A detail case study on EIM market in India

1. iShare
collaborate, share..
speak out

2. Instant Messaging stats
EIM trends
Current IM positioning
Consumer profiling
Segmentation
Competition & Substitutes
PoPs & PoDs
Positioning
Differentiation
Marketing plan
Launch Plan
Monetization
References & sources
Table of Contents

3. Instant Messaging – Stats

4. Enterprise Instant Messaging – world trends
The global market for enterprise instant messaging is forecast to grow from $267
million in 2005 to $688 million in 2010 -- Gartner
concept of anywhere-anytime connectivity
Come 2013, 95% of workers in leading global organizations will use IM
solutions as their primary interface for real-time communications -- Gartner
by the end of 2011 instant messaging will be the “de facto tool for voice, video and
text chat” -- Gartner
around 880 million mobile workers worldwide by 2009 -- IDC

5. Enterprise Instant Messaging – India trends
Indian SMBs to spend $48.8m on Unified Communications in 2009
Cost reduction, increased efficiency – prime objectives for banks/NBFCs
Top PSU banks spent 12382 crores on IT enablement and communications
alone in 2009.
Growth in Indian retail banking related to distribution channels IT spend at CAGR of
12% respectively from 2005 to 2010 -- Datamonitor
Conferencing tools account for 80% of the total Indian SMB UC
expenditure -- AMI

6. Players
Enterprise IM Consumer IM

7. Current IM positioning
established norms IM software used
> as a messaging tool
> for quick information
gathering/checkup
> for leisure talk/chit chat
> not so secure, not used in
transactions/discussion that
require high security
> as a feeble support tool
> for building relationships
> as a chat software

8. Current IM positioning
established norms Increasing used as
new trends > collaboration software
> substitute for communication
equipments
> remote assistance and
sharing enabler
> location/presence indicator

9. Current IM positioning
established norms transitions
new trends > Status message to status
symbol (status message or
fads the IM a proxy for the user
or users’
personality, image, video, te
xt, URL, music as status
message)
> The race-to-be-omnipresent
(surge of multiple accounts
in numerous IM platforms)

10. Consumer Profiling
Corporate users Field sales driven SMEs
Knowledge Banking/NBFC
workers organizations (small to
medium sized)
office staff (medium
to big firms) Sales force of
banks/NBFC, FMCG
University distribution, auto etc
Existing Users Potential Users
students Insurance
agents/firms
Training institutes Healthcare practitioners
(staff, teachers &
students)

11. User requirements
Existing Users Potential Users
> simple Interface and fast processing > simple, easy to operate interface
> simplified search > enhance web interface
> role based access to features > vernacular language support
> enhanced presence awareness > document sharing and encrypted file
> better security transfer support
> enhanced auditing features > “offline” mode of operation
> multi-protocol support > map enabled, proximity search,
> vernacular language support location based search
> improved Web interface > “micromailing” facility
> support for Mobile usage > support for publishing chat on blog,
wiki, twiki etc
> micromailing facility > recording facility (for voice/video
> multi-login (different IM identities) chat/conference)
support > multi-protocol support
> recording facility (for voice/video > multi-login (different IM identities)
chat/conference) support
> alert configuration > compatible data formats for ERP feeds
> Interoperatability with other EIM

12. Segmentation

13. Markets targeted by
Major players
IT spending

14. FMCG/Distribution
Verticals Banks/NBFC/Insurance

15. Analyzing the segments

16. FMCG distribution n/w Challenges
> sales force driven manual data
collection process, hence prone
to human error, data fudging etc.
> High turnaround time, high
inventories, high defect rate ( due
to rough handling, storage etc)
> Delay in responding to
competitors’ promotion schemes.
Opportunities
> Constant communication with sales
force @ low cost
> Reduction in error, high data
integrity
> Streamline processing, faster
response, integration with ERP

17. FMCG distribution n/w Challenges
> Sparse branch network & bulk
Banking/NBFC (retail lending
assets Sales & recovery) > Dependence upon nodal officer
> High turnaround time, loss of
data integrity, data fudging etc
> Slow processing, low customer
satisfaction (due to slow
processing)
> Regulatory norms
Opportunities
> Real time communication with
sales force @ low cost
> Reduction in error, high data
integrity
> Streamline processing, faster
response, integration with ERP

18. FMCG distribution n/w Challenges
Banking/NBFC (retail assets > High costs, lower efficiency
> High turnaround time, slow
Sales & recovery) processing and high error rate
Banking (retail operations) > Under utilization of existing IT
assets (core banking, 100%
computerized branch network)
Opportunities
> Reduction in cost, real time
updates, increased
collaboration
> Reduction in error, high
efficiency
> Streamline processing, faster
response
> Compliant with regulations

