EffiaSoft: bringing affordable and comprehensive cloud ERP for SMEs

Effiasoft is a Hyderabad-based startup launched in November 2012 which provides enterprise grade cloud Enterprise Resource Planning (ERP) solutions for SMEs. Having served as a technical architect and responsible for the development and implementation of ERP solutions and technologies in Oracle Corporation and Bernhard Schulte Ship Management for over a decade, Koushik Shee took a plunge into entrepreneurship along with Joydeep and Ramesh who shared a common vision to simplify enterprise solutions for SMEs.

With over 48 million SMEs in India, it has been growing at a stable pace of 4.5% for the last five years. In spite of all this, a majority of these enterprises find it very difficult to implement modern technology to increase their productivity. Research suggests that 65% of enterprises do not have effective information systems and 62% of them feel that access to modern technology is expensive.

“Even though the SMEs comprise a major chunk in the untapped market share for ERP implementation, they  are highly reluctant to adopt  ERP owing to a number of factors like heavy investments and maintenance costs, awareness about ERP, lack of proper resources, and major shift in work culture, etc.,” says Koushik as they hope to bridge this gap with EffiaSoft to empower SMEs with a world class comprehensive ERP on cloud, keeping in view all the above mentioned factors.
EffiaSoft claims to have built a highly customizable and intuitive product with integrated business analytics providing end-to-end solutions with zero upfront investment. It is available on the cloud on a SAAS model to bridge the gap between high-end over complex ERP products and low-end limited solution.
“Our innovative rapid development framework, personalization and template based business process management enables us to reduce development and implementation cost and time significantly,” says Koushik, Co-founder of Effiasoft.
“The main challenge was to achieve a right balance between the high end, complex, expensive ERPs and the low end, limited functionality ERPs.” Owing to the substantial efforts put in by Joydeep and Ramesh, the other Co-founders, they were able to achieve their goals.
EffiaSoft is recognized by Microsoft as a BizSpark startup and they are a part of Startup Village incubation program. After creating an affordable, comprehensive cloud ERP for SMEs, they are looking forward to bring ERP on the mobile platform to bring real-time update and notification features in the mobile app. This will enable the users to take quick action with last minute changes or updates using the mobile app.

They are also in the process of setting up their first overseas office in Silicon Valley, and expecting to be operational by early next year. You can reach out to Koushik here.

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Our journey with TechSparks

It was during a NSRCEL event in IIMB, sometime in early July 2012, that I first met Shradha! The event was about “How to Network” (quick test: What was the first thing that came to your mind when you saw “Network”? If you thought TCP/IP, you are probably not an entrepreneur (yet)! This is “People Networking” and she was the star speaker of the show! My friends and I had just started Little Eye Labs (in fact two of my co-founders were not even full-time at that point) and I was hesitantly planning on how to try my “newly acquired” networking skills on Shradha herself I was not too keen to stand in line and try and shake her hand for a few seconds, exchange cards and get a very cursory introduction, which will be forgotten the next moment! So I waited till everyone finished and when she was about to leave the room, walked up and introduced myself. I had a trump card up my sleeve. Her CTO, Aditya Kulkarni, was also my friend (and eventually became one of our co-founders), and he had already mentioned us to her. So I hoped and prayed she will remember me and the introduction would be easier.

