Enterprise Instant Messaging Market in India

iShare collaborate, share.. speak out

Instant Messaging stats EIM trends Current IM positioning Consumer profiling Segmentation Competition & Substitutes PoPs & PoDs Positioning Differentiation Marketing plan Launch Plan Monetization References & sources Table of Contents

Instant Messaging – Stats

Enterprise Instant Messaging – world trends The global market for enterprise instant messaging is forecast to grow from $267 million in 2005 to $688 million in 2010 -- Gartner concept of anywhere-anytime connectivity Come 2013, 95% of workers in leading global organizations will use IM solutions as their primary interface for real-time communications -- Gartner by the end of 2011 instant messaging will be the “de facto tool for voice, video and text chat” -- Gartner around 880 million mobile workers worldwide by 2009 -- IDC

Enterprise Instant Messaging – India trends Indian SMBs to spend $48.8m on Unified Communications in 2009 Cost reduction, increased efficiency – prime objectives for banks/NBFCs Top PSU banks spent 12382 crores on IT enablement and communications alone in 2009. Growth in Indian retail banking related to distribution channels IT spend at CAGR of 12% respectively from 2005 to 2010 -- Datamonitor Conferencing tools account for 80% of the total Indian SMB UC expenditure -- AMI

Players Enterprise IM Consumer IM

Current IM positioning established norms IM software used > as a messaging tool > for quick information gathering/checkup > for leisure talk/chit chat > not so secure, not used in transactions/discussion that require high security > as a feeble support tool > for building relationships > as a chat software

Current IM positioning established norms Increasing used as new trends > collaboration software > substitute for communication equipments > remote assistance and sharing enabler > location/presence indicator

Current IM positioning established norms transitions new trends > Status message to status symbol (status message or fads the IM a proxy for the user or users’ personality, image, video, te xt, URL, music as status message) > The race-to-be-omnipresent (surge of multiple accounts in numerous IM platforms)

Consumer Profiling Corporate users Field sales driven SMEs Knowledge Banking/NBFC workers organizations (small to medium sized) office staff (medium to big firms) Sales force of banks/NBFC, FMCG University distribution, auto etc Existing Users Potential Users students Insurance agents/firms Training institutes Healthcare practitioners (staff, teachers & students)

User requirements Existing Users Potential Users > simple Interface and fast processing > simple, easy to operate interface > simplified search > enhance web interface > role based access to features > vernacular language support > enhanced presence awareness > document sharing and encrypted file > better security transfer support > enhanced auditing features > “offline” mode of operation > multi-protocol support > map enabled, proximity search, > vernacular language support location based search > improved Web interface > “micromailing” facility > support for Mobile usage > support for publishing chat on blog, wiki, twiki etc > micromailing facility > recording facility (for voice/video > multi-login (different IM identities) chat/conference) support > multi-protocol support > recording facility (for voice/video > multi-login (different IM identities) chat/conference) support > alert configuration > compatible data formats for ERP feeds > Interoperatability with other EIM

Segmentation

Markets targeted by Major players IT spending

FMCG/Distribution Verticals Banks/NBFC/Insurance

Analyzing the segments

FMCG distribution n/w Challenges > sales force driven manual data collection process, hence prone to human error, data fudging etc. > High turnaround time, high inventories, high defect rate ( due to rough handling, storage etc) > Delay in responding to competitors’ promotion schemes. Opportunities > Constant communication with sales force @ low cost > Reduction in error, high data integrity > Streamline processing, faster response, integration with ERP

FMCG distribution n/w Challenges > Sparse branch network & bulk Banking/NBFC (retail lending assets Sales & recovery) > Dependence upon nodal officer > High turnaround time, loss of data integrity, data fudging etc > Slow processing, low customer satisfaction (due to slow processing) > Regulatory norms Opportunities > Real time communication with sales force @ low cost > Reduction in error, high data integrity > Streamline processing, faster response, integration with ERP

FMCG distribution n/w Challenges Banking/NBFC (retail assets > High costs, lower efficiency > High turnaround time, slow Sales & recovery) processing and high error rate Banking (retail operations) > Under utilization of existing IT assets (core banking, 100% computerized branch network) Opportunities > Reduction in cost, real time updates, increased collaboration > Reduction in error, high efficiency > Streamline processing, faster response > Compliant with regulations

