• SUBMIT YOUR BUSINESS PLAN

  • Facebook Page

  • Follow me on Twitter

  • Take the survey and earn Rupees 20 talktime instantly.

  • Contact Us

Mindshare predicts platform and media trends in 2014

Mindshare, is one of the leading media firms in the world with offices across 115 cities. It handles media buying and selling for brands such as Unilever, IBM, HSBC and Volvo among others.

The firm recently released its digital outlook for 2014 to predict trends across platform and media, consumer technology and digital marketing. YourStory presents to you this indepth report in two parts. First up is platform and media trends.

Read on for indepth insights.

1. New building blocks of digital content

Constant experimentation with the new building blocks is key to winning in mobile Thanks to the shift in consumption of digital content towards mobile devices, increasingly digital content is being packaged in smaller ‘building blocks’ which can be routed across mobile networks and suited to smaller screens. Examples of these new building blocks include Twitter’s ‘Cards’, short-form social video (Vine and InstaVid), ephemeral content (Snapchat), and Buzzfeed’s ‘Listicles*’ – which have enjoyed massive growth across platforms like Facebook and Twitter. The one thing that all of these new building blocks have in common is their inherent shareability.

The opportunity : Many brands have already tested some features of Twitter Cards, but there are 8 in total so we recommend testing all versions, and supporting these with paid media. Similarly, many brands have tested Vines and InstaVids, but there is more experimentation needed – with support from paid media.

2. Clipping & sharing live TV/gaming video content

livesharingpostheadReal-time sharing of live footage just got easier. New technology allows the capturing and immediate sharing of live content from video-based entertainment (eg TV and Console gaming), either by broadcasters, or by users themselves.
Twitter launched their ‘Amplify’ product in the UK at the end of 2013 which enables sponsors of programmes to work with broadcasters to distribute sponsored instant replays and footage in real-time as the content goes out on air. This can all be ‘amplified’ using paid media in the form of Promoted Tweets which will allow this instantly-distributed live content to be targeted to the most relevant audience.
Similarly, Playstation and Xbox’s new consoles also allow in-game footage to be shared in real-time – eg the goal you just scored in FIFA14.

The opportunity : Be one of the first brands to do a Twitter Amplify campaign and join the small but elite cadre of brands who are leveraging live TV content across social.

3. Ecosystem integration
Making the most of Google. The power of the entire Google ecosystem has yet to be exploited by most brands. Over time there have been more and more integrations between Google products – eg a single sign in across all areas – and recently we have seen a step-change in the level of integration. Of course this is largely driven by a desire on Google’s part to create more connected experiences for their users, but these developments have the useful side-effect for marketers of being better able to join the dots between content, search and social.

The most recent development has been the integration of Google+ ‘commenting’ with Youtube comments – effectively allowing a conversation about a piece of Youtube content to live and grow across both platforms. This particular development has been beset by ‘spam’ issues, however we believe that there is a significant opportunity for brands in the medium term. The reason for this is that social signals are becoming increasingly important in Google’s natural search algorithm, so an integrated approach to the entire Google ecosystem across content, search and social is gradually becoming more important for brands.

The opportunity : Explore a true partnership with Google to leverage each area of the ecosystem and measure the incremental effect of bringing all elements of their portfolio together, using content as the glue.

4. Mobile social networks & messaging

Messaging-Apps-SMSPrivate messaging makes a fight-back. Dedicated mobile messaging apps like WhatsApp, Snapchat and Kik are growing at a rate not seen since the early days of social networking. WhatsApp now has over 350m users globally and is growing exponentially. Meanwhile, Facebook stated in a recent earnings call that it was seeing a “decrease in daily users, specifically among teens”. So, whilst teenagers are still on Facebook, it would appear that they are increasingly turning to dedicated messaging apps which are more focused on private messaging. Essentially, teens are looking for platforms where they can be less inhibited than they are on Facebook. On Facebook there is always a risk that your parents or family could see sensitive status updates.

The opportunity : When a big digital trend develops in the teen space it is always worth brands watching closely. The opportunity for brands is clearly limited by the fact that currently there is no available media inventory. However, Snapchat did just hire Instagram’s advertising development director so it appears they are developing an advertising-based business model. In the meantime, it seems the best brand use cases on these messaging platforms are in mimicking or taking advantage of current user behaviours and acting like those users – eg Absolut.

5. Special interest social networks
Whilst Facebook has been busy cornering the ‘social graph’ market, and Google has been focusing on the ‘knowledge graph’, there has been an explosion of new community platforms which aim to corner specific vertical interest areas. People with very specific interests are finding that their specific interests are better served by bespoke targeted networks.
There are already thousands of examples of these special interest-based social communities – eg Learnist (essentially a Pinterest for teachers), Letterboxd (film buffs) and styledon (fashionistas).

The opportunity : Brands need to develop an understanding of the opportunity for adding value to users within these specialist vertical interest networks. At the very least – the depth of interest-signal to be gained by authentically working with these niche vertical communities should easily outweigh the relative lack of scale.

6. Paid-for digital entertainment content increasing exponentially
Brands must adapt to the new premium landscape. A few years ago, piracy was king in the premium digital content world. Nobody paid for digital content. Nowadays – whilst filesharing sites are still popular amongst younger demographics – it is the turn of premium content to be king. Paywalls around news websites (eg News International), premium versions of social networks (eg linkedin), and an exponential increase in people who are prepared to pay for music and film (eg iTunes, Netflix, Blinkbox) are all evidence of a bright future for paid-for digital content.

And with increasing numbers of users prepared to pay for streaming or downloads it means there is a corresponding decrease in advertising opportunities around the most premium content.
So how can brands reach these ad-free premium content audiences?

The opportunity : The long-term opportunity for some brands is to publish premium quality branded content themselves. But this is not suitable for all brands and also requires proper sustained investment over time.
In the short term there is an opportunity for all brands to advertise at the point of entry in to premium paid-for content – eg within Xbox Live – or to develop more integrated promotions with streaming partners like Spotify or Microsoft – eg to subsidise free streaming of movies.

7. The Internet of Things

iotPhysical objects become internet-enabled and connected. Gone are the days of computers, smartphones and tablets being the only objects to connect to the internet. Today, nearly everything around us from fridges to light switches & TV remotes to cars has the ability to become an inter-connected web object. Today there are 12 billion devices across the world that can connect to the internet, but by 2015 Cisco predicts that there will be 25 billion – jumping to 50 billion by 2020 (almost 7 times the number of people of the planet). As an example, UPS fitted trackers to all their delivery vans then analysed the route data. They calculated that vans sat waiting to make left turns equated to 206 million minutes of idling time. As a result, they re-routed their delivery routes to minimize left turns and saved more than 1.5 million gallons in fuel.

The opportunity : The opportunity is in using the data produced by internet connected devices to enhance consumers’ lives, making tasks quicker more straightforward or adding genuine value. Additionally, there is an emerging opportunity to create branded apps which tap in to connected objects (eg branded recipe app for connected fridges) For brands there is also potential to work with partners who are taking a leadership position in this space. For eg Telefonica/O2, who in 2013 signed a £1.5bn deal to deliver smart meter systems in the UK. Their aim is to install 53m smart meters in UK homes by 2020 which could become the predominant platform for ‘the internet of things’ in the home in this country.

