IvyConnect Engagement - Scaling up Businesses in International Markets

Connect Series - Masterclass on Scaling up Businesses in International Markets with SInC IIT Delhi and E-Cell IIT Lucknow

IvyCamp in collaboration with SInC IIT Delhi and E-Cell IIT Lucknow hosted a masterclass on “Scaling up Businesses in International Markets with Business Model Innovation”. The session was led by Mr. Raghu Murthy, Regional Chief Financial Officer at GE Aerospace and an Alumnus of IIT Delhi who guided aspiring and early-stage entrepreneurs on how to expand their ventures through innovative business models.

About the Speaker

Raghu Murthy, an alumnus of IIT Delhi, currently serves as the Regional Chief Financial Officer at GE Aerospace, bringing with him 19 years of leadership experience in international markets spanning North America, Asia, and Europe. His expertise extends across diverse business models within infrastructure industrial sectors, including Energy, Aerospace, and Water. In commercial roles, Raghu scaled up businesses in emerging markets while taking $11Bn of deals to financial close. In operational roles, he drove successful business turnarounds through strategic cost optimization and process/digital transformation. Moreover, he played a pivotal role in the financial and organizational integration of acquired businesses in North America and Europe while expanding operations in Asia. In addition to his corporate responsibilities, Raghu has been mentoring emerging companies through the Stanford Seed program..
Raghu's LinkedIn

Key Takeaways

Business Model Aspects: Four key elements to any business model:
- Operational Excellence
- Product/Service Innovation
- Customer Intimacy
- Value Chain Coordination

He used the Mumbai Dabbawalas as an example of effective implementation.

GE's Strategic Success: GE's growth is attributed to its strategic business model choices, including collaborations with outsourcing firms like Genpact, Wipro, TCS, and Infosys, leading to revenue growth of 20-50%.

Market Entry Strategy: Emphasized the importance of having in-country capabilities when entering new markets. Suggested starting with a customer for Proof of Concept validation and providing product guarantees to mitigate perceived risks.

Role of Services: For product companies, services are crucial for creating predictable cash flows. He cited Apple’s 17.5% profit margin from services as a notable example.

Solution Approach: Advised against jumping to solutions, noting that perfect solutions do not exist.

Global Expansion Considerations: Encouraged founders to think strategically about global expansion from the outset, focusing on optimization, resource allocation, and informed decision-making.