Zinnov leveraged insights gathered from 5000+ SMBs over the last year to assess the digital opportunity across geographies and industry verticals. This report studies the key enablers and business segments that will undergo disruption due to the digital revolution. Digitally empowered SMBs will leverage technological advances to enhance efficiency and impact India’s GDP, Growth and Employment.

1. Digital SMBs
Powering India into the Future…
– January 2015

2. Conceptualizing a ‘Digital SMB’…
2
‘Digital’ SMB: An SMB leveraging digital technologies across business processes thus driving top line growth, maximizing output
and deriving cost efficiencies
A modern ‘Digital SMB’ is powered by solutions touching multiple business levers
Operational
Excellence
Risk
Management
Workforce
Enablement
Customer
Acquisition
SMB
2.
4.3.
1.
Hg
Compared to enterprises, SMBs adopt digital technologies differently
Digital solutions for SMBs need to
reflect 5 key characteristics
Op-ex model with immediate
payback
Cap-ex heavy solutions1
Mobile First solutions
Requirement of large IT
infrastructure
2
Micro-vertical specific solutions
Generic enterprise solutions
lacking vertical centricity
3
Enable end-to-end workflow
Multiple functional solutions
addressing specific workloads
4
Prioritization of ease over features
Complex, feature rich solutions
with high learning curve
5
SMBs face multiple challenges while
adopting solutions typically meant for
enterprises
Successful Digital SMB Solutions impact multiple business levers and enable end-to-end
workflow
Discovery platform;
Appointment Booking;
Practice Management
Access to passengers;
Automated Payment;
Vehicle Tracking
Connecting with potential
tourists; Booking and
schedule management
Source – Zinnov Primary Research and Analysis

3. Zinnov leveraged insights gathered from 5000+ SMBs over the last year to assess the digital
opportunity
3
Which SMBs to
target?
12 Mn SMBs with high
degree of tech
influence
Why talk about
them now?
Nexus of enablers
driving SMBs to go
digital
What solutions do
they need?
Solutions addressing
strategic business
challenges
How big is the
opportunity?
USD 26 Bn of
opportunity across
solutions in 2020
How to tap the
opportunity?
Interventions across
product, business
model and outreach
What is the
impact?
By 2020, impact of
USD 1 Tr on GDP; 126
mn on employment
A B C D E F
Understanding the Digital SMB Opportunity
Source – Zinnov Analysis

4. India houses a massive base of tech influenced SMBs across
verticals
4
Which SMBs to
target?
116 Mn
GDP
Contribution
Total
Exports
Total
Employment
Collective contribution of India’s SMBs
51Mn
strong SMB base in India
Micro Enterprises
(<10 employees)
96.3%
Small Enterprises
(10-100 employees)
3.4%
Medium Enterprises
(100-1000 employees)
0.3%
Segmentation of Indian SMBs – by Size
Distribution of Tech-
influenced SMBs across
top 8 verticals
18%
Retail
19%
Professional
Services
4%
Auto & Auto
Ancillaries
8%
Real Estate
9%
Education
10%
Restaurants
& Hospitality
14%
Travel &
Logistics
14%
Manufacturing
38% 40%
A
Distribution of SMBs by level of tech influence
‘Tech Influenced’ SMBs: 40%
2015
~90%
2020
L4: 5 Mn
L3: 12 Mn
L2: 14 Mn
L1: 20 Mn
L1: Access to digital
infrastructure
Devices/connectivity
L2: Use of consumer
centric services
Such as messaging, email
etc.
L4: Business workflow
productivity tools
Business centric solutions and
services
L3: Digital discoverability
of businesses
Company Websites, business
listings, etc.
Source –MSME, Press Articles, Zinnov Analysis

5. Nexus of 3 enablers are increasingly driving SMBs towards
digital enablement
5
Why talk about
them now?
Access to Enabling Infrastructure Availability of Solutions & Services
Push from Customers &
Ecosystem Stakeholders
Exploding smartphone usage
Availability of low
price devices
Smartphones & tablets
available for as low as
$40-80
Easy access to internet
Internet adoption
in SMBs to grow
exponentially
<10Mn
Users
2014
>30Mn
Users
2020
2X increase in average internet
speed in 3 years
>70% price reduction in average 3G mobile
access prices over last 3 years; internet
access expected to become free
Enterprise grade solutions becoming
affordable
Basic versions available for
free access
Google Apps
SMBs realizing benefits of Cloud enablement
of solutions
50% reduction in ownership cost and deployment time
70-75% cost saving with advantages like scalability, set-
up time, etc.
Mobile app ecosystem thriving
Mobile app downloads
in India to increase
100Mn
Monthly app downloads
2014
400Mn
Monthly app downloads
2020
Easy Mobile App
development
<3 hours
Required to build a
functional app
9,000+
Indian Mobile app development
companies
Consumers spending more time on
the internet
140Mn
Hours
2014
1500 Mn
Hours
2020
Internet aiding customer
purchases
Growing use of digital
medium by SMBs
1,125 Million searches by
consumer in FY 2014
Ecosystem stakeholders and government
initiatives aiding SMBs
50,000+ SMB sellers on-
boarded by top 3 e-commerce
players
Flipkart, Snapdeal offering
easy access to loans for SMBs
through partners
Easy access to loans Enabling SMBs to sell online
Digital India Initiative
<10Mn
Users
2014
Near universal
adoption
2020
High adoption levels
Better &
affordable
services
‘Digital India’ campaign will likely propel
Indian govt. spending on IT to $7.2 Bn by
2015
5,000 business tenders
added everyday
B
Source –Akamai, BCG Report, Ericsson Market Insights, Avendus Mobile Internet Report, Flipkart Market Insights, Digital India Insights, Zinnov Analysis