FMCG distribution n/w Challenges Banking/NBFC (retail assets > Low budget, small setup Sales & recovery) > Require lean, agile and scalable solutions Banking (retail operations) > Requires fast response SMEs hence cannot have steep learning curve Opportunities > Low cost, customized solutions > Light weight, multi-platform supporting collaboration apps > simple, easy to use interface > Scalable apps

Competition & substitutes

Voice communication Advantages :Real time, easy to use, no Competition > learning curve involved >disadvantages: Costly, cannot support data transmission along with voice, prone to network outage SMS >Advantages: Short, fast, easy to use, cheap, vernacular language support >Disadvantages: Short, prone to network delays, cannot handle large updates, cannot carry data (files), no file transfer Multi-protocol supporting CIMs >Advantages: Free, interoperable (cross protocol support), multiple login support (meshup), log maintenance, emotions, voice/video support > Disadvantages : not designed for corporate usage, not integrated with address book/calendar

Competition Fax/Courier > Advantages :large chunk of data can be Substitutes transported, documents can be retailed, exact replica can be transferred >disadvantages: costly, prone to network errors, handling errors (courier), loss of data (courier), delays other IM substitutes( turbonotes, realpopup, winpopu p etc) >Advantages: Cheap, easy to operate, low learning curve, simple to operate >Disadvantages:minimal features, not secured, non scalable, not designed for corporate usage, cannot interoperate

iShare : Point of parity & Point of Differentiation

> text messaging POPs > Emotions >voice/video chat support >conferencing facility > org level search > integrated with address book & calendar > file transfer >remote assistance > presence awareness in form of status message > data logging (cleartext) >conferencing facility (text, voice) >cross protocol support >cross platform support

POPs > “Micromailing” > integration with maps (for location PODs based search, visual search, proximity search) > encrypted file transfer and share > advanced data logging (encrypted + clear text) > publishing capability > recording voice/video conferences/chat > ERP system compatible (data format) > tabbed windows (chat) > ‘follow a user’ feature > ‘blogdirect’ (microblogging) > Role based feature accessibility (Honoring RBAC) > operation in ‘offline mode’ (in absence of connectivity)

Prototype: iShare on Mobile

Positioning

iShare Retail Banking FMCG NBFC/Banks in “A simple, easy distribution retail asset sales to use “A cost effective, SMEs “A collaboration easy to use, real secure, spontane “A complete, one solution that stop solution for time update ous, data fulfill all the all provider which reporting and communication communication can be communication needs of a bank needs, which can integrated with solution for the in a be scaled up as workflows/ERP field sales force secure, efficient you grow” systems and nodal and cost upstream” offices.” effective manner”

differentiation

USP : 3S; Simple, Seamless & Spontaneous Simple Seamless Spontaneous > Simple interface > Multi protocol > Real-time updates support > Enhanced ‘presence > Cross platform > Video/Voice chat awareness modes support support (location + status + > Feature to publish > micromailing user generated data/text support content) voice/video chat transcript > application/file > Customizable interface > Web interface sharing support (theme based) > Mobile compatibility > encrypted file > ERP system transfer compatibility (data > enhanced search feeds)

Marketing plan

Who are the Buyers??

Real time Regional Cost updates, fast effective, compl head/national processing, easy to ete head of Bank solution, easy to use, customizable, use, scalable fast results Secure, fast, multiple platform support (laptop, mobile etc), Secure, multi- FMCG compliance with protocol, multi- govt. norms platform firms, distributor support, cost- s Regional effective, scalable head/national Owner/CIO of head of SMEs Bank/NBFC

Promotion

PR & Publicity sponsorship, participation, pro motion >distributors regional/national meets, new product/region launch, regional chapters of FMCG distributor associations >Region wise agents meet, banking conferences, industry level bodies etc >Bank officers meets, Industry summits, conferences etc >Barcamps, incubation centers, industry level meets, business award ceremonies etc

PR & Publicity print media, radio, TV etc > FMCG specific newsletters, business Conventional media magazines & periodicals, papers (Businessworld, BS, Businessline, ET etc) > Industry reports, Industry specific journals/periodicals, Industry best practices reports, articles in business dailies and periodicals , economist, WSJ etc > Tech/industry specific magazines (wired, E4U, Mckinsey quarterly etc), business periodicals and industry reports (new trends etc)

