tech jugaad
TRANSCRIPT
WORKING SESSION: RECRUITMENT BEST PRACTICES
MAY 2014 AUGUST 2015
Tech “Jugaad” For the new-age SMBs
2
India is home to a substantial base of SMBs, who contribute massively to the economy
SMB Landscape – Country
Comparison
GDP
cont
ribu
tion
of S
MBs
(PP
P, U
SD T
rilli
on)
Number of SMBs (Millions)
India Germany
UK
Brazil
Indonesia
Philippines
Australia
Russia
50 25 0
$0.5Tn
$1.5 Tn
$3 Tn
$7 Tn
$9 Tn
US
China
Total SMBs
~50 Mn
SMB
~120 Mn
Total Employment
~40%
GDP Contribution
~40%
Total Exports
3
A significant number of these SMBs are already Tech-Ready
~50 Mn Total SMBs in India
~10 Mn
Tech-Ready SMBs3
Medium
Small
Micro
0.2 Mn 0.8 Mn
9 Mn
~10 Mn
19%
19%
15%
9%
4%
33%
Retail
Professional Services1
Manufacturing
Education
HealthCare
Others2
Vertical Split of Tech-Addressable SMBs
Note: 1Professional Services include Doctors, Lawyers, CAs, IT/ITeS firms, Stock brokers/agents as the major constituents; 2Others include Travel & Logistics, Restaurants & Hospitality, Real Estate and Auto & Ancillaries 3Filter applied to exclude – Rural businesses | Mom & Pop stores (in Retail) | Businesses without fixed premises /hired employees (excl. professional services)
4
Basic Tech Readiness among SMBs is being driven by nexus of 5 key Digital enablers
Impressive PC Adoption
Increased SMB desktop adoption
level from
in 2025
in 2014
5 Mn
Business solutions becoming
affordable
Surge in social media
in 2025
in 2014
2-3 Mn
25 Mn
in 2025
in 2014
1 Mn
8 Mn
Huge surge in social media using
SMBs The number of SMBs using business
solutions growing rapidly
Exploding smartphone usage
High adoption levels from
in 2025
in 2014
10 Mn
‘near universal’ ~8 Mn
Easy access to internet
Increase in Internet adoption in SMBs
in 2014
in 2025 2.5 Mn
~5 Mn
Source – News Articles, Company Websites, Zinnov Analysis, intuit report
5
Led by digital enablers, SMBs are witnessing disruptions across four key business levers
5 5
Discoverability and reach Managing customer
relationships Customer experience
enhancement Optimizing sales motions New sales channels
Operations Optimization Procurement Demand Forecasting Optimal resource utilization
Sourcing of relevant talent Internal Collaboration Employee Engagement Labor Productivity Skilling
Logistics | 3PL Warehousing Partner identification Inventory Optimization Real-time Location Services
Four key business Levers impacted by tech
adoption
Customer
Targeting and
Engagement Operational
Excellence
Workforce
Enablement
Supply Chain
Management
Digital SMBs
A D
C B
6
Entrenched Tech Players are already penetrating the SMB space across 4 key business levers
Digital SMBs
Customer
Targeting and
Engagement
Operational
Excellence
Workforce
Enablement Supply Chain
Management
Business Website
B2B Aggregators
Online Marketplaces
Marketing
Accounting Solution
SMB-focused ERP
Mobile-POS
Online Job Portals
Productivity Tools for Business
Collaboration Solution
3PL Logistics Provider
Supply Chain Visibility Solutions
A B C D
6
7
Awareness Reluctance Cost Support Security &
Privacy
However, SMBs face several basic challenges in their IT adoption lifecycle
25% SMBs feel they
do not have skilled
employees to use IT
24% SMBs think lack
of service provider
support as a
challenge
23% of the SMBs
think that the manual
methods are working
well
31% SMBs avoid
technology as their
customers do not
use it
24% SMBs think
tech would be too
difficult to learn and
use
21% SMBs are not
aware of know-how
to get advantage
from IT
32% of SMBs
perceive the cost of
IT as ‘High’
35% think the high
cost of hardware as
the most important
hurdle
25% privacy and
security as key barriers
to tech adoption
SMBs are concerned
about data and store
files on CDs or hard
drives
Source – News Articles, Company Websites, Zinnov Analysis, intuit report
8
Due to these Challenges, Indian SMBs Fare Poorly on 4 Key Business Levers Compared to
their Global Counterparts
8
Zinnov’s Global SMB
Business Excellence (GSBE)
Framework Australia China Brazil India US UK Germany
Low High Medium Note: Each of the 4 Business Lever was rated relatively on individual parameters for all the countries to arrive at a final rating
A Customer Targeting and
Engagement
Operational Excellence B
Workforce Enablement C
Supply Chain
Management D
9
Solving these SMB challenges would result in an Exponential Impact on the India economy
9
~168 Mn
Additional GDP
~$ 1.1 Tr
Increase in Exports
~$ 264 Bn
Incremental Employment
Generation
Overall Economic Impact
75% of current
revenue
Impact through Revenue Enhancement
50%
Impact through Cost Optimization
25%
Digital SMBs
10
Confluence of Challenges in Conventional Technology interspersed with Rapid IT Consumerization has led to the evolution of Tech Jugaad
Jugaad means an innovative, non-conventional Quick-fix
10
Challenges in Conventional
Technology
1 2 3 4
Customer Targeting
and Engagement Operational Excellence Workforce Enablement Supply Chain
Management
Tech-Jugaad is a low-cost solution to any business problem leveraged by the “Bottom of the Pyramid” SMBs
Tech Jugaad
Rapid IT Consumerization
11
12
Disruptions in Customer experience enhancement
• Manager unaware
of the food critic’s
look
• Searches on
Facebook &
downloads picture
• WhatsApps the picture
to the restaurant staff
• Staff treats critic with
utmost priority
• Customer Satisfaction!!!