6. Pockets of innovations disrupting four key business SMB
business levers
6
What solutions
do they need?
IOT
Mobility
Analytics
Cloud
Digital SMBs Social
Customer
Targeting and
Engagement
Operational
Excellence and
SCM
Workforce
Enablement
Risk Management
Discoverability and
Reach
Managing Customer
Relationships
Customer Intelligence
Optimizing Sales
Motions
New Sales Channels
Ensuring Efficiency in
Operations
Optimal Resource
Utilization
Customer Experience
Enhancement
Optimization of
Inventory and Logistics
Partner Identification
and Visibility
1
2
3
4
5
Talent Sourcing
Productivity
Enhancement
Skilling
1
2
3
Data security
Counterfeit protection
Physical security of
assets and resources
Safeguarding against
financial risks
1
2
3
4
1
2
3
4
5
CRM on Mobile
SMS-based
Website Creation
and Management
Missed Call
Marketing
Online Kirana shops
Mobile-based
Accounting / Book-
keeping Solution
Cloud-based
Production
Planning & Control
Cloud-based Project
Management
Solutions
Mobile based POS
Cloud-based
Collaboration
Solution
Mobile Job
Marketplace
Online Training &
Learning Solutions
Online Job Portals
Counterfeit
Prevention
Solutions
Cloud-based
Backup and
Recovery Solutions
Cloud-based Invoicing
for SMBs
Low-cost Security
Solutions
C
Source – News Articles, Company Websites, Zinnov Analysis

7. Digital enablement of Indian SMBs presents a multi-billion dollar
opportunity for tech vendors
7
How big is the
opportunity?
Customer
Targeting and
Engagement
Operational
Excellence and
SCM
Workforce
Enablement
Risk Management 306
484
370
467
310
383
431
551
417
462
518
788
421
683
367
658
219
279
199
384
564
783
621
964
Note: Opportunity assessment done on the basis of relevance of sub categories of solutions to 5 largest SMB verticals, average solution prices, and number of tech addressable SMBs.
Source – Company Websites of solutions providers, MSME, Press Articles, Zinnov Analysis
D
Opportunity across key
verticals (USD Mn)
Manufacturing Travel and LogisticsRetail Professional Services
Restaurants and
Hospitality
Others
Total Opportunity: USD 11.6 Bn
(2015)
USD 25.8 Bn
(2020)
Addressable opportunity
by verticals and business
areas (USD Mn)
XX

8. 8
Note: States prioritization is based on two broad parameters, namely a) State Digital Business Index, b) State *Vertical* Index. State Digital Business Index indicated combined assessment of factors including # of tech addressable SMBs, tele-density, PC and internet penetration, e-
readiness rating, state GDP, average SMB asset base etc. State *vertical* Index indicates a combined assessment of various vertical specific parameters, such as vertical clusters, urbanization index, literacy rate, tourism etc.
Source – MSME, Planning Commission, State Websites, TRAI, Ministry of Tourism, Census Report, World Bank, Ministry of Road Transport and Highways, Crisil, Zinnov Analysis
Key Cities – Mumbai, Pune, Nagpur, Nasik,
Aurangabad8.1%
Maharashtra
Key Cities – Chennai, Coimbatore, Madurai,
Tirupur
Tamil Nadu
Key Cities – Ahmedabad, Vadodara, Surat,
Gandhi Nagar
Gujarat
Key Cities – Lucknow, Kanpur, Meerut,
Varanasi, Agra
Uttar Pradesh
6.8%
6.5%
6.9%
Share in
opportunity
Share in
opportunity
Share in
opportunity
Share in
opportunity
1.
2.
3.
4.
Key Cities – Hyderabad, Vishakhapatnam,
Vijayawada
Andhra Pradesh
Also includes: Noida, Gurgaon & FaridabadDelhi NCR
Key Cities – Mysore, Bengaluru, Hubli, BelgaumKarnataka
Key Cities - Thrissur, Kochi, Kozhikode,
Thiruvananthapuram
Kerala
6.1%
6.1%
6.1%
5.9%
5.
6.
7.
8.
How big is the
opportunity?
Top 8 states constitute over 50% of the overall opportunity in
digital enablement of SMBs
D
Share in
opportunity
Share in
opportunity
Share in
opportunity
Share in
opportunity

9. Strategic initiatives required to be set in motion to tap into the
digital SMB opportunity
How to tap the
opportunity?
Engineering Product for SMB use Optimum pricing to ease SMB adoption High Impact outreach enabling large scale
Successfully targeting SMBs necessitates 3-pronged approach
Vertical specific solutions addressing end to end
needs
SMBs are receptive to solutions
that digitize entire workflow of
their vertical
Mobile first solutions
Given high adoption of
smartphones among Indian SMBs,
it is imperative for solutions to be
fully operable over mobile interface
Low set-up time/ready to use
SMBs have limited resources to
invest in implementation of
solutions and hence prefer ones
that work out of the box
Digitization of entire workflow
for a doctor, including,
discoverability CRM & operations
Op-ex model: Reduction in up-front cost
Greatest deterrent to adoption of
solutions is requirement of high
upfront investment. Need to
reduce the burden by offering pay-
per use pricing
Tiered pricing
- Encourage free trial to ensure high initial uptake
- Freemium models of engagement to ensure maximum
value realization
Creation of channel with non-traditional reach
Need to almost create FMCG reach of solutions across
geographic barriers. Experiment with on-boarding entities
such as cyber cafés operators, and ticketing agents, as
partners to ensure last mile reach
Mass scale evangelization
• Need to enhance visibility of
products through mass
evangelization
• Use of viral marketing
techniques
Enabling easy payments
Tie-up with telecom service providers to enable SMB
payments through telecom bills
1. 2. 3.
E
Source – Company Websites, Press Articles, Zinnov Analysis

