OSSCube: Deciding on the Levers of Growth
In November 2015, the co-founders of OSSCube Solutions Ltd., an Indian-based information technology (IT) solution provider, faced the risk of shrinking and uncertain profits if they continued with their open source solution strategy. Changing to non-open-source technology would entail re-positioning the company in the minds of employees and customers. The re-positioning could lead to a more stable revenue stream and open up access to larger customers. However, it could also attract severe competitive retaliation and cause the company to lose clients and employees. The challenge of evolving the organization from a technology focus to a customer focus was further complicated by an increasing trend for customers to rationalize their IT vendor list. The co-founders needed to decide whether to expand their business scope now or postpone the decision. If they went ahead now, they needed to address the timing and sequence of the change.
Collection: Ivey Business School (Canada)
Ref: IVEY-9B17A041-E
Format: PDF
Number of pages: 11
Publication Date: Jul 26, 2017
Language: English
Review date: Jul 26, 2017
What material is included in this case:
Description
In November 2015, the co-founders of OSSCube Solutions Ltd., an Indian-based information technology (IT) solution provider, faced the risk of shrinking and uncertain profits if they continued with their open source solution strategy. Changing to non-open-source technology would entail re-positioning the company in the minds of employees and customers. The re-positioning could lead to a more stable revenue stream and open up access to larger customers. However, it could also attract severe competitive retaliation and cause the company to lose clients and employees. The challenge of evolving the organization from a technology focus to a customer focus was further complicated by an increasing trend for customers to rationalize their IT vendor list. The co-founders needed to decide whether to expand their business scope now or postpone the decision. If they went ahead now, they needed to address the timing and sequence of the change.
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Year: 2016
Geographic Setting: India; United States
Industry Setting: Professional, Scientific, and Technical Services;
Learning Objective
This case is suited for various management disciplines in post-graduate management programs. Because it deals with change in the business environment, the case works well for executives in short-duration management development programs. It can be used in introductory marketing, strategy, and entrepreneurship courses. The case deals with the challenges faced by smaller organizations focused on niche technologies that are shifting their client base or making changes to become more customer-centric. It gives students an opportunity to ·recognize why a company may need to make changes in its target market in response to the changing needs of stakeholders and the need to grow the company; ·analyze the risks of changing a company’s target market and scaling up the business; ·discuss the challenges in shifting from a technology-focused to a customer-focused organization; and ·consider strategies for repositioning a company in the minds of its employees and customers.
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