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1. Understanding
The [SMALL BIG] Opportunity
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2. Context
In this section we shall explore the current small business status market in Saudi
Arabia and the size of small businesses. We shall also define small businesses,
shade the lights on some of the things happening in the small business space
and show the opportunity of this space.
Definitions
Market
Status
C
The
Missing
Middle
Context
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3. C
How Small Businesses Are Defined?
Definitions

4. Defining Small Business in Saudi Arabia
Source:
Arab
–
EU
Event
Micro business are less than 10 employees.
Small enterprises as having less than 60 employees
with less than 5 million Saudi Riyals (1.3 million $) of
capital.
Medium-size enterprises as having less
than 100 employees and has capital
between 5 and 20 million SR (5.3
million $).
C

5. Other Criteria Used For Segmenting Businesses
C
Company Size Capital
Turnover Vertical

6. C
Some Facts / Numbers for KSA Market
Market Status

7. Small businesses as a percentage of total businesses
Source:
Research
Agency
C

8. 665k 205k 82k
Number of Small Businesses in KSA
Sole Traders
SOHO
SME
+90%
Of all business in KSA
are small business
Source:
Research
Agency

9. To Increase The Contribution Of SME’s …
Sources:
Zawya-­‐Thmoson
Reuters
report
4.5
Million
Are employed by SME’s
mostly foreigners
Investment in small and
medium enterprises in
Saudi Arabia is expected
to grow to more than
USD 70 billion
by the end of 2015
By government and banks
C

10. Who’s Missing?
Missing …
C

11. #OfFirms
Large
SME
Micro
High Income Countries
Low Income Countries
Who Are The Missing Middle?
The Missing Middle
C
Smoothing the line like
high income countries,
means a double digit
growth to the overall
GDP

12. “Small is the new BIG!”
C

13. Business
We shall re-define small businesses. Look at the 7 dimensions analytical framework
to look at small business will be shown. The basic needs and the un-articulated
needs will be explored.
Business
B
7
Dimension
Analysis
Redefining
Small
Businesses
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14. Analysis of Small / Medium Business Req.
The 7 Dimensions …
B

15. Macro-level Look at SME’s (The 7 Dimensions)
Usability
Forms
! Internationalization
! Saudization
! Globalization
! Business Environment / Policy
Capital
Access
Small
Business
Business
Development
Business
Enablement
Partnership
Networks
Customer
Intimacy
Reputation /
Credibility
Partnership
Conversion
Intellectual Property
Team
Products / Services
User Base
Revenue
Extra Dimensions
B

16. A New Look to Small Business
Redefining Small Businesses
B

17. Based on observation and interviews with at with 10’s of
small to medium businesses
B

18. THE
BABY
BUSINESS
Mama!
THE
ONLINE
Lets Meet Online!
THE
WALKING
DEAD
An old poem in a new world!
THE
LONELY
Alone, together!
THE
BIG
SMALL
I am the tough one!
The Five Archetypes of SME’s
B

19. Customer Touch-points
Technology Profile
Quote
Pain-points
Decisions
Target Market
Firmographics
Value Benefits
Geographical Footprint
Franchising Enabled
Low
High
Tech Awareness
Low
High
Tech Readiness
In-House
Outsource
Tech Resources
Owner
Committee
Decision Making
Slow
Fast
Decision Process
Value Network
Lo-Tech
Hi-Tech
Business Type
Cloud Ready
<1
>10
Years In Business
G M DS
We are trying to stay alive! and we need others for that!
BLC
Starting
Growing
Maturing
Declining
The Baby Business
Normally provide services for "
consumers. Unique ideas but lack of "
execution.
2-10 Employees. Barely having the
cash flow to make the business alive.
No materialized turn over.
- Survive and later scale!
- Establish a sustainable business
- Finding the market sweet-spot
- Getting customer access
- Showcasing the value / discovery
- Validating the business model
- Very limited resources
- Finding investors
- Normally they love partners with
pay-as-go service models
- Mostly try to stay self independent
and relay on SaaS providers like
Google, Amazon, DropBox, Etc.
- Try with go with the first partner
that works to prove the concept
- Personal credit
cards is used
- Normally relay on
cloud providers
like Google,
Amazon, Etc..
- SaaS software is
very common
- Online
communications
like Skype and
GoToMeeting GTM
B C
Business
Consumer
B

