Sunday, November 11, 2012

CUUSOO’s Founder on Product Development and Tapping Public Opinion

kohei_nishiyama

Building products based on user feedback — Thanks to the internet and social media, this concept of product development is no longer new. However, its execution can be far more difficult than imagined. Cuusoo.com (Cuusoo is a Japanese word that translates as ‘imaginary’ or ‘wish’) was launched in 1997. Essentially, it is a platform that collects product ideas directly from users, based on what kinds of goods they would like to see produced.

The company currently manages two platforms, Cuusoo MUJI and Lego Cuusoo. There are about 340,000 active users and 90 percent of Lego Cuusoo users come from overseas. To find out more exactly what these platforms do, we chatted with the founder of Cuusoo, now the chairman of Elephant Design Inc., Kohei Nishiyama.

Kohei talks about being active in seeking out developers and often meeting up with talented people surrounding startups. As he looks back on the time when he launched Cuusoo, he spoke about how startups should be launched:

Don’t start something just because you think there is a market. When you’re building a product for the first time, you yourself need to be the biggest customer and fan. It is too difficult to build something based on what other people say. So a shortcut to build a successful product is to make something you would use, to make something you want. It’s okay to get users’ opinions and then afterwards structure your service around that. It’s risky to make things while listening to people’s opinions during your launch. I think you should startup with the idea that you are your own customer without listening to others during this time.

Cuusoo, Lego Cuusoo, and Cuusoo Muji

cuusoo-image1

There are about 340,000 active users of Lego Cuusoo and Cuusoo Muji. The concept of Cuusoo.com is to make a product that people actually want. Cuusoo.com has a long list of people’s wishes that have been accumulated over the past 15 years. Kohei would pick up interesting ideas with huge demand from the list and create the actual product with help from smaller companies with technology. An example of such a product is the Window Radiator developed by Morinaga. The product stops cold air coming in from windows, and it also increases heating efficiency resulting in less condensation on glass windows. The product is made of elastic in order to adjust to all sizes of windows.

Other popular products include a “smart wallet” (a wallet that never gets bulky) and office footwear that looks like dress shoes from the front but are actually comfortable sandals. All of these products were commercialized based on the opinions of users.

Cuusoo Muji is an online community that lets users submit ideas for products they want the retailer Muji to make. Currently, there is a project aimed at making life easier for the world’s left-handed people, which is a good example of what the crowdsourced ideas come up with. The biggest hit product of all is a sofa made of beads released by Muji back in 2002 (see below).


Lego Cuusoo is jointly managed by Lego and Cuusoo.com. Only six percent of the users are Japanese, and 94 percent from overseas, with Americans accounting for 46 percent.

Lego fans make their ideal Lego creations and submit them to Lego Cuusoo. If an idea gathers over 10,000 supporters, the project is passed on to Lego staff and the project then heads toward production. Candidates for commercialization appear at a pace of about one per week. If all problems such as rights issues are properly addressed, the product is released in about four months. The creative team at Lego can only come up with a certain amount of ideas, so the Lego Cuusoo platform allows Lego to create more products by feeding on the ideas of true fans.

lego-cuusoo

3 important points in getting user feedback

With social media such as Twitter and Facebook, it is now a lot easier to gather feedback, opinions, and crowdsourced ideas from target users. There are ever more examples of startups and companies involving users at the very first stages of the introduction of a new service. At Cuusoo, they refer to the motive behind purchases for the things people decide to buy as “intent.” Through the gathering of these various scattered intents, as well as the process of using them in the commercialization of their products, they came across an important point: Be a user yourself but know when to take a step back.

As said before, Kohei has said that the most important user for starting up in-house manufacturing or a service is you yourself.

When trying to find the timing for starting up a service, listening to the opinions of your users will lead to instability or a lack of focus. What is important is to understand to what extent you should stand at the vanguard. Entrepreneurs must understand that being a user of their own platform means that you will start viewing your service from a skewed perspective and lose objectivity. Kohei explains:

In the 10 years since our platform was started, I had decided not to be involved in Cuusoo in a public space. When starting up a business, having a company president with passion is a good thing, but if this trend continues as the business grows, it leads to a company that only makes things the president wants. When you’re a startup, it can’t be helped as you don’t have any users, but as a company gets larger, they then start to ignore the opinions of their users. Understanding this timing is extremely important.

Involve users and innovators

In a 1997 interview with BusinessWeek, the late Steve Jobs left us with these words: “A lot of times, people don’t know what they want until you show it to them.” Is it true that people – especially consumers – don’t really know what they want? Kohei adds:

There are users who know what they want and make it themselves. Among users, there are those who have dissatisfaction with the status quo and ideas for improving things. I think it is a good idea to engage those users and innovators when in the process of developing new products. He is establishing a business that relates to those ideas. The question is how do you find and then involve those people?

The problem is after he’s solved the problem. After that, is it right or wrong to make him powerful and leave him in higher position? Because if you do, the company will become an engine that creates anything he says. You find a lead user with the ability to properly and appropriately fix the problem and dissatisfaction, and give him or her authorization. The timing is essential.

cuusoo-bin

Don’t listen to just the words of users. Words and photos should always be paired up when getting user feedback. Kohei says that many Japanese products are built on wrong assumptions and misread data. It’s too risky to listen to just the words of users. Whether they are tweets or posts on Facebook, they are only what you hear. They are just words – so it doesn’t matter how much of them you collect, it doesn’t really mean anything.

Users lie. They are not deliberate lies, but there is always exaggeration. What’s important is not the user’s feedbacks but the usage of products. How is it being used? Always ask, what do they mean? In order to confirm the lying problem, we take photos. Words and photos should always be used together to clarify where the needs are. There is a big chance of failure if you only listen to the words of users.

And, since it’s possible for the context to change, I don’t recommend getting opinions from a variety of places like Twitter, Facebook and other communities. It’s important to look with your eyes at how and where users are using something. If you can’t do that then pictures will certainly suffice. You should also be careful about carrying out a set number of surveys by hand. Kohei tells us:

For starters, if your friends do it then they might be doing it out of some sort of obligation to you. And the people who take the surveys are quite different than the people who make decisions. If I need ten answers by tomorrow then I’ll ask my friends and I get that 80 percent of them are satisfied and make my decision based off that. It could be that people who have never used it wrote down comments. That’s why relying on just your ears is risky and not something I recommend.

Co-existing with crowdfunding platforms

What’s the difference between crowdfunding sites like KickStarter and Campfire and Cuusoo? After all, they’re all sites where businesses can fundraise from supporters in order to turn things that users want into a reality. Kohei has of course thought this through:

We are rivals and I definitely think that we should learn from them. If I were to draw a line, crowdfunding is where funds are put in to start up a business, whereas we work as an advanced booking platform. The concept itself is different but both collect money and make bookings based off promises to make a trial product, then later contract with a manufacturer to keep it going, which I think is a good way you can tie things together.

Among Cuusoo.com users, there are people who use both systems; they collect reservations on the platform and collect funds through crowdfunding. They earn money by selling on Etsy the things they mass-produced by hand and use Cuusoo to collect reservations in order to produce them. They use KickStarter for fundraising in order to make that trial product. Users can’t help, but to use social platforms and use them only as a module.

Social media plays an essential role as well. Lego Minecraft is a good example of this.
Minecraft is an online game about placing blocks to build anything you can imagine, and some of the themes were produced as a Lego version – thanks to Twitter. It’s an example of friends who play games online collecting 10,000 people and commercializing them. And since they wanted everyone to vote, they collected votes through tweets. The main reason they had such a big success in commercializing their product was not simply from Cuusoo but by using it together with other social media.

Going global

cuusoo-lego-2

The present goal of Cuusoo in its fifteenth year is to be a success overseas. Kohei says there are big differences in organization and functionality because the targets domestically and abroad are different. He omits many features in his overseas editions and he doesn’t even use 1/20th of the technologies he has.

For example, the function that describes what is wanted in a text is called “Everybody’s Voice.” Even though the main Cuusoo site doesn’t only use this, it equally starts from the main Cuusoo site and voices. In contrast, most overseas Lego Cuusoo users are dropping this function entirely. In the end, do the people who make it themselves not want it? Following the figures collected from a suggested survey. The Japanese version was overkill in some respects, so it is being cut back when offered to overseas markets. Some ideas are coming to light in reverse by cutting back.

It is unprecedented to see successful Japanese social services in the international market – except Japanese games. What we are aiming for is that type of social service. As of June 2012, half of the users who are using the Cuusoo are foreign. 90 percent of the users of Lego Cuusoo are overseas. Even so, I want to make the service even more popular overseas. For example, we are thinking of making the API public and making it easier to connect to a service like KickStarter.


This article is a translation from a Japanese language article that appeared on startup-dating.com on August 28.

The post CUUSOO’s Founder on Product Development and Tapping Public Opinion appeared first on Tech in Asia.



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Korea’s Playnery Nabs $3.7 Million in Funding, Aims to Make Social Gaming 3D

Korean game development studio Playnery has been growing quickly since it opened in October of last year. Already partnered up with Zynga to distribute its forthcoming first title Mother of Myth, now Playnery has secured $3.7 million in funding, led by Japan’s Softbank Ventures. Qualcomm and Stonebridge Capital also put some money into the round.

Playnery specializes, notes TheNextWeb, in 3D RPG gaming, whilst also making the titles social and playable in any recent web browser. The startup uses its own, self-developed 3D gaming engine. In this way, it’s pushing forward the current social gaming model of simplistic action that began with things like Farmville. The investment arm of Japanese telco Softbank is clearly impressed with this new vision for social and mobile gaming; SoftBank Ventures’ Seo Il-shik said today:

In the future we predict that the social and mobile market will break off from the casual gaming seen up until now, and achieve rapid growth with the diversification of genres such as MORPG, MMORPG, and FPS. When various user groups form and the market grows rapidly, we expect that Playnery will become a successful game developer through high quality games and global partnerships.

It’s not Softbank Ventures’ first foray into social gaming in the region, as it has also backed South Korea’s SundayToz, makers of the hit game Anipang.

Playnery’s first game, Mother of Myth, is due to launch next year, and is aiming for a global rollout in 12 languages, and will be playable on Zynga’s (NASDAQ:ZNGA) gaming platform, on Facebook (NASDAQ:FB), and as iOS and Android apps. Until then, there’s this interesting demo video of how the game will play:

(Video link for mobile readers)

[Source: TheNextWeb]

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Clubd mobile app enables business to thank loyal/regular visitors with custom offers

Like online businesses, offline businesses too struggle with footfall vs. conversion ratio and the freshly launched Clubd mobile app is a great attempt to solve this problem for offline businesses.

clubd hopes to solve the loyalty program in a language that both business’ and consumers understand and appreciate – i.e.”discounts“. Not the ones given by group buying sites that have faced critique of placing a merchant’s brand image at risk, but discounts that are earned by the customer, through regular visits and displayed loyalty.

The way Clubd works is very simple – merchants need to register with Clubd and they get a merchant kit (posters/QR code/tent-cards etc) to have consumers start using the ‘Clubd’ membership. For a consumer, it’s very simple – they just need to download the app (supports iPhone and Android currently) and use the app to scan the QR code (inbuilt).

The more the customer visits the merchant, the higher the discount. So you can start at 10% and move up to 15% after you have visited the business 3 times. Move up to 20% if you visit another 6 times etc.

clubd has signed up 100 merchants (in Bangalore) on the platform and as far as value proposition is concerned, the company wants to focus on customer retention (and not acquisition).

clubd comes from Revu, which earlier tried solving the same problems using checkins/point system, and is now building a 360 degree view to the problem statement.

Essentially, clubd is attempting to solve a two-sided problem statement – i.e. 1). consumers need to use the app or businesses to use clubd services and 2) lot many businesses need to use the app to stay on consumer’s smartphone. What’s great is that the company is seeding merchants and isn’t following a spray-and-pray model, which some of the earlier players indulged in.

Do give clubd a spin and share your experience.

Also see: DelightCircle : A smart app that will save money for shoppers



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Indonesian travel search site Traveloka gets funded by East Ventures; served 400k flight searches

traveloka east venturesIndonesian travel search engine Traveloka announced today that it has received an investment from East Ventures, an early stage VC firm based in Singapore and Indonesia. Terms of the deal were not disclosed.

