Platform Roundtable in Bangalore on “Global Platform businesses – Are Indian companies poised to win?” by Dr. Peter Evans, Vice President and Sangeet Paul Choudary of Center for Global Enterprise

iSPIRT – co-hosted the first Platform Roundtable to prime the discussion on Indian platform companies’ game plan for potential business disruption that platform companies bring to a sector. It was held on 12th March at the office of InMobi, Bangalore. The Roundtable was anchored by Dr. Peter Evans, Vice President at CGE and Sangeet Paul Choudary, a CGE Fellow and founder of Platform Thinking Labs.

The theme of this Platform Roundtable was to invite leading platform company in India, to come and participate in an open discussion on the title question with a two-fold focus.

  • To drive awareness on global research to platform companies and
  • To ask for India platform businesses support in strengthening this industry practice research

CGE has been tracking the rise of the platform economy as how such are platforms restructuring industries and economies to answer questions like why platforms so disruptive to traditional businesses /industries. To learn about this from first principles CGE has initiated their first global study of platform companies that is analysing platform dynamics in markets around the world. It goes without saying that software is integral to enabling platforms.

Platform1Given iSPIRT’s ambition and viewpoints blogged by an anchor that product offerings, especially software platforms, are not for the faint hearted but such businesses have grown substantially in recent years to become a much larger part of the economy globally, naturally, we had some questions of our own to pose for the CGE’s two leading platforms experts to answer.

Platform economyIs India destined to be player in the emerging platform economy, where single and multi-sided business models are rapidly gaining size and scale in local and global markets? As a player in this rapidly changing digital landscape, do platform companies understand the rules of this game well? What game plan do I as a platform company must understand and embrace to score runs in this match?

In addition to this CGE had certain research outputs and participation inputs that they wanted to share and start a dialogue with Indian platform startups that we wanted to facilitate to improve the overall ecosystem

Benefits that participating Platform Startups were after are

  • Learning from CGE’s analysis & insights of the research work on platforms done so far
  • Ways to participate and contribute to strengthening this understanding of opportunities and constraints that India platform companies face both domestically and internationally

Attendees of the Roundtable:

Attendees of the Playbook roundtable

Company Name Attendee
99Tests Praveen Singh
AngelPrime Amit Somani
Capillary Technologies Pravanjan Choudhury
CGE Peter Evans
ContractIQ Ashwin Ramasamy
FreeCharge Pravin J
Hano Thiyagarajan
InMobi Preetham
Instamojo Akash Gehani
CrowdFire Sid Menon
LetsVenture Sanjay Kumar Jha
Nowfloats Ram Kumar
Olivo India Pvt Ltd Satish Garimella
Oyorooms Ajay Bansal
Platform Thinking Labs Sangeet Choudary
Urban Ladder Sudhanva Rao
webmobi Sachin Anand
Primaseller Mohammed Ali
Vivek Subramanian

Overview

According to statista, the number of crowdfunding platform, one type of two-sided platform, alone exceeded 450 in 2012 worldwide and majority of them were based in the United States and Europe. This is a small drop in the ocean of number of platform companies that serve many needs, beyond crowdfunding, and as such represent huge opportunity that disruptive companies across different sectors and markets are going after.

Rise of the Platform EconomyMost of the tech entrepreneurs have built interesting products to address various market needs in a platform way – where a platform is built using any base of technologies on which other technologies or processes can be built for a group of external producers and consumers can interact to create value.

Platforms = Scale

Platform businesses, unlike typical businesses (say fortune 500 company) scale up and out very quickly and this pace is only accelerating in the past decade as can be seen in the chart below

Market Cap to a billionPlatform companies reach $Billion+ market cap in couple of years now and this is mainly due to network effect of having more users and creating more value cyclically. Tech entrepreneurs, usually tend to measure user growth of a platform as a yardstick instead of thinking systemically, that platform users play different roles. This approach is incorrect.

