Executive Digest #5 by Luxoft Software Development Company

EXECUTIVE DIGEST ISSUE 5 | 2013

Luxoft Launches IPO

A L e t t e r F ro m t h e E d i to r

PUBLISHER PIOTR GOLCZYK

EDITORIAL BOARD DMITRY LOSCHININ, CEO ALINA PLAIA, VP Global Communications PRZEMEK BERENDT, VP Global Marketing

Roberta Hummel EDITOR

EDITOR

Celebration, a singularity of vision, and a sense of growth characterizes this issue. When I first met the energetic IT innovation wizard Dmitry Loschinin, Luxoft’s legendary CEO, his reputation as a Global Outsourcing IT guru preceded him. I was indeed curious. Was this guy The Real Deal like everyone said, I was happy to find out he is indeed. Luxoft is in good hands.

As you will see in these pages Luxoft does have reason to celebrate. The market is indeed hungry for companies with real growth potential and Luxoft consistently demonstrates that potential.

We have launched several new sections to the Luxoft Executive Digest in this issue. You will find industry insights as our new Business Thinking Book review both inspires and provokes.

You catch a glimpse of Luxoft’s innovative corporate culture and growth in our Fight for Brain Power, Corporate Social Responsibility and Spotlight on Location sections. As always you will discover the latest IT trends and advancements in our features on Technology, Industry Interviews and Events to Be Noticed.

Luxoft’s Executive Digest is ever evolving to provide you the most valuable industry news, shared expertise, innovation and creative solutions across six dynamic industries including Finance, Automotive, Telecom, Aviation & Travel, Technology and Energy.

ROBERTA HUMMEL

EDITORIAL & MARKETINGTEAM ALEX LEONOV DAMIAN GUCZA ZHENYA SUSHKOVA ALLA POPOVA CONTRIBUTORS: VASILIY SUVOROV YURIY SHVALIK DR. TIMOTHY PATITSAS ROGER LANCTOT

DESIGNER Piotr Gawiński, JAKUB BIEDA & Dominik Dudek with www.airtemys.com

10-3, 1-Volokolamsky proezd

Sincerely,

Roberta Hummel

rhummel@luxoft.com

123060 Moscow, Russia Tel: +7 495 967 8030 Email: LuxoftWeekly@luxoft.com www.luxoft.com

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executive digest #5

Executive Digest Volume 5: Celebrating IPO

4

COVER STORY: INTERVIEW WITH LUXOFT’S CEO BEING THERE ON THE DAY of the Launch

10

LEGACY TIL TODAY

12

SOLUTIONS

14

BUSINESS THINKING Book Review: Be Inspired & Provoked

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CREATING A SITUATIONAL HMI FOR NEXT-GEN DEVICE INTEGRATION

24

GENIVI ALLIANCE AND HMI DEVELOPMENT

27

CASE: FORD STEALS the GENIVI LIMELIGHT in BARCELONA

30

winning the war FOR BRAIN POWER

34

Building a Better IT World & Beyond: Corporate Social Responsibility

40

EVENTS TO BE NOTICED

43

SPOTLIGHT ON LOCATION

45

LATEST HYPE

48

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COVER STOR Y

Celebrating Growth & Innovation Luxoft Launches IPO

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Interview with Luxoft’s CEO

Dmitry Loschinin

Dmitry Loschinin CEO Luxoft

In today’s world talking about business growth, innovation and values are not usual things to be in the same sentence. With Luxoft that is not the case. Luxoft’s rapid growth over the past almost 14 years is giving the company an impressive legacy.

Early on, Luxoft learned that clients today need not only quality outsourcing but innovation. Luoxft’s history is marked by successive innovative steps made with a commitment to excellence and the IT sophistication of the emerging field of self-assembly or 4Dprinting.

The recent launch of an IPO was a historic moment for Luxoft. It was a moment to recognize and celebrate its rapid corporate growth. One can get an inside look at Luxoft, as it launched an IPO and celebrated its growth as a global IT solutions provider by talking with CEO Dmitry Loschinin.

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Interview with Luxoft’s CEO Luxoft Reporter (LR): Why did Luxoft choose to launch an IPO? CEO Dmitry Loschinin (DL): There were several reasons behind our decision including a desire to increase our transparency, visibility and credibility by becoming a public company on the New York Stock Exchange and enter the league of global leaders. Becoming a public company has given Luxoft the financial flexibility to support continued and extensive business growth. Launching the IPO provided liquidity for shareholders. And of course, going public offered more long-term motivation for Luxoft’s key personnel.

(LR): What did you learn in the process of preparing and launching an IPO? (DL): One lesson that I learned was that “right timing” in launching this process is essential. I also believe that despite the many parties involved it is really only the key management who can make an IPO successful. Perhaps, however, what is even more important is to speak the language of investors and emphasize the parts of your investment story that fit into their investment mandate and really relate to the overall landscape investors see in the particular industry.

(LR): How did the story of Luxoft’s IPO launch get picked?

(DL): The story of Luxoft’s launch was actually very well accepted. Nobody questioned the strategy and business potential of Luxoft. Most of the investors were excited to see a new growth opportunity in the technology sector listed in the U.S.A. They recognize the potential of smaller specialty providers like ourselves, underpinned by the ever-increasing velocity of technological change.

They recognize the potential, believe in our capability to execute and want to be a part of it!

(LR): What was the reaction of the market?

(DL): The market is hungry for a strong growth story driven by capable and seasoned management. Luxoft was more than 5 times oversubscribed with a very high quality investor base. Our newly listed stock experienced 20% of growth over the first trading day and a 45% increase two months after the IPO launch.

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Interview with Luxoft’s CEO

“

We are so laser-focused on becoming what you could call a go to provider that we have invested in and are committed to further developing industry-focused solutions and creating efficient teams of seasoned subject matter experts in order to be ready to deploy them.

(LR): What was your vision when you started Luxoft?

(DL): Well, at the end of the 1990’s I witnessed many very skilled and talented software engineers in Russia and other Central Eastern European countries struggling to find jobs, while the global demand for such skills was growing. Thus, the vision was very simple – to unleash this talent potential and create an IT services company that would successfully match the intensifying global demand with the local supply of talent thereby competing with the best players in the world.

(LR): What were the most exciting and daunting aspects of launching the IPO? (DL): I have to admit that the most exciting part was to ring the bell at the NYSE and see our gigantic banner with our Luxoft logo and Luxoft Bear across the Wall Street building entrance. The daunting aspects included the enormous management overhead to launch the IPO and managing all the parties involved. This meant being able to attend to the process while running and growing the day-to-day business operations.

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Interview with Luxoft’s CEO (LR): How would you express Luxoft’s mission statement and how you do see it carrying Luxoft into the future?

(DL): I see Luxoft’s key mission as becoming an IT services powerhouse for our key verticals that include the finance, travel & aviation, automotive, telecom, technology and energy industries. We want to be the provider of choice within certain segments of those verticals. Good examples already include the in-vehicle connectivity and HMI solutions for the automotive industry or risk, compliancestructured products, and reference data within the financial world. We are so laser-focused on becoming what you could call a “go to “ provider that we have invested in and are committed to further developing industry-focused solutions and creating efficient teams of seasoned subject matter experts in order to be ready to deploy them.

(LR): Growing Luxoft into the next generation of IT global service providers, what do you see as future challenges?

(DL): I see Luxoft’s future success and challenges in its continual transformation. In my opinion this transformation into a next- generation global IT service provider includes Luxoft transforming from a pureplay approach to being a software services outsourcing vendor to being a solution provider of choice.

(LR): What are Luxoft strengths going into the next generation of IT global solutions providers?

(DL): Our strength going forward is definitely our management team, as well as our loyal client base of global enterprises, some of whom have been collaborating with us for over a decade. Equally important, I would say, is Luxoft’s strong drive and focus on providing deep vertical and domain expertise to a global client base (marquee logos, with deep and diversified service provision for each). This focused drive excels in providing high quality software development capabilities, the ability to scale and win by the power of engineering IQ capital, agility expertise, and indeed, the readiness to change and respond swiftly to the pressing needs of clients. u

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“

I see Luxoft’s future success and challenges in its continual transformation.

In my opinion this transformation into a next- generation global IT service provider includes Luxoft transforming from a pure-play approach to being a software services outsourcing vendor to being a solution provider of choice.

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Being There On the DAY of the Launch

Being There On the DAY of the Launch A Luxoft Executive Digest Reporter asked a Luxoft employee attending the IPO launch to share her impressions.

Irina Collazo is the Human Resource Manager for Luxoft in the U.S.A. Irina overseas the day-to-day HR operations and strategic direction of Luxoft’s HR in the U.S.A.

How would you describe the experience of being on the NYSE floor?

I’ve lived in NYC for the past 13 years and this was my 1st time at the NYSE. It felt great to be in that historic landmark and to rub shoulders with traders and business reporters. We first had breakfast in a very beautiful conference room upstairs, and then we were led to the floor for the ringing of the bell. There was a lot of energy and excitement in the air. The moment was captured on film by the cameras and lights surrounding us.

What was the reaction of people to Luxoft’s launch?

I remember that after our senior executives rang the bell, everyone was clustered around the big TV monitors that showed our company NYSE ticker symbol and the initial share price. People had their smart phones in their hands taking lots of pictures of it, hoping to catch a spike in the price. We all clapped when we saw that our stock started trading.

Irina Collazo Human Resource Manager Luxoft U.S.A

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Being There On the DAY of the Launch What was your reaction to this historic moment for Luxoft?

“

It is an honor and an once-in-a-lifetime opportunity to be working in a company as they go public. Given the size of Luxoft and how geographically dispersed we are around the world, I felt lucky to be located in NY. I happened to be in the right place at the right time.

There was a lot of energy and excitement in the air.

The moment was captured on film by the cameras and lights surrounding us.

What results do you see from Luxoft’s going Public?

As a result of going public, I see several benefits for Luxoft; for one, the company’s prestige increased, our capital base was also strengthened, and now any one of us can be part owners if we buy shares. u

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Luxoft Legacy Til Today

2013 Luxoft is listed on the New York Stock Exchange, following an initial public offering of 4.1 million shares, at $17 each.

Luxoft Opens its 19th Global Office and Appoints Managing Director in Stuttgart, Germany.

2012

2011

2010

2009

Luxoft opens a new office in Menlo Park,CA

Launch of DMFusion and iviLink technology platforms.

