"Absolutely Red Hot" Growth in Indian Business: Ravi Venkatesan - Chairman Microsoft India - at TiEcon 2007

Ravi Venkatesan is the chairman of Microsoft India, and is responsible for Microsoft's marketing, operational and business development efforts in India. Venkatesan provides a single point of leadership for Microsoft in all of India. Microsoft Corp. (NASDAQ: MSFT) is one of the top 20 innovators of The Innovation Index.

Venkatesan delivered a keynote presentation at the recently concluded TiEcon 2007 in Santa Clara, California and shared with the audience of entrepreneurs, CEOs and venture capitalists the opportunities for growth and innovation in India.

And why not? The current annual Indian GDP growth is 9% and is showing no signs of slowdown, Indian business has unprecedented access to capital, Indian innovation and entrepreneurship is booming, Indian business is riding a wave of "incredible confidence", over 100 Indian corporations have market capitalization of over $1 billion, Indian IT exports are poised to grow 30% to 35% yearly, major multi-nationals have made multi-billion dollar investments in India, Indian manufacturing, retail, real estate and exports are becoming bell-weathers - Venkatesan calls this current state and growth of economy and business in India as "absolutely red hot."

Venkatesan believes there is abundant opportunity in every market sector that is facing big societal problems with "For Profit" business models. India is a "nation to be built" and hence is directing huge amounts of capital, resources and manpower to meet the needs of this unprecedented growth that he compares to "19th century America".

Venkatesan outlined six major opportunities in industries that are showing the highest potential for growth and innovation in India since they have "huge societal problems":

1. Communications - led by mobile, broadband, VoIP, SMS and more by innovators such as Ambanis of Reliance and Bharati. The cell phone has become ubiquitous in India, and everyone from a businessman, taxi driver, to a vegetable "laari waala" is using cell phone for business and entertainment.

2. Energy - with growth in renewable energy, green energy, solar energy, nuclear power, and more led by innovators such as Tanti - who started with 2 windmills and has now grown his company into a major energy powerhouse.

3. Water - led by access to pure drinking water which is a huge healthcare problem in villages, especially when the cost of water is 11 rupees a bottle, and the cost of treatment from healthcare problems resulting from drinking adulterated water is growing.

4. Healthcare - with 100s of millions of people seeking better and longer health, a large segment of aging population, foreign residents seeking better healthcare solutions in India creating a new market of "medical tourism", led by corporations such as Apollo, Ranbaxy, Fortis and more

5. Agriculture - with new innovations in delivering fresh food and focus on end-to-end supply chain led by companies such as Reliance Fresh, and through access to micro-finance for Indian farmers and agriculture companies.

6. Education - with focus on English and IT, leadership and employability, skill gaps and K-12 - despite the high GDP growth, a large percentage of India is still illiterate and requires bold initiatives led by state and national government and private entrepreneurs. For instance, can education tutorials be delivered through cell phones as an online service, especially when cell phones are being used by the largest segment of the population.

Venkatesan quipped that the biggest problem Microsoft has is that a majority of the SMB and consumer market does not want to pay for software. He provided some examples on how Microsoft has used creativity, flexible service-based business model and customer focused solution approach to address some of the IT problems facing small business and pharmaceutical industry in Tirupur and Ahmadabad.

Finally, Venkatesan provided four key takeaways for entrepreneurs who want to seize the Indian opportunity:

1. Address huge societal problems with For-Profit business models and focus on your most significant challenge, and "inclusive growth."

2. Don't forget entrepreneurship 101 - obsess about your consumer or the customer, and do rigorous thinking.

3. "Think Big, Start Small, Scale Fast" - Venkatesan quoted Mukesh Ambani's mantra of growth that every entrepreneur should follow.

4. Talent. Talent. Talent. Hire the best and the smartest people who have a strong sense of purpose and believe in the larger mission of the company.

Venkatesan's presentation style was extemporaneous and to the point, without any slides, straight from the gut. His experience with the Indian industry was without a doubt. His poise, panache, and no-nonsense conviction made for an audience of entrepreneur believers who couldn’t wait to hop on to the next plane to India in search of new opportunities.

Also check:
Innovation and Leadership lessons from Meg Whitman, eBay CEO and President, and top Innovator

Innovation Lessons from the Top Innovators and 13-year old CEO at TiEcon 2007

TiEcon 2007 was hosted by TiE – The Indus Entrepreneurs at the Santa Clara convention center.

