Team Lucep – Bangalore, India (IBD Summer 2016)

Background:
On a sunny Sunday afternoon in May, the IBD class of Summer 2016 walked into a Berkeley Haas classroom in eager anticipation for what was to come.  It was then that we would learn where our IBD adventure would take us, and which of our classmates would be coming along for the ride.  We were thrilled to meet each other for the first time and discover that we would be heading to Bangalore – the “Silicon Valley” of India.  Although we started out as a team of acquaintances at the time, the 8 week IBD experience would transform us into a tight-knit family.

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We hit the ground running by setting up our first client call within days after the first class.  We were assigned to work with Lucep, a startup that built a tool for lead management and sales acceleration.  This tool appears as a widget on the customer’s website and is similar to a “Contact Us” box that requires fields of information to be filled out (name, company, phone number, etc.).  The information that’s submitted is sent to a salesperson’s mobile phone in which the salesperson is then able to connect with a customer in 60 seconds or less.  The idea behind this is that businesses (especially startups and small/medium businesses) need to engage with prospective leads as soon as possible to prevent businesses from losing leads to their competitors.

Lucep then shared with us their challenge.  How do they go to market in the U.S.? How do they go to market in India? Can a single strategy be applied in both countries?  Or would each country require its own unique game plan?

The research:

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Since we all hailed from different backgrounds, we knew that gaining an understanding of the product offering would require a considerable amount of research.  We decided to focus on 3 main pillars:

  • First, we looked to industry news, articles and blogs to learn as much as we could about sales acceleration and lead management. This meant keeping up with the latest industry news and articles on sites such as TechCrunch and following relatedt tech blogs.
  • We then analyzed the competition by downloading whitepapers, watching informational videos, and even contacting competitors directly to get a more in-depth understanding of their products and how Lucep might differentiate itself.
  • Most of our research insights were derived from interviews. We reached out via our personal and Haas networks to learn about which SaaS products were currently being used by companies in the high technology indstury.  Also, we ascertained whether these companies placed an emphasis on fast response to prospective leads (Lucep’s core value proposition) and companies’ feedback on Lucept’s product.

We spent the first 6 weeks of IBD (up until we left for Bangalore) vetting out the U.S. market only.  The focus switched over to the Indian market once we arrived in Bangalore.

Day of Arrival
The day had come and we finally arrived in Bangalore after enduring a 20+ hour travel time from San Francisco to Bangalore.  Our client graciously sent a car to pick us up af the airport.  As we traveled from the airport to the office, one visibly difference between the US and India became apparent.  Bangalore traffic is unlike we had ever seen.  There is endless honking coming from a mix of rickshaws, cars, trucks, motorcycles, and bikes that weave in and out of each other and avoid cows and other animals idling in the middle of the streets.  Yet, there seemed to be a hidden sense of order underneath the seemingly chaotic traffic since no accidents or road rage were observed and locals seemed to have mastered the art of the “near miss” when driving through a tangled web of people, animals, and cars.

After 2 weeks, we learned that the keys to successful driving in Bangalore require 3 things – a good horn, good brakes, and good luck.

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Interviews:
Similar to our approach in the U.S., much of our research in India was based on interviews that were mostly set up by the client.  We had the opportunity to speak to a wide range of professionals including those working in sales, marketing, and even CEOs and founders of established Indian tech companies.  This was an incredible and eye opening experience and really brought to life some of the cultural differences between the U.S. and Indian markets.
One of these differences is the idea of “jugaad.” This word, originating from Hindi, refers to intelligent hacking to find a low cost solution.  We learned that SaaS has not been a successful model because of this juggad.  Rather than purchase a SaaS solution, many companies choose to “jugaad” a solution by creating their own in-house customer relationship management (CRM) systems, adopting the use of spreadsheets for complicated tasks, or installing pirated software.  We found that this greatly differed from the Silicon Valley startup scene where SaaS products such as Marketo, Hubspot, and Salesforce were fully adopted and paid for by organizations ranging from a handful to thousands of employees.

 

TechInAsia:
To supplement our research, Charlies Salazar was sent on Berkeley Haas Team’s behalf to attend the TechInAsia conference, a gathering designed to connect Asia’s tech ecosystem.  Conference attendees included a multitude of reps from startups across Asia, guest speakers, and investor panels.  The conference culminated in a pitch competition in which one lucky startup received financial backing to pursue their idea.

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Reflection:
Looking back on the experience, it was nothing short of incredible.  We were extremely lucky to have been assgined to such a amazing client and wondrous country.  Lucep were incredible hosts and we were able to learn a great deal about the Indian technology and startup scene from them.  We thank the IBD program and Berkeley Haas for giving us this precious opportunity that definitely a trip of a lifetime.

For a more visual look into our trip, please check out our video blog:
https://www.youtube.com/watch?v=-01RrWtqGmE

Updates from IBD Team PAG Asia Capital

MBA students Zarrah Birdie, Tenley Ghan, Stanley Hou, Yuka Morita and Jay Obaze are working on an International Business Development project with PAG Asia Capital in Chengdu China. The project is focused on one of PAG’s portfolio companies in the K-12 space, the team is working closely with senior management to better understand opportunities for expansion of brand equity across the K-12 spectrum.

