Sunday, July 08, 2007

Moving back to India

Over the weekend I attended the IIT conference in Santa Clara, CA. One of the panel discussions centered around the ever hot topic around whether it is a good time for Silicon Valley Indian professionals to move back to India and what are some considerations around this.
The distinguished panel of three speakers echoed in unison that the biggest deterrent to moving back was personal reasons as opposed to professional reasons. Often, family members are not on the same page with respect to the expectations and may not be prepared for the big change which makes the already difficult move tougher. Once this is sorted out, the panel felt that the opportunities for professionals were many, and the demand for mid-level IT managers with capability to manage P&L is very high. One of the panelists commented that if you have a home, then a salary of Rs. 40K/month is enough for a very comfortable living in Bangalore. Work culture wise, if you join a MNC or BPO, you would not feel any culture shock. The top concerns for employers is (1) attracting good talent, as I mentioned earlier there is a dearth of mid-level management (2) ability to retain talent, the young workforce has little to no loyalty and move around a lot seeking greener opportunities. Indian companies are striving to match disposable incomes between US and Indian salaries. All in all, the panel felt that professionally the opportunities are really good in India, so the decision to move or not is entirely personal.
Hope you found this useful, would love to hear your opinions on this.

Friday, June 22, 2007

Pricing Enterprise Software

We recently went through the exercise of pricing our new enterprise software product. Although there were similar products already in the market, bundling and discounting strategies made it difficult to assess the price. Our approach started by checking willingness to pay and testing various price points with the target users. This allowed us to narrow the range. We then attempted to quantify the key elements of our user validated value proposition. This set an upper bound for the price. We also looked at substitutes to our solution. In our case, the substitutes had poor price-performance ratio which allowed us to place this as a low bar on the price. We then picked a range of price points depending on the pricing objective. This was a very interesting exercise given that this was for a brand new product and hence we had no history to assess price sensitivity and also demand.
How have you priced your enterprise software? What methods have you used?