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2016

Global enterprise applications market continues to grow rapidly with small and medium size businesses now adopting enterprise-class software along with large enterprises upgrading solutions for greater integration of business processes.

While enterprise suites from leading software vendors such as Oracle, SAP and Microsoft continue to dominate the large enterprise segment, many emerging players across the globe have successfully identified white spaces to address business needs, thereby, offering a significant addressable market opportunity.

Indian software products market is accelerating rapidly with presence of over ~300 Indian software products in this growing segment. It is incredible to see how well-designed software products with core functionalities and the right technology from vendors like Tally, Ramco, Employwise, Talisma, Freshdesk, Ramyam, Greytip etc are transforming the businesses, e.g., accounting has become so easy with just one such product, TALLY

In continuation to the earlier initiatives, NASSCOM, in partnership with Frost & Sullivan, has recently concluded another series of the initiative Product Excellence Matrix - Enterprise Software. Enterprise applications is the third in the horizontal segment category series post the successful completion of analytics and mobility segments. The in-depth survey analysis reveals some interesting highlights as outlined below:

  • ~250 products nominated and ~85 per cent of the total nominations were considered under the enterprise software assessment; based on the Frost & Sullivan assessment criteria
  • Customer management centric products (29 per cent) followed by ERP (23 per cent) exhibited the highest focus areas within the Enterprise Applications. The products ranged from integrated CRM suites to market and sales functional products
  • The other categories included Human capital management, Supply chain management, Business process and productivity management and Unified communication and collaboration
  • Over 70 per cent of the firms incorporated post 2010 indicating the rapid increase in entrepreneurship and focus on the segment
  • Almost one-third of the firms are already scaled up with employee base of > 100

An exhaustive assessment was undertaken and products were benchmarked separately across 4 grids - ERP Grid, CRM Grid, HCM Grid and SCM Grid. Growing interest amongst CMOs, CIOs and CEOs on ways to leverage social media, mobility and analytics to strengthen customer offerings and support sales teams has directly translated to CRM and CEM segments witnessing heightened focus and considerable success for Indian product vendors.

Although, very few Indian players are offering cross-vertical ERP solutions, a large number of verticalised integrated customer management offerings have been launched in the last few years. HCM, SCM offerings are characterised more by standalone point solutions developed to address niche end-user business concerns and challenges.

The report also features products across 2 more categories - Business process and productivity management (including a broad spectrum of functional software e.g., project management, planning tools, compliance, management software, productivity management, facilities management as well as products focused on integrated process management) along with Unified communication and collaboration.

The report titled Indian Enterprise Software Products - On accelerated growth path has been released at NPC Kolkata (18th July 2014). For further details and companies presented on each GRID, you can download a copy of this report from NASSCOM website (Link)

As a part of the NASSCOM Product Council initiative to highlight India’s ever growing role in the global products value chain, we have created the largest compendia of Indian product companies across industry segments (www.productsmade.in ) and have also facilitated the creation of a framework to present an in-depth analysis of each of the 9 outlined product segments.  We are delighted to put together the fourth installment of the Landscape analysis research papers titled “Indian Fin-tech Products – Innovation Driving Growth”. The objective of this study is to present a detailed overview of the Fin-tech software products landscape in India and discusses key business and technology trends, drivers, and enabling ecosystem for Fin-tech and its sub segments. The report also highlights and profiles cutting edge Fin-tech solutions and products developed by ~110 Indian companies. fintech1Key Report Findings-

  • Worldwide Fin-tech software market was valued at ~USD 32 billion in 2015 and is forecasted to reach to ~USD 45 billion by 2020, growing at a CAGR of ~7 per cent
  • The total Fin-tech software and services market from India is worth ~USD 8 billion and pegged to grow 1.7X by 2020
  • The Indian Fin-tech software product market generated revenues of USD ~1.2 billion in 2015, and is expected to double in size by 2020
  • Primary factors driving Indian firms to deploy Fintech products- streamlining day to day operations, driving revenue growth, increasing reach, process efficiency and improvement, empowering sales force, and managing risks and costs
  • With ~400 companies (including 200 startups), India is quickly emerging as a Fin-tech products hub out of which more than 30 per cent are mature firms with demand across regions
  • Payment processing (that include transaction gateways and platforms, Online/Mobile wallet, ATM & POS services, Remittance and Cash cards) account for 34% of Indian Fin-tech landscape, followed by 32% in Banking ( accounting and treasury management, core banking software, risk management, mobile banking) and 12% in Trading/public/private market
  • BFSI, ecommerce and retail verticals are leading the adoption of Fin-tech
  • Startups are mostly focusing around payment processing and trading solutions segment
  • Acceleration of funding in Indian Fin-tech products industry - ~ USD 420 million already invested in 2015. Key growth areas include- document management, trading platforms, financial analytics and payment processing.
  • Focus is shifting towards Fin-tech solutions for digital channels. Mobility and analytics technologies that Indian Fin-tech companies would leverage to help their customers grow revenues and enhance profitability

fintech2 To know more, download the FREE report from HERE

The first day of any large conference is usually marked by strict form, as people get acclimatized to the situation. At Menlo Park on Day 2, right at the start as participants moved about briskly and purposefully, it was evident that a certain degree of comfort and familiarity had set in, kid gloves were off and sleeves rolled up in a state of preparedness, awaiting the opportunity to be part of the deep-dives which were to follow. Mr. R Chandrasekhar, the President of NASSCOM delivered the opening remarks and touched briefly on the NASSCOM Product Conclave, a hotbed of new ideas and ventures that get unearthed every year. A toast of sorts, to the spirit of entrepreneurship. We moved on to the first panel discussion of the day, “Building a Great Enterprise Startup.” Moderated by Prem Taleja, Fabric, the other speakers were: Kamal Anand (Appcito), Joseph (VeloCould), Jon Baer (Threshold Ventures) & Animesh (VISA). Let’s look at individually on what they had to share. Kamal: His company Appcito offers cloud-native, software-as-a-service (SaaS) solution for web scale application delivery, that works across any cloud. Kamal himself takes much interest in developing and executing market entry and growth strategies, scaling businesses and attracting venture investments for new businesses ideas. He was very clear that customer focus ought to be upfront, agility being a mandatory clause, and yet at the same time it is important to say NO to remain focussed. Else, there will be pulls from multiple directions which will soon spiral things out of control. It’s important to take a step back and think from the investor’s perspective as well. What would be some of the things that he would like to hear in a pitch session before releasing Series A funding? Are we on track to get all those “things” in place and script the story in due course? A reflective outlook coupled with a vision, and backed by unbiased stock-taking of situations, will go a long way in attracting investments. Joseph: VeloCloud, a Cloud-delivered SD-WAN pioneer, simplifies branch WAN networking by automating deployment and improving performance over private, broadband Internet and LTE links for today’s increasingly distributed enterprises, as well as service providers. Yet again, the resolve to say NO at the right time without adversely impacting relationships, was strongly articulated by him. Business is a constant battle between immediate survival and building for future, at least in the initial years, and there may be instances where the two positons are at loggerheads. That is when, the temptation to give in to low hanging fruits is very strong. Once you give in, you’ve taken the first step towards diluting your core objective and end up as a me-too player without any significant value proposition. Temptations, as much in life as in the world of business, simply build on each other and get bigger and more difficult to resist with passage of time. Van: He has been both a venture capitalist, as well as the founder and CEO of two venture backed companies. As a principal and founder of Threshold Ventures, Jon works with companies around the world, serves as an advisor/mentor, works on specific projects and when appropriate, takes on interim operating roles. He has worked with a wide range of software, telephony, hardware and services businesses. As a “venture architect and builder” he helps new ventures draft and refine their business and move past each threshold to the next stage of business success. He stressed on the importance of knowing one’s market and taking into account this knowledge to build a successful organisation. Often founders are saddled with, if not actually overwhelmed by what they do not know. At such junctures, the need for validation and its significance can never be overemphasised. Animesh: He is presently working in the Global Operations and Infrastructure Division as Senior Director in the Visa Operations Command Centre, responsible for System Management Tools Support. They work with startups which are 2-3 years old. “The younger ones need to know how their products would work in other VISA enterprises in the ecosystem”, said Animesh, taking a cue from the validation remark which was made earlier. Three pointers for a bootstrapped company: The unique standpoint for them is that they have very little leeway, and have to strike it right the first time, and everytime thereafter. A gospel of sorts that has come to pass.
  • Make the first customer happy, after all they are the brand ambassadors. The very first. Someone once said, that making the first million is always the hardest.
  • Aquire customers through cost effective ways and figure out where is the real value add.
  • Identify your vertical, and the target users like Whatsapp did in markets outside of US. Scala is another example – even if early adopters were in India, the primary market was outside India.
On Validation in the US market – there is no tangible number, but scalability is an important factor at an optimal level of efficiency and price point, that will sell.  The other panels during the day were no less lively. What stood out in the “Transitioning to a valley startup” panel, were the reasons to come to the valley, and there were several: Being close to the customer, better business environment, larger customer base and equality. Silicon Valley is fair and gives an equal opportunity to everyone, irrespective of socio-economic and cultural imbalances. The cost arbitrage that India is known for was harped upon yet again: “entrepreneurs in India do have a cost and talent advantage.” It was rather heartening to note that “talent” was mentioned in the same breath as well. Clearly, the country was well on its way to secure prominent mindshare.  The India focussed VC Panel highlighted a few things:
  • VCs are generally more favourable towards companies which have global ambition
  • Need to have a vector defined and being adhered to, including checks and balances in place.While comparing Indian founders to others
  • The usual tendency is to focus on products alone and not paying enough heed to business plans. People underestimate the time that is required, to build credibility in a newer market. Things happen organically if the right plan is adhered to.
  • Keep market focus as the primary objective – What are you building and who are you building it for, really matters. It clearly resonated with what was said earlier.