It turned out Aditya had indeed done a good job introducing us and she also had a good memory. She remembered who we were and also what we do (somewhat) and my explanation about what exactly we do. Our pitch then was – We help developers understand how efficient their app is, with respect to power consumption! Battery is the biggest pain when switching to a smart phone. Developers need to care about battery, because their end users do.  Something about the pitch clicked with her and she said ‘You guys should participate in the upcoming TechSparks event! This sounds like the kind of idea we want to promote there’ and she moved on, leaving me confused and happy!
TechSparks! I had of course heard about it and in 2011, my co-founder Satyam had attended it and used to speak highly of it. But we were not really sure what it meant to participate in this event, especially given we were so new! Aditya was most supportive! ‘You guys should do this for sure! This is a big event and a great chance to showcase the company and the product in front of start-up industry veterans, including fellow entrepreneurs, investors, people from the established side of the IT industry etc’
The reason we were confused was that, while our idea has been forming in our minds for the past six months or so, the actual work for it had started hardly a month back! I was full-time into Little Eye only a couple of months before that and the first month was mostly spent reading about Android, and working out of Coffee Days (until they shooed me off by turning on loud music)
This is where Shradha stepped in again! In a follow up meeting that was set up to see how serious she was about us participating in TechSparks, she gave us this choice – “I think you guys have something that is worth being in the Top30 of the TechSparks list. But if you want to be in the Top15 and present on stage, you need to move beyond just an “idea” stage and get actual customers to use it and get some traction! If you guys can promise to get that before the final TechSparks event, we will put you in the Top15.”
The event was one month from that date and we had barely anything to show at that point.
What a challenge! And boy was it tempting! We had a quick meeting immediately after that (in our usual park next door – we couldn’t afford a conference room. We had two choices:
Go all out and prepare for this event, with the possibility that we could have a flop show in front of everyone on stage or
Take a more cautious step and maybe attend the next conference which will give us more time to prepare and do a good job!
We debated back and forth and finally choose the mad option – Lets do it! What’s the worst that can happen?
And boy did it turn out to be one of the best decisions we had ever made! We slogged through the next few weeks trying to get our product into an alpha state. A week before the event, we had a version of the product that was demo able. But now we had to get customer validation too. We then started reaching out to our contacts and Shradha also helped us get contacts!
Starting with Arvind Pani of Reverie, to Sriram Iyer of UMA, to my first manager Anantharaman of Adobe to my co-founder Lakshman’s contacts in Samsung, we went around town showing what we had built to all these companies which were building Android apps! And we got great feedback from everyone! Bolstered by all the feedback but still with a lot of butterflies in our stomach and with a great slide deck prepared by our 4th co-founder, we took to the stage!

Well … we did decently I think. We clearly didn’t win the event, but we made some good friends and met some well-wishers.  And we were bolstered by the fact that one of the judges rated us the highest (of course another marked us the lowest)
Overall our life changed completely for the better after that event. People started recognizing us in startup events, we started getting investor connects and GSF EIR and current GSF partner, Brij Bhasin, felt we were worth enough to be called for a second round discussion for GSF accelerator round (we had met him earlier after being introduced by the one and only Phanindra Sama of RedBus).
I always say that we had 3 phases in our startup life – The before/after TechSparks, before/after GSF and before/after meeting Sateesh Andra of VenturEast
I hope we can someday and in some way repay TechSparks and the entire crew @ YourStory for their support and belief in us! They made a world of difference to us!

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Delhi based SaaS hiring enabler GrownOut raises funding from Matrix Partners India

Delhi based GrownOut, a business-to-business startup based on a SaaS model has raised its first institutional round of founding from Matrix Partners India. GrownOut will use the funds for deepening its analytics expertise, product development and growing its business. They have earlier raised seed investment from Outbox Ventures. This is the second investment from Matrix Partners in the past 2 weeks in Delhi region, earlier they invested in Limetray started by co-founder of Foodpanda.

Delhi-based startup Grownout attempts to make hiring easy, quick and fun

Finding and hiring talent is becoming a bigger problem for every company globally. Inspite of many hiring platforms, referral still remains the most preferred source of hire for most companies. Referral candidates are generally hired faster and stay at companies much longer compared to any other recruiting medium. Grownout is out there in an attempt to make this process as smooth as possible. Grownout ensures that the company gets the network of all of its employees first hand and do not need to depend on the employees to reach out to them. The startup’s vision is to productise such techniques and serve their clients using online platforms and emerge as a primary hiring tool for the industry.
When we last spoke to the team, they were focussing only on Indian market and had 12 B2B active users for the first version of their product that was released in March 2014.
GrownOut was started by Sumit Gupta and Harsimran Walia. Sumit was born and brought up in a small town in Rajasthan. He graduated in Computer Science & Engineering from New Delhi. Harsimran is from Chandigarh. After completing mechanical engineering from IIT Delhi, he worked with Oracle and then Macfeebefore taking the entrepreneurial plunge with GrownOut. The transition from a well-paying regular job to running a startup was a little rough for Harsimran. After all, you don’t get a hefty paycheck in your account anymore. But the adrenaline rush of being an entrepreneur and the fun of doing what you love soon outweighed the initial pangs. GrownOut has been deployed at several leading companies including Quikr, Ola, Appiterate, Stayzilla and Winshuttle amongst others.
Hiring is a problem everyone is trying to tackle and overcome but differently, sharing more about their effort and vision forward Sumit says,

We are building the next generation referral hiring platform to make recruiting more efficient and cost-effective. Despite incredible innovations in technology in the last decade, recruiting still remains a fundamental challenge in the industry and an unsolved problem. We believe there is a disruptive market opportunity which can change old methods and make hiring a painless process. Our partnership with Matrix Partners will provide us the necessary support to realize our vision.

