David vs Goliath: What it takes to build an organziation in the midst of giants, Kumud M. Srinivasan President, Intel India & ViP Technology & Manufacturing Group, Intel Corporation,

Leading in India Kumud Srinivasan, President Intel India March 2015

India: a go-to-location for R&D

Note: 363 R&D Centers in India; LSI Logic Has been acquired by Avago; Map not to scale Source: NASSCOM Booz ER&D Report; Lit Search; Zinnov MNC R&D Landscape in India

0

10

20

30

40

$50B

2014E

12

2020P

35-40

India Engg. R&D exports ($B)

INDIA: STRONG R&D CAPTIVE GROWTH

• 45% of Top-500 Global R&D spenders in India

• 29 Semiconductor MNCs, with 46 R&D centers in India

But India evolving…

Govt. as enabler

Providing service Creating IP

Large IT giants Startups

>90% customers outside Local focus

Low literacy Digitally literate

Govt. as watch dog

An Inflexion Point for MNC R&D

Challenges

A market with growing unique needs

An ecosystem with emerging opportunities

A government that is radically different

An environment that is increasingly competitive

Opportunities

Influencing HQ to think local

Investing in new partnerships

Having bold ‘asks’ of the

govt.

Leveraging India for cost & value

0%

5%

10%

15%

20%

25%

0

20

40

60

80

Q3'11 Q3'14

Millions

Units

MSS

Why Think Local?

Micromax Canvas Unite – supports 21 different languages

Local Brands Smartphone Growth in 3 years

Sources: IDC SCD Tracker Q3’14

R&D COST

TIME TO MARKET SCALE ENTRY

BARRIER

BUSINESS MODEL

SERVICES & SOLUTIONS

SOFTWARE PLATFORM

FASTEST LARGE

HIGHEST SLOWEST

LOWEST

SMALL

LOWEST

HIGHEST

“Not Your Father’s Oldsmobile”

*Other names and brands may be claimed as the property of others. All dates, plans, features, and specifications are subject to change without notice. © Intel Corporation. All rights reserved.

Intel® Sensing Platform for Health Reference Design

Intel® Sensing Platform -based solutions for Emerging Markets

MNC R&D at the Table: Asks of Govt.

Robust Infrastructure • Essential services – as

for medical industry

Ease of Operation • From license-permit

regime to self-compliance

Investments & Incentives • Same as Local R&D centers

Budding Aspirations Zinnov Zones - Leading Service Providers

Nurture Zone Breakout Zone Execution Zone Leadership Zone High

Scalability

Low

R&D Practice Maturity

Innovation

Eco-system Connect

R&D and PES as a focus area

Innovation, it at all, in process automation

Generic – MoUs with universities and alliances

On the way into big league, delivering R&D services effectively, tear down, purpose fit labs

Innovation frameworks resulting in tangible benefit to customers

Specific industry alliances, partnerships and membership in global forums

Capable of delivering complete product development as a true engineering partner, customer labs

Reusable IP’s built, and benefits quantified

Alliances with Customers who are industry leaders

Capable of performing concept to Go-to-Market for the product-significant investment in Lab infra

Formal innovation culture, resulting in IP’s and strategic innovations

Leadership role in alliances, leverage startups, specific academic research, and co-creation with customers

GlobalLogic

Infotech Enterprises

Tata Elxsi

L&T TS

Symphony Teleca

Infosys

Mindtree

HCL

Wipro

TCS

eInfochips

Sasken

*Source: Zinnov Research & Analysis

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Phase II: Leading

Phase III: Giving Back

Individual Contributor

Middle Level Manager

Director General Manager

First Line Manager

VP

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15

A Long Route Back Adapted from Bill George, "True North"

Phase I: Preparing for Leadership

Becoming Intelligent

Global Solutions Work Not quite!

Govt. is incompetent These ‘bureaucrats’ are impressive!

People are there for the asking

We are going to have to ‘sell’ ourselves

Govt. owes us the ecosystem Let’s get in there and make

things happen

How different can it be?

Small tweaks go a long ways

India from US India in India

A Bigger Bag of Skills

Creating win-win ties “It takes a village…”

Influencing HQ One foot here, and one there

Connecting internally High-touch

Holding Strategic Discussions

Local (India)

Regional (Emerging)

Global

High Low

HOW DIFFERENTIATED IS INDIA TO SERVE THE MARKET?

WH

AT

MA

RK

ET A

RE

WE

SER

VIN

G?

At-Par

• How do we accelerate Intel’s growth in India?

• How can we extract full potential from India’s R&D assets?

• How do we seed IA as a platform of choice in India?

Finding My Voice

Thank You