Industry Awareness & Exposure - II Tutorial Work on the Entrepreneur Narayana Murthy [CHIEF MENTOR OF INFOSYS] SUBMITTED BY:- HITESH G LALWANI Roll No. 16 HAILEY R PATEL Roll No. 14 HIMANI J SHAH Roll No. 15 FY-BBA (ITM) [SEM-2] ACADEMIC YEAR: 2010 – 2011 Date of Submission:- 13 th April 2011 SUBMITTED TO:- SARDAR PATEL UNIVERSITY VALLABH VIDYANAGAR
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
Transcript
Industry Awareness & Exposure - II
Tutorial Work on the Entrepreneur
Narayana Murthy[CHIEF MENTOR OF INFOSYS]
SUBMITTED BY:-
HITESH G LALWANI Roll No. 16HAILEY R PATEL Roll No. 14HIMANI J SHAH Roll No. 15
FY-BBA (ITM) [SEM-2]
ACADEMIC YEAR: 2010 – 2011
Date of Submission:-13th April 2011
SUBMITTED TO:-
SARDAR PATEL UNIVERSITYVALLABH VIDYANAGAR
FACULTY – IN –CHARGE PRINCIPAL
INDEX
SRNO PARTICULAR PAGE NO.
1 PERSONAL PROFILE:-
I. History and family BackgroundII. Education
3-5
2 PROFESSIONAL BACKGROUND:-
I. Work Experience II. How he became an EntrepreneurIII. Individual Milestones IV. Professional Achievements
6-12
3 GROWTH :-
I. Growth of EnterpriseII. Growth of company
13-16
4 PROBLEM & CHALLENGES FACED 17
5 METHODS FOR SOLVING PROBLEMS & CHALLENGES 18
6 SOCIETAL OUTLOOK:-
I. Society Contribution II. Support for Society
19-20
7 REFERENCE 21
8 CONCLUSION 22
1. PERSONAL PROFILE
I. History and family Background:-
Born on August 20, 1946, N.R. Narayana Murthy is a B.E. Electrical from University of Mysore (1967)
and M.Tech from IIT Kanpur (1969). Narayan Murthy began his career with Patni Computer Systems in
Pune. In 1981, Narayana Murthy founded Infosys with six other software professionals. In 1987, Infosys
opened its first international office in U.S.A.
Nagavara Ramarao Narayana Murthy better known as N. R. Narayana Murthy, is
an Indian businessman, software engineer and the founder of Infosys Technologies , a consulting and IT
services company based in India. He is currently the non-executive Chairman and Chief Mentor of
Infosys. He was the CEO of the company for 21 years, from 1981 to 2002. After stepping down as CEO
in 2002, he has broadened his scope of activities to social services as well as promoting India globally.
His estimated net worth is $1.6 billion as of 2010.
In 2009, his lectures delivered around the world have been published as a book “A Better India: A
Better World”.
One of the founders of Infosys Technologies Limited; Chosen as the World Entrepreneur of the Year -
2003 by Ernst and Young
Narayana Murthy is the Non-Executive Chairman and Chief Mentor of Infosys Technologies Limited. He
is a living legend and an epitome of the fact that honesty, transparency, and moral integrity are not at
variance with business acumen. He set new standards in corporate governance and morality when he
stepped down as the Executive Chairman of Infosys at the age of 60.
With the liberalization of Indian economy in 1990s, Infosys grew rapidly. In 1993, the company came up
with its IPO. In 1995, Infosys set up development centers across cities in India and in 1996, it set up its
first office in Europe in Milton Keynes, UK. In 1999, Infosys became the first Indian company to be listed
on NASDAQ. Today (in 2006), Infosys has a turnover of more than $ 2billion and has employee strength
of over 50,000. In 2002, Infosys was ranked No. 1 in the "Best Employers in India 2002" survey
conducted by Hewitt and in the Business World's survey of "India's Most Respected Company."
Conducted in the same year.
Along with the growth of Infosys, Narayana Moorthy
too has grown in stature. He has received many
honors and awards. In June 2000, Asiaweek
magazine featured him in a list of Asia's 50 Most
Powerful People. In 2001, Narayana Murthy was
named by TIME/CNN as one of the 25 most
influential global executives. He was the first recipient
of the Indo-French Forum Medal (2003) and was
voted the World Entrepreneur of the Year - 2003 by
Ernst and Young. The Economist ranked Narayana
Murthy eighth on the list of the 15 most admired
global leaders (2005) and Narayan Murthy also
topped the Economic Times Corporate Dossier list of
India's most powerful CEOs for two consecutive
years - 2004 and 2005.
