Discussion With Director (DWD) is a series of freewheeling discussions with corporate honchos and eminent personalities, who have taken an unconventional path and created success stories. It is an initiative of IIMB’s Director, Dr. Sushil Vachani, and the Entrepreneurship and Innovation Cell to give students an opportunity to interact with them in an informal setting and try to understand and learn what it takes to reach that level.

DWD’s first session was held on 23^rd September, 2014 with Mr. S. D. Shibulal– the co-founder, ex member of the Board, CEO and MD of Infosys. The one hour long conversation focused on 4 major pointers viz. path breaking decisions which shaped up Mr. Shibulal’s career, his rationale behind taking calculated risks, different strategies adopted by Infosys in its different stages of growth and how to strike the right chord between family and profession at various circumstances with his real life examples.

“I believed in the team more than in the idea” said Mr. Shibulal for the question asked by the director on how he made up his mind to leave a safe job in PCS to venture into a start up.  A team of 8 people which include the likes of Mr. Narayanamurthy, Mr. Nandhan Nilakeni resigned from PCS to form Infosys. Mr. Shibulal was the youngest of the lot and recalls that he was approached by these senior people as they got acquainted well in no matter of time. Unlike the stories of common entrepreneurs that start with some novel idea, this Infosys story rewrites that it’s the belief in team which drove them to create a history.

Even today leaving a government job is considered irrational. Mr. Shibulal left his job in 1980s. When asked about how he managed to convince his family, he sarcastically replied the family lost hope on him long back. The underlying truth is that everyone believed in him and more importantly he believed in himself- Self belief – Key pointer for every budding entrepreneur. He also added that the belief was not baseless and it lied mainly on the fact that the new team had clarity in their vision with proper short and long term goals.

“Infosys is a marathon. Not a sprint. We waited so long as we knew the stakes were high.” Said Mr. Shibulal when asked about why the growth was significantly low in its initial 10 years as compared to the present. To help you with statistics, Infosys reached 1 Bn. US $ market cap after 22 years, but added another billion in less than 3 years. He classifies Infosys into 3 versions. Infosys1.0 mainly focused on building up competencies. They were not ready to compete in the market. During this time they worked backend for a single client. This gave them a security of a constant market which helped them cover their costs in the teething period. By late 1990s they started front end operations. – Infosys 2.0. This is the time when they believed that they can compete and capture market. Infosys 3.0, the strategy that would propel Infosys into its next phase of evolution. This was the time when he took charge as CEO of Infosys.  As the CEO, Shibulal focused on strengthening strategic partnerships with clients, increasing client relevance and evolving the company’s business model towards achieving Infosys’ aspirations of becoming the next generation global consulting and IT services corporation.

The discussion continued more on various other strategic decisions and nuances in them. Of all suggested, one interesting strategy was on how to identify and exploit opportunities. During Y2k problem, when a lot of services were outsourced all Indian companies including Infosys benefitted a lot. But, this is not the end of the story. In this process, Indian software companies became indispensible which opened up the market. He claims, identifying the right opportunity and utilizing them properly with future prospects in mind decides the life of any firm.

“It was not the quantity of time allocated which matters, it was the quality time” said Mr. Shibulal when asked about how he managed his family amidst his busy career. He did give a lot of credit to his wife who was a home maker and took a lot of load out of him.

The audience was rapt the entire time as Mr. Shibulal narrated his experience with a touch of humour. The session was followed by many questions from the inspired audience which included students from PGP and EPGP batches. The upcoming sessions of DWD promise to offer students similar opportunities to interact with many such top executives, so do look out for them!

- Somasundaram K S       
Co-Author
PGP 2014-16

Who thought that the dissent from the big brother attitude of the Soviet would create an app that would ultimately become a $19 billion golden goose? WhatsApp is one of the few majors in the tech industry that does not collect user data directly from its chats. Now this is the story of Jan Koum or should we say WhatsApp. So the story begins with Jan Koum (from here on we shall refer him to as JK) stuck in Kiev erstwhile USSR with his mom. With great difficulty they sneak out of the country and end at Mountain View (I am still in dilemma of how they did this). If you are wondering what they carried for luggage, you are in for a surprise! They carried notebooks; yeah you read that correct they carried notebooks so that Mr. JK does not have trouble at school for supplies. So JK does back end job to support his family and along with his school work.

