Creating vibrant knowledge networks in emerging entrepreneurial ecosystems

Vibrant entrepreneurial ecosystems such as Silicon Valley, Route 128 are characterized by a free flow of experiential knowledge between expert and novice entrepreneurs. Experiential knowledge can provide much needed advice, mentoring and moral support to novice entrepreneurs, putting them on an accelerated path and fueling the ecosystem. In mature ecosystems like Silicon Valley, this is possible due to the prevalence of dense formal and informal networks. However, does this exchange of experiential knowledge occur spontaneously in emerging entrepreneurial ecosystems such as the software product industry ecosystem in Bangalore? If not, (how) can it be purposefully created?

The study aspires to answer these questions through an in-depth study of iSPIRT’s Playbook Roundtable initiative, which facilitates a conversation between expert entrepreneurs (EE) and novice entrepreneurs (NE) in a structured setting. Analysis reveals three distinct, self-reinforcing processes – Curation, Interaction and Expansion – that come together to create a vibrant and sustainable experiential knowledge network. Each of the ecosystem actors (novice entrepreneurs, expert entrepreneurs and the entrepreneurial connector i.e., iSPIRT) play a unique role in these three processes.

  1. Curation: Curation is a process through which a carefully selected group of novice entrepreneurs are introduced to an expert entrepreneur who has the deep experiential knowledge in a topic that is immediately relevant to the novice entrepreneurs’ business. In this process, the NE is an access-seeker, the EE is a volunteer and the connector (iSPIRT) acts as tertius iungens broker who brings together network members. Tertius iungens literally means the ‘third who joins’ and is a type of brokerage where the broker introduces two disconnected parties and facilitates direct interaction and knowledge transfer between them. The curation process creates a knowledge exchange platform between NE and EE.
  2. Interaction: The next process – Interaction – builds on the platform created by the curation process. Interaction is the process through which experiential knowledge transfer occurs between the EE and NE in the entrepreneurial ecosystem. In this process, the EE shares his/her own insights and creates an atmosphere for peer learning. In other words, the EE acts as a trust catalyst. The NEs on their part actively participate by bringing their business challenges into the discussion. The entrepreneurial connector plays the passive role of an observer. The outcome of this process is peer learning.
  3. Expansion: The peer learning resulting from the interaction between the entrepreneurs sets off the process of expansion. Expansion is a process through which more NE and EE in the ecosystem are brought into the experiential knowledge network. The NE who benefit from the peer learning become evangelists, bringing more entrepreneurs into the network. The EE also bring in new experts into the network but more importantly, they act as consolidators refining the content/format of the roundtable sessions based on feedback. The connector manages the new entrants in the network, actively mediating between them i.e., the connector exhibits a tertius gaudens brokerage orientation where it keeps the new entrants apart until a suitable platform is worked out to bring them together. This results in network growth which feeds back into the curation process by providing a larger pool of NE and EE to curate from.

The three processes are pictorially depicted in the Figure below. Together, they set up a virtuous cycle that strengthens the experiential knowledge network in the ecosystem.

Experiential Network Creation processThe insights from this study provide clear guidance on how to systematically create experiential knowledge networks in emerging ecosystems. It also highlights the important role played by entrepreneurial connectors such as iSPIRT in nurturing these networks.

 

Indian Mid-market SaaS companies: Forging a new path to disruption

SaaS has changed the competitive dynamics for Indian enterprise software product firms, putting them on a level playing field with their western counterparts. It has opened up new market segments, notably the small and medium sized enterprise market, whose requirements are different from those of large global 2000 businesses. These customers demand products that are less complex, plug-and-play and come at a lower price tag. This has pushed product companies catering to this segment towards a light-touch, virtually enabled model, dramatically reducing the need for close customer engagement, large field sales force, and elaborate implementation – all of which traditionally put Indian companies at a disadvantage.

Leveraging this wave, a new generation of Indian software product firms such as FreshDesk, FusionCharts, KissFlow, WebEngage, RecruiterBox and others have started to emerge. This has created an important disruptive force in the mid-sized enterprise market. What is also interesting is that, in their pursuit for a light-touch model, these companies have evolved a unique strategy to define the product, market/sell the product and engage with customers. This iSPIRT report discusses the three core tenets of their strategy – Digital immersion, Desk marketing/selling and Cloud-based customer engagement.

iSPIRT invites you to participate in the Indian Software Product Industry Survey

As you know, the Indian software product industry is still in its infancy. Your active involvement is essential to nurture and grow this industry and realize our collective dream of building a product nation.

This survey is the first step towards developing a systematic and accurate understanding of the Indian Software Product Industry landscape. The data from this survey will enable iSPIRT to work effectively with various stakeholders (software product companies, government and venture capital) to build a strong software product ecosystem.

This survey has been developed by iSPIRT in collaboration with Prof. Sharique Hasan and Rembrand Koning of Stanford Graduate School of Business.  The data collected will remain confidential and solely with iSPIRT. Any report generated from this data will be on an aggregate basis and individuals and companies will not be named. Should you have any questions about the data or its usage, please reach out to me at vardhini(at)ispirt.in

In this survey, we are asking you to provide basic information about your company, your hiring issues, as well as your funding and ownership structure. You should expect to spend about 20 minutes to complete this survey. We would appreciate that you answer each of the questions in the survey, except for those that are marked optional. We understand your time is valuable and we truly appreciate your participation.

We would be happy to share the survey findings with you. Please participate in the survey online at http://bit.ly/Product_Survey