the Saudi Arabian Monetary Agency (SAMA) and
the rationale for its initiative to tackle the electronic bill payment problems in Saudi Arabia.
This include the origins of bill payment problems, burdens on banks and governmental and
private sector billers and citizens, and SADAD effects on economy and overall economic
and institutional modernization.
Earlier work by Al Yahya, Khalid on SADAD case study is done from the perspective view
government-led innovation in service delivery in Saudi Arabia. The case describes the
process of establishing SADAD, the difficulties associated with its implementation
especially convincing government and private sector billers to change their old ways of
doing business, SADADs impact on streamlining bill payment transactions, and the
reasons for the government decision to lead this reform effort.
What improvements you see in this case relative to past works?
Though our case study matches with the abstract description of Harvard Universitys
School of Government and Business School, the purpose is targeted to focus on bringing
out the underlying economic theories, models and service quality management aspects
from the customer relation management perspective. For this purpose, four questions are
designed and directions for fetching the answers are given in the last section of this case
study. Various perspectives are brought in this connection while giving the directions.
Attempts are made to provide relevant literature especially from journals and books. Thus
it becomes a rigorous and comprehensive study to both teaching and student community
from the perspective of not only the academics but also towards conducting research that
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spans multiple disciplines such as: Managerial Economics, Service Marketing, Customer
Relationship Management, Electronic Service Quality, Information Systems, Systems
Management and Electronic Resources and Planning. It also enable management faculty to
study and bring out the various perspectives and interlink them to better realize the
comprehensive understanding of the contemporary business studies.
How SADAD works and Data Required
SADAD Payment System was built to benefit many parties like Billers and Banks, Billers
can expect to improve customer services and streamline bill collection/ reconciliation
processes. Banks on the other hand, will particularly benefit from lower integration and
transaction processing costs.
Billers
Billers can expect to improve customer services and streamline bill collection/
reconciliation processes.
SADAD will benefit billers in many ways; some of those benefits are listed below:
Cost Reduction
Lower CapEx due to reduced investments in infrastructure and software development

Lower OpEx due to fewer resources required to build, operate and support outsourced
EBPP.
Faster collection of bills, leading to lower working capital.
Single interface point no need to link separately with multiple banks.
Lower reconciliation processing costs.
Reduced disconnections due to delay in bill processing.
Reduced CSRs through fewer customers paying at Biller sites.
Revenue Generation
Improved cash availability resulting in increased interest revenue.

Potential for cross-selling and up-selling using available CSRs.
Increased ARPU due to fewer disconnections.
Potential to leverage SADAD infrastructure to sell new services.
Intangibles
Improved customer satisfaction and image.

Increased opportunity to communicate with customers.
Ability to tailor marketing messages per customer segment.
Guaranteed bill presentment independent of customer address.
Constantly updated bill status information across all channels.
Pre-notification to upload new bills to SADAD.
Flexibility to consistently apply business rules across all channels.
SADAD will benefit banks in many ways; some of those benefits are listed below:
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Cost Reduction
Lower costs due to:

i) Reduced transaction volumes at branches.
ii) Reduced processing costs per transaction.
Decreased reconciliation costs and exception handling.
Fewer biller interfaces to develop and maintain.
Fewer tellers / CSRs required handling customer payments and bill inquiries.
New costs to be partially offset through revenue sharing schemes with SADAD.
Revenue Generation
Compensation from SADAD

Opportunity to cross-sell and up-sell:
i) Using freed up tellers and CSRs.
ii) Greater concentration on high-value customers.
Potential to offer new value added services through bundling and packaging.
More attraction to potential consumers allowing them one-stop bill payment through
SADAD network.
Intangibles
Early positioning for e-Gov and e-Commerce initiatives.

Improved customer services through:
i) Increasing face-time with customers.
ii) Less congestion at branches.
Enhance image by being at the forefront of leading technology.
Bankers and Billers join SADAD by performing On-boarding activities.

In order to join SADAD, banks and billers should go through SADADs on-boarding
process, which includes eight key activities. All on-boarding activities are performed by
the Biller with on-going support from SADAD's Integration Unit (SIU):
1.
2.
3.
4.
5.
6.
7.
8.
Detailed Impact Analysis

Business Rules Assessment
Integration Planning
Integration & Development
Testing
On-boarding Migration Planning
Training
Go-Live
Linking with SADAD will enable billers to collect their payment electronically
through all the banking channels in the kingdom, which include 9,435 ATM and 1,442
Bank branch (and soon will include point of sale terminals) in addition to Phone
Banking and Online Banking offered by all Saudi banks in the kingdom. This will
enable any person to use SADAD system without pre-registration, anywhere in the
world.
Billers can use one or both prepaid services (e.g. prepaid mobile phones) and regular
postpaid payment services.
Billers can also choose between real-time and batch bill payment notification based on
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the biller business requirements.

There is no need to open bank accounts with different banks, because SADAD will
collect the money from all banks and then transfer it to the biller bank account at any
Saudi bank in one business day only.
Provide periodical reports to Billers about all activities through SADAD.
Provide On-boarding support through a dedicated integration team to billers joining
SADAD.
Provide access to SADAD Portal for biller which contains real-time data of all
transactions, and allows them to send complaints or inquiries.
Provide a helpdesk dedicated for serving Billers 24/7.
Data
A market research has been conducted on behalf of the SADAD team by Pan Arab Research
Center on a sample of 522 consumers in KSA. It showed that customers main concerns
were about time wastage, inconvenience of bill collection, bills past due and service cuts
due to delay in bill processing. See Exhibit 4, 5 & 6.
Goals of Business Case
The Goal of the Kingdom of Saudi Arabia is to provide the best possible quality services to
its residents while balancing the sub goals of:
Achieving economic goals set by SAMA (the economic and financial agent of KSA)
and
Ensuring the achievement of business goals to the B2B customers and
Providing and satisfying B2C customer goals.
Goals of Case from the Academic Perspective
To achieve comprehensive understanding on the management approach and
considerations in business environment
To orient students to adopt an enterprise approach in problem solving
To extract and formulate theoretical models and basic principles (from knowledge
economy and e-business perspective)
To work rigorously on how to finalize the scope of the problem while producing the
solution.
To learn how to focus on the problem and frame the problem statement.
Deliverables
In this section authors effort of problem statement, approach, pictorial depiction of the
business scenario for enterprise electronic service quality management and electronic
customer relation management aspects are to be delivered.
Problems and Challenges
The challenge is to explore and extract the relevant factors and their correlation to
electronic service quality under Enterprise based Electronic Service Integration and the
problem is to identify an aligning path.
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Approach
An enterprise electronic service integration approach to electronic service quality
management is considered to address the problem. This approach allows working on multi
disciplines at macro level for exhibiting the whole scenario under which the focused
problem of electronic service quality is to be addressed. These multi-disciplines form the
Key Areas to be addressed in Service Quality according to the principles of service quality
that are given in the documentation of Service Quality dealt by SEI CMM process
guidelines. Thus the Exhibit 7 brings out the Government-Agency-Business-Customer
Scenario (G2A2B2C).
Things we would do differently
We tend to follow the Gen-Spec Research Methodology (TGK Vasista, 2011), which
focuses on working towards generic trends and patterns of multi-disciplines and bringing
them on to a common platform called systems engineering and management and then
focusing on the specific problem domain at hand to deal it as a plug-in.
Thus the electronic service quality management will act as a horizontal domain
representing the generic level and electronic bill payment and presentment as the specific
vertical.
Conclusion and Scope of the future research
Though, this case study has a potential to draw inferences on multiple aspects, our efforts
are limited to the domain of bringing the underlying economic theory and underlying
enterprise approaches. However students and faculty can put efforts in brining cost models
and can propose their structural elements from the finance management perspective (Refer
to First Paragraph of Introduction section).
References
1. Al-Sudairy, Md. (2010). A multi-disciplinary profile of IS/IT outsourcing research.
Journal of Enterprise Information Management, Vol. 23, No. 2, pp215-258, Emerald
Group Publishing Ltd.
2. Al-Turki, Umar, M., Andijani AbduBasit, A., Siddiqui Atiq, W., (2006). ERP
Implementation Trends and Practices in Saudi Arabia. King Fahd University of
Petroleum & Minerals, Dhahran, Saudi Arabia
3. Anne Terrell (A.T.) Thompson, CCM. How to Prepare and Evaluate an EBPP RFI-A
Presentation, Wachovia Treasury Consulting, Atlanta, USA
4. Baldwin, Christopher. Integration Patterns Overview. Microsoft.
5. BankCardTerminals.com, Electronic Bill Presentment and Payment (EBPP): The
future of Invoicing.
6. Berry, T (1985). Management control in an area of the NCB: rationales of accounting
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Fang, Yulin and Schroeder, Andreas (2008). eCRM technologies, capabilities and
SME performance benefits. In, Pacific Asia Conference on Information Systems
(PACIS 2008).
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10. Suzhou, China,Forshey (2010). EBPP, EIP, Electronic Account Presentment: The
Financial Supply Chain. SAP AG, Germany
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The US Construction Industry, ITcon Vol. 8 (2003), pg. 15-28
16. Koch, Bruno (2006). The European E-Invoicing & Electronic Bill Presentment &
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18. Seth, N., Deshmukh, S. G. and Vrat, P. (2005), Service quality models: a review,
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on Information Systems, Long Beach California.
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Quality Research Studies, Proceedings of First International Conference on Business
Research Paradigms, MiddleSex University, Dubai, Nov 22-24, 2011.
21. Themistoleous, M. and Irani, Z. (2001). Benchmarking the benefits and barriers of
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research perspectives. Annual Reviews in Control, Elsevier Publications.
23. Vivek (2001). Business Process Exception Management Business Benefits of
Technology Led BPR with Billing as an Illustration. Infosys Technologies.
24. William, A. Estrem (2003). An evaluation framework for deploying Web Services in
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SR%2043%20Billion%20transactions%20Through%20SADAD%20
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unpan030928.pdf
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EXHIBITS
Exhibit 1 : Role of SADAD as an Intermediary
Pre-SADAD Bill Payment Network
EBPP Vision
Consumer
Consumer
Biller A
Bank A
Biller A
Biller B
Bank B
Biller B
Biller C
Bank C
Biller D
Bank D
Bank A
Bank B
SADAD
Bank N
Biller N
Source: SADAD Web site

Exhibit 2 : Functional Architecture
Customer Info
Management
Customer Facing Functions

Bill Presentment &
Formatting
Customer Alerts &

Notification
Biller Facing
Functions
Bill Information
Mgmt Functions
Business Support
Functions
Bill Gathering &

Coversion
Bill Aggreg.
Accounting
Biller Info Mgmt
Business Rules
Biller Notification
Bill Status Mgmt
Reconciliation
Help Desk
MIS
Workflow Management, Security and Encryption

Transaction Routing and Audit
Integration and Messaging Layer
Source: UNPAN
Exhibit 3 : Outline of how SADAD works
Customer is
authenticated by
the bank prior
to querying
SADAD
Banks
communicates
with SADAD
through existing
infrastructure
Billers communicate with

