Transcript Document

BUSA580
Kenneth Johnson, Dmitry Makhotko,
Frances Skeete, Cathie Gillette,
Kjetil Storaker
Agenda
• Market Assessment
• Solution Possibilities
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Product definition
Product features/benefits
Competitive advantage
Distribution
Partners
Revenue
Technical goals
• Recommendations
New Business Concept
• Network discovery tool capable of gathering
information on:
– Hardware (includes desktop, server, and mobile
devices) configurations; and
– Software licensing information
• Solving information gathering requirements
for corporate and governmental networks of
any size
• Supports the systematic detection and
inventory of any device on the network
Conceptual Architecture
Market Assessment
• Rivalry
– Indirect rivals – others in the business but either platform specific or
integrated for specific software manufacturers
• Substitutes
– Nothing direct unless a network is entirely Microsoft products.
– No one product that covers all platforms.
• New Entrants
– Very few barriers to entry – startup costs, labor, design, marketing
– NCMX has very little head start on any direct competition
• Buyer Power
– May already have a manual or electronic system in place
– NCMX is looking to break into the market
• Supplier Power
– Hardware and device manufacturers
– Broad and potentially harmful affects
Business Trends: Drive Costs Down,
Boost Innovation, Manage Risk
TOP-TEN BUSINESS TRENDS, 2003
Ranking
Average weighted score (10 = max)
1
Costs/budget pressures
2
3
4
5
6
7
8
9
10
2003
2002
2001
1
1
1
Data security concerns
2

4
4
Faster innovation
3

5
6
Business risk management
4

-
-
Single view of customer
5

3
3
Stakeholder pressure
6
2
8
Greater transparency of reporting
7
-
-
E-enabled business/government
8
6
5
9
8
10
10
-
-
Growing value of knowledge capital
Personal data privacy concerns
  Selected change in
ranking compared with 2002
Top Management Priorities: Provide Executive
Leadership, Demonstrate Value
TOP-TEN CIO MANAGEMENT PRIORITIES, 2003
Average weighted score (10 = max)
1 2 3 4 5 6 7 8 9 10
Providing guidance for the board/executive
Demonstrating business value of IS/IT
Improving IT governance
Reducing total IT costs
Ranking
2003
2002
2001
Forecast
2006
1
2
3
1
2
3
5
2
3
-
-
12
4
5
11
6
Develop/enhancing IT architectures
5

8
6
8
Strategizing for IS/business linkage
6

1
1
3
Strengthening program/project prioritization
and management
7
6
7
15
Developing leadership in IS senior team
8
4
9
5
Managing benefits realization
9
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4
Tightening security / privacy safeguards
10
7
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9

  Selected change in
ranking compared with 2002
Top Technology Priorities:
Secure and Integrated Technology
TOP-TEN TECHNOLOGY PRIORITIES, 2003
Ranking
Average weighted score (10 = max)
Forecast
2001
2006
2003
2002
Security enhancement tools
1
1
2
1
Applications integration/middleware/
messaging
2
3
5
9
Enterprise portal deployment
3
7
8
12
Network infrastructure/management tools
4
5
3
17
Internal e-enabling infrastructure
5
6
1
13
1
Web design, development and content
management tools
Storage management (SAN, NAS)
deployment
Customer Relationship Management
(CRM)
2
3
4
5
6
7
8
9
10
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6

2
-
14
7
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11
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18
8
9
6
6
Web services – internal or external
9
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2
Deploying XML based processes/
messaging
10
12
12
8
  Selected change in
ranking compared with 2002
Top-ten 2003 CIO Management Priorities Details
TOP-TEN CIO MANAGEMENT PRIORITIES, 2003
0% 20% 40% 60% 80% 100%
Ranking in previous
surveys
2003
2002
2001
Forecast
2006
Providing leadership and guidance for
the board/executive
1
2
3
1
Demonstrating business value of IS/IT
2
3
5
2
Improving IT governance
3
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12
Reducing total IT costs
4
5
11
6
Develop/enhancing IT architectures
5

8
6
8
6

1
1
3
6
7
15
4
9
5
9
-
-
4
10
7
-
9
Strategizing for IS/business linkage
Strengthening program/project
prioritization and management
Developing leadership and behavioral
competencies in the IS senior
management team
7
8
Managing benefits realization
Tightening security and privacy
safeguards
1 Very High Impact
2 Somewhat High Impact
3 Somewhat Low Impact
4 Very Low Impact

