Legacy organizations are being disrupted and are struggling to keep pace with the hyper-volatile business landscape. The competitive landscape for organisations has become more dynamic. Hyper Agile Competitors, Movement of the markets toward the east and ‘Digital becoming the New Normal’ are realities all companies are faced with. This keynote by Pari Natarajan , CEO of Zinnov provides insights on the convergence of 3 different pillars and to draw a picture on how this digital age will be critical to build technology organizations of tomorrow.

1. Building Technology Organizations of 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 largely found 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 over 50% 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 to be 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 immigrants are 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 is the 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 able to 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 them are 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 through innovative 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 their offering 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 reinventing workforce 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 reinventing workforce 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 a threat 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 need to 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. Thank You