SADAD to upload new
bills, exchange bill status
& reconcillation reports
Branch
SADAD
Phone Banking
Biller
Customer
ATM
SADAD provides
information, update due
status accordingly and
initiate the
settlement process
Website
Bank Channels
Bank
Walk-in
Customer
Source: SADAD
Collection Center
Website
Biller Channel
Volume 2 Number 2
ISSN : 2229 - 6743

Mohammed A. T. Alsudairi1, T. G. K. Vasista
Exhibit 4 : Customer Concerns vs No. of Customer mentions

Some statistical facts & figures of SADAD
Time consuming
100
Delays/Loss in postage/
inconvenience of bill collection
Missing/overlooking payment dates
72
67
Disconnection of service due

to delays in bill processing
Inconvenient - have to go to Bank and
Billers collection centre to pay bills
63
63
handling large amounts of cash
55
Having to keep track of multiple bills
52
Overcoming mistakes while depositing

money for bill settlement
Customer treatment by Bank staff
2
0
20
40
60
80
Number of mentions,
100
Source: SADAD
Exhibit 5 : a: For the years 2003 & 2008; b: For Bill Query and Bill Payment during
2008
Channel Usage Trends as on 2008
Channel Usage Trends

Sl. No.
1.
2.
3.
4.
Channel
Web Site
Phone
ATM
Branch
2003
1%
7%
19%
73%
2008
19%
27%
42%
12%
Sl. No.
1.
2.
3.
4.
Channel Bill Query

Web Site
50%
Phone
28%
ATM
16%
Branch
6%
Bill Payment
15%
26%
47%
12%
Source: UNPAN030928
Exhibit 6 : SADAD Market Share Trends in 2007-2008
S. MonthSADAD
Volume of
Other
No. Year Market Share Channels Transactions
1. Feb-07
21%
79%
659
2. Mar-07
25%
75%
870
3. Apr-07
27%
73%
935
4. May-07
29%
71%
1037
5. Jun-07
31%
69%
1018
6. Jul-07
35%
65%
1256
7. Aug-07
43%
57%
1586
8. Sep-07
51%
49%
1963
9. Oct-07
64%
36%
2377
10 Nov-07
72%
28%
3171
11. Dec-07
79%
21%
3505
12. Jan-08
82%
18%
5319
Source: UNPAN030928
Value of Transactions
(SR,000,000)
261
382
382
436
426
580
823
1023
1200
1602
1609
2324
11
12
Volume 2 Number 2
ISSN : 2229 - 6743
Exhibit 7 : Depicting the business case : Components and Integration of Electronic

Service Quality Management
KSA
Government
SADAD
(E-Business Agent)
EBPP
E-Business
SAMA
(Economic Agent)
Banks
(Business
Firms)
Web Portal
Billers (Customers)
Author(s) Information
1 Associate Professor, College of Business Administration, King Saud University,
Riyadh, KSA, mas@ksu.edu.sa
2 Researcher, King Saud University, Riyadh, KSA
tgkvasista@gmail.com/gtatapudi@ksu.edu.sa
Volume 2 Number 2
ISSN : 2229 - 6743
RAISING CAPITAL IN GLOBAL MARKETS: A CASE OF SBI

INDER SEKHAR YADAV1
ABSTRACT
The growing linkage between domestic and external markets has

widened domestic access to international capital. As a result of which
most of the corporations borrowing from external capital market
have to either make or receive payments in foreign currencies. In this
context, the principal subject matter of the present case is to analyze
the cost of issuing/raising capital globally. Secondary issues
examined include assessing foreign exchange risk, designing
appropriate hedging strategy and computing the conditional cost of a
global debt issue in light of appreciation and depreciation of
domestic currency.
Keywords: All-in-cost, foreign exchange risk, hedging, external
commercial borrowing, international/ external capital market
This is a signature deal, despite market turbulence and volatility. In terms of size,
new investors, and number and quality of investors, we achieved our objectives
with this issue. We believe the success of this transaction will also allow Indian
issuers to more easily access the US markets.
---O. P Bhatt, Chairman, SBI
Introduction
SBI chairman, O. P Bhatt who has served SBI as one of the longest Chairman in the recent
past from June 2006-March 2011 in a statement on July 23, 2010, announced that it plans to
issue a five-year bond with a face value of US$1 billion internationally through its London
branch on July 27, 2010 from overseas market to fund its growth plans. In this context, the
Chairman of SBI had to analyze and examine the cost of issuing/raising capital globally
especially when alternative avenues of raising overseas capital were available. Principally,
the Chairman had to decide the least expensive issue for SBI among the various bond issue
options available to it.
Also, since SBI is seeking to raise money from international capital market, it has to deal
and manage the foreign exchange risk associated with the issuance of foreign capital.
Therefore, assessing foreign exchange risk, designing appropriate hedging strategy and
computing the conditional cost of a global debt issue in light of appreciation and
depreciation of domestic currency was important for the Chairman to consider and decide
upon.
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Raising Capital in Global Markets: A Case of SBI
SBI and the Banking Industry