Team IBD China headed to Chengdu earlier this May to help one of the best pre-school and elementary school chains in the city explore options to strengthen its brand and expand its operations. Our motley crew included Zarrah Birdie (Ms. Fearless Team Lead), Tenley Ghan (Ms. Lets-Try-All-The-Foods), Stanley Hou (Mr. Best-Make-Believe-Dad), Yuka Morita (Chief Food Officer and great Mandarin speaker), and Jay Obaze (Mr. Chill). During our time in Chengdu, we pushed ourselves to operate in a vastly different cultural and linguistic setting than that to which we’re accustomed, tried new and crazy foods, found ourselves in all types of adventures, and deepened our friendships in ways that only traveling and working together can. Here are the top ten most memorable moments from our three weeks in China.PAG_1

  1. Hanging out with awesome kids at 10 pre-schools and elementary schools: What happened when five MBA’s walk into a kindergarten in Chengdu? We saw how eager they are to learn, watched them be better artists than we ever could be, and best of all, had the chance to eat dumplings that they made for us in their cooking class from scratch, right there in the school hallway! The team can attest to these dumplings being the best we’ve ever had.PAG_2
  2. Basketball at the Primary School: After a busy day visiting the primary school, the team found ourselves standing on their basketball courts. After a friendly bout of trash talk with the Principal of the school, Tenley, Stan and Jay weren’t going to let skirts, slacks and hard bottoms get in the way of showing how the U.S. dominates at basketball. Needless to say, the crowds of primary students were very impressed!
  3. Learning how to host meetings to a largely Mandarin speaking audience solely through an interpreter, and never really knowing what the translation came out as on the other side.
  4. Going undercover during our our investigative research into competitor kindergartens in Chengdu: Stan had two “wives,” Yuka and Zarrah, and each of these “married” couples visited competitors’ kindergarten as “parents.” Stan performed especially well in his parental duties by being a doting, empathetic father.
  5. Getting a massage the afternoon after we delivered our final presentation to a group of 30 principals and school managers. After 3 weeks of work in-country, including three 12+ hour days immediately prior, scrambling to write our final 55-page report and prepare our 2 hour presentation, we had earned it!
  6. Staying at Zhou Ma’s Tibetan Homestay in Jiuzhaigou: Our visit to Jiuzhaiguo (pronounced “joo-jai-go” and often referenced as China’s most beautiful national park) was filled with surreally beautiful scenery of the Min mountains, glacial fog kissed lakes, and free-roaming yaks in the hills. We stayed at a traditional Tibetan home run by a woman named Zhou Ma and her Amma (mother), a grandmotherly Tibetan lady who barely spoke English but cooked us some of the best meals we had in China. Breakfasts consisted of homemade eggs and bread with yak meat combined with honey straight from honeycombs the family harvested in their garden. For anyone traveling to Jiuzhaigou, we highly recommend staying at Zhou Ma’s Tibetan Homestay or Eco Lodge.PAG_3
  7. Being featured as surprise guests on BBC Travel’s special on Juzhaigou: Jiuzhaigou’s scenery was awe-inspiring but the real surprise was when we got drafted as last-minute guests on a BBC Travel special in the town during a cooking class at the Tibetan restaurant Abu Lu Zi (another of Zhou Ma’s entrepreneurial ventures). Look for us on the BBC Travel website sometime in June!PAG_4
  8. Doing laundry in Zarrah’s bathtub: Living out of a 5-star hotel. Private drivers every morning. Eating on the dime of our extremely gracious clients. Needless to say, we were transitioning into our new routine pretty easily. Only one problem: we quickly realized that laundromats are not a “thing” in Chengdu – it’s either dry clean or do your own laundry here. So, we improvised and worked on our “spin cycles” in Zarrah’s spacious bathtub.
  9. Boldly trying new Chinese foods, with the fearless leadership of our “Chief Food Officer” (Yuka): Though originally from Japan, Yuka knows her Chinese food from living in Beijing for three months and Shanghai for six in her pre-Haas life with McKinsey. Our team depended on Yuka to help us explore a range of new flavors in Chengdu. Some were delicious, like hot pot, soup dumplings, mapotofu, baozi (buns!), delicious greens, and dim sum. Others pushed our limits, like fried chicken feet, cow spinal cord, tongue, various intestines, and frog.
  10. Baby pandas: Chengdu is the panda capital of China. We watched 7 baby pandas play for an hour. What more do we need to say?PAG_5

Arrival and Exploring the Brands of Madura

Full-time MBA students Lamees Alotaishan, Tyler Fisher-Colbrie, Derek Kenmotsu, Vanessa Pau, and Tina Ying are working with a major fashion apparel company located in Bengaluru, India aimed at determining the viability of integrating wearable technology into their product lines.

After a 20 hour journey, Team Madura landed in Bengaluru, India and hit the ground running. First order of business: retail therapy! In order to understand the Madura Fashion & Lifestyle brands, we visited four of Madura’s flagship stores of Peter England, Allen Solly, Van Heusen, and Louis Philippe. Each brand maintained its own unique personality and price point.

Understanding the nuances of each brand helped our team prepare for our mission: To explore the viability of integrating wearable technology into Madura’s product lines.

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The flagship store of Louis Philippe, Madura’s luxury brand

Tina and Lamees checking out traditional designs 

Tina and Lamees checking out traditional designs

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Derek can’t stop raving about Indian wedding attire

Fashion meets Lean Manufacturing
From concept to creation, the Madura’s Technology Management Center (TMC) brings fashion designs to life.

Our second day focused on observing and understanding the manufacturing operations of Madura. The TMC houses the most specialized seamstresses in the company. Their goal is to produce the newest concepts created by brand apparel designers.

From the TMC, we traveled to Anekal District to visit Madura’s manufacturing facilities. We observed the impressive mass production of Madura’s apparel. From elaborate embroideries to 120 operations that goes into completing a formal suit, Madura implements the lean manufacturing process, Kaizen, which they adopted from the Toyota Production System (TPS).

A glimpse of the Technology Management Center

A glimpse of the Technology Management Center

Outside of the Madura manufacturing facility

Outside of the Madura manufacturing facility

Ideating with Madura

We led Madura’s Product Development & Quality Assurance Team and four individual brand teams through five ideation sessions to create innovative e-textile solutions. We started by giving the teams an example persona with a pain point. Then we introduced them to the user-centric design thinking process to ideate product solutions that addressed that pain point.

We walked each group through the process, then broke off into teams to ideate around specific lifestyle applications that can be addressed by e-textile and smart clothing solutions. The teams went through a series of diverging and converging to finally come up with the most compelling ideas. Teams consisted of experts from product, marketing, design and textile experts. Product ideas ranged from fad fashion to futuristic technology concepts that are not yet developed. The ideation sessions were filled with energy, open-mindedness and creative prototyping. Afterwards, we shared a framework for launching these potential solutions through the Business Model Canvas tool.

Our presentation to jumpstart the ideation sessions

Our presentation to jumpstart the ideation sessions

Tina coaches designers and product managers through the ideation phase

Tina coaches designers and product managers through the ideation phase

A prototype of Life Connect, a garment that uses e-textiles to alert help

A prototype of Life Connect, a garment that uses e-textiles to alert help

An Excursion to Mumbai

Mumbai was a breath of fresh air, a very cosmopolitan city. From pushing through a bustling crowd at the Gateway of India and taking a ferry to Elephanta Island, our adventure to Mumbai was full of highlights. We also had the pleasure of catching up with the other Haas team that was based out of Pune, India.

At Elephanta Island, we captured the sight of a monkey feeding its little baby. The weather was very hot and humid, but was well worth the trip. There was a little bazaar under bright blue and yellow canopies on the island where visitors can shop for trinkets and crafts made by the locals. The island itself was a beautiful sight, with tropical palm trees and blue ocean surrounding the Hindu religious sights. We had a tour guide give us a brief explanation of the 1,200 year-old history of these sights. Then we topped off the night at a skydeck overlooking all of Mumbai while watching the UEFA Champions League Finals. It was the perfect conclusion to a successful trip!

Locals that we sighted on Elephanta Island

Locals that we sighted on Elephanta Island

The Trimurti sculpture at Elephanta Island

The Trimurti sculpture at Elephanta Island

For a more visual look into our trip, please check out our video blog:

Updates from IBD Cambodia – Team Samai

FTMBA students Jenelle Harris, Bruno Vargas, Neha Kumar, Charlie Reisenberg and Marcelo Kabbach spent their Summer IBD project working with Samai Rum Distillery in Phnom Penh, Cambodia.

Cambodia’s First Rum Distillery

Our team of five was assigned to consult for Samai Rum Distillery, located in Phnom Penh. Founded by Daniel Pacheco and Antonio Lopez de Haro in 2014, Samai is Cambodia’s first and only distillery. Samai relies solely on products grown in Cambodia, including sugar cane molasses from the Cambodia countryside. As a growing enterprise, Samai looked to us to help strengthen their internal operations (finance, accounting, and inventory management) as well as refine their marketing and expansion plans to ensure steady sustainable growth.

A Day in the Life of the Cambodia IBD Team

Thursday, May 19, 2016

After spending the week getting caught up to speed on the inner workings of Phnom Penh’s food and beverage scene, our team was eager to get our hands dirty in a liquor masterclass, taught by Master Mixologist, Paul Mathews. For two hours we learned about the flavorful blends of various grades of gins and tricks for how best to combine them with complementing tonics and garnishes, such as cinnamon, cucumber, and lime. In attendance were many Phnom Penh restaurant owners, bartenders and other local expat movers and shakers including a mezcalier – one of only thirty in the world.

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Team Samai at the gin masterclass hosted by Samai’s primary international distributor, La Familia, at their retail store, La Casita.

Following the gin masterclass, the crew headed back to Samai to experience their first Samai Rum night. Every week the Samai Distillery opens its doors to the public so that new and devoted Samai customers can enjoy hand-crafted cocktail beverages prepared by Samai’s internal team of bartenders. The most popular cocktail on the menu is the infamous 21 Points, cheekily named by co-owner Antonio. (A while back local bartenders were challenged to create Samai cocktails to be ranked out of 20 points. This drink scored 21.) 21 Points features the Samai Dark Rum, cola, lime, bitters, and fresh sugarcane. We can attest that it is as delicious as it sounds! We spent our evening interviewing customers, bartenders, expats and locals to gain deeper insight into their perspective of Samai and the overall beverage scene in SE Asia. These insights were an invaluable contribution to our formulation of marketing and expansion strategies.

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Friday, May 20, 2016

The next morning we met with the founders to present our initial findings. Given that Samai is a growing start up, our scope had fluctuated quite a bit over the past few weeks as we learned more about their business needs. In week 1 the team presented a new inventory tracking tool, content and reformatting recommendations for their in-progress website, an updated financial model, an expansion forecasting tool and initial research into new bars that Samai should consider supplying to in the coming fiscal years. All of these tools will enable Samai to approach growing (particularly internationally) very strategically and thoughtfully, taking into consideration the relevant financial, sales and production constraints. They will also be able rely on a strong marketing framework so that their story is communicated to the world in a consistent and meaningful way. Needless to say, it was a productive first week!

