Cheap Kills, Value Wins!

Competing on price is never a great strategy! Cheap Kills, Value Wins! As long you as you have a clearly differentiated offering, you should calculate the value your solution provides your users, and base your pricing on that! And stick to it! Competing on price creates a spiral of death for all competitors, no matter what the industry, no matter what the offerings are!

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Some eons ago, in one of the services start-ups I was with, prospects always brought up a competitor that offered better prices. Why just one? I usually volunteer to provide them an even larger list of competitors that can give them better raw pricing than me. Then I bring up the value of our higher priced offerings and how, over the course of the project, our total costs will  be lower for them, given the superiority of our hiring, training processes, and the higher productivity of our resources.

In another software product startup, we knew that many of our customers tried developing a solution in-house to solve the same problem and failed. We knew that in-house applications will not scale up as well as a carefully designed software product. Our product had the benefit of addressing  a larger variety of problems with all of our customers. And so every customer gets to benefit from better features, rapid customizability and scalability. We priced our offering at high US product prices; they were based on value provided rather than something that is worked from costs up!  We knew we had defensible intellectual property that cannot be easily replicated by any other competitor!

Perils of Competing on Price

Competing on price does not mean that you don’t provide strategically offered discounts on the total price to close a sale quickly.  It means that the only thing that differentiates you from your closest competitor is price and price alone. This is a terrible situation, not just for you, but all of your competitors also. Here are the perils of competing on price:

  • Inflexibility in the Contract – Competing on price does not allow for acquisition of other technologies, products, or people to make the overall effort more efficient and effective. Especially in product companies, a smaller competitor may have developed a product that fits in well with your offering when integrated properly.
  • Tight Margins – Murphy’s Law happens! Key people may leave, unforeseen things may happen at a company. Competing on price and tight margins can turn a marginally profitable opportunity into a loss-making effort.
  • Compromises future people and product development – The margins you make are not just for profits. A large portion of the margins are the monies you have left to be used for continued development of the people you have, or continued product research and development. Competing on price may force you to cut down on these strategic investments.
  • Sets up the wrong dynamic with the customer – The best time to set up a proper dynamic on Pricing with customers is right at the beginning. If you get the contract because you competed on price you have already set up a terrible dynamic. You may never be able to recover from this later on.

Steps towards Competing on Value

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Competing on Value is a careful, long journey and requires faith, patience and a lot more hard work. But when set up correctly, and if the value is proven with a handful of customers, scaling up to a larger customer base is easier. Here are some absolutely essential steps towards Value-Based Pricing:

  • Calculate and Have Ready, Demonstrable Value – First principle of Value Based pricing is to understand, calculate and have ready at your fingertips, your Value. Return on Investment (ROI) calculations, Pay Back Periods, Projected Total Cost of Ownership of alternative solutions are all necessary for you to demonstrate Value.  You need to have them ready even in your initial presentations. Tell them how you may appear more expensive than their other alternatives, but demonstrate how your solution will save them money, effort and time in the long run.
  • Differentiate your offering and Value – Make sure you have defensible intellectual property either in the form of patentable technology or at least a large body of complex code that will take a competitor a long time to figure out and develop. Companies underestimate the value of time in these comparisons. That’s why large software product companies routinely make the buy decision to acquire a smaller, nimbler competitor that provides a part of their overall solution rather than develop it all from scratch themselves.
  • Highlight your plans to add even more Value –  Share some of your future people or product development directions with your prospects and customers. Demonstrate how your plans will enable their investment in you will benefit them in the longer run even more. This will also have the added benefit of getting you feedback on what’s critical for them and what’s not. You will be able to fine tune your own future directions before you spend money on them, a kind of Lean Fine-Tuning!
  • Demonstrate Thought Leadership, don’t be in reactive mode – Whether you are providing software services or software products, thought leadership is a terrific way to demonstrate and provide added value. If you are doing Big Data Analytics products, share with prospects and customers, the thought leadership kinds of activities you are doing in that area. They need to look up to you as an informed, thought leading business expert; not a service or a product supplier. Those are the tools with which you add value.

Competing on Price is a losing proposition. Nobody wins and all competitors including you will be in a downward spiral with that strategy. On the other hand Value-based Pricing when done correctly can facilitate a longer term, mutually beneficial partnership with your customers. When done correctly, it enables you to defend and build your business with your customers and help grow your company in the process!

Price is what you pay. Value is what you get – Warren Buffett

 

IT: Enhancing Healthcare for a Better Quality of Life

Information Technology has successfully reshaped our lives in ways unimaginable even a decade or two ago. The era of the telegram is now officially over and access to information is not just at our doorsteps but at our finger tips, due to the availability of communication tools like cellular phones, computers and the internet. It is no wonder then that technology has played a key role in healthcare as well and has the potential to completely change the way we deal with a disease at various stages.

The current government rightly focuses on using technology to improve the dismal standards of basic healthcare, not just for the urban population but also for people living in rural settings in remotest corners of ‘Bharat’ which is home to almost 70 percent of our country’s population. Evidence from national and international data clearly shows that the effective use of ICT in healthcare can improve access to better quality services, reduce costs, and empower doctors as well as patients. India has been aggressively experimenting with IT in healthcare, with notable progress in ‘m-health’, ‘tele-medicine’ and ‘e-health’. Many of these services are ready to take the next step and be scaled up to achieve their true potential. The use of IT in healthcare can be the first big step in improving the primary healthcare network in the country.

Simultaneously, it is also important to tap the energy of the private providers of healthcare services in India. Some estimates suggest that by 2012, private sector comprised 80 percent of the healthcare providers in India as against 8 percent at the time of independence. Traditionally, the private and public healthcare sectors in India have viewed each other with mistrust, and to get them to work in tandem is not an easy task. Efforts need to be made towards building confidence and fostering cooperation. This is where the true advantage of IT lies. Technology is available to doctors in both the sectors and can be used for notifying, reporting and following up on medical cases.

Take the issue of Tuberculosis in India, which accounts for more than 25 percent of the new TB cases worldwide. This contagious airborne disease kills almost 2.4 lakh Indians every year and is among the top four causes of death in adults. The Revised National TB Control Program (RNTCP) provides mechanisms to ensure treatment adherence monitoring and support, but these currently reach patients treated by the public sector. Inappropriate, inadequate and unmonitored care could lead to treatment failure, recurrent TB, and most devastatingly the development of drug resistant TB. Hence, proper mechanisms for awareness and monitoring for all TB patients, whether publicly or privately-treated, become all the more important.

In 2012, RNTCP launched e-NIKSHAY, a case-based and web-based reporting and recording system that would act as a centralized avenue for data collection of TB cases; aiding state and local systems to track the progress of patients and keep all the stakeholders in the loop. Over the last 6 months, in the Mehsana, Mumbai and Patna pilot Urban-TB projects, such IT- based systems have helped issue over 10,000 drug vouchers for privately-treated TB patients, and linked those patients to improved treatment monitoring and support. Total TB case notification in these districts, including public and private, has improved significantly demonstrating its success and importance. Increased transparency and monitoring leads to better planning and accountability.

The main reason behind the success of any IT application is its user friendly attribute. It is time to reach out to private practitioners with easy-to-use applications that take minimum time, and yield maximum value to providers and their patients. The most basic yet powerful communication device, the mobile phone, which is used by over 70 percent of Indians, will help us penetrate in the remotest corners of the country. This device can help extensively in increasing the reporting of cases and keeping a close watch on patient who often skip medicine. The Union Government’s recent launch of an initiative to maintain an electronic treatment record of TB patients by encouraging them to send a missed call notification on a number printed behind the strip of the drug is a classic example of how reporting and follow up can be done without involving significant extra cost and effort. This will help the treatment provider to intervene at the right time in case the patient misses a dose.