Indias banking system was very weak since independence until the nationalization of 19
major banks in 1969. The nationalization programme facilitated the Indian banking
industry to achieve some remarkable progress in many respects. However, during 1970s
and 1980s, the banking industry could not perform well under a highly regulated regime
which suffered from lack of competition, low capital base, low productivity and high
intermediation costs. Moreover, the role of technology was very minimal and the quality of
service did not receive adequate attention (Bhole and Mahakud, 2009). Also, prudential
norms were weak and there was no proper risk management system in place. All these
resulted in poor assets quality. The banks were running either at a loss or on very low profits
and consequently were unable to provide adequately for loan defaults and build their
capital. As a result of all these, the reforms in banking industry had become imperative on
account of facts that despite its impressive quantitative growth and achievements, the
financial health, integrity, autonomy, flexibility and vibrancy deteriorated over the past
many years (Bhole and Mahakud, 2009).
Therefore, in order to overcome these operational inefficiencies, the government of India
appointed a high level committee on financial system under the chairmanship of M.
Narasimham to examine all aspects relating to the structure, organization, functions and
procedures of the financial system in general. The Report of the Committee on the
Financial System was submitted by the Narasimham committee to the government of India
in November 1991.
Throughout 1990s and 2000s several reforms were introduced in the Indian banking
industry. The reforms focused on prudential regulation and supervision, reduction of SLR
and CRR, deregulation of interest rates, phasing out of directed credit, introduction of
modern technology and promoting competition from new players.
In the light of the above discussion, the State Bank of India (SBI) is Indias oldest Bank and
over the years SBI has attained the status of Indias premier bank and more importantly it is
competing strongly with its peer members in the industry as depicted through exhibit 1 to
exhibit 8 by the performance indicators of SBI vis--vis its peer members in Indian banking
industry. In context of liberalization and increased global competition, SBI is going
through a significant phase of transformation and change. Today, the two hundred year old
public sector giant is stirring out of its public sector legacy and moving with great agility to
give the private as well as foreign banks a run for their money.
In order to have global presence and dominate the Indian banking industry, the bank is
entering into many new businesses and products with strategic tie ups all over the world.
Some of its new products include, pension funds, general insurance, custodial services,
private equity, mobile banking, point of sale merchant acquisition, advisory services,
structured products etc each one of these initiatives having a huge potential for growth.
Further, SBI is marching ahead with modern banking technology and innovative new
banking models to expand its national and international banking base. Also, SBI is looking
to expand at the vast untapped potential in the vicinity of rural sector and proposes to cover
nearly 100, 000 villages in near future.
In order to provide Indias growing mid and large corporate sector with a complete array of
products and services SBI is also focusing to expand its banking operations especially on
whole sale banking capabilities. Today, SBI is combining its international treasury business
and marching into derivative instruments and structured products. In India, SBI is one of
Volume 2 Number 2
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Inder Sekhar Yadav
the largest banker of infrastructure debt and the largest provider of commercial external
borrowings. SBI is the only Indian bank to be listed in the Fortune 500 which is a list of 500
large companies compiled every year by US on the basis of the companys revenue
declared. In order to improve SBI is changing its outdated front and back end processes to
modern customer friendly processes. Most of its own branches as well as of its associate
banks are networked with modern banking technology. This makes SBI to offer the largest
banking network to the Indian banking customers. In order to train its staff on modern lines
par with the new banking technology SBI has four national level Apex Training Colleges
and 54 learning Centers spread across the country.
In the current era of globalization and liberalization, the bank is looking at opportunities to
grow in size both in India as well as across the globe. SBI currently has about 142 foreign
offices as on March, 2010 across the globe in 32 countries. Forming a dreadful group in the
Indian banking industry, SBI has several subsidiaries such as SBI Capital Markets,
SBICAP Securities, SBI DFHI, SBI Factors, SBI Life and SBI Cards. Today, the bank is in
the process of raising capital for its domestic as well as global growth and business
expansion. SBI is also in the process of consolidating its different holdings.
Regulations Governing Foreign issue in India
As per the guidelines of government of India and RBI, Indian companies can access capital
from abroad through the following methods: (a) External Commercial Borrowings (ECB),
(b) Foreign Currency Convertible Bonds (FCCBs), (c) Preference shares and (d) Foreign
Currency Exchangeable Bond (FCEB). Capital from abroad can be raised under two
routes, viz., (i) Automatic Route and (ii) Approval Route. Foreign capital for investment in
real industrial sector, infrastructure sector and some specified service sectors come under
automatic route which do not require either government or RBI approval.
The eligible borrowers which come under automatic route are corporates, including those
in the hospital, hotel, software sectors which are registered under the Companies Act, 1956
and Housing Finance Companies (HFCs), Infrastructure Finance Companies (IFCs), such
as banks, financial institutions (FIs), and Non-Banking Financial Companies (NBFCs).
Individuals, Trusts and Non-Profit making organizations are not eligible to raise capital
from abroad. Units covered under Special Economic Zones (SEZ) are also permitted to
raise foreign capital for their investment activities. Certain qualified, Non-Government
Organizations (NGOs) engaged in micro finance business are eligible to raise capital from
abroad under automatic route.
The recognized lenders from which the eligible borrowers can borrow internationally
include (a) international banks, (b) international capital markets, (c) multilateral financial
institutions (such as IFC, ADB, CDC,) and or regional financial institutions and
Government owned development financial institutions, (d) export credit agencies, (e)
suppliers of equipments, (f) foreign collaborators and (g) foreign equity holders.
Other than those in the hotel, hospital and software industry the maximum amount of
foreign capital which can be borrowed by a corporate is US$500 million in a financial year.
Industries falling in sectors such as, hotels, hospitals and software are allowed to avail
foreign capital up to US$100 million during a financial year. Also, the proceeds of the
foreign capital can not be used for acquisition of land in case of these industries. With
regard to maturity, foreign borrowings up to US$20 million in a financial year should have
minimum average maturity of three years. A minimum average maturity of five years is
required for borrowing between US$20 million to US$500 million in a financial year. The
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government lays ceilings on all-in-cost and reviews it from time to time (see exhibit 8).
The end-use of foreign capital raised can be used in investments of new projects,
modernization and expansion of existing production units in real sector as well as industrial
sector including small and medium enterprises, infrastructure sector and some specified
service sectors namely hospital, hotel, and software.
Since a decade or so, Indian companies have gradually increased their borrowing overseas
(see exhibit 9 and 10). The principal advantage of raising capital overseas is the lower
interest rates as compared with the domestic interest rates which have harden due to tight
monetary policy of the RBI in recent times.
SBIs Overseas Bond Issue Details
SBI requiring to raise capital internationally in the context of integrated global capital
markets had many alternatives with it to consider. SBI to choose from various competing
capital markets with the mix of risk and return the choice of the best alternative was difficult
to make. In addition to choosing between proportion of equity and debt capital there was
also the issue of which market to tap and how to enter the market. Amid market turbulence
and volatility, State Bank of India in a statement on July 23, 2010, announced that it plans to
issue a five-year bond with a face value of US$1 billion internationally through its London
branch on July 27, 2010. In order to raise capital internationally, SBIs lead managers
(Bank of America, Merrill Lynch, Citigroup, Deutsche Bank, HSBC, RBS and UBS)
suggested that it had an opportunity to issue bonds denominated in US dollars in US
market, a Eurobond or Euro/US dollar dual currencies bond. Further, it was indicated that
after the successful issuance of the international bond it would be listed on the Singapore
Stock Exchange. The offering, was rated Baa2/Stable by Moody's and BBB-/Stable by
S&P.
Its lead managers estimate that a US dollar bond issue in US would bear a 4.50% coupon
paid semi-annually and other up-front fee totals 0.70% and the bond is expected to sell at
Par Value. Alternatively, SBIs can issue a five-year Eurobond with a face value of US$1
billion with a coupon of 9.25% from the international capital market. The Eurobond issue
has an up-front fee of 1.65% and the bond is expected to sell at 101% of Par Value. Also,
SBI has an opportunity to raise money by issuing Euro/US dollar dual currencies bond with
8.75% coupon having an up-front fee of 1.75% where the bonds are expected to sell at 99%
of Par Value. The repayment of all the bonds at maturity will be equal to the face value of the
bond issued. The above mentioned Euro bond and the Euro/US dollar dual currencies bond
issue details such as coupon rate, face value and up-front fee are assumed in the present case
for illustrative purpose of all-in-cost.
From the following international issue, SBI said that it would use the proceeds of the issue
for financing and funding its foreign subsidiaries and operations. SBI also wants to use the
proceeds to support Indian corporate with commercial external borrowings. More
importantly, SBI with this international capital issue intends to broaden its debt investor
base in global capital market and to enter and access vast and large capitalized global
institutional investors in the private placement segment of the market.
Foreign Exchange Risk and Hedging
Foreign exchange risk occurs because each economy has its own domestic currency which
acts as a medium of exchange and the exchange rates between any two countries and
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Inder Sekhar Yadav
currencies fluctuate on day to day basis (see exhibit 11) resulting in a change in the value of
the companys international transactions in terms of its domestic currency.
Foreign exchange risk is the risk that the home currency value of cash flows denominated in
foreign currency may change due to the variations in the foreign exchange rate. The
exchange rate between a corporations home currency and the foreign currency may
appreciate or depreciate by the time the corporation receives or pays the cash flows in the
foreign currency exposing the corporation to foreign exchange risk. Mainly, there are three
important foreign exchange risks that affect a corporations financial performance.
Translation exposure of a corporation which has overseas presence is the accounting based
changes in consolidated financial statements caused by exchange rate changes. Transaction
exposure of a corporation occurs when exchange rate changes affect the actual cash flows
between the time when an obligation is incurred and the time when it is settled. Economic
exposure reflects the change in the present value of corporations futures cash flows
because of the unpredicted variations in foreign currency rates.
Therefore, hedging or mitigating foreign exchange risk is very important for the business
corporations in order to protect them from the risk of loss. By using a well defined and preestablished foreign exposure management strategies corporations can hedge or manage
foreign exchange risk. There are several financial instruments/contracts such as currency
forward and futures contract, currency options and SWAP agreements available for a
corporation to hedge against the foreign exchange risk. Also, one can use money market
operations to hedge foreign exchange risk.
Hedging the foreign exchange risk involves projecting or forecasting exchange rate
volatility, assessing the possible impact of a hedging strategy, deciding on hedging the
foreign exposure, selecting the appropriate financial instrument and designing a hedging
strategy or structure.
Because SBI is seeking to raise money from international capital market, it has to deal and
manage the foreign exchange risk associated with the issuance of above mentioned issue.
This is a clear case of transaction exposure because SBI has contractual obligations to make
future coupon and principal payment (cash outflows) in foreign currency. As the exchange
rate of Indian currency vis--vis US dollar and Euro (as of July, 2010, the monthly average
exchange rate of Indian rupee vis--vis US$1 and 1 was approximately equal to Rs.46.84
and Rs.59.76 respectively) is expected to change now and when these transactions occur, so
does the value of their associated non-domestic currency cash flows, leading to currency
gains and losses which ultimately decides the total cash outlay that SBI has to pay in foreign
currency for exchange of domestic currency. Thus, SBI has to face the transaction risk
during the entire period of coupon payments and the final payment for the 5-year bond
since two or more currencies are involved and there is a lag between the dates the bond
contract is signed and the date of coupon and principal payment. Therefore, the foreign risk
faced by SBI is that the Indian exchange rate will change and fluctuate before the
transaction is completed and the currency exchange occurs (in this case Dollar and Euro),
there by changing the amount of Indian currency to be paid over a span of 5 years of debt
payment.
The historical examination of the annual average of the exchange rate of the Indian rupee
vis--vis US$ and Euro (see exhibit 12) reveals that the Indian currency had movements of
both high and low. For example, the rupee appreciated to a ten-year high of US$39.29 in
June 2008 where as it depreciated to a record low of US$52.06 in March 5, 2009. From
2008-09 onwards, Indian currency on year to year basis has depreciated against both US
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dollar and Euro. For example, the annual average of Indian exchange rate vis--vis US$
was Rs.40.241/1US$ in 2007-08 which depreciated to Rs.45.917/1US$ and
Rs.47.417/1US$ in 2008-09 and 2009-10 respectively. Similarly, the annual average of
Indian exchange rate vis--vis Euro was Rs. 56.99/1 in 2007-08 which depreciated to Rs.
65.135/1 and Rs.67.084/1 in 2008-09 and 2009-10 respectively. On July 27, 2010, the
date of global bond issue by the SBI, the Indian exchange rate vis--vis US$ and Euro was
Rs.46.658/1US$ and Rs.60.809/1 respectively. Because of global recession and
uncertainty of crude oil prices there is no strong reason to believe that the value of Indian
currency against US$ and Euro will increase or appreciate. Since exchange rates are
notoriously difficult to predict, SBI needs to hedge the possible transaction risk associated
with the future coupon and principal payments due in next 5 year form the date of issue that
is from July 27, 2010 to July 26, 2015. Now the question before the management is: What
hedging strategy should the bank adopt to hedge the foreign exchange risk involved?
In light of above discussion, with respect to issuance of an international bond and the
possible transaction exposure of coupon and principal payment, the Chairman of SBI has to
take two important decisions. First, it has to raise the required capital at the least expensive
issue among the various international bond issue options available to it. Second, the bank
has to decide and design a hedging strategy to protect from the possible foreign exchange
loss.
References
1.
2.
Annual Reports, SBI (Various Issues)

Bhole, L. M and Mahakud, J. (2009), Financial Institutions and Markets: Structure,
Growth and Innovations, Tata McGraw-Hill Education Private Limited, Noida
3. Indian Rupee Exchange Rate, Economy Watch, retrieved on 14th December 2010,
http://www.economywatch.com/exchange-rate/rupee.html
4. SBI to go overseas with $1-bn bond issue, The Economic Times, retrieved on 8th
October 2010, from http://economictimes.indiantimes.com/markets/bond/SBI-togo-overseas-with-1-bn-bond-issue/articleshow/5082430.cms
5. SBI raises $1 b through overseas bonds issues, The Hindu Business Line, retrieved
on 8th October 2010, from http://www.thehindubusinessline.com/2010/07/24/
stories/
6. SBI raises $1 billion through 5-year global bonds, The Economic Times, retrieved
on 8th Octobe 2010 from http://economictimes.indiatimes.com/news/news-byindustry/banking/finance/banking/SBI-raises-1-billion-through-5-year-globalbonds/articleshow/6207808.cms
7. SBI raises USD 1 billion through bonds in US, Deccan Chronical, retrieved on 8th
October 2010, from http://www.deccanchronicle.com/business/sbi-raises-usd-1billion-through-bonds-us-875
8. SBI raises $1 bn via US bonds issue The Indian Express, retrieved on 8th October
2010, from http://www.indianexpress.com/news/sbi-raises-1-bn-via-us-bondsissue/650715/
9. SBI raises USD 1 bn via bonds issue from US market, Deccan Herald, retrieved on
8th October 2010, from http://www.deccanherald.com/content/83274/sbi-raises-usd1-bn.html
10. SBI raises $1 billion in bonds from US, The Indian Express, retrieved o 8th October
2010, from http://www.indianexpress.com/news/sbi-raises-1-billion-in-bonds-fromus/650925/
11. SBI raises USD 1 bn through bonds in US, Trading Markets, retrieved on 8th
October 2010, from http://www.tradingmarkets.com/news/stock-alert/bkiaf_sbiIMT CASE JOURNAL, JAN - JUNE 2012
Volume 2 Number 2
ISSN : 2229 - 6743

Inder Sekhar Yadav
raises-usd-1-bn-through-bonds-in-us-1063335.html
12. Key Business Statistics, available at http://www.iba.org.in
13. Master Circular No. 8 /2010-11, RBI/2010-11/8, July 01, 2010, RBI
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ISSN : 2229 - 6743

EXHIBITS
Exhibit 1 : Commercial Banks in India : Deposits/Investments/Advances as on
March 31 (Rs Crore)
Deposits
2009
2010
Investments
2011
2009
2010
2011
Advances
2009
2010
2011
SBI
742073 804116 933933 275954 295785 295601 542503 631914 756719
Total Associates of SBI
264968 303969 311930 81670
91688
90096 196947 226023 237434
Total Nationalised Banks 1993305 2416267 2946636 605333 756760 877326 1416881 1704880 2154380
Private Sectore Banks
736378 822801 1002759 306531 354117 422020 575328 632441 797934
Foreign Banks
214076 232099 240692 130354 159291 165499 165385 163260 195538
Source: Report on Trend and Progress of Banking in India, RBI (Various Issues) and Key
Business Statistics, IBA
Exhibit 2 : Commercial Banks in India : Assets/Gross and Net Non Performing Assets
as on March 31 (Rs Crore)
2009
2010
2011
Net NPA
Gross NPA
Total Assets
2009
SBI
964432 1053414 1223736 15714
315623 358886 373948
2010
2011
2009
2010
2011
19535
25326
9677
10870
12347
2733
3998
5066
1192
1960
2444
Total Nationalised Banks 2313299 27950013442756 25108
34265
40304
9337
15407
19605
1027756 1150736 1398176 16927
17638
18243
7412
6506
4574
Foreign Banks
445129 435636 492794
7134
5071
2997
2976
1283
6445
Exhibit 3: Commercial Banks in India : Income as on March 31 (Rs Crore)
Interest Income
Other Income
Total Income
2009
2010
2011
2009
2010
2011
2009
2010
2011
SBI
63788
70994
81394
12691
14968
15825
76479
85962
97219
25407
26960
28434
3382
3425
3415
28789
30385
31849
Total Nationalised Banks 172347 192768 237889 24917
28198
26542 197264 220965 264431
85071
82807
96827
17860
20422
20726 102932 103229 117553
Foreign Banks
30322
23392
28530
14894
9951
10973
45216
36343
39503
Volume 2 Number 2
ISSN : 2229 - 6743

