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Microsoft Checks Startups Ready to be Enterprises

“In the process of building this analysis, we reviewed close to 500 enterprise ready startups, and saw some interesting findings.”

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Here are the key takeaways from their analysis:

1. 50 percent of the enterprise ready startups are in the healthcare, retail and banking sectors

Driven by optimization, these three sectors have emerged as the biggest adopters of the enterprise technology solutions. Banking and healthcare have proven to be the most receptive to startup solutions. With the rise of digitization across sectors, deep technology companies play a pivotal role in empowering these corporates to build innovative ways to engage with customers and address complex business requirements. With the help technology banks manage to increase customer traction and achieve customer satisfaction while companies in the healthcare space are expanding physical reach and affordability through machine learning and data sciences.

2. Data sciences and security startups find it easiest to find customers

This is driven by the broad base of customers and sectors that these startups can address natively. Disruption of technology has helped these businesses to build deep expertise and position them uniquely vis-à-vis other companies in multiple sectors and domains.

3. Startups catering to the banking sector find it easiest to raise funds

The startups catering to the banking sector are at the forefront of the digital transformation of India. India already has a billion mobile phone users, as well as a billion citizens with active bank accounts that are linked to their digital identities by way of Aadhaar. The tremendous scope of opportunity these startups can leverage is one of the key reasons these startups are successful in attracting funding.

The way forward

Not only has India emerged as the third largest startup ecosystem in the world, but the tech startup landscape shows tremendous potential in terms of revenue growth, business stability, and disruptive creation. India’s potential to produce disruptive solutions lies in the hands of all three dynamic change agents – startups, corporates, and the government. We were pleasantly surprised to find respectable number of startups that met our criteria and were building interesting solutions.

Our research shows that contrary to popular belief, the most conservative yet disruptive sectors (such as BFSI) are embracing startup solutions more openly than others. This should inspire other sectors to also open up to finding solutions from from startups. The rapidity of changes in the business environment and global climate, can no longer be addressed in enterprises by incremental changes from traditional vendors, but small and nimble startups.

However, enterprise-ready startups are still far from maturity for two primary reasons: one, we are building solutions that are addressing surface level problems; and two, we haven't yet unlocked our ability to scale and grow these startups. For corporates to offer disruptive solutions, they must first define the business problem and partner with or acquihire startups that provide robust solutions. The maturation of the Indian startup ecosystem will depend of getting mature entrepreneurs taking larger problems (especially those found in India) that pose challenge in scale, cost structure and distribution.

This article is an extract from here.

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