By Nayeem Raja, 1827820, LOS-2

1. What opportunities and hurdles were faced by Flutura when entering the analytics market
and how did early pivoting help them become successful in the market?

2. What were the key differentiators of Flutura that helped them stand out in the marketplace?

3. What are the current challenges faced by Flutura and what should be their short-term and
long-term strategy to overcome those to move to the next level of value chain?

1. Opportunities: Flutura decided to follow blue ocean strategy. There were already large
number of customer data analytics available in the market but, for machine data analytics
there were very few players. They further narrowed down to specialize in oil and gas industry
and also power generation, distribution and transmission industry. They followed non-linear
model to generate revenue.

Challenges: They had little knowledge on oil and gas industry and when they wanted to pitch
into them, they were not comfortable of the idea of analytics and that to working with an
Indian start-up. Flutura faced challenges in gaining trust of the global organizations as it was
considered to be an India based start-up that was yet to establish a global footprint. The key
challenge for Flutura was to determine how Cerebra could provide an end-to-end platform
that was capable of leveraging the signals from machines to predict potential failures, enable
preventive maintenance, and also help in coordinating the whole service and spares
management. But the challenge for the industry was that nobody would trust the report to
take any managerial decision because the deep learning modules of those products were not
able to explain the reason behind the prediction of failure.

2. Flutura was very focused on one particular domain. Also, Flutura leveraged machine
generated data and signals to create non-linear revenue model in the energy and the
engineering sectors. These were their key differentiators.

3. The current challenge faced was weather to diversify or to remain specialize in oil and gas
sector. There were also questions on Industrial IoT data security which led to reluctance
towards cross border transactions and prolonged and delayed sales cycles. How they could
position Flutura as a global organization and win the trust of large enterprises was a
challenge.
Their short term strategy should be to remain focused and as they grow, they will find
enough potential in energy or engineering sector to diversify. They can also explore
opportunities for expansion geographically like venturing in Japan. Another long term
strategy could be shifting from technology based expansion to domain specific expansion.
They can also venture into areas of instrumentation and sensors. The data generated can be
merged with existing data analytics capabilities. Other areas include mining, sensor analytics.
They can move from just analytics provider to end-to-end IoT service provider. They can also
partner with OEMs for Data Exchange As a Service provider. A solution enabling the data
exchange between different OEMs can prove to be a successful subscription based revenue
model. Lastly, they can automate the procurement processes of oil and gas companies,
sending out signals to OEMs when a machine is about to fail or need to be repaired.