India as a Product Nation презентация

Содержание

Simplifying Terminology Software Products Telecom Services Software Services Restaurants Auto Ancillary Plant Telecom Equipment Online Content Taxi Services E-commerce Startups Defense Aerospace Tech Industry All Startups

Слайд 1
India as a Product Nation
The Next Google can come from India
June

2014

Слайд 2Simplifying Terminology




Software Products
Telecom Services
Software Services
Restaurants
Auto Ancillary
Plant
Telecom Equipment
Online
Content
Taxi
Services
E-commerce
Startups
Defense
Aerospace
Tech
Industry
All Startups
Tech Startups
Digital
Industry
Product Startups
Software Product Industry is

at the intersection of “Tech Startups” and “Product Companies”

Industry View

Entrepreneurship View

Слайд 3Important Characteristics of the Software Product Industry


SCALABILITY. Cost of production is

low and business scales rapidly once the product is established.



VALUATION. Markets value Product Companies far higher than others, due to the non-linear scalability and Intellectual Property














REGENERATING. One successful company spawns many more for service, support, distribution, etc. into a recursive growth



POTENTIAL. Innovation and new product development has endless potential, once mastered.




Слайд 4Software Product Industry
A brief Introduction to the industry. Establishes the power

of the industry and its potential for value creation.

1

Слайд 5What is the Software Product Industry?
* The Neti Neti (Not-this, not-this)

definition has been traditionally popular in India, in defining a concept as distinct from other known or established ones

Tailor who can make shirts

Ready-made shirts makers

SERVICE INDUSTRY

PRODUCT INDUSTRY

Software products are not IT Services*
IT services companies are like tailors who can either stitch custom suits or alter a standard design for the client.
Software product companies make readymade suits (mass production). People select the suit they like, try it for fit, and buy it on the spot.

Слайд 6Distinct Business Model
As distinct as the Airlines (people moving service) and

Aircraft (enabling Airlines) industry

SERVICE INDUSTRY

PRODUCT INDUSTRY

Слайд 7


Service Industry is built on other people’s Products
TCS
Global Services Company
Infosys
SAP
Oracle
Microsoft
Customers
(India & Aboard)
Global Customers
Impact:
Viability

and market success of products is mainly established by adoption by customers, particularly in Winner-take-all software product market

Слайд 8

Growing Service = Growing Product Adoption = Growing Value Creation.
Airtel
Verizon
Apple Samsung
Cisco
India
Customers
US Customers


Recent Example:
WhatsApp bought

by Facebook for $19 Billion
Over $40/user. Had substantial Indian user base.
Same price/user paid to Hotmail by Microsoft in 1997.

Слайд 9Trends indicate gradual, global shift from custom-made (expensive to build-own) to

mass-customized. Investments into products is accelerating world over. Brand creates value.

Слайд 10Branded Products capture value
Apple prints “Designed by Apple in California” on

the back of every iPod and iPhone it sells, sometimes in a ridiculously tiny font size

Foxconn the leading manufacturer of Apple* products gets $8 Per iPhone**. Apple, the owner of the design and Intellectual Property has $319 in operating margin per iPhone.

* http* http://www.technobuffalo.com/2014/03/28/foxconn-credits-apple-with-13-profit-bump-in-2013* http://www.technobuffalo.com/2014/03/28/foxconn-credits-apple-with-13-profit-bump-in-2013/
** ** http://www.slate.com/blogs/moneybox/2012/09/25/foxconn_getting_by_on_8_per_iphone.html

Слайд 11Why India needs The Software Products Industry
The Macro-economic argument
2

Слайд 13Innovation and Software Products are deeply Linked
in many ways
The fastest pace

of innovation happens in the tech world

Innovation leads to Intellectual Property (patents) and further leads to product development

Software Products are the quickest way to deploy innovation at scale

Слайд 14Software Product Startups > Entrepreneurship >> Competitiveness
Most new startups in India are

software product startups

Increased consumption of innovative technology at an affordable cost

They solve important problems of small enterprises and consumers

Other industries too becomes globally competitive and attain scale

Слайд 15Product imports are growing faster than Services exports




Growth in Indian IT

Services Exports to Slow Down** Nasscom. 2012





India electronics import bill could surpass oil* - senior advisor Govt. of India

* http://www.reuters.com/article/2011/11/13/india-wef-electronics-idUSL3E7MC08E20111113
** By John Ribeiro, IDG News Service. http://www.pcworld.com/article/249598/growth_in_indian_it_services_exports_to_slow_down_says_nasscom.html



Слайд 16Now, the need to play the Product innings
Natural Resources
Iron-ore, marble, etc.