After meeting with the founders for two hours and getting their feedback on our submissions and next steps, we prepared for a weekend trip to Singapore. Given that Singapore is on top of the list for Samai’s expansion, we decided as a team to travel there to visit our target bar/restaurant list in person to provide them with more pointed expansion recommendations. We focused our itinerary on the Singaporean venues featured on the infamous World’s 50 Best Bars.

Update from IBD Team Seva

Seva-HV Desai IBD Team – Clare Schroder, Laura Stewart, Lizzie Faust, Rene Castro, Santiago Marchiori.

Altruism. It is the defining characteristic of those we have met here in India working for the HV Desai Eye Hospital (HVD). Two months ago the Seva-HVD Haas IBD team came together in pursuit of financial sustainability for the non-profit eye hospital. HVD aims to prevent needless blindness regardless of one’s ability to pay, and they do so through subsidizing those unable to pay with the profits from those able to pay, as well as donations. In India, this model is not unique to HVD, yet it is far less common in our own countries of Argentina, Chile, and the U.S. HVD’s tireless dedication to this work is evident in the significant time they have spent supporting our work here in India. Their goodness comes through in their hospitality, ensuring our own comfort and enjoyment of the city. A hospital board member even welcomed us to his chocolate factory on Sunday, where we indulged in chocolate, organic foods, ice cream, a hike, a temple visit, and a local village wedding.

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The groom, a family member, and the bride

At the wedding, we quickly came to realize this was the marriage between poorer members of society, the people HVD seeks to help. And while we were unprepared for the wedding and had nothing to offer, the bride’s family gifted each of us with a coconut.

Overwhelming altruism isn’t the only new experience we’ve had in India. We’ve tried unfamiliar foods (our stomachs regretting only a small percentage), learned burping in public is socially acceptable, and seen eyeballs in the eye bank.

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Col. Deshpande showing us a cornea in the eye bank

We have also experienced the famous (or infamous?) Indian head shake/nod/wiggle. We had heard from our pre-departure cultural interviews that the quirky motion indicates agreement, meaning yes or please continue, so during our day of arrival presentation we felt prepared when the head shakes began.

We quickly took a nose-dive though, as the head shake changed to an inexplicably clear “no” head motion. How did we get the number of people blind in India wrong? Was our average cost of surgery that off? As each of us presented, we panicked in the same way, over explaining the more vigorously they shook their heads “no.” Our cultural interviews hadn’t prepared us for this – thanks Arun.

We progressed into our first week still uncertain about the head shaking, but happy to be in country, seeing the hospital we had heard so much about. We worked alongside doctors to brainstorm patient experience improvements, visited competing hospitals, and conducted over 20 patient interviews.

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 Laura, Clare, and Santi doing some PFPS-style brainstorming with 7 residents

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Santi interviewing a patient

During those interviews, we began with, “How was your experience at HV Desai?” Head shake.

“Your experience has been ‘yes’? Could you elaborate on that?” It was after this interview, a few days in, that we mustered the courage to ask why people so often vehemently disagreed with us with their head shake while affirming yes verbally. We learned any head motion is a sign of agreement and we felt much better about our first week.

The patients have confirmed that HV Desai has incredible eyecare quality, value for money, the most advanced technology, and the most experienced doctors. We rarely heard about their altruism or their charity playing an important role in the eyecare provider selection process for the paying patients, the patients we need to attract more of to achieve financial sustainability. This finding is one we’ve seen not only in patient interviews, but also through industry research. Moreover, patient surveys and Hospital Management Information System (HMIS) data analysis have revealed the importance of amenities and eye lens differences. Again, not charity.

Here we are, five business students in India telling a nonprofit hospital to change their branding for the paying segment from a focus on charity to a focus on quality and affordability.

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Santi, Lizzie, Clare, Rene, and Laura being tourists, led by Outreach Coordinator Pravine

Unlike the staff and management, the altruism is not our target segment’s main motivator for eyecare. Our job now is to convince leadership that in addition to a shift in branding, building upon and reinforcing the most important needs of the paying patient – specific amenities, price transparency, shorter wait times, eyecare excellence – will create financial sustainability. Growing profits is not just for corporations, but also for a nonprofit hospital that can now provide even more free surgeries to those unable to pay.

 

Exploring Automotive Markets in India

FTMBA students Thomas Jacobson, Irene Liang, Justin Simpson, Elmer Villanueva, and Marshall Witkowski are currently in Bangalore, India, working on an International Business Development (IBD) project.

I looked left, saw open road, and took a bold first step across the street. A horn sounded and three motorbikes whizzed by, just several feet in front of me. Having forgotten again that traffic comes from the right, I stepped back to the curb defeated. Elmer, as usual, had fearlessly crossed ahead. With a new break in traffic, I darted into the road. I’d nearly made it to the median when I had to dodge one last tuk-tuk (auto rickshaw) that appeared out of nowhere!

Safely on the median now, I contemplated the next half of my journey. I waited patiently for several minutes. Discouraged by the never-ending traffic, I decided to try crossing like the locals: walk slowly and deliberately one step at a time and just pray that the traffic doesn’t hit me. After a terrifying 30 seconds and amidst a cacophony of car horns and my own adrenaline-filled heart beating out of my chest, I finally reached the far side and raised my fist in triumph at my successful road crossing! I turned around to celebrate with my teammates, only to sadden at the sight of them still on the other side. They hadn’t made the journey with me. I had to wait several more minutes as they crossed one-by-one, each person utilizing a different strategy to get across.