India still hasn’t seen any major innovation in recruiting products that are sector agnostic, most of it is still very traditional. Believing in vision of Grownout and investing in the team, Tarun Davda, Director, Matrix India shared,

The recruitment market in India is large and has traditionally been served by staffing agencies, job-boards and career sites. However, HR heads of companies still struggle with a barrage of unsuitable resumes, long recruitment cycles and candidates that are a poor-fit with company culture. We believe there are several opportunities to solve the hiring needs of Indian SMBs and Matrix Partners India will make multiple investments in this space. Referral hiring – the holy grail of recruitment results in shorter hiring cycles, lower hiring costs and higher employee retention. We share Sumit and Harsimran’s vision to deliver a truly world-class solution for referral hiring to Indian SMBs.

Technology adoption is one of the biggest challenges before GrownOut. “Most of our end users are non-technical and like to stick to their traditional methods, which creates hurdles in making them realize the value that GrownOut provides them,” Sumit says.
Building a strong team is a huge challenge for all startups but as that’s GrownOut core competency, it was a walk in the park for them according to Sumit. “We were the first to take advantage of the GrownOut dream that we are living,” he says.
GrownOut was founded with a vision of solving the hiring requirements of the industry using the latest available technologies. The company utilises well researched techniques of referral hiring to make candidate sourcing easier and more efficient.
With the help of GrownOut, organisations can harness the power of their employee’s professional network to recruit high-quality candidates.

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How does your computer know how much ink is left in the cartridge?

If you bought your ink by the gallon instead of tiny amounts, you might perish from sticker shock.

Depending on the make and model of your printer, you could easily drop $100 or more for a new round of cartridges – all so that you can continue using a printer that may have only cost you $89. So when you want to maximize the number of printouts you make with that pricey ink, you may find yourself wondering exactly how the printer knows each cartridge is about to run dry.

Before we delve into specifics, it's worth knowing that manufacturers purposely program their printers to stop using cartridges that are getting low on ink. That's because if cartridges were to run totally dry, the plastic cartridge may become too hot and eventually damage or destroy your printer's printhead. In other words, you'd be out a printer instead of just ink.
That said, considering the price of ink, you have a vested interest in squeezing every last drop of the stuff out of each cartridge. Ink may cost anywhere from $13 to $75 for a single ounce. That's -- cough -- nearly $10,000 per gallon [source: Consumer Reports].
Ink is exorbitantly priced in part because printer manufacturers are giving away their sophisticated printers at a really low price in the short term, knowing that they'll make their real profits on ink in the long term.
All of which leads us to this: If ink is such a fabulous cash cow for printer developers, they'd clearly have a reason to fudge on low-ink reminders. After all, if you unknowingly replace cartridges when they still have a usable level of ink inside them, the companies that sell the ink will wind up with significantly higher revenues.
But these companies aren't necessarily out to get you. On the next page you'll read more about low-ink reminders and how you can monitor whether you're getting your money's worth.

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5 performance review mistakes to avoid

5 performance review mistakes to avoid

Performance reviews are instrumental in improving employee productivity and morale. Effective feedback on employee performance is not just important for the employee but is critical for the organisational growth also. It is imperative that these are handled professionally and in a mutually beneficial manner
Performance review is a very crucial exercise. The way reviews are dealt with determines how useful the feedback is for employee development. For a manager, who is responsible for a large group of employees, it might be easy to make mistakes which drastically impact the quality of performance reviews. Deepika Pillai, human resource director, Xavient India shares five such performance review mistakes which must be avoided:
Once a year review: Irrespective of the frequency of performance reviews, it is advisable to share feedback frequently and not wait for the annual review to happen. Review process should be continuous and regular. If employees do not receive regular feedback on their performance, it is difficult for them to meet the required standards. Employees should be given sufficient feedback so that they have a fairly accurate understanding of how they’re living up to the expectations of the organisation and their immediate supervisors.
Not preparing well: This is one of the worst things one can do as a manager. It sends out a bad message to the employee that his review is inconsequential. One should decide beforehand on the kind of questions to be asked, feedback to be given, future goal setting and other related factors. It is important to have data and performance logs handy and not just rely on memory while conducting a review.
Not being truthful: This is the most common mistake managers make. The feedback should be specific and employees should clearly understand areas they need to improve on. Employees should be told the truth about their performance, be it negative or positive. It is better to give feedback regularly. Terminating someone without giving regular updates on the performance and improvement areas is a bad management practice.
No recognition: It is a very simple thing to do but most managers tend to ignore it. A simple pat on the back can do wonders to an employee’s morale. Recognition, if given timely, can be very encouraging and motivating for people. Most of the employees these days are over-worked and under-appreciated. Recognition forms a very essential part of the performance review exercise. A small ‘well done’ and ‘thank you’ can go a long way.
Ignoring aspirations: A performance review is not just the metrics of past performance but also a forward-looking exercise. Employees are concerned about their personal growth and development and this is the opportunity for managers to show them that they too care about it. Most managers are more worried about short-term project goals and forget to look at the employee’s aspirations and expectations. It is important to probe and understand what the employee’s goals are and how as managers you can help them in achieving those.
It is important to remember that as a manager even though you might be giving out dozens of evaluations, an employee only gets one. It might be tiresome, but if done rightly, it can be an effective and powerful way of building loyalty and improving employee efficiency at no extra cost.

