Building and Managing a World-Class Enterprise

- The Experience of Deccanet

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Confidential to DECCANET Designs

An Enterpreneurship Paradigm

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Venkat Rajendran
- Personal background Rural Engineer, Telecom G.B.Meemamsi and Sam Pitroda C-DOT: PBX, RAX, MAX The crisis at C-DOT US Vs Entreprenuership Product company Reinvention: Services cum Products Templeton and Intel become partners
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Enterpreneurship - Purpose

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Confidential to DECCANET Designs

Enterpreneurship - Purpose
Make money - a lot of it !! ??

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Deccanet : Vision
Become the most valued Telecom technology company for

Customers Employees Shareholders (The Society)

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Deccanet : Goal
Revenue in 5 years PAT Revenue Productivity Market Cap : > $ 100 Million : > 35 % : > $ 100,000 / Man Year : > $ 1 Billion
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Enterprise and Society

Taxes

Govt.

Enterprise

Education Healthcare Infrastructure Security, Law & Order

Society
Job Opportunities Cash Inflow of $ Cash infusion into society
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Enterprise and Society

Taxes

Govt.

Education / Nurturing

Enterprise

Education Healthcare Infrastructure Security, Law & Order

Society
Job Opportunities Cash Inflow of $ Cash infusion into society
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What turns on an Enterpreneur ?

Creating a vision around what he enjoys most Create value for others, society Create value for self Increase self esteem Create .. Create .. Create Achieve .. Achieve .. Achieve
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Indian Enterprises - The Transition

The business environment:

Generation 1: Tatas/Birlas - Family run empires $ 5 Billion total market cap ? Gen 2: Ambani Enterprenuership, Hardwork $ 50 Billion total market cap ? Gen 3: Narayan Murthy - Transparent, Sharing $ 100 Billion total market cap ? Gen 4: Next Gen World class value generation $ 10,000 Billion total market cap ?
Confidential to DECCANET Designs

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The Silicon Valley model

Idea
Validate

Value
Buy out

Concept
Design

Company
Build

Prototype

Venture

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Promote

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Revenue creation models

$ 10,000 K/MY

10000 8000 6000 4000 2000 0 Indian IT Labour Global corporate Intellectual

$ 50 K/MY

$ 200 K/MY

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Sustained
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Transient
Confidential to DECCANET Designs

Rate of growth
Product Model
16 14 12 10 8 6 4 2 0 Y1 Y2 Y3 Y4 Y5 Y6 Y7 Y8 Labour Y9 Y10

IT labour model

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Confidential to DECCANET Designs

High value creation on IPRs

The real end game is higher value generation and revenue productivity.

Services Products and IPRs IP Mobile: $ 500 Million in 20 months Trillium: $ 300 Million in 4 years ATOL: $ 75 Million in 2.5 years

Some Examples

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IPR Success spins off more success

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Deccanet Model
Services and Products Products

Sell IPR, Generate cash Build more IPRs and Product company

Services: $ 40 K/My IPR enabled services: $ 75 K/My IPRs/Products: $ 200 K - 1000 K/My
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The ECO system

The Eco system

The Investor, the Govt., the Bank, Employees expectations, The share market

High growth >> High risk The Valley:

1 success subsidises the 9 failures What subsidises the failures : Services

Confidential to DECCANET Designs

Bangalore:

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Derisking the risk

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The Commodity trap

Software Skills is becoming a commodity In commodity the big will survive better China will beat you in a cost game De-commoditize the business

Use IPRs for that

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Confidential to DECCANET Designs

The Triangle for Success

Enterprise Success

Positioning

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Confidential to DECCANET Designs

The Key things an Entrepreneur must have

Intellectual Honesty Fairness Openness Hardwork A Dream Unending Optimism Courage
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Technology or the Enterpreneur ?

RH: What do you look for in the companies -- the entrepreneur or the technology? VK: The entrepreneur is more important than the technology. It's really the entrepreneur, their thinking, their knowledge, their integrity, their ability to be coached and how good they are at working with other people, assembling teams.
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People and the Enterprise

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Industry Transition
1900

Agriculture Economy Land Manufacturing Economy Machinery

1950

2000

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Knowledge Economy People

Confidential to DECCANET Designs

Work Culture
- the foundation

Excellence

Systems and Processes Work Culture

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Confidential to DECCANET Designs

High Performance Teams

High degree of peer pressure Consensus on common decisions Distributed decision making Internal Customers Each one works like an entrepreneur Team leaders as facilitators

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Confidential to DECCANET Designs

Attitudes
Attitudes admired

Competent, Energetic, Passionate, Initiative, Ownership, Team spirit Courage to speak out, Willing to learn Risk taking, Ready to Stick ones neck out Beaurocratic, Please the Boss Authoritarian, Hide behind Rules Poor team play, Political, Secretive

Attitudes discouraged

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Confidential to DECCANET Designs

Contention
Can the Boss be always right ? Constructive dissidence Openness to criticism Differing view points Achieve consensus at the end Give 100% after dissidence

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Work Environment
Free and open communication Leaders - strong interpersonal skills Customer sensitivity to everyone Avoid destructive internal competition Clear value system and transparency on decisions Teams / individuals helping each other beyond the call of normal duties
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Work Environment
Reduce need for constant supervision

Leader: gardener responsible for a garden

Remove fear of authority Share Information:

Company financials with all Company strategy and direction with all Easy Information access across functional groups

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Sense of Fairness
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Leadership
Visionary who touches the heart and mind Gardner responsible for his garden Have willing followers rather forced slaves Story teller rather than a commander A servant and change agent to his people rather than an whip master Walker of their talks

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Confidential to DECCANET Designs

Team and Leadership - Maturity

Leader Team members

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Confidential to DECCANET Designs

Three Dimensional Growth

Growth of Individual employees
Organisational

Social Growth in 3 Dimensions >>

Contribute in 3 Dimensions >>

Personal

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Provide Opportunities for growth

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Education rather than Training

Training

Skills and Techniques Know-how Information, Knowledge Know-why Leads to Wisdom Leads to Humility, Compassion and Respect

Education

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Confidential to DECCANET Designs

Indian Dimension
Poor Teamwork

- Our problem areas

Consensus, work culture
Work culture, Peer pressure Work culture, Peer pressure Professional help, Focus from beginning Raise when you dont need, Find Subsidy Confidential to DECCANET Designs

Sloppiness, Poor Attention to detail

Hardwork

Marketing, Packaging

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Funding
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The personal cost

There is a personal cost in a startup Constant companion: Terror of failure No IPO without a personal trauma Keys

Hang in there, Optimism, Constantly reinvent Things will turn around

Regular exercise, time for family and friends, sleep, diet, spiritual stuff - yoga/art of living The most difficult thing is the first Million. Then it is far easier Confidential to DECCANET Designs

Some solutions

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Just Remember:

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Is it all worth ?
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You Bet ! Every Minute of it !!

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Summary
This is a great country We have excellent brains Let us stop being over-dependent on western value creators Let us take this nation to where it really belongs Honest Enterpreneurs is the real hope
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