In the first week of December, Cisco India held its analyst summit to share its 2014 strategy. Given low market morale following the sharp decline in Cisco India’s Q1, FY 2014 revenues, the event was timed well to reinforce Cisco’s ongoing commitment to the Indian market. Amongst many forward-looking statements made at the event, one message stood out – target the rising midmarket (which Cisco defines as companies with 100-1000 employees) to drive growth in India. Following are the key initiatives that the company outlined to grow its mid-market business:
- Expanding channel network in tier 2 and 3 cities. Cisco is focusing on expanding its channel ecosystem in two ways – working with independent software vendors (ISV) to jointly develop vertical-specific solutions aligned to midmarket needs; and promote Cisco’s cloud-based offerings through hosted collaboration services (HCS) partners. This is a solid strategy given the physical proximity and influence that these local partners have on firms in smaller cities.
- Incentivizing partners and equipping them with tools to boost sales. Cisco is offering handsome incentives to its channel partners focused on midmarket. Cisco is also offering a mobile customer dashboard application to partners that provides key details regarding the account, such as organizational information, past purchase history, preferences, etc. to help ensure an effective sales engagement.
Disclaimer: I am not a political analyst, and this post is not intended to promote any political party.
December 8 was an historic day for Delhi: The Aam Aadmi Party (AAP), which arose from the anti-corruption movement of Anna Hazare a year ago, achieved a spectacular result in Delhi’s assembly elections — one far beyond anyone’s expectations. The party won 39% of the total assembly seats, sending Congress (which is India’s oldest party and had ruled Delhi for the past 15 years) plummeting to third place.
AAP’s rapid rise and strong showing highlight a fundamental shift in India’s political system toward citizen engagement and empowerment, especially in urban and semiurban areas. In particular, India’s youth are ready to take risks to realize their hopes and aspirations. About 350,000 18- and 19-year-olds have recently joined the voter rolls and saw in AAP the possibility to change the existing political system. And AAP was in tune with them, putting volunteers to work on social media platforms to connect with citizens on issues like corruption.
Indian CIOs should sit up and take heed, because just as empowered citizens can disrupt traditional politics, digitally empowered customers will disrupt businesses in every industry. Forrester calls this the age of the customer, and we define it as:
A 20-year business cycle in which the most successful enterprises will reinvent themselves to systematically understand and serve increasingly powerful customers.
You must prepare to deal with this disruption and understand what you must do to make your organization customer-obsessed:
India is going through a tough time: Poor policy, delayed reforms, the free fall of the rupee against major currencies, multibillion-dollar scams, and political gridlock are all negatively affecting the country’s growth. However, we anticipate the Indian economy will start picking up — albeit at a slower rate — in 2014, mainly due to good monsoons, improving exports, and huge infrastructure projects that should launch once a new central government is in place.
Consumer mobility in India and China is flowing into enterprises. Recent Forrester survey data shows that nearly three in five IT execs and technology decision-makers in these countries — 58% in India and 57% in China — plan to increase their spending on mobile software (including applications and middleware) in 2014.
India has leapfrogged Australia/New Zealand and now leads the Asia Pacific region in terms of expected mobile software spending growth. China has made the biggest move over the past year, jumping from eighth place to second.
We believe that the high growth in mobile software spending in India and China is primarily due to: