Entrepreneurship By Dr T.H.Chowdary Director: Center for Telecom Management and Studies Chairman: Pragna Bharati (intellect India ) Former: Chairman &

Entrepreneurship

By

Dr T.H.ChowdaryDirector: Center for Telecom Management and Studies

Chairman: Pragna Bharati (intellect India )Former: Chairman & Managing Director

Videsh Sanchar Nigam Limited &Information Technology Advisor,

Government of Andhra PradeshT: +91(40) 6667-1191(O) 2784-3121®

F: +91 (40) [email protected]

Talk @ Siddhartha Engineering College, Vijayawada: 8 Oct 2010

mailto:[email protected]

Purpose of Education

• Cultivation of mind to be a creator of wealth for Loka Sangraha in a Dharmic way

• Grihastha - the most important Aasrama (stage) in our life

• Brahma Charya during acquisition of knowledge-education- discipline – Mind and body

thc_ctms 2S451_Oct2010

Self-Improvement

• Sraddha – Attentiveness & Devotion• Deeksha – Resolution• Dhaarana - Uchharaana, • Vani – Communication ability Uddareth aatmanaa aatmaanam, Naatmaanamavasaadayet(one should uplift oneself by himself; one should not degrade himself)


Scientist & Engineer

• Discovery : Scientists unravel the law of nature

• Invention & Application; Engineers use scientific knowledge to invent and apply

• Nature’s Resources utilised for social good & personal fulfillment


Categories of Persons

• Entitlement – No work, no duty, all free• Employment: Content to live• Entrepreneurship – Desire to create


THC_CTMS S189_June 2004 6

Inspiring Visions

• To get to know each other, on a world-wide scale is the human race’s most urgent need to-day. And once this mutual familiarity is established there is some hope that we may all become aware of the common humanity underlying the differences in our local manners and customs.

- -Arnold Toynbee ( at the time of launching TELSTAR in 1963)

• We will produce electricity so cheap that only the rich can afford to burn candles”

- Thomas Alva Edison


Inspiring Visions(2)

• “We will make telephoning cheaper than a post card

- Dhirubhai Ambani

• Henry Ford raised wages of auto-workers so that they can each afford a car.


Inspiring Visions (3)

Ghar Ghar mein radioGaon Gaon mein telephone - 1978

- Dr T.H.CHOWDARYHaath Haath mein telephoneGaon Gaon mein Internet – 1997

-Dr T.H.CHOWDARY

What are Entrepreneurs Made of

• Ideas, enthusiasm obsession to create imagineering need others finance procurement, marketing

• Andrew Carnegie: “Here lies buried a man who knew to hire men better than himself”

• Job creation or wealth creation, modern business, latter

• Enthusiasm-excitement

• 1st hires set the DNA of the company; hard to change the initial DNA

thc_ctms S451_Oct2010 9

What is Enterprise

• Awareness of opportunities• What goods & services are needed• How can they be created, supplied Luke Johnson• Ambitious, aim big• Take on people who are slightly better than you can afford• Mistakes & setbacks are inevitable• Same effort to get a Rs. 100 mlns• Suresh eg: 50 K X 500 K for a launderer• State Creators:• Harihara & Bukka; Shivaji ; Mohammed Ali Jinnah; Ben Gurion


What Resources are needed

• Raw materials• Technology• Finance• Personnel• Marketing (NASA &Ahmedabadi)


Personnel

• Talent• Human capital• Addition to H. Capita • Compensation• Incentives – ESOPs• Involvement- Decision making• Information – Associates are brand ambassadors

“Here lies buried a man who knew how to choose persons better than himself”

- Andrew Carnegiethc_ctms 12S451_Oct2010

Most Crucial

• Finance: equity, debt, venture capital, cash -flow, cost, price, finance cost • Return on Investment (ROI)• Depreciation• Company Law• Regulation • Competitors (Study them)


