A deep tech future: Mani Vembu

One of the primary drivers of innovation in India is its demographic advantage. With a population exceeding 1.4 billion, over 65% of whom are under the age of 35, India has a young, dynamic workforce eager to embrace new technologies and ideas. This demographic advantage has helped in the growth of the IT industry, which has transitioned from services to building an active product and SaaS ecosystem over the last decade.

India’s population presents unique challenges across infrastructure, healthcare, banking and finance, manufacturing, renewable energy, agriculture, and other industries. As our challenges are unique, so should be our solutions. For example, UPI transformed and digitised the economy, addressing the issue of payments for masses and paving the way for more innovations in the fintech space. Similarly, India should continue to invest in original technologies for unique sector-specific challenges. With focused innovation, the next set of powerful global brands should come from India.

Building deep technology takes time, sometimes decades. The mindset to pursue this is diametrically opposite to the one that seeks the high of quick growth and fast exits, or enjoys the chase of high stock value. And while deep-tech will not deliver instant results, it will yield long-term pay-offs that are worth the wait.

For anyone willing to jump into the deep end, here are a few learnings from building Zoho:

Think Big, Start Small

There are problems that have a long shelf life. Take PC or mobile or construction equipment; they are long-term challenges. While you focus on the long term, have short-term goals to keep the pace of execution. When you have chosen the problem you want to solve, you have to start by learning all there is to know about that field, and thankfully, there is easy access to knowledge on the net, and communities dedicated to specific fields. As most of the learning happens while doing, instead of aiming to build a product end-to-end, start small with a component and iterate faster.

R&D Is Iterative

Unlike services or production that are driven by processes, R&D requires a different mindset. It cannot be managed like a project as there are a lot more unknowns than knowns. Solutions are discovered through experiments and learning from failures; it’s an iterative process.

Fail Fast, Learn From Mistakes

Once you have embarked on a journey to innovate, you are bound to take false steps. The sooner you fail, and more often you do, the closer you get to a breakthrough. Sometimes, failures are also stepping stones. At Zoho, we have built certain products that did not do well in the market or became obsolete. However, the base technology became the foundation for other products that went on to compete with global giants.

People Are The Real Capital

Your employees who will spend years and years mastering a particular field—they are your most important asset. You cannot replace or outsource that expertise, as some international companies are learning now. You can never outspend your competitors, and so the only way to keep your employees close is through culture and shared vision. These cannot be afterthoughts, they need to be foundational to building your company.

The Talent Trap

The reality that we can attest to is that talent is everywhere. In fact, most of the talent in the metros comes from smaller towns. Building your business where the talent is also reduces operational costs, providing you a longer runway. We are already witnessing a shift of start-ups to Tier II/III cities, and it’s now time to tap the rural talent that is hungry for a chance to prove themselves. You will have to nurture the talent, but this is a worthwhile investment.

Keep An Ear To The Ground

It’s important to stay in close touch with your existing or potential customers, keeping pace with their evolving needs, incorporating their feedback, and ensuring you are headed in the right direction. It’s also a good idea to have a road map to serve diverse markets, spreading out, and not be dependent on just one source of income.

There will still be times when you do everything right, and yet your product may fail; or, a technological breakthrough may render your efforts pointless. Back in 2000, the dot-com bust wiped out over 90% of our clients. As a small company, what else could we do but be nimble and pivot? We used our savings to invest in building IT management solutions, and later, entered the cloud market.

Building an R&D-led company is not easy, but this is certainly the way to create a lasting brand that will make a global impact. 

Views are personal. The author is the CEO of Zoho.