The site helps users discover and compare flight deals after they key in details for departure, destination, and travel dates. The site has gotten off to an encouraging start since launching a month ago. So far, it has served over 400,000 flight searches for users from over 200 countries.

“Indonesian travelers are price-sensitive when it comes to their transportation budget and our service is uniquely suited to serve this market.”, said Ferry Unardi, co-founder of Traveloka.com.

The startup was founded in mid 2012 by a group of Indonesian engineers with work experience in Silicon Valley technology companies.

On a side note, Traveloka has released an infographic about the Indonesian aviation industry:

 traveloka indonesia aviation

The post Indonesian travel search site Traveloka gets funded by East Ventures; served 400k flight searches appeared first on SGE.


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Cloud based RankWatch promises to give websites most accurate ranking & analysis

Slipping in rankings  and traffic loss have always been on list of prime concerns for any Internet based business or webmasters. And with changing dynamics of Google algorithm and new SEO techniques getting introduced every other day, it becomes more important for online businesses, SEO firms and webmasters to keep a hawk’s eye on their rankings.

While desktop based softwares like Rank Tracker, SEO Moz and Authority labs have to be run manually every time to check rankings with major limitation of not being able to access the software or the data on multiple computers simultaneously, RankWatch, a Gurgaon based cloud centric  rank-tracking and website analysis software firm enables SEO companies and webmasters to generates unlimited logins for its clients to see rankings of their website only. With RankWatch one can track rankings for a few or millions of keyword without using any proxies, which was until now impossible to do as Google blocks multiple queries from single IP address.

Unlike other SEO tools like SEOMoz and Authoritylabs which usually takes 24-48 hours to show ranking, RankWatch’s  rank checking process starts in seconds to get instant results when SEO firm or webmasters add a new client.

How does RakWatch have an edge over other SEO tools?

- All desktop based softwares use localized IP for rank tracking which is not the most accurate way of tracking rankings, for instance – tracking rankings for a UK or US client with Indian IP is highly not reliable and is the most common cause of rank variations. However with RankWatch, one doesn’t need to worry about this as its algorithm will choose only UK IPs for UK based Search Engines and US IPs for US based Search Engines making it seemingly accurate.

- Google Local Rank Tracking: With RankWatch one can monitor their Google Maps rankings as well. This is something that none of other tools provide you.

- 100% White Label Interface & Reporting for Agencies: With RankWatch White Label Interface users don’t need worry about Reporting any more.One can have the complete RankWatch Interface live on his/her own domain in less than 5 min with no coding requirement at all

- Automated Alerts: Users can set their own custom alerts to notify themselves automatically through email.

- Don’t want to track rankings for Yahoo & Bing? No problem with RankWatch one can add single or multiple search engines of their choice.

How does it work?

The back-end of RankWatch consist of an algorithm which provides webmasters, SEO firms or website owners the most accurate results because its algorithm selects the nearest Ip depending upon location of your selected earch engine. For example, if some one is tracking Google.co.in then RankWatch chooses Indian IPs, Similarly for Google.co.uk it uses UK IPs.

Speaking about future plans, Sahil Kakkar, Founder & CEO RankWatch said “We are testing a feature in beta which will suggest methods to improve ranking and help webmasters to make their sites Google proof”. At present RankWatch has 24 Paid Clients which includes clients tracking keyword between 500 to 25000 Keywords as well and around 750+ registered members.

On pricing front, RankWatch has 5 plans ranging from $ 10 per month for startups with login for local rank tracking (up to 50 keywords) and automated email support to $ 299 for large enterprise (for more on pricing click here). Currently, RankWatch is a team of 5 people and had raised seed investment of Rs75 Lakhs from friends and family and it is not looking to raise funds from external sources.



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East Ventures funds Indonesian travel startup by ex-Silicon Valley engineer

Indonesia-based airline deals search engine Traveloka.com has just announced an investment by East Ventures. Traveloka helps travelers discover the best flight deals, pretty much like what Hipmunk does. According to the company, the service has served over 400,000 flight searches from users in more than 200 different cities since its launch a month ago, in...

The post East Ventures funds Indonesian travel startup by ex-Silicon Valley engineer appeared first on e27.


