mohanbir sawhney presentation at thinkers50 india
DESCRIPTION
Thinkers50 India is a joint initiative of Institute for Competitiveness, India and Thinkers50. Institute for Competitiveness, India is an international initiative centred in India, dedicated to enlarging and purposeful disseminating of the body of research and knowledge on competition and strategy. Institute for Competitiveness, India conducts and supports indigenous research, offers academic and executive courses, and provides advisory services to the Corporate and the Governments. The institute studies competition and its implications for company strategy; the competitiveness of nations, regions & cities and thus generates guidelines for businesses and those in governance; and suggests and provides solutions for socio-economic problems. Created in 2001 by Stuart Crainer and Des Dearlove, the Thinkers50 was the first-ever global ranking of management thinkers. In the intervening decade, the scope of Thinkers50 has broadened to include a range of activities that support its mission of identifying, ranking and sharing the best management thinking in the world. Today, Thinkers50 is widely recognized as the world’s definitive ranking of the top 50 business thinkers, and the T50 Distinguished Achievement Awards are widely regarded as the “Oscars of management thinking.”TRANSCRIPT
Mohan SawhneyKellogg School of ManagementAugust 30, 2013
India Outside: From IT Services to Technology Products
• Indian exports of IT and BPM services reached $69 billion in 2012
• India controls 58% of the global sourcing industry
• The IT and BPM industry accounted for 25% of India’s exports in 2012
• BPM and Analytics services are the more recent success stories
India leads the world in IT services
Source: NASSCOM
• Software product exports are a paltry $1.5 billion, less than 5% of the Indian software industry.
• There are 3,400 Indian software product companies but the average revenue is less than $600K
• Software product exports have grown at a CAGR of only 10% from 2008 to 2013
• India lags behind China, Israel, Russia and Brazil in software product revenues
But where are the products?
• Banking products like i-Flex and Finacle (Infosys) and BaNCS (from Tata Consultancy Services) are the only notable Indian software products
• While Indian IT majors have excelled in outsourced R&D and product development, they haven’t developed meaningful products themselves
Even the IT Majors lag behind
The Indian IT industry journey
People
Projects
Processes
Products
We are stuck here
Why products? Scaling revenues
Revenues
Time
Products
Services
India can learn a lot from Israel
• Culture of fighting against adversity
• Entrepreneurial mindset and “chutzpah”
• Mandatory military service• Israeli Defense Forces as a leading-
edge customer • Strong connections to the United
States financial community• Startup funding assistance from
Government
Israel’s success factors
• Services are less risky and produce predictable revenues
• The success of Indian IT majors in services limits the need for product innovation
• Entrepreneurial ecosystem and culture still leave a lot to be desired
• Indian companies lack marketing capabilities including branding and marketing communications
Why India lags behind in products
There is a world of opportunity
Cloud infrastructu
re
App economy
Domestic market
• Create a mass-market consumer software service
• Acquire the “first 1 million” customers in India
• Leverage learning and customer base to enter U.S. market
• Trade Indian multiples for U.S. multiples
The “People Arbitrage” Play
Examples of “People Arbitragers”
Arenas of opportunity• Education• Human capital development• Logistics• Financial services• Healthcare• Mobile applications• Healthcare services
What it will take to win in products
Product Investment
Mindset
Marketing Capabiliti
es
Startup Ecosyste
m
We can do it!