20. Customer Touch-points
Technology Profile
Quote
Pain-points
Decisions
Target Market
Firmographics
Value Benefits
Geographical Footprint
Franchising Enabled
Low
High
Tech Awareness
Low
High
Tech Readiness
In-House
Outsource
Tech Resources
Owner
Committee
Decision Making
Slow
Fast
Decision Process
Value Network
Lo-Tech
Hi-Tech
Business Type
Cloud Ready
<1
>10
Years In Business
G M DS
We are alone, together!
BLC
Starting
Growing
Maturing
Declining
The Lonely
Normally, in retail business but"
other variations are there. The "
business normally has a low or no marketing.
Normal turn over is between 200K and
1M. Employees between 30-100. With
multi-city silo’s and local warehouse
setting. Normally a sole trader.
- Revenue maximization
- Minimizing costs
- Customer penetration
- Having a sustainable flow of
customers, since these business
normally are one-off in terms of
customer service
- Customer intimacy
- Customer discovery is a pain-point,
as the business try to find the best
accessible places and hoping
customers will come!
- Maintaining a consistent cash-flow
- The move toward the digital age
For product variation, they relay on
existing market suppliers who take the
hassle of finding what is normally
cheap but reasonable quality products.
Some business go an secure suppliers
in manufacturing countries like China
or so.
- POS Credit / Debit
card machine are
typical, although
not always.
- If there is a POS
application,
normally an
outsourced one
with one OFFLINE
PC being the host,
and maintained by
that third party.
- Landline phones
B C
Business
Consumer
B

21. Customer Touch-points
Technology Profile
Quote
Pain-points
Decisions
Target Market
Firmographics
Value Benefits
Low
High
Tech Awareness
Low
High
Tech Readiness
In-House
Outsource
Tech Resources
Owner
Committee
Decision Making
Slow
Fast
Decision Process
Value Network
Lo-Tech
Hi-Tech
Business Type
Cloud Ready
<1
>10
Years In Business
G M DS
Start small, but be smart. Online is the new frontier.
BLC
Starting
Growing
Maturing
Declining
The Online
Cover multi-industries but mainly "
retail and consulting are the battle"
fields of these companies. Normally have minimal budget
for marketing (expect online ads) and relay more on
trust and relationships. Discovery of business online.
Yearly turn over 500K to 3M. Has
10-40 employees max, normally in one
city its located. Could be providing
service in near GCC countries.
- Revenue maximization
- Revenue optimization
- Customer penetration
- Market growth
- Awareness & Discovery by potential
customers
- Having a scalable business
- Visible reputation to the world
- Securing financial from customers
- Clear cost pricing models (by
performance)
- Could relay on external partners
from international countries and be
interface for them locally
- Mostly try to stay self independent
and relay on SaaS providers like
Google, Amazon, DropBox, Etc..
- Business credit
card is mostly
means for online
payments
- Normally relay on
cloud providers
like Google,
Amazon, Etc..
- SaaS software is
very common
- Online
communications
like Skype / GTM
B C
Business
Consumer
Geographical Footprint
Franchising Enabled
B

22. Customer Touch-points
Technology Profile
Quote
Pain-points
Decisions
Target Market
Firmographics
Value Benefits
Franchising Enabled
Low
High
Tech Awareness
Low
High
Tech Readiness
In-House
Outsource
Tech Resources
Owner
Committee
Decision Making
Slow
Fast
Decision Process
Value Network
Lo-Tech
Hi-Tech
Business Type
Cloud Ready
<1
>10
Years In Business
G M DS
I may be small, but I am strong enough to show the big
one what I am made off!
BLC
Starting
Growing
Maturing
Declining
The Big Small
Normally work in services /"
consulting if targeting business. "
Multiple chains will be available in the case of consumer
as customers. Reputable brand. Quality value
proposition. High steam business.
Yearly turn over 2M to 10M. Has
50-200 employees. May have different
branches within the MENA region.
Present in trade-fairs & exhibitions.
- Revenue maximization
- Revenue optimization
- Market growth
- Business operations optimization
- Long tendering process with the big
ones
- The move toward omni-channels
- Optimizing the customer experience
- Business efficiency & agility
- Internationalizing the brand
- Very good relations with the
business market due to reputation.
- Act as mini enterprise in terms of
business relationships with partners
- Work with design agencies for PR
- Selects partners based on their
brand perception
- Integration with
banks and
operators for
service fulfillment /
infrastructure is
most likely
- For data centers
may relay on local
ICT players
B C
Business
Consumer
Geographical Footprint
B