Producer Consumer - platform economy

  • Users can be classified as producers and consumers in any platform where the value is created by the producers and consumed by the consumers of the platform given both of them are users of the said platform. Platform as a system has the necessary feedback loop that incentivizes the producers as more consumption attracts more production cyclically so value increases over time as network effect dictates. So instead of user growth the right metric to consider is the interaction between producers and consumers in terms of growth and address any interaction failures
  • Platforms scale quickly in time both operationally and in terms of monetization – For instance AirBnB operates in 180 countries and 36000 cities – so does Uber operates in 45 countries and 190 cities. So they are essentially a globally integrated enterprise in terms of design almost from the get go as contrasted with multi-national corporations (MNCs). In terms of revenue, Apple has paid out more to iPhone/iPad App developers (> $10B ) in US than the Hollywood box collection

Systems theory and Network effect

In response to a question on how best to understand this business we should look for systems theory, micro-economics and appropriate metrics Sangeet mentioned:

  • Instead of user growth, which is at best a vanity metric, increase in production per cohort of users is a better metric of production growth. Similarly, what is “inventory”, and how much time does it take to liquidate it, are there are any consumption request failure (think “ no cars available” message in Uber when you as a consumer go to book a ride) are key interaction numbers for platform companies to dashboard.
  • Essentially taking a systemic view, production feedback loop, network feedback loop encouraging producers to produce more and consumers feedback to consume more are platform target measures.
  • Cumulative value of the platform comes from collection, reputation, influence and behaviour data -collectively these act as switching cost to producers who are multi-homing across similar platforms. Business (especially product managers) should accordingly consider platform data acquisition, user behaviour design for cumulative value optimization rather than as point feature set of platform to compete or imitate since network effects are created at the system level but scaled at the user level.
  • Chicken and Egg problem typical of multi-sided platforms can be addressed by looking at network density of a node and the required levels of production over the amount of production per consumer cohort. For hyper-local or local markets (like Uber in a City X) should be solved as chicken-egg problem for each locality and hence will moderate scale.

increase in productionThus platform business have to focus on removing gate keepers to producer-consumer growth, identify new producers to onboard and disaggregate as necessary via tools etc systemically and micro-economists as needed to design/ troubleshoot any supply-demand problems based on the respective platforms model of inventory.

Business Considerations

Sangeet and Peter also outlined certain business considers that this winner-take-all platform models tend to produce:

  • Do not forget the success of a platform business depends on a number of control points that different from the traditional businesses. Starting with producers and consumers who are both external to the platform, the platforms are not like “Pipes” where Supplier to Company to Distributor/Customer model works in this networked environment.
  • The target or objective of traditional sales team is to drive sales of products of the company which in platform business is produced by producers. Even though as a marketplace, the platform captures the commercialization of goods and services in the platform, it is not produced by the company employees which impacts productivity, brand, culture of the company to highlight a few. Practical lessons like AirBnB getting the first “Hosts meetup” to build culture and best practices of hosting were discussed to highlight details to which platform companies needs to pay attention.
  • Also regulatory agencies are taking a close view at the monopolistic nature of the platforms

The discussion then covered into how in India platforms in Travel succeeded versus platforms in e-commerce and transport are facing tough challenges from global competitors. Everyone one chimed in with interesting thoughts and how such instances played/playing out in China vs India.

Conclusion

It was open session with structured discussion among the participants on about how platform initiatives have unique management challenges and how they need to be managed. Practical aspects of the problem were complemented with research on a macro-, global scale. Participants raised questions on the components of platform business and ways & means to grow them across industries, like health, hospitality, venturing and got validated insights!

Core team for Platform Rt

The high level of interest and engagement from all participants was evident as the session that planned for couple hours on a mid-weekday saw almost all registered attendances coming in well before start time in peak Bangalore traffic and lots of questions with a request to form a platform group for discussions and suggestion to have macro-economists available for early stage startups to leverage.. We finally concluded our first Platform Roundtable for 2015 with a promise from CGE that they will share more research with iSpirt and there will be two-way ongoing exchange on the platform matters such as research sharing, platform database creation.

Wooqer – Successful customer adoptions validate product tagline

logo-2Wooqer is a platform primarily designed to drive communication & engagement across cross-functional, geo-distributed enterprise groups. Wooqer tagline reads “One platform. Unlimited possibilities” and true to this statement, its customers have leveraged it in many use cases where people communicate & engage, specifically in:

– Training & assessments: Induction, product, soft skills or other customer training – replace/supplement face-to-face efforts.
– HO & Branch Operations: Operational activities like SOP into checklists with tasks & workflows that are track-able, real-time.
– Mobile Reporting: Supporting field teams operating out of office (e.g., sales) to report/order in real-time, from mobile devices.
– Knowledge Management: Enterprise knowledge store with right information, accessible by right stakeholders as needed.
– Audits, visits & compliance: Run business on hard data gathered exactly what needed, on-time & without 3rd parties