Advertisements

Mobile Startups: Insights from Mobile India 2014 conference

The Mobile India 2014 conference, held recently in Bangalore, showcased a range of opportunities in the space of Social, Mobility, Analytics and Cloud (SMAC). In addition to SMAC, there are also opportunities opening up in security and smart sensors, leading some speakers to joke that the acronym SMAC should actually be SSMACS!

In an earlier article, we looked at the top trends in enterprise mobile as identified by speakers from the 2014 conference. The 2013 edition of the conference also featured a panel on mobile startups (see my coverage here).

Mobile FI

“Mobile is the centre, cloud is the backbone and analytics is the nerve centre of digital business,” said Manjunath Gowda, CEO, i7 networks. Here is my pick of the Top 15 tips for mobile startups, based on the discussions at the Mobile 2014 conference.

1. Focus on solving real business needs

We are living in an age of realtime information overload. $300,000 is spent on online shopping every minute; 600 videos are uploaded to YouTube each minute; Facebook has over 700,000 updates each minute; and Twitter generates 12 terabytes of data daily – and this is just the tip of the proverbial data iceberg. However, for analytics to make sense of this data  is much more than just statistics; it connects realtime occurrences to the big picture and to pressing business needs and insights. Many startups are going after the low-hanging fruit, but there is much more value in sensemaking and decision support.

“The key challenge today is the inability to think big and ask the right questions to make a difference to businesses,” observed Venkatesh Vaidyanathan, VP, Product Management, Business Analytics, SAP Labs.

For example, true benefits arise when startups connect Big Data to predictive maintenance, brand sentiment, threat detection, product recommendations, fraud detection, realtime risk mitigation, realtime demand/supply forecast, personalised care, and resource optimisation. In this regard, Bangalore company Ramyam Intelligence Lab is rightly positioned by offering analytics and Big Data solutions to telcos to help address their needs of personalisation, churn reduction, loyalty management, and cross-selling of services.

2. Tell a story

The business opportunity lies not just in crunching data and unearthing patterns but building a larger narrative, a compelling story. “There are stories lurking in data. Analyse it, capture it, tell a story from it, make it actionable,” urged S. Anand, Chief Data Scientist, Gramener.

Fields like analytics are as much art as science, and players entering this space need to mix analytics skills with IT. Winning customers will depend not on technical skills but on the ability to deliver insights, discovery and new business knowledge – and thus clinch deals with powerful stories.

3. Address enterprise mobile

Much attention understandably focuses on consumer apps, but there is a world of enterprise and productivity apps also fast emerging. Startups can show how SMAC can be used to improve field worker productivity, for white collar and even blue collar workers. Services offered as “also mobile” will become “mobile first” even in the enterprise environment.

More than 50% of employee devices are purchased on their own. 70% of professionals will use smartphones by 2018, said Archana Kamath, Manager, Mobile CoE, EMC Software and Services India. BYOI (Bring Your Own Identity) is the next wave of consumerisation of IT in enterprise space.

Mobile cloud and workflow tools are now becoming available for SMEs too, and a new wave of value is being unleashed. Mobiles give companies not just deep consumer insights but continuous consumer insights, according to Alwyn Lobo, Senior Mobility Solutions Architect, IBM.

4. Offer security solutions

The increasing digital nature of the economy is also creating chaos, and the ‘attack surface’ of businesses is increasing via mobile. This calls for tools and companies who can provide better monitoring and governance of enterprise networks. For example, Misys GeoGuard uses customer location to reduce fraud for banks. The SnapChat hacking incident shows API vulnerability in world of mobile. API security will play centre stage as mobiles become gateways in the Internet of Things, predicted Shreekanth Joshi, Vice President, Cloud Practice Head, Persistent Systems.

“Look out for Trojans like mRats, host-based jammers, and tunnel borers,” cautioned Manjunath Gowda, CEO, i7 networks. 71% of mobile devices have OS/app vulnerabilities, and there has been 600% growth in mobile malware over last couple of years. 90% of BYOD enabled Indian businesses had a mobile incident in last 12 months, according to sources cited by Gowda. This opens up new markets for security products and services.

5. Watch the competitive space

Startups should aim for a ‘blue ocean’ strategy and enter fresh waters – or else figure out a way to do things better, faster, easier and cheaper than existing players. Several existing players and case profiles were highlighted by Dr. Sanjoy Paul, IEEE Fellow and Managing Director, Accenture Technology Labs India: such as blippar (mobile ads with augmented reality), and use of analytics by Walmart to predict product demand and by Google to forecast ad keyword demand. This reflects the overall trend of increasing real time bidding (RTB) exchanges; static models are declining. Reach.ly mines Twitter to help hotels reach potential guests in real time. Coursera is using analytics to better serve learners. FitBit and OnStar are other good examples of realtime analytics in action.

6. Address the “Four Vs” of Big Data

Big Data is important because there is too much data and too little time for businesses to take informed decisions in realtime. Hence startups should find opportunity in one or more of the “four Vs” of Big Data: volume, variety, velocity, value. In other words, they should show business leaders how they can help tackle data overload, data diversity, realtime data, and mining of insights.

7. Watch sensor networks, M2M and IoT

The Internet of Things (IOT) is currently at early hype stage, but will soon become mainstream, as the recent Consumer Electronics Show indicated: this ranges from wearable devices to smart tennis rackets, and also opens the door to a new range of analytics products and services. Mobiles are cumulatively becoming sensor aggregators, said Shreekanth Joshi, Vice President, Cloud Practice Head, Persistent Systems.

In healthcare, for example, the ‘digitised patient’ will become the hub for measuring, modelling and predicting treatments based on instrumentation and on-body sensors. Typical M2M scenarios encompass energy and water meters, cars, cranes, vending machines, fridges, air-conditioners, and ATM machines. The ATM attack incident in Bangalore shows the importance of monitoring all locations via M2M, said S.Girish, COO, ConnectM.

8. Move beyond location to context

Location and context are blending together to create new kinds of mobile-powered services and advertising. For example, a Tokyo company recruits drivers for two-hour time slots in different neighbourhoods; the matching is based on proximity of available drivers. Analytics coupled with mobile is a powerful combination.

9. Choose cloud for scale

Cloud computing drastically reduces barriers to entry for infrastructure improvement for startups in the growth curve, as shown by the acceleration of companies such as Animoto. The costs for launching a startup and promoting it are much lower these days than before, thanks to cloud infrastructure and social media. However, it should be noted that the business fundamentals of team management and financial models remain unchanged.

10. Evolve from being aware to becoming smart

“Tomorrow’s enterprise is hyperconnected, super-aware, and borderless. Will it be smarter?” asked Ramesh Adiga, AVP & Head, Global Delivery, Mobility Unit, Infosys. The next stage of mobile evolution is ‘superphones’ driven by platforms and lifestyle devices.

