Strategy
Continue to build engines of scale We are investing in foundational organizational layers essential for our long-term growth, defining them as engines of scale. This includes developing robust, “always-on” cybersecurity infrastructure, scalable and sustainable systems and processes, expanding our incubator and innovation ecosystem, and enhancing scalable, repeatable integration processes.
We are focused on building Fractal for the long term. Our strategy is built on three key elements – take client centricity to the next level, continue to build a great place to work, and continue to build engines of scale.
We are focused on incubating breakthrough ideas from within Fractal through two core elements:
1. Fostering innovative ideas with a strong AI, engineering, and design foundation that will shape the future of enterprise AI delivery, and 2. Providing a platform to nurture, grow, and scale future- focused businesses, whether they are incubated internally or acquired. Our "Ideas to Business" program focuses on investing in new ideas, supporting their development into AI products, and transitioning them into commercial ventures. Successful AI products either stay within Fractal to enhance AI adoption or become independent businesses (Fractal Alpha). These ventures require dedicated attention through a ‘hypercare’ ecosystem, emphasizing expertise in people and culture, sales and marketing, operational excellence, and community. We will continue this approach to drive future growth. As we pursue acquisitions to enhance and build new capabilities, our focused M&A strategy aims to unlock the potential of combined teams and maximize value creation. We apply integration principles distilled from past experiences, starting integration efforts early by expanding pre-deal diligence to include cultural and operational aspects and developing joint go-to-market plans. We assess both - the value the acquisition brings, and what we offer in return. Our integration team collaborates with the target's founders and executives to prepare for the acquisition, structure the organization, and design a successful integration. We will continue refining our integration engine with each acquisition to ensure seamless integration into Fractal. In our pursuit of long-term environmental sustainability, Fractal is committed to evolving as a responsible global citizen. We have pledged to the Science Based Target Initiative (SBTi), and will set validated science-based Net Zero targets by April 2025. We have reported our GHG emissions on the CDP portal for three years and achieved a B Score for the 2023 reporting cycle. Our major corporate facilities in Mumbai and Bengaluru are LEED Gold certified, and Mumbai has also earned WELL Platinum certification as of June 2023. We aim to extend these certifications to all our global office locations.
Take client centricity to the next level Our strategy centers on elevating client centricity by focusing on Must Win Clients (MWCs), serving these clients end‑to‑end, driving success for them, and inventing and investing on their behalf. We target MWC clients defined as clients with over $10 billion in revenue or $20 billion in market cap or over 30 million customers, who are advanced in AI maturity and seek competitive differentiation. Our approach involves dedicated sales, account management, and partnership teams to attract and retain MWCs.
complementary businesses, and plan to selectively pursue acquisition and strategic investments to complement and accelerate our growth strategy. Continue to build a great place to work Our strategy focuses on building a great workplace by nurturing a culture of trust, transparency, and freedom. We hire top talent through scalable channels, invest in developing future leaders, empower Fractalites to manage their own careers, and create a smart, healthy work environment. We believe our values and principles foster a trustworthy, open environment, as reflected in our GPTW score of 86 in FY 2024. We will maintain this culture of trust and transparency, viewing Fractalites as CEOs of their careers with the freedom to shape their paths. We will continue hiring talent through robust and scalable channels such as Fractal 360 (our proprietary, AI powered hiring assessment platform), Imagineer Program (our campus recruitment program), lateral hiring program, and “return from career break” program to attract employees. We will continue to hire specialists across our career tracks, and train them through Fractal Analytics Academy (FAA) and Analytics Vidhya. At Fractal, learning is integral to our culture. We invest in both internal and external training programs to support continuous growth. Our focus on developing strong leaders is reflected in various leadership programs for all employee levels. We also promote peer learning through communities of practice like LIMEN (for Behavioral Science) and Delta (for Generative AI). We believe that enhancing collaboration between organizational units through weekly leadership connects, annual leadership meets, and functional NPS contributes to building a smart and healthy workplace.
Given our digital operations and the confidential data we handle, ongoing investment in security tools, people, processes, and infrastructure is essential. Our cybersecurity and compliance team continually assesses risk, screens for threats, and updates tools and services. We enhance governance and compliance through a blend of people, processes, and technology. With the rise of GenAI, we have implemented a usage policy to mitigate data privacy risks. Our ISO 27001:2013 and SOC 2 Type 2 certifications reflect our commitment to responsible data handling and trustworthy AI solutions. We are committed to building sustainable processes for a seamless experience at Fractal for all stakeholders. For clients, we streamline operations with well-defined processes for invoicing, receivables, and NPS surveys, integrating these into a client resource management system for comprehensive support. Internally, we aim to reduce friction in finance, sales, contracts, staffing, and knowledge management. We are implementing AI-powered talent supply chain software for efficient human capital allocation and using a proprietary AI platform for progressive assessments in hiring, which includes GenAI for question generation and AI-powered video proctoring to prevent cheating. For our employees, we strive to create a seamless experience from recruitment through to alumni status. We use external tools for client resource management, financial management, and recruiting, and have developed internal solutions like our in-house chat bot. Our virtual AI buddy, manages 65% of IT tickets and 70% of payroll queries and uses GenAI for validating Statements of Work (SoWs). We are also strengthening our processes in hiring, finance, and legal, and enhancing our AI solutions by integrating coding productivity tools and our own AI coding agents into workflows.
We partner with clients through the entire AI solution lifecycle, from ideation to adoption, leveraging our comprehensive Fractal Approach. This includes problem reframing, solution building, and scaling AI programs while enhancing our team's technical and functional capabilities. We take end-to-end program ownership by building expertise on their data, integrating with their partner and open-source ecosystem, implementing responsible AI framework, and scaling PoCs (proofs-of-concept) and PoVs (points-of-view) by solving final mile problems of Enterprise AI. Our teams, led by business partners, work closely with client stakeholders to deliver tailored AI solutions. We measure success through the lens of clients (Net Promoter Score i.e. NPS from Client Feedback surveys) and impact creation, aiming to generate at least $1 billion of value per client. We also invest in R&D to stay ahead in AI advancements, developing new solutions and acquiring businesses to enhance our capabilities. Through R&D, we continue to differentiate ourselves and enhance our AI solutions, adding capabilities in new technologies and industry verticals – we invest ~7% of our revenues in R&D annually. Our dedicated R&D teams continue to push the frontiers of fundamental AI research, and develop new products that would be relevant to clients in the future. We have a demonstrated track record of successfully identifying, acquiring, and integrating
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Fractal Analytics Limited | Annual Report 2023-24
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