As you’ll see in this review, all this seems possible and the secret behind Wooqer’s “#1 adoption platform” marketing chest-thumping, comes from adhering to basic tenets of product management – Create products customers’ need, build it well and above all set & meet their expectations. Wooqer team has gone about systematically uncovering enterprise customers’ engagement and communication needs and then built a platform from well-thought-out building blocks. Their promise is to get IT department out of businesses’ way with a Do-It-Yourself (DIY) solution. Going by customer testimonials such as

DIY method allows you to do business understand/enabling processes without taking recourse on IT personnel […] works very well if you want to add value to business.” from Rakesh Pandey Ex-President, Raymond Shop, a Wooqer Customer, they have delivered on it.

This is not to say their journey so far was easy, or slam-dunk. In this fast-paced business world, even SMB owners are moving away from Do-it-for-me model to keep up, and that is definitely the case in large companies. CIOs just provide infrastructure and get out of the businesses’ way. Such trends bode well for platforms like Wooqer, as they provide flexibility for “continuous” business process deployments. Wooqer like solutions are very much a need of the day as organizations nowadays bank on resulting employee productivity improvements.

Wooqer Customers  & Why adoption matters?

Paid customers in Retail sector & Banking/BFSI using Wooqer are:

Wooqer Customers

It is definitely important for any company to have paying customers for various reasons beyond financial. It is equally important for early-stage product companies, to stay focused on adoption (by customers and users if they are different). This is because monetization/revenue does not equate to adoption by satisfied customer who continues to use the product long after purchase and it is function of the business model and pricing strategy (eg freemium). Adoption, on the other hand, is always an opportunity to monetize and is purely a function of product value. Thus using appropriate (read as non-vanity) metric – such as Wooqer’s “#1 adoption platform”–  is important internally and for marketing communication, as it calls out how a business keeps its scores. Interestingly in Wooqer’s case, this focus on successful customer adoption has not only helped them to pivot better but also improve the value they are bringing to customers from what I gather. Any venture – be it an India-first company going after newer high-growth sectors in India (e.g. ecommerce, retail) or Global company coming out of India – after all has to have a metric that is nothing but a measure of the impact it creates in the market place.

The Need – What is the pain being addressed?

Take Brand or Marketing Managers for instance. It is not uncommon they are asked to measure the effectiveness of post-launch product GTM activities and spend along each milestone of this journey below.

Track Leads - Wooqer

   When Wooqer started in 2009, initial focus was to help Brand Managers to be more efficient in creating right content. Once they set out to address their pain point, market gave them the insight into other areas of this post-launch GTM activities journey that are far more fundamental and timely. By staying focused on adoption, I’d opine, founders pivoted their attention there.

In early part of this decade in India’s high-growth sectors (e.g. ecommerce, retail), one of the major problems was the lack of consistency that came from rapid growth. Take retailer Aditya Birla group Madura F&L. With the rapid evolution and expansion of the Indian retail environment they were rolling outlets at a fast pace, as their ability to morph in response to market demands and consumer needs is nonnegotiable. Wooqer focused on these consistency issues.

Engaging and managing their workforce is highly important as success within the retail industry is directly correlated to supporting a consistent brand image and providing superior customer experience. Retail Stores staff count is between 2-4 in small stores to 13-15 in bigger ones, and they have high-school level education. With broadly distributed locations and employee base, it is crucial that consistent standard operating procedures be established and implemented to facilitate their ambitious expansion plans. Marketing and managing many hundreds or thousands of retail products is difficult as is, but once inconsistencies start creeping in around employee knowledge about business workflow and processes, it causes productivity loss.

The Product

My Wooqer - 4 stepsWooqer’s solution to such class of problems that demand improved employee productivity, is synthesized into this platform comprised of tools that enables integrated, two-way, real-time and measurable content exchange channel between the employee producers and consumers of content in a large corporate setting. It is deployed as a multi-tenant, tenant-isolated, elastic cloud-based SaaS offering (a delivery model but not SaaS as a sales model i.e., direct sales, not self-service). It enables each of the Wooqer’s clients to exchange & track the content between any of their business producer and content consumers using a simple 4-step methodology as shown in the adjacent picture.

 

So what are the key insights that Wooqer had? Ones that told them that they can solve an enterprise pain point such as employee productivity with a software application? I would contend the following ones they had uncovered during their systematic search may have something to do with it as these ideas underpin the Wooqer platform.