And past articles on innovations and growth in India:

Made in India - Innovations in Software Operations at the Top Innovators

The Growing Global Indian Innovation

Innovation and Leadership lessons from Meg Whitman, eBay CEO and President, and top Innovator

eBay CEO and President Meg Whitman, in her keynote presentation on the morning of the second day of TiEcon 2007, May 19, not only provided a historical overview of eBay and provided insights on how eBay is positioning adroitly for the future, but also shared real world lessons on Business, Innovation, Leadership and more.

Here are nuggets of wisdom from Meg Whitman shared with the TiEcon attendees and entrepreneurs:

What are the Five things People do online:

Find, Buy, Sell, Communicate, Entertain

eBay focuses on three of these five things:

Buy, Sell, Communicate

What are the Six Business Lessons that Whitman has learnt at eBay:

1. Enable our customers; we do not direct. For example, eBay Motors.

2. It's all about the customer experience.

3. Level the playing field as often as you can.

4. Make size a business advantage.

5. Disruptive ideas are vital - find them from inside and outside.

6. Constant Innovation within the company is imperative.

What are the Five Principles that drive Innovation at eBay:

1. Innovation is a mindset. We strive to ensure that everyone in the company is focused on Innovation.

2. Innovation is in the DNA. We build new products with Innovation from the inside-out.

3. Cannibalization does not scare us. We would rather cannibalize ourselves than someone else cannibalizing us.

4. Some people are gifted disruptive innovators. We call them "Baby Tigers". We make it a point to nurture them and give them the room to succeed.

5. There can only be so much structure to creating innovations. We are always open to new ideas and serendipitous finds.

In the past five years, eBay has embarked new innovations through:

1. PayPal acquisition - and the online payment solution

2. C2C Classifieds all over the world

3. Online Shopping through Shopping.com

4. Skype acquisition - the largest provider of Voice over IP solution in the world

eBay has always kept strong focus on the core auction business though and has created innovations in the core auction business; for example, eBay Motors, Fixed Price model, integration of PayPal with eBay Auctions.

What are the Seven Personal Lessons on leadership that Whitman espouses:

1. Hire the right person for the right job at the right time and who has the right values. "I cannot stress this enough"

2. Reorganize early and often. Transform change and uncertainty into opportunity.

3. Hire ahead of the curve. For example, get someone with experience who has managed larger businesses so that he or she can help you grow to that size.

4. Focus. Focus. Focus. Vision + Strategy + Execution.

5. Mission motivates. We are in the business to make a difference for our customers, and every employee should be passionate about this.

6. Get out and about enough. This is where new ideas that generate game-changing innovations can happen.

7. There is no compromise for Integrity. Whenever you say something or are making a decision, what if your kids, brother, sister or parents were also present? Would you do that?

Whitman also answered several questions from the audience (the questions were beamed using SMS). Here were a couple of questions and answers:

1. How do you achieve Balance?

Maintain focus on the Core Business - 70% of our resources are allocated here.

Rest of the company is focused on Adjacent Business, Planting Seeds, and creating new Innovations.

The business must keep itself informed of the key consumer trends, and always work towards "ease-of-use" for our customers.

2. What do you worry about the most?

Changing environment, and our ability to keep track, staying informed, and taking smart risks. The cost of "not doing anything" or inaction is huge. We would rather do something and have an answer, even though it may not be the right one, instead of waiting and not doing anything.

We want to make sure we maintain a 0.60 batting average. Training and Development of our employees and customers is essential for success.

Bottomline:

Meg Whitman is one of the most successful women CEOs of our generation, having grown eBay from tens of millions in revenue to a multi-billion dollar global corporation. Whitman is a charismatic leader and an innovator. Her energy, passion, wit and leadership were in full flow at the TiEcon 2007. The audience was enlightened during her presence, however felt a gaping hole soon after her presentation got over, longing for more of her infectious wisdom and insights.

References:

eBay Inc. (NASDAQ: EBAY) is one of the top 20 innovators of The Innovation Index.

TiEcon 2007 was hosted by TiE – The Indus Entrepreneurs at the Santa Clara convention center.

Innovation Lessons from the Top Innovators and 13-year old CEO at TiEcon 2007