Luxoft establishes development Center in Welwyn Garden City, UK to target Telecom vertical clients and a delivery center in Krakow, Poland.

Luxoft opens global Network Operations Center in Romania to better serve European and North American Telecoms clients; launches Energy vertical; formalizes Agile practice.

Luxoft launches a New R&D center in Germany focused on Human Machine Interface Development.

New Clients: Delphi.

New clients: Bosch, Citi, HP, Ford.

New clients: Juniper, Ericsson, SITA.

New clients: Atmel, Hirschmann.

Luxoft’s acquires certain assets and open-source solutions of Freedom OSS, which delivers practical business results using wide range of open source technologies to clients in the USA.

2008 Acquires ITCN to strengthen Telecom vertical expertise and Romanian presence; establishes delivery centers in Ho Chi Minh City, Vietnam.

Luxoft acquires Romanian company, ITC Networks.

New clients: Bank of America Merrill Lynch, Avaya, DHL.

2007 Launches Telecom and Travel & Aviation verticals; establishes delivery Centers in Dnepropetrovsk, Ukraine.

Luxoft launches a vertical-focused strategy and founded Financial Services, Technology and Automotive practices.

Luxoft soon adds Telecom and Travel & Aviation and Energy as key verticals.

New clients: Coverity.

New Clients: Brookfield.

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Luxoft Legacy Til Today

2006 Luxoft launches Automotive & Transport vertical.

Luxoft opens an office in Odessa, Ukraine and receives the status of Microsoft Gold Certified Partner. The company acquires New Yorkbased IT Consulting International.

2005

2004

2003

Launches verticalfocused strategy and founds Financial Services and Technology vertical practices. Luxoft establishes delivery Center in Kiev, Ukraine.

Establishment of a Delivery Center in St. Petersburg, Russia; opened sales office in London, UK

Establishes Luxoft Labs in Moscow; Luxoft opens sales office in New York, US; receives CMMI-DEV v1.2 Level 5 certification.

New clients: Alstom.

2002

2001

Receives CMMI Level 4 certification; establishes Training Center.

Establishment of first Delivery Center (regional office) in Omsk; opened sales office in Seattle, US.

New clients: Dell.

New clients: Intel.

New clients: Rosbank, T-mobile.

New clients: Jeppesen.

2000 Luxoft is established in Moscow as a subsidiary of IBS Group in April 2000. Luxoft launched immediately as a potential global IT service provider under the leadership of current CEO Dmitry Loschinin.

Luxoft establishes its first US office in Montvale, CA.

New clients: UBS, Alcatel-Lucent, Hotwire, Harman.

New clients: Boeing.

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solutions

Solutions Are Now Luxoft’s Business Luxoft creates business solutions for large global and Fortune 500 companies that span from corporate application development, to a full implementation Reference Data Practice, to managing your “hybrid cloud.”

Our customers “smart-source” Luxoft’s expertise and innovation in order to improve their core products, platforms and applications.

We enable our clients to improve their competitive position by increasing efficiency, shortening time to market, and enhancing their end user experience by Luxoft’s advanced technology services in six industry verticals which include finance, automotive, telecom, technology, travel & aviation and energy.

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solutions

Luxoft’s Reference Data Practice: Data Solutions That Work some of the world’s leading financial institutions. Luxoft can support you at every stage of your reference data initiative.

The systems we have already engineered manage Legal Entity, Client, Instrument, Pricing, Account, Product and Books in profoundly demanding financial industry environments across the globe. Our Client Onboarding and Know Your Customer applications have thousands of users, regulations and rules from dozens of jurisdictions world-wide, millions of documents, and are used to onboard or modify the records of several thousand clients per month. u

Global financial institutions have collaborated with Luxoft to create the innovative banking technology needed to compete in today’s world market. Luxoft’s expertise in Reference Data is based on years of IT experience in the Financial industry working with banks including UBS, Deutsche Bank, Citi, and Credit Suisse. Luxoft provides end-to-end data management solutions that give you the quality and reliability your business requires. Whether you are a global investment bank, a government agency, an asset manager or a research firm, our experts are at your service. We have over 400 IT engineers and analysts who have built solutions for

Complex and Volatile Markets Demand Technology That Moves You Forward partner for success. Luxoft is good at paving the way for re-entry into the securitized products market for global investment banks or helping a global rates business account for collateral impact in pricing. In short, Luxoft’s FICC Practice can analyze your needs, design a strategy, and build the tools you need with application development and maintenance, all to maximize your trading profits and minimize risk. u

Complex and volatile markets demand technology that moves you forward, not holds you back. Luxoft Markets/ABS gets it. We know the ABS business. We understand business critical. We move quickly. And, we deliver on time.

Do you find yourself mining loan data to find undervalued bonds, launching a new shelf, or enhancing risk analytics for the latest regulatory demands? Our management team with 60+ years of securitized products experience is your

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solutions

Horizon - Luxoft’s Risk Visualization Framework Offers Unparalleled Precision & Innovation In a Big Data world it is critical data that provides the competitive advantage. Luxoft’s Horizon offers a “Visualization Layer” on top of your data-marts providing visual simplicity and more informed timely & strategic decision-making.

Horizon is a next-generation Visualization Framework, providing innovative and graphically-rich User Interface: Appbased approach, high performance, secure, 100% mobile and highly customizable, Horizon allows decision makers to bring risk transparency to a new level and follow key risk indicators that are pertinent to their area of business across trading and banking. Imagine that in just 4 clicks, starting from the consolidated Market Risk exposure of the firm, you can drill-down into patterns and causes of a limit breach. An enterprise-wide financial data & risk-portfolio for executives, Horizon is the perfect mix of business and technology, producing powerful visualization and fast delivery. u

iStockTrack Mobile Platform for Financial Data Visualization iStockTrack is a finance data visualization platform that allows the accelerated development of branded financial mobile applications equipped with portfolio tracking tools and instant access to news, market data and events from a trusted source of information. By adopting iStockTrack functionalities, you can compare the latest market data across major indices, currencies, commodities and market movers according to your preferences. iStockTrack allows you to integrate the latest news on one screen with up to 10 categories including: stocks & markets, investing, business, startups, companies, world politics and more. iStockTrack is easily scaled and customized to fit the unique requirements of the client, significantly reducing the timeto-market and overall development costs for new and updated products. u

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solutions

Discover Luxoft’s Latest HMI & Car Connectivity Solutions AllView – Luxoft’s reference design platform for creating in-vehicle user experience (UX) links together instrument cluster, head unit and mobile devices. AllView enables automakers to optimize the car user experience and improve safety by reducing driver distraction, while encouraging third-party app development. It is a cost-efficient solution that can bring hi-end features and look & feel to mass market vehicles. AllView offers market leading visual design for modern “consumer” look & feel, covering wide demographics - from novice to enthusiast driver. The reference platform incorporates the latest technology, including WebKit, Blink, HTML5 and more.

the road today. TEORA comes with a perfectly aligned tool chain, including tailor-made applications with interfaces to standard platforms, such as Adobe Photoshop or Flash, to transfer simple graphics into interactive objects in the most efficient way. The multi-rendering approach enables a seamless integration of mixed 2D, 3D, Adobe Flash and HTML5 content in one platform to match our customers’ requirements perfectly. TEORA has already been ported to Windows, QNX, and Linux.

SmartDeviceLink Profiles (SDLP) – an Open Source car

connectivity technology that uses GENIVI’s SmartDeviceLink as a transport protocol. SDLP enables OEMs, suppliers and application developers to easily create apps that will work seamlessly on both car’s head unit and a mobile device. Luxoft’s SDLP facilitates the development of new applications and adds new capabilities to SmartDeviceLink, which allows more flexible technology integration into different systems and further enriches the OEM-branded user experience. u

TEORA – A software platform that Luxoft uses to devel-

op scalable, appealing, and swift-to-market car HMI implementations. TEORA is Luxoft’s “knowhow” that powers the development of new UX and HMI projects and benefits our clients by helping to achieve significant time savings. TEORA-generated code is used in millions of cars on

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solutions

Telecom: Twister.

Open Source Test Automation As a pioneer in testing innovation, Luxoft proudly created Twister, an open source test automation framework developed specifically for the enterprise communication market.

Twister presents a hybrid open source solution that offers a compelling blend of an open source platform and fully supported toolset ensuring convenience and efficiency.

Using Twister, engineers can start testing immediately and eliminate the need to re-create specific test frameworks.

Twister provides telecom equipment vendors, enterprise data service providers and data system integrators a distributed, comprehensive, and open platform to increase their operational productivity while testing telecommunication specific devices, such as routers, switches or PBXs.

Twister delivers adaptable test automation frameworks in the Cloud, or hybrid cloud, ensuring efficiency. To top it off, Luxoft is at the forefront of engineering development services in Software Defined Networking (SDN) an emerging area of advanced networking and network applications. By partnering with Luxoft engineering services you can expedite time-to-market by leveraging Luxoft’s SDN expertise. u

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solutions

Energy Management Systems: DMFusion A Big Data Rescue Solution

Demand Response Needs a Communication Partner: DMMessenger With DMMessenger you can have a partner in relationship management with energy consumers.

As energy contractors, utility companies and governments try to avoid overwhelming electrical thresholds they need the business intelligence to make cost effective solutions.

DMMessenger allows you to classify consumers utilizing Big Data Analytics. With the knowledge gained by demand response and demand management, and energy management, it is essential to be able to communicate directly with consumers. You need to have consumer profiles which you can upload and select desired subsets of consumers in order to send targeted messages or requests to regulate the level of energy consumption. Electrical contractors and utility services can take a proactive approach communicating with consumers, disseminating special offers and information to the vast and often limitless number of consumers.

Today most consumers are extremely ‘energy conscious’ and with such platforms consumers can participate in energy -saving initiatives or benefit from specialized reward programs for energy conservation. u

DMFusion management information system utilizes a layered architecture design to integrate transmission and distribution grid components and to visualize the events and issues on the grid to manage the events and alerts. What is more fascinating is that it’s open, scalable, and a webservices-based which makes the platform easily adaptable to concrete processes. DMFusion is the next generation platform built to facilitate demand response programs.

DMFusion can help to empower existing solutions. Working with existing solutions or new ones, the platform enables advanced workflows, grid and events visualization, and decision support automation. You could say that DM Fusion is your answer to an electrical Big Data rescue. u

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Business Thinking Book Review

Be Inspired & Provoked

Review by Business & Social Analyst Dr. Timothy Patitsas

By Stephen Denning San Francisco: John Wiley & Sons, 2010. 340pp.