Training and education in e-healthcare plays the most crucial role in the implementation of these projects. For this purpose the Indian Council of Medical Research has made an open access online bibliography and there are hospitals which have collaborated with universities to teach certificate courses in telemedicine.

India is a leader in innovation, research and IT. It is important that this innovation potential and its resources are harnessed to combat India’s healthcare challenges. If we truly want to improve access to healthcare and sustain it, we need to scale up such innovative new practices by providing adequate resources and encouraging the appropriate skill-development. It’s time for us to move beyond working for IT and start making IT work for us.

Announcing the second edition of iSPIRT’s index of the top 30 B2B software companies in India! 

We believe this index adds an important objective component to the discussion on the emerging B2B software industry in India and shines a spotlight on an under-reported sector to drive policy, entrepreneurship and advocacy.The first edition of the iSPIxB2B index was published six months ago – the report and blog post are here.  We got numerous press mentions, including in the Economic TimesHindu and Tech in Asia, and a lot of tweet love.

So now we need your help: please recommend and put us in touch with any strong B2B software companies that you know that meet the following criteria.

  • the company sells software (such as marketing automation or storage infrastructure) to businesses on a license or subscription basis OR provides a B2B service (such as an ad-tech platform) driven through a differentiated software offering
  • the company was founded in India or has co-founders who were/are based in India
  • the company has $5M (Rs 30cr) or more in annualized revenue and/or is worth more than $25M (Rs 150cr)
Just fill in the fields in the form or you can email us at ispix(at)ispirt.in

Business Software Discovery made easier by SoftwareSuggest.com!

SoftwareSuggest.com is India’s leading business software discovery and recommendation platform. Product Nation interviewed Ankit Dudhwewala, co-founder and CEO of the company to understand their journey thus far. Read on…

SoftwaresuggestHow did you hit upon the idea of SoftwareSuggest?

The idea of providing a software discovery platform came about on account of my own prior experiences. In my earlier stint at a mid-sized pharma company, we spent close to about 3 years and multiple iterations to finalize the right ERP software for our firm. The entire process drained us out on all fronts, and at the end, we still did not have the right software solution that met our needs. This experience of mine made me understand that lakhs of similar buyers in India face the same problems that I faced. I sensed that there was no single place where a buyer would be able to reliably understand the software offering, compare different vendor solutions and get feedback/input on best practices of deploying software solutions. On the sellers’ end too, I figured out that such a platform would help them build their sales pipeline and gain credibility in the marketplace. Hence, we started SoftwareSuggest.com in 2014.

What has been your learning thus far? What worked well for you, and what did not?

In terms of positives, our hunch that there is an unmet need related to listing, reviewing and selection of software solutions both from the buyer and the vendor side was very quickly validated. Within 2 months, we had enough traction that helped us in validation of our idea. As more and more queries came from both buyers and vendors, we were able to scale up and provide a categorized listing, review and consulting option for both parties. This has resulted in us listing over 2000 software solutions from various vendors, across business functions, and over 1500 customers using the platform to review their software needs on this platform.

I think this scale and acceptance of the platform has been achieved primarily because we have been very conscious of quality of solution offering while on boarding our vendors and at the same time, have a good customer service mechanism for prospective buyers evaluating a software solution buy. In just about a year, we have good working partnerships with key SME software vendors, for whom we have been valuable in generating qualified leads, resulting in quicker sales of their software offerings. For the customer, our free consulting services, coupled with a converged list of qualified vendors implies that overall time and effort spent in evaluation, purchase and deployment of software solution is greatly reduced. This has been the key factors aiding our success thus far.

As regards to areas we could have done better, I think during our initial months of operation, we did not do a good job in advising a few of our prospective buyers, not to proceed forward in search for a software solution. These set of prospective buyers were just trying to mimic other colleagues in their line of business, but did not fully understand how to use software solutions to their benefit. We spent enormous amount of time to make these set of customers realize that they were not yet ready for software adoption. Looking back, I now feel that we could have dealt with them better.

There are global players who offer such software discovery platform elsewhere. What do you do differently from them, and why?

I agree that there are a few known names who offer similar kind of platform in the developed countries. However, one needs to understand that what works there will not necessarily work as is, in the Indian scenario. While at a macro level, our platform and other existing platforms may appear to provide the same functionality, the differentiation is in the level of details.

India, as an emerging economy has its own nuances. The variety of small businesses in the country, the diverse range of awareness of small business owners in understanding the value of software, the approach of evaluation of vendors, and so many other aspects are very unique and different in India. Since we understand these nuances more intimately than any other existing vendor, we are able to cater to these needs, and hence get better satisfaction levels from buyers as well as sellers, who use our platform.

Great insights! As a last question, can you share with us top three things that you have learnt working with Indian customers, that other fellow product entrepreneurs could benefit from?

I cannot say if this is true for all products/services targeting Indian customers, but, in our case, we have been very clear that our business model should not look at charging the customers, when they come to evaluate different software options. All of our revenue come from our partnerships with vendors, as of now. It is our firm belief that the more and more we enable our buyers, our platform will get further strengthened and be of more value.

Secondly, I think there are lots of opportunities, similar to ours, where in many challenges faced by Indian customers can be alleviated to an extent – by streamlining the processes via platforms. We just are solving the pain points of software discovery and evaluation for the Indian customers. I believe there is scope for other product entrepreneurs to look at areas where ease of doing business can be enhanced.

Lastly, just the sheer size of the Indian market and the demographics make it worthwhile for product entrepreneurs to look at India as a market to offer products that solve local needs. There are already a few success stories here, but I believe these are just the tip of the iceberg. There is unlimited opportunity for the product entrepreneurs to make a difference!

Product Nation thanks Ankit for his time and wishes him many more successes in their venture!

Inflexion – Technology Summit: An evening of insights and observations

I was invited to “Inflexion” an event organized by Signal Hill and iSPIRT. The duo have in the past co-created the report on Technology M&A in India (link) which was very educational, so my interest was piqued and decided to go.

The evening was started by Scott Wieler, Chairman & CEO Signal Hill. He mentioned that $6.9Bn of VC/PE money has been invested in India in last four years (2011-14). However, the M&A value generated is just $1.7Bn. So with a value creation ratio of 0.2x, India is far behind US (3.0x) and Israel (5.3x). This led to the insight that M&A values will need to increase by more than 15x over next 3-6 years for this ratio to catch up to US and Israel levels. My hope is recent acquisitions by Flipkart (Myntra), Snapdeal (Unicommerce), Facebook (Little Eye Labs) and Twitter (ZipDial) – are good trend in this direction, and we will see a lot of action happening in next couple of years. This augurs well for Indian entrepreneurs.

Next came the retrospective by N.R.K. Raman – co-founder of i-FLEX Solutions. Very interestingly his company was probably the first VC/PE backed unicorn in India! They were bought by Oracle for nearly a billion dollars. A lot of i-FLEX’s story was about perseverance and street smarts. We keep on talking about product-market fit – this was a phenomenon written all over i-FLEX’s success. The founders were working in the banking software industry inside a bank (Citigroup) – and understood the inefficiencies of the system. They jumped the boat, separated from the mothership (albeit Citi wrote them their first $400k) – and launched a product that found ready takers in the market. It was not the dramatic high burn, breakneck growth story but rather a well thought out, methodical plan executed with hard work and business fundamentals kind of story.

