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BVR Mohan Reddy Receives 26th Annual Report 2016-17 DESIGN, Build, Operate & maintain Helping our clients succeed across their value chain in a complex, digital, and disruptive world Cyient’s technical expertise, domain knowledge, and service offerings differentiate us as a Design, Build, Operate & Maintain Partner who can fulfill greater needs and solve more problems. We leverage the power of digital technology to offer complete solutions across our clients’ value chains. Enhancing the quality, reliability, and performance of our client’s products, assets, and services Helping our clients stay agile and competitive through technology solutions and design led manufacturing Operate & Maintain • Aftermarket Services • Operations Support • Asset Management • Data Maintenance Partnering with our clients to design the next- Build generation of products, • Electronics & Mechanical networks, and systems Manufacturing • Systems & Applications • Geospatial Data Digital • Internet of Things • Analytics Design • Additive Manufacturing • Product Engineering • Mobility • Networks & Operations • Augmented Reality • Digital Reality com cyient. 2016-17 Chairman, BVR Mohan Reddy receives the Prestigious Padma Shri Award from the President of India, Shri Pranab Mukherjee March 30,Annual Report 2017 4 com cyient. I am honored that the Government of India has recognized me for my contribution in creating an Engineering R&D industry in India. As a first-generation entrepreneur, I view the Padma Shri* as an acknowledgement of my ability to build a sustainable global technology company and 2016-17 contribute to a digitally empowered society. - BVR Mohan Reddy *Padma Shri is the fourth highest civilian honor awarded by the Republic of India, after the Bharat Ratna, the Padma Vibhushan, and the Padma Bhushan. To date, 2,767 individuals have been conferred the Annual Report Padma Shri award, since it was instituted in 1954. 5 Cyient is actively engaged in investing in emerging technologies that are reshaping com several industries, and as cyient. a result will ensure your company’s growth. 2016-17 BVR MohanAnnual Report Reddy Founder and6 Executive Chairman The picture is taken at the Cyient Innovation Hub, Hyderabad Dear Shareholders, hand, we experienced demonetization in India (which did not have an impact on the IT-Business FY2017 was an exceptional year for Cyient. Process Management industry), while on the other Stakeholders around the world joined us in we witnessed Brexit and the U.S. elections. celebrating 25 years of your company’s remarkable journey. It is gratifying to see how Cyient has grown Many developed economies, including the U.S., from a small geographic information systems (GIS) UK, Singapore, and Australia, are enforcing company into a highly respected global technology protectionist policies with regard to movement of com player. Cyient has grown at a healthy pace and is skilled talent. From India’s perspective, we have an actively investing in emerging technologies and equal number of companies from developed nations cyient. capabilities that will allow us to address the future that are operating in the country. They view India as growth market. a large market. There is an imperative need to have a global framework within which trade and services I am happy to say that Cyient was unaffected by the are delivered. The World Trade Organization should geopolitical disruptions that occurred in FY2017. implement an amicable framework that would We remain focused on our strategy to grow in core enable global multinational firms to operate in markets and become a leading brand for design led different countries and provide a clearly defined set manufacturing and technology solutions. In order to of rules for movement of skilled talent. ride the wave of digital transformation, Cyient has been promoting an internal culture of innovation Setting geographic boundaries in the digital era and consciously investing in reskilling and upskilling is not conducive for global growth. Global leaders its workforce. Your company has continued to need to speak up and provide a level playing field for create positive social impact through various the growth of all economies around the world. digital-centric community initiatives. Recognized and respected for its corporate governance, your company has further strengthened its Board and Technology disruptions brought special focus to diversity and inclusion in Technology disruptions are redefining our its business. industries and customers, leading to pressure on many existing businesses while simultaneously Let me elaborate on each of these themes in accelerating new business, models, and value more detail. propositions. There are multiple factors that are amplifying digital technology disruption that in turn has led to an unprecedented wave of innovation in Disruption is changing our world almost every industry. Computation, storage and 2016-17 connectivity are becoming exponentially faster, We live in interesting and challenging times. cheaper and smaller. Collaboration, communication Volatility, uncertainty, complexity, and ambiguity are and consumption of similar technology platforms the new normal and have an extraordinary bearing across the developed and developing world on enterprise strategy and growth. The velocity is spurring global innovation. Today, with the of change has increased. Moore’s Law states that millennial generation having a high level of comfort the number of transistors in an integrated circuit in technology usage, employees now expect will double every two years, which also means the same ease of use at their workplace. This that the computing speed of devices will grow has led to the multiplier effect of technology. exponentially. This creates many new possibilities Individual technologies built on diverse platforms that did not exist a few decades ago. At the same are amplifying each other’s effects, setting the time, the predictability of change has decreased. stage for what some are calling a “fourth industrial Consequently, it is now harder to predict the future revolution.” of emerging technologies and resultant changes to market demands and customer expectations. The lifespan of technologies and organizations has Customers and markets are changing decreased significantly in the last few decades. Today’s customers have equal access to information and consider suppliers to be an integral part of their product and service ecosystem. They are willing to Geopolitical disruptions invest time to better understand their suppliers and The global political environment is constantly in turn also expect those suppliers to have in-depth creating new challenges and opportunities for knowledge about the their business. industry. However, these disruptions are likely to be temporary and cyclical. FY2017 was an eventful They look to suppliers as technology consultants Annual Report year at the local, national, and global level. On one with domain expertise and expect them to drive 7 projects with a shared vision. Business models are the basis of competition.” This award is a credible shifting from the traditional, labour-based, onsite- endorsement of Cyient’s growth strategy and offshore model to a cloud-based, off-premise acknowledges that our Design, Build, Operate & model. There is growing interest in non-linear Maintain value proposition is reshaping our industry models and there is greater appetite with vendors positioning and redefining our growth paths. to link revenues to business outcomes. I am also happy to share with you that our strategy Over the last year, we have also seen to pivot our organization towards an industry com decentralization of decision making. Buyers are vertical structure (business unit) from a geography changing their approach, as much as solution based structure has started paying off. We see cyient. providers are repurposing their businesses. increased ownership and growth momentum post Buy-side influencers are expanding beyond CIOs this alignment. to CMOs, COOs and other business leaders. In today’s fast changing world, innovation has Innovation become hygiene and is not limited to internal effort. Innovation is implicit in Cyient’s DNA and our Corporations are now leveraging a new ecosystem engineers have always strived to delight clients for innovation through acquisition, funding, with innovative solutions. During FY2017, we made incubation and collaboration. perceptible progress in enabling innovation across all the industries we serve. To continue nurturing a culture that focuses on innovation, we introduced Cyient is prepared for the disruptive the Idea Management Tool (IMT), a SaaS based environment enterprise system that enables leadership to solicit ideas from all associates, regardless of global Cyient has always embraced change and pioneered location. We also launched the New Technology many transformations to keep it aligned and Accelerator (NTA) program to incubate and grow focused on customer and market requirements. new technology ideas at Cyient. Disruptive forces have created new challenges that organizations need to address immediately through We renamed the Customer Experience Center to the right initiatives. In this context, Cyient has the “Cyient Innovation Hub.” This change aptly defined three focus areas (1) Strategy, reflects the innovation being executed in the (2) Innovation, and (3) Skills and Leadership to labs that are housed in this facility. There were navigate through its changing environment and two important additions to the Innovation
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