Stephen Denning claims the entire organization of companies should ensure one thing: That all products and services be designed and delivered with the delight of the client front and center in the firm’s focus. It’s an admirable thought, but is it novel? And novel or not, what sort of client would be “delighted” by this book?

that they had received it from either the Egyptians or the Babylonians. In other words, the “we act on objects, we think about concepts and systems, but finally we know persons” distinction is many thousands of years old. This is a major reason, in fact, why I took this book seriously.

According to Denning, any worker, manager, or CEO who is looking for techniques to improve simultaneously: a) client satisfaction, b) firm responsiveness and innovation, and c) worker morale - three aims which Denning claims come inevitably into conflict under traditional management schemes - will find this book an indispensable read.

At the center of Radical Management, then, is the person, in at least three ways. The Client, whose delight is the purpose of the firm; his consistent delight leads to a relationship between the Client and the firm.

In the early period of industrial production, management was concerned with the reliable and efficient production of things, or objects. At a later stage, its focus evolved to business systems, the internal processes by which firms design, make, sell, and deliver their products and services.

The Worker,who by having his firm organized to provide him with a direct view to Client delight and by working in self-organizing teams, will find that his work life becomes deeply fulfilling and meaningful; he thus develops a relationship with his team and with his firm. The Manager, who receives all the benefits of the worker, plus experiences a deep level of vulnerability and personal growth in pursuing this method. This growth spills over into all the Manager’s relationships, enriching them.

Today, Denning says, neither attention to objects nor to systems is sufficient. First, because these approaches do not generate delight in clients or workers. Because, second, at bottom it is the human person, the client, who determines success or failure for a firm’s products and processes.

Incidentally, some form of this three-step progression, from object to conceptual process to person, is older than Western philosophy itself. It is at the basis of both Plato’s and Aristotle’s systems, and the Ancient Greeks understood

Systems and products/services remain, but they are subordinate to the Person.

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Business Thinking Book Review

Be Inspired & Provoked A crucial story illustrating the first two emphases is Denning’s account of the U.S. Navy Polaris missile submarine program. The director of the program was given nine years to put at sea the third leg of the deterrence triad. But then the USSR launched Sputnik, and a mobilized US Congress demanded that the missile boats be deployed in one year.

Realizing that time was of the essence for his client (the Congress), the program director organized his team to produce a Polaris A, B, and C. Polaris A subs would be launched in one year, with whatever technology and systems could be ready to go on such short notice. Polaris B subs would begin launching in three years, and the longer lead time would enable many additional improvements to be made.

Polaris C would take all that was learned in A and B, plus more long-term research, and hit the water on the original nine-year time frame. In other words, the director of Polaris asked himself exactly what would delight his client (knowing some deterrent would be seaborne); he provided as much value for his client as he possibly could, in the shortest possible time; and, he organized the generation of client delight iteratively.

These three techniques are near the heart of Radical Management. What the director did not do was misinterpret client delight (by thinking Congress would be just as happy to have a better boat, years later, without also having something at once), wait to launch his product until it was perfect, or put all his eggs in a single product-launch basket.

In the ideal application of Rad-Man, the firm would update its client on progress frequently, and involve it in as many of the decisions about the design of the product/service as was possible. Their response and feedback would be fed into each iteration of the product/service. And the firm would always aim for the biggest, most immediate bang in the next improvement of client satisfaction.

Dr. Timothy Patitsas

How does Radical Management achieve this goal of putting Person first? Through three emphases. First, Rad-Man treats time as though it were both the client’s and the firm’s most precious resource. Not its only resource, for tradeoffs are still made, but its most precious. Second, Rad-Man provides client delight iteratively, with the aim of accelerating failure, and then mining failure as feedback for improvements in the next round of production firm organization. Third, Radical Management organizes workers in cross-functional teams that set their own agendas about how to achieve client delight. Management participates in daily stand-up meetings with these teams, where workers are encouraged to report on their progress and identify obstacles to their team’s success. Management’s role is to remove these impediments, so that the workers can delight the clients.

This last point was phrased by the Zen architect Christopher Alexander - quoted in the book in another context - as “What is the simplest and most obvious thing that I can do right now to make things better?” A ruthless asking of this question will lead closely to the Rad-Man way.

The third core emphasis of Rad-Man is on self-organizing teams. These teams will have representatives of sales, of marketing, of programming, of production, and of whatever other specialties are necessary, so that stove-piping is obliterated. The team members thus teach other to think outside their narrow boxes, and focus on what is in fact doable

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Business Thinking Book Review

Be Inspired & Provoked itself, sufficient to produce innovation, where does it come from?

towards client delight. Ideally, the clients, or a client proxy, would function as a member or near-member of these teams.

The career of Steve Jobs gives the answer: Focus on Client Delight is one indispensable half of the equation. The other half is management and workers who are in love with excellence for its own sake, who take their professions as businesspeople, engineers, or programmers seriously, and who will simply not rest until their work is excellent.

Denning claims his techniques are proven, especially in software firms using SCRUM and AGILE methods (can a technique be both proven and radically new? But Denning offers additional supporting practices, shows how to combine management techniques that until now have usually been proven singly, and establishes an entire philosophy about why these methods work).

In other words, you can’t “love your neighbor as yourself” (Delight your Client), if on some level you don’t also love Beauty, Goodness, and Truth, in themselves, with “all your heart, soul, mind, and strength” (Commitment to Excellence). These are not the same thing, and Denning is wise to insist on Client Delight. But without a “client-be-damned” commitment to producing quality for its own sake, focus on the Client can become insulting and, worse, manipulative. u

Here are the seven principles of Radical Management.

Denning provides over seventy practices as aids to implementing these principles.

Principle #1 Delighting Clients Principle #2 Self-Organizing Teams Principle #3 Client-Driven Iterations Principle #4 Delivering Value to

Clients in Each Iteration

Principle #5 Radical Transparency Principle #6 Continuous Self-Improvement Principle #7 Interactive Communication

What is missing in this book, which has many valuable and even revolutionary insights? First, Denning says that setting up teams and pursuing Radical Management often requires professional training - but then he does not highlight where a firm would go to hire such training. Luxoft would be, however, a good answer.

Second, there is a Radical Flaw in Radical Management.

Denning acknowledges that clients often do not know what will delight them, until after it has been presented to them.

All the focus groups in the world could not have envisioned the many product and service revolutions wrought by Apple Computer, for example. So, if Client Delight is not, of

Dr. Timothy Patitsas is a freelance Business & Social Analyst. He is a Jane Jacobs expert and has written extensively on her works on the science of economics. A Social Development expert, he has an upcoming book on economics. A Professor of Ethics at Holy Cross Greek Orthodox College in Boston, Patitsas is a Georgetown University graduate with a Phd from Catholic University.

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Business Thinking Book Review

A Book That Inspired Luxoft’s CEO

Book Feedback From CEO Dmitry Loschinin Dmitry, Why do you find this book relevant to today’s management?

The book is focused around a single objective – delighting the customer. This approach has been the cornerstone of Luxoft’s success that was built into our mission statement. (“To go beyond client’s expectations by bringing together technology, talent, innovation, and the highest quality standards.”) This mindset has served Luxoft since its inception 13 years ago, and is as valid as ever.

Focus on client delight, going beyond what he might expect, anticipating the challenges he might face in the near future is the single best way to compete in today’s business environment. You can see this in the biggest and most admired companies in global business: Apple or Amazon that constantly are on a forefront of innovation, and are end user centric organizations.

The book also gives up to date advice on how to deliver value to the customer in iterations. This advice will help managers to deal with challenges of the financial crisis.

Such an approach enables both supplier and client to react quickly to changing business conditions, identify mistakes early in the process and optimize the cost.

in a more controlled way. Keeping client delight always in mind, iterative approach and creative teams that can self-organize is the recipe for success.

(DL) In what way is this book inspiring to you professionally?

(DL) Is there anything else you would like to say about this book?

I find the book inspiring in two ways. One, it validates some of the fundamental principles I have always believed in: focus on customer, quality and agility. It’s inspiring to see that business world moves in that direction, and that Luxoft has intuitively led the movement. Secondly, it outlines areas where we can continue our journey towards excellence, by further increasing transparency, continuously re-inventing the way we operate, and improving our communication.

This is a must read position for every manager and executive who wants to compete in the modern world. Even though some of the advice may seem common sense, and you may not find a detailed instruction on how to implement it, it will help to structure and maintain the right mindset. u

(DL) What is most important to you about change management?

Change management is a driving force behind innovation and growth. It requires a fine balance between pursuing bullish dreams, and getting right data to support the decision to change. Steve Denning’s advice helps companies manage change

Dmitry Loschinin Luxoft ceo

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Creating A Situational Hmi For Next-Gen Device Integration

Integration is always a challenge in a fragmented world.

Synchronization of infotainment, communication and professional networking is, however, no longer a trend but a necessity. The days of having several individual devices for communication, entertainment, information and work are quickly disappearing. Forecasts indicate that in the next four years Smart Phones will be our principal device.

By 2017 it is estimated globally that there will be 100% more purchases of Smartphones than Desktop PC’s and three times as many Smartphones than Tablets.

In 2013, in the USA alone 29% of people are said to own a tablet, whereas 53% are said to own a smartphone, 70% of which are between the ages of 18 and 34 years old. In general, however, Smartphones are seen as keeping us connected, Tablets for entertainment and PC’s keep us productive and informed. Research indicates that 90% of us use multiple screens sequentially, with 81% used for browsing, 72% for social networking, 67% for shopping, 63% for information and 43% for trip planning.

What is interesting is that Americans on average are said to spend 2 hours and 38 minutes a day on their iOS & Android connected devices. Out of this time 80% of the time is spent using Apps for games, Facebook and entertainment while 20% is spent on browsers.

Focusing these market trends back into the Automotive Industry, there are only a handful of Smartphone applications that are designed for use in cars. The total number of in car applications available today is more than 50, providing possibilities for Navigation/Search, Radio/ Music/News, Health alerts, Social networking, Leisure planning and OEM Master Apps.

vasiliy suvorov VP Technology Strategy Luxoft

The world of car-enabled apps continues to be improved for simplicity, distraction and affordability, including related human machine interfaces in cars. For the last ten years, Luxoft has been one of the few companies specializing in the development and design of human machine interface systems specifically for the automotive market. Luxoft Reporter (LR) asked Vasiliy Suvorov, VP Technology Strategy at Luxoft, to share his expertise on where the next generation device integration is headed.