Harrah’s Casino in Las Vegas is using Big Data in blackjack tables to figure out how to make gamblers comfortable and stay longer. Designer shoe store Meatpack in Guatemala uses realtime analytics to ‘hijack’ customers from competitors. “Analytics is changing the face of what we usually think of as mundane business,” said Sanjoy Paul of Accenture Labs. Startups need to go beyond ‘the usual suspects’ and identify opportunities right at the street corners and not just main street, and help clients move ‘from dashboards to decisions.’

11. Track emerging business models

The acquisition of Bangalore-based app optimisation company Little Eye Labs by Facebook for an estimated $15 million has shown that app infrastructure and ecosystems are also ripe targets for startup activity. An interesting model to watch is MBaaS – mobile backend as a service, as shown in app cost estimation and cloud models (Kinvey, Appcelerator, FeedHenry). Nicira can reconfigure physical network into multiple virtual networks.

12. Think big

Startup founders should not just look   at the idea or product but also the overall context, customer needs, scalability, UI/UX, andMobileIndia222 viral effects, advised Bharati Jacob, Founder Partner, Seedfund. For example, Limo service Uber may work well in Bangalore, but not have as much impact in Bombay where there are reliable taxis everywhere, she observed.

Many startups with good models focus largely on the local market and are not thinking global from the early stages. A few are, such as Zomato from India. “Maybe the Indian education system does not encourage us to think big and aim high,” added Jacob.

13. Make mobile marketing more targeted

Mobile marketers should stay away from the ‘spray and pray’ model of mainstream media, advised Ashvin Vellody, Partner, KPMG. There are numerous ways in which startups can help marketers experiment and refine ways of segmenting users and messages right down to, for example, passengers stranded  at airports and train stations.

14. Focus on social discovery and not social shopping

For a range of reasons, social shopping online has not worked well, but mobile social media has accelerated the discovery, inspiration and validation of online shopping, according to Kaushal Sarda, CEO, Kuliza Technologies. Social media is about conversations, so digital marketers and advertisers should figure out how to be part of or stimulate conversations, he advised.

15. Multiple mobile payment models will co-exist

Mobiles accelerate consumption of content and commerce, according to Ravi Pratap, Co-Founder and CTO, MobStack. “Multiple kinds of m-payment models will be needed in India, including via mobile operator billing as in the US,” said Pratap. Tier 3 and Tier 4 cities are takeoff markets for e-commerce in India, for everything from the latest books to lingerie sales, said Ashvin Vellody, Partner, KPMG. Retailers in India are executing their marketing campaigns on mobile social media now, not just PC-based Facebook, added Hrish Thota, Senior Manager, Social Computing, Happiest Minds.

In sum, mobile is pivotal to sense, influence and fulfill demand. “Mobiles will be ubiquitous and pervasive,” said Adiga of Infosys. But only an estimated 15% of Fortune 500 organisations have a concrete mobility strategy, opening up a wide door of opportunity for players in mobile space.

“Every business is a digital business, thanks to mobile, social, cloud and analytics. This is happening on a scale not possible before. SMAC helps companies simplify, accelerate, adapt and make better decisions,” said Accenture’s Paul.

Interesting questions to ponder – possibly at next year’s Mobile India conference – would be whether Facebook will be eclipsed by the next generation of social media, how cross-pollination between sectors will throw up new opportunities, and whether regulation and government may dampen the enthusiasm of the tech sector.

These 7 Trends Will Make You Incredibly Optimistic About The Internet Business In 2014

JP Morgan analyst Douglas Anmuth and his team are incredibly optimistic about the Internet industry in 2014.

In an email he just sent out to clients, Anmuth says that Internet stocks increased in value 78% during 2013 thanks in large part to seven “key” trends.

He says, “We believe those underlying dynamics should continue in 2014.”

Here are those key trends:

Mobile revenues will catch up to mobile usage.

In 2013, it finally happened: people use the Internet more through their mobile devices than they do through their desktop computers. But even though mobile usage was up, popular mobile products still did not have as much sales as desktop products. Anmuth and his team think this will start to change in a big way in 2014. He says users will become more savvy and comfortable with mobile devices. Apps will become more functional. More desktop sites will become mobile-optimized. This trend has already started, as mobile shopping on Cyber Monday was up 28% year-over-year to $5.8 billion.

 

jpmorgan2014chart01JP Morgan/Comscore

 

 

The kinds of ads you see in you Facebook News Feed are going to start showing up everywhere.

Facebook makes the majority of its advertising revenue selling units that appear in its “News Feed” – that center column of photos, status-updates, news stories, videos, and ads you see every time you open a Facebook app or go to Facebook.com. Twitter also makes almost all of its money through ads that appear in-stream. Anmuth and his team believe that in 2014, more companies will start to make such “Native Ads” their primary ad unit. Yahoo and LinkedIn will make the shift first. This is a positive trend for the industry because in-stream, “native” ads have “significantly higher click-through rates than traditional display ads, which leads to higher pricing over time.”

 

How Popular Are Native AdsJP Morgan/eMarketer

 

 

Advertisers will pay a lot to reach you on the right device at the right time.

Smartphones and tablets aren’t making it so people get on the Internet less through the desktop. They are making it so that people are on the Internet more during the day. Studies show that people use their tablets in the morning, their desktop computers during the day at work, and their phones at night. Companies like Google and Facebook are busy making tools that not only allow advertisers to specifically target you with an ad – but target you when you are using a particular device at a particular time. This will allow advertisers to target consumers when they are in the “right mood” to see a product and complete a transaction.

 

When people use which Internet-connected deviceJP Morgan/Comscore

 

 

Advertisers will finally be able to make apples-to-apples comparisons between Internet ads and TV ads, and Internet ads will prevail.

For a long time, Google, which owns YouTube, did not allow the companies that measure how popular TV shows are to use the same tools to measure how popular online videos are. In 2013, that changed. And then, when the apples-to-apples comparison between YouTube and cable channels finally came out, it was revealed – in a language that TV advertisers understood – that YouTube is massive. For example, among males aged 18-54, it is bigger even than ESPN. Now that TV advertisers can see this, they are going to do two things. They are going to spend more on Internet advertising to reach audiences on the Internet, and they are going to spend more on Internet advertising to convince the audiences there to turn on the TV – where they will see TV commercials.

 

YouTube reach versus cable networksJP Morgan/Nielsen

 

 

It will become more common to buy goods like food or wallpaper online because shipping will be more immediate.

Right now, 10% of all retail spending is done online. That number is going to increase in 2014, Anmuth and company believe, because e-commerce companies are getting better at shipping goods the same day they are ordered online. Companies are doing this two ways. Pure e-commerce companies like Amazon are building more local distribution centers. Traditional retailers are allowing online shoppers to buy goods currently held in inventory by local stores.

 

The 2014 ecommerce opportunityJP Morgan/US Census/Forrester Research

 

 

Amazon and Google have lots of spare computers, and more Web companies are going to pay to use them in 2014.

