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1 Introduction to Software Products Industry and iSPIRT September, 2017
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Introduction to Software Products Industry & iSPIRT

Jan 21, 2018

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Page 1: Introduction to Software Products Industry & iSPIRT

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iSPIRT – Indian Software Product Industry Round Table is a non-profit think tank formed by leading practitioners of the industry

to assist in the cause of building a healthy, globally-competitive and sustainable industry. Visit www.ispirt.in for more details.

Introduction to Software Products Industry and iSPIRT

September, 2017

Page 2: Introduction to Software Products Industry & iSPIRT

Global Software Products Industry

$400Bn revenue Industry

Top 10 players are all US & European companies!

Employs 2.5M people

Source; PWC Global 100 Software Leaders 2016, Forbes Global 2000 list 2017

Page 3: Introduction to Software Products Industry & iSPIRT

Software is the foundation for new sectors and is transforming many industries

Software products are coming from different parts of the World

Software Sales is moving from an on-ground field sales force to Online Sales

All of software is moving to Cloud

Global Software Product Industry is Changing Software is “Eating the World”

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Page 4: Introduction to Software Products Industry & iSPIRT

Product and Platform Companies are Thriving Even GE wants to be called a software products company

Of the 13 US companies that have managed to outperform S&P for five years in a row, 7 are technology product companies

Page 5: Introduction to Software Products Industry & iSPIRT

Building Value on Top of Public GoodsSilicon Valley’s Secret!

GPS

Page 6: Introduction to Software Products Industry & iSPIRT

Should India not be creating product companies?Economic Leverage has moved away from Services

Almost as much profit as all global airlines

put together.

Profits are more than that of top 100

hospitals in the US

Earns more than top five European mobile

operators.

More profit than the combined profit of top 20 global IT Services

firms

Page 7: Introduction to Software Products Industry & iSPIRT

Service ProvidersDeliver a Specific Service : Retail, Banking, Hospitality, Healthcare Built on Layers belowMany Employees

ProductsProvide Tools & Software Applications: Marketing, Sales, HR, TaxEnablers. Deliver best-practices in a box.Modest number of Employees

Core PlatformsFundamental building blocks: Compute, Identity, Security, DataVery few in number. High impact on industry.Few Employees

Product Companies Don’t Exist in VacuumThe Hidden Pyramid Effect

Aggregator PlatformsProvide Common Services: Customer Acquisition, Discovery, PaymentsFew in number: Generate economies of scale. High use of Data, Few Employees

Page 8: Introduction to Software Products Industry & iSPIRT

India Can Still Catch the Product TrainIndia has an Opening and some Advantages in Products

Ecosystem of MNCs and IT services firmsPool of high-quality software product engineers who are now moving to startups

Innovation Arbitrage is kicking inProduct mindset is (finally) taking root

Indian market is opening upBig opportunity to solve Bharat’s problems using mobile as the front-end

Indian Core platforms are coming of ageThey are reducing friction/costs and are helping India become data rich

“Made in India” for Software === “Made in China” for Manufacturing

Page 9: Introduction to Software Products Industry & iSPIRT

Products

Aggregator Platforms

Core Platforms

New-Age Software Product Ecosystem in India todaySlow and Steady Growth

Page 10: Introduction to Software Products Industry & iSPIRT

Product Industry Health Check #1: Power-law of exitsM&A exits missing; if not addressed, will bring VC capital growth to a halt

Indian Startup Ecosystem has underperformed for Investors More M&As needed!

iSPIRT SignalHill M&A Report https://www.slideshare.net/ProductNation/india-technology-product-ma-industry-monitor-an-ispirt-signalhill-report

Jul 17 (AI)

Sep 16 (ML)

Sep 16 (FinTech)

Aug 16 (AdTech)

Dec 15 (SaaS)

Aug 15 (ImageTech)

Page 11: Introduction to Software Products Industry & iSPIRT

Product Industry Health Check #2: PlatformizationLarge product companies can’t emerge without platformization of products

Product Companies

Platforms

No Indian Platforms

Page 12: Introduction to Software Products Industry & iSPIRT

Products

Aggregator Platforms

Core Platforms

iSPIRT Mission: Making India a Software Product NationEngaging many parts of the ecosystem

iSPIRT helps promising product startups win

iSPIRT helps with platform thinking and encourages creation of core platforms

iSPIRT helps build societal and public platforms

Page 13: Introduction to Software Products Industry & iSPIRT

Societal PlatformsIndia Stack, DBT, GSTn, BBPS, ETC, Health Stack, Travel Stack, MUDRA and more

PlaybooksActive SaaS/ Bharat/Deep Tech

entrepreneurs, product pre-entrepreneurs and more

iSPIRT Work Falls in Four PillarsBuilding Public Goods without Public Money

Market CatalystsM&A Crunch, Financial Inclusion, Health Inclusion:

Banks, MNCs, SIs, VCs, Hospitals and more

PolicyStay-in-India Checklist, No Software Patents, National Policy for Sw Products, Software Diplomacy, Open API, Open Source and more

Page 14: Introduction to Software Products Industry & iSPIRT

Societal PlatformsFoundation for India’s product economy

1. Lock-in the value created2. Align stakeholders to valuation3. Act to increase platform dependence4. Are governed by “return” goals5. Focus on “consumption” experience6. Focus on competitive metrics7. Anxious about disruption as it can impact business

1. Distribute the value created2. Align stakeholders to inclusive impact3. Act to increase platform openness4. Are governed by “impact” goals5. Focus on citizen choice6. Focus on transparency metrics for accountability7. Embrace disruption to find new ways for societal impact

Private / Commercial Platforms

Public/Societal PlatformsNon-rivalrous and non-excludable

Page 15: Introduction to Software Products Industry & iSPIRT

Type 1: Laws and RulesPolicy MakersUS Social Security 1934Clean Air Act 1972

Type 3: With Tech SpinePolicy makers + Micro-economists + Platform-technologists10X lower transaction costs10X more reachSat-TV 1988-95Cashless India 2016Flow-based Lending 2017Health Inclusion 2018

Type 4: Data RichPolicy makers + Micro-economists + Platform-technologists + Data scientists10X more effectivenessBroken window policing 1985

Type 2: Market basedPolicy makers + Micro-economists Demand-drivenQuick AdoptionGI Bill 1944India Aspiration Fund 2015Udan 2016

Policy Leapfrog21st century policy making for India’s product innings

Informal → Formal:- Financial Inclusion- Healthcare Inclusion- Primary Education- Land titles- Dispute resolution

Page 16: Introduction to Software Products Industry & iSPIRT

Market CatalystsFostering collaboration with incumbents to address hard problems

M&A Crunch Financial Inclusion Health Inclusion

Page 17: Introduction to Software Products Industry & iSPIRT

PlaybooksHelping Software Product Entrepreneurs Win

13 Batches, 3 Chapters 5 Editions 50+ Sessions 100+ PlaybooksRTs

2 Editions 3 Edititions 4 Editions Coming !!!

Page 18: Introduction to Software Products Industry & iSPIRT

iSPIRT Volunteer Tribes and their DiversityWe are all Thinking Product Nation!

Playbooks

Thinking Product Nation!

For few select Startups(mostly gSaaS)

Startup Donors

Anti-Fragile

Seek Harmony

Quick Gratification

Volunteer

Culture

Thinking Product Nation!

Anti-Fragile

Seek Harmony

Delayed Gratification

For few select Startups(gSaaS, Deep Tech)

Startup DonorsCXOs

Market Catalysts

Thinking Product Nation!

Anti-Fragile

Deal with Contention

Delayed Gratification

For all Startups

Cause DonorsPolicy Makers

Policy

Thinking Product Nation!

Fragile

Deal with Contention

Delayed Gratification

For all Startups(mostly Bharat)

Cause Donors, CXOsPolicy Makers, VCs

Societal Platforms

Stake-

holders

Page 19: Introduction to Software Products Industry & iSPIRT

What makes iSPIRT Special?Volunteer-driven Social Production

iSPIRT is about Social Production

Volunteers selflessly pay-forward for a better India. We avoid mission capture

in any form.

➔ No public money (Linux, Wikipedia)➔ No MNC money➔ Every volunteer works only in areas where

they are conflict free

Page 20: Introduction to Software Products Industry & iSPIRT

Rewriting the Script of the Nation!Building Public Goods without Public Money

Shaping the country's narrative,

saving it from digital colonization

and changing how our product

entrepreneurs, banks (and other

large institutions), and even

government services operate.

REWRITING THE

ScriptOF A NATION

Page 21: Introduction to Software Products Industry & iSPIRT

India will Rise again!Our Two Faced Infrastructure

Fastest growing smartphone market

Largest # of open internet users

Aadhaar + India Stack = Universal digital platform

Poor Roads

Intermittent Power

Haphazard Urban Planning

Yet Leapfrogging...

Lagging...

Page 22: Introduction to Software Products Industry & iSPIRT

iSPIRT Foundation: a Think-and-Do TankMarket Maker, Ecosystem Builder, Mindset Shaper

30 yr Architects

10 yr Planners

5 yr Doers

• Think Tanks• Universities• Research Labs

• VCs• Policy Makers

• Learning Sessions, Roundtables, Workshops, Bootcamps, Cohorts• Product Teardowns, Early Solution Reviews, StartupConnects• Tiger Teams for Winning Implementations

Public goods

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