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5 ways to deal with a biased boss

5 ways to deal with a biased boss

You worked long hours and put your heart into your last assignment, but that just didn’t cut it with the boss. No matter how hard you try, your boss, who plays favourites, never thinks you’re good enough for the next promotion. ET guides you on how to cope with such a situation. 

1 Set a Rapport with the Super Boss 

If your boss is repeatedly favouring others over you, build a ‘skip level relationship’ with the super boss. The annual appraisal is a process of moderation and is expected to take into account assessments conducted by both. So it’s important to let the super boss know about your performance, says Mohinish Sinha, director and leadership and talent practice leader, Hay Group India. 

2 Keep Records of Your Work 

Start keeping records of emails and documents. Swati Maheshwari, an employee at an FMCG firm, learnt it the hard way after succumbing to pressure and quitting in 2011. “I should have challenged my boss professionally with facts as it was never about my abilities,” she says. 

3 Use the Boulder Strategy 

Few employees go in for this, as it takes courage, says Sinha. The strategy refers to an honest discussion with your boss about your work, wherein you outline your goals and objectives and seek your boss’ assistance. “Ask for periodic reviews where you ask what you’re not doing right,” says Sinha. 

4 Continue to Work Hard 

A 2011 study by Georgetown University’s McDonough School of Business and research firm Penn Schoen Berland showed 23% of around 300 senior business executives in the US admitted to practising favouritism in determining promotions. How should you overcome such a challenge? Through hard work. 

5 Network Across Teams 

Networking across teams help build bridges within the organisation, says Padmaja Alaganandan, leader of PwC’s people and change practice. “If one reaches out to other teams, they would be aware of what you do, and can vouch for you,” she says. Networking can also help in shifting from one team to another, instead of quitting.

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Top 5 jobs that pay attractive salaries

Top 5 jobs that pay attractive salaries

Some of the most sought-after job profiles in India Inc require niche skills, are at senior levels – often a level below the CXO — and generate crore-plus salaries. ET examine these profiles.

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Top 5 benefits of earning IT certifications

Top 5 benefits of earning IT certifications

As the Information and Communication Technology (ICT) domain evolves, demand for IT skills is also changing. For IT professionals to be relevant to the changing scenario, they need to constantly upgrade their skills
Up-gradation of skills by certifications or online learning courses can offer IT professionals a number of benefits including higher salary package and better career growth. With a globally recognised certification attained from an accredited certification training provider, IT professionals can showcase their abilities to deliver results in a dynamic IT-driven business environment.
Vara Prasad Rongala, managing director, Invensis Learning talks to TimesJobs.com about the benefits IT professionals can reap by constantly upgrading their technology skills:

• Expands career prospects: According to NASSCOM’s ‘Talent Demand Supply Analysis – Indian IT-BPM Industry’ report, the Indian IT-BPM industry will employ more than 400,000 professionals every year by 2020. Gartner, a technology research firm, predicts that demand for big data jobs will reach 4.4 million globally by 2015, but only one-third of these will be filled. A globally-recognised certification in technology or management practices can distinguish an IT professional’s resume from those of uncertified candidates and enable him or her to move on to better job opportunities, not just in India, but around the world.

• Improves work performance: An IT certification training program from an accredited certification training provider can educate professionals in global best practices for IT practice areas. With knowledge about integral success factors, potential challenges and risks and techniques that deliver results, certified IT professionals can enhance their work performance and productivity, provide solutions for business problems and increase their contribution to their organisations.

• Enables specialisation: IT certifications demonstrate that a professional has honed his or her knowledge and skills in a particular domain and is interested in becoming a specialist. This building of expertise, particularly in an emerging domain, can prove to be an advantage when applying for an opening for a new project in that practice area.