India Mysore Thomas & Marshall Cross Street

Our Project

Having now been in country for ten days, our IBD group has been hard at work on our client project. From the moment we touched down, our client has been extremely hospitable. They’ve provided us all the resources we need to succeed and we’ve truly enjoyed the experience. All of the top executives have made themselves available to us and everyone we’ve met is eager to meet us and help in any way.

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Last week, we also travelled to Mysore to tour the manufacturing facilities of our client. We spent several days learning about their processes and how their products are currently made. They held nothing back, showing us everything from start to finish. We gained great insights from the trip and it really helped to solidify our understanding of their capabilities and shape our thinking for our own product recommendation.

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This past Monday, we were able to visit the Mercedes-Benz Research & Development India office. It’s a large complex of about 4,500 employees and they shared with us all about their engineering work. When Mercedes-Benz first brought their cars to the Indian market, they uncovered some interesting insights about the local market. Their car horns are typically designed for 10,000 uses, which should last the life of the car. But here in India, horns are used much more often and customers were complaining that their horns were dying within just several months! Mercedes-Benz had to install a new car horn designed for one million uses.

Yesterday we had the opportunity to visit a prominent local startup that’s developing its own electric scooter. This visit was made possible through one of our Haas classmates, proving already how valuable our new networks can be! We were excited to learn about their growing business and they were excited to hear about life in Silicon Valley.

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We’re looking forward to the final week of our stay and the culmination of our project. Our final recommendation will be delivered to the client before we leave, and we sincerely hope that they will find it useful.

The Country and Culture

We’ve gotten a thorough taste of Bangalore during our time here. The food, mostly vegetarian, has been delicious. My personal favorite dish has been the breakfast dosa, which is similar to a pancake and is served folded over a mix of spiced vegetables. Others in the group have really taken to puri (pictured below), which is a deep-fried bread that rises and fills with air before being served.

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Last week, while in Mysore, we took a short break from work to visit the Mysore Palace. It’s a former residence of the royal family and a beautiful complex only about a century old.

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After our hard first week of work, we spent the weekend near to the village of Masinagudi, deep within the jungles of Bandipur National Park, also known as the Bandipur Tiger Reserve. The weekend was largely used to relax and rejuvenate, and we took the opportunity to go on a jungle safari. We saw many deer and monkeys, a variety of birds, wild boars, a couple wild elephants, one mongoose, and the prized sightings of a couple large bison and two wild leopards! I loved how freely the animals were able to roam and, in fact, a couple wild elephants went on a nighttime adventure while we were there and caused quite some damage in a nearby village.

After all of our travel in the first week, we plan to stay in Bangalore for the second (upcoming) weekend and explore the city more. We’re having a great trip and really enjoying our IBD experience!

Updates from IBD China – Team CreditEase

Berkeley-Haas Evening & Weekend MBA students Jason Eaves, William Huang, Arthur Ng, and Harish Srinivasan participated in a summer IBD project in Beijing, China with CreditEase’s P2P Online Lending platform Yirendai.

First week in country

The team received a warm welcome from the clients during our first day visit at the Yirendai office. We presented the day of arrival presenation to the Yirendai CFO (Dennis Cong, Berkeley-Haas EWMBA Alumnus) and the senior management team. Our client had also arranged meetings for us with other CreditEase departments on Tuesday, which included Wealth Management, Personal Loans and Risk Management. To fully understand the internet finance industry in China, we performed personal interviews with our clients, industry experts and end-users. Our team members were able to obtain several good insights which helped us identify opportunites for Yirendai to further improve their marketing, operations, product development and business development functions.

First day of arrival lunch with clients at the Yirendai office (Chaoyang District, Beijing)

First day of arrival lunch with clients at the Yirendai office (Chaoyang District, Beijing)

LendIt Group Dinner with CEO of CreditEase Mr. Ning Tang (Restaurant 1949, Beijing)

LendIt Group Dinner with CEO of CreditEase Mr. Ning Tang (Restaurant 1949, Beijing)

Mobile Finance and Online P2P Lending in China

We were very fortunate to be physically in Beijing to attend the 2015 China Mobile Finance Conference/LendIt China with our clients during the first week of our in-country work. With a growing mobile user base, China has elevated the use of mobile services and online P2P platforms to include services such as mobile payments, Internet finance, transportation, home renovation, and lodging.

The LendIt conference featured several guest speakers and panelists including executives from leading Chinese mobile and P2P lending companies, representatives from P2P regulatory associations, and executives from U.S. P2P lending companies/ including Ron Suber from Prosper and Jeremy Todd from Orchard Capital. All speakers offered their key insights on the growing Chinese P2P market and the steps that need to be taken in order to continue the momentum. After the conference day, our client invited us to an intimate dinner with their leadership team and the US executives where we had the opportunity to network and learn more about global P2P trends directly from the top experts in the field.

2015 Mobile Finance International Summit/LendIt China (National Conventional Center, Beijing)

2015 Mobile Finance International Summit/LendIt China (National Conventional Center, Beijing)

Taste of China

With such a large population and so much cultural diversity, Beijing had not only the traditional northern cuisines, but also a good variety of regional foods from all over China.

Peking Duck- the signature dish of Beijing

Peking Duck- the signature dish of Beijing

We are very fortunate to have worked with Kelly Zheng (Corporate Strategist for CreditEase), who kindly took us to several specialty restaurants for dinner, even after a long day of work. The cultural experience of Chinese dining certainly surprised us and some of the foods were also quite challenging to eat.