Google and Amazon have massive server farms located all over the world. These server farms aren’t even close to being maxed-out by Amazon and Google products and services. So, Amazon and Google sell some of the spare capacity to other Web companies. Netflix, for example, is powered by Amazon computers. The JP Morgan analysts think that more companies will buy Internet computing capacity from Amazon and Google this year. Anmuth says this will create a “virtous cycle” in which businesses pay less for infrasctructure, charge consumers less, and bring more consumers online.

 

content stored on Amazon's serversJP Morgan/Amazon

 

 

The insanely competitive online travel industry is expanding to mobile and overseas.

Anmuth and his analysts believe four factors will drive consumers to use online travel agencies more in 2014. 1) Heating-up competition between big companies like Priceline and Experdia will force them to buy more ads and offer more deals. 2) Sites that sell tickets to consumers and sites that help consumers find sites that sell tickets are becoming the same thing. 3) Online-travel booking is getting more popular in international markets. 4) People are starting to book travel from their mobile devices, and for more than just that same day.

Innovations For Sustainability

In India, this quote by Yunus continues to be relevant even today as a majority of its population battles poverty. Socially focused ventures that provide innovations for low-income markets and create opportunities for a better lifestyle have however made significant progress in fighting this battle – especially since India got independence from colonial rule in 1947.

As India celebrates its 67th year of freedom it seems poignant to therefore pause and reflect on eight milestones that have played an important role in shaping India’s social enterprise landscape and the lessons they teach us.

1. Founding of Amul Dairy Co-operative (1946 – 1950)

The founding of the Kaira District Co-operative Milk Producers Union in 1946 and the Amul Dairy in 1950 has over the years given thousands of dairy farmers access to a wide range of domestic markets and spurred India’s milk revolution. The diagram explains in detail how the Amul co-operative benefits numerous dairy farmers across India.

 

Amul demonstrated that the elimination of middlemen and the professional management of milk procurement could result in low-income farmers getting access to new markets thereby lifting them out of poverty. While Amul was not conceived as a social enterprise, it is a historic example of supply chain management that is relevant even today.

2. Beginnings of Fabindia (1960)

Founded by John Bissell to market the diverse craft traditions of India, Fabindia started as a company exporting home furnishings. By linking over 80,000 craft based rural producers to modern urban markets, Fabindia impacted rural artisans at a scale similar to that of Amul for dairy farmers.

Fabindia’s unique ‘community owned company’ model that promotes inclusive capitalism can be credited for the impact they have created. By providing a minimum 26% shareholding to companies co-owned by artisan communities, Fabindia not only offered artisans a regular income but also dividends from the company’s growth. Today, with a pan-India presence, Fabindia is the largest private platform for products that derive from traditional crafts and knowledge.

3. Founding of Ashoka in India (1981)

Ashoka laid the foundation for the concept of social entrepreneurship around the world and started working in India in 1981. Their yearly batches of Changemakers – a community of social entrepreneurs that work to launch, refine and scale high potential ideas for low-income markets – has proven to be a successful model that has been adopted by several accelerators globally.

 

Ashoka’s establishment in India highlighted the importance of non-financial support in the form of networks, mentors and beyond to accelerate the growth of entrepreneurs working with innovations for low-income markets. Since inception in India, Ashoka has identified and worked with more than 350 fellows with innovative solutions from diverse fields and provided them access to funding, expertise and the global networks necessary to grow operations and scale impact.

4. Establishment of SELCO Solar (1995)

SELCO Solar was established with the mission to dispel the myth that low-income communities cannot afford or maintain sustainable technologies. SELCO resolved this challenge by not only creating low-cost solar solutions for lighting, water pumping and computing but also by providing a complete package of product, service and consumer financing through grameena banks, cooperative societies and micro finance institutions.

In a time when only a limited amount of financial and non-financial support was available to socially focused entrepreneurs and affordable solar power was a distant dream even in developed countries, SELCO not only sold and serviced solar lighting systems but also developed and scaled a business model for bringing rural services to poor families. In the past 18 years, SELCO has sold over 1,35,000 solar home lighting systems.

5. India’s First Impact Investments (2001)

It was in 2001 that Acumen Fund; a powerful catalyst for socially focused ventures internationally, brought its approach to India and made its debut investment in Aravind Eye Hospital. Acumen went on to open its India office in 2006 and has since invested USD$36 million in 26 different social companies in India.

In the same year, Vineet Rai also founded Aavishkaar, India’s first for-profit impact investment fund. Aavishkaar now oversees four investment funds and over 25 portfolio companies across sectors such as agriculture, dairy, healthcare, water, sanitation and beyond in India.

The introduction of both Aavishkaar and Acumen in India showcased the demand for early-stage investments in socially focused enterprises to scale both operations and social impact.

6. Social Enterprise Reaches Indian Universities (2007)

Education has often been seen as a stepping-stone towards positive change. The introduction of the Masters in Social Enterprise at one of India’s leading academic schools, the Tata Institute of Social Sciences in 2007 heralded a small but growing trend to provide formal training for entrepreneurs aspiring to create social change.

The founding of this masters program raised the academic profile for social enterprise as a career and created a viable pathway for the next generation of socially focused leaders.

7. Introduction of the Sankalp Summit (2009)

Sankalp Forum’s annual summit in 2009 was the first such event of its kind in India that brought together multiple stakeholders such as entrepreneurs, investors, experts and development partners to review the progress made within the sector and to set course for the future. It was initiated with the vision of catalyzing impact investments into social enterprises globally and has today evolved into a community of over 350 socially focused enterprises, 300 investors and 300 sector stakeholders.

The popularity of Sankalp Forum brought to the forefront the importance of local and regional events for the convergence of global knowledge and investment dialog necessary to further the inclusive ecosystem in India.

8. Passing of the Companies Bill (2013)

The passing of the Companies Bill and along with it the mandatory 2% of profits spend on CSR activities is a historic piece of legislation. While the impact of this spend has been a topic of much debate, including criticism that CSR is simply a public relations exercise, the new bill is an opportunity for Indian corporates to embrace a few large social problems that government benefits have been unable to resolve satisfactorily.

Moreover, the bill is aimed at providing important financial resources to NGO’s, social enterprises as well as incubators and accelerators with the ultimate intention being for corporates to play a greater role in eradicating social problems such as hunger and lack of education which continue to fester in India.

Steve Jobs – though unrelated to social enterprise – said, “You can’t connect the dots looking forward; you can only connect them looking backwards. So you have to trust that the dots will somehow connect in the future.”

Similarly, not only do these eight milestones define India’s social enterprise landscape but they also act as important opportunities for reflection on the way forward – for entrepreneurs, investors, accelerators and governments alike.

How to do business in rural India?

India’s fast-paced growth has been a topic of much debate and discussion in the last few years. As a result of booming sectors such as IT, there is a growing sense that the country is emerging as a global leader. As a result, at times India is being touted as the mecca of ‘Jugaad’ innovations – a term used to describe the process of finding innovative solutions to problems with limited resources.

However, as only 12% of India’s population lives in cities, the remaining 88% of people are not reaping many of the economic benefits from the country’s evolving leadership status and associate growth. Rural poverty remains rampant; as a result, innovative thinking is required to meet the needs of India’s majority.