• Opens up senior positions: As the skills required for IT leadership roles evolve, certifications that help to develop business understanding and management skills such as for IT service management, project management and program management, can help IT professionals to move up the ladder to senior roles and greater responsibilities.

• Builds confidence: By imparting knowledge about best practices in the domain, certifications can give IT professionals the confidence and capabilities to adjust to senior positions better.

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Tips to boost productivity on a stressful workday

Tips to boost productivity on a stressful workday

Stress is a common workplace adversity all employees face every day. The reasons or levels may differ depending on the hierarchy or one’s level in the management cycle…
Stress has a direct impact on an employee’s productivity. The success and failure of an employee as well as the organisation depends on how well employees and employers manage stress. As a matter of fact, stress is a common workplace adversity all employees face every day. The reasons or levels may differ depending on the hierarchy or one’s level in the management cycle. Overcoming stress is not easy to do under work pressure. But be assured, it is not impossible either.
During a recent High-Tea Session, a career centric chat platform powered by TimesJobs.com, Rajat Jain, MD, Xerox India shared that stress is pervasive at all levels. “It just happens for different reasons depending on the level of one’s career. In the early stages of your career, when you are less experienced even small things cause a lot of stress.” With time, when one becomes experienced, one learns to handle stress which comes owing to bigger reasons. It will be right to say that stress becomes part of a continuous management process.
In the session, Jain was queried on how he managed stress being the MD of a company? To this, Jain answered that the foremost thing for a leader to handle stress is to have a great team. It is most important to empower one’s team with resources to do their job.
“Helping them grow to their full potential has given me the confidence that goals will be met and that helps in managing the stress. Apart from this, managing my time well, getting to a good work-life balance and indulging in other interests apart from work, helps manage workplace stress,” Jain added.
Tips to boost productivity on a stressful work day:

1. Start with a to-do list in the morning
2. Prioritise your tasks
3. Delegate where possible
4. Remain upbeat and positive
5. Keep some time for lunch and fun
6. Keep time aside for unanticipated tasks
7. Get creative and learn from others experience
8. Plan ahead for the next day

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Next-generation iPad Air to be thinner, won't have 16GB option: Report

The report did not include pictures, but did describe some of the design differences in as much detail as possible.

Technology columnist Michael Andrew and his team at The Michael Report claim to have obtained photos and illustrations of the second-generation iPad Air from sources within Apple.

The report closely lines up with rumors we've heard about Apple's forthcoming iPad, which is expected to debut on October 16. Andrew didn't publish the pictures, but did describe some of the design differences in as much detail as possible. Here's an overview of the changes outlined in his post:

* The new iPad Air will reportedly come with Touch ID built into the home button, just as rumours have indicated.
* It will also come in a gold colour option, according to the report.
* The new iPad is said to come with an 8MP camera instead of the 5MP camera on the first-generation iPad Air.
* As expected, the report says it will run on an Apple A8 processor and will come with 2GB of memory as opposed to the 1GB of memory found in the current iPad.
* Apple may get rid of the 16GB option and could instead offer 32GB, 64GB and 128GB storage variants.
* The design is said to be almost identical to the current iPad Air, but the new tablet will be 0.5mm thinner.
* Expect to see one row grill speakers rather than the two row grill on the current iPad Air.
* The mute/vibration switch is said to be completely gone in order to keep the design super slim. The volume buttons are also more recessed.

We're expecting to hear more about Apple's next iPad later this month.

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Facebook's WhatsApp acquisition now has price tag of $22 billion

The acquisition, which Facebook announced in February and recently received regulatory approval in Europe, underscores the sky-rocketing values of fast-growing Internet startups, and the willingness of established players such as Facebook and Google Inc to pay out for them.

Facebook Inc (FB.O) closed its acquisition of mobile messaging service WhatsApp on Monday, with the final price tag rising an additional $3 billion to roughly $22 billion because of the increased value of Facebook's stock in recent months.

WhatsApp founder Jan Koum will receive nearly $2 billion in stock, vesting over a four-year period, as an inducement for him to stay with the company, according to a regulatory filing on Monday.

The acquisition, which Facebook announced in February and recently received regulatory approval in Europe, underscores the sky-rocketing values of fast-growing Internet startups, and the willingness of established players such as Facebook and Google Inc (GOOGL.O)(GOOG.O) to pay out for them.

WhatsApp, which has more than 600 million monthly users, is among a new crop of mobile messaging and social media apps that have become increasingly popular among younger users. Snapchat, a privately owned mobile app that allows users to swap photos that can disappear after a few seconds, is raising money at a $10 billion valuation, according to media reports.