As the night became young, Flipkart’s co-founder Binny Bansal and YourStory’s Shradha Sharma, stepped onto the stage. Binny said that the one thing keeping him awake at night is “finding high quality talent and retaining them” – interesting to note that the big guys have still the same challenges as newbie startups. As an investor, I feel it is becoming very competitive to hire good talent. That one perfect designer or product manager you have found – chances are will have multiple offers in hand, if not thinking about doing his own startup already. The other big focus area that Binny mentioned was mobile – if you look at the data, I think the writing is on the wall – by 2016 – 80%+ of India’s internet population will access Internet more by mobiles than by desktop and my guess is 60%+ of India’s internet population will have never accessed internet using desktop. So Flipkart’s worries are talent and mobile.

Then Sharad Sharma, iSPIRT co-founder and Governing Council member, delivered a short punchy talk. He explained how small sub $50m dollar exits are the lifeblood of any tech ecosystem. Unless they happen in enough numbers we won’t get Billion dollar exits in the long haul. I learnt that iSPIRT’s M&A Connect program has been instrumental in getting Facebook, Corporate Executive Board, Yahoo, Intuit and Twitter become first acquirers in India! The M&A Connect program is now on a one-acquisition-a-month run-rate and aspires to get to a one-acquisition-a-week rate in the coming years. What an inspiring story of volunteer magic changing our ecosystem for the better!

Sharad then talked about global SaaS startups. They are gaining momentum. He also outlined why software product startups targeting Indian SMEs will be big in the coming three years.

We then broke for drinks and dinner. The book “Conquering the Chaos: Win in India, Win Everywhere”, authored by Ravi Venkatesan, iSPIRT Adviser and former Chairman of Microsoft India, was gifted to attendees of the event. It promises to be an interesting read.

Announcing the top global CIO’s/CTO’s for InTech50 2015

It only gets better …

We are proud and happy to share the names of the CIO’s and CTO’s – the best that the tech world has to offer – globally.

And we will do it right here, in Bangalore.

In three weeks from now, high on our success from last year, we will again showcase carefully and diligently selected 50 tech companies from India, to a congregation of CIO’s – who have changed the tech scene in their own respective companies. Visionaries and experienced, they will interact and deep dive into what these 50 startups have to offer, thereby creating credibility for these startups through their support and validation.

Through a strict and comprehensive selection process, our eminent jury has already declared the first 20 finalists of InTech50 2015. We will announce the remaining 30 shortly.

Here is whom they can expect to interact and hobnob with during InTech50 2015 –

Encouraged by the overwhelming response from the startup community, we look forward to closely working with them and are committed give India its rightful place under the sun as a ‘product nation.’

Guest Post by Arvind Kochhar, Co-Host, InTech50

Great Tech Rocketships (GTRS) to the UK – a UKTI, Tech Hub UK and iSPIRT initiative

Great Tech Rocketships to the UK is an initiative by UKTI to assist companies from India that would like to do business in, with or from the UK.

(UKTI, or UK Trade & Investment, is a UK Government department whose mandate is to assist UK based businesses in their overseas expansion, and also encourage the best overseas companies to look to the UK as their global partner of choice.)

UKTI chose TechHub, a London & Bangalore based co-working facility, and iSPIRT as their key partners to implement this program on the ground.

iSPIRT saw this as an ideal platform to encourage and assist Indian software product companies go global. According to Sharad Sharma, “The Rocketships initiative is another significant step forward in the journey to create a product nation here in India. It was a wonderful opportunity to collaborate with TechHub and UKTI to provide a platform for high-potential companies in India to explore global markets.”

GTRS is intended to be a long-term initiative for creating a platform, to assist high-potential companies from India, explore UK as a destination to do business, in, with or from.

The initiative launched was an interesting competition wherein 5 high-potential startups were selected from nearly 300 applicants, and are now on their way for a one-week sponsored tour of the innovation hubs in UK.

The program was launched at a packed event at Tech Hub’s Bangalore centre on the 3rd of Feb. Our call for entries was an application form, with a one-minute video pitch. We connected with a lot of companies – through social media, emails, and even personal phone calls. The response we got was overwhelming. In the last four weeks that we launched and called for entries, we received nearly 300 entries from companies across India. What was most satisfying was that 55 of these companies scored 4 or 5 on a scale of 1 to 5, and 25 companies scored 3, indicating an overall high quality of software product companies across India.

A jury comprising of Sharad Sharma, Mohandas Pai, Stewart Noakes, Dr. Vicky Pope, and Dr. Chris Moore, selected the winners from a list drawn from among the 61 companies that were shortlisted to present at Demo Nights held across 5 cities – Bangalore, Hyderabad, Pune, Chennai and Delhi.

With rigorous effort and comprehensive screening, we are proud to showcase the following 5 companies as the finalists of the first leg of the Great Tech Rocketships to the UK initiative –

  • Frilp – The quickest way to access the local knowledge of your friends and our experts.
  • Agrima Infotech – Development. Design. Online Marketing.
  • Talview – Talview is a pioneer and leader in video based assessments. It has more than 1000 clients across the globe from startups to Fortune 100 and have completed more than a million video responses across 102 countries.
  • Tonetag – ToneTag allows easy, frictionless & secure proximity payments using soundwaves (Tone) or NFC (Tag) and enables Contactless experience on any device
  • Congruent Technologies – Multi-national IT-solutions Corporation, with deep domain expertise in the financial services, healthcare, education and e-retail verticals

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The winners gets –

  • A week-long trip to UK, that includes flights, accommodation
  • Deep-dived interaction with world class investors, incubation hubs and science tech parks
  • Guided tour of Tech City, Europe’s most vibrant innovation hub
  • Network with like-minded entrepreneurs, start-ups, research scholars and pioneering companies

Also, the Founders of each of the shortlisted companies will be further empowered in their endeavor, by way of a year’s membership (Flex) from TechHub, which will enable them to leverage the global network and support system, thereby fast-tracking their journey of going global.

Long-term impact

While these 5 companies were shortlisted as the winners, iSPIRT is committed to guide companies that have the potential & desire to go global, and UKTI is committed to assist in anyway they can in the company’s journey to the UK.

iSPIRT is glad to have developed a strong working relationship with UKTI, Tech Hub, and through them we are now better connected with the entrepreneurial eco-system in UK.

There are several programs and incentives that are available from the UK Government, and UKTI not only can provide you information about these programs but can also assist companies in accessing programs that may be relevant to them.

As iSPIRT, we would love to see Indian software product companies go global. Great Tech Rocketships to the UK is one significant initiative which will help iSPIRT provide deserving companies a facilitated access to UK, thus paving a path for their European and global expansion.

Should you be interested in knowing about opportunities in the UK, or if you are keen on exploring what the opportunities in UK are, drop us a line at gtrs(at)ispirt.in. Wherever relevant, we will be happy to connect you with our contacts at UKTI and Tech Hub.

Here’s how India’s “Product Nation” ambition be achieved and what the Budget can do for that ambition

The Next Google, Made in India

If you look at the Indian business landscape, you will see several successful services companies in fields like airlines (e.g. Jet, Indigo), health care (e.g. Apollo, Manipal), mobile phone services (e.g. Idea, Airtel) and IT Services (e.g. TCS, Infosys). Many of these companies are comparable to global peers, if not potential world beaters. What we don’t have are the corresponding product companies. We don’t have an aircraft maker like Boeing, a pharma company like Pfizer, a network equipment company like Cisco, or a software product company like Microsoft.