Vasiliy Suvorov serves as VP Technology Strategy at Luxoft where his role is to define and drive company technology strategy across its key Lines of Business. Vasiliy has over 15 years of software and systems development experience. Throughout his professional career he has held leading technical and management positions in international telecom and hi-tech companies, where he was responsible for defining technical strategy, designing and implementing real-time and mission-critical software systems. He actively participates in international conferences and technology alliances helping companies realize business benefits from emerging technologies.

Born in Moscow, Russia, Vasiliy holds Executive Certificate in Strategy and Innovation from MIT Sloan school of Management.

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Creating A Situational HMI For Next-Gen Device Integration LR: To begin with, can you explain where in-car connectivity takes place, what is the market penetration and what are the next steps for App & Data connectivity?

app integration. Luxoft’s iviLink is profiles based, symmetric, works with iOS, Android, Linux, QNX and is supported by Luxoft. You can read more about iviLink and download SDK at www.iviLink.net.

Suvorov: Currently there are three options for connectivity: Device hosted, Hybrid and inDash, and each of these three options utilize various platforms.

Usually when connectivity is device hosted it is via MirrorLink, AppLink or Luxoft’s iviLink.

When we are speaking of Hybrid we are talking about Aha radio, Toyota’s entune, as well as systems from Mercedes and BMW. An example of an inDash option is Chevrolet’s myLink.

LR: How do you see the “Use Cases” for in-Vehicle Apps?

Suvorov: In general the Use Cases would include the driver, passenger and for what we call “in-car collaboration” between passengers and the driver.

You could say that are three types of driver personas; the novice, the pragmatist and the enthusiast. Each of these types require a certain amount of personalization, and the demand for internet radio, 3rd Party Navigation & ADAS, Connected Services, Connected Manuals, Maintenance & Tuning and even resources for health concerns. Whereas the Passenger Use Cases may include personalization, navigation entry, augmented navigation, Media Playback and RSE. The occasions for data sharing and in-car collaboration evolve around hospitality & trip planning, social networking, collaborative entertainment, and distraction off-load.

When we speak of market penetration of car connectivity in the US we have found that 28% of people have Bluetooth in their primary car, 21% have listened to online radio in the car, but only 6% have actually built-in IVI in their primary car. What we have learned indicates that inDash performance is not optimal yet. Attracting developers to this specialized technology has been difficult. It proved challenging for developers to make the paradigm shift from mobile devices to cars or, as automotive people put it add “carness” to the apps.

Clearly, right now the time to market for developing such technology is still slow, the process is expensive and technically challenging. The ability to offer car-enabled apps in entry-level models is challenging but necessary to enable greater market and make it appealing to app developers. As far as which app deployment technology to enable first, I think that the Hybrid (apps run on both head unit and a mobile device) model will win eventually but enabling apps to run on a mobile device first is easier to accomplish and therefore should be a priority.

While OEM branding and control must be there, we also need to work on convergence on apps connectivity/ deployment standards across industry. I’m sure that leveraging open standards will help us actually enable connectivity for mid-tier and entry level cars.

LR: What are the growing concerns over driver distraction?

Suvorov: It’s clear that transportation authorities and vehicle makers are highly concerned over rising driver distraction because of all the new infotainment features in today’s vehicles. In addition to that, roads are becoming more complex increasing distraction even more. In Europe there is ESoP recommendations for HMI, in the USA there is NHTSA guidelines and in Japan there is already the JAMA regulation, all trying to mitigate the dangers of driver distractions. This is creating a greater necessity for app integration and HMI to be developed in a way that minimizes these risk factors.

LR: How are these risks minimized with Driver Workload Management?

LR: What are some of the “open source” standards that are available for in-car connectivity?

Suvorov: The driver’s ability to concentrate on the road can be easily overloaded by various car features and events that compete for his or her attention. It’s important to estimate in real-time how much of the driver’s attention span is available to deal with dynamic information or car features that are non-essential to handling the current road conditions. We can do this by

Suvorov: In 2012 Luxoft launched its iviLink, an open source apps connectivity technology that allows clients to develop their own products and bring them to market more quickly while reducing costs. iviLink provides seamless, in-vehicle Smartphone

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Creating A Situational HMI For Next-Gen Device Integration LR: What are the next steps in developing Driver Workload Management?

estimating the so called driver workload automatically analyzing real-time car sensor data, traffic information and driver behavior. The result of this automated process is then used to adjust the behavior of HMI in such a way as to focus driver’s attention on handling the car.

We call this Situational HMI.

Suvorov: Driver workload management is indeed a much needed technology. However, in order to bring it to market, especially in the entry-level and mid-tier vehicles, we need to focus on standardizing API’s, interfaces and enabling cooperation of all industry players.

I am happy that the GENIVI Alliance is forming a special interest group that is focusing on understanding requirements and defining interfaces for bringing driver workload management estimation algorithms into the head unit environment. This has a high significance for us and we develop a wide range of reference applications for workload management scenarios.

LR: Can you give some examples of how Workload Management and Connected Apps work together?

Suvorov: Let me give you an example. Let’s imagine that you’re driving with your spouse on vacation and using a build-in navigation system with Situational HMI technology. Your spouse has a smartphone with Situational HMI app that is connected to the car. In case of the “low workload” the driver would see a detailed navigation screen and the passenger simultaneously sees the detailed POI information as well as other helpful tips, making the drive safe and fun for everyone in the car. As driver workload rises to “medium” level (maybe approaching a complex junction), HMI will automatically simplify the navigation screen for the driver, while adding helpful navigation tips on the passenger’s smartphone.

The driver’s attention stays on the road and the passenger is ready to help when required. In case of “high” workload (bad weather, heavy traffic, etc.), Situational HMI will even further simplify and rearrange driver’s navigation screen and redirect all distractions such as calls, etc. to the passenger’s smartphone. Hopefully, you can see why we call it a Co-Pilot scenario.

LR: In summary what would say is our greatest call to action in this field?

Suvorov: Integrating workload management is helping to unlock the value of multiple screens and the development of human machine interface systems that will minimize safety concerns. At the same time it’s clear that multiple, incompatible connectivity technologies and closed ecosystems are really counterproductive. The rate of innovation in connected car HMIs and pace of its market adoption greatly depends on our ability to work together to define common APIs which will help app developers, OEMs and the rest of the ecosystem, bring more apps and services to cars while making cars safer. u

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Genivi Alliance and HMI Development

by Yuriy Shvalik All efforts in Genivi are devided between Expert Groups.

The work Luxoft is doing as part of the CE Connectivity Expert Group is leading a tremendous effort that should result in the market defragmentation of connectivity technologies. The CE Connectivity Group is standardizing specifications for the so called Smart Device Connectivity Component, a software module in Genivi platform enabling head unit connectivity runtime for mobile apps.

We are learning from and collaborating with a wide range of technologies including MirrorLink, iviLink, and Livio.

These contributions are being made by joint efforts on the part of Luxoft, Jambit, BMW, Livio, and JLR, which all will become part of the Genivi Compliant Statement.

Alliances are essential today. Getting acquainted is the hard part. In the Automotive industry one alliance that is changing the face of the industry is definitely the GENIVI Alliance.

The first question to ask then is; What is the GENIVI Alliance and who are the major players? You can find that Wikipedia has a definition of the GENIVI Alliance which is hard to phrase any better: “The GENIVI Alliance is a non-profit consortium whose goal is to establish a globally competitive, Linux-based operating system, middleware and platform for the automotive in-vehicle infotainment (IVI) industry”.

In many ways GENIVI is a unique phenomenon. It’s the only place where all major players of the automotive industry can get together to exchange ideas about the future of the infotainment systems. And of course, as defined on Wiki, the main goal of such gathering is to create an Open Source platform which everybody can use as a middleware for their IVI. A lot of big automotive OEM companies are participating in the consortium: BMW Group, GM, Honda, Hyundai, Jaguar Land Rover, Nissan, PSA Peugeot Citroen, and Renault. An even bigger number of major Tier1 companies (1st level suppliers for OEMs) are taking part in the consortium to ensure that everyone's opinion has been taken into account.

One may ask why an open connectivity standard is so important for the automotive industry.

Well, all companies in the industry understand that connectivity with smartphone is the next big thing and it is already here. People would like to have similar experiences as they have with mobile device in their cars. IVI, however, has many more limitations than does a phone. Security and reliability criteria’s for the infotainment system is much higher than for a mobile device simply because of the associated cost. If a user’s mobile device crashes he will blame a 500 to 800$ device. If the car IVI will crash the user will blame the whole car which can be around $100 000. In any case some solution to in-car connectivity has to be found. The most obvious decision for Luxoft was to create technology which would combine devices and vehicles together rather than transferring one into the other. Open Source is another significant aspect of the challenge to in-car connectivity. Developing such solutions in isolation has no sense and no future. If each car has its own connectivity platform – which one should mobile app developers support? And to support all of them is too expensive. This is where Open standard becomes important. Rather than developing a closed proprietary system it is much more beneficial for the industry to create an open solution which can be used by everyone.

This is the goal we had in mind when we created iviLink.

You may wonder how Luxoft got involved with the Alliance. Actually Luxoft has become big and valuable player in the automotive industry. So being part of a major alliance like GENIVI is not only what is expected from us by clients and partners but also a vital decision in order to follow all the latest trends and industry changes.

Luxoft is not however only following the development of the other companies in the consortium. Throughout this year, Luxoft has been recognized several times by GENIVI as one of the companies who is making a significant contribution to helping GENIVI fulfill their goal of creating an Open Source platform.

Luxoft is contributing to the Alliance in significant ways.

In 2009 Luxoft started the development of an internal project called iviLink. It’s a connectivity framework which unites Smartphones and car IVI together. iviLink is an Open Source project. So eventually the best place to promote it for the industry was the GENIVI Alliance. iviLink was warmly received by OEMs during so called “OEM roundtable” - a meeting of GENIVI’s main stakeholder where it’s decided which features that will be included to the platform and which not. Since then we were working actively to bring iviLink to the GENIVI infrastructure.