Inder Sekhar Yadav
Exhibit 4: Commercial Banks in India : Expenditure as on March 31 (Rs Crore)

Interest Expended
Operating Expenses
Total Expenditure
2009
2010
2011
2009
2010
2011
2009
2010
2011
SBI
42915
47322
48868
15649
20319
23015
58564
67641
71883
18855
18906
18150
4439
4964
6130
23294
23870
24280
Total Nationalised Banks 121371 132706 149863 34078
38961
51565 155449 171667 201428
56957
51206
57115
21779
22851
27606
78737
74057
84722
Foreign Banks
12819
8938
10622
12298
11111
12581
25118
20049
23203
Exhibit 5: Commercial Banks in India : Profit as on March 31 (Rs Crore)
Operating Profit
Provisions and
Contingencies
Net Profit
2009
2010
2011
2009
2010
2011
2009
2010
2011
SBI
17915
18321
25336
8794
9155
17071
9121
9166
8265
5495
6515
7569
2721
3248
3970
2774
3267
3598
Total Nationalised Banks 41816
49298
63003
20198
23506
31616
21618
25793
31388
24195
29173
32831
13327
16061
15119
10868
13111
17712
Foreign Banks
20099
16294
16299
12589
11560
8589
7510
4734
7710
Exhibit 6: Commercial Banks in India : Credit and Investment Deposit Ratio as on
March 31 (percent)
Credit Deposit Ratio
Spread as %
of Assets
Investment Deposit
Ratio
2009
2010
2011
2009
2010
2011
2009
2010
2011
SBI
73.11
78.58
81.03
37.19
36.78
31.65
2.16
2.25
2.66
74.33
74.36
76.12
30.82
30.16
28.88
2.08
2.24
2.75
Total Nationalised Banks 71.08
70.56
73.11
30.37
31.32
29.77
2.2
2.15
2.56
78.13
76.86
79.57
41.63
43.04
42.09
2.74
2.75
2.84
Foreign Banks
77.25
70.34
81.24
60.89
68.63
68.76
3.93
4.01
3.63
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Exhibit 7: Commercial Banks in India : Credit and Investment Deposit Ratio as on

March 31 (percent)
Opr.Exp as % to
Total Expenses
Return of Assets
2009
2010
2011
2009
SBI
26.72
30.04
32.02
1.04
0.88
0.71
19.06
20.8
25.25
0.96
1.00
1.04
Total Nationalised Banks 21.92
22.7
25.6
1.00
1.00
0.99
27.66
30.86
32.58
1.1
0.94
Foreign Banks
48.96
55.42
54.22
1.76
0.22
2010
2011
Capital Adeqacy Basel II
Capital Adeqacy Basel I

2009
2009
2010
10.69
14.25
13.39
11.98
12.2
13.19
13.53
13.13
12.07
13.22
13.2
13.5
16.7
15.1
15.2
17.4
16.5
18.1
17.7
14.3
17.3
17
2010
2011
12.3
12
11.92
12.1
12.1
12.2
1.09
15
1.88
15
Exhibit 8: Average maturity and all-in-cost ceilings
Average Maturity Period
All-in-cost Ceilings over 6 month LIBOR
Three years and up to five years
300 basis points
More than five years
500 basis points
Note: All-in-cost Ceilings over 6 month LIBOR is for the respective currency of borrowing
or applicable benchmark (as on July, 2010), Source: Master Circular No. 8 /2010-11,
RBI/2010-11/8, July 01, 2010, RBI.
Exhibit 9: Data on External Commercial Borrowing (ECB) and Foreign Currency
Convertible Bonds (FCCB) of Indian Companies
Month
Apr-08
May-08
Jun-08
Jul-08
Aug-08
Sep-08
Oct-08
Nov-08
Dec-08
Jan-09
Feb-09
Mar-09
Apr-09
May-09
Jun-09
Amount US$(bn)
1.16
1.27
1.62
2.47
1.6
2.83
1.13
1.7
1.67
1.34
0.45
1.11
0.298
0.494
1.92
Month
Amount US$(bn)
Jul-09
Aug-09
Sep-09
Oct-09
Nov-09
Dec-09
Jan-10
Feb-10
Mar-10
Apr-10
May-10
Jun-10
Jul-10
Aug-10
Sep-10
2.01
1.09
1.51
2.58
2.35
1.57
1.32
2.19
4.32
2.82
0.696
1.79
1.64
1.09
3.09
Source: Financial Express, Oct, 23, 2010 and Database on Indian Economy, RBI
2011
Volume 2 Number 2
ISSN : 2229 - 6743
Exhibit 10: ECB and FCCB of Indian Companies
Source: Compiled based on data from Exhibit 9

Exhibit 11: Daily Exchange Rate of Indian rupee vis--vis US dollar and Euro
Source: Compiled based on the data collected from Handbook of Statistics on Indian
Economy, RBI, 2010
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Volume 2 Number 2
ISSN : 2229 - 6743
Exhibit 12: Annual Average Exchange Rate of Indian rupee vis--vis US dollar and
Euro
Source: Compiled based on the data collected from Handbook of Statistics on Indian
Economy, RBI, 2010
Author Information
1 Assistant Professor, Institute of Public Enterprise,
Osmania University Campus, Hyderabad, Andhra Pradesh, India
Email Id: Indersekharyadav@gmail.com
Volume 2 Number 2
ISSN : 2229 - 6743
TRIUMPH TUTORIALS SEARCH OF THE

TRIUMPHANT STRATEGY
NISARG JOSHI1, NARAYAN BASER2,
HARISHCHANDRA SINGH RATHOD3 & APURV RAVAL4
ABSTRACT
This case narrates the real life story of a business venture situated in
the city of Ahmedabad. The case focuses on the strategy adopted by
the managers of the institute & its repercussions then after. The case
is meant for the marketing class of post graduate students with
emphasis on Market Segmentation and Positioning strategy. It also
discusses the implications of business diversification. The case also
offers ample scope of analyzing the leadership qualities of the top
management. The beneficiaries will be all such newly start up
organizations which come across such typical situations of targeting
especially in the subcontinent. The case is based on real life
experience. However, it has been presented in a disguised manner so
as to protect the identity of the organization.
Keywords: Competitive Examinations, Diversification,
Segmentation and Positioning, Market Strategy, Service Quality
Introduction
What can be the reason behind this worrying state of affairs? Palashkumar murmurs
looking at the financial report submitted by Shikhar Sen, the business head of newly
expanded venture TRIUMPH TUTORIALS - a Coaching Institute for
IAS/CAT/Banking and other competitive Examinations. The enrolments have taken a
southward movement in the third year by twenty one percentage points compared to last
year. Is there enough market for this? he further contemplates studying the poor
enrolments of the last year. It has turned into disastrous venture, which he once considered
to be a revenue spinner for him. The mystery further deepens when he learns about the
proliferate business of other players in the similar businesses. He further gets astonished
when the business consultant hired for investigating the causes of the dire state of the
business puts to his notice the fabulous performance of less promising institutes, which
have mushroomed since the last advertisement of State Public Service Commission for
Class-I & II cadre.
The Inception
Palashkumar, a successful businessman, has experienced many of such situations and dealt
with them with professional knack. Palashkumar is a businessman from a mediocre family,
and has become a well-to-do businessman with his labor and contemporary management
style. He has an established business of Gold Jewellery at the age of 65 years and his
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Volume 2 Number 2
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Triumph Tutorials Search of the Triumphant Strategy
company, TRIUMPH JEWELERS, ranks amongst the top five Jewelers of the country.
The company is Head Quartered at Rajkot, a City of the Gujarat State. They are the sole
provider of the Gold Bars to most of the Jewelers of the State. TRIUMPH JEWELERS,
once a small Jewellery Showroom has now become the most renowned name in the field of
creative crafting, carving, and designing of Gold Jewellery. The growth of TRIUMPH
JEWELERS can mainly be attributed to the visionary approach of its founder
Palashkumar towards the transformation of a small Jewellery shop to a famous gold
Jewellery designing firm.
The Growth
Palashkumar adopted the strategy of minimum margin and higher turnover initially to
capture local market. He focused on purity of Jewellery and quality service. In those days
(in 1980s), it was common to have the impure Jewellery being sold in the market to make
money within short time. His attitude with customers made him win loyalty. This resulted
into increased customer base in Rajkot city. Then onwards, he did not look back. He started
advertising in radio and local news papers also. This made TRIUMPH JEWELERS, the
most sought-after brand in the State of Gujarat. He did not limit his horizons and targeted
the market outside the state too. To be the most favoured brand, the thrust was given on
customer services and creative designs. Keeping this in mind, he made sure that his jewelry
should have the design which no one else in the market could offer. For this he hired the
services of the well qualified designers from the Institute of Jewellery Designing and from
NID. He exhibited his jewelry in the National Jewelry Design Expo at Mumbai organized
in hotel Ashoka. He contracted with one of the Bollywoods upcoming actresses in 1998,
who was a established star in the film industry by then. His decision to have her face in
Exhibitions and TVs had helped the brand to increase brand awareness and won him a great
applause for his designer jewelry and it soon became an established Brand in the industry
throughout the country.
The Diversification
For business reasons, Palashkumar maintained good relationship with many of the bank
officials, which proved handy in short term financial crisis. He was having a good rapport
with, Shikhar Sen who was a senior manager of a nationalized Bank. Shikhar Sen made a
proposal of a joint venture for the Coaching of IAS/CAT/Banking and other competitive
Examinations. Palashkumar was hesitant initially, as it would be totally dark zone for him.
Moreover, an idea of going for unrelated diversification did not encourage him. He asked
for some time to think over Shikhars proposal. He discussed about this new business idea
with his two sons. Both of them objected it strongly and instead proposed to venture into the
field of imparting of jewellery design training, which would rather make more sense. They
explained to Palashkumar about the worthiness of related diversification wherein they had
enough knowledge and this backward integration could ensure the continuous flow of
skilled jewelry designers for their own organization. However, Palashkumar opined that
even at that juncture they were getting sufficient number of quality jewelry designers and
expressed his confidence on Shikhar Sens knowledge in the field of competitive
examinations. Another reason for going with Shikhars idea was his fascination for coveted
job since his young days and deep rooted desire to serve the society through the
establishment of an educational institute. He offered Shikhar Sen a Directors post with the
profit-sharing option and asked to shoulder all the responsibility pertaining to the new
venture. As Palashkumar was quite impressed with Shikhar Sens approach with the
customers, he had given nod to invest the funding for the same.
Volume 2 Number 2
ISSN : 2229 - 6743
Nisarg Joshi, Narayan Baser, Harishchandra Singh Rathod & Apurv Raval
The Inception of TRIUMPH TUTORIALS

