Enter, THE | GRID
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The document explores the current status and definitions of small businesses in Saudi Arabia, highlighting their significant contribution to the economy. It categorizes small businesses based on size and capital, noting that they comprise over 90% of all businesses in the country. Additionally, it discusses the challenges and opportunities for these businesses in the digital age and emphasizes the need for innovation to redefine the small business market.
![Understanding
The [SMALL BIG] Opportunity
More @ www.EnterTheGrid.net](https://image.slidesharecdn.com/enter-140724065546-phpapp01/85/Enter-THE-GRID-1-320.jpg)
Enter, THE | GRID
- 1. Understanding The [SMALL BIG] Opportunity More @ www.EnterTheGrid.net
- 2. Context In this section we shall explore the current small business status market in Saudi Arabia and the size of small businesses. We shall also define small businesses, shade the lights on some of the things happening in the small business space and show the opportunity of this space. Definitions Market Status C The Missing Middle Context www.EnterTheGrid.net
- 3. C How Small Businesses Are Defined? Definitions
- 4. Defining Small Business in Saudi Arabia Source: Arab – EU Event Micro business are less than 10 employees. Small enterprises as having less than 60 employees with less than 5 million Saudi Riyals (1.3 million $) of capital. Medium-size enterprises as having less than 100 employees and has capital between 5 and 20 million SR (5.3 million $). C
- 5. Other Criteria Used For Segmenting Businesses C Company Size Capital Turnover Vertical
- 6. C Some Facts / Numbers for KSA Market Market Status
- 7. Small businesses as a percentage of total businesses Source: Research Agency C
- 8. 665k 205k 82k Number of Small Businesses in KSA Sole Traders SOHO SME +90% Of all business in KSA are small business Source: Research Agency
- 9. To Increase The Contribution Of SME’s … Sources: Zawya-‐Thmoson Reuters report 4.5 Million Are employed by SME’s mostly foreigners Investment in small and medium enterprises in Saudi Arabia is expected to grow to more than USD 70 billion by the end of 2015 By government and banks C
- 11. #OfFirms Large SME Micro High Income Countries Low Income Countries Who Are The Missing Middle? The Missing Middle C Smoothing the line like high income countries, means a double digit growth to the overall GDP
- 12. “Small is the new BIG!” C
- 13. Business We shall re-define small businesses. Look at the 7 dimensions analytical framework to look at small business will be shown. The basic needs and the un-articulated needs will be explored. Business B 7 Dimension Analysis Redefining Small Businesses www.EnterTheGrid.net
- 14. Analysis of Small / Medium Business Req. The 7 Dimensions … B
- 15. Macro-level Look at SME’s (The 7 Dimensions) Usability Forms ! Internationalization ! Saudization ! Globalization ! Business Environment / Policy Capital Access Small Business Business Development Business Enablement Partnership Networks Customer Intimacy Reputation / Credibility Partnership Conversion Intellectual Property Team Products / Services User Base Revenue Extra Dimensions B
- 16. A New Look to Small Business Redefining Small Businesses B
- 17. Based on observation and interviews with at with 10’s of small to medium businesses B
- 18. THE BABY BUSINESS Mama! THE ONLINE Lets Meet Online! THE WALKING DEAD An old poem in a new world! THE LONELY Alone, together! THE BIG SMALL I am the tough one! The Five Archetypes of SME’s B
- 19. Customer Touch-points Technology Profile Quote Pain-points Decisions Target Market Firmographics Value Benefits Geographical Footprint Franchising Enabled Low High Tech Awareness Low High Tech Readiness In-House Outsource Tech Resources Owner Committee Decision Making Slow Fast Decision Process Value Network Lo-Tech Hi-Tech Business Type Cloud Ready <1 >10 Years In Business G M DS We are trying to stay alive! and we need others for that! BLC Starting Growing Maturing Declining The Baby Business Normally provide services for " consumers. Unique ideas but lack of " execution. 2-10 Employees. Barely having the cash flow to make the business alive. No materialized turn over. - Survive and later scale! - Establish a sustainable business - Finding the market sweet-spot - Getting customer access - Showcasing the value / discovery - Validating the business model - Very limited resources - Finding investors - Normally they love partners with pay-as-go service models - Mostly try to stay self independent and relay on SaaS providers like Google, Amazon, DropBox, Etc. - Try with go with the first partner that works to prove the concept - Personal credit cards is used - Normally relay on cloud providers like Google, Amazon, Etc.. - SaaS software is very common - Online communications like Skype and GoToMeeting GTM B C Business Consumer B