Facebook paid $4.59 billion in cash and 178 million shares of its stock for WhatsApp, as well 46 million of grants in restricted stock units for WhatsApp employees that will vest over a four year period. At Monday's opening Facebook share price of $77.17, the deal translates to roughly $21.8 billion.

Koum, who will serve as WhatsApp Chief Executive and become a Facebook director, will earn a $1 annual salary, similar to Facebook Chief Executive Officer Mark Zuckerberg. Koum will receive 24.9 million Facebook restricted stock units, worth roughly $1.9 billion at Monday's share price.

WhatsApp, which has more than 70 employees, will continue to be based at its Mountain View, California, location.

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Cognizant acquires digital marketing firm Cadient for $30 million

Cognizant has acquired digital marketing company Cadient Group, that serves a broad spectrum of life sciences companies, for an estimated USD 30 million.

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NEW YORK: Nasdaq-listed IT company Cognizant has acquired digital marketing company Cadient Group, that serves a broad spectrum of life sciences companies, for an estimated USD 30 million.

"In an increasingly competitive industry with many digitally active stakeholders, the acquisition of Cadient Group will complement Cognizant's digital and interactive solutions capability," Cognizant's vice president and global markets leader, Life Sciences Practice Shankar Narayanan said in a statement.

Cadient clients are spread across pharmaceutical, biotechnology, consumer health and medical device industries.

Cognizant has large presence in India. Its Healthcare and Life Sciences Practice group will manage the acquired company.

When contacted about the deal size, a Cognizant spokesperson said, "Cadient's revenue is around USD 20 million and we paid approximately 1.5 times of the revenue."

Cognizant serves 28 of the top 30 global pharmaceutical companies, 16 of the top 20 health plans in the US, four of the top five pharmacy benefit management companies in the US, nine of the top 10 biotech companies, and 12 of the top 15 medical device companies.

The company's has reported USD 8.843 billion full year revenue for 2013. Annual revenue of its Healthcare and Life Sciences Practice group is about USD 2.5 billion.

Congnizant see this acquisition will further strengthens and expands it's digital marketing capabilities. The terms of the transaction were not disclosed.

Pennsylvania-based Cadient Group has more than a decade of experience in providing digital strategy, marketing, and technology and analytics solutions to industry leaders and emerging companies in the life sciences industry.

As part of this acquisition, more than 100 digital specialists-with expertise across brand strategy and planning, content development, user-centered design, multi-channel analytics, and digital, social and mobile marketing-will join Cognizant.

This acquisition also brings to Cognizant digital assets and intellectual property of Cadient.

"Becoming a part of Cognizant uniquely positions us to deliver integrated solutions to life sciences marketing and sales teams around the world," Cadient Group president and CEO Stephen Wray said.

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Can Hewlett-Packard survive the tablet trend?

Hewlett-Packard, the Silicon Valley stalwart that was once the world's biggest seller of personal computers, is splitting off its PC and printing businesses.

SAN FRANCISCO: Personal computer sales have been in a slump for years, as customers flock to increasingly powerful smartphones, tablets and other mobile devices. Now Hewlett-Packard, the Silicon Valley stalwart that was once the world's biggest seller of personal computers, is splitting off its PC and printing businesses. It's the latest shakeup in a tech industry that's being reshaped by the mobile revolution.

IBM sold its PC business years ago. Dell took its struggles private. Can an HP spinoff focused on personal computing thrive?

"There's a significant transformation going on in that industry, and maybe now HP can make its move," said Forrester tech analyst Peter Burris, one of several analysts who say the iconic tech giant will need to get better at building and selling mobile gadgets if it wants the new spinoff to succeed. HP has stumbled in previous efforts to sell those devices.

HP's split is a sign that CEO Meg Whitman sees more growth and profit opportunity in selling commercial tech products, including data center hardware, business software and cloud services, some analysts say. That's the business she plans to lead, as chief executive of a new company dubbed Hewlett-Packard Enterprise.

That puts more pressure on the HP Inc spinoff, which will be led by current PC and printing executive Dion Weisler as CEO. Though it was once the world leader in both segments, HP is now No. 2 to China's Lenovo in PC sales.

Tablets now out-sell laptop computers. And no other major US tech company is focused on selling only PCs. Apple Inc's growth in recent years has been fueled by the phenomenal success of its iPhone and iPad devices. Dell also sells commercial computer hardware and software. Even Lenovo is purchasing IBM's server business and taking over the Motorola smartphone division from Google Inc.