But now iviLink technology is changin it's name. Parallel stream of activities for Luxoft in Genivi already for some time was support of Ford Motor Company in development of a Smart Device Link (SDL) project. SDL has the same goals as iviLink - reduce market defragmentation of connectivity technologies between Head Unit and mobile

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Creating A Situational HMI For Next-Gen Device Integration

borrowed from iviLink. Profiles will allow using SDLP in advanced scenarios for car to smartphone connectivity.

Applications on Mobile Devices will not be the only control of the whole interaction with IVI (like in SDL technology).

There will also be executable code that will be deployed on IVI by means of profiles which will allow developing symmetrical scenarios where both sides can act as

device. And Ford came to Genivi with SDL for the same reasons as Luxoft did with iviLink. Eventually the decision by both companies was to merge this work together.

So now iviLink is transforming into SDLP (Smart Device Link Profiles) – an add-on by Luxoft on top of Ford's SDL. SDLP will use SDL as a transport protocol between devices.

In addition to it, however, we will add Profiles – a concept

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Genivi Alliance and HMI Development

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Significant interest that has been attracted by Ford's SDL and Luxoft's SDLP proves the real demand in the industry for one connectivity standard that will unite all OEMs and mobile apps developers around it. In Luxoft we're happy to be one of the first companies who properly identified this need and made real steps to acchieving it. The example of SDLP can be extended for the whole Genivi alliance. Every year more and more companies start to believe in the big potential of the Open Source technologies in IVI. These facts give us confidence that our technology strategy is aligned with industry needs.

Every year more and more companies start to believe in the big potential of the Open Source technologies in IVI.

Luxoft is also planning to emphasize on HMI development.

We're moving towards the next generation HMI with a new platform called Teora. A new toolset that offers developers the ability to compose new HMI projects based on a ready to use framework. Visit www.luxoft to hear the latest updates on this new “Teora” movement. u

communication initiators. So now when data needs to be prepared before sending it to a mobile device this can be done within a profile.

You may wonder if the iviLink name will continue to exist or it will it be completely replaced by SDLP? From a technology perspective iviLink will be completely replaced by SDLP. We, however, have a set of reference applications that we developed to promote technology capabilities. These applications we call iviLink applications.

Luxoft's UI design department has been taking part in developing concept, look & feel and user expirience of these apps to make sure they satisfy highest automotive standards.

The iviLink applications are a set of template apps which contain two sides – for mobile device and for IVI. They contain basic functionality which can be extended according to needs and preferences of OEMs. So it allows easy and fast SDLP adaptation to any system where it needs to be deployed. iviLink applications include: Car settings Diagnostics Navigation

Yuriy Shvalik joined Luxoft automotive division in 2006. He has worked on a variety of projects for different customers both in software development and management positions. In his current role as Program Manager Yuriy is responsible for SDLP technology development. In Genivi alliance he represents Luxoft’s connectivity solution. These efforts resulted in the iviLink project to be promoted and accepted in the Alliance as the first version of a smartphone connectivity standard. Similar success is now developing for SDLP technology.

Workload management Media player Interactive user manual And others…

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CASE: Ford Steals the GENIVI Limelight in Barcelona

by Roger Lanctot

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CASE: Ford Steals the GENIVI Limelight in Barcelona Snapshot Ford surprised the industry earlier this year by offering up its AppLink API as open source to be hosted by the GENIVI Alliance even though Ford is not a member of the organization. At the GENIVI Alliance meeting in Barcelona in May of this year, Ford’s AppLink presentation was warmly received and a survey conducted by Strategy Analytics revealed strong interest among GENIVI members in adopting the newly-dubbed Smart Device Link API.

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Analysis Ford Motor Company executives formally presented their AppLink open source API offering to a standing-room-only audience at the GENIVI Alliance’s gathering in Barcelona April. Within GENIVI, AppLink is now known as Smart Device Link. The intense level of GENIVI member interest was reflected in the more than one hour’s worth of questions and answers followed by a brief demonstration of the technology.

The smartphone connectivity-based solution allows Ford to scale up internationally even as it sorts out its plans for embedded connectivity and a strategy for bringing AppLink to its larger screen MyFord Touch offering.

the seventh largest group within the W3C out of a total of 129 such groups. The Barcelona meeting was the group’s first official meeting – which was followed by its second meeting, in Tokyo, in May. Clearly the challenge of achieving successful car connectivity is attracting an enthusiastic and interactive audience.

The generally positive reception was in stark contrast to less than enthusiastic response that greeted MirrorLink when it was first presented to the Connectivity Expert Group at the GENIVI meeting held in Dublin, Ireland, in 2011. The differing reception reveals the philosophical chasm between the screen-replication-oriented MirrorLink HMI and Ford’s framework-oriented approach to in-vehicle device connectivity.

The enthusiasm for Ford’s AppLink within both the W3C and GENIVI was reflected in a survey of GENIVI attendees conducted by Strategy Analytics. Of respondents, 43.5% said they thought car maker members of GENIVI should adopt Ford’s Smart Device Link API. Only 2% disagreed and 47.8% were unsure. The survey also showed that 54.3% of respondents rated the level of importance of Ford’s decision to make AppLink open source a “6” or higher, on a scale of 1-10 with “10” representing “extremely important.”

Twenty-five percent rated Ford’s decision an “8.”

Prior to the event, Ford had made its AppLink API, now called Smart Device Link, open source, and chose the GENIVI Alliance to host the offering. Though not a member of GENIVI, Ford had three executives on hand in Barcelona participating in the GENIVI gathering. Ford has not announced any plans to join GENIVI or to implement Linux in its IVI systems.

Ford first announced its plan to make its AppLink API available as open source at the Consumer Electronics Show in Las Vegas in January 2013 and re-affirmed those plans at Mobile World Congress. Since that time, Ford has slightly updated the message and provided further roadmap details.

Ford also participated in the W3C HTML5 for automotive event that preceded the GENIVI Alliance meeting at the same venue in Barcelona. Ford execs presented their AppLink vision to the W3C Forum as well. The W3C Forum is in the midst of deliberations intended to define an HTML5for-automotive API offering. Presentations of alternative automotive API visions were made by representatives of Intel, QNX, Ford and LG Electronics.

Among the elements explained at the GENIVI Alliance meeting was the involvement of Luxoft and the integration of its iviLink capabilities into AppLink along with the participation of Telenav and its TNLink API. Luxoft is focused on infotainment functions while Telenav’s specialty is navigation.

The W3C efforts are ongoing and the HTML5 for automotive working group has already attracted 86 individual members representing more than 39 companies making it

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CASE: Ford Steals the GENIVI Limelight in Barcelona Control of embedded navigation system (set destination / waypoint, select routing method, search POI listings)

The Smart Device Link contribution to GENIVI includes: POSIX-compliant head unit source code for SmartDeviceLink core

Modify body control modules - (ie. modify interior ambient lighting, seat settings)

Documentation on integration of SDL core (behavior, methodology, HMI)

One of the most significant roadmap elements is the anticipated ability to enable AppLink to work with multiple navigation applications. While it may not yet solve the map updating challenge, it offers the prospect of an in- vehicle app framework able to work with multiple navigation apps.

Guidance and documentation on template-based HMI and applied driver distraction rules Automated test setup (mobile driven) for validation of SDL APIs (behavioral validation also possible)

Ford’s AppLink, known within GENIVI as Smart Device Link, now resides and is hosted within the Connectivity Expert Group where Ford will continue to coordinate contributions and development. The other major announcement at the Barcelona gathering was BMW’s introduction of its Entry Navigation offering built around GENIVI.

Proxy software for Android and iOS Developer documentation for implementation and use of proxy software Sample applications highlighting integration of proxy libraries and SDL functions Test certification suite for the validation of SDL-enabled applications

While the EntryNav announcement was a significant milestone for GENIVI, it came amidst reports of a delayed delivery by Magneti Marelli that reflected little of the cost or time savings promised by the GENIVI Alliance. But all observers agreed that the kind of delays and struggles associated with the delivery of the first solution based on a new software platform was not unexpected.

Ford touts the fact that 60 apps are currently offered via AppLink and that more than a million cars are already on the road equipped with AppLink. In addition, AppLink – along with SYNC – is being brought to multiple markets around the world. The smartphone connectivity-based solution allows Ford to scale up internationally even as it sorts out its plans for embedded connectivity and a strategy for bringing AppLink to its larger screen MyFord Touch offering.

Another major development was Continental’s embrace of GENIVI, joining Bosch, Delphi, Visteon and Magneti as among the largest and most strategically important Tier 1’s adopting Linux. Other significant GENIVI announcements/ milestones included:

The outlook for MyFord Touch remains clouded by criticism of its user interface from the likes of Consumer Reports and J.D. Power & Associates. And consumers, too, have expressed dissatisfaction along with frustration that AppLink does not work with the larger screen system.

Compliance 4.0 approved on time Membership support of W3C Public baselines now available as open projects, over 10 projects launched

The AppLink roadmap, in contrast, is clear and ambitious and includes:

The challenges facing GENIVI adoption include: Replacing GPL/LGPL license source code

DBUS messages from core to HMI

Focus on high-end infotainment systems – market segment currently dominated by a more-nimble QNX recently adopted by Mitsubishi and Garmin

TCP connection strategy (i.e. negotiating a port, securing connection between mobile device and head unit – SSL)

Multiple Linux platforms: Wind River, Montavista/Mentor, Green Hills, Ubuntu, Tizen, Automotive Grade Linux, etc.

Creation of dynamic templates, forms and widgets (gauges, graphics, otherwise)

Microsoft Embedded’s strong position in the entry-level market – recently adopted by PSA (China)

Control of audio system (volume, source, station, sound settings) for rearseat use cases

In-roads from Android – Renault, GM (China) – others rumored in development

The addition of a policy layer

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CASE: Ford Steals the GENIVI Limelight in Barcelona

Implications

In the fullness of time, the GENIVI Alliance initiative along with its Tizen, Wind River and Automotive Grade Linux cousins, will drive wider adoption of open source software in cars. But it is by now clear that this process will play out over an extended period of time. u

Ford’s ability to capture the interest and imagination of GENIVI Alliance members at the recent Barcelona gathering reflects the growing recognition of the importance of smartphone connectivity. The support of AppLink reflected in the Strategy Analytics survey speaks to the degree of dissatisfaction with existing solutions and the need for a more flexible, scalable, future-proofed solution.

GENIVI continues to gain traction and moment with the adoption by Continental and the launch from BMW. Challenges remain with QNX, now liberated from Harman, signing up new Tier 1 partners – Garmin and Mitsubishi Electric – and the proliferation of Linux alternatives.