10. Targeting new-age digital SMBs requires strategic realignment of
channel
10
How to tap the
opportunity?
E
I. Chaotic: Partner strategy in complete chaos, sells any IT
products to make ends meet; hasn’t invested in growth and
capability
II. Reactive: Only fulfils demand generated by principal
vendor, no investments into customer relationships, minimal
ability to value sell, poor sales team
III. Proactive: Has set key accounts and made investments
into solutions, limited capabilities to value sell, has growth
aspirations yet struggles with scaling sales, may not have
competent leadership
IV.Invested: High investment into driving product sales;
capabilities to build solutions; high growth aspirations
supported by strong leadership and ability to scale; have own
brand presence
Build 2-3 year growth
plan per partner
Build Individual partner
GTM
Define individual
capability development
plan for each partner
Segment partners by
maturity level
Key Impacts of digital SMB solution characteristics on vendor channel operations
Off the shelf nature of products Op-ex model of pricing Low Switching costs
Focus on product sales instead
of professional services
Widen funnel, push free trials Accelerate sales cycle
Handhold customers into
solution usage, high focus on
customer engagement
Ensure customer loyalty, Derive
higher lifetime value (LTV)
1 2 3 4 5
 Fulfilment, onboarding and configuration done by
customer itself
 Software vs. services revenue nearly 1:1
 Low upfront income per customer
 Recurring revenue from customers
 Need to ensure high customer engagement and
satisfaction to maximize LTV
Sales vs. services
revenue
# of SMB
Customers
Length of sales
cycle
Customer lifetime
value
Management
Commitment
Partner Capability
Credit and Profit
Potential
Revenue
contribution
Strategic realignment of channel to target SMBs
Source – Zinnov Analysis
Assessment of partner maturity for SMB sales Framework to classify partners by maturity level Strategic Interventions into partner operations

11. Digital enablement of SMBs would have a multifold impact on
India’s GDP, exports and employment
11
What is the
impact?
Collectively, digital
enablement of Indian
SMBs will lead to
following additional*
contribution by 2020
Additional jobs are expected
to be created to power
incremental output aided by
digitization
~168 Mn
Additional GDP
Additional annual
contribution to the GDP
due to adoption of digital
technologies by SMBs
~$ 1.1 Tr
Increase in Exports
Increment in SMB
contribution to Indian
exports
~$ 264 Bn
Notes: 1) Based on revenue enhancement and cost optimization effects of digitization of tech addressable SMBS on projected GDP of India in 2020
*Contribution attributable to digital enablement; over and above the expected contribution due to overall Indian GDP growth
Incremental Employment
Generation
Overall Economic Impact of Digital
Enablement on an SMB –
75% of current
revenue
Impact through Revenue Enhancement
50%
Impact through Cost Optimization
25%
F
Source – DNB, MSME, Press Articles, Zinnov Analysis

12. 12
Deep Dive

13. Agenda
13
Nexus of Forces Driving Digital Enablement of
SMBs
Digital Enablement Impacts Key Business Levers
Digital Enablement of SMBs Key for India’s Holistic Development
Digital Native Solutions Driving SMB Disruptions
Opportunity Deep Dive – Vertical and Geo View

14. Increasing device penetration
Enhancement in internet connectivity
Customer IT adoption
Availability of enterprise grade
solutions/services at SMB price points
Initiatives from ecosystem
stakeholders
Thriving app ecosystem
Access to Enabling Infrastructure
Availability of Solutions & Services
Push from Customers &
Ecosystem Stakeholders
1
2
3
Nexus of 3 key
drivers pushing
SMBs to go Digital
A
B
C
D
E
F
14
Increasing propulsion of Indian SMBs toward digital adoption can be attributed to three key
drivers…
Source – Zinnov Analysis

15. Adoption of smart devices in conjunction with enhancement in internet availability, enabling easy
digital access
15
Increasing
device
penetration
Considerable use of smartphone by
SMBs
2015
2020
1
Meanwhile, low cost
smartphones & tablets are
readily available
$40
$60-80
“
Enhancement in
internet
connectivity
High device penetration
complemented with Rapid
consumerization of IT
Almost the same price as feature phones
Low cost tablets are available from more
than 10 different brands
Growing use of Online collaboration
services like dropbox, google docs,
skype etc. for both personal and
professional work
Increasing broadband & mobile
internet adoption in SMBs
~7 Mn
>30Mn
2015
2020
Reducing internet access
prices
A
B
~7-8 Mn
Near
universal
“
“ “
“ “
2X increase in average
internet speed in 3 years 0.9 Mbps
2.0
Mbps
7.0
Mbps
2011 2014 2017
“ “
>70% reduction in 3G mobile prices over the last 2
years
Expectation of data services access for free
Source – Zinnov Analysis, Akamai, BCG Report, Ericsson Market insights, Avendus Mobile Internet Report