Two years later, seems like JK’s mom’s bet about the book really did not turn out well! He was a trouble at school but JK was smart enough to teach himself about computer networking through books and sell the books back after use. He joined a hacker community for a while and did his time with w00w00. He simultaneously enrolled at San Jose University. It was here Mr. JK met his bud, Acton a yahoo employee. There was a strong attraction between the gentlemen. I think 600 million users are benefitting how these gentlemen feel about advertisement. Both of them hate it. In the words of Acton “You don’t life make anyone’s life better by making ads work better”. And WhatsApp does not advertise. I have always loved this aspect of the app.

                    

The best part is coming up just started. After working at yahoo, for a while, they took a vacation off to Brazil to play ultimate Frisbee. I have always believed that big things (not necessarily good) are associated apple (consider Jobs, or the forbidden apple) and this is the evident here as WhatsApp’s idea originated after JK was playing around with an I-phone. They thought of an app which could display status on your phone (eg. low battery, at gym) and thus “WhatsApp was born. The first thing they did was to register the name “WhatsApp” (A smart move eh! coz even if the app failed it does sound like a cool name. Who knows you may earn good money just selling the name). Here comes the differentiating thing on the part of JK and Acton. They started working on back-end coding even before the WhatsApp was even launched (I suppose there is amount of OCD associated with all entrepreneurs). Like most apps it had its humble beginnings (with only close friends downloading the apps just to tell you that they are there!). Frequent crashes and extensive back end coding were norms. After I while they did outsource the coding with the help of “rent a coder”. Not much was happening at this point except fixing bugs. Then the angel came in the form of Apple which allowed developers to ping users. This started a wave as people started to ping each other silly status messages.

It is tough to imagine that there was modern world without WhatsApp and then it happened. As WhatsApp version 2 was launched, it had an added messaging feature. It was an instant hit! I remember the time when most of us wanted to buy a smart phone just for WhatsApp. It had the convenience of ISD and national messages with no extra charges. It meant freedom to a lot of us because we could do away with our costly message boosters offered by the telecom operators. And thus began the true era of WhatsApp. And off course there was an 19 billion USD buy out from fb later which everyone knows.

At the end I do think we all can take some points with this story. We have to understand that it is alright to be different (I guess everyone is in some ways and these stories are celebration of “being different” culture). It’s good to take vacations now and then (I would rather just make a reason to holiday). But taking time off to do a reality check is a quintessential in our modern life. After reading the hefty article I decided to pay my WhatsApp subscription fees (at least for this year, not sure about the future. I feel bad every time I get a message saying your subscription is extended). And last but the least my favorite quote DFTBA (don’t forget to be awesome) #thankstojohngreen.

#This opinion is based on the article – rags to riches tale of how JK built WhatsApp into facebook’s $19 billion baby (http://www.forbes.com/sites/parmyolson/2014/02/19/exclusive-inside-story-how-jan-koum-built-WhatsApp-into-facebooks-new-19-billion-baby/)

- Varun Chandra
PGP 2014-16

IIM Bangalore

Entrepreneur@IIMB

Name : SOURAV DAS
Start-up Name : SuryOn

George Abraham (Founder, CEO at Score Foundation)

He was just 10 months old, when meningitis permanently damaged his vision. Today, five decades later, George Abraham has become a legend and a true inspiration for all who dare to think beyond the constraints posed by disabilities. Mr. Abraham visited IIM Bangalore on 17^th September, 2014 to share his life experiences in the first ever speaker session of ENPOSIUM - the Entrepreneurship Symposium. The event was held by the Entrepreneurship and Innovation Cell of IIMB in association with Vikasana- the social service initiative of IIMB and Office of Disability Studies, IIMB.

George Abraham is the Founder and CEO of Score Foundation, a not-for-profit organization located in New Delhi. Established over 10 years ago, it works towards disseminating information on living life with blindness, through its ‘project Eyeway’, in an effort to minimize discrimination and help empower the visually impaired community of India.

Mr. Abraham spoke about how a visit to a blind school and the sight of students languishing there inspired him to do something for the visually impaired and led him to create the Score Foundation. His entrepreneurial bent of mind coupled with a passion for cricket also led him to establish Blind cricket in India. He is the founding Chairman of the World Blind Cricket Council (WBCC) and the Association for Cricket for the Blind in India (ACBI).