> Review articles in business PR & Publicity dailies, online ads, sponsored ads on highly trafficked industry specific Conventional media blogs, Linkedin, product evangelism New/Unconventional in industry specific forums, communities, Mass mailers media targeted at distributors etc > Guerilla marketing in high profile seminars, reviews/articles on industry specific top blogs/websites (CIOblog, CIOforum, indianbanker, FT. com, WSJ.com, economist blog etc), linkedin ads, sponsored blogging, review articles (on product) etc > Alliances/seminars at premier B- schools, universities, use of social media (twitter, FB, Linkedin corporate blogs etc), capturing the attention of ‘industry thought leaders’, product evangelism in online forums, yahoo/google groups etc

PR & Publicity > On distributor and firm level (selling to level 2 and level 3 mgmt) in business Conventional media networking sessions, conferences, regional meets New/Unconventional media etc Personal sales/promotion > High profile selling (in business networking sessions, conferences, business meetings, summits, talk shows etc > Business development at industry specific events, conferences, summits, incuba tion centers, business networking sessions etc

PR & Publicity > All India distributors association, FMCG firms, industry Conventional media bodies like FICCI, ASSOCHAM etc New/Unconventional media > Banking/NBFC associations, GRC Personal sales/promotion bodies, government welfare departments, international bodies Affiliations (who generally provide grants) etc > TiE, Indus ventures, barcamps, Techcamps, regi onal entrepreneurship clubs/associations etc

PR & Publicity > With mobile/broadband service providers, mobile Conventional media manufacturers, ERP solution providers (SAP) etc New/Unconventional media Personal sales/promotion > Banking solution providers (IT firms Affiliations such as SAP, Oracle, Infosys etc), workflow solutions providers Partnership & alliances etc > Firms like Google which provide online collaboration suite (under SaaS model), Incubation centers, Barcamps, B-schools, VC funds, regional entrepreneurship clubs/associations etc

Expense Heads 2010 2011 2012 2013 PR and Publicity 38,500,000 42,350,000 48,702,50 58,443,00 0 0 New/Unconventional 1,920,000 2,112,000 2,428,800 2,914,560 Media Conventional Media 7,700,000 9,740,500 11,688,600 8,470,000 Affiliation/Partnership 24,000,000 26,400,000 30,360,00 36,432,00 0 0 Business 17,000,000 18,700,000 21,505,00 25,806,00 Development 0 0 70,000,000 60,000,000 PR and Publicity 50,000,000 40,000,000 New/UnConve Marketing Budget 30,000,000 20,000,000 ntional Media Conventional Media 10,000,000 - Affiliation/Par 2010 2011 2012 2013 nership

New/Unconvention New/Unconvention al Media al Media PR and Publicity Online Ads, Mass Online Ads, Mass mailers etc 500,000 mailers etc 500,000 Event sponsorship 20,000,000 Sponsored Sponsored blogs, Partnering/promoting 1,500,000 blogs, reviews & 400,000 reviews & articles 400,000 conferences, industry articles Guerilla marketing/ads summits etc Guerilla marketing/ads in industry 120,000 Promotion of industry in industry 120,000 seminars/events level 17,000,000 seminars/events Product evangelism in initiatives, association Product evangelism in industry specific 900,000 development etc industry specific 900,000 forums Breakup of Marketing budget forums Conventional Affiliation/Partners Business Media hip Development Promotion in industry Affiliation fees Participation fees (for specific journals, 2,500,000 9,000,000 business 1,000,000 newsletters etc Partnership events/seminars/summi Promotion in print development 2,000,000 ts/industry summits media (business Dailies, 2,200,000 expenses etc) periodicals etc) Sponsored Co-promotion of Organizing articles/reviews/product 1,000,000 industry events, co- 10,000,000 conferences, events 6,000,000 comparisons in launch Misc. expenses in business periodicals, Ecosystem/alliance business development 10,000,000 industry reports etc development 3,000,000 Ads in ET, BS, WSJ, expenses economist 2,000,000

Launch Plan

Phased launch of features Phase 1 Phase 2 Phase 3 • integration with maps (for • “Micromailing” • enhanced security (increased location based search visual • advanced data logging number of security protocol search, proximity search)(on (encrypted + clear text) support) demand basis) • recording voice/video • ‘blogdirect’ (microblogging) • tabbed windows (chat) conferences/chat • Interoperatability with other IM • ERP system compatible (data • publishing capability solutions like skype, ICQ, AIM format) • ‘follow a user’ feature • RSS reader support • encrypted file transfer and share • Interoperatability with • broadened support for ERP data • Role based feature accessibility webex, Microsoft's OCS, lotus feed solutions (Honoring RBAC) SameTime • operation in ‘offline mode’ (in • enhanced support for ERP absence of connectivity) support (data feeding, data sync • Interoperatability with from notes/chat) GTalk, cisco unified collaboration suite, Jabber, Gaim etc

Where is the money?