<5 minutes to collaborate with the staff and
troubleshoot the problem
• A customer checks-in on
Zomato
• Turns out to be one of
the Zomato food-critics
1 2 3 4
Benefits BETTER CUSTOMER EXPERIENCE INCREASED VISIBILITY INCREASED SALES
Challenges: Challenges LESS CUSTOMER SATISFACTION LOWER REPEAT CUSTOMERS DECREASED RATINGS (ZOMATO)
4.3 rating increased from 3.9 in a month
~30% repeat customers
Food Plaza a fine-dining restaurant in Chennai FOOD
PLAZA
Jugaad
13
Disruptions in Customer engagement – Uber Puppies
• 6 Uber Cabs were deployed for 3 hours, 2 puppies each in both Pune and Delhi
• For the customers to Play-donate-adopt!
>200 happy customers ~100% adoption rate ~INR 25K in 3 hours
Challenges: DECREASED CUSTOMER ENGAGEMENT WITH CONVENTIONAL MODES
CUSTOMER ENGAGEMENT INCREASED VISIBILITY INCREASED DONATIONS
1 2 3 4
A NGO in Pune An E-commerce website
Benefits
Jugaad
Challenges
14
Disruptions in conventional sourcing methods
• Sanjay started using POWER2SME which helps in sourcing input raw materials at
the most economical price points, 3 months ago to do away the sourcing
problems
~35-40 tons steel/Month
>30,000 SMBs Powered
~20% less price than most suppliers
EASY TRACKING TIMELY DELIVERIES APP BASED MODEL ECONOMICAL PRICING
1 2 3 4
Challenges: HIGH COST OF RAW MATERIAL DELAYED DELIVERIES LESS SUPPLIER CHOICES
Sanjay is the owner, H&H MechTech, a construction firm in Gurgaon
Benefits
Jugaad
Challenges
15
Captures images
of new designs
Forwarded to
customer in Delhi
for approval
Design approved;
Order for consignment
given
WORKER SMB OWNER CUSTOMER
1 2 3 4
COST SAVINGS INCREASED PRODUCTIVITY BETTER COLLABORATION
Challenges: HIGH TIME-TO-MARKET INEFFICIENT COLLABOTATION NON VALUE ADDED ACTIVITIES
>20 man hours saved per week
~15% increase in productivity
INR 5K saved per week
Jayram is the Owner of a furniture trading firm in Amroha (U.P) and a small manufacturing in a
nearby district 150 KMs away
Benefits
Challenges
Jugaad
Disruptions in Business Collaboration ways using WhatsApp
16
• Lockup collaborated with OlaCabs to deliver food
• Ola assures the customer of super-fast delivery
• In pipeline - Ola Store, will deliver on-demand
groceries with over 12,000 products
~15% increased sales
~100 Restaurants in collaboration
<20 minutes delivery time
• In USA Uber delivers food, fresh
juices on-demand
• Currently it operates in US and is
looking to expand it worldwide
1 2 3 4
7 major cities <10 minutes delivery time
EASY TRACKING SUPER-FAST DELIVERIES APP BASED MODEL LOWER LOGISTICS COST
Challenges: DELAYED DELIVERIES INEFFICIENT COLLABORATION HIGHER COSTS
is a fast-food delivery outlet in Gurgaon, earlier using delivery boys for the service
Benefits
Challenges
Jugaad
Disruptions in conventional logistics approaches
17
“Jugaad” focused SMBs led to a new breed of smaller players that disrupted the market… However, even big players are now showing dedicated focus on SMBs
Tech Jugaad
Collective bargaining for aggregated SMB buying
Cost Savings and enhanced ROI
Simple, easy-to-use solution
Website creation in less than 13 mins.
Vertical-specific solution
Easy-to-use service
Low-cost clubbed with tailor-made CRM for SMBs
Introduced local language localization
MS partnered with
GoDaddy to target SMBs
Ambition Express – pan
India Roadshow for SMBs
Facebook’s “Missed Call
Ad” format with Zipdial
18
Both SMBs and technology players need to evolve in order to grow in synergy
Build basic Tech Awareness
Invest in Tech-focused Talent for business growth
Elevate from quick-fix solutions to evolved solutions
Collaborate with Tech cos. to discuss use cases
Innovative Outreach Programs to Build SMB Awareness
Identify & convert “Tech-Jugaad” focused SMBs
Build products & solutions tailor-made for SMBs
Explore partnerships with Tech-Jugaad players to uplevel SMBs
What Should SMBs do ? What Should Tech Players do ?
19 19
Zinnov Worldwide
21, Waterway Ave,
Suite 300
The Woodlands
TX – 77380
PH: +1-281-362-2773
Meilifang Tower 4, Entrance
4, 10/F #1003,
11 Beiyuan Shuangying
Road, Chaoyang District,
Beijing China 100012
Level 42,
Suntec Tower Three
8 Temasek Boulevard
Singapore 038988
PH:+65 6829 2123
69 "Prathiba Complex", 4th 'A'
Cross, Koramangala Ind. Layout
5th Block, Koramangala
Bangalore – 560095
PH: +91-80-41127925/6
First Floor,
Plot # 131,
Sector - 44,
Gurgaon – 122002
PH: +91-124- 4420100
3701 Patrick Henry Dr.
Building 7
Santa Clara
CA – 95054
PH: +1-408-716-8432
www.zinnov.com
@Zinnov
Thank You…