1. Building block approach

Organizations and teams can explore productivity improvement opportunities through automation where none existed before by equipping their employees with tools, scripted processes & workflows. Wooqer achieves operational effectiveness while enabling flexibility and real time collaboration by reorienting Information, Communication and Collaboration. Modeling how organization groups communicate across distance say between Head Office or Corporate and field offices to support consistency and innovation is a key insight.

Wooqer-Home

Wooqer supports various type of content (files, processes) and gets feedback in a fastest manner thru modular building blocks, which is packaged as checklist, audit, appraisal, data collection, assessments (see picture for sample list). Product collateral like Wooqer compass is also used to mentor, message, monitor and measure the process scripting that users do in the platform.

2. Flexibility to change (sans IT) and track business processes

Information technologies enable key divisions of an organization such as HR, Training, Operations, and Legal, to achieve operational efficiency. In addition, “socially” engaging ecosystem of stakeholders like employees, suppliers, and customers are some of the ways IT partners with business to enhance company’s strategic positioning. For this, the company’s back-end IT infrastructure (“Systems of Record”) must be linked up with the front-line (“Systems of Engagement”), so that information can flow smoothly, and important decisions can be taken in real-time. Wooqer being such platform of engagement, it facilitates user communities to function independently. Supporting business groups that tackle a variety of problems, without requiring them to see scarce IT personnel assistance is a big plus.

3. Look at technology requirements – UX is key to user adoption

One of the pitfalls many application development projects fall into is the failure to take into account the technology changes and the value of the user experience. Needless to say mobile app is very different from a traditional or web app design for the desktop or laptop. Consequently, one needs to take a very different approach for UX and interaction design across these platforms.

To participate in today’s digital economy trends having a platform API is must. Ability to build modular capabilities with lightweight interfaces that don’t require heavy integration are key to connect with business services. Having recently completed Wooqer mobile launch (see above), these important aspects of technology and UX is evidently established well with the team.

Wooqer-on-mobile

Thoughtfully engineering and UX for its target user base has unearthed some contra thinking which comes from deep customer empathy. For instance, staff attrition in retail sector is high (130%) so a single-click handover of work to another employee demonstrates this empathy. Retails users are also not highly educated so Wooqer UX in some areas “deviated” intentionally from standards initially, to enable these users overcome brittleness fear that was felt with slick interfaces shown in prototypes. Even in mobile, they have leveraged both the ergonomics and capabilities of the device and married it well to the existing back-end services to offer a full feature rollout.

It is worth calling out that Wooqer is built as a Private Internet that enables any user ‘to be more’ by creating solutions to their work challenges on their own without sms, email, or phone calls in the shortest possible time by structuring work and measuring results. Prashant A Bhonsle, President at Wooqer adds their adoption drive goes well beyond enterprise users into SME as “Wooqer can not only give cost efficiencies to startups but also help build a culture of collaboration & quick response to market changes because of seamless data & information flow across organization“.

Platform Bells and Whistles  – ‘Have More’

Platform has 5 core features and many add on but all comes as a part of the base subscription fee. Content consumers get access to all assigned content either via native apps in mobile devices (iOS and Android) or web-based interface in desktop that content producers have published typically from their desktop. The content can be in (m)any format(s) like video, documents, audio, flash, etc and all sizes are supported. Assigning is a simple process that “publishes” the content to a list of selected group business consumers. Fine-grain publisher control for publishing like collating them into chapters & modules, ability to verify detailed content understanding, get feedback & start private or social discussion are all built-in.

3 steps - Wooqer

Business users are tracked by the roles they play in the organization – though the platform personalizes to individuals who fill the role. The separation between role and individual is maintained at the platform level which help retain role context & knowledge thru people change.

4 simple workfowsBusiness processes are launched with a workflow that is custom-built around the content at the time of publishing. Creating a process to gather data can be as simple as a survey or more involved to collect any kind of business data. Processes to map workflows in real-time exists including canned workflows like Approvals, Reviews, Complaint Management, Audits, Reports. Adding due dates, escalations, milestones, notifications, and conditions like parallel or sequential branching are supported along with maintaining records for posterity. Workflows can be created in a few minutes and kept current, by updating them in a few seconds.

