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



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

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 Presentation Transcript

  • 1. Crossing the 10 Crore ChasmKrishnakumarNatarajan and Ashok KorwarAugust 2011
  • 2. Know our biases …Our view from the fish tank.
  • 3. KrishnakumarNatarajan
    CEO, MindTree Ltd.
  • 4. Ashok Korwar
    Independent management consultant based in Pune
    Professor at IIMA, 1990-2000
    Strategic Advisor to Chairman of Polaris Software, 2000 – 2007
    Division VP at EDS, Dallas
    Ph.D. – UCLA
    B. Tech, IIT Bombay
  • 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.
    Gautam Buddha
  • 6. Discontinuities…
    Rs. 0 – 5 Crore: fledgling
    Rs. 5 – 10 Crore: becoming viable
    Rs. 10 – 100 Crore: growing
    Rs. 100 – 1000 Crore: segment leader
    Rs. 1000 Crore + : Global Force
  • 7. Growing a business is a matter of choice. Before deciding to grow, be sure you know why you’re doing it.
  • 8. What is Rs. 10 Crores?
    When you visualize,
    you materialize!
  • 9. So.. What is Rs. 10 Crore?
  • 10. Infosys started in 1981Rs. 5 Crore in 1990-91 and passed Rs. 10 Crore in 1992-93
    Persistent started in 1990 Rs. 10 Crores in 1999-00 and Rs. 50 Crores in 2002-03
  • 11.
  • 12. Visualize your business at Rs. 10 Crores
  • 13. Visualize your Rs. 10 Crore Business
  • 14. My business at Rs. 10 Crores
    How many customers?
    How many people?
    How many sales execs?
  • 15. Small Companies have limited management bandwidth.
  • 16. Eliyahu M. Goldratt
    Applying Goldratt’s Theory of Constraints
  • 17. What determines your speed on the road?
  • 18. Every System..
    Has one constraint
    That chokes throughput
    The ‘Bottleneck’
  • 19. What determines the strength of a chain?
  • 20. External Constraint?
    The market?
    Do you have 50% market share?
    If not…
    Internal Constraint?
    Who will bell the cat?
  • 21. Constraints …
    What prevents a bonsai tree from growing?
  • 22. Mental blinders we put on ourselves ...
    But also the most common dominant constraint..
    Policy Constraints ...
  • 23. Policies as Constraints..
    .. I will hire only people from IIT ?
    .. every project must earn 40% margin?
    .. I can trust only Indians in the field?
    .. I can’t pay more than..
    …CEO must see every customer communication
    …people must be kept busy all the time..
  • 24. Identifying Constraints..
    Depends on the business model..
    Use common-sense, it does not take statistical analysis!
    Thought experiment: if throughput goes up by an order of magnitude (10x) where will my system break down first?
    If I strengthen x-function, will throughput go up?
  • 25. What is holding you back? What’s your constraint?
  • 26. Identify your constraint
  • 27. How does it help..?
    Ok, so I found the constraint..
  • 28. Constraint Is also Lever
  • 29. What should the CEO focus on?
  • 30. Goldratt’s 5 step process
    Identify the constraint
    Squeeze the most out of the constraint
    Subordinate everything else to the constraint
    Elevate the capability of the constraint
    Go back to step 1!!
  • 31. The constraint for my business is:
  • 32. Win that first big deal ..
    Systems and Processes will get aligned to win it, to execute it..
  • 33. 33
    The mountain does not give a damn about your resume.
    Without hunger, both skill and experience will remain in the base camp.
    There is nothing more dangerous than a moderate mountain.
    Only an ultimate mountain can forge an ultimate team.
    The only guidebook to your mountain is the one you will write.
    The best plan is the one that works.
  • 34. The mountain will teach you what you need to know to climb it..
  • 35. Failure defeats losers, failure inspires winners. – Robert T. Kiyosaki, author, entrepreneur, investor
  • 36. Go for it!
  • 37. positioning
  • 38. Define the Battlefield.. To YOUR advantage
  • 39. A small company HAS to committo jumping across…
  • 40. Even for a platform product/service
    Vertical is better than Horizontal for entry
    Sun Workstations
    Apple MacIntosh
    Start with one vertical and COMMIT to it..
    OWN IT !!!
  • 41. Your elevator pitch: Framing is key..
    Serving the same need as.. (in some other industry)
    Like.. Established Competitor, only better because..
    Competitors are extremely useful for FRAMING!
  • 42. Home in on the
    Market alternative: BPOs who are struggling to handle complexity
    Product alternative: like XYZ, the market leader in workflow
    Except that we are optimized for PPP pain area
    And we have the entire package ready
  • 43. The Complete Package
    CIO is Gatekeeper
    Is important to CIOs
  • 44. What will he keep out?
    Anything that disrupts his infrastructure
    Needs work to make it work
    Support may not be available
    Risks stalling something else
  • 45. Don’t under-estimate..
  • 46. Example: Intuit
    For the bill-paying member of the family
    Who is tired of filling out the same old checks month after month
    It is a home finance program on your PC
    Unlike ‘managing your Money’ which is a financial analysis package
    We are optimized for home bill-paying
    (from Geoffrey Moore, Crossing the Chasm)
  • 47. My 30 second elevator pitch