Service Oriented Startups

Last week a very interesting free e-book called “Software Paradox” was trending on Hacker News. The premise of the Service Oriented Startupsbook is, that the value of software as a product is diminishing, but the value of software as an enableris rising. Pure play software companies such as Microsoft and Oracle are fading in comparison to rising stars such as Google, Facebook, Apple, Amazon and newer ones like Uber, Dropbox, GitHub, AirBnB and others. None of the new age companies sell “software”. They all sell a service (or devices, in case of Apple).

The book goes on to argue that companies even prefer giving away their software innovations as open source so that they can get the respect of the developer community that they desperately want to attract. Apple’s operating systems are based on an open source flavour of Unix, GitHub has built a social layer on git, a version control system created by Linus Torvalds and Facebook is a leader in new age open source web development tools. So there is a clear trend of companies collaborating on an infrastructure and tool level and yet being able to create a lot of value in the services they provide.

They book suggests what pure-play software product companies should do in order to survive this next wave. There are a lot of great options described which range from moving to a subscription model to becoming a full-stack startup (doing very deep vertical integration in the markets they operate). In the context of pure play software product companies, where do we in India stand?

A defining moment in the first episode of the new YouTube drama TVF Pitchers, an Indian take on the popular and brilliant series from HBO, “Silicon Valley”, is when the protagonist is about to dump his entrepreneurial dream and continue with an overseas posting. On his way to the airport, he sees large advertisements of Housing.com and Snapdeal and decides that his calling is a startup. On a side note, it is interesting to observe that the innovation described in TVF Pitchers is a “B-plan”, whereas the innovation on which HBO Silicon Valley is based, is a hypothetical “algorithm”.

My conclusion is that India has already leapfrogged to “Service-Oriented Startups”. The number of new startups and deals in the e-commerce and classified marketplaces domains greatly out numbers startups that have a technological innovation at the heart of the business. The aspiration of the entrepreneur who starts up today is to build the next Flipkart, not the next Google.

This is something we all will have to learn to accept. Like so many modern innovations we love using today are ones we did not invent, software is something we will rather use. Innovating on technology requires an intellectual rigour and ecosystem support that will probably never reach a critical mass in India. But amidst all this gloom, I still have hope that at least a few of the 3 million software developers out there will prove me wrong.

How SignEasy got featured in an Apple campaign (and almost screwed it up!)

SignEasy was a two person operation in 2010, the year we launched. And bootstrapping meant a lot of pressure first on gaining and then on maintaining traction; there was, and still is, no safety jacket. If we have no money to pay salaries and run operations, there is no company or product, period. But we have been lucky, and successful enough to be profitable.

Today we have grown into a 15 member team, and SignEasy is now among the most successful apps on iOS and Android.

As more and more paperwork moves to the cloud, we are extremely well placed to help individuals and SMBs use eSignatures, and in turn, save paper and a lot of time and money in the process.

What we think about a lot

Innovation and customer happiness, that’s our mantra. An app like SignEasy is passing through a quality check every time a customer uses it. Which means any and all feedback is in real time, giving us the data we need to keep innovating and to keep the customer happy.

Our almost continuous updates and fixes to leverage Apple’s iOS strengths (such as our iOS extension and Touch-ID support), and to bring more capabilities to customers is due to this ruthless focus on user experience.

The mail from Apple

These priorities are what I believe got us noticed by Apple.

Early April this year, something popped up in my inbox. It was a mail from Apple’s marketing agency about featuring SignEasy on their upcoming iPad summer campaign. Needless to say, we were overjoyed. Though branding with an Apple ad was one reason for our excitement, there was a significant business angle as well — iOS accounts for 85% of our paying users, and Apple’s early adopters, the people who appreciate a well designed product, had always been our own champions. Apple wanted secrecy, they specified that no major changes should be introduced to the UI and product screens throughout the campaign, which would have made the ad rendering dated.

