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Startups, Ecommerce Firms Queue up at Design Institutes

CASE FLYER, E-COMMERCE
ET Cases, 5 pages
AUTHOR(S) : Vandana Jayakumar and Dr. Nagendra V. Chowdary
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Startups, Ecommerce Firms Queue up at Design Institutes

 

Expected Learning Outcomes

  • • Indian eCommerce establishments’ operating/business models and broad categorization of eCommerce ecosystem prevalent in India
  • • Need and importance of designers for Indian eCommerce companies and the possible value additions the designers can bring to the table
  • • Ways to expand and fortify the ecosystem to ensure steady supply of required design talent for Indian eCommerce companies

 

I. Indian eCommerce Industry, Business Models and Ecosystem

1. What is a business model? What are the six prevalent eCommerce business models in India?

2. What do you understand by eCommerce ecosystem i.e., what are the different platforms of Indian eCommerce business operating system?

3. List the factors that have enabled the Indian eCommerce industry to witness an exponential growth, especially during the last 5 years.

4. .......................

II. Indian eCommerce Industry and The Demand for Designers

1. The base article states that, “With massive scale-up by ecommerce companies, both established and startups, demand for designers is on the rise.”
 
a. What do you mean by scaling-up of an eCommerce firm?
b. When do you think it makes sense for eCommerce firms to scale up?
c. How do you think scaling up and the demand for designers are correlated?
 
2. What do you understand by a designer? For what kind of activities do you think companies (eCommerce companies) would need designers?

3. ............

III. Indian eCommerce and Designers: Building a New Ecosystem
 
1. “Pushed by demand for courses around design, IIT Bombay will be launching a bachelor’s degree in design from this July. This will be the first time that the institute, which primarily has been offering programs for graduates, will be introducing an undergraduate degree, said Professor Uday Athavankar of IDC.” Which is more correct to say: It is the institutes’ courses that are drawing the demand for designers or is it the demand from startups and eCommerce firms that is driving the demand for designers?

2. Quoting Sujitha Nair (Placement Officer at NID), the base article points out that, “NID is starting an interactive session for its students with experts from startups. It is further exploring student engagement on live projects and internships at start-ups, a spokesperson said. The number of startups and e-commerce companies who participated in this year’s placement season almost doubled from last year.” What else needs to be done to make the courses highly relevant and ‘day-one-hour-one’ ready so that the prospective designers can bring in the required skills to the table?
 
3. .............

Teaching Note Preview

Startups, Ecommerce Firms Queue up at Design Institutes

 

Synopsis

This Case Flyer enables a discussion on an interesting trend of startups and eCommerce companies hiring large number of designers from various design institutes. The Case Flyer introduces the ecosystem of the Indian eCommerce industry before discussing the aforementioned trend. It gives an idea of the prevalent eCommerce business models in India and the factors behind the exponential growth of eCommerce industry in India. It also helps understand the meaning of scaling up for an eCommerce firm. The Case Flyer throws open a discussion on the reasons behind the recent trend and what more can be done to fulfill the industry’s requirement for designers. It concludes with a discussion on the new eCommerce ecosystem.

Prerequisite Conceptual Understanding and Before the Case Flyer Discussion

  • • Gary Dessler and Biju Varkkey, “Human Resource Planning and Recruiting”, Human Resource Management, 12th Edition, Dorling Kindersley (India) Pvt. Ltd., 2011

 

Suggested Reading for the Faculty

  • • Mark W. Johnson, et al., “Reinventing your Business Model”, Harvard Business Review, December 2008 – To understand the elements of a successful business model

 

Case Positioning and Setting

This Case Flyer can be used for either of the following:

  • • In MBA Program – eCommerce Course – Business Models and Talent Sourcing – To discuss the business models of eCommerce companies and debate on why many Indian eCommerce firms are recruiting ‘designers’ for several of their functions
  • • In MBA Program – HRM Course – Recruitment (Campus Recruitment) – To discuss the pros and cons of Indian eCommerce firms sourcing ‘design’ talent from campuses
  • • In Executive MBA or Executive Development Programs – Either for HRM Course or for Talent Sourcing in Indian eCommerce firms or increasing demand for designers in eCommerce firms

 

Preamble to this Case Flyer Analysis

Designers play an important role in a company’s business landscape – product design, product innovation, service design, store design, marketing, etc. – and more so for eCommerce companies. Designers can enhance the websites’ appeal and navigational ease with unique and customer friendly designs. This Case Flyer focuses on the critical role played by designers in enhancing eCommerce companies’ appeal........