At Ennovent we spoke with Mr. Pradeep Kashyap, the CEO and Founder of MART – India’s leading emerging markets consulting firm about the opportunities and challenges of creating innovations for rural Indian markets:

The term ’India Shining’ has been given to India’s progress in recent years; does opportunity exist for entrepreneurs in rural Indian markets?

Yes, significant opportunity exists in rural India. ‘India Shining’ was a term coined by the government to showcase the economic development of largely urban India. However, in more recent years rural growth has outstripped that of urban. For example, in recent years fast moving consumer good (FMCG) growth in rural India has been around 17 – 18% as compared to only around 11 – 12% in urban India. This is also reflected in industries such as durables and automobiles.

Rural India is now a one trillion dollar economy – equal to the economy of Canada or South Korea. If you add towns with populations below one million then the rural and small towns economy accounts for 75% of India’s GDP while the 50 top cities representing urban India contribute only 25% to the country’s GDP.

What are the factors driving consumption in rural India?

Approximately 800 million people live in rural India of which at least half earn less than USD 1 per day. The other half earn between USD 1 to 5 per day. There are only 50 million ‘rich’ people in rural India – meaning those that earn more than 5 dollars per day.

The consumption story in rural India is being driven by different factors in varying income segments. The rural employment guarantee scheme has added significantly to the purchasing power of the poor through the 6 billion dollars paid as wages annually. Simultaneously, the wage rate for private work in rural India has also gone up because of the higher wages paid under the Employment Guarantee Scheme; the poor are getting more days of work at higher daily rates.

Similarly, the middle-income segment has benefitted from better road connectivity. Youth living in these areas have bought motorcycles and taken up more lucrative jobs in nearby towns. The rapid urbanization has also benefitted the rich farmers who have sold their land at exorbitant rates to real estate developers particularly around the metros.

Doing business in rural India is often termed as challenging. Could you give your thoughts on how entrepreneurs can cope with distribution and other related challenges?

Rural India is diverse, heterogeneous and spread over half a million villages – this is a daunting task for any marketer. However, there are only 100,000 villages with populations of over 200 people. These villages not only account for 50% of the total rural population but also account for 60% of rural wealth. If companies begin by focusing on these 100,000 locations first the distribution nightmare can be effectively tackled.

Additionally, rural India can be categorized into 3 development segments with the most developed states being Punjab, Haryana, Maharashtra, Gujarat and Kerala – with all the remaining states are being in the developing category. Due to the higher per capita income, it is recommended that companies begin by focus on rural areas in the developed states first and then move across the country.

What are the lessons entrepreneurs can learn from large brands such as Ghari or Thums Up that have successfully penetrated these markets?

Most multi-national companies make the mistake of bringing international brands and tweaking them slightly for rural consumers – however the rural eco system is significantly different. For example, running water is not available and high voltage fluctuations and power outages render traditional products such as washing machines and televisions unattractive.

Regional brands, on the other hand, offer customized solutions. Jolly TV has captured the market in Uttar Pradesh by offering a battery backup and voltage stabilizer system. The battery gets charged when electricity is available and the television runs on battery when the family wants to watch programs during power cuts. Ghari detergent customized it’s offering by studying the water map of India to add softener and whitener according to the quality of water.

Entrepreneurs have to realize that each state in India is the size of a country in Europe and therefore it is important to develop product and marketing strategies state-wise. Engaging regularly at the grassroots level with consumers also gives entrepreneurs’ deep insights and feedback on how customers perceive the value of the product, which is otherwise not easily available.

For international entrepreneurs working in low-income markets looking to establish their footprint in India what is your advice to localize their business model?

The most important point is that international entrepreneurs must co-create products in partnership with local communities to understand and incorporate on-ground realities. As a result, hiring local talent that understands the culture and consumer behavior of these markets is key. I would also recommend that since India is a large country, entrepreneurs should first pick one state to begin operations and then consider expansion.Rural India is developing quickly. To succeed in such remote communities, small and large enterprises alike must be localized, offering innovative product and services based on a strong regional background. Early-stage enterprises also require a strong support network from innovation accelerators such as Ennovent and consulting firms such as MART. It is through the provision of a range of financial and non-financial support services that the best innovations for sustainability can succeed in low-income rural markets.

Opportunities available for entrepreneurs, investors, mentors and experts to add value to the Indian healthcare industry.

Healthcare has become one of India’s largest sectors – both in terms of revenue and employment. Although the country’s healthcare industry is projected to continue its rapid expansion, with an estimated market value of US $280 billion by 2020, increased population growth in India’s low-income communities has resulted in a lack of affordable and easily accessible quality healthcare for millions of people.

As a comparison China has 30 hospital beds every 10,000 people, whereas India has only 12. The figures are even more alarming for nurses. In the United States there are 98 nurses per 10,000 people and in India there are only 13.

Despite government efforts to improve widespread access to quality healthcare, India’s existing infrastructure continues to be insufficient resulting in limited treatment options, especially for low-income families.

Recognizing the need for innovation within healthcare, in 2012, Ennovent partnered with the University Impact Fund, one of the world’s first student driven impact-investing firms, to research the opportunities available for entrepreneurs, investors, mentors and experts to add value to the Indian healthcare industry.

It was uncovered that in rural villages and towns, where the majority of Indians reside, a staggering demand exists for affordable remedial healthcare options such as the manufacturing, distribution or provision of various healthcare products and services. Highlighted below are some of the areas within healthcare that are well positioned for innovative business models.

 

India’s eye care sector is ripe for innovation

In the context of India’s eye care sector – a subsector that is currently in strong need of practical solutions – the business models used by organizations such as Vision Spring and Drishti Eye Care are excellent examples of addressing the issues of affordability and accessibility through innovation.

 

Photo Credit: globalvillagedirectory.info - Picture may be subject to copyright - LV Prasad Eye InstituteVision Spring uses the micro-franchise approach to create vision entrepreneurs that aid in the distribution of affordable reading glasses to BoP customers. Whereas Drishti Eye Care uses a three tier hub and spoke model which offers primary eye care through telemedicine supported vision centers, and screening camps and surgical care at district hospitals. Both models are leveraging technology and unique distribution approaches to improve service quality overall.

Improved Neonatal Care will curb maternal mortality

Research indicates that 20.9% of babies in India are born prematurely due to pre-term complications such as hemorrhaging and hypertension. Since incubators are commonly unavailable outside hospitals, premature infants are susceptible to lung disease and hypothermia.

Significant opportunity exists in the manufacture and distribution of products such as incubators, resuscitators and birthing delivery kits that offer pre-mature babies born outside of a hospital and mothers a greater rate of survival. Innovations such as Embrace, affordable infant warmers regulate a baby’s temperature without electricity, are well placed to scale widely within India.

 

Emphasis on primary care will save lives

Current healthcare programs focus disproportionately on specialist care rather than primary care. By 2020 chronic diseases such as diabetes, which can be typically remedied through primary care providers in the early stages ,will be responsible for seven out of every ten deaths in emerging markets such as India.

 

Vaatsalya, India’s first hospital network operating in remote towns and villages is an example of an innovative enterprise working to reduce the primary care gap. By hiring doctors that live in the local area and focusing less on specialist care, Vaatsalya is able to provide quality primary and tertiary care in remote areas cost-effectively.

Paving the way for social enterprises to fill service gaps

As India’s healthcare industry continues to evolve, significant innovations in products and services will ensure that low-income people have access to affordable healthcare products and services.

 

Development agencies, enterprise incubators, innovation accelerators, private investment funds as well as foundations are all important vehicles to support these healthcare innovations. At the same time, public private partnerships continue to be important.

Photo Credit: Rama Lakshmi/The Washington Post Ennovent is an integrated model that discovers startups, refines their business models through on-the-ground mentoring, provides finance and enables access to specialized expertise to grow operations and scales impact. These kinds of service enable enterprises to create sustainable impact on the lives of low-income people in India.

Overall, significant opportunities exist for entrepreneurs, investors and experts to have a positive impact on people living in low-income areas with limited access to affordable healthcare.

[Book Review] Disciplined Entrepreneurship: 24 Steps to a Successful Startup

Many believe that entrepreneurship cannot be taught, but it is possible to teach people how to make great products and thus create a successful startup, as clearly illustrated in the insightful and actionable guidebook, ‘Disciplined Entrepreneurship.’

Bill Aulet is the managing director in the Martin Trust Centre for Entrepreneurship at MIT and also a senior lecturer at the MIT Sloan School of Management. He has launched initiatives like the MIT Clean Energy Prize, Energy Ventures Class, Regional Entrepreneurship Acceleration Program (REAP), “t=0” Entrepreneurship Festival, Beehive Cooperative, Entrepreneurs Walk of Fame, Corporate Innovators Sponsor Group, and Global Founders’ Skills Accelerator.

Bill has had a 25-year track record of success in business himself. He has directly raised more than $100 million in funding for his companies and led to the creation of millions of dollars in market value in those companies.

Many of the case studies in the book feature the company he founded, SensAble Technologies. The other case profiles in the book are from Aulet’s course, with startups in sectors such as footwear, water filtration, furniture shopping, baseball fantasy games, wind turbines, bio-sensors, landfill technologies, silent alarm clocks, arts education, skin care, digital marketing, and e-commerce for handicrafts.

The book also has a companion Web site (http://disciplinedentrepreneurship.com/) with case studies and other resources. Entrepreneurship is a team sport which can be taught and should be considered a legitimate profession and discipline, according to Aulet.

The book covers many iterative loops along the startup roadmap, and the steps are illustrated by Marius Ursache. It is not knowledge that sets you free, but action, Aulet explains. To begin with, entrepreneurs must have an idea, a passion, and preferably a tech breakthrough.

One chapter is devoted to each of 24 steps in the startup toolbox, and I have summarised them briefly in Table 1 according to six themes; each chapter makes for a superb read and is backed with references and resources.

Table 1:  Steps to a Successful Startup

Theme Steps Activities and Items
Customer identification Market segmentation, beachhead market, end user profile, TAM size, persona; next 10 customers Primary/secondary market research (users, benefits), word of mouth channels, qualities of customers, top-down and bottom-up determination of total addressable market
Customer offering Full life cycle use case, product spec, value proposition, core definition, competitive positioning Product acquisition/installation/payment, brochures and mock-ups, USP (‘secret sauce’ – eg. network effect, UX), meeting customer needs better than existing offerings
Product acquisition by customer Customer’s decision making unit, acquisition process of paying customer, sales process mapping Decision makers and primary/secondary influencers, budget cycles and times, adjacent customers, sales activities over near/medium/long term
Monetisation Business model, pricing framework, lifetime value (LTV), cost of customer acquisition (COCA) Models to capture value from customer (eg. subscription, licensing, ads), price points and ranges, charges and recurring fees, top down costs of lead generation and conversion
Product design and development Identifying key assumptions, testing assumptions, minimum viable business product (MBVP), proof of purchase List assumptions in the market and customer mindset, test through observations and polls, design basic product which customer will pay for and give feedback, demonstrate intent to purchase and engage
Scaling the business Calculate TAM size of follow-on markets, develop a product plan Determine product features for beachhead market, determine adjacent markets and product changes needed

Aulet distinguishes between SME entrepreneurship (more focused on non-tradeable jobs such as running a restaurant, with linear growth rates) and innovation-driven entrepreneurship (with investments, more risk, and potential of global exponential growth and profits).

He also highlights the unique nature of ‘two-sided’ markets which need two kinds of communities to succeed, for example buyers and sellers (e-Bay) or readers and advertisers (AdWords). This calls for multiple total addressable market (TAM) calculations and persona descriptions for each.

“Beachhead TAM calculation is your sanity check that you are headed in the right direction,” Aulet flags off in the beginning. It is a combination of customer base and estimated product price. Value proposition itself is a combination of how the product makes life better, faster, cheaper or less risky for the customer.

Entrepreneurs should stay out of the ‘reality distortion zone’ and not fall victim to their hope and hype; dealing with customer feedback – even from naysayers – will help focus on real solutions, Aulet advises.

‘Core’ aspects of the startup would be unique features such as network effects, outstanding customer service, lowest cost or best user experience. This will then need to be backed up with business models such as up-front charge, hourly rates, subscription, license, ad support, reselling of analytics, transaction fees, tiered models, shared savings and franchise.

Pricing should be flexible for a range of customers, example for early testers, lighthouse customers and co-creators. Lifetime value calculations are important to gauge the long-term viability of current and future products, and go hand in hand with calculation of customer acquisition costs.

Once a product has been launched, the startup founder then needs to address the challenges of building company culture for the long term, HR strategies, cash flow skills, and corporate governance.

“The world needs more and better entrepreneurs because our world’s problems are becoming more dire, complex and ubiquitous,” Aulet concludes.

The book has a number of witty and inspiring quotes, and it would be nice to end this review with some of them.

“Entrepreneurship is not only a mindset but a skillset.” – Mitch Kapor, Founder, Lotus

“While the spirit of entrepreneurship is often about serendipity, the execution is not.” – Joi Ito, Director, MIT Media Lab

“Ideas are a dime a dozen but great entrepreneurs are what create value.” – Paul Maeder, National VC Association

Financial inclusion: Banking the unbanked.

Pic courtesy: http://www.currencyofprogress.in

Pic courtesy: http://www.currencyofprogress.in

We recently wrote a post on YourStory on how financial inclusion poses a very real business opportunity for startups. In this post, we delve a little further into the social aspects of financial inclusion and the burning need for empowering India’s underserved sections.

Dr. K.C. Chakrabarty, Deputy Governor, Reserve Bank of India, has defined Financial Inclusion in these words, “…the process of ensuring access to appropriate financial products and services needed by all sections of the society in general and vulnerable groups such as weaker sections and low income groups in particular at an affordable cost in a fair and transparent manner by mainstream institutional players.”