Software is becoming increasingly important as a source of complexity and cost in cars and GENIVI hopes to be the key to reducing cost and time to market via the sharing and re-use of commonly used middleware code. In addition to QNX, Microsoft continues to gather up high volume, lowend system wins while Android lurks in the wings.

Nearly every car maker has Android projects in the works at a minimum for test purposes.

As Associate Director in the Global Automotive Practice at Strategy Analytics, Roger C. Lanctot has a powerful voice in the definition of future trends in automotive safety, powertrain, and infotainment systems. Roger draws on 25 years’ experience in the technology industry as an analyst, journalist and consultant. Roger has conducted and participated in major industry studies, created new research products and services, and advised clients on strategy and competitive issues throughout his career. Roger joined Strategy Analytics more than five years ago. His privileged relationships and extraordinary connectedness help keep Strategy Analytics in the forefront of industry thought leadership. Previous career stops include Telematics Reseach Group, NPD, United Media, Hearst Corporation and Fairfchild Publications. Roger holds an AB in English from Dartmouth College.

A weak point for GENIVI is connectivity and the Alliance eschews HMI as differentiating and out of bounds for code sharing or re-use. It is precisely in these areas that Android, QNX and Microsoft shine with potentially market altering solutions tied to mobile device connectivity and user interfaces.

This Case Article was reprinted with permission from Strategic Analytics. For more information on Workshops, Consulting, Client-Services visit: www.strategyanalytics.com/solutions.html

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Winning The War For Brain power

by Przemek Berendt – VP Global Marketing at Luxoft

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Winning The War For Brain Power As new technologies appear on the market and innovation becomes the best winning strategy, companies have to hire the right talent to stay on top of the game. The problem of talent shortage in technology sectors is becoming a major challenge to businesses around the world, as the surplus between graduates from technical programs and the number of IT vacancies grows. According to the European Union Commission there will be over 700 000 unfilled ITC positions within the EU by 2015. The USA and other major economies face the same challenge.

The first observation we made of employer branding was that B2E marketing presents similar characteristics to classical business to consumer (B2C) marketing.

The analogies were quite obvious. The company in B2E is what product is in B2C marketing. Candidates resemble consumers, and existing employees are similar to user of the product. Following that route we identified several building blocks of a successful employer brand strategy: Defining target groups Defining an employee value proposition

Luxoft which has been building its success on highly qualified IT engineers, winning the war for brainpower is crucial. In 2011, we formulated an employer brand strategy which helps us attract and retain the best engineering talent in Central and Eastern Europe. Throughout this journey we have tested various theories, approaches and tactics that positioned us as regional leading developers in employer branding. The results of this work have been already appreciated by the professional Talent Management community. Our Business to Employee (B2E) marketing team has been awarded the ‘Employer Branding Stars’ award for the strategy and execution of introducing Luxoft brand on the Polish market.

Building communication and an execution plan that delivers the message to a target group

Target Group Definition HR and recruitment departments have been segmenting candidates for a long time. The typical profile focuses, however, on hard demographics, competencies and a candidate’s soft skills. Such a cookie-cutter approach helps to organize the recruitment process, and ensures a better match of candidates to the job field. Knowing the education, employment history, attended trainings or possessed skills, however, is not enough to effectively market the value proposition of the firm. In order to ensure the company’s message reaches the target audience, talent managers need to understand the target a bit better. While marketers start with a similar demographic profile, they utilize the understanding of a target audience differently. They seek insights that will help them to catch attention, and phrase the message in a way that it will be appealing. Such insights would look at the prospect from a perspective of their interests, behaviors, physiological profile etc.

The concept of an employer brand is relatively new in the science of management. It was first introduced by academics of the London Business School in 1996. The popularity of the discipline has been growing since 2000, and has started to have more traction with the boost of new media. Global corporations in mature economies have been looking at employer branding for no more than 5-10 years. When Luxoft started looking at the issue of employer branding in late 2010, the discipline was relatively young and there was very little research on the topic. To quickly come to the cutting edge of the employer branding movement, we applied our past experiences, and innovative brains to develop our own Luxoft approach to employer branding.

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There are several techniques that allow B2E marketing teams to capture these insights. Data collection starts with interviews and focus groups, and goes as far as analyzing social media profiles or spending a ‘day in the life’ with a representative of the target audience. HR and Marketers should keep their eyes open, and ears tuned to insights at all times as surprising findings might come up in a chat over coffee.

Luxoft has been experimenting with new ways of communicating our company message in innovative ways for several years.

Employee Value Proposition Once target groups are well understood, firms must define the messages that will be delivered to them. As in consumer marketing where companies communicate benefits of

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Winning The War For Brain Power a given product, employers have to define and communicate employee value proposition (EVP). EVP is a promise a firm gives to a candidate to what they can expect in return for their work, once they decide on employment. EVP can not only describe the hard benefits an organization offers to an employee, but needs also to cover emotional benefits that will describe the total work experience one should expect.

What needs to be kept in mind while defining EVP is that it needs to be consistent with the DNA of the company.

Additionally, components of EVP have to be unique, so our message stands out in the minds and hearts of the target audience.

Zero Moment Of Truth Before we look into traditional and new ways of communicating the EVPs of a company, we have to understand the mental process that goes on in the mind of a candidate while considering new jobs. In the book entitled, ‘ZMOT Winning the Zero Moment of Truth” Jim Lecinski describes a traditional mental model that an average consumer used to follow when buying a product.

In its traditional form, the journey followed by a buyer consisted of three stages: 1. Stimulus – when the target was exposed to some kind of trigger that initiated the selection and buying process. This could include messages delivered via traditional advertising channels or word of mouth.

2. First moment of Truth (FMOT) – which happened after the initial need was triggered at the shelf in the store. A consumer standing in front of different products meeting the need was exposed to another stage of a marketing battle, where packages, and in-shelf ads were screaming for attention.

3. Second moment of Truth (SMOT) – where a selected product was used, and actual experience was validated, versus promised benefits.

Lecinski in his book argues that with the recent emergence of new technologies such as search engines and social media the buying pattern has changed. He believes that a new stage appeared between Stimuls and FMOT that he calls the Zero Moment of Truth (ZMOT). That’s all the pre-shopping consumers do at home, on the internet to check reviews of the product, seek references from friends, and compare prices before they decide on the in-store purchase.

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Winning The War For Brain Power At Luxoft we believe this mental model, including all four stages applies to the journey a candidate goes through when deciding on changing jobs. Such as: 1. Stimulus is all the B2E marketing communication to which the candidate is exposed. It includes traditional job ads, print advertising but also ads on social media and below the line (BTL) activities.

2. ZMOT is all the information people share about an organization on blogs, twitter, Facebook and in professional communities. It also includes the word of mouth employees and candidates share at formal and informal venues.

3. FMOT is the moment when candidate experiences the interaction with the firm for the first time. It includes checking company’s website, looking at career section, analyzing profile of the firm on LinkedIn, but also talking to a recruiter.

4. SMOT is the experience an employee has once they join the company. Brand promise that was communicated in EVP needs to come across at every stage of this experience.

It should be consistently delivered not only in giving an employee promised hard benefits, but should be visible in every other sphere of company’s operations. It includes interactions with direct managers and peers, office design and facilities, and processes etc.

Failure to deliver EVP in Second moment of truth, which were communicated at the moment of stimulus will result in negative reviews in ZMOT.

Delivering the message In the world where an average consumer is exposed to nearly 3000 marketing messages a day, ensuring notice of the message is not easy. Highly competitive labor markets, where candidates are approached by companies on a daily basis with traditional job advertising techniques, force talent managers to be creative to make sure they stand out. Luxoft has been experimenting with new ways of communicating our company message in innovative ways for several years. We were one of the first firms three years ago in Central and Eastern Europe to launch a corporate profile on Facebook. We have also taken our messages offline, and have started throwing different types of events to have more direct interaction with our target audience.

The events included sampling products and leaflets during the commute to work, flash mobs, as well as custom

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E m pl o y e e B r a n d i n g

Winning The War For Brain Power

events. We have been breaking traditional paradigms of recruitment communication that has resulted in positive reviews on the internet and press.

by creating a dedicated B2E team within the Marketing organization that works hand to hand with HR and Recruitment. This approach has proved successful for us, and has enabled us to sustain dynamic growth becoming a leading IT services provider in the region. It is important to remember that the responsibility for delivering the corporate brand promise lies, however, in the hands of every employee of the organization. With this mentality each employee becomes the quintessential marketing and talent acquisition channel. u

Measuring Results One may challenge how to measure results of all of the above business to employee marketing techniques.

Traditionally, recruitment teams are measured on speed of recruitment, retention and match to profile. These measures are here to stay. However, to justify investments into B2E marketing extra measures can be implemented.

Successful delivery of EVP across all four stages of the candidate journey will result in increased referral rate, higher scores in satisfaction surveys, as well as results of brand awareness analysis.

Marketing Is The New HR The talent surplus and the growing demand for brain power forces companies to introduce innovation to talent acquisition. At Luxoft, we believe that HR department needs to invest into acquiring new skills, since the battle for attracting and retaining best people is here to stay.

HR and recruitment professionals, have to understand fundamentals of marketing in order to succeed. The VP of Marketing needs to share harmonious objectives with the Vice President of HR. At Luxoft we addressed this challenge

Przemyslaw Berendt, VP Global Marketing at Luxoft, which recently rose IAOP rank to 41, received EOA’s “IT Outsourcing Project of the Year 2012” and EBStars’ “Best Employer Branding Campaign 2013.” Berendt speaks frequently at industry events and is on the Board of Assoc. Business Service Leaders in Poland.

Berendt offers insight from varied experience and international innovation with Luxoft, a Global IT service provider.

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Latest Initiatives

Winning The War For Brain Power Employer Branding: Luxoft’s Latest Initiatives

By Evgeniya Sushkova, Employer Branding Manager at Luxoft

Here is a quick look at some of Luxoft’s latest award winning initiatives in the area of Employer Branding.

Composing Software Campaign : A Successful “Out Of the Box Idea” Every developer is an artist. They write a code with the same passion and inspiration as artists when they are creating their masterpieces. In our campaign we compared these two professions. The whole creative line of the campaign was conducted around this metaphor. The IT crowd, in our key delivery locations, remembers our “Sandwich Assault Campaign,” “Software Ninja,” and “Luxquest For Software Agents,” campaigns. We can confidently say, however, that Luxoft’s “Composing Software Campaign” brought us to an even higher level of recognition resulting in double the number of standard campaign outcomes.