(unfinished)
Leather, gems, etc.(semi-finished)
Body shopping (human)

Made-in India Services
Telecom (Airtel)
Airlines (Indigo)
SW Services (Infosys)
Hospitals (AIIMS)

Made-in-India Products
Defense
Aerospace
Electronics
Software Products

First innings

Second innings

NOW! Third innings




Need to build Higher-value Export Portfolio

Слайд 17Transforming India
Our Software Product Industry is solving India’s hardest problems
3

Слайд 18Productivity Gains = Transformative Potential
Software products offer solutions that can be

deployed in a distributed fashion to millions of small enterprises and consumers untouched by technology till today.

Слайд 19Example. Tally accounting software product has helped nearly a million SMBs

gain control on their finances and taxes

Made in India. Made for India

Слайд 20Software Products for Agriculture
Agriculture
Farmers can embrace new knowledge and information to

improve efficiency and speed in the agri supply chain

Слайд 21Education
Software Products for Education
Creation of innovative test-prep products and state-of-art teaching

to bring in learning effectiveness.

Слайд 22Healthcare
Software Products for Healthcare
Software based medical devices and personalized oncology treatment

is improving productivity manifold.

Слайд 23SPI will provide innovation blowback to the rest of the world.

Not just India for India.

Tremendous untapped potential to innovate exists in India

Слайд 24What creates a successful industry?
This section outlines some of the factors

that influence creation of a successful software products industry.

4

Слайд 25Lack of Productization. We are unable to create value out of our

successes. Examples.

We conducted the World’s largest successful election. Are we becoming the “Microsoft” of Polling machines?

Should we not be a global leader in identity implementation, apps and services with “Aadhaar”?

Слайд 26Why Indian Products are unable to gain advantage from large domestic opportunities

Слайд 27Can we tilt the balance? Creating level playing field.

Слайд 28Buying Services rather than products leads to inefficiencies
Cost of development is

far higher than cost of customization.

Maintenance and update cost would exceed cost of development.

Lost product opportunity.

Main issues:

Слайд 29Does the Government have a role in developing an Industry?
Government as

a Participant

Government as a Catalyst

Many examples are available where the government has set the agenda that was fulfilled by private enterprises

Слайд 30Software Product Markets = Winner-take-all.
* Branding, euphemistically
** Depiction borrowed from

Concept Green, LLC. Although the idea is very common.
http://www.conceptgreen.net/buzz/blog/hello-world-welcome-to-concept-greens-inaugural-blog

Opinion* Matters. Startups wielding less opinion-making power, lose out to established players despite good product

Слайд 31Government Could help. While the Private sector helps itself.
Industry think tanks and

organizations would create buyer awareness for “Made for India” products, Govt. should create platforms for apps through APIs.

Govt. should promote incubation centers under PPP-model to improve odds of success for startups.

Pool of Software products of importance

d

d

d

While the Industry promotes entrepreneurship and employment in startups as a good career option, the Govt. should draw focus of the best minds on critical problems through Challenge Grants.

d

Software Product Industry recognized as a National priority

Market Making, to create viable domestic opportunity

Make it easier for startups to climb the ladder

Strategic software technologies

d

Reward success

Слайд 32India’s ticket to becoming a Product Nation
Shift from Services to Products

is not easy

5

Слайд 33Why “Product Nation”
Based on the Story of Israel (called “Startup-Nation”) that

has become a power house of Technology product startups that gain global acceptance.

ISRAEL
Second largest in companies doing IPO on NASDAQ
Second highest number of tech acquisitions in the world

Слайд 34Software Products Industry can do what the Space Program did in

the 90’s

The train has not left the station and a small nudge for Software Products will deliver big wins for the country

Слайд 35The possibilities are astronomical
Indian SPI touches 3m small enterprises today. It

will touch 30m enterprises – small businesses, rural schools, primary healthcare centers, small farms, etc. - in 10 years
Creation of 1,00,000 Software Product Companies in India, leading to employment of 3.5 million technical people, and creation of $500+ billion in Market Value in 10 years

Слайд 36Brand India
Software services branded Indian talent
Software products will brand Indian innovation

across the world

GREAT ENGINEERS

GREAT IDEAS

Gradually change the branding (reflection in the minds of outsiders)

Слайд 37The Two-part Products Story The Current Theme
Gradually shift from Current theme “Made

In India” or “India Inside”

Global Brands

Software developed in India

Слайд 38The Two-part Products Story The New Theme
We are in the best position

to understand and meet the needs of India

Our innovation and scale can serve global market demands

To a new theme of “Made for India” + “Made from India”

Слайд 39Three fold controls The Software Product Industry could provide



The choice of

technologies that could provide the best outcomes, chosen through studied approach.

