MCI

MCI Product Business Case

Template

Sept 2011
Confidential

This document contains information confidential and proprietary to MCI. No part

of it may be used, circulated, quoted or reproduced with out MCI’s consent.
Product Roadmap Process

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Reference Process: Product roadmap

Document Information

PREPARED BY NAME DIVISION / DEPARTMENT DATE

Revision History

REV # AMENDMENTS DATE

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Product Roadmap Process

Contents
1. EXECUTIVE SUMMARY .......................................................................... 4
2. OVERVIEW OF Product/Service .............................................................. 5
2.1 Product/Service Objectives................................................................ 5
2.2 Reasons for Proposing the Product/Service ...................................... 5
2.3 Expected Outputs .............................................................................. 5
2.4 Performance Measurement ............................................................... 5
2.5 Conclusion ......................................................................................... 5
3. Industry analysis ....................................................................................... 6
3.1 Industry overview ............................................................................... 6
3.2 Position in industry ............................................................................ 6
4. NEEDS ANALYSIS ................................................................................... 7
4.1 Overview............................................................................................ 7
4.2 Market Analysis ................................................................................. 7
4.3 Situation Analysis .............................................................................. 7
4.4 Competitor Analysis ........................................................................... 7
4.5 Output Analysis ................................................................................. 7
4.6 Conclusion ......................................................................................... 8
5. Market strategy ......................................................................................... 9
5.1 Product / Service ............................................................................... 9
5.2 Pricing................................................................................................ 9
5.3 Promotion .......................................................................................... 9
5.4 Place.................................................................................................. 9
6. Financials................................................................................................ 11
7. Resource requirements .......................................................................... 13
8. RISK ASSESSMENT (include corruption assessment) .......................... 14

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1. EXECUTIVE SUMMARY

In this section, provide a concise overview of what you are proposing and why it should be
supported. This should address the following:

Background

 how did this proposal came about?

 what options did you consider?
 why was this option chosen?

Outline of recommendations

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2. OVERVIEW OF Product/Service
2.1 Product/Service Objectives

List in dot point format the specific objectives of this product

2.2 Reasons for Proposing the Product/Service

What are reasons for developing the Business Case at this particular time? Provide a
brief explanation as to why the product/service has been identified as a priority.

2.3 Expected Outputs

What are the tangible outcomes that will be produced by this product?

2.4 Performance Measurement

How will the performance of the product be measured? What will need to happen for
the product to be successful?

2.5 Conclusion

State the conclusions you have drawn from the above analysis

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3. Industry analysis
[General guidance]

There are two elements to consider in preparing this section: an overview of the industry and
a summary of your business' position within the industry. It helps to footnote major
observations and sources of information for the data provided where appropriate, to show
the reliability of the information.

3.1 Industry overview

[General guidance]

You need to understand the industry development. Points to cover the industry include size,
competitive landscape, the entry barriers, the customers needs, the profit margin, the
national, economic and technological trend affecting it, any special regulation relating to it,
and its long-term outlook, etc.

<Leverage the PEST report>

3.2 Position in industry

[General guidance]

Whilst the previous section covers the industry as a whole, this section refers more
particularly to your own business. The mostly adopted way of presenting the company’s
position within the industry is by means of an analysis of the company’s strengths and
weaknesses, as well as the opportunities and threats in the external environment.

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4. NEEDS ANALYSIS
The aim of a Needs Analysis is to identify whether there is demand for the outputs of the
product/service in a specific market or community. It aims to establish whether people want,
and therefore will pay, for the good or service. The Needs Analysis may include an
evaluation of the market for a service or customer needs. The aim of the analysis is to prove
that there is demand for the product/service you are proposing to deliver. This will help to
reduce the possibility of a failure of the product/service launch, or the proposed
product/service not producing the results anticipated, leading to a loss on investment and
possible damage to the reputation. Below is an example of the types of issues you should
address in undertaking an analysis of a market for the sale of products or services. Delete
any categories you do not think are relevant.

4.1 Overview

Provide a clear overview of the method you have used to analyse the need for the
product and the conclusions you have drawn that are supported by your analysis.

4.2 Market Analysis

This section should address the following:

 Is there a market for the proposed product/ Is there demand for the particular type of
products or services we are proposing to provide?
 Will participation in this market contribute to a strengthening of MCI’s reputation?
Does it align with how MCI wants to be seen within its industry?

4.3 Situation Analysis

This section should address the following:

 What is the size of the market (volume and $)?

 What is the state of the market (slowing down, growing, increase competition)?
 What is the structure of the market?
 Who is buying (geographic, demographic, psychographic profiles)?

4.4 Competitor Analysis

This section should address the following:

 Are there any competitors?

 What is their size, goal, market share, product quality and other characteristics
needed to understand their intentions and behaviour?
 How does your product compare with competitor products?

4.5 Output Analysis

This section should address the following:

 You should be able to say whether the market in general is attractive and why
 If so, what segments you might target and how your product could be positioned
 You should have a solid understanding of where your product fits into the competitive
landscape in the short term

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4.6 Conclusion

Explain the conclusions you have drawn from the analysis.

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5. Market strategy
[General guidance]

This section is crucial. It gives a good indication of the whole business’ chance to
succeed. It refers to your adoption of various means or ways that make your
offerings known to your targeted customers and arouse their interest to purchase
your products / services. You can start formulating by using 4P’s approach, i.e.,
product / service, pricing, promotion and place.

5.1 Product / Service

[General guidance]

How do your products / services meet your customers’ specific needs? You can
focus on the uniqueness of your product / service and how customers benefit from
using your product / service.

This gives a description of your products / services and your reasons that they can
fulfill the needs in the market. Are they innovative? Do your existing products /
services have new features that make them more attractive to users? Do you invent
a new application of the products? Or can you charge the existing products at a
much lower price because you have a way to lower your own cost? These are the
cutting edges of your products /services that are appealing to investors. The
statement that you make should refer to the findings and conclusion you presented
in previous section.

5.2 Pricing

[General guidance]

What pricing model is used? Is the price that you charge along with the market? Or
are they value-for-money? Or are they charged at a premium that creates a social
status that customers enjoy? The price you charge has to be competitive but still
allows you to make a reasonable profit.

5.3 Promotion

[General guidance]

This section describes how you are going to deliver your Unique Selling Proposition
to your prospective customers. Which medium is the most effective way in reaching
your target market? How much do you plan to spend on advertising?

5.4 Place

[General guidance]

This refers to the distribution channel, physical or visual, to make your product /
service easily accessible by your targeted customers. You can also consider the

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costs associated with the distribution channel, whether the distribution method
affects production timeframe or delivery, etc.

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6. Financials

[General guidance]

In this section, you need to demonstrate whether your business is financially viable. Basically,
you should prepare five-year projections. You can also include key financial ratios and key
performance indicators such as NOV, ROI, Profit margin, revenue and subscribers growth etc
to help readers to have a better understanding of your financial and operational performance.
A realistic sales forecast forms the basis for all your other figures. For every forecast, list all
your key assumptions, etc.

Using chart in this section will make it easier for reader to read the figures and for you to
present.

Financial forecast

Month Month Month Month Month TOTAL

1 2 3 4 …
Cost & benefit analysis
Revenue
Revenue from new subs
Revenue from existing
subs
Revenue from increase
usage
Revenue source XXX
Total Revenue

OPEX
Variable cost of providing
services
Cannibalization costs
Marketing / Advertising
costs
Discount
Opex item X
Total OPEX

Operating Income

Capital Expenditure (CAPEX)

Cost of developing the
services
CAPEX item X
Total CAPEX

Financial analysis
WACC (%)
NPV ($)
ROI (%)

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7. Resource requirements

You should address the following aspects:

 What amount of investment is required - specify both $ and in kind and over what
period?
 Where is the funding coming from? And under what terms and conditions?
 What are the projected income and expenditures? And capital expenditure?
 Identify all major assumptions. Detail accounting policy eg revenue recognition.
 What financial benefits are expected eg dividends, fee distribution to third parties?

Budget

Consult with the Division of Financial Services in preparing an accurate budget for the
proposal. The budget should include all identifiable costs to the MCI,

Staffing Requirements and Costs

 Have staffing requirements and roles been clearly defined?

 What skills/qualifications are required to successfully undertake the activity?

Operational support

 What supports are needed from other departments?

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8. RISK ASSESSMENT (include corruption assessment)

A Risk Register must be completed and maintained for all new activities in accordance with
the Risk Management Guidelines produced by the Office of Planning and Audit. If the
activity involves third party course delivery, then use the Risk Register Template for Third
Part Course Delivery.

The aim of the section is to address the following aspects:

 What are the risks (including corruption or probity risks)?

 Can we manage them?
 Do the potential opportunities outweigh the potential risks?
 Are the risks insurable?
 Does everyone accept the risks?

Conclusions

Identify if the proposal is high, medium or low risk and the relevant management
strategies to deal with any risks.

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