PC sales aren't going away entirely, to be sure. There are still some cases where PCs are more useful than smaller-screen devices, especially in the workplace, said Bob O'Donnell of TECHnalysis Research. The industry sold more than 310 million desktop and laptop computers last year, and one out of six were sold by Palo Alto, California-based HP. But global sales fell 10% in 2013 and are likely to fall another 4% this year, according to the IDC research firm. PC sales should level off in 2015, forecasts O'Donnell.

"They can be profitable," he said, "but it's a stable, flat kind of market."

Printer ink has been a major source of profit for HP in years past. But printing also is a stagnating business, as more people store photos and files online and view them primarily on their phones and tablets. Even so, tying the printing business to PCs should provide a stable source of revenue for HP Inc for some years to come, said tech analyst Patrick Moorhead of Moor Insights and Strategy.

HP also could expand that business to include 3D printing systems and home networks for internet-enabled thermostats and other gadgets, since many printers today are part of a home network, he added.

Jettisoning PCs doesn't necessarily make Hewlett-Packard Enterprise is a slam dunk. Analysts say HP has some good data center products, but Whitman faces challenges in upgrading its commercial software and technology services businesses.

"Does this mean a new dawn is here for Palo Alto?" asked Burris. "No, it doesn't. It means that HP is going to have to do a lot of hard work to prove itself."

Hewlett-Packard has posted revenue declines in 11 of the past 12 quarters and laid off tens of thousands of people in recent years as it attempts to cut costs. During its most recent quarter HP reported revenue of $27.6 billion, a 1% annual gain. It marked HP's first year-over-year increase in quarterly revenue since late 2011. Printers and PCs contributed roughly half the company's annual revenue, with the rest coming from commercial computer systems, software and technology services.

HP first considered breaking off the PC unit three years ago, when Leo Apotheker was CEO. But the idea was controversial and Whitman rejected it after she took his place in 2011 and launched a lengthy turnaround. She said Monday that HP has now shored up its business enough to support the split. The company believes the two new units will be worth more separately and be able to grow more quickly apart than they can together.

HP is expected to complete its latest round of layoffs, between 11,000 to 16,000 people, this month. Total job cuts will now stand at 55,000, up from a planned 50,000. In an interview with CNBC Monday, Whitman left open the possibility for further layoffs as the separate businesses determine their cost structure going forward.

HP shares rose almost 5% to close at $36.87. The stock is up nearly 32% since the beginning of the year.

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4 reasons why digital media is not going disrupt the consumption of movies

There is no denying the fact that digital industry in India, as a whole, is growing. Ad spends by brands are increasing albeit slowly, more and more users are accessing it thanks to the internet penetration, there is a new generation of consumers aka millennials, and more and more businesses are taking shape in the online space. The signs are positive.

If we focus on the media and entertainment industry, digital consumption of content is also on the rise, be it in the form of video capsules, some of which go ‘viral’, or repeat telecasts of TV shows or other native content created by YouTube channels.

But what about the movies? Is the digital landscape going to disrupt how movies are consumed?

The answer, in my opinion, is No.

Disruption and digital are the new buzzwords but they are often thrown around without understanding the relevance vis-à-vis the industry dynamics.

Apart from the apparent reasons of limited broadband penetration and slow speed of the internet, there are a few critical reasons why the internet may not be a severe competition to cinema halls explained below in order of importance –

The 70mm experience

Watching movies in a cinema hall is more about the experience than just about the availability. It’s the combination of sitting in a dark hall and watching the movie on a big screen with superior picture/sound quality.

It’s also about the factor of social viewing. How many times does one go to a cinema hall alone? Not very often.

We either go with our friends, partner, spouse or family. It’s an integral part of our idea of ‘taking a break from work’ and ‘outing’.

Theaters, in fact, compete more with entertainment parks than with the internet (paid form of downloads) as both of them are fighting for the entertainment share of a family’s monthly expense.

Competition

The biggest competitor for digital releases will not be cinema halls. It will be the illegal downloading sites, especially from the Indian context. Would the majority prefer to pay for content released digitally when the same would be available for free downloading in a couple of days? What is the value addition?

The question then becomes one of changing habits. We are so used to free content online that it will be nearly impossible to expect the same set of consumers to pay for the movie to watch it online. This is one of the reasons why the Home Video / DVD market share for movies in India was never a significant revenue source compared to how it was in the West.

Piracy affects theaters as well but it will be more detrimental if films start releasing digitally only.

This is more of a cultural-cum-habitual issue than it is to do with technological laggardness.

The numbers don’t add up

A movie can take anywhere between INR 15 million to 1000 million to make. Add to that the cost of marketing. In the current eco-system, there is negligible chance of recovering that amount of investment. Why?