Team dinners with our client (Kelly Zheng) at traditional Beijing style restaurants

Team dinners with our client (Kelly Zheng) at traditional Beijing style restaurants

Culture, History, and Art of China

As China has emerged to become a major economic power – with annual double digit growth rates – it is easy to overlook its heritage in light of the modernization happening throughout the country. While there are countless office buildings and skyscrapers under construction in the city center, China’s rich culture has remained at the foundation of its rapid forward progress. While in-country we took some time to visit historical sites and experience the performing arts.

Chinese “Face Change” performance originated from the Szechuan province

Chinese “Face Change” performance originated from the Szechuan province

The Great Wall of China, just outside of Beijing

The Great Wall of China, just outside of Beijing

Summer Palace of the Qing Dynasty Emperor located in Beijing

Summer Palace of the Qing Dynasty Emperor located in Beijing

Final Thoughts

Despite only two weeks of in-country work, our team was deeply immersed in the local business culture, food, and way of life. We observed that Chinese financial technology firms can have ambitious goals while having fun at the same time. During the process of coming up with recommendations, we leveraged the strengths of each team member and used the frameworks we learned at Haas. In our final presentation, we introduced our Berkeley-Haas innovation process to Yirendai’s executive management team and got positive feedback on our strategic recommendations related to brand awareness, net promoter score, partnerships, innovation process, and data strategy.

Berkeley-Haas IBD China Team presented CAL gear to the Yirendai management team

Berkeley-Haas IBD China Team presented CAL gear to the Yirendai management team

Updates from IBD Thailand – Team Theptarin Hospital

Berkeley-Haas MBA students Dulce Kadise, Hieu Nguyen, Suraj Patel and Lexi Sturdy worked with Thai hospital, Theptarin, to create a sustainable growth strategy for its sister foundation which aims to build healthier lives by preventing diabetes and its complications.

Striving to Achieve a Dream

To be Thailand’s leader in treatment and prevention of diabetes – A tall vision for Theptarin, a family-run, 80-bed hospital located in Bangkok.  As a young doctor at a public hospital in Thailand over 40 years ago, Dr. Thep Himathongkam had a dream of what eventually became Theptarin Hospital. Experiencing the bureaucratic challenges of the public system, he decided to start a private, for-profit hospital where he could create a specialized, interdisciplinary approach to address diabetes. But Dr. Thep’s dream to expand excellent diabetes care and prevention goes well beyond the walls of his hospital; he wants to see it spread throughout Thailand and eventually the world, which is why he created the Foundation for Development of Diabetes Care Management nearly 15 years ago.

Haas-IBD team with Dr. Thep Himathongkam and his family

Haas-IBD team with Dr. Thep Himathongkam and his family

Our IBD team was tasked with helping this Foundation develop a sustainable growth strategy for it to achieve its mission of preventing diabetes and its complications in Thailand and its neighboring countries. But throughout our work with Theptarin we learned how challenging and difficult it can be to regulate and run a for-profit hospital that has responsibility to its shareholders while carrying out a dream to fight diabetes throughout the region.

After conducting several case studies and interviews with elite health institutions from around the world, we concluded that in order for the Foundation to grow as leadership wanted, it would need its own strategy, brand and structure. One of the key struggles the Hospital and its subsequent Foundation faced was the overwhelming interconnected nature their work. To help create a clear distinction between the two entities we created a new mission and set of guiding principles for the Foundation along with a suite of decision-making tools. By doing so, we hope to provide a clear identity for the foundation and help leadership make mission-driven decisions as it grows.

Dr. Thep’s dream is courageous and inspiring, we hope that by distinguishing and defining his Foundation, as well as running a fabulous hospital, he can effect change throughout Thailand and its surrounding region. This change has already begun with the trainings that the Foundation currently provides, which have inspired clinicians to improve diabetic care in their own regions.

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The IBD team experiencing the engaging trainings provided by the Foundation

The IBD team experiencing the engaging trainings provided by the Foundation

Here’s a Youtube video of another fun teamwork building activity provided by the Theptarin Foundation: https://youtu.be/uKkVD53FOx8

Getting a Taste of Thai Culture

During the three weeks we spent in Bangkok, we conducted several interviews to test the hypothesis we had developed. However, these interviews turned out to be more than useful tools for our work; they gave us a glimpse into the Thai culture.

One of our favorite interviews was with a long-time patient and member of the Foundation’s committee. He invited us to his home to conduct the interview, which he described as a typical middle class Thai home as he gave us a brief tour. His wife and his dog were also there to welcome us. During the interview he told us stories about his family and his life. Before we left, he insisted that we try a variety of Thai desserts. These included mostly coconut treats, but also durian, a classic Asian fruit. Lexi seemed to tolerate it. On the other hand, Dulce really disliked it, and tried her best to hide it in front of our generous host.

The Haas-IBD team visiting a long-time patient and foundation committee member while getting a taste of Thai culture

The Haas-IBD team visiting a long-time patient and foundation committee member while getting a taste of Thai culture

Another interesting interview was with one of the top government officials at the National Health Security Office. This interviewee gave us a great overview of the healthcare system and the relationship with the private sector. As we were heading out, we took a picture together. This time it was Hieu’s turn to encounter a cultural difference, as he hugged our interviewee during the group picture, a faux pas in Thailand when engaging with those of high position, resulting in a concerned, but amused, look from our client.

