New Media, Marketing and Entrepreneurship

LIVE Blogging the Software Product Business meet @ the NASSCOM Delhi office !!!

Key findings, Nov 2008 – research finding, Zinnov.

The NASSCOM software product study, what is it that we lack and how to help homegrown businesses go global was the focus for the research finding. We looked at the Silicon valley and other parts of the globe, exhibiting similar growth patterns in India could result into opening newer vistas into hugely untapped local markets.

First 45 minutes:

SO HOW DO WE DO IT?

We touched upon the various Indian SME’s, CIO’s and global CIO’s and why do they look at India into the product domain? In Banking products you have to look at India, have no other option.

• The Indian s/w product industry has witnesses an accelerated growth of 44% over the past 3 years

• While the top 5 players dominate, expansion in the tier-11 forms and startups has helped broad base the industry structure

Post studying over 500 products…

• Growth in s/w product startup activity over the last 3 years has also helped strengthen the industry product portfolio

Increased activity in the Indian software product industry is being witnessed only after 3 decades of its evolution about 350 companies got registered between 1985-1990, but all of a sudden the MNC’s were free to business in India, and hence Indian companies started slowing down.

If it all started very well why are we not going good?

The challenges being faced-:

1. Small size of the local Indian market
2. Lack of R&D talent
3. Lack of VC investment in the 1985-1994 era
4. Lack of distribution networks into the global markets
5. MNC’s came to sell their products, so they were able to grab the share
6. Parallel emergence of IT outsourcing

WHAT HAS CHANGED IN THE LAST 3 YEARS?

1. Talent pool
2. VC funding available for products, amost 273 VC offices set up in India
3. Emergence of incubation centres – very important for infrastructure and mentoring for such young companies
4. Role models – people who have been there, done that are now doing it in India
5. Market development – there is a huge market in India, about 35 million SMB’s to be tapped into
6. Technology disruption – an interesting trend, creating a level playing field for Indian companies, so the coming of an MNC within the same market does not hits the Indian counterpart

Dwelling DEEP into the above point now-:

• Entrepreneurs are being helped immensely with the market size and incubation centers

• Over time Indian based software companies have built highly successful product businesses

Indian software market is growing 2-3 times as the global market. High untapped opporttunity for entrepreneurs. Local requirements are huge. No one has actually figured out the right strategy for the local market.

The software building levers are changing and the way softwares are built are being changed:

1. Cloud computing/Vitualization/SOA/Open source
2. Delivery models as – SaaS

Innovation in delivery model has led to a radicl shift in global software distribution processes. SaaS has created new markets for SMB’s, hence newer markets are opening up, which sounds as opportunity for emerging entrepreneurs. Going forward we see a huge upsurge into the SaaS and such business software delivery models.

BASED ON THE OPPORTUNITY WE REALIZED

There is a huge opportunity for Indian businesses.

1. By 2050 we have a market size worth 350 billion dollars
2. BFSI sector
3. Telecom
4. BI and Analysis
5. ERM
6. Security
7. Retail
8. Storage
9. Mobile Applications
10. Online Gaming
11. SEM

Online search and marketing business is a highly successful business globally. In India its still to be structured more. Currently its a 100 million dollar market and growing at 33% YoY. There, hence is a sizeable opportunity for the Indian companies.

Action across four themes will help India based software companies to achieve accelerated growth.

1. Influencing the market
2. Enhance the talent pool
3. Strengthening the capital ecosystem
4. Facilitaing the support system

OUR STUDY SAYS: there is no BRAND built for Indian companies to put there products on the global domains.

Doing trade development efforts. There are other parts of the world where we can get high value. Leverge partnership models.

Global CIO’s don’t understand there is an option in India, how do we bridge that gap? How do you address piracy? Cost of product in India is very high, how do you address that?

Sustaining current growth momentum requires more active engagement amongst the various constituents of the s/w product ecosystem.

For entrepreneurs its immensely necessary to tap into these:

1. Idea and concept
2. Have a strong market research backing the Bplan
3. Build a prototype
4. Flexibility to change the idea/concept

Software product businesses require significant investments and it takes 36-48 months. So how do you do it?

Leverage partnerships. Ecosystems across the business value chain of the software products can help in rapid expansion of the business.

The session pre tea drew to a close with an interesting Q&A with discussions from the mind and mouth of an entrepreneur.

Link to the post at the NASSCOM EMERGE Blog: http://blog.nasscom.in/emerge/2008/11/07/outlook-for-indian-software-product-business/

Have you ever tried googling “yes we can” and the TOP two results that appear are related to none other than Barack Obama, the US President-elect.

Though Obama may not have remembered to invite our Mr. Prime minister at a meeting of leaders held (as in the news channels), this post is more about tracking the Obama winning trail!!

So is Barack Obama the first US “social media” President elect?

Watching Obama’s victory address, I could feel here in India, what a connect he makes with his words with people. I read sometime back somewhere “people move when their emotions are moved” and wow Mr. President elect, you’re on the move already! So many people in tears, believing in real change, it was as if people could feel a change in the air! Oprah (the famous star show host) in tears and then cheering for Obama clearly showed what an effect he leaves! Well, So much for Brand Obama.

What motivates me to discuss about Obama on this paltform? SOCIAL MEDIA!!

Yes!

