Crossing the 10 crore chasm - Presentation by Dr. Ashok Korwar


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Crossing the 10 crore chasm - Presentation by Dr. Ashok Korwar at the EMERGEOUT Conclave

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Crossing the 10 crore chasm - Presentation by Dr. Ashok Korwar

  1. 1. Crossing the 10 Crore ChasmKrishnakumarNatarajan and Ashok KorwarAugust 2011<br />
  2. 2. Know our biases …Our view from the fish tank.<br />2<br />
  3. 3. KrishnakumarNatarajan<br />CEO, MindTree Ltd.<br />
  4. 4. Ashok Korwar<br />Independent management consultant based in Pune<br /><br />Professor at IIMA, 1990-2000<br />Strategic Advisor to Chairman of Polaris Software, 2000 – 2007<br />Division VP at EDS, Dallas<br />Ph.D. – UCLA<br />B. Tech, IIT Bombay<br />
  5. 5. Believe in nothing, no matter where you read it, or who said it, no matter if I said it, unless it agrees with your own reason and your own common sense. <br />Gautam Buddha<br />
  6. 6. Discontinuities…<br />Rs. 0 – 5 Crore: fledgling<br />Rs. 5 – 10 Crore: becoming viable<br />Rs. 10 – 100 Crore: growing<br />Rs. 100 – 1000 Crore: segment leader<br />Rs. 1000 Crore + : Global Force<br />
  7. 7. Growing a business is a matter of choice. Before deciding to grow, be sure you know why you’re doing it.<br />
  8. 8. What is Rs. 10 Crores?<br />When you visualize, <br />you materialize!<br />
  9. 9. So.. What is Rs. 10 Crore?<br />
  10. 10. Infosys started in 1981Rs. 5 Crore in 1990-91 and passed Rs. 10 Crore in 1992-93<br />Persistent started in 1990 Rs. 10 Crores in 1999-00 and Rs. 50 Crores in 2002-03<br />
  11. 11.
  12. 12. Visualize your business at Rs. 10 Crores<br />
  13. 13. Visualize your Rs. 10 Crore Business<br />
  14. 14. My business at Rs. 10 Crores<br />How many customers?<br />How many people?<br />How many sales execs?<br />
  15. 15. Small Companies have limited management bandwidth.<br />
  16. 16. Eliyahu M. Goldratt<br />Applying Goldratt’s Theory of Constraints<br /><br />
  17. 17. What determines your speed on the road?<br />
  18. 18. Every System..<br />Has one constraint<br />That chokes throughput<br />The ‘Bottleneck’<br />
  19. 19. What determines the strength of a chain?<br />
  20. 20. External Constraint?<br />The market?<br />Do you have 50% market share?<br />If not…<br />Internal Constraint?<br />Who will bell the cat?<br />
  21. 21. Constraints …<br />What prevents a bonsai tree from growing?<br />
  22. 22. Mental blinders we put on ourselves ...<br />But also the most common dominant constraint..<br />Policy Constraints ...<br />
  23. 23. Policies as Constraints..<br />.. I will hire only people from IIT ?<br />.. every project must earn 40% margin?<br />.. I can trust only Indians in the field?<br />.. I can’t pay more than..<br />…CEO must see every customer communication<br />…people must be kept busy all the time..<br />
  24. 24. Identifying Constraints..<br />Depends on the business model..<br />Use common-sense, it does not take statistical analysis!<br />Thought experiment: if throughput goes up by an order of magnitude (10x) where will my system break down first?<br />If I strengthen x-function, will throughput go up?<br />
  25. 25. What is holding you back? What’s your constraint?<br />
  26. 26. Identify your constraint<br />
  27. 27. How does it help..?<br />Ok, so I found the constraint..<br />
  28. 28. Constraint Is also Lever<br />
  29. 29. What should the CEO focus on?<br />
  30. 30. Goldratt’s 5 step process<br />Identify the constraint<br />Squeeze the most out of the constraint<br />Subordinate everything else to the constraint<br />Elevate the capability of the constraint<br />Go back to step 1!!<br />
  31. 31. The constraint for my business is:<br />
  32. 32. Win that first big deal ..<br />Systems and Processes will get aligned to win it, to execute it.. <br />
  33. 33. 33<br />The mountain does not give a damn about your resume.<br />Without hunger, both skill and experience will remain in the base camp.<br />There is nothing more dangerous than a moderate mountain.<br />Only an ultimate mountain can forge an ultimate team.<br />The only guidebook to your mountain is the one you will write.<br />The best plan is the one that works.<br />
  34. 34. The mountain will teach you what you need to know to climb it..<br />
  35. 35. Failure defeats losers, failure inspires winners. – Robert T. Kiyosaki, author, entrepreneur, investor <br />
  36. 36. Go for it!<br />
  37. 37. positioning<br />
  38. 38. Define the Battlefield.. To YOUR advantage<br />
  39. 39. A small company HAS to committo jumping across…<br />
  40. 40. Even for a platform product/service<br />Vertical is better than Horizontal for entry<br />Sun Workstations<br />Apple MacIntosh<br />LOTUSNOTES<br />Documentum<br />Start with one vertical and COMMIT to it..<br />OWN IT !!!<br />
  41. 41. Your elevator pitch: Framing is key.. <br />Serving the same need as.. (in some other industry)<br />Like.. Established Competitor, only better because..<br />Competitors are extremely useful for FRAMING!<br />
  42. 42. Home in on the<br />Market alternative: BPOs who are struggling to handle complexity<br />Product alternative: like XYZ, the market leader in workflow<br />Except that we are optimized for PPP pain area<br />And we have the entire package ready<br />
  43. 43. The Complete Package<br />CIO is Gatekeeper<br />Is important to CIOs<br />
  44. 44. What will he keep out?<br />Anything that disrupts his infrastructure<br />Needs work to make it work<br />Support may not be available<br />Risks stalling something else<br />
  45. 45. Don’t under-estimate..<br />
  46. 46. Example: Intuit<br />For the bill-paying member of the family<br />Who is tired of filling out the same old checks month after month<br />It is a home finance program on your PC<br />Unlike ‘managing your Money’ which is a financial analysis package<br />We are optimized for home bill-paying<br />(from Geoffrey Moore, Crossing the Chasm)<br />
  47. 47. My 30 second elevator pitch<br />