His wife, Sudha Murthy née Kulkarni, is an Indian social worker and
accomplished author. She is known for her philanthropic work through
the Infosys Foundation. Her sister, Jayashree Despande is wife of
enterpreneur and founder of US-based Sycamore Networks, Gururaj
Deshpande. They have two children- Rohan and Akshata. Rohan is
engaged to Venu Srinivasan's (of TVS motors) daughter Lakshmi
Venu. Akshata Murthy is married to Rishi Sunak. Sudha Murthy helps
him in setting up his VC Fund by giving him Rs.430 crores which she
got by selling quarter of her stake 1.6% in Infosys. And Mr. Murthy is
the brother-in-law of serial entrepreneur Gururaj "Desh"
Deshpande and the uncle of former NASSCOM Chairman
and MphasiS chief Jerry Rao.
II. Education:-
N. R. NARAYANA MURTHY (Date of Birth : August 20, 1946, Education : B. E. Electrical '67, Univ. of
Mysore; M. Tech. '69, Indian Institute of Technology, Kanpur, India) is the Chairman of the Board and
Chief Mentor of Infosys Technologies Limited, a global Information Technology (IT) consulting and
software services provider, headquartered at Bangalore, India. He founded Infosys in 1981 along with
six other software professionals & served as the CEO of Infosys for twenty years before handing over
the reins of the company to co-founder, Mr. Nandan M. Nilekani, in March 2002. He served as the
Executive Chairman of the Board and Chief Mentor from 2002 to 2006. Under his leadership Infosys
was listed on NASDAQ in 1999.
Mr. Murthy is the chairman of the governing body of the Indian Institute of Information Technology,
Bangalore. He is a member of the Board of Overseers of the University of Pennsylvania's Wharton
School, Cornell University Board of Trustees, Singapore Management University Board of Trustees,
INSEAD's Board of Directors, Asian Institute of Management's Board of Governors and the Executive
Board of Indian School of Business. He is also a member of the Advisory Boards and Councils of various
well-known universities - such as the Stanford Graduate School of Business, the Corporate Governance
initiative at the Harvard Business School, the Yale University and the University of Tokyo’s President's
Council.
Mr. Murthy has led key corporate governance initiatives in India. He was the Chairman of the committee
on Corporate Governance appointed by the Securities and Exchange Board of India (SEBI) in 2003. Mr.
Murthy serves as an independent director on the board of the DBS Bank, Singapore, the largest
Government-owned bank in Singapore and on the boards of Unilever, NV and Unilever, plc. He is a
member of the Asia Pacific Advisory Board of British Telecommunications plc., and a member of the
Board of New Delhi Television Ltd. (NDTV), India. He serves as a member of the Prime Minister's
Council on Trade and Industry, and as a member of the Board of Directors of the United Nations
Foundation. He is an IT advisor to several Asian countries. He is also a member of the Board of
Trustees of TiE Inc. (Global), a worldwide network of entrepreneurs and professionals dedicated to
fostering entrepreneurship and Chairman of the Asia Business Council, a consortium of CEO-level
leaders with operations in Asia.
2. PROFESSIONAL BACKGROUND
I. Work Experience :-
His first position was at IIM Ahmadabad as chief systems programmer where he worked on a time-
sharing system and designed and implemented a BASIC interpreter for ECIL (Electronics Corporation of
India Limited).
After IIM Ahmadabad, he then joined Patni Computer Systems in Pune. Before moving to Mumbai,
Murthy met his wife Sudha Murthy in Pune who at the time was an engineer working at Tata Engineering
and Locomotive Co. Ltd. (Telco, now known as Tata Motors) in Pune. In 1981, with an investment of
Rs.10, 000 ($250 at the time) from his wife, he founded Infosys with six other software professionals. He
served as the president of the National Association of Software and Service Companies, India from 1992
to 1994.
II. How he became an Entrepreneur:-
Infosys was Narayana Murthy second attempt to become entrepreneur. Before starting Infosys, he tried
to establish one another company called Softronics, whose main target was domestic market. But that
venture failed and finally Murthy started looking into other options and then Infosys came into picture.