During the session, it was emphasized that the main problem is not blindness but the attitude of others towards blindness. The traditional mind-set is one where blind people are considered a liability or a burden. To change this attitude, Score Foundation launched a TV Series called ‘Nazar Ya Nazariya’, a few episodes of which were also shown to the Enposium audience.

Mr. Abraham left the audience with a few parting words of advice on how the society must be more sensitive to the needs of the visually impaired and keep in mind the differences between individuals when it comes to designing products or systems. Universal designs and innovative technology and products can be quite handy in overcoming a lot of daily obstacles faced by people with disabilities.

Mr. Abraham’s entrepreneurial journey was very motivating and certainly inspired many amongst the audience which consisted of students, professors and representatives from the NGOs- Samarthanam, Ramana Maharishi Academy for the Blind and Enable India.

Mr. Ken Gullicksen and Mr. Troy Malone

What does it take for an app to become a billion dollar company? What are the dynamics of the global app ecosystem? In today's technologically advanced society, there exists a huge market for apps that simplify our lives. How does one build a successful app business?

Mr. Ken Gullicksen and Mr. Troy Malone, senior managers at Evernote Corporation addressed the above questions and discussed the start-up journey of Evernote in an interactive session organised by the Entrepreneurship and Innovation Cell at IIM Bangalore on 21^st August 2014. Evernote Corporation develops a collection of apps designed for note taking that make it easy for users to stay organised and productive.

The session revolved around the key challenges faced by a start up in the initial years including growth and funding. The guest speakers highlighted the importance of a start-up investing in building a strong product rather than investing in marketing the product. Evernote’s unique marketing through word of mouth, phenomenal growth trends over the last 6 years and current position formed a major part of the discussion. The focus was on analysing the value of the app to the consumer, revenue model of a ‘freemium’ app, consumer retention and valuation of the company.

The speakers went on to discuss several stories associated with Evernote’s logo, the company’s first investor and why the company decided to launch a customised product for executives. They also mentioned the role of luck in any start-up by giving their own example. The unconventional aspects of Evernote such as the high average age of users and the lack of having a niche target group made interesting points of discussion.

The audience, which consisted largely of budding entrepreneurs at IIM Bangalore, discussed topics such as how Evernote tackled its competition, its expansions strategies and how it would approach the Indian market which is Evernote’s next growth opportunity. The hour long session was highly interactive and inspirational and lent an insight into the world of tech-entrepreneurship.

Mr. Ken Gullicksen is the Chief Sales Officer heading Evernote Business, the company's SMB and team-focused service. He is also responsible for investor relations, corporate development and the global sales and support teams. Mr. Troy Malone is the General Sales Manager, Asia Pacific Region at Evernote and is responsible for growing the user base in nine different countries and organizing the company infrastructure in South East Asia, South Korea and India.

Evernote Corporation is one of the fastest growing internet companies from the Silicon Valley today. The Evernote app was first launched in 2008 is now valued at over 1 billion US dollars with more than 100 million users worldwide.

Entrepreneur@IIMB

AMAN CHINDALIA

CO-FOUNDER PROJECT PREFIX

Jugaadu : What is Project Prefix?

Aman : Project Prefix is a 10-month old CA coaching centre based in Hyderabad. It’s a project because we don’t aim to run it as a commercial organization and Prefix as once you are a CA, the letters CA get prefixed to your name.

J : How did you come up with Project Prefix?

A: I started studying for CA in 2008. During the course I realized that there were a few aspects of the CA education that were completely being missed out. Traditional CA coaching does not focus on a holistic development but only technical knowledge. There is a complete absence of skills like communication skills and analytical skills in students. Even the articleship that forms the most integral part of CA is not utilized to its maximum as students are not aware of what to expect from it. Our centre takes care of all of this. Our tagline captures our business objective : “We are changing the way CA coaching is done”.

J : How did you go about it once you decided to go ahead with Project Prefix?

A: I was very confident about the idea right from the beginning. I met three of my friends who I met during my articleship at KPMG and who also bought into this idea. Then we decided to meet the CA fraternity of Hyderabad to get their opinion and feedback on the idea. We also did some market research by speaking to students and their parents and understanding their needs and expectations from a coaching centre.

J : What major obstacle did you face initially?

A: CA coaching industry is very fragmented. There are no big brands. However there exist local coaching centres run by teachers with decades of experience. Convincing parents that four 23 year olds with no teaching experience could coach their children was the biggest obstacle we faced.