In an emerging economy like India, financial inclusion becomes a question of both access to financial products and also the knowledge about their fairness and transparency. Many people who fall in the unbanked category are not adequately informed about the nature of the financial services that might be available to them. Having proper delivery systems and information sharing mechanisms are important for promoting financial inclusion, but at the same time we can’t afford to ignore the demand side factors. Many regions, segments of the population and sub-sectors of the economy have a limited or weak demand for financial services. Their level of inclusion can only be enhanced once issues related to demand side have been addressed.

Government initiatives – heart in the right place but are the effective?

The Government of India’s agenda of inclusive growth is reflected in the kind of policies and regulations that the policy making and regulating institutions, like RBI, IRDA, PFRDA etc. have been developing over the past decade. There has been in multifold increase in the number of back branches, especially in rural areas; the branch network was around 8,000 in 1969 and now it is more than 89,000, spread across the length and breadth of the country.

The KYC norms for bank accounts with smaller sums of money have already been relaxed. In rural areas, new account holders can be introduced by local citizens. Public Sector banks are providing poor and marginalized sections of the population with a choice of a ‘no frills account’ where the minimum balance is nil or very small, but with restrictions on number of withdrawals etc., to facilitate easy access to bank accounts. Aadhaar can also be very useful for financial inclusion, as it provides all the citizens of the country a rather foolproof way of proving their identity in an easy and seamless manner.

However, these initiatives for strengthening financial inclusion are yet to have a substantial impact on the lives of the excluded population. Over half the Indian population is unbanked. Only about 55% of the population in the country has a deposit account and around 9% has credit accounts with banks. According to data from Reserve Bank of India (RBI), India is the home to largest number of unbanked families (more than 145 million). There is only one bank branch per 14,000 people. The total number of villages in the country is estimated to be more than around 6 Lakh, but the number of scheduled commercial banks (SCBs) and Regional Rural Banks (RRBs) stand at only 33,495.

Financial inclusion for small businesses – a possible solution

In all the hype about welfare initiatives for the bottom of the pyramid population, an important segment that often gets missed out is the small businessmen. According to the MSME ministry, there are around 26 million small enterprises in India, and only 5% of them have access to capital. Moreover, 94% of these are not even registered and have minimal records, making it even more difficult to establish income and expenditure tracking, required by the formal sector.

According to Tom Hyland, Co-Founder & Partner, Aspada Investment Advisors (an early stage risk capital fund for innovative businesses targeted at underserved communities), “The market for small business finance in India is significantly underserved by the formal sector, as often the only real source of capital is from an informal moneylender. Local banks often insist upon a significant security or/and collateral cover in addition to formal lending being a cumbersome, relationship driven process.” According to Tom, there is a dire need for lending models that provide much-needed working and growth capital to small businesses that would otherwise face difficulties in accessing funds and for which few alternatives exist beyond informal sources.

The effectiveness of this solution is that players working on financial inclusion will find it more lucrative, while masses will benefit from the trickle-down effect. Tom substantiates that, “Small merchants are the backbone of the Indian consumer economy, and improving access to credit for them is critical in order to sustain and improve the livelihoods of people (most of whom belong to the low income segment) that are employed in this sector, especially if credit tightens due to an economic slowdown in India.”

Some interesting work but lots remaining

Last year, YourStory covered the story of Kinara Capital, a young, nonbanking finance company (NBFC) that lends to micro and small businesses led by Hardika Shah. Kinara focuses on lending to those that are too big for microfinance but too small for commercial loans and reduces lending risk by acquiring reliable borrowers by plugging into existing supply chains, such as that of retail chain, Mother Earth. In the next five years, Kinara hopes to expand their portfolio to 20,000 loans, to create 100,000 new jobs, and to impact one million lives.

Another interesting player is Vistaar Finance, that targets the missing middle segment, consisting of customers with an annual income of Rs 120,000-1,000,000, which is not effectively served by the formal financial system. Vistaar has 2 primary lending products – Small Business Mortgage Loan of upto INR 20 Lakhs for upto 7 years and Small Business Hypothecation Loan of upto INR 60,000 for upto 2.5 years. They have a unique credit methodology wherein templates of cash-flow assessment are created by studying an overall sector, thereby by-passing the need for such statements for each borrower within that sector. These are then validated for individual borrowers by studying income, ability, intention, business sustainability & credit behaviour through non-traditional income documents & reference checks.

Learn more about the nuances of inclusive growth and find out the best ways to expand financial inclusion in India at FIPS 2013 – a global conference on Financial Inclusion & Payment Systems. FIPS is being organised at Eros, Hilton Hotel, New Delhi on 24-25 October. Connect with FIPS 2013, http://fips.eletsonline.com/2013/

Start Up Phases and Tips

“Entrepreneurs are able to walk the fine line between being focused yet agile, and visionary yet reactive,” the authors begin. “Knowledge alone isn’t power, it’s potential power. Knowledge combined with action is power,” they explain.

Starting up is a mix of art, science and business. It involves the steps of questioning, observing, hypothesising, experimenting and analysing – with lots of creativity and instinct thrown in between.

“You must become a scientist and look at your startup as a science experiment,” the authors advise. I have summarised the authors’ startup phases and tips in Table 1 below; each chapter explains them in more detail.

The book is packed (almost half of it) with illustrations but not all of them add value and the book could be much shorter; more industry examples for the principles would have been a good addition.

Table 1: Agile Startup Phases and Tips

Phase Insights
Understanding Agile Philosophy Have fun! Understand and align with your motivation. Grapple with reality. Be prepared for highs and lows. Understand the scientific method. Focus on problems and not just solutions. Listen to customers and don’t worry about embarrassing yourself. Launch to learn. Fail fast and often; beg for forgiveness rather than ask for permission. Understand and contain risk early.
Understanding Feasibility Repeatedly ask and examine whether customers will buy your product/service. Double your worst-case scenarios. Test mock-ups. Go beyond the idea to a product/service. Ask open-ended questions in surveys, not leading questions. Go beyond surveys to actual observations. Are you offering a cure, painkiller or vitamin? Think like a VC.
Customer and competitive strategies Ride the wave or create it. Understand the market and the customers’ pain points. Ask people “what sucks” about your product. Focus on core customer segments. Draw up a competitive matrix. Beware of fast followers.
Revenues and profits Draw up a comprehensive business model (eg. inventory, sales, contractors, office costs). Examine hybrid revenue models. Balance variable and fixed costs. Get the minimum viable product into the market fast. Calculate how much runway you have left. Monitor KPIs.
Marketing Get the positioning right. Go to press only when ready. Use different strategies for old and new markets. Sell wants, but deliver needs (“emotion + reason”). Address customer needs not just product features. Test messages. Leverage guerrilla tactics (eg. Red Bull’s stunts). Create and frame customer personas. Promise but overdeliver.
Team building Sign a ‘pre-nup’ with co-founders and partners. Find the right people, get them to the right positions. Align visions along the company’s evolution. Be prepared to move aside and let professional managers take over from founders in the scale stage. Design the vesting stages, amounts and periods carefully. Delegate but don’t abdicate. Form an advisory board.
The Startup Pitch Develop the tagline, one-liner, elevator pitch and full presentation. End the pitch with a call to action. Get used to rejections and learn from them. Strengthen the use-case scenario. Reiterate key takeaways. Stress the hot buttons. Fake it till you make it. Don’t dumb it down but aim for simplicity.
Investors Show traction, otherwise you are just a ‘wantrapreneur.’ Show your obsession with the company. Pick your investor based on portfolio match. Find the balance between money, power, control and lifestyle. Dialogue with serial entrepreneurs, startup experts and industry veterans. Chart key milestones. Use demos to pitch effectively. Fundraising alone is not a sign of success; valuation isn’t everything. Factor in long-term defensibility of the product with your team.
Building the business Nail it before you scale it: get the business model right. Jot your thoughts down to track key issues. Sharpen a sense of clarity and purpose. Manage meetings effectively. Be prepared for the worst, expect the unexpected. Be your own customer. Thing big, but also execute the smallest details. Design a short rallying mantra which is inspirational, aspirational, attainable. Evolve your metrics. Your network is your net worth. Leverage the underdog story, and a tangible enemy. Guard your reputation. Hire other rainmakers also. Be frugal but not cheap. Know when to quit, there is no shame in shutting down.