- 20. Customer Touch-points Technology Profile Quote Pain-points Decisions Target Market Firmographics Value Benefits Geographical Footprint Franchising Enabled Low High Tech Awareness Low High Tech Readiness In-House Outsource Tech Resources Owner Committee Decision Making Slow Fast Decision Process Value Network Lo-Tech Hi-Tech Business Type Cloud Ready <1 >10 Years In Business G M DS We are alone, together! BLC Starting Growing Maturing Declining The Lonely Normally, in retail business but" other variations are there. The " business normally has a low or no marketing. Normal turn over is between 200K and 1M. Employees between 30-100. With multi-city silo’s and local warehouse setting. Normally a sole trader. - Revenue maximization - Minimizing costs - Customer penetration - Having a sustainable flow of customers, since these business normally are one-off in terms of customer service - Customer intimacy - Customer discovery is a pain-point, as the business try to find the best accessible places and hoping customers will come! - Maintaining a consistent cash-flow - The move toward the digital age For product variation, they relay on existing market suppliers who take the hassle of finding what is normally cheap but reasonable quality products. Some business go an secure suppliers in manufacturing countries like China or so. - POS Credit / Debit card machine are typical, although not always. - If there is a POS application, normally an outsourced one with one OFFLINE PC being the host, and maintained by that third party. - Landline phones B C Business Consumer B
- 21. Customer Touch-points Technology Profile Quote Pain-points Decisions Target Market Firmographics Value Benefits Low High Tech Awareness Low High Tech Readiness In-House Outsource Tech Resources Owner Committee Decision Making Slow Fast Decision Process Value Network Lo-Tech Hi-Tech Business Type Cloud Ready <1 >10 Years In Business G M DS Start small, but be smart. Online is the new frontier. BLC Starting Growing Maturing Declining The Online Cover multi-industries but mainly " retail and consulting are the battle" fields of these companies. Normally have minimal budget for marketing (expect online ads) and relay more on trust and relationships. Discovery of business online. Yearly turn over 500K to 3M. Has 10-40 employees max, normally in one city its located. Could be providing service in near GCC countries. - Revenue maximization - Revenue optimization - Customer penetration - Market growth - Awareness & Discovery by potential customers - Having a scalable business - Visible reputation to the world - Securing financial from customers - Clear cost pricing models (by performance) - Could relay on external partners from international countries and be interface for them locally - Mostly try to stay self independent and relay on SaaS providers like Google, Amazon, DropBox, Etc.. - Business credit card is mostly means for online payments - Normally relay on cloud providers like Google, Amazon, Etc.. - SaaS software is very common - Online communications like Skype / GTM B C Business Consumer Geographical Footprint Franchising Enabled B
- 22. Customer Touch-points Technology Profile Quote Pain-points Decisions Target Market Firmographics Value Benefits Franchising Enabled Low High Tech Awareness Low High Tech Readiness In-House Outsource Tech Resources Owner Committee Decision Making Slow Fast Decision Process Value Network Lo-Tech Hi-Tech Business Type Cloud Ready <1 >10 Years In Business G M DS I may be small, but I am strong enough to show the big one what I am made off! BLC Starting Growing Maturing Declining The Big Small Normally work in services /" consulting if targeting business. " Multiple chains will be available in the case of consumer as customers. Reputable brand. Quality value proposition. High steam business. Yearly turn over 2M to 10M. Has 50-200 employees. May have different branches within the MENA region. Present in trade-fairs & exhibitions. - Revenue maximization - Revenue optimization - Market growth - Business operations optimization - Long tendering process with the big ones - The move toward omni-channels - Optimizing the customer experience - Business efficiency & agility - Internationalizing the brand - Very good relations with the business market due to reputation. - Act as mini enterprise in terms of business relationships with partners - Work with design agencies for PR - Selects partners based on their brand perception - Integration with banks and operators for service fulfillment / infrastructure is most likely - For data centers may relay on local ICT players B C Business Consumer Geographical Footprint B