Is this is a problem? Yes. Because Boeing and Airbus alone generate almost as much profit as all global airlines put together. Pfizer’s profits are more than the profits of top 100 hospitals in US. Cisco’s profits are more than those of all European mobile operators. Microsoft generates more profit that the profits of top 20 pure-play global IT Services firms. Take a moment to digest that and it becomes clear that if India remains bereft of product companies, it won’t be a sustainable economy in the future.

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Building product companies is hard, to be sure. Despite the fanfare, Tata Motors’ Nano has failed. And, sadly, Bajaj has been humbled by Honda in the last two years. In high-tech, Ittiam, despite its success in developing core intellectual property in online video, hasn’t broken into the main league. And, with our borders open to global competition, is it too far fetched to imagine that in a few years Amazon would have pipped Flipkart and Uber, not Ola, would rule our roads? We may have Indian players serving our digital consumers, but most categories might be dominated by foreign companies. Google already owns our search, Skype owns voice messaging, Facebook owns social media.

Is India destined to lose all these battles? Maybe not! But if we have to win, we have to embrace a new gameplan. Products, especially software products, are a winner-take-all business. Either you win or you are a nobody. Its not a place for the faint hearted.

In fact, tentativeness translates into a loss. It leads to sub-critical investments. We are staring at a costly example of this in the nuclear reactor industry right now. India can build 700 MW reactors. But economies of scale now kick-in at 1600 MW. Since we didn’t invest enough in the last 20 years (despite a wonderful start that Homi Bhabha gave us in 1950s), we are not a player in this large-reactor segment. So we will spend more on buying these bigger reactors from France, Russia and US in the next three years than what we have spent on our entire nuclear industry in the past 50 years! This is a really expensive failure.

If this was a one-off case it would still be okay. It is unfortunately not. In telecom, despite CDOT, CDAC and Sam Pitroda, we have only created one Tejas Networks, a nifty networking start-up from Bangalore. But, guess what? Tejas gets a pidly 1% of the annual telecom capex buys in the country. Rest is imported. We have a big rail network but no rail equipment companies. We are a generic drugs superpower but limp when it comes to new drug discoveries. These failures to create product winners don’t even faze us. We pretend it doesn’t matter.

We don’t even introspect why this is the case. When one sets out to create the world’s best hospital, airline or IT Services company, one builds in layers over years. But building a world class product company needs a different mindset. You have go all-in and bet-the-company on market or technology shift that is underway. This mindset is new to us in India. Our success in building services companies comes in the way. We have to accept this Provenance Effect; it is subtle yet significant.

To be sure, we are not the only victims of this effect. Taiwan is a victim of this too. It isn’t a player in mobile phones, ironically, because its design services legacy holds it back. Venezuela is not able to crack the chocolate market. El Ray owns the high end cocoa market, a key raw ingredient in chocolate, but comes up a cropper in high chocolates. If you ask the Belgians or Swiss, they tell you that they are a chocolate nation because they don’t have the cocoa mindset. Lack of a services industry legacy helps not just Korea but also Estonia (created Skype) and Finland (land of Nokia and Angry Bird games). It turns out that mindset matters — big time!

We have to jettison two ideas that hold us back from becoming a Product Nation! The first one is rather simple. We have to accept that no matter how well-run Indigo Airlines is it’ll not become a Embraer or Boeing. Similarly, a Narayana Hrudayalaya hospital will never bring a drug to market like a Pfizer does. Airtel or Verizon will never build a router like Cisco or Juniper do. And TCS will never be a Microsoft. Acknowledging this plain reality is the first step that we must take.

Then, we must discard our mentality of unbridled greed and reluctance to make bets — best showcased in our penchant for large Olympics contingents. Nobody cares about how many athletes you send to a sports competition, they only care about the number of medals you won. To improve odds of winning, small focussed efforts produce better results than grandiose schemes. Today, we have four times more new startups than Israel for one-sixth the outcomes. One reason is that the ecosystem enablers are narrowly sector focussed in Israel. The accelerators that help medical device companies don’t work with cyber-security start-ups there. Can’t we have a sector-focussed approach in India aiming at solar energy or medical devices, to name just two promising areas to bet on? If someone needs proof of concept: look at our performance in badminton and wrestling in India in recent years. The enablers in these sports are game-specific. Anything that smells like a generic “startup” program will have a low impact. It quite likely to be a scam!

Software product entrepreneurs when they are successful make a big economic impact in this winner-take-all world. So they are being courted worldwide. US is trying to get the Startup Visas in place for them. Canada already has a working program. Singapore has startup tax exemption. UK is in the game too. In our last budget there was a tantalizing line about “a special focus on software product startups”. Nine months have passed and nothing material has happened yet. Maybe this new budget will bring some well thought-out policies to light. This year 75% of newly funded software product startups will redomicile themselves in Singapore or US (up from 54% last year).

It is time for India to wake up to our Product Nation imperative. It is an opportunity for the NDA government to write history again. In 1998, they introduced a 108 point policy for IT services and we have the benefits around us to see. Now, they must do the same for software products. For the first time in modern India’s history, we have a chance to create world-winning products from India. The decisions we take today to support our flight to become a Product Nation will decide whether tomorrow’s Google, Viagra,Facebook, or Uber come from our nation. Act now.

Jointly written by Mohandas Pai & Sharad Sharma for Economic Times. 

NEED FOR CUSTOMER CENTRICITY

Today’s competitive market is reducing margins and driving enterprises from customer acquisition to customer retention approach. The need of the hour is customer centricity, to create products around customer needs.

Telecom service providers, unlike online industries like Amazon, Apple, Google and eBay, store customer data in silos due to the inherent complexities in the service portfolio. This in turn impedes 360 degree view of the customer and adversely impacts customer loyalty.

“There were 5 exabytes of information created between the dawn of civilization through 2003, but that much information is now created every 2 days, and the pace is increasing …”

Eric Schmidt, Google CEO, at Techonomy Conference 2010

The first step towards customer centricity is to break these silos and transform them to a unified platform that gives a 360 degree view of customer data and then pool all customer data into a central warehouse that maps different lines of businesses to a customer.

“The teams merged but the systems didn’t, so from the outside it looks like a merged company, but from the inside we see a mobile customer, a TV customer, an Internet customer, but sometimes they can all be the same person.”

Martin Péronnet, Monaco Telecom CEO, from www.totaltele.com

The second step is to use this unified platform to deliver customer knowledge that will be used by marketing to send relevant offers for up-sell and cross-sell. Further, you will have to move into interactive operations by identifying customers (based on daily usage)who are prone to move to another operator. These customers are given personalized and relevant offers to retain them. The final step is to align all departments in using the consolidated customer data in their day to day operations to provide a superior customer experience.

Customer centricity is not about replacing your existing systems, but it is simply a realignment of your processes for business agility and operational efficiency.

Reference
What customers really want. (n.d.). Retrieved January 27, 2015, from www.rolandberger.com

Microsoft Windows 10 needs more than an oil-change, it needs an overhaul.

The author extrapolates learnings from the last ten years of the Indian Automotive industry and makes the point that all things remaining equal, success in emerging markets depends largely on how premium a design feels in the hands and eyes of consumers. He suggests that Microsoft adopt a bold and fresh approach in the redesign of Windows 10.