The authors identify five kinds of risks faced by entrepreneurs: product (will the technology work), market (will people buy it), financing (can you get off the ground and thrive), competition (are there fast followers/incumbents), execution (can you pull the whole thing off).

“The most important thing you should do as an entrepreneur is to turn assumptions into facts as quickly as possible,” the authors advise.

A solid customer-acquisition strategy is one of the most important aspects of the go-to-market plan. The value proposition must be 10X better than that of the competition, and a moat strategy will be needed to build sustainable competitive advantage (eg. via patents, secrets, speed, brand, cost advantage, regulations).

Marketing is one of the hardest things to get right in business, making it a common startup killer, the authors caution; marketing is as important as product development for a startup. “Luck is not a plan,” the authors add.

“Marketing that leads with emotion and justifies with reason delivers sales,” they explain. Customers buy with emotion, but also justify it with reason.

Entrepreneurs should factor in a range of parameters such as customer acquisition costs, customer switching costs, customer lifecycle value, length and cost of sales cycles, serviceable available market, and serviceable obtainable market.

In the entrepreneurial journey, it is important to get alignment with the team’s basic human needs: certainty, variety, significance, connection, growth and contribution. Startups offer employees a unique mix of flexibility, challenge, variety and the feeling of accomplishment.

“Investors are an indispensable part of the startup landscape, especially when it comes to technology companies,” the authors observe. Seed investments are usually less than $2 million; VCs typically want to own 20-40% of a company in exchange for a $2-10 million investment.

The authors also cut through the media hype about startups by explaining that almost 98% of startup work is monotonous and painstaking; there are many near-death moments; there is a strong sense of isolation; and there can be severe family pressures.
The average age of an entrepreneur is 39, and rather than physical age the most important success factor is emotional age and resourcefulness. Having sounding boards with mentors and other entrepreneurs is a big help.

“It’s not a startup until you build something, and it’s not a business until you sell something,” the authors conclude. “Building a successful business from scratch is nothing short of amazing. Start living your entrepreneurial dream,” they add.
It would be fitting to end this review with some of the useful inspirational quotes in the book:

Plans are useless, but planning is indispensable.” – Dwight Eisenhower
When you assume, you make an ass out of u and me.” – Oscar Wilde
Every business has two major functions: innovation and marketing.” – Peter Drucker
If I have seen further than others, it is by standing on the shoulders of giants.” – Isaac Newton
Simplicity is the ultimate sophistication.” – Leonardo da Vinci
Skate to where the puck is going to be.” – Wayne Gretzky
Fail fast, succeed sooner.” – David Kelly, CEO, Ideo

Startup business and technical founders, and developers who are eager to take their idea to “minimum valuable product(MVP)” and scale fast to build their next big thing.

John Taschek, VP of Strategy at Salesforce.com recently wrote, “Yes, after 5 years of being a big fan of cloud computing, I admit defeat. I am, as of today, changing my worldview.” Don’t get shocked, his next words were, “Cloud Computing is no longer the future. Cloud Computing is now an accepted reality – it’s the present – the market has tipped.”

That tech solutions today must be cloud-based, is a foregone conclusion. But how do you truly leverage cloud computing as a startup? After New York, Singapore, Hong Kong, Taiwan, Malaysia, Thailand, and the Philippines, YourStory is delighted to brin

g the global AWS Cloud Kata learning sessions to India. Kata (型 or 形 literally: “form”) refers to a series of choreographed patterns of movements used for teaching, through which successful techniques are mastered. And that’s exactly what the Cloud Kata sessions aim to do.mapos

Join the AWS team for a day of live discussions as well as business and technical mentoring on the latest cloud computing best practices. Geared specifically to growing startups and development teams, the Cloud Kata sessions will guide you through tips, customer testimonials and technical best practices to help you grow faster on the AWS Cloud.

Who should attend?

  • Startup business and technical founders, and developers who are eager to learn how to run lean and scale fast to build their next big thing.
  • Development teams, engineers, architects and system administrators from enterprises who are eager to learn how to deploy applications in highly available, scalable architectures.

Ten reasons to attend:

  1. Discover pro tips that help your startups as you go from idea to minimum viable product (MVP), to scale, and ultimately to profitability.
  2. See live demonstrations and learn more about services such as Amazon EC2, Relational Database Service (RDS), S3, CloudFront, and AWS Elastic Beanstalk.
  3. Leverage AWS reference architectures, SDK, and services to build your MVP quickly.
  4. Get hands-on guidance and coaching on how to build your MVP on the AWS Cloud.
  5. Gain insights on the six best practices for “cost aware architecting”.
  6. Explore smart ways to lower your costs by leveraging various AWS pricing models.
  7. Learn first-hand from India startups on how they succeeded with AWS.
  8. Find the best fit for your co-founder, your technical stack and services, and the right architecture for now and the future.
  9. Network with your peers and the AWS team.
  10. Bonus: Understand venture capital (VC), how it works, and how to pitch to VC’s to obtain the capital needed to grow your startup.

Where & when

  • Mumbai: 14th December, 2013. Venue: IIT, Powai
  • Delhi: 11th January, 2014. Venue: IIT, Delhi
  • Bangalore: 8th February, 2014. Venue: TBD

Broad agenda

  • Welcome address
  • AWS Training: Hands-on training and coding on the latest AWS services and APIs
  • Getting to Minimum Viable Product ‘MVP’ on AWS
  • Getting to scale on AWS
  • Getting to profitability on AWS
  • Technical Co-founder Handbook
  • Panel discussion: Venture Capital, Funding and Pitching with top VCs
  • VC break-out sessions: Share your business plans and get direct feedback.
  • AWS Coding Challenge:  Watch 20 developers compete head-to-head at the AWS Coding Challenge live.
  • Networking reception and snacks: Network with entrepreneurs, hackers and AWS members.

 

More details will follow shortly. But as seats are limited, apply for the free learning session right away!