Entrepreneurial organization
Renate Vince consulting services
2
Competitive industry
•Shorter position of advantage
•Continuous innovations
•Too many players
Customer expectation
•High value at low cost
•Multi vendor - Best of brands
•Personalized services
Market
uncertaint
y
•Disruptive•Shorter trend cycles•Economic downturn
Strategies must focus on getting more efficiencies, delivering better and
new products and using technology more effectively without exploding
costs.
Current business scenario
Gestation
Inception
Growth
Maturity
Business development cycleCurrent business environment
3
Competitive industry
Customer expectation
Market
uncertaint
y
Demands in the SME business environment
Gestation
Inception
Growth
Maturity
Growth consulting
Technology & production consulting
Marketing & competing strategies
Financial engineering
Team & management consultation
Problem definition
Environmental factors
Business growth
Angel, FFF Vcs, Sttrategic investors / M & AStrategic alliances
RVCS Vision
Gestation
Inception
Growth
Maturity
Early stage Later stage
1st stage
2st stage
3st stage
MezzanineIPO
Seed capital
Growth consultingTechnology & production positioningMarketing & competing strategies
Financial engineeringTeam & management consultation
Enable business growth of SMEs through systematic management , product positioning & marketing strategies and financial structuring
Positive cash flows
Stakeholders value creation
Financial relationship
Manageme
nt decision
RVCS ability to deliver
• Network of channel partners
• SME in domain & technology
• Bankers & investors• Financial structuring• Resource funding• Alliances with
institutions & investors
• Leaders with experience of running own companies, CEOs
• Team building
• Experienced people from the industry
• R & D depth• Strategy & Benchmarking
Sector expertise
Entrepreneurial skills
Product & Market capture
Investment management
Service offering & value proposition
Growth
Technology & productsMarketing & competitionFinancials
Team & management
Customer
InnovationFinance
Process
Increase stakeholder value
Maximize economic value
Enhance customer satisfaction
Optimize internal cost
Establish growth areas
Holistic business consulting Well defined environment focus Constructive value proposition
Organization growth
Idea generation Start up Growth Maturity
Domains IT & ITES Telecom Education Medical systems Logistics
Investor relations Valuations Investment
management M & A Disinvestments
Engagement modelOverview
• Introduction & understanding•Evaluate client preparedness for due diligence phase
Study
•Company assessment•Gaps definitions•Growth recommendations• Offering at T & M capped at 21 days max
Due diligence •Recommendation
requirements setup • Initial fund requirements execution
• Joint governance establishment
•Commission on funding @ 2% - 7% based on complexity
Collaboratio
ns
• Jointly manage organization growth as stakeholder participation
•Equity up to 20%
Partnership
List of clients
•Oriental software Pvt ltd•Inception stage•funding of INR 10 Million
•Sales strategy & augmenting sales force
•Crane software •Inception stage•Funding of INR 20 Million
IT•Electrohms Pvt ltd•Idea generation•Working capital of INR 40 Million
•Sales strategy•Gwasf•Growth expansion•Sales strategy •Organization restructure
•Working Capital of INR 40 Million
SME
•Jupitor Organic Ltd•Growth stage•Private placement of equity shares of INR 20 million to •SBI mutual funds•Morgan Stanley
Pharmaceutical
M1 Medical systemsFlyer
Sector Medical devices
Organization stage Concept
Assessment brief Organization
▪ – on paper Strategy
▪ – sound People
▪ – competent Product & competitrs
▪ proven & appreciated▪ Competition – more like to
cvolaborate Market -
▪ Diagnostic labs. Hospitals Financials
▪ Personally funded the idea , initial prototype and application of patent
Product / service description Palm sized whole body CT & MR
compatible stereotactic needle placement device that performs Biopsy, Aspiration, Injection drugs, electrode implantation, Stimulation, endoscope placement
Compelling reason Existing frames are expensive,
requires significant training, cannot be used on infants not disposable
Existing methods are costly and longer time for surtgical preparation
Mi;s prototype does it at a very low cost
Highly recommended by international experts in that field
Brio TelecomFlyer
Sector Telecom
Organization stage Growth
Assessment brief Organization
▪ Pvt limited with strong delivery capabilities
Strategy ▪ Clarity of the market and solutions in
place People
▪ Very strong telecom skills Product & competition
▪ proven & appreciated▪ Competition – Dialogic; Don jin
Market -▪ Telcos, VAS providers
Financials▪ Has initial funding from investors
Product / service description Brio’s universal switching platform is
a generic telecom computing platform for wire and wireless (GSM / CDMA) networks. It efficiently handles incoming calla and provides VAS solution for PSTN / IP in terms of – VRS ( Voice response system); CNAS (Call notification & alert system) ; CRBT (Caller Ring back tones). Etc.
Compelling reason Though Dialogic capture 72% of
market share, Brios solution has better features and is priced low.
Has been accepted by BSNL , on mobile, STC and bhas a committed line of business
Analysis of market and capitalization of existing pipeline shows a potential of high revenues (156 CR INR)in next three years
Thank you
Pain points
Idea generation
• Business model
• Product & market niche
• Management team
• Competitive advantage
• Raise investments
• Raise the brand. Produce & differentiate
Start up
• Capture market share. Launch differentiated products
• Repeat customers
• Channels & revenue streams
• Management team expansion
• Invent second stage of growth
Growth
• Reinvent differentiation & competitive strategies
• Organization empowerment
• Broaden coverage – region & offerings
• Matrix based Management transformation
Maturity
• Balanced business team
• Adaptability to change
• Revenues through innovations
Industry expertiseSMEs – Auto components, pharmaceuticals, Garment
Exit strategies
Process innovation
Channel expansion
Product innovation
Price reduction
Product promotion
Idea
Inception
Growth
Maturity
Decline
• A vibrant and dynamic SME sector of Indian economy, with over 11 million units providing employment to over 27 million people, contributes to nearly 40 per cent of the total industrial production and over 34 per cent of the national exports.
