feb 2013. it challenges in scaling a consumer internet business introduction to policybazaar...
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Feb 2013
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IT Challenges in scaling a consumer internet business
• Introduction to Policybazaar
• Challenges we faced in scaling
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Simple and relevant comparisons drive traffic
Term Quotes Health Quotes
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Aggregators promote, simpler, high utility products, which are otherwise barely distributed
Aggregators Retail Industry0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Type of business (Life 1st year only)
OtherMotorHealthTraditional + Other ULIPsLow Cost ULIPPure Term
5Source: IRDA annual report 2010-11; Motor Report 2011, Health Report 2011; Management estimates of Aggregator Business
Re
tail
Ind
ust
ry is
prim
aril
y T
rad
itio
na
l In
vest
me
nt
pro
du
cts
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Over 60% of online term is marketed by Aggregators
2009-10 2010-11 2011-12 2012-13 E0
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KotakRelianceICICIHDFCMetlifeFuture GenTata AIABharti AXAEdelweissBajajIndia FirstAvivaAegon Re-ligareAggregators
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No. of Policies
**Over 50% of the industry now offers term products online
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Auction based on Cost per click No Auction but merit based listing
Aggregator reduces cost of marketingeveryone pays the same, rather than an auction, where the highest bidder gets the position
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Lower Cost of Acquisition has lead toAcceptance by Insurance players
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Q2' 2008-09
Q3' 2008-09
Q4' 2008-09
Q1' 2009-10
Q2' 2009-10
Q3' 2009-10
Q4' 2009-10
Q1' 2010-11
Q2' 2010-11
Q3' 2010-11
Q4' 2010-11
Q1' 2011-12
Q2' 2011-12
Q3' 2011-12
Q4' 2011-12
0
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<25K$ 25-50K$ 50-100K$ >100K$No of partners
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Transactions grew rapidly
10
Q3'08-09
Q4'08-09
Q1'09-10
Q2' 09-10
Q3'09-10
Q4'09-10
Q1'10-11
Q2'10-11
Q3'10-11
Q4'10-11
Q1'11-12
Q2'11-12
Q3'11-12
Q4'11-12
Q1'12-13
Q2'12-13
Q3'12-12
Q4'12-13
0
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20000
25000
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35000
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No
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tran
sact
ions
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Aggregator Model: Costs decline rapidly with scale
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08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-200
5000
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Enquiries (K) Cost per transaction (Rs) Transactions (K)
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of
enq
uir
ies
(000
s)
No
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ns
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s)
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IT Challenges in scaling a consumer internet business
• Introduction to Policybazaar
• Challenges we faced in scaling
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Upgrading your team
• Team can only scale as much as its leader
• Some people will grow, some will not
• Camaraderie is good, but to a limit
• Specialists are necessary
• Product management function is critical
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Issues with scaling
• Drawing the vision – getting the team to imbibe it
• Bite the Bullet
• Hiring right– Leaders– Specialists– Diversity
• Patience – it takes time
• Overinvest in aligning to business
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Aligning to business
• Product Management to mirror business
• Regular meetings and Updates at BU level
• Scale the scope of IT
• Retain the agility in the process
• Business aligned v/s core
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IT as strategy
• Most consumer businesses are innovating
• Standardize and productize innovation
• Tech helps in productivity and error free
• Leadership position retention
• IT has the potential to lead…