I have been using Microsoft Windows since 1990, i.e. for over 25 years. I have also been associated with Windows beta programs and have had the chance to see a preview of Windows 95 way back in 1993.

Today, I use Windows 8 at work, at home, on my tablet and on my phone

You can read a little more about my interests here.

It’s evident that Windows 8 has not been the gushing success that Microsoft thought it would be with consumers i.e. people who have a choice of personal home and desktop computing platforms. Corporates in most cases do not have a choice but people do and I believe they have spoken by staying away from the platform.

My urgency for writing this article is the upcoming Windows 10 Preview that Microsoft is expected to show to the world on January 21st, 2015. And while I don’t expect them to turn their ship overnight, in the 6 – 9 months running up to their launch in mid to late 2015 I can only hope Microsoft can make some adjustments to its design keeping in mind the sensibilities of a billion Indians. And why just Indians? I think this can apply to a consumer in any part of the world.

I ran my own digital and web design team for 6 years in the mid – late 1990’s, a time when the closed Indian consumer market was just opening up to brands. It was an exciting time and it taught me that traditional “European and American” aesthetics do not always work for the vast majority of Indian consumers.

What follows below is my analysis of how Microsoft can learn from carmakers and their travails in tackling this hard-to-understand yet lucrative consumer market.

Doors and Windows: Yes. Cars and Windows: Yes.

I track the growing auto industry in India/Asia very closely because I love cars, motorbikes and driving in general. I’ve also read every decent car magazine that’s sold in India for the past 15 years. I’ve observed the Koreans, Germans, Czechs & Japanese come into this market to try and succeed. I have also observed how Indian auto manufacturers have tried to stay relevant and competitive in the face of impending competition.

Is it really possible to try and draw a parallel between Windows 8/8.1 and foreign carmakers in tackling the Indian consumer? I believe there is because just as people have personal preferences in choosing their next car, they also have preferences when it comes to devices. The two are not that different if you think about it.

Windows 8 & METRO: Why it was needed

I totally get why Windows 8 was what it was. Microsoft needed a differentiator in the tablet/touch market and Windows 8 allowed them to try and have a crack at the iPad. It was a huge risk and as it happened, one that failed.

For those who don’t know, Windows 8 was Microsoft’s attempt to try and make the traditional desktop and newer touch worlds coexist at the same time. In addition, Windows 8 also incorporated the Metro design language, a flat design language that relied more on typography, function and content, and less on graphics.

Unfortunately, Microsoft wasn’t able to attract enough consumers to embrace and use Windows 8. And while one may argue that the Windows 8 numbers (350 million now?) are high enough, we also know that a large part of this is in the corporate/enterprise space where customers really don’t have an option.

I’ve spent many hours at IT supermarkets and have seen the lack of interest amongst shoppers in the Windows Laptops on display from the big OEM’s: HP, Dell, Lenovo, Acer…and so on. And while these OEM’s do not make bad PC’s, the Windows 8 screens and interfaces are just unable to excite even a casual shopper to stop and take a look.

But, before I offer any suggestions, let me elaborate on Indian market demographics and the overall positive sentiment that exists for Microsoft.

Why India should matter

India as a market should matter to Microsoft.

Almost every Indian I know has a friend or relative working at Microsoft Redmond. Bill Gates, and now Satya Nadella, are role models for many an Indian parent and child and the Microsoft story is an exciting one. Many markets in Indian cities and small towns have huge signboards that advertise courses in MCSE/IT Administration, Word, Excel, MS Office, and SQL Server. I’d estimate that more than half of the software engineers in this country work on .NET, C#, ASP and so on. Most SME’s in this country run Windows Server and Microsoft Office. Nearly everyone I know has used Windows at some point in time in their careers. Overall, India is bursting with positive energy for Microsoft as a company.

But, India is also a market where costs are an issue for mainstream computing products. MacBook’s and iPhones cost twice as much here and are a complete rip-off in my opinion. And because volumes aren’t high, I doubt if Apple will ever want to, or be able to drive costs down.

That leaves Chromebooks. The half-PC’s that aren’t really PC’s for anything other than light browsing and some media consumption. You NEED to be connected to make Chromebooks work well which is a problem because not only are data plans expensive in India, connectivity by and large is downright horrible. (And yes I know that Chromebooks can sort-of work offline but…)

India also does NOT yet have a popular BYOD (Bring Your Own Device) culture at the workplace. This further increases the likelihood that many professional workers use company-provided Windows devices and MSOffice in their places of work.

So, you have expensive MacBook’s/iPhones on the one hand AND Chromebooks crippled by poor connectivity on the other. In this kind of market, could there be anything more important for Microsoft than Windows 10 to ride this perfect storm of opportunity?

In short, no. But they HAVE to get it right.

Let’s take a few examples of hits and misses from the automotive industry in India.

Skoda & VW

In the mid to late 1990’s, Skoda, a small and relatively unknown Czech carmaker was greeted with sales success here in India with its maiden model, the Octavia. This surprised many as Skoda cars are perceived as ‘cheap’ in Europe and were known to have after-sales issues that exist even today. But somehow Skoda did great by any standards and probably even exceeded its own targets.

Skoda succeeded here because Indians fell in love with their designs, AND, the relative affordability of buying into a European brand. It was only natural that Volkswagen, Skoda’s parent company, followed suit some years after, hoping to match if not exceed the success of its junior brand. The Skoda Octavia now started competing with the VW Jetta. The Skoda Superb with the VW Passat.

Needless to say, the numbers were less than encouraging for VW. What made it even more difficult to digest was the fact that every model they launched was qualitatively superior if not similar to their Skoda counterpart. After all, these cars shared common components and relied on a global pool of high quality suppliers.

What was the problem?

The answer lay in the design. VW’s design was far from inspiring for Indian tastes. While dark grey dashboards, steering wheels & interior upholstery are actually seen as cool and avant-garde in Europe AND in some cases even represented as premium (e.g. BMW M3/M5), these design elements do NOT excite the Indian consumer in any way.

Skoda sold better here because Skoda’s car are generally prettier than their VW counterparts. They have edgier styling with chrome accented bodywork, wood-panels and chrome linings on the steering and dash together with rich beige two-tone interior upholstery. And Indians lap this stuff up. Looks work. It can make you feel like a thousand bucks when you park your new car next to your neighbours’.

Of course there are aberrations to this success story (like the Skoda Fabia and Skoda Yeti, both oddball designs), but I’ll leave that aside for a future article maybe.

Fast forward to today. VW cars sold in India now have chrome body accents, wood-panelled dashboards and more visually appealing looks and their sales numbers are back to where they should be. It’s the little things that make a design look and feel premium, and VW had to bear the ignominy of low sales till such time they figured out the Indian consumer.

A few years is a long and costly affair in the automotive Industry. Heads roll, CEO’s change, blame is apportioned and everybody walks away bruised. All things remaining equal, consumers expect good looking and well-designed products. To draw a parallel, Metro and Flat UI’s may work for the digitally-evolved set, just like dark-grey works great on a BMW M3, but it doesn’t and never will work for most of the Indian consumers.

I’m a little concerned because as recently as last week, I saw some leaks on the to-be-announced Windows 10 Consumer Preview with more of the modern and minimalist.

Hyundai: Appealing Designs.