Shikhar Sen conceptulised the idea and named the venture TRIUMPH TUTORIALS. It
was established in the metro city of Ahmedabad in the state of Gujarat. It gave the hope to
Palashkumar to improve the percentage of students clearing elite competitive examination
from the state. This reminded him of the days of his schooling when it was a luxury to have a
school above primary standard in his village. He himself could not become a government
official due to the unavailability of such a dedicated institute in the state. Moreover, the drift
is towards starting ones own business amongst the youngsters in the state. So, TRIUMPH
TUTORIALS could be an answer to all the problems related to elite competitive
examinations like IAS (Indian Administrative Service), CAT (Common Admission Test),
Banking, and others. With this motive in mind, TRIUMPH TUTORIALS was
established in the Ashram Road area of Ahmedabad City. Ahmedabad appeared to be the
best choice for Shikhar Sen and Palashkumar, as Ahmedabad is the only city in Gujarat
State where most of the young aspirants migrate from distance places with the dreams of
brighter future in their eyes. They zeroed on Ashram Road area as it is developed area of the
Western Ahmedabad and due to its proximity with the Eastern Ahmedabad (popularly
known as Old Ahmedabad). Moreover, it has the advantage of higher frequency of bus
service for internal as well as for those who commute from Central and North Gujarat. The
city has the facility of boarding and lodging for the students coming from Saurashtra and
Kutch Region of Gujarat State, as there are many private hostels in the surrounding areas.
The Ambience
TRIUMPH TUTORIALS was set up on the first floor of the well-known Shopping
Complex of Ashram Road with state of the art architecture. They emphasized on providing
appropriate environment to the students as well as to the faculty members. The best of the
citys architects services were hired to have the world-class infrastructure. The premise
was having the built up area of 5000 square meter and it was made centrally air conditioned.
It was uncommon even to have the air conditioned classes at other institutes. The air cutter
system, CC Camera and LCD Projectors were installed in the institute. They took due care
to create infrastructure and ambience as its USP (Unique Selling Preposition). The slow
soothing music was continuously played keeping in mind the positive effects of music on
the students mind. It resulted into heavy investment and perhaps none other than
TRIUMPH TUTORIALS could have incurred this huge sum of money in the same
industry. The physical evidence and servicescape was no less than a three star hotel in terms
of facilities provided.
Marching Ahead
Shikhar Sen accepted the offer of Palashkumar to become a Director, but as a part of his
career strategy postponed the idea of resigning from the bank. It made Palashkumar
disturbed as he had a greater concern about his investment and philanthropic motive of
delivering quality education to the youth of the society. Shikhar Sen, not having enough
knowledge about UPSC and CAT Entrance Examinations except the banking, searched for
a guy who was currently preparing for the above examination. It was not easy to have such a
person who could have the multi faceted personality. He searched for an IAS aspirant who
could be a jack of all. He wanted someone who could search for the faculties for class room
teaching and prepare the study material for these competitive examinations. Fortunately, he
found Tirth, an IAS aspirant himself, of 24 years of age having a post graduation degree in
Management with first class from a reputed institute. He thought that Tirth could be an asset
to TRIUMPH TUTORIALS. Tirth had undergone one year training for UPSC at SPIPA
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(Sardar Patel Institute of Public Administration, a Govt. of Gujarat run IAS Training
Institute at Ahmedabad) after completion of his MBA. Tirth was able to design the study
material in the subject of Public Administration and some areas of General Studies as well
as Reasoning Abilities Section of MBA and Banking Entrance Examinations. He was
successful to avail the services of some of the most successful tutors in the field of UPSC
and CAT Entrance Examinations as full time faculties. The pay-package offered by him
made many prominent faculty members (of different specializations viz. History, Political
Science, Public Administration, etc.) tempted to relocate themselves in Ahmedabad. The
appointment of Tirth relaxed Shikhar Sen of lot of strategic issues related to TRIUMPH
TUTORIALS. He focused on hiring the best talent from throughout the country. He
betted on the quality study material for which he contracted with the most knowledgeable
faculty. He understood the significance of human resources in a true sense and opened his
money bags for the same. He wanted to beat Bright Tutorials, the market leader in the
country in the postal coaching for UPSC and IIT Entrance Examinations.
The Team
Shikhars team comprised of Tirth performing multiple roles of a faculty coordinator, an
HR Manager, and of a faculty. Shikhar Sen appointed two marketing executives on the
advice of Tirth for educational advertising. Tirth believed that the college-going students
read news papers and are competent in analyzing any national or international event.
Moreover, a focused approach should be inculcated amongst the college students. He
reminded Shikhar of long gestation period in this industry, as they had to work from the
scratch. Tirth appointed eight full-time faculty members from different areas and
contracted with other six faculty members for study material preparation. He appointed
four typists to assist the faculty members.
Shikhar Sens Strategy
Shikhar Sen was very ambitious and decided to target the elite competitive examinations
like UPSC (for IAS, IPS, IFS), CAT, and IIT in the beginning. He wanted to compete
with the established players in the respective fields. He supported his decision in front of
Tirth by the logic that he had the best quality tutors and the world class infrastructure.
However, Tirth was not fully convinced with this strategy of targeting the upper segment
(in terms of the stature of the competitive examinations, and not in terms of the target
audience or pricing), as it meant battling with Bright Tutorials in IAS and IIT (Indian
Institute of Technology) postal coaching, directly battling with established brand like
MASTERS IAS, AIMs Coaching, etc. and many other Delhi-based coaching institutes
for class room coaching in the national market and with SPIPA & SPSS (Sardar Patel Seva
Samaj) in the local market. Tirth explained that the aspirants for such elite examinations
would never rely on a new entrant like us, as it is a matter of their career and long cherished
dream. He even resisted the strategy of offering CAT Coaching on the same grounds. He
was of the opinion of going only for GCET (Gujarat Common Entrance Test for MBA and
MCA), as Gujaratis (People of Gujarat) are gifted with the business acumen and are highly
successful in business worldwide. This made him confident of getting enough students.
The Response
A warm response was expected considering the most hyped inaugural ceremony which
showed off the strengths of TRIUMPH TUTORIALS in terms of faculty members and
infrastructural facilities. However, to their dismay the enrolments were not as expected and
even after three years the brand awareness was very low. The students community could
Volume 2 Number 2
ISSN : 2229 - 6743
not dare to experiment even though the efforts from every front i.e. faculty and marketing
were tremendous. The aspirants rather preferred to be enrolled in the established institutes
like SPIPA, SPSS for UPSC (Union Public Service Commission) and Topers Institute,
Intellect Learning Center, Excellent Career Academy, Lamppost for CAT coaching. Others
even migrated to Delhi for the same.
The Meeting
In midst of such condition, a meeting was summoned by Palashkumar to determine the
future course of action. It steamed with hot exchange of thoughts between Shikhar Sen and
Tirth. Other faculty members and Marketing Executives also put up their view point about
the situation.
Palashkumar: It is unfortunate to have such a poor performance after the three years of
inception. He has just tabled the comparative income statement (Exhibit 1) and balance
sheet (Exhibit 2) in the meeting towards his team with very dissatisfactory gestures. He also
handed over Exhibit 3 showing different financial ratios of last three years. He showed his
concern about the declining profit margin and growth in income.
We have to work on the improvement of Service Quality, Shikhar Sen added.
Sir, our efforts are dedicated to offer them the best quality: a faculty member replied.
There must be something wrong with the quality; otherwise the students would have
definitely queued to get into our institute, Shikhar Sen responded.
Sir, the students are not ready to hand over their fate in our hands. They felt trusting on the
new institute meant jeopardizing the career. Marketing Executive opined showing the
enrollment status across different programmes (Exhibit 4).
It is not only about the Service Quality, it has a lot to do with the brand image of our
institute. We have been thrown into the ocean to fight with the giants like. (He was
hesitant in naming the competitors) said another Marketing Executive.
It is all damn excuses of non-performers like you. One can be convinced by showing the
tangibles and the reputed names of our faculty members. Shikhar Sen said angrily.
Tirth: Sir, the problem lies with the strategy, not with the quality of coaching service
Shikhar Sen: What do you mean?
It is as simple as you selecting the most renowned school for your kid in the first standard.
You could not risk your kids career. Tirth replied calmly.
But, every organization has the starting point. One has to fight hard to get noticed.
Shikhar Sen put the point with confidence.
You are right, sir. One has to start at some point but one can start from the grass root and
obviously not with the sky scrapers as you intended. Tirth explained.
To aim high is not crime, dear Shikhar replied.
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Sir, with due respect to your tall aims, one has to go gradually for expansion particularly in
the industry like this Tirth further elaborated.
Dont you have the example of the big successes even in the service industry? Shikhar
questioned doubting the logic of Tirth.
It is always there, but academic service is bit different, wherein your customers decisions
have a much greater impact to their lives compared to other services like restaurant,
tourism, or housekeeping. Tirth explained.
Then, what is the solution? Shikhar asked with confused state of mind.
Sir, better we would get ourselves firmly placed in the local market first. Tirth Said.
But, the response for the regular classes (located at Ahmedabad only) was not much
different. Moreover, the major chunk of revenue had been targeted from the regular classes
only and the postal course was the secondary business. Shikhar asked.
Sir that is what I mean to convey. The local market for UPSC has not much potential and
for CAT coaching, the preference is towards the more renowned institutes. The serious
candidates had moved towards Delhi for better coaching. Tirth Said.
Therefore, at first we should start with the GPSC (Gujarat Public Service Commission)
and GCET (Gujarat Common Entrance Test for MBA and MCA) competitive
examinations. GPSCs advertisement for Class-I & II officers had been announced last in
2006 and GCET has been conducted every year. Approximately 150000 aspirants appear
for each. Therefore the problem of not enough students would not arise. Once we become
an established name for these examinations, we could move upward and target the elite
examinations like UPSC, or IIM. Tirth explained.
We offered those even, but to our surprise we could not make our ground in GPSC and
GCET examinations. Shikhar questioned.
Sir, it was due to Success Mantra and Navyug foundations competition. Marketing
Executive replied.
It might be because we got more expanded than our resources allowed us. Tirth opined.
Now, what is the way out? Shikhar questioned.
Sir, we will have to start a fresh. Let us focus on a few courses and that too at the lower
level. We can go for gradual expansion. Tirth proposed.
Where is the Triumphant Strategy?
Tirth is quite clear about how Shikhar Sen should pursue. He recommended targeting the
GPSC, GCET, Banking examinations initially, as there were a huge number of aspirants for
these examinations. Targeting the UPSC or IIM (Indian Institute of Management) aspirant
could be done, once we could be an established brand in the students community. He was
confident about his team and said once we deliver the successful candidates, they would
spread the positive word-of-mouth. The concern here is to attract the customers to consume
our services. As there could not be a trial purchase, the first time purchase should be given
greater emphasis. Once some use it, others are bound to follow.
Volume 2 Number 2
ISSN : 2229 - 6743
However, Shikhar Sen blamed the marketing executives for the poor show. He feared about
dilution of the brand image by opting for the state-level examinations.
Shikhar Sen is not ready to wind up his venture just because of the fear of further loss.
Mr. Palashkumar leaves the report and heads towards his residence with thoughts of
continuing the TRIUMPH TUTORIALS with the same strategy or not.
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Volume 2 Number 2
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EXHIBITS
Exhibit 1: Income Statement
Triumph Tutorials
INCOME
2007-08
2008-09
2010-11
Operating Income
Students' Fees - Regular
Students' Fees - Fast track
Students' Fees - Distance
Total Operating Income
2,615,000
969,000
392,000
3,976,000
3,265,000
997,000
327,000
4,589,000
2,550,000
815,000
252,500
3,617,500
24,000
25,000
11,000
60,000
49,050
28,000
13,000
90,050
60,000
30,000
9,000
99,000
Total INCOME
4036000
4679050
3716500
EXPENSES
Operating Expenses
Accounting and Legal
Advertising and Publicity
Depreciation
Dues and Subscriptions
Faculty Development
Insurance
Interest Expense on short term loan
Interest Expense on long term debt
Maintenance and Repairs
Office Supplies
Postage and stamp
Salaries to Teaching staff
Salaries to Non-teaching staff
Telephone and Internet
Web Hosting and Domains
Other
Total Operating Expenses
2007-08
2008-09
2009-10
3,976
89,460
750,000
119,280
119,280
75,000
84,000
220,000
37,500
79,520
79,520
795,200
318,080
99,400
357,840
39,760
3,267,816
4,589
103,253
750,000
137,670
183,560
67,500
220,000
33,750
183,560
91,780
1,606,150
367,120
114,725
413,010
91,780
4,368,447
3,618
81,394
750,000
108,525
180,875
60,000
36,000
220,000
30,000
144,700
72,350
1,447,000
289,400
90,438
325,575
217,050
4,056,924
768,184
268,864
499,320
310,604
108,711
201,892
(340,424)
(340,424)
Non-Operating Income
Interest Income
Career consultancy
Other
Total Non-Operating Income
Net Income Before Taxes