19. FMCG distribution n/w Challenges
Banking/NBFC (retail assets > Low budget, small setup
Sales & recovery) > Require lean, agile and
scalable solutions
Banking (retail operations) > Requires fast response
SMEs hence cannot have steep
learning curve
Opportunities
> Low cost, customized
solutions
> Light weight, multi-platform
supporting collaboration
apps
> simple, easy to use interface
> Scalable apps

20. Competition & substitutes

21. Voice communication
Advantages :Real time, easy to use, no
Competition >
learning curve involved
>disadvantages: Costly, cannot support data
transmission along with voice, prone to
network outage
SMS
>Advantages: Short, fast, easy to
use, cheap, vernacular language support
>Disadvantages: Short, prone to network
delays, cannot handle large
updates, cannot carry data (files), no file
transfer
Multi-protocol supporting CIMs
>Advantages: Free, interoperable (cross
protocol support), multiple login support
(meshup), log
maintenance, emotions, voice/video
support
> Disadvantages : not designed for corporate
usage, not integrated with address
book/calendar

22. Competition Fax/Courier
> Advantages :large chunk of data can be
Substitutes transported, documents can be
retailed, exact replica can be transferred
>disadvantages: costly, prone to network
errors, handling errors (courier), loss of
data (courier), delays
other IM substitutes(
turbonotes, realpopup, winpopu
p etc)
>Advantages: Cheap, easy to operate, low
learning curve, simple to operate
>Disadvantages:minimal features, not
secured, non scalable, not designed for
corporate usage, cannot interoperate

23. iShare :
Point of parity &
Point of
Differentiation

24. > text messaging
POPs
> Emotions
>voice/video chat support
>conferencing facility
> org level search
> integrated with address book &
calendar
> file transfer
>remote assistance
> presence awareness in form of
status message
> data logging (cleartext)
>conferencing facility (text, voice)
>cross protocol support
>cross platform support

25. POPs > “Micromailing”
> integration with maps (for location
PODs based search, visual
search, proximity search)
> encrypted file transfer and share
> advanced data logging (encrypted +
clear text)
> publishing capability
> recording voice/video
conferences/chat
> ERP system compatible (data format)
> tabbed windows (chat)
> ‘follow a user’ feature
> ‘blogdirect’ (microblogging)
> Role based feature accessibility
(Honoring RBAC)
> operation in ‘offline mode’ (in
absence of connectivity)

26. Prototype: iShare on Mobile

27. Positioning

28. iShare
Retail Banking
FMCG NBFC/Banks in “A simple, easy
distribution retail asset sales to use
“A cost effective, SMEs
“A collaboration
easy to use, real secure, spontane “A complete, one
solution that
stop solution for
time update ous, data fulfill all the
all
provider which reporting and communication
communication
can be communication needs of a bank
needs, which can
integrated with solution for the in a
be scaled up as
workflows/ERP field sales force secure, efficient
you grow”
systems and nodal and cost
upstream” offices.” effective
manner”

29. differentiation

30. USP : 3S; Simple, Seamless & Spontaneous
Simple Seamless Spontaneous
> Simple interface > Multi protocol > Real-time updates
support
> Enhanced ‘presence > Cross platform > Video/Voice chat
awareness modes support support
(location + status + > Feature to publish > micromailing
user generated data/text support
content) voice/video chat
transcript > application/file
> Customizable interface > Web interface sharing support
(theme based) > Mobile compatibility > encrypted file
> ERP system transfer
compatibility (data > enhanced search
feeds)

31. Marketing plan

32. Who are the Buyers??

33. Real time Regional
Cost
updates, fast
effective, compl head/national
processing, easy
to
ete head of Bank
solution, easy to
use, customizable,
use, scalable
fast results
Secure, fast,
multiple platform
support (laptop,
mobile etc), Secure, multi-
FMCG compliance with protocol, multi-
govt. norms platform
firms, distributor
support, cost-
s Regional effective, scalable
head/national Owner/CIO of
head of SMEs
Bank/NBFC

34. Promotion

35. PR & Publicity sponsorship, participation, pro
motion
>distributors regional/national
meets, new product/region
launch, regional chapters of FMCG
distributor associations
>Region wise agents meet, banking
conferences, industry level bodies etc
>Bank officers meets, Industry
summits, conferences etc
>Barcamps, incubation centers, industry
level meets, business award
ceremonies etc

36. PR & Publicity print media, radio, TV etc
> FMCG specific newsletters, business
Conventional media magazines & periodicals, papers
(Businessworld, BS, Businessline, ET
etc)
> Industry reports, Industry specific
journals/periodicals, Industry best
practices reports, articles in
business dailies and periodicals
, economist, WSJ etc
> Tech/industry specific magazines
(wired, E4U, Mckinsey quarterly
etc), business periodicals and
industry reports (new trends etc)