16. 16
2 Various SMB relevant solutions and services are available across desktop and mobile platforms
Enterprise grade
solutions/services
at SMB Price points
Thriving app
eco-system
100 Mn
400 Mn
2014
2020
4X Increase of monthly mobile app
downloads in India by 2020
Top
Business
Apps
Over 75+Million average downloads
per app worldwide
Mobile app development is becoming
increasingly viable for SMBs“
<3 hours
Required to build a functional app
9,000+
Indian Mobile app development companies
45% reduction in prices in 2013;
base version available for free
31% reduction in prices in 2014;
base version available for free
Google Apps
Easy affordability of cloud enabled
enterprise grade solutions
“
“
Cost effectiveness of
cloud-based solutions
50%
50%
Reduction in cost of ownership
Lower deployment time
Public cloud
infrastructure fit for
SMBs
70-75%
Advantages like scalability, low management requirement
and low set up time
C
D
“
“
“
cost savings with adoption of public
cloud
Source – Zinnov Analysis, AMI Partners

17. 17
3
Adoption of IT across customers and push from ecosystem stakeholders, fueling SMBs’ digital
journey
Increasing
customer IT
adoption
Initiatives from
Ecosystem
stakeholders
Consumers spending more
time on the internet Internet aiding
purchases across
consumer segments
“
1,125 Million searches by consumer in FY 2014
37 Mn ratings and reviews, signifying high
engagement
Increasing use of
digital medium by
enterprises
“ 5,000 business tenders added everyday
5-6 average leads for SMB/day
E-commerce companies helping SMBs
to sell on digital platforms
50,000+ SMB sellers on-boarded by top 3
e-commerce players
Rapid growth of e-commerce market
$13 Bn
$70 Bn
2014
2020
“
“
Easy access to loans
for SMBs through
partners
Flipkart, Snapdeal offering easy access to
loans for SMBs through partners
Government initiatives
aligned to help SMBs
digital uptake
‘Digital India’ campaign will likely propel Indian govt. spending on
IT to $7.2 Bn by 2015
Government launched scheme to promote ICT in MSME sector
extending support of basic ICT infrastructure
E
F
140 Mn
Hours
2013
2020
1500 Mn
Hours
“
“
“
“
Source – Zinnov Analysis, Global WebIndex Wave, Company websites

18. Agenda
18
Nexus of Forces Driving Digital Enablement of SMBs
Digital Enablement Impacts Key Business
Levers
Digital Enablement of SMBs Key for India’s Holistic Development
Digital Native Solutions Driving SMB Disruptions
Opportunity Deep Dive – Vertical and Geo View

19. Led by digital enablers, SMBs are witnessing disruptions across four key business levers
19
Social
Mobility
Analytics Cloud
IOT
Digital SMBs
 Discoverability and reach
 Managing customer relationships
 Customer intelligence
 Optimizing sales motions
 New sales channels
Customer Targeting and
Engagement
A
 Efficiency in operations
 Customer experience enhancement
 Optimal resource utilization
 Partner identification and visibility
 Optimization of inventory and logistics
Operational Excellence
B
 Sourcing of relevant talent
 Tackling attrition
 Productivity enhancement
 Skilling
Workforce Enablement
C
 Counterfeit protection
 Data security
 Physical security of assets and resources
 Safeguarding against financial risk
Risk Management
F
Four key business Levers impacted by tech
adoption
Source – Zinnov Analysis

20. 20
Discoverability and
Reach
Access to clients in distant
geographies and create greater
visibility and mindshare among
target segments
Managing Customer
Relationships
Ensure efficient management of
new and existing customer
relationships; personalization in
engagement
Customer Intelligence
Understand customers buying
patterns and their requirements to
push relevant offerings along with
upselling of complementary
products
Optimizing Sales
Motions
Gather real time visibility into the
existing partner network, measure
their performance and
effectiveness of campaigns
executed
New Sales Channels
Engage in various online channels
like aggregator websites, online
marketplaces ,etc. to undergo non-
linear growth
Illustrative SMB focused Solutions
SMB focused CRM available through
cloud across web and mobile interfaces
Used by ~400k SMBs globally
CRM on Mobile
Solution categories to enhance customer targeting and engagement
1 2 3 4 5
A
Various solutions are available to address SMB needs related to customer targeting and
engagement
Customer Targeting & Engagement Operational Excellence and SCM Workforce Enablement Risk Management
Quick website creation – in 13 minutes
Website update over SMSs; Auto – SEO
SMS-based Website Creation
and Management
Use of missed calls to generate leads,
deliver coupons, run contests etc.
High quality leads, positive customer
engagement
Missed Call Marketing
Tie up with local retail SMBs to deliver
grocery orders received online
Online Kirana shops
Source – Zinnov Analysis, Company websites, Press Articles

21. Zinnov estimates an opportunity of USD 3.8 Bn in provision of Customer Targeting and Engagement
solutions to Indian SMBs
21
Total Discoverability and
Reach
Managing Customer
Relationships
Customer
Intelligence
Optimizing Sales
Processes
New Sales Motions
$ 3,800 Mn
$ 1,250 Mn
$ 550 Mn
$ 550 Mn $ 100 Mn
$ 1,350 Mn
 Avenues to enhance discoverability, such as website creation and portal listings, constitute a large market within SMBs
 In addition, enabling SMBs to sell over internet can potentially drive annual revenues in access of a billion dollars for the
enabling platforms
A
Customer Targeting & Engagement Operational Excellence and SCM Workforce Enablement Risk Management
FY2015
FY2020 $8.4Bn
$3.8Bn
Addressable Opportunity in Customer
Targeting and Engagement across
Tech-influenced SMBs
Opportunity Split – by Sub components (2015)
Note: Opportunity assessment done on the basis of relevance of sub categories of solutions to 5 largest SMB verticals, average solution prices, and number of tech addressable SMBs.
Source – Company Websites of key solutions providers, MSME, Press Articles, Zinnov Analysis

22. Customer Targeting & Engagement Operational Excellence and SCM Workforce Enablement Risk Management
Ensuring Efficiency in
Operations
Automation of operations and
streamlining of core processes to
draw higher execution efficiencies
Optimal Resource
Utilization
Reduction in wastage and optimum
utilization of resources, such as raw
material, labor, and overheads
Customer Experience
Enhancement
Improvement in customer facing
operations to ensure higher
customer satisfaction
Optimization of
Inventory and
Logistics
Usage of technology to forecast
and automate inventory
management. Visibility and control
over logistics to minimize losses
Partner Identification
and Visibility
Use of portals to identify suitable
partners for supply of materials
and delivery of finished goods
Illustrative SMB focused Solutions
Solution categories in Operational Excellence and Supply Chain Management
1 2 3 4 5
Operational Excellence and Supply Chain solutions fall under five key areas
22
Solution called ‘Len Den Khata’
automates the accounting / book-keeping
for SMBs with simple, easy-to-use
interface
Targets kirana shops, chemists, jewelers,
milk dairies etc.
Mobile-based Accounting / Book-
keeping Solution
SMB-focused vertical specific resource
planning
Web-based Resource, Sales, Operation,
Demand Planning, Master Production
Schedule
Cloud-based Production
Planning & Control
Cloud based solution to track multiple
projects, assign/track tasks & milestones
Also offers reporting and analytics
Cloud-based Project
Management Solutions
POS solution comprising a lightweight
card reader, smartphone and an app
Partnered with SBI to deploy 5 lakh POS
devices by 2019
Mobile based POS
Source – Zinnov Analysis, Company websites, Press Articles

23. Zinnov estimates an opportunity of USD 2.5 Bn in provision of Operational Excellence solutions to
Indian SMBs
23
Total Ensuring efficiency
in processes
Optimal Resource
Utilization
Customer
Experience
Enhancement
Optimization of
inventory and
logistics
Partner
identification and
visibility
$ 2,500 Mn
$ 950 Mn
$ 400 Mn
$ 200 Mn
$ 800 Mn
$ 150 Mn
 SMBs require solutions that help address issues around inventory management, efficient logistics and overall efficiency of
operations
 Overall market for operational excellence solutions is expected to grow at a CAGR of 17% to reach $5.5 Bn by 2020
A
Customer Targeting & Engagement Operational Excellence and SCM Workforce Enablement Risk Management
Opportunity Split – by Sub components (2015)Addressable Opportunity in
Operational Excellence across Tech-
influenced SMBs
FY2015
FY2020 $5.5Bn
$2.5Bn
Note: Opportunity assessment done on the basis of relevance of sub categories of solutions to 5 largest SMB verticals, average solution prices, and number of tech addressable SMBs.
Source – Company Websites of key solutions providers, MSME, Press Articles, Zinnov Analysis

24. Customer Targeting & Engagement Operational Excellence and SCM Workforce Enablement Risk Management
Talent Sourcing
Usage of technology solutions to
address workforce shortfall by
identifying talent and hire as per
requirement
Productivity
Enhancement
Ensuring collaboration amongst
employees and enable monitoring
to increase employee productivity
Skilling
Use of web based solutions to
provide training to employees
across skill categories
Illustrative SMB focused Solutions
Solution categories in Workforce Enablement
1 2 3
Includes solutions, such as email,
calendar, storage, productivity apps
delivered over cloud
Cost effective – INR 1,500 per person per
annum
Cloud-based Collaboration
Solution
Saral Rozgar Card allows users to connect
to job market place from mobiles;
location based mapping, aiding both “job
seekers” and “job providers”
2 Million registered users across 800 cities
in just 2 years
Saral Rozgar - Mobile Job
Marketplace
200+ Courses of professional certification
Accredited by 20+ global bodies
Over 100,000 professionals trained across
150+ countries
Online Training & Learning
Solutions
Users can apply for jobs across 50+ job
boards in one submission
Built-in Social Recruiting to take
advantage of integrated social network
postings
Online Job Portals
Workforce Enablement solutions solve problems related to talent sourcing, productivity and skill
Source – Zinnov Analysis, Company websites, Press Articles

25. Zinnov estimates an opportunity of USD 3.1 Bn in provision of workforce enablement solutions to
Indian SMBs
25
Total Talent Sourcing, tackling
attrition, hiring
Productivity Enhancement Skilling
$ 3,100 Mn
$ 2,300 Mn
$ 400 Mn
$ 400 Mn
 Workforce hiring and retention are one of the biggest pain points in SMB. Solutions addressing the same across hierarchy levels
have a massive opportunity among SMBs
A
Customer Targeting & Engagement Operational Excellence and SCM Workforce Enablement Risk Management
Opportunity Split – by Sub components (2015)
Addressable Opportunity in
Workforce Enablement across Tech-
influenced SMBs
FY2015
FY2020 $6.8Bn
$3.1Bn
Note: Opportunity assessment done on the basis of relevance of sub categories of solutions to 5 largest SMB verticals, average solution prices, and number of tech addressable SMBs.
Source – Company Websites of key solutions providers, MSME, Press Articles, Zinnov Analysis