J : What are the future prospects of Project Prefix?

A: Project Prefix had gained sufficient recognition now. Our first batch had a 100% pass percentage. We intend to hire more teachers now. The plan is now to expand in Hyderabad and also move to other cities.

J : What do you think about Entrepreneurs at IIMB?

A: I haven’t had a chance to connect with many entrepreneurs here. I am not even aware of many of them. TWIST in my opinion is a great medium for us entrepreneurs and aspirants to connect and share our stories.

It goes Tik-tok. It’s a watch. It’s an i-pod. No, it’s a bit of both but a whole new product all the same – the Tik-tok. When Scott Wilson decided to convert the underperforming i-pod Nano into a simple wristwatch yet keep both functionalities together, he knew he had a brilliant idea but unfortunately, had no way to convert it into reality. However, he eventually stumbled upon a method that ensured that his product could actually be retailed by the likes of Apple, Amazon and Walmart. The recently released “Veronica Mars” movie began its life as a series – nothing novel in itself. Except for one tiny detail – it has not one, not two but more than 80,000 producers! What do Tik-tok and “Veronica Mars” have in common? Crowdfunding!

Crowdfunding simply put is a funding technique in which small amounts of money are pooled from a large number of people who are ready to invest in an idea that appeals to them. What initially began as the members of the public “donating” the money for an idea has now grown into promising returns either in form of the product itself or in monetary terms for the investors. Nowadays, crowdfunding happens via new-age media like social networking sites or custom websites to spread awareness about the idea, display the workings of a proto-type and garner investors for the project. In addition, there may be intermediaries like crowd-funding websites – for example, kickstarter or indiegogo – which help in raising funds for exciting new business ventures. Increasingly gaining popularity, these websites allow entrepreneurs to set a target which have to be crossed before the project could begin.

Crowdfunding works as a symbiotic relationship. For the entrepreneurs, it provides a whole new platform for getting funds simultaneously getting customers too for their ventures. For the investors, it becomes a unique opportunity to be at the helm of a project – for charity or for rewards- while at the same time minimizing the risk that they take as they invest only a small amount for the project. Crowdfunding lets people put their money in new businesses but with a smaller quantum of risk than they otherwise would have and also protects the entrepreneurs from the arm-twisting of traditional venture capitalists, proving to be mutually beneficial.

Source: ourcrowd.com

But crowdfunding is definitely here to stay, for myriad reasons. The biggest of them all being the rise of equity funding. While outside the premises of law till now, nations like Italy, US are waking up to this new possibility by creating laws that would allow crowdfunding equities to operate. Whereas in a majority of cases earlier, the donors get little except gratitude for their investment, now there is a bigger potential of returns. With proper legislation, patents and IP protection may follow which augurs well for both the venture-creators as well as the enablers – the crowdfunding websites. With equity crowdfunding, the crowdfunding websites are essentially converted into a primary marketplace but for companies that are going to come into existence rather than for those that are already present.

Secondly, the essence of the crowdfunding idea – to build a campaign to not just create awareness but also attract potential customers for the product/service, all working on network effect . This technique works well especially in the product space where crowdfunding could work as another form of pre-ordering, conditional on the belief that there are enough like-minded individuals who would also like to order the same.  With the advent of social networking and the growth of crowdfunding websites, the networking potential and hence the base of potential investors has grown exponentially making it easier to reach a critical mass for the venture to reach its target amount.

Further, for certain types of small-scale experimental ventures – for example, filming learn-it-yourself parkour videos or shoe-string budget travelogues– the traditional investment routes of venture capitalists or angel investment may not be viable. An ideal platform for such creators would be crowdfunding as there may be enthusiasts willing enough to support such ventures in other parts of the world. Many individuals are jumping the bandwagon of creating their own ventures – simple yet odd ones which won’t find any other way to get started!

While crowdfunding has changed the platform for investment – the rules remain the same. The novelty/utility of the idea, the details and functionality of the plan as well as a marketing campaign designed to perfection to astound the investors are essential as ever. Only the dynamics are different – a heady combination of bigger audience, smaller amounts and a tight timeline to reach the target. Once started, the crowdfunding wagon rolls along a rocky road running only on a fuel dating to the times of Caesar - the power of the mob!

Article by: Sarulakshmi, PGP 2013-15