Income Tax Expense
NET INCOME
Source: Prepared by the authors based on inputs from Institute
Volume 2 Number 2
ISSN : 2229 - 6743
Exhibit 2: Balance Sheet

TRIUMPH TUTORIALS
Assets
Current Assets
Cash
Accounts receivable
Prepaid expenses
Total current assets
2007-08
2008-09
2009-10
98,510
397,600
98,034
594,144
178,790
458,900
131,053
768,743
113,076
361,750
121,708
596,534
545,000
1,800,000
450,000
4,500,000
6,750,000
7,295,000
600,000
1,600,000
400,000
4,000,000
6,000,000
6,600,000
8,394,144
8,063,743
425,424
7,621,958
2007-08
2008-09
2009-10
35,784
700,000
159,040
894,824
41,301
321,230
362,531
32,558
300,000
289,400
621,958
Long-Term Liabilities
Long-term debt
Total long-term liabilities
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
2,000,000
Owner's Equity
Owner's investment
Retained earnings
Total owner's equity
Total Liabilities & Owner's Equity
5,000,000
499,320
5,499,320
8,394,144
5,000,000
701,212
5,701,212
8,063,743
5,000,000
Fixed (Long-Term) Assets

Long-term investments
Furniture and Fixtures
Computers, LCD and Photocopier
Building
Total Depreciable assets
Total fixed assets
Misc. Assets
Loss from P&LA/c
Total Assets
Liabilities and Owner's Equity
Current Liabilities
Accounts payable
Short-term loans
Accrued salaries
Total current liabilities
300,000
2,000,000
500,000
5,000,000
7,500,000
7,800,000
5,000,000
7,621,958
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ISSN : 2229 - 6743

Exhibit 3: Key Financial Ratios

Common Financial Ratios
Debt Ratio (Total Liabilities / Total Assets)
Current Ratio (Current Assets / Current Liabilities)
Assets-to-Equity Ratio (Total Assets / Owner's Equity)
Debt-to-Equity Ratio (Total Liabilities / Owner's Equity)
Profit Margin Ratio (Net Income/Total Income) in %
Growth % in Total Income
2007-08
0.34
0.66
1.53
0.53
12.37
2008-09
0.29
2.12
1.41
0.41
4.31
15.93
2009-10
0.34
0.96
1.52
0.52
-9.16
-20.57

Exhibit 4: Enrolments of students
Enrolments: Banking
Clerical
Probationary Officers
2007-08
25
11
2008-09
40
24
2009-10
30
13
2007-08
33
15
10
2008-09
38
22
8
2009-10
28
15
5
2008-09
2009-10
14
13
16
15
11
9
10
8
6
5
5
4
Enrolments: CAT (Combined Admission Test)

Regular
Fast Track
Distance
Enrolments: UPSC (Union Public Service Commission)

Preliminary Examination
2007-08
Regular
General Studies
15
Optional 1 and 2
14
Fast Track
General Studies
12
Optional 1 and 2
10
Distance
General Studies
7
Optional 1 and 2
6
Volume 2 Number 2
ISSN : 2229 - 6743
Mains and Interview

2007-08
2008-09
2009-10
10
8
10
7
8
6
10
8
9
7
8
6
7
6
6
5
5
4
Regular
General Studies
Optional 1 and 2
Fast Track
General Studies
Optional 1 and 2
Distance
General Studies
Optional 1 and 2
Exhibit 5: Fees Structure

Fee Structure: Banking
Triumph Tutorials
12000
35000
Clerical
Probationary Officers
Fee Structure: CAT (Combined Admission Test)

Triumph
Topers
Tutorials
Institute
Lakshya
10000
30000
(INR)
Sure Success
9000
25000
(INR)
Lamppost
Intellect
Learning
Center
Excellent
Career
Academy
17000
12000
8000
25000
20000
11500
21000
11000
8500
Fee Structure: GCET (Gujarat Common Entrance Test)

Triumph
Topers
Intellect
Tutorials
Institute
Learning
Center
Regular
15000
12000
20000
Fast Track
10000
8000
15000
Distance
5000
4500
6000
Excellent
Career
Academy
15000
10000
5000
(INR)
Learning
Curve
Institute
13000
9000
4000
Regular
Fast Track
Distance
20000
15000
9500
22000
18000
11000
Source: Prepared by the authors based on inputs from various Institute
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(INR)
Fee Structure: UPSC (Union Public Service Commission )
Triumph
SPIPA Success AIMS Institute Master's
Tutorials
Mantra (Delhi based) IAS (Delhi
based)
Regular
General Studies
20000 No Charge
22000
30000
30000
Optional 1 and 2
25000 No Charge
30000
35000
40000
Fast Track
General Studies
12000
NA
14000
16000
18000
Optional 1 and 2
20000
NA
22000
24000
26000
Distance
General Studies
8000
NA
10000
12000
10000
Optional 1 and 2
10000
NA
11000
13000
15000
Mains and Interview
Triumph
SPIPA Success AIMS Institute Master's
Tutorials
Mantra (Delhi based) IAS (Delhi
based)
Regular
General Studies
Optional 1 and 2
Fast Track
General Studies
Optional 1 and 2
Distance
General Studies
Optional 1 and 2
30000
40000
No Charge
No Charge
30000
45000
40000
80000
45000
85000
20000
25000
NA
NA
22000
27000
30000
60000
33000
63000
13000
15000
NA
NA
15000
18000
20000
30000
24000
32000
Fee Structure: GPSC (Gujarat Public Service Commission

Triumph
Career Success
Navyug
Tutorials
Path Mantra
Foundation
Regular
General Studies
13500
14500
15000
14000
Optional 1 and 2
25000
26000
29700
25300
Fast Track
General Studies
5000
6500
9000
5500
Optional 1 and 2
12000
14400
16000
10000
Distance
General Studies
3000
3500
4000
2500
Optional 1 and 2
4000
5000
5500
3500
(INR)
Tirth
Classes
9000
18000
4500
8000
NA
NA
Volume 2 Number 2
ISSN : 2229 - 6743
Mains and Interview

Triumph
Career Success
Tutorials
Path Mantra
Regular
General Studies
Optional 1 and 2
Fast Track
General Studies
Optional 1 and 2
Distance
General Studies
Optional 1 and 2
Navyug
Foundation
Tirth
Classes
13500
25000
14500
24000
15000
25500
9000
15000
8000
14600
10000
15000
10750
15900
12000
20400
7000
11000
5000
8500
6000
5000
5000
7000
7000
8000
4500
6500
NA
NA
Annexure
1.UPSC EXAMINATIONS
2.SPIPA
1. UPSC EXAMINATIONS
Sr. No.
1.
2.
3.
4.
5.
6.
7.
Details
UPSC advertises normally in the month of November /
December in Employment News
Preliminary Examination of objective type is held every year in MAY.
Preliminary examination result - JULY / AUGUST.
Mains Examination Descriptive type test held in - OCTOBER /
NOVEMBER.
Mains Examination result in MARCH
Interview (viva - voce) APRIL-MAY at New Delhi.
Final Result MAY
Source: www.upsc.gov.in/
SPIPA
SPIPA was established by the Government of Gujarat in 1962 as the State Level
Administrative Training Institution for training government functionaries. It became an
autonomous body (registered under the Indian Societies Act) in October, 2004. The
Institute aims to provide state of the art training in areas related to public administration and
governance so as to enhance the competence of the government functionaries in delivering
services in their respective fields. Government of Gujarat has started Civil Service
Examination Study Centre since September, 1992 at the Sardar Patel Institute of Public
Administration (SPIPA) Ahmedabad for imparting training to the youth of Gujarat who
aspire to join Union Civil Services (IAS/IPS/IFS /Group - 1 & 2),conducted through
UPSC. An integrated coaching which concentrates on all the three stages of Civil Service
Examination i.e. Prelim, Mains and Interview. The rich experienced faculties affiliated
with SPIPA are helpful to candidates not only for General studies but also for optional
37
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subjects. The rich Library is equipped with the latest material & books for General Studies
and optional subjects of Civil Services Examination. A spacious, well ventilated reading
room for candidates has been provided. A wide range of Magazines and News Papers are
also available. SPIPA provides free Lodging and Boarding to the outstation candidates of
Reserved Category. Lodging and Boarding is also provided to outstation candidates of the
General Category at concessional rates. Stipend of Rs. 250/- per month is payable to
reserved category candidates. Regular Coaching is being provided through expert faculties
for the General studies and Optional Subjects. Series of group discussions and
presentations by the candidates on current events are regularly organized. Frequently test
on General Studies and Optional subjects Papers and Essay Writing are conducted to check
the performance of the candidates. Sardar Patel Institute of Public Administration,
Ahmedabad is conducting two Orientation Course each of 5 days for 200 students free of
costs for Graduates and Students who have appeared in the final year exam of Graduation,
to create awareness about Civil Services Examination (IAS/IPS etc.) conducted by Union
Public Service Commission. For Orientation Course Applications are invited through
English & Gujarati Newspapers. It is observed that success ratio of the civil service
examination could be improved if the students start preparation for examination right from
School level rather than after graduation as being the common practice in Gujarat. To
generate mass awareness amongst students at the early stage, SPIPA study centre conducts
In campus and off campus career guidance seminar throughout the State. If any
school/college is interested in arranging several carrier guidance seminars & if they contact
SPIPA, we will extend all kind of help. There are 53 candidates till date who have cleared
UPSC Examinations.
Source: www.spipa.gujarat.gov.in/
Author(s) Information
1. Assistant Professor, National Institute of Cooperative Management, Gandhinagar,
Gujarat. Email id: nisargnicm@gmail.com
2. Associate Professor, National Institute of Cooperative Management, Gandhinagar,
Gujarat. Email id:baser_narayan@yahoo.com
3. Associate Professor, National Institute of Cooperative Management, Gandhinagar,
Gujarat. Email id: drhsrathod@gmail.com
4. Associate Professor, P.G.Rao Institute of Management Studies, Veda, Gujarat.
Email id: apoorva3040@gmail.com
Volume 2 Number 2
ISSN : 2229 - 6743
STRATEGY MAP PERSPECTIVE: SERVICE LEADERSHIP