37. > Review articles in business
PR & Publicity dailies, online ads, sponsored ads on
highly trafficked industry specific
Conventional media blogs, Linkedin, product evangelism
New/Unconventional in industry specific
forums, communities, Mass mailers
media targeted at distributors etc
> Guerilla marketing in high profile
seminars, reviews/articles on
industry specific top blogs/websites
(CIOblog, CIOforum, indianbanker, FT.
com, WSJ.com, economist blog
etc), linkedin ads, sponsored
blogging, review articles (on product)
etc
> Alliances/seminars at premier B-
schools, universities, use of social
media (twitter, FB, Linkedin corporate
blogs etc), capturing the attention of
‘industry thought leaders’, product
evangelism in online
forums, yahoo/google groups etc

38. PR & Publicity > On distributor and firm level (selling to
level 2 and level 3 mgmt) in business
Conventional media networking
sessions, conferences, regional meets
New/Unconventional media etc
Personal sales/promotion
> High profile selling (in business
networking
sessions, conferences, business
meetings, summits, talk shows etc
> Business development at industry
specific
events, conferences, summits, incuba
tion centers, business networking
sessions etc

39. PR & Publicity > All India distributors
association, FMCG firms, industry
Conventional media bodies like FICCI, ASSOCHAM etc
New/Unconventional media
> Banking/NBFC associations, GRC
Personal sales/promotion bodies, government welfare
departments, international bodies
Affiliations (who generally provide grants) etc
> TiE, Indus
ventures, barcamps, Techcamps, regi
onal entrepreneurship
clubs/associations etc

40. PR & Publicity > With mobile/broadband service
providers, mobile
Conventional media manufacturers, ERP solution
providers (SAP) etc
New/Unconventional media
Personal sales/promotion > Banking solution providers (IT firms
Affiliations such as SAP, Oracle, Infosys
etc), workflow solutions providers
Partnership & alliances etc
> Firms like Google which provide online
collaboration suite (under SaaS
model), Incubation
centers, Barcamps, B-schools, VC
funds, regional entrepreneurship
clubs/associations etc

41. Expense Heads 2010 2011 2012 2013
PR and Publicity 38,500,000 42,350,000 48,702,50 58,443,00
0 0
New/Unconventional 1,920,000 2,112,000 2,428,800 2,914,560
Media
Conventional Media 7,700,000 9,740,500 11,688,600
8,470,000
Affiliation/Partnership 24,000,000 26,400,000 30,360,00 36,432,00
0 0
Business 17,000,000 18,700,000 21,505,00 25,806,00
Development 0 0
70,000,000
60,000,000
PR and
Publicity
50,000,000
40,000,000
New/UnConve
Marketing Budget 30,000,000
20,000,000
ntional Media
Conventional
Media
10,000,000
-
Affiliation/Par
2010 2011 2012 2013
nership

42. New/Unconvention New/Unconvention
al Media al Media
PR and Publicity Online Ads, Mass Online Ads, Mass
mailers etc 500,000 mailers etc 500,000
Event sponsorship
20,000,000 Sponsored Sponsored blogs,
Partnering/promoting 1,500,000 blogs, reviews & 400,000 reviews & articles 400,000
conferences, industry articles Guerilla marketing/ads
summits etc Guerilla marketing/ads in industry 120,000
Promotion of industry in industry 120,000 seminars/events
level 17,000,000 seminars/events Product evangelism in
initiatives, association Product evangelism in industry specific 900,000
development etc industry specific 900,000 forums
Breakup of Marketing budget
forums
Conventional Affiliation/Partners Business
Media hip Development
Promotion in industry Affiliation fees Participation fees (for
specific journals, 2,500,000 9,000,000 business 1,000,000
newsletters etc Partnership events/seminars/summi
Promotion in print
development 2,000,000 ts/industry summits
media (business Dailies, 2,200,000
expenses etc)
periodicals etc)
Sponsored
Co-promotion of Organizing
articles/reviews/product 1,000,000 industry events, co- 10,000,000 conferences, events 6,000,000
comparisons in launch Misc. expenses in
business periodicals, Ecosystem/alliance business development 10,000,000
industry reports etc development 3,000,000
Ads in ET, BS, WSJ, expenses
economist 2,000,000