Web sites have termed Obama as the first “social media” President in the US history. He’s the first one to understand and harness the power of the sharing and collaboration platforms available on the web, to reach out effectively to even the remotest and the passive voters. Obama’s campaign team leveraged the power of this media to its righteous advantage! not just blogs, pictures, videos, wiki’s, Tweets and talk about all of these tools on the net!

So here’s a glimpse into Obama’s social media world:

1. Barack Obama’s blog: http://my.barackobama.com/page/content/hqblog
2. Barack Obama on LinkedIn: http://www.linkedin.com/in/barackobama
3. Barack Obama on Twitter: http://twitter.com/barackobama

So now you know where those 600 million dollars came from? Every American pitched in those 10, 20, 25 dollars they had and became part and witness to history!

So much for Obama, well the power behind the most successful campaign in the political history of the US has been the social media. Today we’re discussing the biggest financial crisis since the great depression, corporate cutting down on the advertising budgets and the rest. I personally would suggest people (both individuals and coroporate) to look at innovative methods of exploring new potential markets and reaching out to the relevant traffic and communities on the internet.

So you’re a part of Orkut, LinkedIn etc. and you may well boast of a 500+ links, but how many of them could truly be converted into potential relevance to your work, that is still a question.

So how do you go about building that elusive brand? Position your product right to the relevant market?

Go connect! Get linked! Create SIG’s (social media platforms, common interest groups). Let people find you and it’s been proven they do! A simple example in this case could be, the links I’v provided above, there would be a multitude of the EMERGE community members who would click and be directed to these pages, and ahy would you click? May be to know more about Obama or be interested into the right Social Media Market.

Innovation is the name of the game now and businesses understanding it right at the right time would EMERGE out winning!

Link to the post at the NASSCOM EMERGE Blog: http://blog.nasscom.in/emerge/2008/11/09/yes-we-can/

I’m bleeding, hold me tight! Wait for a few moments the shore is near, Together we’ll make it through!

No, I’m not narrating a hollywood scene. Listen closely to your heart and what does that so elusive client of yours who says I don’t have enough money to continue on paying you mean? The economic conditions have taken a toll!

Why are you still sitting on that seat? Go, this is the time to re-assure your client that you are always there in times good and bad! Its always easier working as a team and innovating together, sailing through the rough tide, rather than trying to make it through, on your own. This is the time for strengthening your relationships. Your clients business wants a makeover. The business processes need innovation. Go hold his hand, he needs you now! Why should I do it?

Well, the answer may not come to you right away, but let the conditions stabilize and this client would always stick around.

But how do I do it? Times are equally bad for me as well! What do I suggest him when I am innovating myself? When I fear of losing him and I have to acquire new clients myself!

Well, first things first, acquiring a new client would take you much time as compared to what it takes in retaining an existing client. Secondly yes times are equally bad, thus what you need are innovative ideas which would help you-:

1. Explore new market opportunities
2. Monitor your ROI, by focusing on meaningful investments
3. Innovate your business processes (Ex: looking at innovative methods of reaching relevant traffic to increase sales in a cost effective manner)
4. Position your offering and Brand to the relevant traffic, being cost effective at the same time

So how do I do it?

Well, what about Internet? Its another thing being 500+ on LinkedIn and famous on Facebook, but how do leverage your brand to attract potential customers through these Social Media?

Yes, you have got it right, SOCIAL MEDIA!

A simple yet powerful example are the recent presidential elections held in the US, which had Barack Obama rising up from nowhere, shattering 26 years of political force (Mccain) with just 4 years of relevant and effective branding online.

So how do you explain the benefits of an accurate social media model for your clients’ business?

Ask your client does he know why Barack Obama is the President-elect and Mccain is not!

If your client does know it, well, half your work is done and if he does not hmmm…you have a perfect playground to set your rules!

Strange it may sound, but if we trail the campaigns of both Obama and Mccain, one of the biggest differences that takes you where you least expect it is the effect of properly defined, structured and followed up Social Media. Obama’s campaign team leveraged the Social Media aspect of the internet so effeciently that Obama had a clear cut lead over Mccain online.

One of the best blogs on the internet which provides elaborat figures as to how Social media made all the difference, I found is: http://adultaddstrengths.com/2008/11/05/obama-vs-mccain-social-media/

NEARLY 6000% MORE PAGES ON Barack Obama’s website than Mccain’s.

Okay so lets dwell deeper…into figures…

SOCIAL MEDIA TOOLS/WEBSITES

Search Engine Results For “Barack Obama” and “John McCain”

Internet Presence For Barack Obama’s and John McCain’s Offical Websites

So what do all these figures say? My client is getting confused!! What should I do?

Now you actually do not have to say much. Your client says he has multiple options in the internet domain who provide services at a lesser cost then why should he still go with you?

So its simple, either your client’s campaign could be Obama’s or Mccains.

What does this signify?

Well, in the Online Marketing space its not just the quality that matters, its also how well does your online marketing solutions provider (partner) unedrstands your business domain. How well does he/she understands your objectives and goals and then charts out a workable architecture, that’s how you should choose your online marketing partner.

Link to the post at the NASSCOM EMERGE Blog: http://blog.nasscom.in/emerge/2008/11/13/the-shore-is-near-together-well-make-it-through/