23. Customer Touch-points
Technology Profile
Quote
Pain-points
Decisions
Target Market
Firmographics
Value Benefits
Franchising Enabled
Low
High
Tech Awareness
Low
High
Tech Readiness
In-House
Outsource
Tech Resources
Owner
Committee
Decision Making
Slow
Fast
Decision Process
Value Network
Lo-Tech
Hi-Tech
Business Type
Cloud Ready
<1
>10
Years In Business
G M DS
We are an old poem in a new world! We need to
transform for this new world, anyone can help us?
BLC
Starting
Growing
Maturing
Declining
The Walking Dead
Normally targeting business with "
wholesale. But for some cases can be for "
consumer, like pharmacies. May have GCC business
opreations.
Yearly turn over 5M to 10M. Has
200-300 employees. High
bureaucracy. Family owned business.
Business is established long ago.
- Business / Brand renovation
- Revenue optimization
- The move toward the digital age
- Business efficiency & agility
- Regain market trust
- Market influencing stakeholders
with good connections with gov.
- Established business partners with
the same profile as walking deads
- Bank wire
transfers as the
main mean for
money
transferring.
- May try to throw
technology at the
problem with out
understanding its
real value that’s
for.
B C
Business
Consumer
Geographical Footprint
B

24. Mature
Immature
Intangible
Value Benefit
ICTapabilities
Tangible
THE
BABY
BIG
SMALL
THE
LONELY
WALKING
DEAD
THE
ONLINE
B

25. “No one cares how much you know, until they know how
much your care”
B

26. Innovation
To re-define the small business market, a new value proposition and a a new story
will need to be lay down for how do we see and foresee the business market. A look
at the opportunity in relation to our capabilities and a defining of a new
experiences tailored for the identified 5 business archetypes.
Innovation
I
Insights
www.EnterTheGrid.net
A New
Experience

27. Designing With Clear Vision In Mind
Insights …
I

28. “Insights shifts toward a new story , a new set of beliefs
that are more accurate, more comprehensive and more
useful”
I

29. Mature
Immature
Intangible
Value Benefit
ICTapabilities
Tangible
BIG
SMALL
THE
ONLINE
Trusted Partner
Market SweetSpot
Customer Access
Patient Capital
Discovery
Building Muscles
Value Network
Discovery
Clear Cut Costing
Visible Reput.
Scalability
Biz. Optimization
Going Global
Agility
Customer XP
Omni-Channeling
Cust. Intimacy
Being Digital
Discovery
Mobility Moving
Integration
Brand Renovation
Being Digital
Biz. Optimization
Agility
B
THE
BABY
THE
LONELY
WALKING
DEAD

30. I
Creating a Future Story
A New Experience

31. “The dark future can be avoided if you alter the past!”
I

32. I
http://youtu.be/quRPiMyRz9w
THE | GRID
Introduction

33. THE GRID!
I

34. Transforming the 5 Archetypes

35. Citizens of The Grid: 6 Types Of Citizens
I
Grid
Citizens
Traditionalist
Explorer International
Contender
Platform

36. The Baby: Future Evolution
I
Today
Tomorrow
Similarities
Differences
- The passion for the business idea
- The team
- Explorer what's new mindset
- Availability of resources
- Discoverable
- Known by lead customers
- Trialability sandboxes
- Ability to take calculated risks
Explorer
Business that is small enough to maneuver fast
and help in bringing new concepts and innovation
to the grid. They are also egger to be part of
something bigger and have a great team sprit
To Be
Transformed

37. The Orphan: Future Evolution
I
Similarities
Differences
- Maintain the tradition
- No big sizing
- No big changes
- Moving to the digital age smartly
- Natural customer interfaces
- Knowing the customers
- Easy integration
- Customer discovery
- The utilization of BYOD
-­‐
Traditionalist
Today
Tomorrow
It’s successful business that provides great
customer value while maintaining their tradition
To Be
Transformed

38. The Onlineho: Future Evolution
I
Similarities
Differences
- Clear costing
- Maintaining business integrity
- Build on online presence
- Better marketing & discovery
- Creating physical footprint
- Visible reputation
- Move to intention economy
- Efficient social presence
Today
Tomorrow
Contender
Business with an established brand name and
market specialty. Its do all its best to prove that
it’s the best in its class
To Be
Transformed

39. The Big Small: Future Evolution
I
Similarities
Differences
- Market expansion
- Build on same resources
- Finding new markets
- Omni-channel customer interfaces
- Building value networks
Today
Tomorrow
International
Mature and profitable business that is looking to
expand its geographical footprint to provide its
value propositions out side the kingdom
To Be
Transformed

40. The Walking Dead: Future Evolution
I
Similarities
Differences
- Physical business footprint
- Maintain brand name
- Moving to digital age
- Natural customer interfaces
- Move to intention economy
- Brand re-birth
- Building value networks
Today
Tomorrow
Platform
Business that needs help of others and provides
the space for other grid citizens to collaborate
with it to help it better expands and renews its
market position
To Be
Transformed

41. “The secret of disruptive innovations and business
models isn't about that they disrupt the industry; Its
about they disrupt the people. They change how they feel
about something, in a way that’s enough to change how
they behave”
I

42. THE GRID is the story of the future
I

43. “Back To The Future”
Future Scenarios
What You Already Know
Business Market
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