26. Data security
Counterfeit
protection
Physical security of
assets and resources
Safeguarding against
financial risks
1 2 3 4
Customer Targeting & Engagement Operational Excellence and SCM Workforce Enablement Risk Management
Prevention of leakage of critical
business data on finances,
customers, operations etc.
Adopting mechanisms to help
consumers identify a counterfeit
product from a real one
Use of surveillance, asset control
and tracking solutions to ensure
physical safety of assets
Illustrative SMB focused Solutions
Advanced physical layer authentication to
prevent counterfeiting
Counterfeit Prevention
Solutions
Integrated backup for offsite data storage
and disaster recovery
Available as a service delivered over cloud
Cloud-based Backup and
Recovery Solutions
Provides monitoring and reports /
analytics on invoicing and payments on a
freemium model
5 mn users across 120 countries
Cloud-based Invoicing for SMBs
Provides CCTV surveillance, Metal
detectors, etc. along with electronic
security-as-a-service
Low-cost Security Solutions
Ensure healthy working capital by
safeguarding against financial
defaults on receivables
26
SMBs can mitigate risks by adopting technology across 4 major areas
Risk Management solutions can be categorized in four broad buckets
Source – Zinnov Analysis, Company websites, Press Articles

27. Zinnov estimates an opportunity of USD 2.2 Bn in provision of Risk Management solutions to Indian
SMBs
27
Total Data Security Counterfeit protection Physical security of
resources
Safeguarding against
financial risk
$ 2,250 Mn
$ 610 Mn
$ 110 Mn
$ 1,030 Mn
$ 500 Mn
 Safeguarding enterprise data and security of physical assets are critical to SMBs and represent the largest opportunity for
providers of relevant solutions
A
Customer Targeting & Engagement Operational Excellence and SCM Workforce Enablement Risk Management
Opportunity Split – by Sub components (2015)
Addressable Opportunity in Risk
Management across Tech-influenced
SMBs
FY2015
FY2020 $5.0Bn
$2.2Bn
Note: Opportunity assessment done on the basis of relevance of sub categories of solutions to 5 largest SMB verticals, average solution prices, and number of tech addressable SMBs.
Source – Company Websites of key solutions providers, MSME, Press Articles, Zinnov Analysis

28. Agenda
28
Nexus of Forces Driving Digital Enablement of SMBs
Digital Enablement Impacts Key Business Levers
Digital Enablement of SMBs Key for India’s Holistic Development
Digital Native Solutions Driving SMB Disruptions
Opportunity Deep Dive – Vertical and Geo View

29. Opportunity Assessment – Manufacturing Vertical
29
Customer
Targeting and
Engagement
Operational
Excellence and
SCM
Workforce
Enablement
Risk Management
Total Opportunity USD 1,627 Mn
Manufacturing Vertical
306
484
370
467
(USD Mn)
Manufacturing Retail Travel and Logistics Professional Services Restaurants and Hospitality
Uttar Pradesh
Key Cities – Lucknow,
Kanpur, Meerut
Maharashtra
Key Cities - Mumbai, Pune,
Aurangabad
Andhra
Pradesh
Key Cities - Hyderabad,
Visakhapatnam, Vijayawada
Karnataka
Key Cities - Bangalore,
Mysore, Hubli
Tamil Nadu
Key Cities - Chennai,
Coimbatore, Tirupur
Rajasthan
Key Cities - Kota,
Jaipur, Udaipur
4.9%
9.2%
7.1%
6.1%
7.5%
6.4%
6.6%
5.7%
Gujarat
Key Cities – Ahmedabad,
Vadodara, Surat
Note: States prioritization is based on two broad parameters, namely a) State Digital Business Index, b) State *Vertical* Index. State Digital Business Index indicated combined assessment of factors including # of tech addressable SMBs, tele-density, PC and internet penetration, e-
readiness rating, state GDP, average SMB asset base etc. State *vertical* Index indicates a combined assessment of various vertical specific parameters, such as vertical clusters, urbanization index, literacy rate, tourism etc.
Source – Zinnov Analysis, MSME, Planning Commission
Kerala
Key Cities - Thrissur, Kochi,
Thiruvananthapuram
States with highest contribution to manufacturing opportunity

30. Opportunity Assessment – Retail Vertical
30
Customer
Targeting and
Engagement
Operational
Excellence and
SCM
Workforce
Enablement
Risk Management
Total Opportunity USD 2,184 Mn
Retail Vertical
(USD Mn)
Manufacturing Retail Travel and Logistics Professional Services Restaurants and Hospitality
417
462
518
788
6.9%
6.5%
7.0%
6.2%
6.2%
7.2%
9.0%
5.8%
Uttar Pradesh
Key Cities – Lucknow,
Kanpur, Varanasi
West Bengal
Key Cities – Kolkata,
Siliguri, Asansol
Maharashtra
Key Cities - Mumbai, Pune,
Nagpur
Andhra
Pradesh
Key Cities - Hyderabad,
Visakhapatnam,
Vijayawada
Karnataka
Key Cities - Mysore,
Bangalore, Belgaum
Tamil Nadu
Key Cities - Chennai,
Coimbatore, Madurai
Delhi NCR
Includes Noida,
Gurgaon, Faridabad
Gujarat
Key Cities – Ahmedabad,
Vadodara, Surat
Note: States prioritization is based on two broad parameters, namely a) State Digital Business Index, b) State *Vertical* Index. State Digital Business Index indicated combined assessment of factors including # of tech addressable SMBs, tele-density, PC and internet penetration, e-
readiness rating, state GDP, average SMB asset base etc. State *vertical* Index indicates a combined assessment of various vertical specific parameters, such as vertical clusters, urbanization index, literacy rate, tourism etc.
Source – Zinnov Analysis, MSME, Census, World Bank, Crisil
States with highest contribution to retail opportunity