43. Launch Plan

44. Phased launch of features
Phase 1 Phase 2 Phase 3
• integration with maps (for • “Micromailing” • enhanced security (increased
location based search visual • advanced data logging number of security protocol
search, proximity search)(on (encrypted + clear text) support)
demand basis) • recording voice/video • ‘blogdirect’ (microblogging)
• tabbed windows (chat) conferences/chat • Interoperatability with other IM
• ERP system compatible (data • publishing capability solutions like skype, ICQ, AIM
format) • ‘follow a user’ feature • RSS reader support
• encrypted file transfer and share • Interoperatability with • broadened support for ERP data
• Role based feature accessibility webex, Microsoft's OCS, lotus feed solutions
(Honoring RBAC) SameTime
• operation in ‘offline mode’ (in • enhanced support for ERP
absence of connectivity) support (data feeding, data sync
• Interoperatability with from notes/chat)
GTalk, cisco unified collaboration
suite, Jabber, Gaim etc

45. Where is the money?

46. 5 ways to make money
1. Licensing Fee + value Add-ons
2. Support & Maintenance Fee
3. Upgrade integration/driver packages
4. Cross sell revenue
5. Bundling revenue (from alliance
partners)

47. Licensing Fee
Model Price Details/Feature
Basic user licensing(user $16 Basic Features: text messaging, Emotions,
Based) voice/video chat support, conferencing facility,
org level search, integrated with address book
& calendar, file transfer, remote assistance,
presence awareness in form of status message,
data logging (clear text), conferencing facility
(text, voice), cross protocol support, cross
platform support.
Standard Server $250 No HA + load balancing, can handle up to 5000
release(Instance Based) users
Enterprise Server $325 HA + load balancing, can handle up to 5000
release(Instance based) users

48. Value Add-ons
Value Add-On(User based Price Features/Details
licensing)
FMCG/Distributor Add-on $12 ERP system compatible (data format) + Role based
feature accessibility (Honoring RBAC) + operation in
‘offline mode’ (in absence of connectivity)
NBFC/Banks (retail assets $12 tabbed windows (chat) + encrypted file transfer and
sales/recovery) Add-on share + Role based feature accessibility (Honoring
RBAC) + integration with maps (for location based
search, visual search, proximity search)(on demand
basis) + Interoperatability with GTalk, Cisco unified
collaboration suite, Jabber, Gaim etc
Retail Banking Add-on $12 tabbed windows (chat) + encrypted file transfer and
share + integration with maps (for location based
search, visual search, proximity search)(on demand
basis) + ERP system compatible (data format)
SME Add-on $12 tabbed windows (chat) + encrypted file transfer and
share + operation in ‘offline mode’ (in absence of
connectivity) + Interoperatability with GTalk, Cisco
unified collaboration suite, Jabber, Gaim etc

49. Support & Maintenance Fee
Package(per user Price Features/Details
license)
Standard package $10 12 months; 9X5 support, On
Call/Chat/Mail based, L3/L2 support
Enterprise package $30 12 months; 24X7 support; On
Call/Chat/Mail/Remote assistance/On-
site support, L3/L2/L1 support
Upgrade integration/driver packages
Upgrade, SPs and Description
customization
Upgrade/Service packs Free for intermediate/version upgrade, charged for
major upgrade, SPs free
Integration/customization or Varies on cases to case basis
special support

50. Cross sell revenue
> Benefits from cross sell of other products (Corporate blogging solutions
for Knowledge Management, corporate/team blogs in
enterprises), Corporate/SME domain registration
> opening up of new avenues/businesses for other products (especially for
web2.0 based or e-commerce based SMEs/businesses)
Bundling revenue (from alliance partners)
> Revenue from up sell and sales due to alliances
> Partnership and bundling with other alliance partner products like SAP’s
ERP solution for FMCG distribution/supply chain
> Infosys/Intuit’s retail banking/core banking solution for banks etc

51. 2010 2011 2012 2013
NBFC/Banks (retail assets 17.27 18.48 19.77 21.16
sales/recovery)
SMEs 27.21 29.11 31.15 33.33
PSU/PPP banks 24.76 25.75 26.78 27.86
FMCG/Distributors 3.5 3.64 3.7856 3.937024
Total Revenue(in crore) 72.74 76.98 81.49 86.28
100.00
NBFC/Banks (retail
Revenue distribution in 2010 90.00
assets
80.00
sales/recovery)
5% NBFC/Banks (retail 70.00
SMEs
assets sales/recovery) 60.00
24%
34% SMEs 50.00
40.00 PSU/PPP banks
37% PSU/PPP banks
30.00
FMCG/Dsitributors 20.00
10.00 FMCG/Dsitributors
0.00
2010 2011 2012 2013
Monetization estimates

52. http://networkcomputing.in
http://www.expresscomputeronline.com
http://www.zdnetasia.com
http://searchcio.techtarget.in
Gartner.com
IDC
Dataquest
Indiastat
Datamonitor
Images: images.google.com
“Kotler”
references & sources

54. Saurabh Dubey
(g09033@astra.xlri.ac.in)