<Auditions/> Event in Kiev <Auditions/> Event in Kiev experimented with a type of interview factory which was followed by the concert of one of the most well-known bands in the CIS.

Key Conferences & Job Fairs in Russia, Ukraine, Poland and Romania

Luxoft organized <Auditions/>, an outstanding event for employees in Kiev. A concert by one of Eastern Europe’s most famous bands, ‘Voply Vidoplyasova’ became the key part closing the event. In addition to the concert Luxoft employees received a unique chance to win outstanding prizes which included a trip to San Francisco to the JavaOne and Oracle OpenWorld Conferences and a family trip to Disneyland.

Luxoft is a traditional sponsor of several key IT conferences and job fairs in Russia, Ukraine, Poland and Romania. Luxoft booths gather a lot of participants who have the chance to learn more about Luxoft, open vacancies, receive cool gifts and leave the event convinced that working at Luxoft is FUNtastic! u

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B u il d i n g a B e t t e r W o r l d

IT & Beyond

Building a Better IT World & Beyond: Corporate Social Responsibility

By Kinga Misiarz, CSR Manager

In this issue of the Executive Digest we are going to concentrate on what Luxoft does to promote IT Education.

As a company with a deep understanding of values and commitment, we believe that effectiveness must be accompanied by responsibility towards employees, society, environment, stakeholders and our share-holders.

It is not only one of the core principles of Luxoft, but it is an integral part of the company’s business philosophy.

IT Industry Awareness Workshops : Kostrzyn

Every year our employees participate in numerous projects bringing a positive change in the communities we live in by supporting education, charities, nonprofits and the environment.

This summer’s XIX Woodstock Festival in Kostrzyn, Poland was the biggest summer music festival in Europe. The festival gathered more than 500, 000 people this year and is organized annually by the Great Orchestra of Christmas Charity Foundation to acknowledge all volunteers and supporters who take part in the annual Grand Finale fundraiser in January.

Passionate about their own field of IT, Luxoft employees share their knowledge, experience and skills contributing to society by generating New Technology awareness and improving IT education.

​ team of 12 employees from Luxoft Poland, including A the VP of Global Marketing Przemek Berendt, went to the festival in Kostrzyn in order to share their knowledge, experience, and trends in the IT market.

According to the 2012 Talent Shortage Survey, IT staff roles are evidently more of a challenge for employers. The main reason of the reported difficulties in filling jobs is the lack of hard-skill related technical competencies. Luxoft activities are the answer to the expectations of the European Commission. The Commission forecasts that the rise of the job offers in the field of information and communication technologies (ICT) in Europe by the year 2015 will increase to 900 thousand.

In a series of short workshops conducted in a relaxed atmosphere and repeated several times each day, the Woodstockians were able to grow in IT industry awareness and talk to Luxoft IT experts and programmers about advanced IT services for specific industries.

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B u il d i n g a B e t t e r W o r l d

IT & Beyond

Robotic Football Competition: Bucharest

The participants and experts discussed specialized areas of programming industry and even simple applications, but what was most important was their acquaintance with skills necessary to succeed professionally.

Luxoft employees from Romania help support and develop with the Innovation Center for Youth a “Robotic Football Competition,” a great initiative created for students.

As today’s market grows more and more competitive, it is crucial to learn and expand your professional qualities.

Woodstockians could learn some professional soft skills by watching Luxoft employees during the few days of workshops where our incredible team served as an example of team work, communication and attitude.

The Luxoft team not only had the privilege to speak in front of the participants about their involvement in developing technologies and innovation, but also shared with students their knowledge and experience. During this project students could demonstrate possibilities for programming during the game using robots based on the Arduino platform, coordinated via Wi-Fi. Following the launch of the contest, twice a week, students participated in workshops at the center’s lab and at the university working on their strategy and programs, while preparing for the final games.

Alongside the famous lecturers, Luxoft’s very own Przemek Berendt shared a presentation called, “From Woodstock to Wall Street - How Did I Program My Own Career?” While looking back on his own career, Przemek shared with Woodstockians how important it is to start gaining experience in a dream job at a very young age.

He pointed out that the first impulse for dreams can occur even at music festivals. Hundreds of the Woodstockians came to visit Luxoft and the Finest Art Academy.

This initiative was so successful that other companies would like to join forces with Luxoft to coordinate next year’s event.

As a part of various industry associations, we believe that it is our duty to lead young people by example and show them the right direction to a successful professional life.

In order to help them to receive the best available education

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IT & Beyond : Community Social Responsibility Training For University Teachers: Odessa A group of employees at the Luxoft office in Ukraine held a number of presentations, courses and workshops during the training program prepared for 60 university teachers from 5 different Universities in Odessa.

The Team from Ukraine introduced teachers not only to the specifics of the outsourcing industry but acquainted them with quality control processes, recruitment and retention processes, training center program, internship program, and gave several technical presentations.

During the training program participants took part in 6-hour workshop on Agile business method. This Agile Course met with so much interest and enthusiasm that Luxoft employees extended the training for 15 teachers for the entire summer.

Through CSR initiatives like the Music Festival, Robotic Competitions and Teacher Training, you can see that Luxoftâ&#x20AC;&#x2122;s innovation extends beyond our actual IT practice.

At Luxoft, innovation is our business. We take forward thinking seriously and for that reason our programs include among many different types of CSR initiatives, and projects that broaden the traditional scope of CSR, such as educating the next generation of IT leaders and specialists. u

on the market and to reach their dreams in the near future, the team from Romania conducted meetings with the professors and the university deans in order to shape the curricula and address actual and relevant issues, utilizing programming languages and frameworks.

The Luxoft Romanian team also serves as mentors to students; providing access to Luxoft equipment, helping with final year papers and sharing their know-how.

Kinga Misiarz joined Luxoft as a CSR Manager in Krakow, Poland in April 2013. Miss Misiarz brings several years of experience in running CSR initiatives.

Prior to Luxoft she worked at Challenge Denver Foundation in the USA, and in the Warsaw office of Microsoft in the CSR department. Kinga has a masterâ&#x20AC;&#x2122;s degree in Economics, as well as post graduate degree in Corporate Social Responsibility.

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Events to Be Noticed

Compiled by Alla Popova

Automotive:

Finance:

Telematics Munich 2013, November 11-12th, Munich, Germany.

Frankfurt Financial Information Summit, October 22nd, Frankfurt, Germany.

Telematics Munich is Europe’s largest and most influential business conference & exhibition for the connected car industry. Luxoft is the Infotainment Sponsor of Telematics Munich 2013.

This event offers an invaluable opportunity to network with fellow data executives to discuss the latest strategies to help stay ahead of the business, regulatory, and technology challenges facing the market and reference data community.

Consumer Telematics Show 2014, January 6th, Las Vegas, USA.

FIMA Europe, November 6 – 7th, QEII Conference Centre, London, UK.

The Consumer Telematics Show (CTS) is the most focused infotainment meeting for the automotive industry. Luxoft is proud to be an Infotainment Sponsor of the Consumer Telematics Show 2014.

This is where you meet the key people, from the major financial institutions in the UK and Western Europe representing a spending power of over £3bn, in the reference data and risk management community.

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Events to Be Noticed

Telecom:

Travel & Aviation:

SDN & OpenFlow World Congress, October 15-18th, Frankfurt, Germany.

AIRTEC: 8th International Aerospace Supply Fair, November 5-7th, Frankfurt/ Main, Germany

This is the 2nd SDN World Congress for the advancement of the Software-Defined Networking (SDN) movement. It is one of the industryâ&#x20AC;&#x2122;s largest and most important knowledge exchange on SDN.

Focused, structured, AIRTEC shows the entire aerospace supply chain from design, engineering, testing, and simulation via materials, production, tools, components and systems, electronics, sensors up to life cycle support at one exhibition.

ONF Fall 2013 PlugFest, November 4 â&#x20AC;&#x201C; 8, 2013, at Spirent, Sunnyvale, California This is the fourth private Open Networking Foundation Interoperability PlugFest event and the first hosted at Spirent Communications in Sunnyvale. Luxoft is proud to participate in the ONF Fall 2013 PlugFest.

Find out more at www.opennetworking.org/plugfest

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Sp o t li g h t o n L o c a t i o n

Luxoft in Poland

Spotlight on Location: Poland In this issue, Wojtek Mach the Managing Director at Luxoft Poland shares with us the inside scoop on Luxoft’s growth in Poland.

“Modern business services are becoming a Polish specialty.

More than 400 service centers with foreign capital are already in operation across Poland, with a combined work force of 110,000. (…) Poland’s position on the global market for business services is further confirmed by international league tables. The southern Polish city of Kracow was ranked among the top 10 outsourcing cities on the latest Tholons Top Outsourcing Cities list of the world’s most attractive cities for investment in the outsourcing sector in 2013. So far Kracow is the only Central and Eastern European city to have been ranked so high in this league table. The top 100 list also includes other Polish cities: Warsaw in 36th place and Wrocław in 75th place. The success of the Polish cities is further proof that Poland is increasingly competitive with regard to global leaders in the sector such as India and China. There are two key factors behind the success of Poland’s business services sector: innovation and diversity.

This means that the main strength of Poland’s business services centers is that they provide increasingly complex services that are a source of innovation for their customers.”

Why do you think Luxoft in Poland is growing so quickly?

During its three years of operation, Luxoft Poland has proven to be reliable partner of key Luxoft customers like UBS or Sabre. The Polish team has integrated quickly into Luxoft global structures, bringing innovative thinking and new suggestions for corporate optimization. Managers from Luxoft Poland have been soon recognized as experts able to perform on global scale, in the delivery sector as well as in supporting functions like Marketing or HR. Finally, we have built lots of high performance teams by hiring people with excellent technical and soft skills.

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Luxoft in Poland What do you think is the strength of Luxoft Poland?

What would you say is Luxoft’s market position in Poland?

For me, our top three strengths are: 1.) Collaborative and open-minded managers, working as a single team across verticals and organizations. It creates a friendly yet highly productive atmosphere. 2.) The ability to attract and retain great people. First, we skillfully select people, then monitor and manage them carefully to enable them to grow with the Company. 3.) Poland as near/offshore location is a key destination for the worlds largest firms.