Living the Theptarin Lifestyle

Given that we were living at the Hospital during our stay, we had no choice but to embrace the healthy lifestyle promoted by Theptarin.  On the first day our IBD team was given a tour of the facilities by Tanya, the assistant director for Theptarin Hospital and Dr. Thep’s daughter. We took the elevator to the 14th floor and viewed our hotel-like suites within the hospital’s Lifestyle Building. Tanya mentioned that the building embodied a part of her father’s dream – a place where patients and the general public could convene to learn about and practice healthy living.

Soon afterwards, Tanya provided a tour of all the services in the Lifestyle Building. “We take the stairs here,” she said. After walking down six flights of stairs, we reached the eighth floor, which included a spa, outdoor pool, and fully functional gym. “Let’s see your fitness. This machine measures body composition. Who wants to go first?” she smiled.

Hieu eagerly awaiting his body composition results

Hieu eagerly awaiting his body composition results

One by one we input our information and had the machine assess our body composition through electric pulses. A composition dashboard was subsequently printed, where Hieu’s eyes immediately honed on his 23% body fat metric. Everyone on the team was similarly surprised, and together we formulated a plan to live the Theptarin Lifestyle. The plan was simple – a daily 7am workout, small portions in Theptarin’s cafeteria for breakfast and lunch, alternating days of 7pm workouts, and sleep by 11pm.

After sticking to the Theptarin Lifestyle for three weeks, each team member achieved better body composition. Hieu was able to lose 1kg of body fat and replace it with 1kg of muscle, dropping his body fat to 22%. Success!

Heading back to Berkeley the team vowed to try to continue the Theptarin Lifestyle for as long as possible!

Updates from IBD – Team Singapore

Meet the Team:

-Niki Ariyasinghe an Aussie banker/consultant and bitcoin aficionado

-Moe Poonja a techie and DJ from Chicago

-Diego Vidaurre a Chilean banker and part-time magician

-Gavin Abreu a Mexican central banker and salsa dancer

We were all selected for this project given our prior banking experience.

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The Country

When Singapore achieved its independence, in 1965, the country was battling unemployment and serious social and economic problems.  However openness to foreign investment and promoting the creation of new companies helped the country overcome its economic foes and become one of the world’s largest financial hubs.  The result?  Well today Singapore is the third richest country of the world in per capita terms and the World Bank has ranked them the easiest country of the world to do business.

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The Project

Developing a strategy for a large financial institution in Singapore to better engage clients through digital tools allowing them to improve the customer experience. However the project had a catch to it. Instead of one client, we had two clients with two different perspectives and two distinct needs.

*Details of the client and project cannot be fully disclosed due to a signed NDA

The Process

We first started by reviewing the industry.  What are the industry standards and what are the innovations that are threatening to disrupt the industry?  To do this, we focused on the large financial institutions in North America and Europe and startups in Silicon Valley.  After we grew familiar with the industry, we talked to client-facing employees at financial institutions to gain a better understating of the costumers needs along with fintech companies with their latest disruptive innovations.  Armed with this knowledge we flew to Singapore, well equipped to offer emerging trends within the industry.  Once there, we interviewed numerous employees of the company and identified their pains and areas of opportunity.  We ideated (using post-its, of course), identified commonalities and ultimately looked to find efficiencies or enhance the customer or banker’s experience.

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And came up with a list of recommendations that could help them alleviate their pains and embrace digital tools.

The Final Presentation

We set up a final document with these recommendations and only days before our final presentation we learned that instead of presenting to our sponsor (the Head of Products) we were actually going to present our findings to the CEO of one bank and COO of the other large institution.  We worked diligently to prepare the presentation and tailor it so it is relevant despite having two separate stakeholders with two different recommendations.

We had already taken Cort Worthington’s class so we welcomed the opportunity with confidence and rocked the presentation!

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Updates from IBD Cambodia – Team SVC

Jamaur Bronner, Kelvin Mu, Carolina Paz, and Anette Urbina are full-time MBA students working on an International Business Development project in Cambodia.  Their client is Sam Veasna Center (SVC), a non-profit organization that helps preserve Cambodian wildlife through ecotourism.

Saving the World, One Bird at a Time

I’m not sure if you remember Captain Planet and the Planeteers, but it was a Saturday morning cartoon that was quite popular in the United States in the early 1990s.  The show centered around 5 ethnically diverse kids from around the world who each had the power to control an element of nature and would occasionally combine their powers to collectively summon the superhero Captain Planet.

Captain Planet and the Planeteers was an environmentally conscious cartoon series that aired in the early through mid-1990s

Captain Planet and the Planeteers was an environmentally conscious cartoon series that aired in the early through mid-1990s

These young heroes took on maniacal Eco-villains that were destroying the environment through pollution, crime, war, unethical science, and poaching.  After vanquishing the baddies, Captain Planet would end the show with his catchphrase “The Power is Yours!” – implying that we all have the power to end environmental destruction if we work together in unity.

Fast forward twenty years from the end of the TV series in 1995 to 2015 Cambodia.  The heat is stifling, the air is dusty, and dozens of extravagant hotels and restaurants stood eerily unoccupied.  This is Siem Reap in the “low season” – the May through September slog when tourist levels lull and the country is blanketed by the relentless summer heat.

Nevertheless, Cambodia – and Siem Reap specifically – is still just as fascinating and endearing as any other time of the year.  The majestic temples of Angkor Wat sprawl over 200 acres 3 miles north of town.   The Siem Reap River snakes through the core of the city, and in the evenings the bridges and side streets erupt with lighted signs for night markets and the ever-popular Pub Street.