AT DREAM LABS
ASHOK K. SAR1
ABSTRACT
This paper covers the development of strategy map showing the
interrelationship among the organizations internal process and
intangible assets and differentiation advantage and demonstrates
how collection of integrated and aligned activities enable the firm to
offer a value proposition product leadership. The company is
referred to in this paper as Dream Labs (DL) in order to preserve
confidentiality of the material. After a brief discussion on the
background of generic strategy, competitive advantage of
differentiation and the company, the concept of strategy map and
balanced scorecard is defined, and the applicability of this concept to
DL is explored through three logical steps. First, the various
objectives in the four perspectives, viz., financial, customer, internal
processes and learning and growth are identified. Second, the
strategy map is developed by establishing the cause effect
relationships between the objectives identified in the 1st step. Finally,
measures and targets corresponding to each and every objective are
identified.
Keywords: Competitive Advantage, Differentiation, Strategy Map,
Balanced Scorecard.
Introduction
A firm differentiates itself from its competitors when it provides something unique that is
valuable to buyers beyond simply offering a low price (Porter, 1985). A firm is said to have
a differentiation advantage, when it has a superior customer willingness to pay as compared
to the industry average player, while maintaining suppliers opportunity cost parity or
proximity.
The opportunity of gaining differentiation advantage is based on the slope of the
indifference curve, reflecting the tradeoff by rational consumers between the quality and
price of products. Differentiation can be physical or perceptual. In reality, differentiation is
part physical and part perceptual. Differentiation is also seen from the point of view of
horizontal (uniqueness appealing a few) or vertical (uniqueness appealing a larger number
of people in the target segment). A restaurant or an automobile offers greater opportunities
for differentiation than products such as computer memory chips, cement, or wheat, which
are very much standardized. Such products are called commodities because they lack
opportunity for physical differentiation. However, even commodity products can be
differentiated in ways that create customer value: Anything can be turned into a valueIMT CASE JOURNAL, JAN - JUNE 2012
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Strategy Map Perspective : Service Leadership at Dream Labs
added product or service for a well-defined or newly created market, claims Tom Peters
(Peters, 1987). Cement is the ultimate commodity product, yet Cemex the Mexican-based
supplier of cement and ready-mix concrete, has established itself as the worlds biggest
supplier using a strategy that emphasizes building solutions. One component of this
strategy is ensuring that 98% of deliveries are on time (compared to 34% for the industry as
a whole), (Ghemawat, 2004).
A firm that follows a strategy of differentiation creates more value than its competitors by
offering products that have higher customer willingness to pay than its rivals. This can
happen in three qualitatively different ways. First, the differentiator can achieve
differentiation parity by making products with the same opportunity cost but at a higher
willingness to pay than its rivals. A good example is the Japanese automakers in the 1980s,
whose family sedans (e.g., Honda Acord) were no more costly to produce than Americanmade models but offered superior performance and reliability. Second, the differentiator
might achieve cost proximity, which entails a suppliers opportunity cost that is not too
much higher than competitors. This characterizes the Japanese car makers today relative to
their Korean competitors. Finally, a firm could offer substantially higher customer
willingness to pay and suppliers opportunity cost, which arguably describes BMWs small
car offering (their 1 series and 3 series compact sports sedans).
Ultimately, in the process of successful differentiation, the strategist very closely monitors
the behavior of the customers willingness to pay and the suppliers opportunity cost. A
close analysis of the value chain helps to gain insights into the drivers of the uniqueness as
well as the cost of such uniqueness, thereby choosing a set of value chain activities to focus
on. Balanced scorecard has been found to be a meaningful too to capture the associated
activities in the form of strategic themes/ objectives.
Formulation of a successful differentiation strategy takes us to two fundamental aspects of
business strategy. First, the product, i.e., what need does it satisfy, which takes us to the
product attributes. Finally, the customer, i.e., by what criteria do customers choose and
what motivates them. The differentiation strategy would then focus on selecting product
attributes and product positioning thereof; selecting target customer group; ensuring
customer/ product compatibility; and evaluating costs and benefits of differentiation.
Dream Labs
Background
It is a pathology laboratory organization of repute in India. It also has operation in the
Middle-east, Nepal and Bangladesh. Today, it is recognized as a premier clinical pathology
laboratory and a centre of innovation. Established in 1949, Dream Labs today is the most
respected and largest diagnostic service provider in India and enjoys equal respect in
overseas operations. For strict adherence to international standards and benchmarks, it has
a proven track record of almost six decades. Dream Labs offers more than 1,650 different
types of tests and has a pan India presence in all important locations in India, in the form of
patient service centers and state-of-the-art laboratories. It has over 1000 employee serving
over 7 million customers every year. Dream Labs has continuously focused its effort on
making its pathology services highly reliable, thereby gaining trust since 1949. Leveraging
the trust factor, it has emerged as one of the highest accredited laboratories in the country,
serving delightfully over 7 million customers per year. Using state-of-the-art technology
and highly skilled personnel, it aspires to continue to provide supreme quality of service
and continue to earn the trust of millions of people in the times to come. With its world-class
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Ashok K. Sar
diagnostic services, it aims to reach out to every nook and corner of India. And keeping
sight of its mission, it is rolling out well thought expansion plans to achieve this goal.
Key elements of the plan are:
Expansion into new markets - 150 Labs By 2013
Strategic alliances/ acquisition of existing players
Expansion in Public-Private-Partnerships (PPP) mode
Dream Labs had a long history of consistent growth in both earnings and revenues.
Executive management felt, however, that the company needed to become much better at
executing strategy. For Dream Labs, success at executing strategy meant two things: First,
it had to deliver financial success, defined by achieving a compounded annual growth rate
(CAGR) of earnings of 15 percent on a rolling five-year basis, while sustaining its historic
CAGR of 15 percent in revenues. Second, Dream Labs had to transform itself. Dream Labs
executives believed that their markets and their position in those markets provided an
enormous opportunity to shift from being a very good company to (in the words of Jim
Collins) being a truly great company, with differentiation focus. Becoming a great
company would require Dream Labs to sharply focus on what was strategically important,
to unplug a number of activities, and to be more clearly alignedfrom top to bottomas
an organization. Thus the approach is to create a strategy map capturing the cause and effect
relationship between key factors in the four perspectives and balanced scorecard
conceptualized by Norton and Kaplan.
Exhibit : 1 shows a generic strategy map for companies with differentiation advantage. This
is adapted from the work of Norton and Kaplan.
The key internal processes are in the innovation cluster. The companies must excel at
anticipating customers needs and discovering new opportunities for superior products and
services. They must maintain an optimal balance among (1) creating new scientific and
technological breakthroughs through fundamental research, (2) introducing these technical
breakthroughs through new product platforms, and (3) scaling-up their existing platform
products with not only incremental but still innovative derivative products. They must have
superb product development processes that bring new products to the market quickly. And
they must provide protection to their innovative products through excellence in patenting,
regulatory, and branding processes, (Norton & Kaplan, 2006.)
The operations management processes for companies with differentiation advantage are
not the lowest cost in the industry. The operating processes must, however, be robust so that
they can accommodate the continual introduction of new products. Such companies want
operating processes that can ramp up rapidly so that manufacturing capacity constraints do
not inhibit market-share penetration. Considering the changes in profile of customers, viz.,
their motivations and/ or criteria they choose, the operating processes must also be flexible
to allow for minor changes in product characteristics. This must be based on duly validated
feedback from the marketplace. The process should permit mid-way experimentation to
reduce and optimize manufacturing costs, once product characteristics have been
stabilized. All these features indicate that flexibility and improvement of operating
processes are more important to product leadership companies than production of highly
standardized products through low-cost operations. The price premiums from the
customized features of innovative products cover more than their somewhat higher
production costs incurred towards creating uniqueness. But inflexible operating processes
normally delay the production upgrade or introduction of innovative new products.
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Customer management objectives focus on two critical processes. First, companies with
differentiation advantage want to identify their key customers and listen to them and learn
about their expectations. In the process, they capture valuable insights product attributes.
The ability to listen and learn from customers in general and demanding customers in
particular would enable the company to generate new ideas for new capabilities. However,
quite often than not, new ideas do not always come from existing customers. It is because,
innovative product capabilities are very new and different from existing ones, and
therefore, even the most advanced customers cannot appreciate the benefits from enhanced
utility. So differentiators also need to be able to educate customers about the benefits from
improved functionality. The company through their customer engagement personnel must
be able to demonstrate how customers can capture the value from new product
characteristics being offered. Objectives that capture changes in customers own processes
may indicate the success from new product functionality.
Companies that continually introduce radically new products must be vigilant at managing
regulatory and social processes associated with their new products. Without much
experience in the production or customers usage of the new products, product leadership
companies must strive to avoid adverse side effects from their introductions. The
companies should have objectives relating to improving product safety, employee and
customer health, and environmental impacts from their short-run production of these new
products. Since the products of these innovation-based companies will typically have short
life cycles, these companies must be highly sensitive to the total environmental costs,
including product take back, over the life cycle of their products. And the companies must
have excellent government relations so that new products and services receive any
necessary regulatory approval, and that delays associated with regulatory approval are
minimized.
Strategy Map of Dream Labs
As a multi-location management company, each Dream Labs laboratory had a consistent
customer value proposition and a different way of creating value for those customers.
Therefore, Dream Labs had a collection of strategies (customer intimacy, operational
excellence, innovation) depending on the laboratory and its customer base. Its enterprise
strategy map was purposefully broad because it represented a portfolio of strategies
considering wide spread of the laboratories. The strategy map (see Figure-2)
communicated an equal balance between shareholder value and a passionate culture.
Whereas each Dream Labs laboratory had a different path for creating value, the corporate
strategy ensured that the financial, customer, internal process, and people perspective
priorities would be collectively advanced.
Vision: Dedicated to improve the health of patients through unsurpassed diagnostic
insight: The overarching vision was to maintain the highest ethical standards and quality;
and be the undisputed leader in providing world class diagnostic services.
Mission: Passionate about the kind of company we are building together: The
professional passion shared by Dream Labs employees makes the company distinct and
competitively vital. Sustaining passion would build superior shareholder value and
advance the goal of building an enduring company.
Our core values and purpose are the foundation of everything we do: Dream Labs core
values were common and shared across the firm. Everything Dream Labs did would be
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Ashok K. Sar
aligned with the core values and the strategy.