31. Opportunity Assessment – Travel and Logistics Vertical
31
Customer
Targeting and
Engagement
Operational
Excellence and
SCM
Workforce
Enablement
Risk Management
Total Opportunity USD 1,675 Mn
Travel and Logistics Vertical
(USD Mn)
Manufacturing Retail Travel and Logistics Professional Services Restaurants and Hospitality
310
383
431
551
Tamil Nadu
Key Cities - Chennai,
Coimbatore, Madurai
Kerala
Key Cities - Thrissur, Kochi,
Thiruvananthapuram
3.9%
4.7%
5.6%
4.5%
6.5%
5.5%
6.6%
5.7%
7.0%
Uttar Pradesh
Key Cities –
Lucknow, Kanpur,
Varanasi
West Bengal
Key Cities – Kolkata,
Durgapur, Asansol
Maharashtra
Key Cities - Mumbai, Nasik,
Pune
Andhra
Pradesh
Key Cities - Hyderabad,
Visakhapatnam, Vijayawada
Karnataka
Key Cities - Hubli,
Bangalore, Mangalore
Rajasthan
Key Cities – Kota,
Jaipur, Udaipur
Gujarat
Key Cities – Ahmedabad,
Gandhinagar, Surat
Note: States prioritization is based on two broad parameters, namely a) State Digital Business Index, b) State *Vertical* Index. State Digital Business Index indicated combined assessment of factors including # of tech addressable SMBs, tele-density, PC and internet penetration, e-
readiness rating, state GDP, average SMB asset base etc. State *vertical* Index indicates a combined assessment of various vertical specific parameters, such as vertical clusters, urbanization index, literacy rate, tourism etc.
Source – Zinnov Analysis, MSME, Crisil, Ministry of Road Transport and Highways
States with highest contribution to travel and logistics opportunity

32. Opportunity Assessment – Professional Services Vertical
32
Customer
Targeting and
Engagement
Operational
Excellence and
SCM
Workforce
Enablement
Risk Management
Total Opportunity USD 2,129 Mn
Professional Services Vertical
(USD Mn)
Manufacturing Retail Travel and Logistics Professional Services Restaurants and Hospitality
421
683
367
658
8.3%
6.9%
5.9%
7.0%
8.8%
5.8%
6.6%
Uttar Pradesh
Key Cities – Lucknow,
Kanpur, Varanasi
Maharashtra
Key Cities - Mumbai, Nagpur,
Pune
Karnataka
Key Cities - Mysore,
Bangalore, Belgaum Tamil Nadu
Key Cities - Chennai,
Coimbatore, Madurai
Kerala
Key Cities - Kozhikode, Kochi,
Thiruvananthapuram
Delhi NCR
Includes Noida,
Gurgaon, Faridabad
Gujarat
Key Cities – Ahmedabad,
Vadodara, Surat
Note: States prioritization is based on two broad parameters, namely a) State Digital Business Index, b) State *Vertical* Index. State Digital Business Index indicated combined assessment of factors including # of tech addressable SMBs, tele-density, PC and internet penetration, e-
readiness rating, state GDP, average SMB asset base etc. State *vertical* Index indicates a combined assessment of various vertical specific parameters, such as vertical clusters, urbanization index, literacy rate, tourism etc.
Source – Zinnov Analysis, MSME, Census Report, World Bank
5.4%
West Bengal
Key Cities – Kolkata,
Durgapur, Siliguri
States with highest contribution to professional services opportunity

33. Opportunity Assessment – Restaurants and Hospitality Vertical
33
Customer
Targeting and
Engagement
Operational
Excellence and
SCM
Workforce
Enablement
Risk Management
Total Opportunity USD 1081 Mn
Restaurants and Hospitality Vertical
(USD Mn)
Manufacturing Retail Travel and Logistics Professional Services Restaurants and Hospitality
219
279
199
384
5.7%
6.9%
7.2%
6.8%
7.4%
9.6%
6.6%
Uttar Pradesh
Key Cities – Agra,
Mathura, Varanasi
Maharashtra
Key Cities - Mumbai,
Aurangabad, Pune
Andhra
Pradesh
Key Cities - Hyderabad,
Visakhapatnam, Vijayawada
Karnataka
Key Cities - Mysore,
Bangalore, Mangalore
Tamil Nadu
Key Cities - Chennai,
Coimbatore, Madurai
Delhi NCR
Includes Noida,
Gurgaon, Faridabad
Gujarat
Key Cities – Ahmedabad,
Junagarh, Surat
Note: States prioritization is based on two broad parameters, namely a) State Digital Business Index, b) State *Vertical* Index. State Digital Business Index indicated combined assessment of factors including # of tech addressable SMBs, tele-density, PC and internet penetration, e-
readiness rating, state GDP, average SMB asset base etc. State *vertical* Index indicates a combined assessment of various vertical specific parameters, such as vertical clusters, urbanization index, literacy rate, tourism etc.
Source – Zinnov Analysis, MSME, World Bank, Ministry of Tourism, Census
States with highest contribution to restaurants and hospitality
opportunity