5 ways to make money 1. Licensing Fee + value Add-ons 2. Support & Maintenance Fee 3. Upgrade integration/driver packages 4. Cross sell revenue 5. Bundling revenue (from alliance partners)

Licensing Fee Model Price Details/Feature Basic user licensing(user $16 Basic Features: text messaging, Emotions, Based) voice/video chat support, conferencing facility, org level search, integrated with address book & calendar, file transfer, remote assistance, presence awareness in form of status message, data logging (clear text), conferencing facility (text, voice), cross protocol support, cross platform support. Standard Server $250 No HA + load balancing, can handle up to 5000 release(Instance Based) users Enterprise Server $325 HA + load balancing, can handle up to 5000 release(Instance based) users

Value Add-ons Value Add-On(User based Price Features/Details licensing) FMCG/Distributor Add-on $12 ERP system compatible (data format) + Role based feature accessibility (Honoring RBAC) + operation in ‘offline mode’ (in absence of connectivity) NBFC/Banks (retail assets $12 tabbed windows (chat) + encrypted file transfer and sales/recovery) Add-on share + Role based feature accessibility (Honoring RBAC) + integration with maps (for location based search, visual search, proximity search)(on demand basis) + Interoperatability with GTalk, Cisco unified collaboration suite, Jabber, Gaim etc Retail Banking Add-on $12 tabbed windows (chat) + encrypted file transfer and share + integration with maps (for location based search, visual search, proximity search)(on demand basis) + ERP system compatible (data format) SME Add-on $12 tabbed windows (chat) + encrypted file transfer and share + operation in ‘offline mode’ (in absence of connectivity) + Interoperatability with GTalk, Cisco unified collaboration suite, Jabber, Gaim etc

Support & Maintenance Fee Package(per user Price Features/Details license) Standard package $10 12 months; 9X5 support, On Call/Chat/Mail based, L3/L2 support Enterprise package $30 12 months; 24X7 support; On Call/Chat/Mail/Remote assistance/On- site support, L3/L2/L1 support Upgrade integration/driver packages Upgrade, SPs and Description customization Upgrade/Service packs Free for intermediate/version upgrade, charged for major upgrade, SPs free Integration/customization or Varies on cases to case basis special support

Cross sell revenue > Benefits from cross sell of other products (Corporate blogging solutions for Knowledge Management, corporate/team blogs in enterprises), Corporate/SME domain registration > opening up of new avenues/businesses for other products (especially for web2.0 based or e-commerce based SMEs/businesses) Bundling revenue (from alliance partners) > Revenue from up sell and sales due to alliances > Partnership and bundling with other alliance partner products like SAP’s ERP solution for FMCG distribution/supply chain > Infosys/Intuit’s retail banking/core banking solution for banks etc

2010 2011 2012 2013 NBFC/Banks (retail assets 17.27 18.48 19.77 21.16 sales/recovery) SMEs 27.21 29.11 31.15 33.33 PSU/PPP banks 24.76 25.75 26.78 27.86 FMCG/Distributors 3.5 3.64 3.7856 3.937024 Total Revenue(in crore) 72.74 76.98 81.49 86.28 100.00 NBFC/Banks (retail Revenue distribution in 2010 90.00 assets 80.00 sales/recovery) 5% NBFC/Banks (retail 70.00 SMEs assets sales/recovery) 60.00 24% 34% SMEs 50.00 40.00 PSU/PPP banks 37% PSU/PPP banks 30.00 FMCG/Dsitributors 20.00 10.00 FMCG/Dsitributors 0.00 2010 2011 2012 2013 Monetization estimates

http://networkcomputing.in http://www.expresscomputeronline.com http://www.zdnetasia.com http://searchcio.techtarget.in Gartner.com IDC Dataquest Indiastat Datamonitor Images: images.google.com “Kotler” references & sources

Saurabh Dubey (g09033@astra.xlri.ac.in)

Enterprise Instant Messaging Market in India

by dsaurabh on Feb 28, 2010

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