Who We Spoke to?

Top IT decision-makers at well-known companies

• Adhunik Group• Apeejay Surrendra• Bangalore International Airport • Essar Group• BPCL• LG India• Mahindra & Mahindra • Reliance Life Insurance• Texmaco• Welspun Group

Start-up companies at various stages of evolution

• Barksteel Systems• Covacsis Technologies• Logistimo• MobileOne India• Moxtra• Rezopia• RsalesArm• Seclore• Unmetric• WittyParrot

We have interacted with 300+ product companies last year in the enterprise solution eco-system

EXAMPLES

What kinds of start-ups are we are seeing…

App Development & Deployment

Infrastructure solutions

Application Solutions

3%

15%

82%

Source : Helion analysis

..and are at an early stage of evolution in the enterprise start-up ecosystem

More than 6 years

4 to 6 years

2 to 4 years

1 to 2 years

Less than 1 Year

9%

6%

49%

27%

9%

Age of Company

More than 100 people

51 to 100 people

26 to 50 people

10 to 25 people

Less than 10 people

6.0%

15.2%

21.2%

27.3%

30.3%

Employees

As per Helion data, ~85% companies are in the seed to early stage

Enterprise IT buyer perspective…

1. Few enterprise functions are currently world class in terms of technology adoption

2. Customer facing functions and IT are likely to derive the maximum benefit from new solutions

3. Mobility and related activities top the enterprise agenda

4. Reliability and support are the key concerns in purchasing solutions from early stage businesses

5. Most IT leaders are willing to evaluate solutions from young businesses, but hesitant to buy

How IT Savvy are Business Units?

Other departments

Admin & Facilities management

Supply Chain

HR & People management

Marketing & Business Development

Sales

Finance

Planning

Service Delivery

Manufacturing

3.8%

4.7%

7.4%

9.1%

9.3%

9.4%

10.2%

11.5%

16.0%

16.4%

Note : Represents % of respondents who thought functions were world class

Which Departments Need Innovative Solutions?

Manufacturing

Other departments

Admin & Facilities management

Planning

Finance

Sales

HR & People management

Marketing & Business Development

Service Delivery

Supply Chain

Information Technology (IT)

63.2%

65.3%

72.0%

72.1%

73.6%

78.0%

78.8%

80.7%

81.6%

81.8%

89.7%

Note : Represents sum of most likely and somewhat likely responses

What Tech Trends are ITDMs watching?

Use of personal clouds by employees

Enterprise services delivered from public clouds

Social Technologies for the enterprise

Hybrid cloud solutions

Private cloud solutions

Enterprise Collaboration solutions

BYOD

Business Analytics & Big Data solutions

Enterprise Mobile Apps

Enterprise Security solutions

Virtualization technologies

Mobility & Mobile Solutions

53.0%

56.1%

57.0%

60.2%

69.8%

72.9%

73.2%

75.6%

77.5%

79.3%

80.9%

86.4%

Note : Represents sum of most likely and somewhat likely responses

How do ITDMs Select Solutions?

Customer references

Capital cost of solution

Compatibility with existing infrastructure

Support for latest technology trends

Compliance with standards

Lifetime cost of solution (TCO)

Upgradability & Scalability

Operational cost of solution

Technical specifications

Quality, reliability & performance

Vendor support

Features and functionality

41.4%

51.1%

55.1%

55.6%

56.7%

58.4%

63.3%

64.4%

65.6%

74.4%

76.7%

77.8%

Note : Represents most important reasons only

Will ITDMs Give a Start-up a Chance?

Invest in a full implementation of the solution

Invest in limited implementation of the solution

Conduct an evaluation or review

Implement a POC or trial implementation

See a demo

13.6%

26.1%

60.7%

63.6%

65.2%

Note : Represents very likely responses only

CEOs creating enterprise solutions say….

1. There are elements of ‘India advantage’ in the cost of development, implementation and support

2. North America is frequently the primary target market

3. Customer-facing functions have the biggest need, and see their solutions adding most value there

4. Sales and product management are the most critical areas for success

5. Access to “right people” and low risk appetite among enterprises are big hurdles

The India Advantage for Enterprise Solutions

Ease of funding in India

Infrastructure support in India

Size of market in India

Similarity with other global markets

Types of problems in India

Previous relationships with prospective buyers

Complexity of problems in India

Cost of inside sales

Ease of pilot testing

Scale or size of problems in India

Availability of technical skills in India

Cost of solution implementation

Cost of solution development

Cost & ease of providing support

12.2%

30.3%

45.5%

51.5%

54.5%

60.6%

60.6%

63.6%

63.6%

63.7%

72.8%

72.8%

78.8%

84.9%

Note : Represents high and medium advantages

Target Markets for Enterprise Solution Start-Ups

SAARC

Africa

South America

Australia

Middle-East

West Europe

APAC

Global

India

North America

9.10%

9.10%

12.10%

12.10%

18.20%

21.20%

24.20%

39.40%

60.60%

72.70%

Which Business Units Will Benefit from the Enterprise Solutions?

Other

Manufacturing

Administration & Facilities Management

Finance & Accounting

Corporate Planning

Supply Chain (procurement, distribution)

HR & People management

Service Delivery

IT

Sales

Marketing & Business Development

12.10%

12.10%

18.20%

24.20%

24.20%

33.30%

33.30%

45.40%

45.50%

51.50%

66.70%

Note : Represents high benefit departments only

The Most Important Skills for a Start-Up

Customer service

Delivery & Implementation

Engineering management

Marketing

Product management

Selling abilities

2.6

2.7

2.9

3.3

4.2

5.2

On a scale of 1 to 6, where 6 = Highest

Hurdles in Selling to an Enterprise?

Identifying prospective customer organizations

Regulatory issues

Commercial terms or licensing models

Limitations of existing corporate infrastructure

Existing corporate policies

Cost/difficulty of conducting POC/trial implementations

Getting an opportunity to demonstrate the solution

Lack of track record or customer references

User mindsets or existing work processes

Low risk-taking nature of CIOs

Reaching the right people within an organization

Decision-making hierarchy in organizations

3.00%

6.10%

9.10%

15.20%

24.20%

30.30%

30.30%

33.30%

45.50%

51.50%

54.50%

69.70%

Note : Represents high priority issues only

Questions for discussion…

1. Is there any ‘India advantage’ in creating product companies from India? If so, where does it lie and how strong is it? Does it make any specific classes of companies more attractive?

2. Most companies end up targeting the US. Should start-ups focus on the western markets right from the get go? Can one build a scalable software company focused on India or emerging markets?

3. What needs to change in the investor approach to enterprise product companies?

4. World class enterprise products (competitive with the best globally) coming out of India are still in low supply. Do you agree? Why? What can be done to change this?

5. Is feet on the street dead? What are the sales models working now?

6. Where should the core of the company be in case US is the primary market – should the founder(s) move to the US? Are there any other functions that need to reside in the US?