Having Luxoft operations based locally also provides the opportunity to work with customers not active outside of Poland in traditional Luxoft geographies.

Specialists working for Luxoft in Poland have developed a very strong competence in banking sector IT solutions.

We are surely among the leaders of this market in Poland.

It can be estimated that about 80% of our revenue comes from the financial line of business and the remaining 20% is generated through our clients in the Travel & Aviation Industries. Although we are newcomers to the Polish market, we ranked 10th among IT companies with the largest employment growth, 14th among biggest providers of IT services for the banking sector and 15th among IT companies with biggest growth in revenue in the latest Computerworld’s TOP 200 report.

Where are we located in Poland? And why?

Is there anything else you would like to highlight about Luxoft Poland?

The first Luxoft center in Poland started operating in Krakow in 2010. Due to our rapid development, by December 2012, a new center was opened in Wrocław.

We choose these two locations strategically in order to be closer to our client’s headquarters as well as for the favorable investment climate. Krakow and Wroclaw are strong academic centers offering access to highly-qualified employees. The local authorities in these cities were also open to collaboration with investors. In addition to those motives, Krakow and Wroclaw are really vibrant cities which are great to live and work in, and are currently attracting some of the most interesting investment projects.

The success of exceptional marketing campaigns, designed in Poland and then implemented by other Luxoft centers outside Poland, brought Przemysław Berendt, former Managing Director of Luxoft Poland, a promotion to the position of Luxoft Global VP Marketing. Luxoft Poland’s key differentiator is also low attrition, despite having delivery teams sitting in customer premises. We are also proud of our very high satisfaction score, confirmed by results of a satisfaction survey. Luxoft Poland is globally the fastest growing location within Luxoft - in less than 3 years, we have more than 300 people onboard.

How many employees does Luxoft have in Poland?

At the moment, Luxoft employs 340 professionals in Poland with about 290 specialists in Krakow and 50 in the new office we are currently developing in Wrocław. This number will surely grow because we forecast an increase in employment in Poland by 750 IT professionals by the end of 2015.

What are Luxoft’s latest IT initiatives in Poland?

In Poland, we develop IT services mostly for global investment banking leaders. Our specialists design, maintain and develop retail and credit platforms, risk platforms, commodities trading solutions, private and wealth management solutions as well as solutions for travel and automotive among others.

Wojciech Mach, as Managing Director led Luxoft Poland on a path to a 200% headcount and revenue growth, greater stability for his employees and increased prestige as one of the leading IT companies in Krakow. During his time, Luxoft Poland expanded into four major cities across Poland and it is climbing up in Computerworld’s TOP 200 yearly reports. Mach has over 10 years of experience in a variety of roles in Global Delivery centers within Hewlett-Packard Application Services organization.

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Sp o t li g h t o n L o c a t i o n

Smart Facts About Poland

Poland boasts 17 Nobel prize winners, including four Peace Prizes and five in Literature.

Poland is one of the best-educated societies in Europe.

State Institutes of Higher Education include 17 universities, 18 universities of technology, as well as 301 private schools of tertiary education. They employ over 100 thousand scientists; half of them hold a Ph.D. degree.

Warsaw is known as the “phoenix city”, because it was completely destroyed during World War II, and rebuilt with the heroic effort of Polish citizens.

90% of Poles have completed at least secondary education the highest rate in the EU, along with the Czechs, Slovaks, and Slovenes.

According to the report, Polish exports are expected to grow by 55% 2016-2020.

This figure would place Poland second in Europe, behind Turkey Over 10 % of University graduates in the EU are Polish, among whom 40,000 are IT specialists.

The highest mountain in Australia, Mount Kosciuszko, was named after Polish General Tadeusz Kościuszko (1746 – 1817), who fought against the Russian Empire, as well as in the American Revolutionary War.

Astronomer Nicholas Copernicus, the first person to theorize that the Earth is not the center of the universe, was Polish.

Poland is the only member of the European Union that avoided a decline in GDP during the recession of the late 2000s. It is now ranked 20th worldwide in terms of GDP.

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Employment Business Services in Poland Krakow Jan 2012 19,400 May 2013 25,400 30% increase Warsaw Jan 2012 14,200 May 2013 18,900 33% increase Wroclaw Jan 2012 12,600 May 2013 18,400 46% increase

38,415,284 population (July 2012 est.)

Poland is the 6th most populous and the 6th largest of the 27 member states in the European Union.

The economic growth rate for 2012 equals 2 per cent.

The Polish GDP is expected to grow by 1,6 percent in 2013 and by 2,9 per cent in 2014.

L ATEST H Y P E

Accolades for Luxoft Best Buyer Synergy: Harman International Industries, Inc. and Luxoft Outsourcing Center Excellence Award

The Best Employer Branding Campaign EB Stars Awards 2013 of Employer Branding Institute of Poland Warsaw, Poland, June 2013

Dallas, Texas, Spring 2013

Luxoft Poland was awarded for The Best Employer Branding Campaign for all campaign activities in Poland, starting with Sandwich Assault, through Software Ninja and Compo-sing Software Campaign by the Employer Branding Institute of Poland. The Institute is dedicated to educating professionals in the field of employer branding. Luxoft competed against brands such as Citibank Handlowy, British American Tobacco, Ernst & Young, and MARS.

“Luxoft has been a consistent part of HARMAN’s growth strategy,” said Dinesh Paliwal, CEO, HARMAN International. “Luxoft demonstrates a level of commitment and innovation that is definitely in synergy with HARMAN’s vision. We are looking for partners that enable us to take steps into the future minimizing the risks while capitalizing on our great potential and we have found that and more with Luxoft. HARMAN is confident Luxoft will continue to meet its aggressive infotainment development goals.”

Dinesh Paliwal / CEO, HARMAN International

Best Project of the Year in IT & Marketing Russia’s Outsourcing Award 2013

“Outstanding Website Award: Luxoft” www.Luxoft.com

Moscow, Russia, 2013 “Sitecore has high growth ambitions for the Russian market. Our Customer Engagement Platform adds value to organizations by enabling them to engage in one-to-one conversations with their customers and provide a more relevant and personal experience across all channels,” - says Søren Bak Jepsen, President of Sitecore International. “We are excited to partner with Luxoft to accelerate this growth even further.

Luxoft’s experienced and proven implementation capabilities allow companies in Russia to achieve the full potential from our technology.”

Marketing Association, www.webaward.org In a prestigious competition – the WebAward 2013, Luxoft was awarded ‘Outstanding website.’ Websites awarded have been scored to be above others in terms of design, usability, and technology compared to their category peers. The WebAwards is a standards-defining competition that sets industry benchmarks for the best web sites.

Søren Bak Jepsen / President, Sitecore International

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L ATEST H Y P E

Accolades for Luxoft Finalist For 2013 Telematics Update Awards

2013: Global Outsourcing 100® List World’s Best Service Providers

Telematics Detrioit, June 2013

By International Association of Outsourcing Professionals (IAOP)

“We are honored to be among the finalists of this prestigious industry award out of the hundreds of worthy candidates,” said Michael Minkevich, Luxoft’s VP of Technology Services. “Luxoft has been consistently investing in Research & Development (R&D) in order to be at the forefront of the in-vehicle infotainment (IVI) technology and be able to offer the best and most innovative solutions to our clients. Luxoft wants to be an automotive design house of choice for connected IVI experience. We are glad to be recognized for our achievements in the automotive industry.”

Luxoft has been selected in following IAOP Sub-lists:

Michael Minkevich / VP of Technology Services, Luxoft

2013: Best 20 Leaders – Technology (Hardware and Software)

2013: Best 20 Leaders – Telecommunications

2013: Best 20 Leaders – Industry-Specific Services

2013: Best 20 Leaders – Information/Comm.

Technology Services

2013: Best 20 Companies – Research & Development Services

2013: Best 10 Companies – Employees in Eastern Europe

2013: Best 20 Leaders in UK

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“The demand for high-end infotainment in cars is growing,” said Dinesh Paliwal, CEO, HARMAN International.

“To meet that need, Luxoft has proven to be an invaluable partner over the past several years due to its industry expertise, ability to innovate and exceptional product and service delivery.

“In any such partnership, the most important thing is reliability and accountability for the time critical milestones,” said Paliwal. “Luxoft’s leadership and project teams have been incredibly responsive and attentive to our needs, and as a result, we have started treating Luxoft as our extended organization.

We look forward to furthering our relationship with Luxoft and are excited to see what new automotive technologies are possible as a result.

Dinesh Paliwal, CEO, HARMAN International

LUXOFT RUSSIA

MARKETING

10–3, 1–Volokolamsky proezd 123060 Moscow, Russia

Przemyslaw Berendt

Tel: +7 (495) 967 8030

pberendt@luxoft.com Alina Plaia aplaia@luxoft.com

LUXOFT USA FOR CAREER SEEKERS 225 West 34th Street, Ste. 1707 New York, NY 10122 Tel: +1 (212) 964–9900

Tel.: +7 (495) 967 8030 Fax: +7 (495) 967 8034 hr@luxoft.com

4400 Bohannon Dr., Ste. 235 Menlo Park, CA 94025 Tel: +1 (650) 681-1128 +1 (855) 458-9638 / +1 (855) 4-luxoft

Site www.luxoft.com

LUXOFT UKRAINE 10/14 Radishcheva Str., 03680 Kiev, Ukraine Tel: +38 044 206 1808

Follow us on Facebook www.facebook.com/Luxoft

LUXOFT POLAND Ul. Krakowska 280 32–080 Zabierzów

Twitter

Tel: +4812 445 8800

www.twitter.com/Luxoft_tweets

Fax: +48 12 445 8801

LUXOFT ROMANIA 167 Calea Floreasca, Sector 1 Bucharest, Romania 014459 Tel: +40 21 203 6600

LUXOFT UK 1 Liverpool Street, London, EC2M 7QD Tel: +44 (0) 207 956 2840

LUXOFT GERMANY Raiffeisenstraße 30, 70794 Filderstadt Tel: +49 711 90770 396

LUXOFT SINGAPORE 20 Cecil Street, #14-01, Equity Plaza, Singapore 049705 Tel: +7-495-967-8030

LUXOFT VIETNAM Quang Trung Software City, Tan Chanh Hiep Ward, District 12, Anna Building Ho Chi Minh City, Vietnam Tel: +84 85 437 11 78

Executive Digest #5