On July 2,1981, seven engineers working for Patni Computers, decided to start their own company.
Thus Infosys Technologies was born. There were six South Indians including Nandan and Murthy and
one Punjabi, Ashok Arora. Nandan Nilkeni always says that Infosys represents the revolt of South Indian
Brahmins against the north Indian banias (Businessmen) who dominated Indian business at the time.
Due to his technical skills and knowledge in the field of computer science, Narayana Murthy is often
considered as the best software engineer ever produced by India. He is M.Tech in Computer Science
from IIT Kanpur (1969 batch).
Sharad Hegde was Infosys' first non-founder employee. Before joining Infosys he was working in Patni,
Hegde was Infosys' tech-guru in its early years. He left the company only in the early 2000s
Most people in Infosys saw Phaneesh as Murthy's successor in the late 1990s and the early 2000s.
Actually he played major role in growing the company from a $10 million one to a $700 million one
between 1992 and 2002. Then, the sexual harassment suit (circa 2002, when a former Infosys employee
in the US, Reka Maximovitch, alleged that she had been harassed by Phaneesh) happened, and
Phaneesh had to leave the company. Now a days, he is CEO of iGate. He is an IIMA graduate.
The first minicomputer arrived at Infosys in 1983. It was a Data General 32-bit MV8000. The very next
year Infosys switched from mini to main frames with a CAMP application for a Data Basics customer.
Infosys got its first joint venture partners in Kurt Salmon Associates. Gopalakrishnan played the main
role in this joint venture. But it got collapsed in 1989 and Infosys came into almost dying stage.
Gopalakrishnan then told Murthy that they had nothing after eight years of trying to bring up a company.
Those who studied with us had cars and houses. The company was on the verge of collapse. One of the
founders of Infosys, Ashok Arora decided to quit. The other founders did not know what to do. But
Murthy had the courage of conviction. 'If you all want to leave, you can. But I am going to stick (with it)
and make it,' Murthy told them. This was actually courage and firm determination of Murthy, which finally
saved the company.
III. Individual Milestones:-
He served as the president of the National Association of Software and Service Companies, India from
1992 to 1994.Murthy has been the recipient of numerous awards and honors. In 2008, he was awarded
the Padma Vibhushan, a second highest civilian award by India and Légion d'honneur, the highest
civilan award awarded by France. In 2000, he was awarded the Padma Shri, a civilian award by
the Government of India.
He was voted the World Entrepreneur of the Year - 2003 by Ernst & Young. He was
one of the two people named as Asia's Businessmen of the Year for 2003
by Fortune magazine. In 2001, he was named by TIME / CNN as one of the twenty-
five, most influential global executives, a group selected for their lasting influence in
creating new industries and reshaping markets. He was awarded the Max Schmidheiny Liberty 2001
prize (Switzerland), in recognition of his promotion of individual responsibility and liberty. In
1999,BusinessWeek named him one of the nine entrepreneurs of the year and he was also featured in
the Business Week’s 'The Stars of Asia' (for three successive years - 1998, 1999 and 2000). In 1998,
the Indian Institute of Technology, Kanpur, one of the premier institutes of higher learning in India,
conferred on him the Distinguished Alumnus Award, and in 1996-97, he was awarded the JRD
Tata Corporate Leadership Award. He was awarded the Dean's medal by the Wharton School in 2001.
IV. Professional Achievements:-
In December 2005, Narayana Murthy was voted as the 7th most admired CEO/Chairman in the world in
a global study conducted by Burson-Marsteller with the Economist Intelligence Unit. The list included 14
others with distinguished names such as Bill Gates, Steve Jobsand Warren Buffett. In May 2006,
Narayana Murthy has, for the fifth year running, emerged the most admired business leader of India in a
study conducted by Brand-comm, a leading Brand Consulting, Advertising and PR firm.
The
Economist ranked him 8th among
the top 15 most admired global
leaders (2005). He was ranked
28th among the world's most-
respected business leaders by the
Financial Times (2005). He topped
the Economic Times Corporate
Dossier list of India's most powerful
CEOs for two consecutive years –
2004 and 2005.