Social Entrepreneurship • Micro Finance• Schools: Vignan, Narayana, Chaitanya• Creches & Day Care * Old Age Homes Centers• Housing * Eateries: Dhabas• Holiday Resorts (Riches) * Gyms• Corporate Hospitals (Image…)• Homes for Working People• Restaurants * Tourism- Tour Busses • Beauty Parlors * Marriage Bureau• Telecom marketers & callers, talkers• Dabbawalas in Mumbai• Bangla – Gramin Bank, Gramin fone• German Telephone in Bangladesh • Israel • Pakistan


Growth- Trajectory

• 90 to 95% die within 5 years • Building brand – use someone as the pubic face of eh

company• Choose an enemy with whom you can pick up a

quarred – an house hold name • Easy Jet started 1995; BA created GO to fight Easy Jet

( has now 100 aircrafts) • Transform from private to public• More people means – risk-averse, process oriented


Company Culture• Aspire and achieve against & all odds with integrity

• Bring to market quickly

• Setting the initial culture; complementing partners

• Establish credibility, have good, reputed experienced people around you ( Directors , Advisers)

• Getting best, famous customers & suppliers on your web-site

• Good investors – famous (Innovacom of France Telecom, then Deutch & Intel…then brand) name venture capitalists

• Home Page

• Life-long learning- attend Business Schools

• Gove praise where it is due in public

• Ideas of the month: Karan Billimoria


Competition

• Price or• Quality ( Telephone Directory Story)• Repeat order is measure of acceptance• Confidence (Tata Brand)


Challenge Incumbents

• FAX for post 1990• E-mail for post• STD booths/ Internet Kiosks• 2444-4444 Directory Service • SMS• Courier• Man on the Moon – NASA

(Scotishman, French, Ahmedabadi Kankaria Lake Drown )thc_ctms S451_Oct2010 18

Vitality in an Enterprise • R&D• Innovation• Obsolescence / Substitution• Sociology• Technology- Life Style-Mutual Influence• Rate of change of (Telegram; Telex; Radio Paging; Fax;

Post (email, SMS), wired, phones…)• Germany: 40,000 vacancies for engineers 70,000 unemployed engineers! Age 45+• USA – 136 million work 100 mln are knowledge

workers


Compliance with Laws & Regulation

• Company Law• Safety at work• Labour Laws• Welfare & its cost• SEBI/SEC• ROC• BSE/NIFTY• (NASDAQ; NYSE) thc_ctms 20S451_Oct2010

Public Relations

• Share-holders• Associates• Political Parties and leaders• Government • Customers/ Consumers (Recall, Replacement of defective Toyota)• Answering calls, mails• Receiving & farewellthc_ctms 21S451_Oct2010

How They came up

• Wall Mart – Sam Walton• 10 years ago sold 90% of goods procured in USA. Now 90% sold are from China• Apple - Steve Jobs• Microsoft – Bill Gates• Kentucky Fried Chicken (KFC)– Harland Sanders• Mac Donald’s restaurant concept -

Richard and Maurice McDonald• McDonald's Corporation - Ray Kroc• Pizza Hut – Dan ad Frank Carney• Venky’s (Venkateswara Hatcheries (I) Ltd)– B.V.Rao


http://en.wikipedia.org/wiki/Richard_and_Maurice_McDonald

http://en.wikipedia.org/wiki/Ray_Kroc

Israel’s Start-ups

• Fraud Sciences• Check Point- Security• Pay Pal• Pil Cam• Top Tier• Better Place• (founded by Agassi at age 24)



• Better Place (Co), the 5th largest start-up in(the world) history Denmark, Australia, San Francisco, Bay Area, Huwai, Ontario ( Canada), Japan

• Electric cars

• 7c/mile, X IOC if gas costs $ 2.5/gallon (In India $ 6.5)

