leverage r&d centers for building products for growth markets
TRANSCRIPT
Business Transformation Globalization through
Leverage R&D centers for building products for growth markets
Vamsee Tirukkala Co-Founder & Managing Principal Zinnov
Disclaimer: This presentation is solely for the use of Conference attendees, Zinnov Clients and Zinnov personnel. No part of it may be circulated, quoted, or reproduced for distribution outside the organization without prior written approval from Zinnov
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Panelists Twitter: #Confluence10
Christian Verstraete CTO - MDI Business,
Hewlett-Packard
Jeff Reed VP and GM- Clustered
Storage Business, Symantec
Randy Merry VP LIFENET SMART Services, Medtronics
(Physio Control)
Troy Trenchard Group VP and GM ,
Security and Acceleration Group,
Citrix
M.R. Rangaswami Co-Founder-
Sand Hill Group
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In our benchmarking studies, we have found interesting insights on emerging markets
Huge Diversity amongst markets
Unique billings, sales and services models
Often, Simpler needs and ULCS
Feet on Street is Essential
Have unique Price –Performance Expectations
Unique problem characteristics
High Regulatory impact
Require Easy to Use Solutions
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There are number of products and services that have been built for growth markets with unique characteristics (1/2)
Dual-SIM Phone
More than one SIM because of low cost pre-paid schemes that have incoming free
Spice Telecom – India owned telecom ODM with India Based R&D Center
Dual SIM phone that allows dual incoming and outgoing using either SIM- now Nokia, Samsung and other offer it.
Customer Pain Point
Company
Product
Tencent holdings, own online social networks, IM etc
Leverage micro transactions of digital goods to generate online revenues
Company
The Model
Revenue Model
Micro Transactions online in China
Internet services (digital goods, games, micro-transactions): $344 million (66%) Mobile services: $110 million (21%) Online ads: $67 million (13%) Total Revenues: $523 million Margin 40%, Avg. Margin for Global Gaints-10-14%
Spice
Tencent
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Leaders with R&D centers in emerging countries are using them as a launch pad for developing next generation products
HP’s Gesture Keyboard: The Gesture Keyboard (GKB) is a unique device for entering phonetic scripts. GKB is a pen-based, low-cost device that can be used to input text in these languages. With GKB, an average user can achieve a speed of 10 words per minute with just 2 hours of practice.
TI ‘s LoCosto ULC, the single-chip platform targets the ULC handset market with significant improvements in voice clarity and battery life and a range of advanced features including enhanced color display, FM stereo, MP3 ring tones, and MP3 playback
Microsoft Multi-point- Single Desktop screen multiple mouse usage for educational institutions that allows groups of students to work on one computer—at the same time—helping students everywhere to build essential learning skills such as collaboration, teamwork, and computer familiarity
HP Texas
Instruments Microsoft
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High visibility to the projects within the organization
Incubation done outside of the business units to reduce initial
revenue pressure
Product management/Product architect assigned to the
project
ROI criteria set differently due to longer gestation period
Involvement of emerging market sales organization
Clear charter for the R&D center management to build
products for the growth market
Best Practices in leveraging the R&D Center
It is important to implement a few essential best practices to enable global centers to build products for the growth markets
Thank You
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There are number of products and services that have been built for growth markets with unique characteristics (2/2)
Need for a accounting software that gives the option to edit/delete accounts data
Indian ISV with 400,000 customers in the small business segment
An accounting package that allows you to delete company files by going to the data sub directory. The product also allows you to change entry mid way with out having to go through the entire reconciliation process
Customer Requirement
Company
Product
Hindustan Lever, FMCG manufacturer, subsidiary of Unilever
Project Shakti, leveraging local village entrepreneurs to sell goods
Company
The Model
Revenue Model
The recruitment of a Shakti Entrepreneur is done the company representative with the village head .After training she is asked to put up Rs 20,000 as investment which is used to buy products for selling. The products are then sold door-to-door or through petty shops at home.
Delete/ Hidden Options on Accounting Software
Rural Community Sales Channel
Tally