34. Agenda
34
Nexus of Forces Driving Digital Enablement of SMBs
Digital Enablement Impacts Key Business Levers
Digital Enablement of SMBs Key for India’s Holistic Development
Digital Native Solutions Driving SMB
Disruptions
Opportunity Deep Dive – Vertical and Geo View

35.  Disrupted traditional procurement methods of individual buying at
low scale
 Driving cost efficiencies through aggregated demand
 Cloud based solution
enabling demand
aggregation
 Collective payment through
online channel
Enterprise scale
procurement for
SMBs
Digital native solutions driving SMB disruptions (1/2)
35
 Operations structured around merely three employees per city which
handle thousands of accounts (SMBs)
 Made possible due to extensive digitization of operations
 Disrupting customer engagement through permission based
marketing using missed call (toll free for customers)
 Provides actionable leads with serious intent
 Easy to use solutions encompassing entire SMB (Doctor) workflow :
 Enhancing discoverability by customers
 Managing customer relationships
 Enabling operational workflow
1
2
3
4
 Completely mobile
workflow
 Ease of operation for both
drivers and consumers
 Engaging customers
through lowest
denominator of
technological adoption –
telephone calls
 Digitization of entire
workflow on an integrated
cloud based platform
SMB reach without
feet on street
Enabling end-to-end
vertical specific
workflows
Non-intrusive
customer engagement
at scale
Source – Zinnov Analysis, Company websites, press articles

36.  Help Individuals derive value out of their “underutilized assets”
 Companies have created trusted market places for respective
offerings:
 Air BnB – Accommodation
 Lyft – Car Ride
 Digitally enabled crowd
sourcing of user ratings
 Ease of execution –fully
operational through a
mobile app
Powering new
breed of SMBs
Digital native solutions driving SMB disruptions (2/2)
36
 Organization of blue collar workforce through saral rozgar card
 Registered job seeker base of close to 2 million and reached 1 Lac job
openings in March 2014
 Used as a medium for both internal (employees) and external
(clients) communication
 Rapidly emerging as an effective mass marketing tool
 End-to end solution to create and manage websites
 13 minutes for creation of websites; auto SEO
 Ability to manage/update websites over SMS
5
6
7
8
 Enablement through mobile
phones which have a
significant penetration in
the target workforce
 Mobile only solution with
high penetration
 Low learning curve; near
Zero Cost
 Extreme ease in web-
presence creation and
management
Organizing the
unorganized
Consumer apps for
business
Web presence
made simple
Source – Zinnov Analysis, Company websites, press articles

37. Agenda
37
Nexus of Forces Driving Digital Enablement of SMBs
Digital Enablement Impacts Key Business Levers
Digital Enablement of SMBs Key for India’s
Holistic Development
Digital Native Solutions Driving SMB Disruptions
Opportunity Deep Dive – Vertical and Geo View

38. 38
Overall Economic Impact of Tech Adoption on
an SMB – 75% of current revenue
Revenue Enhancement –
50%
Cost Optimization–
25%
Notes: 1) Economic impact has been calculated based on 100% adoption of all relevant digital technologies and estimating %age revenue enhancement and cost reduction resulting
from tech adoption across each of the 4 business levers
Customer Targeting and Engagement, 38%
Risk Management, 22%
Workforce Enablement, 20%
Operational Excellence, 20%
90%, Operational Excellence
10%, Customer targeting and Engagement
Zinnov estimates 75% overall enhancement in SMB performance due to technology adoption across
6 key business levers
Source – Zinnov Analysis, Company Websites, Press Articles

39. Digital SMBs would have a multifold impact on India’s GDP, exports and employment
39
Additional* Contribution
of Digitally enabled Indian
SMBs in 2020
Additional jobs are
expected to be created to
power incremental output
aided by digitization
~168 Mn
Additional GDP
Additional annual
contribution to the GDP
due to adoption of digital
technologies by SMBs
~$ 1.1 Tr
Increase in Exports
Increment in SMB
contribution to Indian
exports~$ 264 Bn
Notes: 1) Based on revenue enhancement and cost optimization effects of digitization of tech addressable SMBS on projected GDP of India in 2020
*Contribution attributable to digital enablement; over and above the expected contribution due to overall Indian GDP growth.
Incremental
Employment Generation
Source – DNB, MSME, Press Articles, Zinnov Analysis

40. Thank you
40
21, Waterway Ave,
Suite 300
The Woodlands
TX – 77380
PH: +1-281-362-2773
Meilifang Tower 4, Entrance 4,
10/F #1003,
11 Beiyuan Shuangying Road,
Chaoyang District,
Beijing China 100012
Level 42,
Suntec Tower Three
8 Temasek Boulevard
Singapore 038988
PH:+65 6829 2123
69 "Prathiba Complex", 4th 'A' Cross,
Koramangala Ind. Layout
5th Block, Koramangala
Bangalore – 560095
PH: +91-80-41127925/6
First Floor,
Plot # 131,
Sector - 44,
Gurgaon – 122002
PH: +91-124- 4420100
3701 Patrick Henry Dr.
Building 7
Santa Clara
CA – 95054
PH: +1-408-716-8432
Zinnov Worldwide
info@zinnov.com
www.zinnov.com @Zinnov