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East Ventures funds Indonesian travel startup by ex-Silicon Valley engineer

Indonesia-based airline deals search engine Traveloka.com has just announced an investment by East Ventures. Traveloka helps travelers discover the best flight deals, pretty much like what Hipmunk does. According to the company, the service has served over 400,000 flight searches from users in more than 200 different cities since its launch a month ago, in...

The post East Ventures funds Indonesian travel startup by ex-Silicon Valley engineer appeared first on e27.


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Traveloka gets funding from East Ventures, hopes to improve airline travel through deals discovery

Indonesia-based airline deals search engine Traveloka.com has just announced an investment by East Ventures. Traveloka helps travelers discover the best flight deals, pretty much like what Hipmunk does. According to the company, the service has served over 400,000 flight searches from users in more than 200 different cities since its launch a month ago, in...

The post Traveloka gets funding from East Ventures, hopes to improve airline travel through deals discovery appeared first on e27.


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Traveloka gets funding from East Ventures, hopes to improve airline travel through deals discovery

Indonesia-based airline deals search engine Traveloka.com has just announced an investment by East Ventures. Traveloka helps travelers discover the best flight deals, pretty much like what Hipmunk does. According to the company, the service has served over 400,000 flight searches from users in more than 200 different cities since its launch a month ago, in...

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Indonesian Flight Search Engine Traveloka Receives Funding from East Ventures

It seems that 2012 is definitely the year for startups venturing into the Indonesian travel industry. Today, the Indonesian flight search engine Traveloka.com, which was just launched to the public last month, has announced that it has received seed funding from East Ventures [1]. The investment amount hasn’t been disclosed.

Traveloka helps people look for the cheapest available flights online. Ferry Unardi, the co-founder of Traveloka, says:

Indonesian travelers are price-sensitive when it comes to their transportation budget and our service is uniquely suited to serve this market.

Interestingly, the people behind Traveloka are Indonesian engineers who are returnees to the country having worked in Silicon Valley before. They are Ferry Unardi, Derianto Kusuma, and Albert Zhang. Both Ferry and Derianto worked for Microsoft in the past, while Albert was recently at cloud CRM company NetSuite.

Impressively Traveloka (which is still in beta) has served over 400,000 flight searches to users located in more than 200 different cities. The site currently supports results from 12 airlines, on mostly domestic routes. The current website seems to focus on budget travelers as it doesn’t offer premium flight search categories such as business class.

Traveloka has a clean and simple website interface, and it can round up the cheapest flights available from different airlines. Users then can choose to book the tickets either directly from the airlines’ official websites or from Traveloka’s partners, Tiket and Tiket2.com. Buying directly from the official airline website is the cheaper option compared to its affiliates, Ferry explains:

We believe in diversity of prices and services for our users. For example, airlines direct might have the cheapest price, but Tiket.com and Tiket2.com are already better in terms of experience.

Ferry said that the startup will still continue to focus on flights because of the immense opportunity in that sector. He said that users can expect to see more partners and better integration with them, such as by creating a better flight search and purchase experience.

Traveloka has become one of the many startups that is betting its money on the Indonesian travel industry this year. We’ve previously seen other startups making their marks there too, such as Gonla, Flamingo, and search comparison site Telunjuk.

Congratulations on the investment, Traveloka!


  1. East Ventures is also an investor in Tech in Asia. Read our ethics page for more information.  ↩

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Dive Deep into India’s Mobile App Development

Shubha Pai drives app-developer acquisition strategy at InMobi. She has over nine years experience across IT and mobile in revenue management, market intelligence, change management, and marketing.

india-mobile-phones

I’ve often wondered how mobile app developers in emerging markets like India are different from their peers in established markets like the US and Europe. In a diverse country with a population of more than a billion, a scorching pace of telecom growth and a young bright demographic, what do Indian app developers aim to achieve? Does the motivation to build something that gets users hooked, solves problems, creates a business that makes money (hopefully tons of it!) change as we transcend geographies?


Smartphones – A truly global phenomenon


Markets like the US and Europe have lead the pack when it comes to mobile app development. And it’s no surprise they should have – these regions are the biggest smartphone markets today. Globally, the one billion smartphone mark has been breached in Q3 of this year with a majority of the consumers being from these geographies. While it took nearly 15 years to reach the first billion, it is estimated that the next billion-milestone will be crossed by 2015. It is fair to conclude that economically growing countries like India would play a big part in reaching this milestone.

