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Agile, Digital, Global: Building Technology Organizations of Tomorrow, Pari Natarajan, CEO, Zinnov
The document discusses the rise of unicorn companies driven by agile, digital, and global trends, highlighting their prevalence in technology clusters worldwide. It examines the characteristics of unicorn founders, the dominant network orchestrator business model, and innovations in areas like healthcare and customer engagement. Additionally, it addresses the competitive threat these companies pose to large enterprises, emphasizing the need for established organizations to adopt agile and digital strategies.
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Agile, Digital, Global: Building Technology Organizations of Tomorrow, Pari Natarajan, CEO, Zinnov
- 1. Building Technology Organizationsof Tomorrow MARCH 2015 AGILE - DIGITAL - GLOBAL
- 2. Acceleration of agile,digital and global trends has resulted in the creation of unicorns Convergence of IOT, Deep Learning, Augmented Reality and Robotics OpenSource is mainstream across Hardware and Software The World is Truly Flat – Global Supply Chain, Market and Talent Digital technology is turning every company into a Software Company
- 3. Unicorns are largelyfound in technology clusters across the world.. Source: Wall Street Journal, Fortune Unicorn list Distribution of 104 Unicorns across the world 48% West Coast 9% East Coast 1% Sydney 5% Germany 1% UK Sweden 1% 2% Israel 1% Netherlands 8% Beijing region 6% Shanghai region 5% South Korea 2% 1% Hong Kong 2% Singapore 1% Vancouver 1% Ottawa 3% Utah Bangalore region
- 4. .. And over50% of unicorns founded post 2009 are in Asia Source: Wall Street Journal, Fortune Unicorn list 4% Germany 4% Israel 15% Beijing region 11% Shanghai region South Korea 7% 7% Singapore Bangalore region 37% West Coast 7% East Coast 7% Distribution of Unicorns founded after 2009
- 5. Founders continue tobe the CEO and are young, educated and often a serial entrepreneur Source: Wall Street Journal, Fortune Unicorn list 80% 52% 60% 7% Founders are still the CEOs of their startups Founders were aged between 20 - 30 when they started Unicorn founders are Serial Entrepreneurs Founders are college drop-outs Unicorn Founders
- 6. First generation immigrantsare founders of over 40% of the companies 41%Unicorns in USA were founded by Immigrants Source: Wall Street Journal, Fortune Unicorn list 33% 19% 14% Jyoti Bansal, Founder/CEO at AppDynamics Adam Neumann, Founder, WeWork INDIA ISRAEL CANADA 10% CHINA Apoorva Mehta, Founder/CEO at Instacart
- 7. Network Orchestrator isthe dominant business model among the unicorns Source: HBR business models 0 51% Network Orchestrators Create a network of peers in which the participants interact and share in the value creation 6% Service Providers Hire employees who provide services to customers or produce billable hours for which they charge 34% Technology Creators Develop and sell intellectual property such as software, analytics, pharmaceuticals, and biotechnology 9% Asset Builders Build, develop, and lease physical assets to make, market, distribute, and sell physical things
- 8. 92% They are ableto leverage Agile, Digital and Global trends to differentiate 49% 54% 69% 28% 77% 87% 46% 54% 85% 26% 72%AGILE DIGITAL GLOBAL Customer Targeting and Engagement Products and Services Workforce and Partner Collaboration Risk Analysis Scale: LowMediumHigh Source: Zinnov Analysis
- 9. Some of themare technology innovators.. 592 USD Mn Funds raised Fundamental innovation redefining healthcare 9 USD Bn Valuation so far Source: Wall Street Journal, Fortune Unicorn list, TechCrunch Simplified blood tests using a fingerstick rather than traditional venipuncture Combining virtual and real worlds Technology being built with a belief that computing can feel completely natural 15 USD Bn Valuation so far Data fusion platforms for making a better world Data Sciences and Machine Assisted Analytics, combined with human intervention
- 10. Others differentiate throughinnovative customer engagement and global expansion models “Provide our customers a memorable online shopping experience” THE UBER NETWORK • Each city is treated like a startup entity • Teams learn best practices from prior launches and have complete control and responsibility over a local launch • If there is an operational problem in one city, teams across cities are asked for a solution, best answer wins PEOPLE TEAM PER CITY 162k Active drivers on the platform 3 USD 800 Maximum order value for COD • A good marketing tool • Gain trust of buyers • No need of a credit card Source: Economic Times, Flipkart, Zinnov Analysis CASH ON DELIVERY Order Online Pay Receive Package 3%Processing Fee 60%Transactions through ‘COD’
- 11. Some extend theiroffering to include network creation 2.3 Mn 5.2 Mn WHAT IS DOING DIFFERENTLY? Market Share 2012 2014 50% Annual Increase in number of cameras sold since 2012 Crowd-sourcing their advertisements Customer endorsed promotion A video every minute is uploaded online by GoPro users Amplifying brand where its audience is present A community for video Source: Mashable, Contently, Zinnov Research Number of cameras sold
- 12. Unicorns are reinventingworkforce performance and engagement from first principles (1/2) Recruitment Employee Engagement Recruiter’s bonus is based on the number of people hired and on their duration of employment 1 Abolish the bell curve 2 Focus on frequency of behaviours Stretch Performance Focus on one area of improvement on a monthly basis 3 Result JAN, FEB MAR, APR High Employee Engagement score of 87% ‘Best US medium sized company to work for’ award Source: Atlassian, Management Exchange
- 13. Unicorns are reinventingworkforce performance and engagement from first principles (2/2) Pair programming for recruitment & software development NAVIGATOR DRIVER ONE MACHINE ZOHO University – Challenging conventional wisdom by recruiting college drop-outs PAIR PROGRAMMING BENEFITS Learning Faster Domain knowledge transfer Intense learning RECRUITHIRE DROPOUTS TRAIN Full-time recruits so far from ZOHO University300 18 Months of training program 110 USD monthly stipend during training Team building Lower training costs Quality Coding A B D X C X 1 2 A 1 X X X D X X X 1 C X X X 3 B 2 Source: Pivotal, Zinnov Research
- 14. Unicorns present athreat to large technology companies and enterprises Competition from non-traditional companies Top Talent leaving big companies for Startups Evolving customer expectations Digital disruption 20% of MNC R&D attrition in India is absorbed by startups Excellent customer experience and fast improving products and services Airbnb disrupting the hospitality industry Use of digital technologies across organizational workflows Source: Zinnov Analysis
- 15. Large organizations needto transform based on Agile, Digital and Global as their foundational pillars Encode Digital in DNA Increased investment in future technologies Optimize costs in legacy products and redirect savings into newer products Go Local for Global Markets 5 Key Levers 5 Key Levers Explore outwards for rich talent 1 2 3 4 5 Source: Zinnov Analysis
- 16.
Editor's Notes
- #6 (28% between 20-25 and 24% between 26-30 years)
- #11 http://platformed.info/uber-network-effects/
- #13 http://www.managementexchange.com/story/atlassians-big-experiment-performance-reviews http://blogs.atlassian.com/2010/03/atlassian_wins_a_hewitt_best_employer_2009_highly_commended/
- #14 http://pivotallabs.com/pair-programming-matrix/