The takeaways from the US-focussed Panel:
  • In a world which is interconnected, one also needs to have a focus on investors who are global. Typically, VCs look at shaking up (disrupt?) the economic model and improve on results many times over. Their ultimate aim of making “good” exists will fructify, if the RoI on total investments is at least 2-3 times.
  • The Valley puts primacy on IP, more than IT. VCs are known to change their stance accordingly based on the targeted market – be it Indian or global.
  • On diminishing valuations – A lot of healthy rationality has set in. This usually happens during every downturn, and afterwards for those who survived, and thrived. Clearly, this time there has been a shift from GMV to RV.
See you again, tomorrow with more insights.
The opening day of any global event is always filled with excitement and anticipation. That’s nothing new. What is unique, is the sheer palpability of the said range of emotions that inextricably accompanies its wake. Huge excitement paired with dollops of anticipation, which continue to soar like helium filled balloons. It was no different at Innotrek today, a NASSCOM 10K driven initiative which saw the best of minds in the tech entrepreneurial space congregate at the valley. Incidentally, this was the second edition of an event which in all likelihood will achieve an iconic status soon, given its intense fan following and popularity. It was to be the perfect stage for startups to connect with those who have achieved a significant degree of success, and are in a position to share insights.  After the spirited “Kickoff Briefing” very early in the morning by Ravi Gururaj, the NASSCOM Chair, Product Council and Rajat Tandon, Vice President NASSCOM 10K, the stage was set. Naeem Zafar, who introduces himself as “a citizen of the world” and is also the Founder CEO of an IoT company based in the Valley, had much to share which he encapsulated in his address, “Seven Steps to a Successful Startup.”Startups vs Large Businesses It was succinctly captured by the phrase “Search vs executing.” Typically characterized, startups are often in a search mode or rather should be in a search mode. Making assumptions too early that one knows, is really falling into the complacency trap. When do ideas happen? A pertinent enough ask at this juncture, which may best be addressed as: the point of intersection of the right trends with deep customer knowledge and being equipped with the right team /resources to be able to spot the shifts and changes in the industry, renders the search mode an evolutionary process.  Shifts, breakthroughs, crisis, inventions create opportunities for entrepreneurs, and that is where they are likely to score heavily because of agility and nimbleness. Large companies when in comparison, are too deeply entrenched in the job of execution. Having said that, corporate America is replete with examples when the elephant has been taught how to dance like the nimble-footed Fred Astaire. The Business Plan Founders are often tasked with the puzzling question, “what one does, what problem is being specifically addressed, and exactly how many people face this kind of problem?” Admittedly not in a single go, but nevertheless equally daunting if it were. Business Plan, put simply, is clarity of the mind that comes after extensive market research and talking to customers. The price paid, sacrifices made to startup are often immense, which make it imperative to remove all doubts to the niggling and recurrent question, “is this the right thing I want to do?” The Process of Starting Up It’s good to be constantly plagued by self-doubts, such as: Is it a great idea? Is it unique? If not, how does one work towards creating a niche? Look anywhere and me-too brands are all so prosaic, jostling for a wee bit of elbow room and bloodying the ocean in process. It is wiser to move away into the blue ocean and draw on competitive advantage. The Portrait of an Entrepreneur     Frequently repeated and it has now come to pass, but always worth the repeat till it gets firmly etched in the minds of entrepreneurs: Strong convictions but must be flexible in execution; ability to work in a fog, typically a VUCA environment; equipped with strong networking skills, ability to communicate and sell; and perhaps most importantly, the choice of (“life”) partner is crucial. Find a crack in the market and see why the need is unmet Unarguably, this really is the starting point and the depth in understanding this, will determine everything else. Market Size – defined by number of people who can buy Brilliant people come up with great solutions but it is important to take a step back and reflect in an unbiased manner, how many people are truly impacted by it. Positioning – How you appear to people with respect to price and service Price elasticity is a very important criteria that should be ably supported through unique service offerings to remain competitive. Price alone may sustain the business in the short run, but often it has been observed that in such cases entry barriers are remarkably low. For future standing, it is often the services offering that will prove to be the key differentiator. Alfredo Coppola – CEO, US Market Access He leads an accelerator, and has already assisted 9 companies based out of India. In his opinion, entrepreneurs world over, do have access to the resources they need – capital, training, people, mentoring, early adopters and markets. To put things in proper perspective: 504 companies have been through the USMAC program and $367m worth of capital was raised by 69 people out of USMAC’s alumni network. He also spoke passionately, why Silicon Valley is the first choice, and often remains unparalleled. To the first-timers in US, he had an important piece of advice: base it on learning; building networks; and gathering data for gaining entry into the US market and device a strategy in accordance. Geoff Baum talks about how to make a perfect pitch
  • Looking at the problem and putting it right upfront, and the solution thereafter. There ought to be no unnecessary time-lag.
  • Key - What’s the proprietary thing/ technology that brings in the niche element, and drives competitive advantage for the startup?
  • You don’t want to acquire customers at ANY COST. You DO want to acquire customers at LOW COST
  • Create a story and make customer the HERO. Yet again, the collaborative mind-set was highlighted.
Captured very briefly, these were some of the nuggets from Day 1. Watch this space for regular updates.