• Today, SMEs in India are grappling with fast changes at the market place that is transiting from a controlled economy to a free market set-up.
• They being the important members within the supply chain are also exposed to the competitive pressures either directly from the market place or indirectly passed on from their higher ups in the chain.
• Considering the strategic role played by SMEs, it is essential to examine how can they improve their performance through Product promotions, pricing, channel expansions & innovation strategies
Industry expertiseIT and IT Es
• The past few years have produced a
confluence of event that have re shaped global economy & the technology boom in India.
• Core business relationships & models are dramatically changing from• Product centricity to customer
centricity• Mass production to mass
customization• Protracted value chain to speed
based competition• Material value to Knowledge value
• This has lead to new opportunities in IT development• Customer relationship management• Middleware and system integration
tools• Computer / telephone integration
(CTI)• Convergence in electronic messaging• Device proliferation & supporting
technologies
Angel, FFF Vcs, Sttrategic investors / M & AStrategic alliances
Gestation
Inception
Growth
Maturity
Early stage Later stage
1st stage
2st stage
3st stage
MezzanineIPO
Seed capital
Criteria• Projects with the highest potential
business returns• Convince shareholder of the practical
approach to achieving business benefits from IT investments
• Quantify numbers to intangible benefits
Service offerings Idea generation (Gestation )
Growth
Idea conceptualizatio
n & Vision
Professional advisory services
Technology & product
Checking uniqueness for the technology idea in order to avoid possible problems in
future
Developing of effective intellectu
al property strategies
Turning your inventions into profit-making
assets
Marketing &
competition
Identification of the market niche
Development of a business concept
targeting this market niche
Financials
Good understanding of
the venture financing process
Pre-seed capital: business angels,
development funds
Investment opportunity
selection criteria of different types of
investors
Introducing project to prospective
investors
Team & manageme
nt
Understanding of the need to share
company ownership and
management with professionals
Enable companies that have good technological / service idea and good market potential with business expertise, investments and resources to
commercialize
Service offeringsStart ups (Inception)
Growth
Company Vision
Company entity and ownership
Business incubation
Technology & product
IPR Protection - inventions into profit-making
assets
Establishing intellectual
property management (IPM) system
Functional & design product specifications
Marketing &
competition
Defining market needs,
discontinuities, and
opportunities
Packaging – functional product
specifications
Marketing and selling strategy
Competitor analysis
Financials
Venture financing process
Fund to activity mapping
Fund sourcing
Investment selection criteria
Team & manageme
nt
Development of the doer and
decision maker skills
Selection of the best management support system at
lowest cost
Enable companies that have no product revenues and little expense history; incomplete team , good business plan, and the beginnings of product development with organization
restructuring, marketing strategies, product positioning and funding
Service offeringsGrowth (Broadening lines)
Growth
Redefining business model
to align to growth
Company alignment to
business goals
Redefine company
structure to growth
objectives
Building strategic alliances and
business partnerships
Technology & product
Identification of strategic market
intervention areas
Development of the business and
technology strategy to
achieve this goal
Top management participation
Development of strategic
technology development partnerships
Marketing &
competition
Customer value propositioning
Fighting fires
Market analysis & trends
Redefining market
development strategy
Financials
Operational efficiencies
Working capital to support
strategic growth plans
Team & manageme
nt
Formal professional management
structures
Re skilling & training
Customer focused
management orientation
Enable organizations to broadening production lines, focusing on the main product; management style transition from informal to formal
Service offeringsMaturity (Continuous innovation)
Growth
Continuous improvement &
innovation
Value based positioning
Best of breed institutionalization
Proof of concepts for change
Strategic partnerships
Technology & product
Continuous innovation systems
Intellectual property management system
Project portfolio and prioritization systems
Top management participation
Agile systems to market changes
Business linked research systems
Marketing &
competition
Market watch anticipating
needs
Maintaining and defending market
position
Developing new market niches:
seeking, expanding, global penetration
Reinventing market development
strategy
Marketing partnerships
Financials
Operational efficiencies
Shift from venture capital towards asset
based financing
Strategic research cost sharing with
alliances
Divesture of segments
Team & manageme
nt
Change & customer
relationship management
Business linked decentralized management
structures
Enabling to utilize the company’s established status on the market for further economic gain through continuous competitive
innovations .
Industry expertisePharmaceutical
Business plan • Investment proposal• Science &
technology• IP position• Business model &
market• Equity structure• Competitive
situation• Use of funds• Management
Investment focus fit • Investment focus• Competitive
advantage• Investment
rationale
Company profile• Science & expertise• Patent protection• Business model• Market need• Management team• Business sense• Strategy• Valuation & terms• Co-investorsz
Reality checking• Science• Patents• Infrastructure setup• Facilities• Employees• Management team• Work process
Financial model & evaluation• Size of financial
round• Investment
schedule• Milestone definition• Valuation
Term sheet• Liquidation
preferences• Dividends• Board
compensation
Formal due diligence• Science & IP opinion• Audited reports• Legal opinion
Investment documents• Translate term
sheet into legal documents
• Shareholders agreement
Provide consultation in fund / joint venture engagements
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