Angkor Wat is one of the seven wonders of the world, and looks especially incredible at sunrise

Angkor Wat is one of the seven wonders of the world, and looks especially incredible at sunrise

The Haas team sent to Siem Reap was as diverse as that cartoon show – an American, Mexican, Ecuadorian, and Canadian – and the project could have easily been spun into one of the show’s plotlines.  Our client, Sam Veasna Center (SVC), is a ten year old non-profit organization that promotes conservation through ecotourism.  SVC’s clients are taken to remote areas of Cambodia to partake in birdwatching tours, and a large percentage of their tour fees are reinvested into local villages to provide incentives for sustainable living practices.  Former poachers and hunters in the village are now SVC’s greatest advocates for conservation, serving as forest rangers who carefully monitor Cambodia’s dwindling wildlife.  SVC contributes 50 cents of each dollar of revenue towards conservation and community improvement efforts.

SVC regularly meets with representatives of the communities it supports and provides funding for village projects, as can be seen here

SVC regularly meets with representatives of the communities it supports and provides funding for village projects, as can be seen here

How dire is Cambodia’s environmental situation? The country’s national bird, the Giant Ibis, is listed as a critically endangered species, with only about 250 of these birds left in the world.  Even SVC’s founding is a tragic testament to the formidable wildlife challenge.  SVC’s founder Sam Veasna died of malaria in 1999 while surveying the Northern Plans for the now extinct kouprey.

The 2015 Haas team is the third group of Haasies to work with SVC.  The first team helped design SVC’s original business model and the second team conducted site-specific investment analyses.  Our task was a fusion of the previous projects; SVC, now profitable, needed help growing the company and branching out beyond its core service offering of birdwatching tours.  Its sponsor, the Wildlife Conservation Society (WCS), had helped SVC identify a number of strategic investments that it could make at its sites, and also had ideas on additional services SVC could begin offering.  WCS and SVC wanted help evaluating those investments, as well as conceptualizing the implementation of its new product mix.

Challenges

Our project was off to a strong start during the spring semester.  Our clients, SVC Director Johnny Orn and WCS Cambodia Director Ross Sinclair, were available for weekly meetings and helped answer our initial questions as we scoped the project.  Unfortunately, one month before we were scheduled to go on-site, Ross took time off for vacation and some of our project scoping questions had not yet been addressed.  We continued working with Johnny to plan our approach for once we got on-site, but we remained concerned that our vision of project success might not align with Ross’s priorities.

Once we were on-site, we had a Day of Arrival Presentation that was well received by Johnny, and we were able to arrange an in-person meeting with Ross and WCS Technical Advisor Simon Mahood the following day.  It turned out that our plan of action indeed aligned with WCS, and they understood that our primary client for this engagement was SVC, so Johnny had the final say on our deliverables.

The Haas team grabbed dinner with Ross Sinclair and Simon Mahood, managers at WCS

The Haas team grabbed dinner with Ross Sinclair and Simon Mahood, managers at WCS

Our plan in Cambodia was to conduct a thorough financial analysis to come up with strategies for improving SVC’s profitability, conduct competitive analysis to identify best practices and optimal product mix, and to review their marketing strategy and recommend ways in which the organization could grow its reach and brand recognition.

Between the financial documents that SVC maintained and the recently-commissioned marketing strategy document, we realized that the organization had a trove of valuable information, but had not spent time analyzing this information or extracting insights.  Part of the problem was that SVC was shorthanded in manpower and technical ability – even with all of their data, few within the walls of SVC had the time or ability to extract the contents since the data was not laid out in an easily intuitive manner.  Part of our challenge was not only extracting insights and making recommendations, but also equipping the SVC leadership with tools that would improve its ability to track progress and reevaluate the organization’s position in the future.

Presentation Day

On the day of our final presentation, the contents of our deliverables were robust: we created a 129-slide deck, a 23 page Digital Marketing & Brand Management guide, an updated feedback form, an updated booking form, a competitive benchmarking database, and an extensive Excel investment model.  Our presentation was 2 hours long, including time for Q&A, and both Johnny and the WCS representative Kez Hobson were impressed with our findings.  Most importantly, our presentation included concrete recommendations and a proposed implementation timeline that gave Johnny the direction he needed to begin optimizing his organization after we were gone.

SVC hosted us as dinner guests following the presentation, and we enjoyed Khmer food and watched a documentary that described Cambodia’s wildlife landscape nearly 50 years ago.  In the film, one could see the damaging effects that environmental practices have had on the land; in the 1970’s, Cambodia’s forests covered 73% of all land area, today that figure is closer to 48%.  The country has lost more than 7% of its forest cover over the last 12 years, which is the fifth fastest rate in the world.

Dinner and documentary on our last night with SVC

Dinner and documentary on our last night with SVC

We’d like to think that the work we did this semester was a small step in improving the outlook for wildlife in Cambodia.  SVC, as one of the leading eco-tour operators in the country, is playing a pivotal role in protecting endangered species and creating habitats in which they can once again thrive.  We might not have saved the world, but we hope we’ve helped an organization focused on protecting some of the world’s most threatened animals.

From right to left: Haas teammates Kelvin Mu, Jamaur Bronner, Anette Urbina, and Carolina Paz with SVC Director Johnny Orn

From right to left: Haas teammates Kelvin Mu, Jamaur Bronner, Anette Urbina, and Carolina Paz with SVC Director Johnny Orn