Value Proposition: Build superior shareholder value: Dream Labs would build superior
shareholder value over the long term by achieving a compounded average annual EPS
growth rate of 15 percent on a rolling five-year basis.
Based on the strategic direction capturing the vision, mission, core values and value
propositions, objectives in the four perspectives in the balanced scorecard were captured as
follows:
Financial Perspectives
F1: Grow revenues: Revenue growth was a key objective of financial success for driving
shareholder value. Dream Labs targeted a compounded average annual revenue growth
rate of 15 percent on a rolling five-year basis.
F2: Increase return on capital: Since Dream Labs was becoming a much more capital
intensive business; it had to become more disciplined and rigorous in its allocation of
capital. It would exit unproductive businesses and leverage technology to generate higher
returns.
F3: Grow operating margin: Dream Labs would manage operating expenses while
remaining prepared to spend if expenditures could advance revenues. Elimination of
inefficient, non-value-added activities was a priority.
Customer Perspective
C1: Build enduring relationships: All business units, despite different customers and
value propositions, would focus on attracting, growing, and retaining customer
relationships. Business units would deliver on customer value propositions that
emphasized intimate customer relationships, innovative solutions, and superior service
delivery.
Internal Processes perspective
I1: Better understand our customers and markets: In-depth customer and marketplace
knowledge would drive all Dream Labs processes. The marketplace included competitors,
suppliers, regulators, current customers, and prospective customers. Armed with this
knowledge, Dream Labs would be better able to enter new markets, offer innovative
solutions, meet expectations, and continually improve.
I2: Strategically enter new markets: This objective was the key for future growth
potential as Dream Labs brought valuable capital, knowledge, and networks to new market
opportunities. The timing for entering new markets was important and needed to balance
the effects of dilution with the life cycle of the market opportunity.
I3: Offer innovative solutions: Through internal efforts and partnerships, Dream Labs
would integrate science, research, and technology to deliver value-added innovative
solutions.
I4: Meet requirements and exceed expectations : Follow-through on customer
commitments was essential for building enduring relationships. Dream Labs would meet
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customer requirements for specifications and performance agreements, and always aim to
provide customers with an experience that exceeded their expectations.
I5: Continually improve safety, efficiency, and quality: To become a great company,
Dream Labs must find ways to continuously improve the safety, productivity, and quality of
its operations.
Learning and growth Perspective
P1: Attract and retain the right people: The key to Dream Labs continued success was
the ability to grow and develop its talent pipeline. The right people would have the
competencies and values consistent with Dream Labs culture and strategic objectives.
P2: Build a high-performance culture: Vital to the future of Dream Labs was fostering a
values-driven, high-achievement, and team-oriented culture in which people could fulfill
their potential.
P3: Enable the strategy through technology platforms: Technology was essential for
enabling the strategy. The right technology platforms would improve return on capital and
allow greater focus on building enduring relationships.
Balanced Scorecard: After establishing the strategy map which reflects the cause and
effect relationship capturing the essential objectives in the four perspectives, the balanced
scorecard is built. A part of the balanced scorecard is given in Table - 1. This essentially
gives the measures and targets for all the objectives. Once the measures are in place, setting
targets become straight forward and clear. The measures are based on the principles of
quantity/ quality/ time (QQT).
The Results
In 2009, DL set a goal to increase service revenue by 38% and ROCE to 22% by 2011. DL
launched the BSC in April 2009. Results for 2011 show that the major financial indicators,
including, cash flow from operations and core earnings per share were the strongest in the
past five years. Executive management attributed some of this success to the Balanced
Scorecard. It was noted, There is huge strategic value in using the strategy map and
Balanced Scorecard to clarify the role of a corporate strategy and to describe the strategy
and performance expectations of the laboratories, and Each of 1000 employees is now
linked to the strategy through individual or team Balanced Scorecards.. The strategy map
is given in Exhibit 2 and the balanced scorecard is given in Exhibit 3.
References
1. Hax, A. & Wilde, D. (2001). The Delta Project: Discovering New Sources of
Profitability in a Networked Economy (New York: Palgrave, 2001), 81104.
2. Porter, M. (1980). Competitive Strategy: Techniques for Analyzing Industries and
Competitors. New York: Free Press
3. Porter, M. (1996). What Is Strategy? Harvard Business Review (NovemberDecember
1996): 64
4. Porter, M. (1985). Competitive Advantage: Creating and Sustaining Superior
Performance. New York: Free Press.
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Ashok K. Sar
5. Treacy, M. & Wiersema, F. (1995). The Discipline of Market Leaders. Reading, MA:
Addison-Wesley, 1995
6. Kaplan, R. S. & David P. Norton, D. P. (2001). The Strategy-Focused Organization:
How Balanced Scorecard Companies Thrive in the New Business Environment
(Chapter 3, pp. 83-99). Boston: Harvard Business School Press.
7. Ghemawat, P. (2004). The Globalization of Cemex. Harvard Business School
Publishing: November.
8. Grant, R. M. (2010). Contemporary Strategy Analysis . John Wiley & Sons Ltd. Peters,
T. (1987)Thriving on Chaos (p.56). New York: Knopf.
9. Kim, W. C. & Mauborgne, R. A. (1997). Value Innovation: The Strategic Logic of
High Growth Harvard Business Review (January 1997), 103-112
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EXHIBITS
Exhibit 1 : Generic strategy map
Long-Term Shareholder Value
Productivity Strategy
Financial
Perspective
Revenue Growth Strategy
Manage Total LifeCycle Product Costs
Gross Margins :
New Products
Revenue from
New Products
Products and services that expand performance Boundaries into the highly desirable
Customer
Perspective
Operations Management
Internal
Perspective
High Performance Products:

Smaller, Faster, Lighter, Cooler,
More Accurate, More Storage,
brighter...
First Market
Rapid
Introduction
Products
Flexible
Robust
Process
Supply
capacity
for rapid
growth
Customer Management
In-time
Experimentation &
improvement
New Customer
Segment
Innovation
Educate
customers about
complex new services/
products
High
performance
product
development
Capture
customer ideas
for new products/
services
product
development
time : ideaMarket
Regulatory & Social

Minimize
product liability &
environment
impact
Contribute to
communities
Find, Motivate, Grow and Retain the best talent

A capable, Moticated and Technologically Enabled Workforce
Learning
and
Growth
Perspective
Human capital
Deep
functional
expertise
Creative,
versatile employees,
cross-functional
teamwork
informational capital
Prototyping
and
simulation
Source : Norton and Kaplan
PLM/
CAD/CAM
applications
Organization capital
Creativity,
innovation
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Ashok K. Sar
Exhibit 2 : The Strategy Map
Increase Return on
Capital
Grow Revenue
Motivated &
Prepared People
Internal Process
Customer
Financial
Build Superior Shareholder Value
Grow Operating
Margin
Build Enduring
Relationship
Strategically
Enter New
Markets
Meet Requirements
& Exceed Expectations
Offer innovative
Solutions
Continually Improve
Safety, Efficiancy &
Quality
Better understand our

Customer/Markets
Enable the Strategy Through Technology Platform

Attract & Retail the
Right people
Build High
Performance Culture
Exhibit 3: Dream Labs Balanced Scorecard

Objective
Measure
Target: 2011
F1: Grow Revenue
Service Revenue
Increase by 38%
F2: Increase Return on Capital
Return on Capital
Employed
Increase by 22%
F3: Grow Operating Margin
% of high margin services
Increase by 12%
Customer
Perspective
C1: Build Enduring

Relationship
Customer Satisfaction
Index
8 in a scale of 1-10
Internal
Perspective
I1: Better Understand our

Customer/Markets
Profit contribution by
segment
Market share in targeted
segments
Increase by 25%
I2: Strategically Enter New

Markets
Percent of leads converted

Cost per new customer
acquired
80%
I3: Offer Innovative Solutions
Number of new projects or

concepts presented for
development
Number of new valueadded services identified
38
Financial
Perspective
46% or increase by
20%, whoever is
higher
16
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Learning
and growth
Perspective
Objective
Measure
Target: 2011
I4: Meet Requirements &

Exceed Expectations
Quality ratings from premium customers

Time for customers to resolve concerns or complaints
Percent of customer queries
not satisfied by initial
respondent
Excellent: 75%
Very Good: 25%
48 hours
Less than 15%
I5: Continually Improve

Safety, Efficiency & Quality
Number of instances of
Less than 1 per
workplace related sickness/ month per Lab
injuries.
Cost per test
Reduce by 10%
P1: Attract & Retail the Right

People
Gaps between available

Less than 10%
and required competencies
in strategic job families
P2: Build High Performance

Culture
Achievement of Core
Values
Excellent grade in
staff survey: 80%
P3: Enable the Strategy

Through Technology Platform
Portfolio of IT applications
required of the strategy
100% (All Labs to

be covered)
Author Information
1 Faculty Member, School of Management, KIIT University, Bhubaneswar-751024, India.
Email id: sarashok@gmail.com
Volume 2 Number 2
ISSN : 2229 - 6743
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Volume 2 Number 2
ISSN : 2229 - 6743
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VOLUME:2

IMT CASE JOURNAL

INSTITUTE OF MANAGEMENT TECHNOLOGY, NAGPUR

Mohammed A. T. Alsudairi, T. G. K. Vasista

RAISING CAPITAL IN GLOBAL MARKETS:

TRIUMPH TUTORIALS SEARCH OF

STRATEGY MAP PERSPECTIVE:

Inder Sekhar Yadav

Nisarg Joshi, Narayan Baser, Harishchandra Singh Rathod

Dr. R .K. Jena

The final case, STRATEGY MAP PERSPECTIVE: SERVICE LEADERSHIP AT

The second case, SUCCESSFUL IMPLEMENTATION OF ELECTRONIC BILL

The first case, TRIUMPH TUTORIALS SEARCH OF THE TRIUMPHANT

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SUCCESSFUL IMPLEMENTATION OF ELECTRONIC BILL

adopted by Saudi Arabian Monetary Agency to fix failing and

IMT CASE JOURNAL, JAN - JUNE 2012

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ISSN : 2229 - 6743

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Lower CapEx due to reduced investments in infrastructure and software development

Improved cash availability resulting in increased interest revenue.

Improved customer satisfaction and image.

IMT CASE JOURNAL, JAN - JUNE 2012

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Lower costs due to:

Compensation from SADAD

Early positioning for e-Gov and e-Commerce initiatives.

Bankers and Billers join SADAD by performing On-boarding activities.

Detailed Impact Analysis

IMT CASE JOURNAL, JAN - JUNE 2012

ISSN : 2229 - 6743

the biller business requirements.

IMT CASE JOURNAL, JAN - JUNE 2012

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IMT CASE JOURNAL, JAN - JUNE 2012

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IMT CASE JOURNAL, JAN - JUNE 2012

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Source: SADAD Web site

Customer Facing Functions

Customer Alerts &

Bill Gathering &

Biller Info Mgmt

Bill Status Mgmt

Workflow Management, Security and Encryption

Billers communicate with

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Exhibit 4 : Customer Concerns vs No. of Customer mentions

Disconnection of service due

handling large amounts of cash

Having to keep track of multiple bills

Overcoming mistakes while depositing

Customer treatment by Bank staff

Channel Usage Trends

Channel Bill Query

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Exhibit 7 : Depicting the business case : Components and Integration of Electronic

IMT CASE JOURNAL, JAN - JUNE 2012

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RAISING CAPITAL IN GLOBAL MARKETS: A CASE OF SBI

The growing linkage between domestic and external markets has

IMT CASE JOURNAL, JAN - JUNE 2012

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