No wonder so many talented, passionate developers in India have jumped on the mobile app bandwagon.


Mobile apps from India – Coming of age


So what is common to apps like Parking Frenzy, World Newspapers, and Iris? Other than the fact that they are all mobile apps and all very popular on a global scale – they have been created by Indian app developers. That these apps originating from India have captured the global fancy is no surprise given that universal appeal has been engineered into them.

For instance, Parking Frenzy, engages users through features like realistic driving physics, car damage modeling, and 16 levels of parking action.

World Newspapers gives users easy access to thousands of newspapers in over 100 countries. An app that has enjoyed the number one spot within the News category, it’s still within the top 30 News apps on Google Play. With multiple apps spanning games and education, accounting for millions of downloads, developer Abhishek Kumar has become a busy man!

And then there’s Iris, an Android app by Dexetra. It can talk to users on a variety of topics including simple conversations, help them search for local points-of-interest (POIs) such as the nearest restaurants or ATMs, and is capable of voice actions like tweeting, calling, texting, contact lookup, and internet search. It was inspired by Siri, and its name is in fact Siri spelt backwards! It has more than 5 million downloads, 2 million of which came within two months of launch.


Hackathons, being passionate, and giving back


If you take a closer look at the these apps and app developers, you will realize that they are similar and yet they differ. They are similar in that they have all enjoyed global success. For instance, Parking Frenzy, after tasting success on Android, went on to be ranked number one on US iTunes store under the Top Free Games and Top Overall apps categories. World Newspapers has a loyal user-base ranging from Southeast Asia to Europe. Iris has over 50 percent of its users in the US.

The differences lie in the journey these apps took, how they came to be, and what their creators are planning on doing next.

Games2Win (the development studio behind Parking Frenzy) CEO Alok Kejriwal is a serial entrepreneur who has previously created a few companies, including one that Softbank bought a stake in. Games2Win, a top-tier VC backed firm was named one of the top 20 online gaming businesses in the world according to a research by comScore. A deep desire to create something from nothing and the thrill of making it big continue to motivate him to make world-class apps. Not one to rest on his laurels, he has indicated he will create a fund for startups. If you see what he’s written about the lessons learnt from his fantastic ride, you’ll realize he’s already donning a new hat – that of a mentor.

In Abhishek Kumar’s case, success came rather unintentionally. When he started out, it was just a hobby. A man with modest beginnings, Abhishek dreamed of studying abroad. He did odd jobs at retail outlets to fund this dream. He started dabbling with Android apps while still in college and what started as a hobby soon became a serious business.

With over 7 million downloads across all his apps, Abhishek is one of the most respected and sought after developers in the indie community. He has turned down several lucrative offers from tech giants, choosing instead to focus on creating his own apps.

With the fortune of the ad dollars that his apps generate daily, Abhishek not only plays hard but also uses it to transform the lives of many back in his home-state, Bihar. One of the missions that he has set for himself is to help educate the poorest of the poor. Abhishek and his father have transformed a couple of shanties into permanent structures, which provide free education for underprivileged children. Maybe the next set of tech entrepreneurs will come out of that facility!

Abhishek also gives back a lot to the developer community, constantly building tools and software, which can be used by other developers for free. He is currently working on an app discovery and cross promotion tool called Adcenix

In contrast, Iris was born out of a 48-hour hackathon. There was a strong “we can do it” spirit that spurred the young developers on. Of the team of six co-founders, four happened to be college classmates and a couple of others met Narayan Babu (the CEO of Dexetra) at their place of work.

While Iris is an app that answers questions about the world, their next ambitious creation, Friday answers questions about the user herself. It works like a personal assistant keeping track of the user’s activities on the device and saving data to the cloud.


Conclusion


Different beginnings, different reasons, different app-types, and maybe even different end-goals — differences seem to characterize these app developers. However, the passion to build something that gets users hooked, the quest to solve problems and create a successful business seems to be a common theme. These app developers might very well be at the forefront of a wave of world-class apps to come out of India.

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