Embed Size (px)
Citation preview
Feb 2013
IT Challenges in scaling a consumer internet business
• Introduction to Policybazaar
• Challenges we faced in scaling
Simple and relevant comparisons drive traffic
Term Quotes Health Quotes
4
Aggregators promote, simpler, high utility products, which are otherwise barely distributed
Aggregators Retail Industry0%
10%
20%
30%
40%
50%
60%
70%
80%
90%
100%
Type of business (Life 1st year only)
OtherMotorHealthTraditional + Other ULIPsLow Cost ULIPPure Term
5Source: IRDA annual report 2010-11; Motor Report 2011, Health Report 2011; Management estimates of Aggregator Business
Re
tail
Ind
ust
ry is
prim
aril
y T
rad
itio
na
l In
vest
me
nt
pro
du
cts
Over 60% of online term is marketed by Aggregators
2009-10 2010-11 2011-12 2012-13 E0
20000
40000
60000
80000
100000
120000
140000
0
20,000
40,000
60,000
80,000
100,000
120,000
140,000
KotakRelianceICICIHDFCMetlifeFuture GenTata AIABharti AXAEdelweissBajajIndia FirstAvivaAegon Re-ligareAggregators
6
No. of Policies
**Over 50% of the industry now offers term products online
8
Auction based on Cost per click No Auction but merit based listing
Aggregator reduces cost of marketingeveryone pays the same, rather than an auction, where the highest bidder gets the position
Lower Cost of Acquisition has lead toAcceptance by Insurance players
9
Q2' 2008-09
Q3' 2008-09
Q4' 2008-09
Q1' 2009-10
Q2' 2009-10
Q3' 2009-10
Q4' 2009-10
Q1' 2010-11
Q2' 2010-11
Q3' 2010-11
Q4' 2010-11
Q1' 2011-12
Q2' 2011-12
Q3' 2011-12
Q4' 2011-12
0
5
10
15
20
25
30
35
40
<25K$ 25-50K$ 50-100K$ >100K$No of partners
Transactions grew rapidly
10
Q3'08-09
Q4'08-09
Q1'09-10
Q2' 09-10
Q3'09-10
Q4'09-10
Q1'10-11
Q2'10-11
Q3'10-11
Q4'10-11
Q1'11-12
Q2'11-12
Q3'11-12
Q4'11-12
Q1'12-13
Q2'12-13
Q3'12-12
Q4'12-13
0
5000
10000
15000
20000
25000
30000
35000
40000
No
of
tran
sact
ions
Aggregator Model: Costs decline rapidly with scale
11
08-09 09-10 10-11 11-12 12-13 13-14 14-15 15-16 16-17 17-18 18-19 19-200
5000
10000
15000
20000
25000
30000
35000
40000
0
1000
2000
3000
4000
5000
6000
7000
8000
9000
10000
Enquiries (K) Cost per transaction (Rs) Transactions (K)
No
of
enq
uir
ies
(000
s)
No
of
Tra
nsa
ctio
ns
(000
s)
IT Challenges in scaling a consumer internet business
• Introduction to Policybazaar
• Challenges we faced in scaling
13
Upgrading your team
• Team can only scale as much as its leader
• Some people will grow, some will not
• Camaraderie is good, but to a limit
• Specialists are necessary
• Product management function is critical
14
Issues with scaling
• Drawing the vision – getting the team to imbibe it
• Bite the Bullet
• Hiring right– Leaders– Specialists– Diversity
• Patience – it takes time
• Overinvest in aligning to business
15
Aligning to business
• Product Management to mirror business
• Regular meetings and Updates at BU level
• Scale the scope of IT
• Retain the agility in the process
• Business aligned v/s core
16
IT as strategy
• Most consumer businesses are innovating
• Standardize and productize innovation
• Tech helps in productivity and error free
• Leadership position retention
• IT has the potential to lead…
