Indian companies trying to enter the software products business should create software products for the mass market and popularise them well, said Bharat Goenka, managing director, Tally Software Solutions.
"Most Indian companies are shy of addressing the mass market, and may find some of the issues presented here non-applicable, he said at the Nasscom 2002 seminar on Friday. "I believe Indian companies have the ability to tap the potential on offer," he added.
But there are many factors that may prove to be obstacles to these the companies, Goenka warned.
"You need to understand the cultural issues surrounding your customers and understand the space you want to enter," he said.
"The biggest worry you have with an unsolved sales problem is a successful marketing campaign. Tons of people will know all about you and your inability to fulfill their expectations. Second chances are rarely given," he said. You also need to be wary of piracy in select markets.
Also speaking at the session, Kamal Yadav of Morgan Stanley said: "If you want to succeed in the software products business, identify leading edge customers who will adopt your products fast. Companies can also look at joint development work with large companies to reduce the cost of development."
As another advice, Yadav asked companies to ensure lower initial investments and find ways to reduce time to market. They should also find out ways to ensure greater cash flow, he added.
According to Subash Menon, chairman and managing director, Subex Group, "Companies must ensure that they are conceiving a product that has potential in the global market and must have patient investors who are ready to wait till the time the product starts to generate money."
Pointing out that companies need to be careful in selecting investors, Menon said: "Rather than just an investor, the companies should look at strategic investors who can help them in multiple ways. It should also be an investor who understands the business well."