We agreed, and complied within a 48 hour window. We couldn’t control our excitement. After all, this was the ecosystem we had been nurturing for some time. This recognition was the ultimate feather in our cap. It was all about that important word we kept hearing about in startup conferences and funding events all around the world — validation. Then we went back to our work mode with fingers crossed, looking forward to hear back from them in the near future.

Until it all went wrong.

It was the 4th of May. A routine update for iOS went wrong and our users were unable to sign documents. We were devastated. We apologized to our customers immediately, and by May 6, had expedited a fix that went live that very night, restoring full service back to our users. It had taken a day and a night of non-stop work, but we had fixed the issue, and we heaved a sigh of relief.

SignEasy1

Several users were happy with the way we handled this

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Little did our users know that we were running against time, as May 7 was the day the iPad campaign went live. A lot of interest would be heading in our direction and needless to say, it wouldn’t have been very impressive if the app had been down on that very day.

Behind the scenes

The point I want to make here is that this experience again underlined to us the uniqueness of the lean, nimble startup model that we follow, despite being a five year old bootstrapped company. Our users have never had a reason not to trust us, and neither did Apple. As partners and owners of the ecosystem we are part of, it was imperative not to disappoint them, and we are proud we did not. The work that we put in to get the app working for our users again, the small colors and buttons we test and change to enhance usability, the late night frustrations with pizza delivery — these are things our users will never see, and that is by design.

It makes us proud that all this behind the scenes work reflects on the little screen in our users’ hands, and that they enjoy it enough to say that they love it.

Head over to this Youtube video where SignEasy’s ease of eSignature is being showcased by Apple

and other apps listed in the small business section by Apple:www.apple.com/ipad/change-everything/.

1-PIQFLWGxQ3VOu82GyIdFkQPart 2 of this post will talk about the actual gains that we had by being part of the Apple campaign. There are going to be metrics, and a lot of takeaways for app store citizens like us. So stay tuned!

Guest Post by Sunil Patro, Founder & CEO, SignEasy

Why we won’t have a Steve Jobs from India

Two copies of Walter Isaacson’s biography of Steve Jobs have been on my bookshelf for close to two years now, but the size of the book deterred me from starting to read it. I didn’t think I was ready to read 570 pages about the enfant terrible, particularly after I heard that the book had several instances of his petulant and downright bad behavior. So, I must thank my colleague and friend Sourav Mukherji for giving me the impetus to start reading it. And, I was not disappointed. In fact, I spent two whole days immersed in the book, literally gobbling every word in print (yes, I still read books the old-fashioned way!).

As I was reading, one question kept popping up in my mind – could we have a Steve Jobs from India? The immediate trigger came from a recent interview in Mint with legendary tech investor, Vinod Khosla, in which he said that the environment for entrepreneurship in India is improving, and we could see a Facebook or Google in the years ahead. I have asked similar questions earlier, most prominently in one of my columns in Outlook Business.

What made Steve Jobs “Steve Jobs”?

I guess I don’t need to list Steve Jobs’ accomplishments here (Isaacson lists eleven instances where Steve’s products transformed industries! – see below).

So, let’s jump forward and take a look at the man himself.

Steve had some distinctive characteristics: A keen sense of aesthetics; an eye for detail; an intuitive understanding of what makes for an outstanding user experience; a belief in simplicity and minimalism; an obsession with getting things right, even if that took more time and considerably more resources; a very strong and highly polarized opinion about anything coupled with the ability to change his opinion if convinced; strong self-belief; showmanship; ability to communicate and connect with an audience; the ability to “distort reality,” to make people think they could do “impossible” things in crazily ambitious timeframes; the perspective to combine art and technology to create well designed, high technology products for (a relatively affluent?) mass market.

Where did these attributes and skills come from? Was Jobs simply born with them, or did he develop these along the way? And, what external influences played a role in this process?

The Source of Steve Jobs’ Genius

Isaacson’s book offers some clues:

Steve Jobs’ (adopted) father Paul Jobs re-conditioned old cars and then sold them. He had a workshop at home where he spent hours in various mechanical activities. Paul also built anything needed for their home, from cupboards to a fence, himself. Steve learnt the importance of craftsmanship and focusing on the details from Paul. Steve’s obsession that whatever is invisible to the customer should be as perfectly designed and executed as what is visible had its origins in Paul Jobs’ attitude towards his own work.

Steve’s practical bent was helped by his early exposure to Heathkits (“do-it-yourself” kits for electronic products and amateur radios), membership of the HP Explorers’ Club, and an electronics class at school where students were encouraged to tinker around with a variety of electronics components. An area in which Steve exercised his ingenuity was in playing pranks on fellow students and teachers, leading to several punishments by his school. Jobs’ first “business” came from trying to “fool” the telephone system into making long-distance calls for free by simulating the tones that routed signals on the phone network, and then selling the box that allowed him to do this. (The box itself was designed by Steve’s friend and Apple co-founder, Stephen Wozniak, as were many other gadgets including the Apple II computer).

Steve had a spiritual side to him from an early age. This appears to have been partly driven by his endeavor to come to terms with his biological parents giving him up for adoption, and partly was a function of the times – Steve was a teenager in the late 1960s, a time of great political and social ferment in the US. This was the time of the anti-Vietnam protests, an interest in Indian spirituality and culture. This is when Ravi Shankar became famous, and the Beatles embraced Mahesh Yogi!. Steve spent several months in India connecting with different spiritual leaders, and this was the start of a lifetime interest in Zen Buddhism. His belief in simplicity and minimalism, and his ability to maintain a laser-like focus on a few priorities had strong links to this interest.

Isaacson quotes Jobs as saying, “I began to realize that an intuitive understanding and consciousness was more significant than abstract thinking and intellectual logical analysis” (p. 35).

Steve dropped out of college after a year because he didn’t like the regular routine and the mix of subjects he had to study. But the college allowed him to continue to attend courses of his interest for some time. It was during his stay at Reed College that he developed his lifelong interest in calligraphy (which played a big role in the graphics capabilities of the Macintosh), and took basic courses in design.

Why India won’t have a Steve Jobs

Very few of us in India do things with our hands. “Brahminical” India consistently ranks the brain and intellect over the hands and creative skills. So much so that even people from traditional craft backgrounds want to flee to white collar vocations. How many of us grow up with a workshop in our homes? No Paul Jobs-like inspiration is likely in our immediate environs…

Most Indian families would shudder at the kind of unstructured experiences that a young Steve Jobs had. Hanging around in another country for months in the quest of a spiritual experience? I can’t imagine anyone I know allowing their children to do that. And this is not a financial issue. So many of my friends and acquaintances are spending upwards of $200,000 educating their children in the US or UK. But they would go apoplectic if their children were to take a “break year,” let alone get an unstructured experience of the Steve Jobs type.

I was recently chatting with the fellows at Ashoka University’s Young India Fellowship (YIF)  Programme, an exciting postgraduate, liberal arts / critical thinking-oriented education initiative created by my good friend Pramath Raj Sinha. I was surprised to learn from many of them that they had a tough job convincing their parents that YIF was a worthwhile investment of their time! Recently, one of my acquaintances, a senior manager in a leading multinational decided to cycle from Bangalore to Hubli – by his own account,  his mother and brother made a considerable effort to dissuade him from doing any such thing. I am sure everyone has heard similar stories or faced related experiences…

Our whole system pushes people towards conformism. A good friend, HR head of a leading multinational, proudly told me over dinner recently that HR is good at getting people “in line.” And snuffing out enterprise in the process?

Are things changing? I was enthused to read about Akhil Mohan, a young student, who has become a passionate advocate of conservation after an interactive trip with the Bishnoi tribe in Rajasthan. But, how many of our young students get exposed to such experiences?

