Precise Software Solutions

New Offering Realization Challenges

Case Analysis


Course : B2B Marketing
Professor : Joffi Thomas

Submitted By:
EPGP-05- 135 : Nitin Khurana
EPGP-05- 121 : Jaspreet Singh
EPGP-05- 095 : Ashish Vaishnava
EPGP-05- 167 : Aditya Krishan
Case Facts Precise Software Solutions
Shimon Alan CEO & President ; Case Date: 22 July, 1999
Develops Performance Management & Availability (PMA) Software for Database , Web and
Application
Serves firms with complex network of hardware and software components.
Relatively less competitors in Product Segment
Perceived as leading product in its segment targeting both Efficiency & Effectiveness of
Database, followed by BMC and Quest.
Existing Sales Process: 1.) Direct Sales 2.) VAR Partner 3.) System Integrators
Sitting on Operating Losses for last 4 straight financial years, due to high Marketing expenses
However the top line sales revenue figures have been showing impressive growth - Year on
year.
Company has been working on a new Product offering INSIGHT which will provide the
PMA functionality across all IT tiers: Web, Application, Database and Storage


Alan finds an unrecognized opportunity of End to End PMA tool from a Market
Research survey. There was no competition for any such product in the market.

Alan is in hurry to execute an advanced product insight to make precise software a
100 million dollar company

WHAT ARE THE DECISION ISSUES THEN ??

Key Decision Issues in New
Offering Realization
What?
What the
Product should
have monitor,
detect,
improve?
Whether to go
with Alpha /
Beta?
Half-baked may
lead to
When?
When to launch
it Open World
2000 or not?
Wait till the next
year Open World
or launch before
that?
How?
How to sell
existing sales
force or new?
How much to
Price it?
How much
authority to reps
in price?
High Growth Market: Expected to double in 2003
Products are differentiated in two ways:
- in terms of the underlying resources and platforms with which they were
associated
- in terms of functionality they offered. 4 groups:
monitoring
detection
improvement
analysis
Identified Target Segments:
Data Intensive Enterprises
Online Retailers
Three main competitors: Oracle, BMC, Quest
Sales channels: direct sales + indirect sales (value-added resellers, system
integrators, original equipment manufacturer agreements)
Pricing structure: one-time license fee + Recurring revenue from annual
maintenance and service contracts & additional revenues from product upgrades
Market Analysis
Recommendations

Target Alpha Version with Monitor & Detect within 3 months of Oracle Open-wide
Forum 2000.
Display Proof Of Concept in Oracle Open wide 2000
Go for a First Office Application in a Collaborative partnership ORACLE, as being
one of the relied customer (MOU Signed)
Form a team of Senior Confidante Members of existing Sales-force/Account
Management Team for this Product Selling.
To complement Account Managers, form a Technical Sales team, preferably from
the R&D Division, who could frontend with the Account managers, to get into the
deeper technical aspects of the product, for explaining the Technical Benefits, one
of the important cues in Sale Process.
Hire New Product Development Resources to fasten the pace of development
ANALYZE and IMPROVE should be targeted as an Advancement for the future
Releases and should displayed in Oracle Event 2001
High Pricing ROI shall be the extension of the table in Exhibit 4, including the
benefits from improved overall response time Web and Application improvement.



THANK YOU!!