1. Business Transformation
through Globalization
Leverage R&D centers for building products for growth markets
Vamsee Tirukkala
Co-Founder & Managing Principal
Zinnov
Disclaimer: This presentation is solely for the use of Conference attendees, Zinnov Clients and Zinnov personnel. No part of it may be
circulated, quoted, or reproduced for distribution outside the organization without prior written approval from Zinnov

2. Panelists
Twitter: #Confluence10
M
O
D
E
R
A
T
O M.R. Rangaswami
R Co-Founder-
Sand Hill Group
P
A
N
E
L
I
S Christian Verstraete Jeff Reed Randy Merry Troy Trenchard
T CTO - MDI Business, VP and GM- Clustered VP LIFENET SMART Group VP and GM ,
S Hewlett-Packard Storage Business, Services, Medtronics Security and
Symantec (Physio Control) Acceleration Group,
Citrix
1

3. In our benchmarking studies, we have found interesting
insights on emerging markets
Have unique Price –
Huge Diversity
Performance
amongst markets
Expectations
Unique problem Unique billings, sales
characteristics and services models
Require Easy to Use Feet on Street is
Solutions Essential
Often, Simpler needs
High Regulatory impact
and ULCS
2

4. There are number of products and services that have been
built for growth markets with unique characteristics (1/2)
Dual-SIM Phone Micro Transactions online in
China
Customer Pain Point Company
More than one SIM because Tencent holdings,
of low cost pre-paid schemes Tencent own online social
that have incoming free networks, IM etc
Company The Model
Spice Telecom – Leverage micro
India owned transactions of
Spice telecom ODM digital goods to
with India Based generate online
R&D Center revenues
Product Revenue Model
Dual SIM phone
Internet services (digital goods, games,
that allows dual
micro-transactions): $344 million (66%)
incoming and Mobile services: $110 million (21%)
outgoing using Online ads: $67 million (13%)
either SIM- now Total Revenues: $523 million
Nokia, Samsung Margin 40%, Avg. Margin for Global
and other offer it. Gaints-10-14%
3

5. Leaders with R&D centers in emerging countries are using
them as a launch pad for developing next generation
products
Texas
HP Instruments Microsoft
TI ‘s LoCosto ULC, the single- Microsoft Multi-point- Single
HP’s Gesture Keyboard: The chip platform targets the ULC Desktop screen multiple
Gesture Keyboard (GKB) is a handset market with mouse usage for educational
unique device for entering significant improvements in institutions that allows groups
phonetic scripts. GKB is a pen- voice clarity and battery life of students to work on one
based, low-cost device that and a range of advanced computer—at the same
can be used to input text in features including enhanced time—helping students
these languages. With GKB, an color display, FM stereo, MP3 everywhere to build essential
average user can achieve a ring tones, and MP3 playback learning skills such as
speed of 10 words per minute collaboration, teamwork, and
with just 2 hours of practice. computer familiarity
4

6. It is important to implement a few essential best practices
to enable global centers to build products for the growth
markets
Best Practices in leveraging the R&D
Center
Clear charter for the R&D
center management to build ROI criteria set differently due
products for the growth to longer gestation period
market
Involvement of emerging
market sales organization Product management/Product
architect assigned to the
project
High visibility to the projects Incubation done outside of the
within the organization business units to reduce initial
revenue pressure
5

7. Thank You
575 N. Pastoria Ave
Suite J
Sunnyvale, CA – 94085
Phone: +1-408-716-8432
21, Waterway Ave,
Suite 300
The Woodlands, TX – 77380
Phone: +1-281-362-2773
Vatika Business Centre,
2nd Floor, Block B,
info@zinnov.com 1st India Place, M.G Road,
Gurgaon-122002.
www.zinnov.com Phone: +91-124- 4028888
69 "Prathiba Complex", 4th 'A'
Cross, Koramangala Ind. Layout
5th Block, Koramangala
@zinnov Bangalore – 560095
Phone: +91-80-41127925/6
Zinnov 6

8. There are number of products and services that have been
built for growth markets with unique characteristics (2/2)
Delete/ Hidden Options on Rural Community Sales
Accounting Software Channel
Customer Requirement Company
Need for a accounting Hindustan Lever,
software that gives the option FMCG manufacturer,
to edit/delete accounts data subsidiary of
Unilever
Company The Model
Indian ISV with Project Shakti,
400,000 leveraging local
Tally customers in the village
small business entrepreneurs to
segment sell goods
Product Revenue Model
An accounting package that allows The recruitment of a Shakti
you to delete company files by going Entrepreneur is done the company
to the data sub directory. The representative with the village head
product also allows you to change .After training she is asked to put up Rs
entry mid way with out having to go 20,000 as investment which is used to
buy products for selling. The products
through the entire reconciliation
are then sold door-to-door or through
process petty shops at home.
7