Unlike the conservative Japanese, the Koreans are naturally flashier with their design sensibilities. Every Hyundai car that has been launched in India to compete with the entrenched Maruti-Suzuki (Japanese) has been very successful. And it’s because Hyundai designs them to be stylish, with chrome bits outside and in, gorgeous dashboards and upholstery. Hyundai also manages to give more kit at same or lower prices. They really figure out the best combination of looks, features and price.

My personal opinion is that Japanese cars are better engineered than the Koreans. But, the Koreans are able to keep up by launching spicier designs of feature-loaded models at similar or lower price points.

Sometimes good design can hide an averagely engineered product which Windows 8 is not.

And sometimes good design is required even when the product is cheap. The next example about the Tata Nano is one such case about how NOT to do it.

The Tata Nano. Cheap is good. Cheap-Looking not so.

The Tata Nano was designed to be the cheapest car on Indian roads by one of the country’s largest conglomerates: Tata Sons. In fact, the global press hailed the Tata Nano as the cheapest petrol-engined 4-door, 4-seater car in the world which it probably was.

A noble cause. It should have worked. It had everything going for it.

The Nano was/is a great piece of frugal engineering BUT it failed to capture the imagination of the Indian consumer because it came across as cheap and built to a price. (Conversely, Tata later launched a real beauty of a multi-utility-van (MUV) called the Tata Aria, but blew it because it priced it over its rivals.)

I’ve been tracking recent attempts by Microsoft at the cheap end of the tablet market with its near-zero Windows 8 licensing policies. But cheap, like the Tata Nano, doesn’t always work unless it’s backed up by attractive and premium design.

MacBook’s and iPhones are gorgeous to look at and experience. But, so are the lower-end Android phones. And even though in my opinion they (the low-end Android phones) are poorly engineered devices at best, they do more than enough to keep the cash registers ringing.

I hope Microsoft can learn a lesson from the above.

Gorgeous does work.

Switching for a brief moment to Windows Phone.

I’m a huge advocate of the Lumia 730 and Lumia 530. I am almost sure that a few of my employees were convinced by me to get them. But, recently, two of them upgraded their phones to Xiaomi Redmi Note 4’s last week. This phone retails for the same price as the Lumia 535 in India (Rs. 9500 approx.). BUT, one look at its gorgeous 5” screen, beautiful wallpaper with its silky smooth swipe animations and you know right away this was something special.

This phone had me at hello!

The overall product, the screen clarity, speed, navigation and animations feel buttery smooth and awesome. These Xiaomi phones are not running stock Android, BUT, a gorgeous skin made by their manufacturer Xiaomi (dubiously known as the Chinese iPhone maker).

And while these phone may not have the same build quality of a Lumia, they appeal to consumers to whip out their wallets and buy. (BTW, one of my colleagues returned his Xiaomi handset just yesterday because the USB charging port came loose within a day or purchase.)

Gorgeous does work AND it does get products off the shelves.

While we are on Android phones, let me add that the much hyped material-design influenced Android One has failed in India for more reasons than one. I can only guess that flat-design may have had something to do with it, in addition to not-so-friendly business terms from Google.

Design tips for Microsoft Windows 10 Consumer

So, taking a cue from the Indian automotive industry, I’m going to try and suggest ways in which Microsoft can make Windows 10 a huge hit with consumers not just in India, but worldwide.

1. Staid, Sober, Scandinavian, and Minimalist does NOT work here

Boring, dull, flat and minimalist designs do NOT appeal to Indian consumers. Ever been to an Indian wedding? Noticed the explosion of colour and senses. This IS what we are about as a nation of a billion people. We like designs that are a bit Over-The-Top with a bit of bling and kitsch thrown in.

We don’t live in homes with wooden floors, white walls and Ikea furniture. Well maybe some do, but those are the minority and they buy expensive iPhones and Macs to begin with.

We are an aspirational people and our consumer choices are a reflection of our individual and social perceptions.

And Microsoft, please don’t expect and wait for third-party developers to skin the OS in case it lacks ZING out-of-the-box. No Stardock Modernmix can solve this problem.

2. Don’t listen only to the people in Windows 10 Preview.

It should be evident to Microsoft that the 1.5 million people, myself included, who are a part of Windows 10 Preview will probably buy it anyway! But do these 1.5 million represent that 1 billion Windows users? No Microsoft. They don’t.

I shudder when I see comments from some folks in the Windows Insider Program about how Microsoft should leave Metro untouched because it is so awesome. Come on! This strategy may work for enterprise users but will not fly with consumers.

For every person that is vocal about embracing Metro, Metro Apps & the Windows 8 Start Screen, there are 10 others who stay silent.

3. Be bold Microsoft.

Computing and graphic power has been getting progressively cheaper. And yet, UX’s have been getting flatter and less graphically intensive. And while some people love flat and modern and I can completely respect that, it doesn’t do it for me.

Have Microsoft/Intel learnt nothing from the Film and Television industry?

TVs improve to accommodate better quality content and content providers continue to improve the quality of their sitcoms, movies and sports coverage. It’s a symbiotic relationship that improves business for both. And yet, as the personal computing landscape has gotten cheaper, faster and more powerful processors, the UI’s have reverted back to being flat. This is one trend I will never fully comprehend.

I fear the real problem lies with today’s UX designers. Design is cyclical and for the last few years it has been flat and functional. If you are a hip and happening UX/UI designer today, you WILL shun gradients, textures, shadows and three-dimensional effects in favour of large typography, whitespace and minimalism. But I believe the two worlds CAN co-exist and these designers must be pushed to their creative limits to turn out something spectacular.

The designers at Microsoft are working on what might be the last major version of Windows. And to think Windows 10 Consumer should have an Office or OneDrive inspired UI would be poor judgement on Microsoft’s part. I use the aforementioned products to get work done. Is it too much for me to ask not to be reminded of work when I’m setting my morning alarm or watching a movie? Must my watch resemble a fitness band? Please…

So, Microsoft:

FIRSTLY, the goal for your design team has to be to make customers stop in their tracks when they see a gorgeous Windows 10 PC Screen on display. The attention span of an end-user needs to be captured at the initial user interface or else you have lost them no matter what amazing functionality you build into the platform.

SECONDLY, don’t ONLY dish out a flat user-interface! I realise you must do this for Enterprise customers but don’t stop there. Give every user a SECOND option that is the complete opposite i.e. lustworthy – put in the bells and whistles – the textures, silky smooth animations and navigation. After all, you’ve tried the flat UI approach and the world has answered. You’ve got nothing to lose and everything to gain.

If you can do the above, you will take the discussion away from ecosystems AND focus it back on a gorgeous product called Windows 10 staring at consumers on market shelves later this year.

Yes, I DO want my yet-to-be-purchased i7 quad-core NVidia-powered hybrid to shimmer and ripple with each buttery smooth swipe and click.

And no, I do NOT want Windows 10 Consumer to be like my Kindle. I already have one and it puts me to sleep every night…yawn.

Why does the future belong to product startups in India

I predict starting 2016, we will hear $3-4 billion product companies coming out of India every year.

NEW PRODUCT (2)The startup ecosystem has come a long way in the country, especially in the last decade or so. People often ask me at various forums and events as to where I see the startup ecosystem heading in the coming years. While it may be difficult to predict precisely, there are perceptible changes.

While the turn of the century was about the rise of the Indian services and outsourcing industry, I believe today it’s about the product companies. The rise of the product startups in the country has been due to numerous reasons, but the stellar growth has only made things exciting.