- 23. Customer Touch-points Technology Profile Quote Pain-points Decisions Target Market Firmographics Value Benefits Franchising Enabled Low High Tech Awareness Low High Tech Readiness In-House Outsource Tech Resources Owner Committee Decision Making Slow Fast Decision Process Value Network Lo-Tech Hi-Tech Business Type Cloud Ready <1 >10 Years In Business G M DS We are an old poem in a new world! We need to transform for this new world, anyone can help us? BLC Starting Growing Maturing Declining The Walking Dead Normally targeting business with " wholesale. But for some cases can be for " consumer, like pharmacies. May have GCC business opreations. Yearly turn over 5M to 10M. Has 200-300 employees. High bureaucracy. Family owned business. Business is established long ago. - Business / Brand renovation - Revenue optimization - The move toward the digital age - Business efficiency & agility - Regain market trust - Market influencing stakeholders with good connections with gov. - Established business partners with the same profile as walking deads - Bank wire transfers as the main mean for money transferring. - May try to throw technology at the problem with out understanding its real value that’s for. B C Business Consumer Geographical Footprint B
- 24. Mature Immature Intangible Value Benefit ICTapabilities Tangible THE BABY BIG SMALL THE LONELY WALKING DEAD THE ONLINE B
- 25. “No one cares how much you know, until they know how much your care” B
- 26. Innovation To re-define the small business market, a new value proposition and a a new story will need to be lay down for how do we see and foresee the business market. A look at the opportunity in relation to our capabilities and a defining of a new experiences tailored for the identified 5 business archetypes. Innovation I Insights www.EnterTheGrid.net A New Experience
- 27. Designing With Clear Vision In Mind Insights … I
- 28. “Insights shifts toward a new story , a new set of beliefs that are more accurate, more comprehensive and more useful” I
- 29. Mature Immature Intangible Value Benefit ICTapabilities Tangible BIG SMALL THE ONLINE Trusted Partner Market SweetSpot Customer Access Patient Capital Discovery Building Muscles Value Network Discovery Clear Cut Costing Visible Reput. Scalability Biz. Optimization Going Global Agility Customer XP Omni-Channeling Cust. Intimacy Being Digital Discovery Mobility Moving Integration Brand Renovation Being Digital Biz. Optimization Agility B THE BABY THE LONELY WALKING DEAD
- 30. I Creating a Future Story A New Experience
- 31. “The dark future can be avoided if you alter the past!” I
- 32. I http://youtu.be/quRPiMyRz9w THE | GRID Introduction
- 33. THE GRID! I
- 34. Transforming the 5 Archetypes
- 35. Citizens of The Grid: 6 Types Of Citizens I Grid Citizens Traditionalist Explorer International Contender Platform
- 36. The Baby: Future Evolution I Today Tomorrow Similarities Differences - The passion for the business idea - The team - Explorer what's new mindset - Availability of resources - Discoverable - Known by lead customers - Trialability sandboxes - Ability to take calculated risks Explorer Business that is small enough to maneuver fast and help in bringing new concepts and innovation to the grid. They are also egger to be part of something bigger and have a great team sprit To Be Transformed
- 37. The Orphan: Future Evolution I Similarities Differences - Maintain the tradition - No big sizing - No big changes - Moving to the digital age smartly - Natural customer interfaces - Knowing the customers - Easy integration - Customer discovery - The utilization of BYOD -‐ Traditionalist Today Tomorrow It’s successful business that provides great customer value while maintaining their tradition To Be Transformed
- 38. The Onlineho: Future Evolution I Similarities Differences - Clear costing - Maintaining business integrity - Build on online presence - Better marketing & discovery - Creating physical footprint - Visible reputation - Move to intention economy - Efficient social presence Today Tomorrow Contender Business with an established brand name and market specialty. Its do all its best to prove that it’s the best in its class To Be Transformed
- 39. The Big Small: Future Evolution I Similarities Differences - Market expansion - Build on same resources - Finding new markets - Omni-channel customer interfaces - Building value networks Today Tomorrow International Mature and profitable business that is looking to expand its geographical footprint to provide its value propositions out side the kingdom To Be Transformed
- 40. The Walking Dead: Future Evolution I Similarities Differences - Physical business footprint - Maintain brand name - Moving to digital age - Natural customer interfaces - Move to intention economy - Brand re-birth - Building value networks Today Tomorrow Platform Business that needs help of others and provides the space for other grid citizens to collaborate with it to help it better expands and renews its market position To Be Transformed
- 41. “The secret of disruptive innovations and business models isn't about that they disrupt the industry; Its about they disrupt the people. They change how they feel about something, in a way that’s enough to change how they behave” I
- 42. THE GRID is the story of the future I
- 43. “Back To The Future” Future Scenarios What You Already Know Business Market Join us today: www.EnterTheGrid.net