Presented by: Pari Natarajan
Co-Founder & CEO, Zinnov
Automating SMBs
Business pyramid in India
Small Business (1-99 EEs)
Medium Business (100-999 EEs)
~50M
~120,000
Mid-Market(1000-10,000 EEs)
Large Enterprises(10,000+ EEs)
~5,000
~100
Sizing ‘Down’ the SMB market
Total Number of SMBs in India (2012)
Addressable opportunity of SMBs in India
• Rural businesses• Mom and pop stores in
retail vertical• Businesses without
fixed premises /hired employees (excludes professional services)
Excluded after filter
22 %
45M
10M
Source: Zinnov Analysis
Numbers broken down
Vertical # Firms
Retail 1.96
Manufacturing 1.17
Professional Services
1.87
Food & Entertainment
0.96
Travel & Hotels 0.81
Logistics 0.59
Education 0.89
Real Estate 0.83
Automotive 0.36
Less than 10
employees
9.5 M
(94%)
11 to 100 Employees 0.5 M (4%)
101-1000 Employees 0.2M (2%)
21%
20%
13%10%
10%
8%
8%
6%4%
10M
0.5Mwith websites
2M on Internet
5M with PC
10M Addressable SMBs
Technology Penetration
Payments/Collections
Business services
Customer acquisition
Automation Opportunities
Regulation and compliance
Supply chain cadence
Employee Attrition
SMB Technology Adoption Challenges
Lack of role models
High cost for support
Unclear Return on Investments
Lack of relevant technology solutions
Lack of focus from technology vendors
Data Security Fears
Supplier Challenges
Lack of solution selling capability
Lack of market awareness
High cost of feet on street
High cost of support
Too much hard work!
Lack of relevant products
SMBs
Prof. Services
Large firms
Suppliers
Infrastructure
StatutoryIncome
Tax
Associations
Employees
Financial InstitutesCustomers
VendorsGovernment
SMB
Connected Enterprises = Enterprise+
Enterprise+ Example
Loan Request Directly into Bank’s Loan Processing System
AP, AR, GL Applications in the Cloud
Bank’s Credit Risk Model in
the Cloud
Connected Cloud
Track Invoice Status in Real Time
Social Sentiments AnalyticsEnterprise
Adjusted Interest Rate
Thank you
Thank you
Know your SMB Customer
• Lack of defined business processes
• Business run for subsistence
• 1st generation owners
Unorganized 55%• Well defined business processes
• Most information is captured on paper
• 1st and 2nd generation owners
Traditional 28%• Well defined business processes
• Passionate to grow using technology
• 2nd generation owners
Savvy 12%• Industry benchmarks / best practices
• Keen to evolve as an enterprise
• 2nd generation owners
Sophisticated 5%
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