Focus on building user experiences that work best under local conditions (e.g. Mobile First approach).

Products made in India could address the current and pressing needs of the local market.

2.
Consumer Experience

1.
Customer Priorities

3. Technology Rollout

Слайд 40Enablers of the Transformation
Do we have the right enablers that are

needed for the emergence of Indian Software Product Industry in a big way

6

Слайд 414 Major Technology Enablers

Mobile
Smart phone that can run application and deliver services When and

where you want

Cloud
Pay-as-you-go inexpensive infrastructure. Scalable as needs grow

API
Flexible, safe and easy way to combine applications that use each other




Open Source
Free to use software that can be combined effectively into apps and platforms

Слайд 42Cloud makes Infrastructure Affordable and Accessible
“Public Cloud”
(Lease Rented Apartment)
Infrastructure from a service

provider.
Pay for use only, one machine at a time

“Private Cloud”
(Self-owned Apartment)
Your owned Infrastructure made easy to use
All paid upfront. Privacy means confidentiality

Comes in Two Flavors

Cloud Providers

Any Corporation

Any Government

Build and own your Cloud. Tools available

Слайд 43One device formula User Computing Device = Smart phones with Apps
India

is seeing a surge in Smart phones (one device for voice and computing needs) and could become the default user computing device to build “Made for India” apps

Smartphones Are PCs..

...only they're more personal...

...and do nearly everything better...

Headlines from the article on LifeHacker: http://lifehacker.com/5681573/your-smartphone-is-a-better-pc-than-your-pc-ever-was-or-will-Headlines from the article on LifeHacker: http://lifehacker.com/5681573/your-smartphone-is-a-better-pc-than-your-pc-ever-was-or-will-be

Слайд 44The Apps Economy: How it works.
Software Platform


API Management
Key technologies of Cloud (distribution),

API (secure, controlled access to platform), App

App Store
(Marketplace on Cloud)





Apps
(Paid or Free)









Developers

End Users

Choose Apps they need and install

Sell apps they make

Слайд 45The World is moving towards API
API* enables independent entities to build

software (products) that can link and work together with ease. Integrated applications or products is necessary for good user experience.

Core Banking Application with API access

Personal
Finance App

Tax Planning App

* Application Programming Interface (API) is fast moving to become a business concept than a technical one.

Слайд 46API Technology mature and now available
Many products and major apps
Provide API service
Advertising App
Games
Other

well-known API providers

Слайд 47Free and open-source software now powers every computing need
* The world

has realized that Open-source cannot compete on price alone


Certain critical areas of technology may need National initiatives to make open source software usable and practical

Слайд 48National Initiatives on Open-source Infrastructure: A Chinese Example
* People’s Republic of

Open Source: China Preps National Linux Distribution
The reference architecture is being defined by the Ministry of Industry and Information Technology’s The China Software and Integrated Chip Promotions Centre, or CSIP

* Some useful links on the subject: http://www.wired.com/2013/03/ubuntu-china/
Technical Evaluation Report. The Emergence of Open-Source Software in China [http://www.irrodl.org/index.php/irrodl/article/view/331/762Technical Evaluation Report. The Emergence of Open-Source Software in China [http://www.irrodl.org/index.php/irrodl/article/view/331/762]. Open Source in China http://www.slideshare.net/jaaronfarr/open-source-in-china-updated

Слайд 49Affordable Platforms that enable Product Innovation
Cloud Computing
Smart Phones & Apps
API-driven Development
Open-source

software

Reduce capital expenditure on hardware infrastructure
Subscription pricing affordable

Designed for building software that integrate with each other
Easy to build services that get widely adopted

Smart phones would be the future of user computing devise
Easy to build with small teams

Reduce capital expenditure on software infrastructure
Free, but needs work on making effective use

Слайд 50Thank you

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