Ipma may28 2011_sanjay_tejas.18751408


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Ipma may28 2011_sanjay_tejas.18751408

  1. 1. Building a Innovation-driven “Product” Company in India Sanjay Nayak Co-founder, MD & CEO 1
  2. 2. About Tejas Networks• India’s largest innovation-driven, telecom product company – Founded in 2000; Headquartered in Bangalore – Optical networking: enabling Broadband & Wireless backhaul – Over 750 employees (> 450 in R&D)- offices in 7 countries• #1 Optical networking equipment in India; Top-10 globally – Cumulative revenues of US$500 Mn in last 3 years – Over 200,000 systems deployed in over 60 countries – OEM for multiple global equipment vendors from US, Europe and Japan Product Innovation Emerging Company of Award 2010 the Year CSIR Technology Award from Prime Minister Technology Fast -50 India Award for R&D & Award for Fast-500 Asia Product of the Year 2010 Innovation© Tejas Networks Ltd. Excellence in R&D 2
  3. 3. Constraint-driven Innovation: Opportunityfor India• Shifting market-power – “Emerging markets” are driving growth- represent “Bottom-of-pyramid” – Advanced markets, though large, are not growing as fast• High-tech business model needs to evolve for emerging markets – Old way • Latest technology for advanced markets, where customers pay premium • Once commoditized, the same technology offered to emerging markets – New way • Emerging market have different needs • A lot of innovation is needed for affordable, yet high-quality products• Opportunity for India – Countries like India/China can lead in “constraint-driven” innovation – Innovation leverage: 4X more R&D for the same cost – Large domestic market- ideal “sandbox” • Large market for electronic products- over $100 Bn per annum • Success can be replicated to other markets© Tejas Networks Ltd. 3
  4. 4. Example: Indian Telecom market• Fastest growing market in the world – Grown from 20 Mn mobile subscribers to 700 Mn subs in 10 years – Pent-up demand due to low broadband penetration: < 10 Mn subs• Lowest cost telecom services in the world – Lowest usage charges (< 1 c/minute) – ARPUs are less than US $2 per month• Telecom operators have built scalable, profitable businesses – Business model innovation: Managed capacity & Managed services – Going global- replicating the “India model” in Africa and other countries• Innovation opportunities for telecom equipment vendors – Provide cost-effective, high quality equipment – Harsh operating conditions- unreliable grid power, higher fiber cuts© Tejas Networks Ltd. 4
  5. 5. India- a success in ICT “services”• India employs over 2,30,000 professionals in ICT services – Indian univs produces 300,000 engineers annually – Exports US$60 Bn pa- forms 25% of India’s annual exports• Every major global ICT company has R&D center in India – Intel, Microsoft, Google, Cisco, HP, IBM, TI, Samsung, Nokia..• People of Indian origin have attained global success in ICT – Key founders in >15% of Silicon Valley start-ups – Over 25% of employees in Microsoft, Cisco, IBM ….yet, there are very few ICT products startups from India© Tejas Networks Ltd. 5
  6. 6. Why only a few Innovation-drivenIndian companies? • Cultural issues • Safe, low-risk culture prevalent amongst high-tech workers • Entrepreneurial challenges – Services mindset: low up-front investment, boot-strap model – Lack of success stories- no global brands in ICT products – Lack of early stage funding • Business challenges – Customers want best technology, high quality and low prices – Customers prefer “safe” options- competing against global players, who have a brand power – Lack of “branding” of Indian product companies – No/minimal government policy support for system companies© Tejas Networks Ltd. 6
  7. 7. Building globally competitive IndianProducts Create Successful Get global scale Products commercialization for sustained through R&D in India success • India has the critical ingredients- which are “force multipliers” – Abundant talent- technical as well managerial (+ expat Indians) – Sustainable R&D and Innovation leverage: 4X R&D for same costs – Large domestic market – Access to venture capital and public markets© Tejas Networks Ltd. 7
  8. 8. Entrepreneurial journey at Tejas • A grand vision, with well-defined “success-stones” Building the team; Developing the • Building the team with a “can-do”, positive attitude products • Listening to customer • Used Innovation (vs invention) to create differentiators • Use of latest in programmable logic devices and processor, to turn hardware problem into software Success with • Initial target Indian market- latest technology, highest customers quality, lowest prices in India • Unique processes to shorten time-to-market • Raising funds at the “right” time • Created a viable OEM business model- focus on R&D; Winning Leverage global OEMs for market access International business and • Gaining economies of scale scaling-up • Establishing the brand globally© Tejas Networks Ltd. 8
  9. 9. Summary• India is a great place to build global product companies• We have the 3Ms for success: Manpower, Market & Money• Every problem/challenge is an opportunity• Passion, Commitment & a Strong team are the key ingredients for success© Tejas Networks Ltd. 9
  10. 10. Thank You 10