Customers buy solutions, not tech: Persistent Systems MD Anand Deshpande

Pune: Customers don’t buy technology, they buy a solution for their problems, said founder, chairman and managing director of Persistent Systems Anand Deshpande on Friday.

Deshpande was part of a talk on Scaling Technology Startups at Venture Center.

He said identifying a problem and solving it is the right way to acquire customers and scale up any start-up, than building technology for its own sake. His speech outlined the three most essential aspects for technology companies as sales, teams and funding.

The event also saw the launch of CanDid Vol 2 by N Ramakrishnan, documenting journeys from Venture Center’s startup ecosystem.

He gave the example of a company selling magnetic resonance imaging. (MRI) machines that struggled to find buyers, despite sophisticated technology. He said the company later pitched the product not for its technology, but as a way for hospitals to increase the number of scans and make profit. It even went on to make MRI scanning, which can be intimidating for a child, a game-like experience, said Deshpande.

He urged new players to build their own niche, rather than be another player in a market dominated by others. Citing Paper Boat’s example, Deshpande said they didn’t copy Coca Cola or Pepsi and entered the Indian flavours market instead. He spoke about the company’s storytelling-driven packaging and their tie up with an airline before it became available in markets. He said the emotional branding struck a chord with buyers and it helped them grow.

“Be a leader in your market. Choosing a category correctly to become the leader in the market is the key to success,” he said.

Deshpande further said that people join a company if it has a realistic and compelling mission as well as a strong culture. “Not everything can be written down. Having a belief system is important in a company and it is crucial to act accordingly all the time,” he said. On funding, Deshpande cautioned founders against approaching venture capitalists without a clear path for investor returns through IPOs, acquisitions or future investment rounds.