Support to create alerts, reminders & milestones to summarize business reports and download then into tools like Excel or archive them as per business/IT practices require, are built-out. All this enables Wooqer users (producers) to run their business on data. Getting reports as well as submitting or seeing them or asking any question getting response either periodically or one-time from users (consumers) are possible even when they are away from office.

5 surveysOther personalization and socialization features include spotlighting a personal document, real time talk and feedback (using SMS, with urgency indicator) in the context of a document or business social context. The product is evolving with the users and sector adoption without customer-specific customization and retaining the platform nature. For instance when the banking sector customers came onboard to use Wooqer, issues such as security, uptime and regulation related features were added that also benefitted the retail segment without additional cost or upgrade burden. As they foray into addition sectors (emerging, industrial) and geographies(US, UK), the team seems confident in their ability to sustain a vibrant roadmap with “dip-in, dip-out” product management focus to zoom in and out to see the big picture without loosing the details of a requirement or feature.

The Market

Wooqer platform is primarily designed to drive communication & engagement and hence belongs in the business application market.  It shares this space the likes of Microsoft with its Sharepoint product that was recently strengthened by the $1.2B Yammer acquisition.  With social HR tech, IT and Customer Relationship Management (CRM) software as adjacent spaces, it is part of the broader circle. IDC analysis pegs this market worth for business social networking at $4.5B by 2016, a clear indication that there’s still a lot of open space in the social technology realm — especially in the employee productivity application market where Wooqer squarely sits.

Testimonials & Publications

testimonialsCustomer and industry testimonials for Wooqer are very positive especially from the likes of Retail Association of India, in academic publications (IIMB case study that is currently a Harvard Business Case, SHRM paper on “Solving emerging HR challenges – The Wooqer Way”) as well as in commercial press. Impact they have created in their areas of focus is also worth noting.

• Communication & Engagement: Create a culture of inclusion; work towards a common goal with reduced attrition & higher motivation

• Training & assessments: 100% coverage, more knowledgeable staff and lower cost of training

• HO & Branch Operations: A more consistent experience for your customers and objective data on operational parameters

To quote a Wooqer customer from a press article : Wooqer is becoming a single point of contact with the entire network and for all operational activities. Training emerged as a large-use case as we found ourselves being able to achieve a lot more with the same set of resources. Wooqer has assisted in the democratization of ideas by making sharing of ideas and thoughts more free and open. It has also helped in seeking a majority opinion before implementing the key operational decisions. Hence Wooqer as a platform has been able to address many loopholes. It did take us some time to get started with the platform and discover our own ways of working. The discovery continues till date, as the organization continues to find new uses of the platform.

The Company & Competition

Wooqer is a 5+ year old, bootstrapped product startup company with significant market traction. They pivoted early on with their India-first market learnings. They have established a strong foothold in Retail sector in India and foraying into other sectors like Banking/BFSI and industrial houses in India and abroad (US & UK). They see email and spreadsheet use and ad-hoc way of doing as the primary competition (Sharepoint  & Salesforce to a lesser degree) to displace or be compared with. Annual Licensing on per-user/per-store basis with professional consulting for initial deployment is their monetization model. The Company took first two years to build the platform and it is in commercial operation for the past three years.

The Founders & the team

Vishal Purohit, with his co-founder Pavitra Saxena, started Wooqer in 2008. Vishal was founder for GarageAgain Ventures and co-founder of CoreObjects (later acquired by Symphony Services) as well as everse/Velocient prior to bootstrapping Wooqer. His technology, sales, operations, chief-executive and advisory roles paved his path to Wooqer. Co-founder Pavitra Saxena started as an engineer in Cognizant and soon become senior architect there and later at CoreObjects. Pavitra is Wooqer #1 and together, they have over 40 years of technology & enterprise software experience.  Currently, Wooqer team’s strength is about 40+ with a few outside Bangalore/ abroad. The team includes IIT/NIT and IIM grads, and is roughly 60% engineering/quality and the rest in sales and operations like customer advocacy. They have a unique video-based hiring process and are investing in skill-building.

Road ahead

Though Wooqer currently caters to the banking or retail sectors, predominantly, the use cases described above can certainly be applicable to many verticals. Mobility is also changing everything.

All business will have customers or employees undoubtedly facing business challenges that can and need to be addressed through a front-line “System of Engagement”, so that information can flow smoothly, and important decisions can be taken in real-time.  Every industry all over the globe is looking to benefit from this increased employee productivity and efficiency, so their prospects look bright.