  Selected change in
ranking compared with 2002
Strengths
• Asset management tool
• Tool facilitates planning for server capacity, application
rollouts, device upgrades, and network capacity
• Easy to understand reporting capabilities
• Reduces total cost of ownership (hardware / software)
• Potential management team
• Design for easy installation
• Scaleable
• Multi-platform, including mobile devices
• Utilize fourth generation programming language - XML
Weaknesses
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Security of data if leaves enterprise
Lack working capital
No workforce
Scope creep
Product can be easily copied
Opportunities
• First mover advantage
– Establish distribution channels
– Build barrier to entry through switching cost
– Became standard
• Products projected ease of use
• Increase company efficiency
– Reduce inventory hours
– Help to expose unused software and eliminate
fees
– Update company software in time
Opportunities
• Unlimited potential
– Applicable to every industry
– Scaleable
• Assist CIOs in meeting their goals
– Show value of IT
– Reduce IT costs
– Be a strategic partner within their organization
• Centralize software license management of
geographically distributed network with minimal IT
staff
Opportunities
• Current methods are not reliable or there
isn’t an answer to all asset tracking
problems
• Accurate info can take a lot of time
• Many fee structures available
Threats
• Other competition with deeper pockets already
exists. For example, Tivoli Distribution 4.0 and
Inventory 4.0 – Agent (< 2MB) per client
• Tivoli has relationship with Dell and Intel machines are shipped with agent installed
• Large corporate customers will want enterprise
license – fixed cost
• Existing products deliver extensive, flexible
reporting - need to bring more value than just
flexible reporting
Threats
• OS Constraints – large enterprises may
have 10+ functioning OS (Windows 95, 98,
2000; NT; XP; Solaris 2.6, 8, 9; HP-UX, etc)
• Server based environments typically have
many resident tools: database and file
management, application queue
management, etc this tool must function
without impacting those tools
• Network Constraints – impact of pushing
updates (>130MB) difficult
Threats
• Existing competition
– Microsoft
– MSIN – only for MS products
– SMS – tracks MS, Winzip, Acrobat, etc. ,but not
UNIX products
• Takes a lot of time to set-up, but easy to use once
implemented
• Sits on SQL server
• Very expensive
Existing Competition
Desktop
Server
Mobile Device
Wavelink
Wavelink
Wavelink
Afaria product from
Afaria product from
Afaria product from
Macrovision SAMsuite
XTNDConnect Server from
Systems
Tivoli Inventory / Distribution
Tivoli Inventory / Distribution
iMobile suite from
Orbiter from Callisto
Zenworks from Novell)
Orbiter from Callisto
Zenworks from Novell)
Orbiter from Callisto
Zenworks from Novell)
F-Secure
Existing Competition
Desktop
Server
Mobile Device
Mobile Automation 2000
from Mobile Automation, Inc
Mobile Automation 2000
from Mobile Automation, Inc
Mobile Automation 2000
from Mobile Automation, Inc
ON Technology's Command
ON Technology's Command
ON Technology's Command
Orbiter from Callisto
Zenworks from Novell)
Orbiter from Callisto
Zenworks from Novell)
Orbiter from Callisto
Zenworks from Novell)
Novadigm Enterprise
Novadigm Enterprise
Novadigm Enterprise
Aether Systems Mobile
Center
Product Definition
• Network discovery tool
– Monitor, collect and update data
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Hardware profiles
Software installed on nodes
Update of software
Track mobile devices
• Gives user the ability to “see” license
compliance
• Reports desired data in actionable format
understandable to the average person
Features & Benefits
• Cross platform functionality
– Networks consisting of various OS and
configurations
– Use of XML standard
– Simplified installation process
– Engine resides on server
– User interfaces only on select nodes
• Customizable reporting tools
Evolutionary stage
• Birth
– Work with customers and suppliers to define
value proposition for them
– Protect your ideas
– Tie up critical lead customers
– Establish channels of distribution
Applications
• CIO
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Track network assets – hardware and software
Address cost/budget pressures
Demonstrate business value
Provide technical leadership and guidance for the board/executive
team
– Data security
– Improve governance and reduce costs
• CFO
– Budgets
• Review and forecast with more detail
• CEO
– Through visual means – be able to better understand the business
value of IS/IT
Competitive Advantage
• Technology would work across platforms
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Any Hardware: HP, Sun, IBM, Compaq, Dell, etc.
Any OS: Windows, HP-UX, Solaris, etc.
Any Database: Oracle, Sybase, SQL, etc.