Conclusion

Of course, Steve Jobs’ success was not due to his individual genius alone. He grew up in the right place at the right time – Silicon Valley in the late 1970s was the centre of the personal computer revolution. As Amar Bhide pointed out so eloquently in The Venturesome Economy, customers in the US have shown a proclivity to try out products from unknown entrepreneurs that is perhaps unmatched elsewhere.  The US is certainly a more conducive place to do business than India – in Isaacson’s book, you won’t come across a single one of the typical constraints that a company in India faces. Steve’s colleagues and employees at Apple, Next and Pixar seem to have put up with a lot of his bad behavior, and I am amazed that in a country as litigious as the US, he got away with all this without a significant lawsuit against him

But it seems clear to me that as long as we cloister and mollycoddle our youngsters, and prevent them from having a wider range of influences and experiences, our chances of ever producing a Steve Jobs from India are very dim indeed.

What’s your Sales Story?

Whenever faced by dilemma over any issue pertaining to sales and marketing, I recall a famous quote by Ben Feldman, who is considered one of the best salespeople in world history.

Don’t sell life insurance. Sell what life insurance can do.

Just by following this one mantra, Ben was able to insurance policies more than worth USD 1.8 billion in his life!

It would be unfair if I don’t mention Steve jobs here. Have you ever seen him selling Apple products? No! He would always sell you the idea of ‘how apple products can change your lives’. Watch his keynotes at the launch of iPhone or iPod and you will understand what I am trying to say here. Sadly I don’t see the same approach being used by Indian startups and product companies. Many of us are still struck at ‘Buy our product, this is the best; this is different; this is cheaper; this is awesome…..’.

Human brain is inherently averse to sales. The moment we realize someone is try to sell something to us, we tend to lose interest in the pitch, become defensive and start finding reasons why we don’t need the particular product (or service). So rather than doing direct selling using plain facts and figures, if you narrate a story about your product and how it can help fulfill peoples’ dreams, chances are they’ll listen to you. Research has proven that majority of the decisions are driven by emotions and not reasons. We don’t realize that because our brain tries to find logical reasons to justify the already made decision.

So triggering those emotions should be a critical component of company’s overall Sales story. Ideally the sales story should be centered around the following,

  •          Making people more powerful/ efficient/ potent through your product
  •          Making people passionate about your company and yourself
  •         Ringing alarm bells in peoples’ minds of losing out on something if they don’t buy your product
  •         Generating mystique and awe among people for your company and yourself
  •         Being just enough rebellious and loud to make some noise and stand out
  •         Developing trust among people for your company and yourself (damn important)

 

Let me take an example. I went for a sales meeting for some stakeholders from a global networking giant. Here is what I presented the first time,

‘WE are Company X. WEhave been doing this for so many years. WE have worked with companies like … WE’ll help your business grow to next level (x%). WE’ll help to save y% costs. We’ll increase your efficiency by z%, so on and so forth’

I got a good response but not a mind blowing one. We were asked to present to some other stakeholders in the follow-up meeting. I decided to try out something different this time. Here is what I presented,

‘YOU are Company Y. YOU have been doing this for so many years. YOU are doing good with a% growth, b% cost savings, etc. YOU are projected to reach here. What if we help YOU reach there. YOUR competitors are already catching up. We can help YOU leapfrog. We have already helped many companies to do the same. YOUR company is very good, we can make YOUR it awesome’  

Boom!! Applauses all around!

Notice the ‘We’ centric approach compared to ‘You’ centric one. Research has proved that customer relations are more long-run and stronger in the latter approach. I have complemented ‘company’ with ‘yourself’ because your personal branding goes hand in hand with that of the company, as people don’t perceive you much different from your company. I can’t think of any aspect of life where you don’t have to sell anything. I believe aforementioned points are relevant in every sphere of life- job interviews, user acquisition, b-school interviews, advertising, online marketing, presentations, proposals, VC pitches, etc.

For the founders, it goes without saying that you should have questions related to positioning, value add to customers, target market segments, key differentiators, etc. clearly figured out before you start creating your sales story. Answers to these should be Crisp, Short, Tangible and Simple.

Happy Selling !!