The number of online transacting consumers in India is 25 million. Although not directly correlated, it gives a fair idea that we have time to go to and even reach the stage where there is a substantial sample size that has the ability (let alone the desire) to pay for a movie online such that it can make its money back.

Misleading comparison of TV with films

The whole discussion started when YouTube channels started getting popular to the extent that now they have become a threat to TV. But the only similarity between TV and films is that both deliver content. The dynamics of both are vastly different.

a. While TV depends on brands and advertisements (not subscriptions) for its revenues, films depend on the end consumer for purchasing the tickets.

b. TV shows are based on appointment viewing and with YouTube, one gets the option of convenience of viewing the shows as and when they wish to. But when it comes to films, the option of choosing to watch a particular movie at a particular time slot already exists.

c. TV shows have 8-10 minute ads for every 20 minutes show which gives an opportunity for a viewer to switch to online where the ads are only for a couple of minutes. Films have no such ads and the interval at a cinema hall is not a complaining factor. Besides, the attention span of the online consumer suits content of a shorter duration for impulse viewing and not for feature length films of 100+ minutes.

How serious (or not) a threat is YouTube to TV?

We don’t know. Would a ‘Comedy Nights with Kapil’ or an ‘Emotional Atyachaar’ be as successful if it were released only on YouTube? We don’t know and that’s a matter of a different discussion.

But would a ‘Vicky Donor’ or ‘Dhoom 3’ make as much money online as they did at the box office? The answer is a resounding No.

When TV became popular, it was thought to disrupt the movie going experience in the 1940s-50s in the West. Gradually, it has become a healthy source of supplementing revenue.

Digital is likely to play a similar role. There is promise of the platform in providing significant supplementing revenue but it most likely will not disrupt the multiplex industry.

Think about it. Just because you can order food at home, does that mean restaurants will cease to exist in the future?

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eCommerce and storytelling: Product, Packaging and Content

The Dalal Street in Mumbai was converted into a Startup street this Saturday with TechSparks Mumbai hitting the town. There were tracks across the domains but one that raised some interesting questions around eCommerce was the “Storytelling as a powerful tool for brand creation” by Sussane Khan and Preeta Sukhtankar.  Brainchild of Preeta, The Label Corp is an e-commerce company in India that taps into the expertise of celebrities and aims to build India’s first “editorial” e-commerce brand. It has three brands called The Home Label with Suzanne Khan, The Closet Label with Malaika Arora Khan and The Trunk Label with Bipasha Basu.

Yes, they’ve got all the big names in the industry and it gives an instant reach but there is a story behind it and their way of eCommerce has a few lessons for niche eCommerce companies. Preeta has been in the media and branding space which helped her in building a network which she could leverage on starting up. In an earlier interview, Preeta had told us, “I believe that content is disguised form of marketing. They go hand in hand.” This statement says a lot about how an eCommerce company can be built, how carving a story around a product can attach so much more value to it and make it special for the customer. (There is also a clarification though- storytelling is not a way of deceiving users to buy. It is more of a process that naturally builds when you cherish your products you have and present them in a certain way.)

Product, Packaging and Content

Preeta and Sussane narrated the story of Maya- a young, trendy and independent Delhi woman who has a taste. The Label Corp identifies with the needs and wants of Maya, and position the product accordingly. They know their market and the fact makes it easier to tailor make products.

In the grander scheme of things as well, India is at a juncture where the eCommerce industry is well into the consolidation phase and it makes more sense to go with niche eCommerce. When you know an audience, building a community, reaching out to them and measuring marketing spend becomes easier. (The Label Corp is not typically a niche eCommerce company as it deals in the wider spectrum of apparel and is more of an exploration to find ways in which a woman can buy better online)

Once you’ve decided to walk the eCommerce line, the product, packaging and content becomes extremely important. The Label Corp shared an example about an old, rusted vase like product they have which is positioned as a premium rustic iron dinner table accessory. There is a market for such products. To take a different example, if you’re into music related products, you can package them on a theme or show a different use case for a particular instrument and package it accordingly.

The other part alongside packaging would be the content. Closely interwoven, building a story around the product is a key. Different mediums have come in and using them intelligently to reach out to the target market can help a lot. The Label Corp has made videos around products or just the feel of range of products. For companies in other sectors, say fitness, content can be generated about ‘how to do a particular exercise’ which will embed a brand message alongside. The key is to provide value to your customers.

The Label Corp had some insightful takeaways and I’m sure there would be many more insights with other players in the niche eCommerce space. Do share them with us in the comments.

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