• $ 200 mlns wire up Israel for charging USA has 170000 gas stations

• 3850 Start-ups 1 for 1844 Israel's India should have 6,50,000 start-ups

• Venture capital in Israel compared to :

• USA-2.5; Europe-30; China-80; India-350



Given Imaging ( A company)• Founded 1998• Pil Cam• 2001 Listed on Wall Street• By 2004 600,000; in 2007 1.2 mln• 8 photos/sec for hours, from deep within intestines• Video can be seen anywhere on the globethc_ctms S451_Oct2010 25

Cell Phone Manufacture• India is adding > 15 mln /month• Total spend: Rs. 30,000 crores• 143 companies i/c 3 MNCs with mfg in India• 140 indigenous cos. entered fray 2Y ago• Capture 17.5% of market• MAXX – 9th class failed Ajjay Agarwal (34) 3 factories: 2 in Mumbai & I

in Uttaranchal• Rs. 400 crore revenues; Rs. 80 cr profit• Introduced 45 models in 2 yr; retired 25• Private Equity Funds ( Ind&fgn)• Spent Rs. 50 cr on Advertising• R&D & Mfr in China ! ( Nanjing & Shanghai)• 20 mln illegal handsets no International Mobile Equipment Identity No

(IMEIno)


Olive Telecom

• R&D Mfg in China - 2 design & Mfg facilities in Nanjing 70 Engrs; Shanghai (70 eng) & Gurgaon (20)

• Launched 7 months ago• Spend Rs. 100 cr in 5Y for brand building in 28

countries (Source: Business India Oct 1, 2010)


Great Entrepreneurs• Andrew Carnegie; Ford; Jamshetji Tata-TISCO; Dhirubhai Ambani; Scindia

(Shipping & Shipyard); G D Naidu; Velagapudi Ramakrishna; Narayana Murthy; Ramaling Raju; Dabur; Bengal Potteries; Tata: Air India , TCS, Nano

• Raheja : DLF; Ghanasyam Das Birla, Sri Ram –DCM; Thapars-coal; Nagarjuna Construction; GMR; Bharti Ari Tel; BV Mohan Reddi; Paturi Rama Rao (ARM/ Icom); KVL Raju

• Kiran Mazumdar ( Indra Noyi); Vara Prasad, Santa Biotech; Anji Reddi, Paturi Srinivas (Energy Leader Batteries); Ramakrishna;

Galla Ramachandra Naidu; China: Suntec; MIC Ramana Rao, LCD Displays; Effotronics: Ramakrishna, Andhra Bank, Andhra Scientific, Andhra Insurance, Ogale Glass; Alembic

• New Technologies: Narayana Murthy


LeadershipThose who claim to lead the masses must resolutely refuse to be led by them, if we want to avoid mob law and desire ordered progress for the country. I believe that mere protestation of one’s opinion and surrender to the mass opinion is not only not enough, but in matters of vital importance, leaders must act contrary to the mass of opinions if it does not commend itself to their reason.

- M.K.Gandhi“Those who carry on great public schemes must be proof against the most fatiguing delays, the most mortifying disappointments, the most shocking insults and what is most of all, the presumptuous judgment of the ignorant”

- Edmund Burke


LeadershipLeadership: “ In every field of human endeavour, he that is first must perpetually live in the white light of publicity. Whether the leadership be vested in a man or manufactured product, emulation or envy are ever at work. In art, in literature, in music, in industry , the reward and punishment are always the same. The reward is widespread recognition; the punishment, fierce denial and destruction…If the leader truly leads, he remains-the leader…That which is good or great makes itself known, no matter how loud the clamour or denial. That which deserves to live, lives”.

( from an advertisement of Cadillac Motor car Company on January 2, 1915)


Dhanyawad:Thank You


Documents

Entrepreneurship By Dr T.H.Chowdary Director: Center for Telecom Management and Studies Chairman: Pragna Bharati (intellect India ) Former: Chairman &