Case Analysis/Case Flyer Discussion

I. Indian eCommerce Industry, Business Models and Ecosystem

The discussion in this section was meant to sensitize the students/participants to the concept of business models in India. Having understood the business models, the students/participants were prepared to understand the trend of startups and eCommerce companies hiring designers in large number from various design institutes spread across the country.

• Business Models

A business model is a set of four inter-linked constituents that create and deliver value. The discussion can be carried out by referring to the HBR article – “Reinventing Your Business Model” (cited as suggested reading for the faculty). As stated in the article, the four elements of a successful business model are:

a. Customer value proposition
b. Profit formula
c. Key resources
d. Key processes

..................

Exhibits

Exhibit (TN)-I: Discussion Dashboard

Exhibit (TN)-II: eCommerce Business Models

Exhibit (TN)-III: Different Platforms of Indian eCommerce’s Business Operating System

Exhibit (TN)-IV: Reasons behind Exponential Growth of eCommerce Companies

Exhibit (TN)-V: Indicative List of Competitors

Exhibit (TN)-VI: Competition in the eCommerce Startups

Exhibit (TN)-VII: Modern Technologies Enabling eCommerce Business

Exhibit (TN)-VIII: External and Internal Challenges Faced by eCommerce Companies

Exhibit (TN)-IX: Growth Phases of the Indian eCommerce Industry

Exhibit (TN)-X: Demand for Designers

Exhibit (TN)-XI: Requirement of Design Culture in Industries

Exhibit (TN)-XII: Contributing Factors of High Packages


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Abstract


Indian eCommerce industry has come a long way in a relatively short period with its steep learning curve, benchmarking with some of the best global practices across the value chain. As the competition is getting intense, especially in some categories like FMCG, Indian eCommerce companies are on the lookout for enhancing  customer experience. The recent approach that quite a few eCommerce companies are vying for is through recruiting designers to give the potential customers a  refreshing look-and-feel every time they visit the website and (possibly) transact. As mentioned in the base article, “Startups, Ecommerce Firms Queue up at Design  Institutes”, by Prachi Verma, in The Economic Times, (dated: April 10th 2015), established Indian eCommerce companies like Flipkart, Snapdeal, Cardekho.com,  Housing.com, etc., have been visiting premier design institutes in India (NIFT, NII, MIT Institute of Design, etc.). While the designers come at a huge cost, would they be able to add requisite and expected value to the firms hiring them? How would designers enhance the product and service appeal of eCommerce firms?



Pedagogical Objectives

  • To have an overview of Indian eCommerce establishments’ operating/business models and also understand the broad categorization of eCommerce ecosystem prevalent in India
  • To understand the need and importance of designers for Indian eCommerce companies and discuss on the possible value additions the designers can bring to the table
  • To discuss and debate on expanding and fortifying the ecosystem to ensure steady supply of required ‘design’ talent to Indian eCommerce companies

Case Positioning and Setting

This Case Flyer can be used for either of the following:

  • In MBA Program - eCommerce Course - Business Models and Talent Sourcing - To discuss the business models of eCommerce companies and debate on why many Indian eCommerce firms are recruiting ‘designers’ for several of their functions
  • In MBA Program - HRM Course - Recruitment (Campus Recruitment) - To discuss the pros and cons of Indian eCommerce firms sourcing ‘design’ talent from campuses
  • In Executive MBA or Executive Development Programs - Either for HRM Course or for Talent Sourcing in Indian eCommerce firms or increasing demand for designers in eCommerce firms


This Case Pack Includes:
- Abstract
- Case Flyer
- Analysis


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