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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
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
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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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
Building Value on Top of Public GoodsSilicon Valley’s Secret!
GPS
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
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
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
Products
Aggregator Platforms
Core Platforms
New-Age Software Product Ecosystem in India todaySlow and Steady Growth
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)
Product Industry Health Check #2: PlatformizationLarge product companies can’t emerge without platformization of products
Product Companies
Platforms
No Indian Platforms
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
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
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
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
Market CatalystsFostering collaboration with incumbents to address hard problems
M&A Crunch Financial Inclusion Health Inclusion
PlaybooksHelping Software Product Entrepreneurs Win
13 Batches, 3 Chapters 5 Editions 50+ Sessions 100+ PlaybooksRTs
2 Editions 3 Edititions 4 Editions Coming !!!
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
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
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
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...
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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Thank You
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