TIME magazine’s “Global Tech Influential’s” list (August 2004) named Murthy as one of the ten
leaders who are helping shape the future of technology. In November 2006, TIME magazine again
voted him as one of the Asian heroes who have brought about revolutionary changes in Asia in the last
60 years. The list featured people who have had a significant impact on Asian history over the past 60
years and it included others such as Mahatma Gandhi, Dalai Lama, Mother Teresa, Muhammad Ali
Jinnah etc. He was the first recipient of the Indo-French Forum Medal (2003), awarded by the Indo-
French Forum in recognition of his role in promoting Indo-French ties. He was recently awarded the
Commander of the British Order (CBE) by the British government. He was awarded the IEEE Ernst
Weber Engineering Leadership Recognition in 2007, and he received the IEEE Honorary Membership in
2010.[6]. Also in 2010, in what is considered to the be the highest professional distinction for an engineer,
the American National Academy of Engineers (NAE) elected Murthy as a foreign member.
Murthy also holds over 26 honorary doctorates from universities across the world.
Murthy served as the founder CEO of Infosys for 21 years, and was succeeded by co-founder Nandan
Nilekani in March 2002. At Infosys he articulated, designed and implemented the Global Delivery Model
which has become the foundation for the huge success in IT services outsourcing from India.
He serves on the boards of various companies and universities
across the world. Murthy serves as an independent director on
the board of the DBS Bank of Singapore. This is the largest
government-owned bank in Singapore. He also serves as a
director on the Central Board of the Reserve Bank of India, as
the co-chairman of the place, and as a member of the Board
of NDTV, India. He also serves as an independent director on
the board of the European FMCG giant Unilever. He is an IT advisor to several Asian countries. He is
also an Independent Director on the board of HSBC. He also serves on the boards of the Ford
Foundation and UN Foundation. Indo-British Partnership, as a member of the Prime Minister's council
on trade and industry, as a member of the Asia Advisory Board of British Telecommunications He is the
chairman of the governing body of the International Institute of Information Technology - Bangalore, and
was the Chairman of the Governing Body of the Indian. In addition, he is a member of the Board of
Directors of INSEAD, Board of Overseers of the Wharton School of the University of Pennsylvania,
Board of Trustees, Business Advisory Council of Great Lakes Institute of Management -
Chennai, Singapore Management University Board of Trustees and the Board of Advisors for the William
F. Achtmeyer Center for Global Leadership at the Tuck School of Business. Mr. Murthy also sits on the
Board of Governors of the Asian Institute of Management (AIM), a graduate school of business located
in the Philippines and is also the Chairman of the Board of Members of School of Management , Asian
Institute of Technology (AIT) located in Bangkok, Thailand. He is the chairman of the, Asia Business
Council, an organization headquartered in Hong Kong.
He is also a member of the Advisory Boards and Councils of various well-known universities – such as
the Stanford Graduate School of Business, the Corporate Governance initiative at the Harvard Business
School, Cornell committee on academic affairs and committee on alumni affairs and
development, Yale University and the University of Tokyo’s President's Council.
Murthy retired from his executive position at Infosys on 20 August 2006. However, he continues as the
Non-Executive Chairman of the board. Murthy started a new venture capital fund called Catamaran
Venture Fund with the money he got by selling 800,000 Infosys shares worth 174 Crores. Sudha Murthy
does it again by helping him in setting up his VC Fund by giving him Rs.430 crores which she got by
selling quarter of her stake 1.6% in Infosys.
Mr. Murthy is a member of the National Information Technology Task Force of India, and also of the
Prime Minister's Council on Trade and Industry. He is a Director on the board of the Reserve Bank of
India (RBI) TURNING POINTS OF MURTHY
The idea of Infosys was born on a morning in January 1981. That fateful day, N R Narayana Murthy and
six software engineers sat in his apartment debating how they could create a company to write software
codes.
Finally, it was Murthy turn. He spoke about our journey from a small Mumbai apartment in 1981 that had
been beset with many challenges, but also of how he believed they were at the darkest hour before the
dawn. He then took an audacious step. If they were all bent upon selling the company, Murthy said, “I
would buy out all my colleagues, though I did not have a cent in my pocket.”
There was a stunned silence in the room. Murthy colleagues wondered aloud about his foolhardiness.
But he remained silent. However, after an hour of his arguments, his colleagues changed their minds to
Murthy’s way of thinking. He urged them that if they wanted to create a great company, they should be
optimistic and confident. They have more than lived up to their promise of that day.