One of the reasons for the mushrooming of product companies is due to people returning from overseas after they have sensed an opportunity. They want to build a product that addresses the market opportunity. When I returned from the US, I saw some clear patterns and opportunities that I could work on. While one choice was to work with existing companies in the travel and tourism space, the other was to create a brand. I chose to go with the former.

The second clear reason is that people no longer want to do back office work for the world. For example, a lot of companies in the space of analytic work around identifying patterns and ideas for companies that outsource work to them. You will see a lot of individuals from these companies building a product start-up around same principles.

This is the natural progression and evolution of an industry. Outsourcing gained prominence because of cost arbitrage and then the IT companies started getting innovative to increase their share of the pie. They started advising various companies on how they should re-engineer their business processes and additional things they could do.

Phase 1 was about moving cost offshore and labour arbitrage while Phase 2 was making it efficient and optimising it. Indian outsourcing companies started evolving their services by providing additional services and at the same time automating it and making it non-linear to people.

The natural progression after that is if employee of these IT companies were advising clients on how to make their business processes better and how to “go to market” more efficiently, what prevents them from going to market on their own? You will see a lot of companies that are an offshoot of big IT establishments. You see individuals go out and address markets problems and opportunities rather than work for someone else.

Carpe Diem

Moreover, the services company has allowed people with similar ambitions to come together and seize the moment. Services companies have become the place where co-founders have met and most of the time the early hires in a startup are from these services companies. When there was a lot of movements around outsourced product management where companies outsourced their engineering work to India, it was obvious that employees from these services companies would get together and start a product company of their own.

The overall IT industry has evolved and the entrepreneurial ecosystem has been built to some extent and has gained velocity. According to Grant Thornton India, PE investments in India amounted to $1.7 billion last month, taking the overall PE deal tally to $10.2 billion in the first 10 months of this year. Spread across 500 PE deals, investments are up 18 per cent in value terms and 37 per cent in terms of number of deals in 2013. The entire investment community, access to capital and breadth of funds have increased quite dramatically.

The appeal of being a part of a product company is far cooler and hipper, rather than being a part of an IT services firm. For an aspiring entrepreneur, the IT services story has been beaten to death. No one wants to start another company in the outsourcing space and given the number of successful product companies like Druva, InMobi and Zoho, people now have role models. As entrepreneurs see billion dollar companies are now possible in the product space, it serves as fuel to the entrepreneurial fire. An aspiring entrepreneur wants to build a product company that will address a global market need.

Role of Industry Bodies

Industry bodies are also playing their part. Bodies like Nasscom have a separate Product Council and Product Conclave, which brings together a good collection of product companies in the form of peer-to-peer learning and experiences. Another body that is doing a good job is iSPIRT that has some big initiatives. It puts a big focus on the M&A connects where they look to enable big US tech companies to connect to a lot of Indian start-ups. Hence, we have seen a bunch of startups like Little Eye Labs and few others being acquired.

iSPIRT is providing a platform that enables big tech companies to acqui-hire, which essentially is acquiring a startup to get access to their talent. This helps both sides – buyers that know they can do a deal in India and integrate startups effectively and for the startup a viable exit route even if it’s not in a revenue generating state. It is also extremely focused on peer-to-peer learning of product companies. From newsletters from founders and experts to roundtable interactions, the body looks to bring curated number of entrepreneurs to come and share experience of selling globally.

Nothing succeeds better than success and the early successes of various product companies have set the stage as role models. Once the momentum builds it breaks the inertia in the system. I predict starting 2016, we will hear $3-4 billion product companies coming out of India every year. In that sense, 2015 will play an important role in ironing out structural issues in the system and ensuring the ease of doing business is improved.

 

Knowing Versus Understanding Your Customer

When it comes to retaining your customer, you simply do not need to know them but should also try to understand them. If you wonder that why are your competitors holding a superior hand than you and why are they successful in catching the pulse of the customers?

The reason could be that they are putting more efforts in understanding the customers than you.

And here you are….You just know who your customers are, but do not understand them?

Understanding them could mean the difference between retaining customers and losing them to the competition.

Knowing your customers — information typically collected by a business — means you know who they are demographically, what content they’re reading, and so on. Most companies do a good job on this front.

When it comes to understanding customers, however, many companies come up short. Understanding customers helps businesses deliver an online product with meaningful and compelling value propositions that meet not only their current needs but also their evolving and future needs.

Gain customer insight and just merely not know but try to understand your customer’s:

  • Purchasing power: Find out the degree of disposable income within the community.
  • Demographics: Demographics serve as a means of locating geographic areas where the largest number of potential customers live.
  • Residences: Are homes rented or owned? In what kind of accommodation do they live .
  • Means of transportation: Do prospective customers in the area own vehicles, ride buses or bicycles, and so on?
  • Age ranges: Does the community consist primarily of young people still approaching their prime earning years, young professionals, empty nesters or retirees?
  • Family status: Are there lots of families in the area or mostly singles?
  • Leisure activities: What type of hobbies and recreational activities do people in the community participate in?
  • Credit risk profile: The credit risk profile of the customer needs to be evaluated in order to understand your customer well.
  • Attitudes to and uses of technology:
  • Environmental and ethical views
  • Their preferences to go to your competitors

To innovate and retain your customers, you should clearly understand their preferences if you want to stand out from your competitors.

Guest Post by Shweta, Institute of Product Leadership

Please Understand the art of collaboration…Sooooon

Further to our earlier discussion around “Relatively slower growth of Indian IT product companies” let’s continue soul searching.

World economy is growing, inter country trade is growing, global power equations are changing more frequently than ever before, smaller but high potential countries are trying to consolidate their position in the region before marching towards global stage (I Love India J ), Oil prices are dropping at the will of small group of countries, wars are creating whole lot of uncertainties across the globe and so on.

This is 60,000 feet view.

While all above have overarching impact on what your company can actually do in such a changing environment, on ground at business level, there are few more challenges:
1.Consumers and hence your client’s ’s buying behaviour is changing
2.Digital disruption is a wide spread reality and your company is still working on it
3.While demand is increasing, supply is growing faster than this. It means domestic as well as global competition is increasing
4.Your company is struggling to hold / improve bargain power – you are under pressure
5.Your client is much smarter than earlier. Thanks to Internet and your cheap competitors who are diluting trade secrets for survival – Preparing their own coffin much faster…Alas they do not realize this J
6.How many of you have improved your knowledge and bargain power using power of Internet? I have done window shopping most of the time, hence my buying behaviour is changing – Now it does not matter if its business dealing or I am buying grocery from internet. I AM CHANGING AS AN INDIVIDUAL. Aren’t you?

The above list is actually longer but I do not want to scare you beyond this point.

If you are entering into international market these are stark realities that you have to face. So what is the Solution?

Simple: JOIN HANDS

Do you know any company in the world in any sector that has grown faster than rest of the pack without harnessing power of collaboration?

Actually, there are NONE.

Just imagine Amazon producing 100,000 items at their own and supplying to consumers at their own, imagine your nearby street grocery store producing wheat in its farmland down south before delivering to you at your door step. We all have been witnessing how various businesses; economies grew riding on the power of collaboration.

But it’s simply disturbing to see many Indian IT products companies are in a state of confusion:

1.Why to collaborate? Argument: When I can build a world class product, why I can’t conquer the world at my own.
2.With whom to collaborate? Argument: I do not know.
3.What am I going to lose? Argument: I am not sure hence I am scared
4.Why not Direct? Argument: My partner is trying to cheat me. It will take away my product IP and develop at its own.
5.Partners do not perform? Argument: Our sales guys are the best sales people in the world even if 70% of them are underperforming, 25% are barely meeting targets and only 5% are over performing.

I sympathize with Indian IT product companies not because all above I said is not true but because many of them have not tried it well with single minded focus. Or at times they tried but failed so now do not have brave heart to try out again.

As I said above, every business has understood the power of collaboration, tried-failed-tried-failed and still trying to make it 100% perfect(btw it will never be 100% perfect for any industry / company) it but ultimately they grew so far because of EFFECTIVE COLLABORATION with their partners, suppliers and buyers.

Come on, get up and let’s run together…Once Again.

#madeinindia eCommerce Platforms to Build Your Own Online Store

eCommerce platforms are becoming increasing popular for small & medium retail business wanting to sell online. There is no hassle of developing a website or integrating it with other tools and software. It manages everything from building ecommerce website to order fulfilment. Here we list below some popular #madeinindia eCommerce platforms in no particular order.

madeinindia ecommerce platform

KartRocket

Kartrocket is India’s only platform to provide end-to-end Ecommerce services. Starting from pre-build website templates, Kartrocket provides payment gateway to collect payment in any currency, automated shipping with multiple courier companies, automated affiliate listing, marketplace integrations, Android and Iphone mobile app for shopping as well as store management. Its seamless automated shipping, which is used by more than 3,000 retailers in India, has always been able to earn extra brownie points for the customers. Kartrocket has recently launched a free plan under the name of studio. It aims to minimize the risk and investment worries of small scale businesses by giving them a website with zero rental. KartRockets other rental plans includes Starter, Professional and Unlimited which are priced at Rs 1500, Rs 3000 and Rs 7000 per month respectively.

freKart

freKart is a good solution for companies which want to start wholesale website for B2B or a retail website for customer B2C, all under one single plan. One can also setup with a marketplace plan with vendor management. freKart also include mative mobile app & Facebook store. One can control the product you wish to sell on Mobile or Facebook with different pricing for different store.

freKart has pre-defined SEO rules and the entire system is Excel Friendly. One can also plan sales and schedule the store to change product with promotion price for specific intervals. The same scheduling and planning of sales can also be done for mobile app and Facebook store. It claims to have more than 350+ features. Pricing starting from 1110 INR.

BuildaBazaar

“BuildaBazaar is DIY e-commerce platform with more than 25000 merchants. The robust platform was launched in 2011 by Infibeam.com – one of the leading online marketplaces in India. It offers end-to-end solution like the platform infrastructure, payment gateway, logistics and also provides marketing support. BuildaBazaar powers brands like Airtel, Crossword, VIP Bags, etc. The SaaS based platform provider has forayed into International market with giant retailers like Aixom Telecom and Jumbo Electronics. The platform has also won “”The Game Changing Idea of The Year”” award by ET Retail.

PowerStores

PowerStores is an e-commerce and website platform that allows anyone to create a mobile-friendly website and sell to customers all over the world. With beautiful, professional themes to start from, PowerStores easy-to-use tools allow you to customize the colours and content of your site and is as easily as setting up your Facebook page. They have a team of web experts who will set up your website for you and train you on the platform. Pricing as low as Rs. 700 per month. 15-day free trial is also available.

Shop2Grab

Shop2grab offers you to build your own ecommerce website in almost no time. Along with all basic features  it also provide online marketing tools such as SEO, SEM, GoogleAdwords to drive traffic for your online store.  It allows your online store to seamlessly integrate with ebay & amazon to fetch product and order data. If you are a retailer and you want to sell online, Shop2Grab will also provide an POS System to keep your inventory match your tallies. Pricing starting from just 500 per month.

MartJack

Martjack by Reasoning Global eApplications Pvt Ltd established in 2007 provides an eCommerce platform solutions to retail businesses across india and other emerging countries. It provides a seamless multi channel customer experience from mobile friendly web design to order fulfilment. SaaS based software application with cutting edge technology is leading the industry with 30+ payment partners, 10+ logistics partners, 70+ service partners and multiple Apps to boost your ecommerce business (email marketing, loyalty program & many more).

StoreHippo

It is an ecommerce platform for retailers to sell their products and services in online marketplace. It works on latest and fastest technologies, providing themes for every retail segment. It is powered by a truly mobile supported system to provide the best selling experience.

Zepo

Zepo founded in 2011 is providing the online store with more than 70 themes for to create ecommerce website. One can create a fully Customized ecommerce platform to match the brand image.

BoostMySale

BoostMySale is an award winning ecommerce platform by Navigators software with experience of over more than 16 years. It is a SaaS based application to take care of your entire eCommerce ecosystem starting from product cataloging to warehouse management & delivery. It allows you to sell product on leading marketplaces such as amazon & ebay as well as you can create facebook store.

The article has been created with the help of  eCommerce platform Analyst at SoftwareSuggest. The list is not comprehensive and you can mention as comments the software missed by us.

How Alibaba, Android and Airbnb change the geometry of business

This article was originally published on Sangeet Paul Choudary’s personal blog Platform Thinking – A blog about building early stage ventures from an idea to a business, and mitigating execution risk.

A keynote laying out the shift that platforms are bringing about in the nature of business today. 

One of the central concepts I talk about on this blog is the shift from linear business models to networked business models: from Pipes to Platforms. The business priorities while building these two contrasting forms of businesses are very different and I’ve explored that in detail inan earlier essay here.

We also note that this shift has already happened in several industries. I explore that in detail in the essay here. (I would highly recommend reading both essays in tandem even if you’ve read them separately earlier.)

Media has already been transformed by this shift and become social. Telecom has been transformed by the explosion of the app economy. Professional services of all kinds are being transformed with the rise of the peer-to-peer sharing economy. And I believe that significant opportunities exist in the manufacturing and traditional goods industries for platforms to come in and create new markets. The rise of the Maker Movement and the growing democratization of 3D printing will accelerate this shift further.

There are three fundamental changes that accompany every such shift in the industries that start getting transformed:
1. New networked markets get created
2. New sources of supply start to emerge
3. New consumption patterns are created

We looked at all these shifts in detail in the rise of YouTube, Airbnb, Elance-Odesk, and to a lesser extent, Kickstarter, in this essay here.

To bring all of these concepts together into one cohesive whole, I want to share a keynote that I delivered earlier this year as the closing keynote at CrowdSourcingWeek 2014. I was invited to speak at the G20 Summit events in Brisbane last week and I shared a further more evolved point of view on how resource-intensive industries like oil and gas and mining will also change because of platforms and how new job creation will be spurred by the creation of new markets.

In this essay, I would like to share the first keynote from CrowdSourcing Week 2014. I hope to share the second set of thoughts from the G20 Summit events in the coming weeks. The video doesn’t incorporate the slides but much of the talk should be self-explanatory.


Industries are getting transformed. While it’s important for startups to understand how things are changing, it’s even more important for the old guard to realize that the traditional rules of business do not apply any more.

One of my constant endeavors through this blog is to address both sides and help share the message of how many of the fundamental rules of value creation in business have changed forever.

Tweetable Takeaways

The three key takeaways from the video, the new rules of business in a networked world:

The Ecosystem is the new Warehouse  Tweet

Community Management is the new HR  Tweet

The Network Effect is the new Scaling Strategy  Tweet

This article was originally published on Sangeet Paul Choudary’s personal blog Platform Thinking – A blog about building early stage ventures from an idea to a business, and mitigating execution risk.