Any Device: Cell Phones, Hand-Held PCs, etc.
No installation on nodes necessary
Flexible pricing structure
Scaleable
Management tool that allows to obtain specific
reports for different goals
Competitive Landscape
• SMS, Tivoli, Xassets,
Gasp 6, Bentley
SMS
NCMX
Price
– Concentrations on single
platforms or proprietary
software
– Developers are integrating
software metering into
product offerings
– No universal, cross
platform network discovery
tool
Tivoli
Gasp
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Bentley Xassets
Configuration Platform
Development Requirements
• Technology
– Determine how to address security concerns
• Personnel
– Should be able to easily translate business
need to technical parameters
– Familiar with various environments / platforms
– Have the support staff to implement
• External
– Establish feeling of trust, so suppliers want to
build long-term relationship
Distribution Strategy
• Partners
– ASPs
– Software manufacturers
– Integrators
• Direct
– Off the shelf version - retail
– Seek out clients – sales staff
– Utilize endorsement from software organization
• FAST (U.K.)
• BSA (Business Software Alliance – worldwide)
• CAAST (Canada)
Marketing Strategies
• Strategy & execution
– Trial versions
• Free or reduced cost
• Build in expiration
– Advertise in industry specific magazines and
trade journals
• Narrow scope - try to reach the right people
– Conventions - conferences
• Software, hardware and industry conventions
• Sponsor PLU MBA student to do further market
research – produce conference or white paper
Partners
• ASPs
– Bundle NCMX with other software packages
• Software manufacturers
– Integrate NCMX technology into existing or
future version of software products
• Integrators
– Monitor disparate networks
– Technology supplies superior accountability of
assets
Direct Channel (FAST)
• FAST (Federation Against Software Theft)
• NCMX partner
– FAST has a similar role to the BSA in the
United States and will recommend NCMX
exclusively to all its member companies (over
2,300)
– This will make marketing NCMX’ services in the
United Kingdom much easier
• Over 2,300 companies will have been recommended
NCMX by FAST and are therefore very likely to
utilize choose NCMX when software auditing,
updating, installing and downloading is necessary
Direct Channel (FAST)
• FAST is based in London, England
– Provides consulting services for business customers
• Both for profit and not-for profit
– The company has several well-known customers, such
as Vodafone, BP, BT, Lloyds of London, etc…
– NCMX will go into partnership with FAST, and FAST will
get 15-40% of the sale of NCMX’ products, depending
on what FAST did to produce the sale
– FAST is NCMX’ main strategy in the United Kingdom
(UK) market
Direct Channel (FAST)
• Profit margins are higher in the UK
– mainly due to lower competition
• However, marketing costs are also higher in
the UK
• Support & Staff costs are considerably
higher in the UK than the US
– more infrastructure is necessary to produce a
sale
Revenue Models
• Direct sales
– Setup fees – installation and configuration
– Subscription license fee per user interface modules
(monthly, yearly)
– Lease – annual fee based on users and/or the size of
the network (number of nodes)
– One time licensing fee – no reoccurring fees
– Sell it out right - package
• Partner sales
– Flat fee per installation of integrated XML engine /
interrogation tool by partner
– License fee per user interface installation for client use
Revenue Model - Direct
• Discover potential clients current costs of software
management – if any
• Calculate revenue potential using various models
• Deduce how long it will take to reach breakeven
or acceptable compensation point
• Trade off setup fees for long term contract
Use NPV to discover feasibility, breakeven and contract length
needed
• NCMX would have the option to pursue or break
off the relationship before costs get to large
Success Metrices
• Six Month Goals
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Solution designed and functional testing completed
Working Prototype September 2003
BETA testing completed, product revisions completed
Referral/recommendation secured from FAST November 2003
General availability release December 2003
Twelve Month Goals
– Solution deployed successfully on six enterprises
– Additional referral/recommendation secured from BSA (or other
software piracy organizations)
– Client ROI data available August 2004
• Cost savings
• Asset management control
2003 Timeline
Business Plan
Funding Initial
Design / Development
Prototype
Secure partners ”official” recommendation
Funding 2nd Round
Beta Test
Marketing Launch
Jun
July
Sep
Oct
Nov
Dec
Recommendations
• Concentrate on the partner channel unless an
endorsement by software federation
• Browser based user interface
• Ensure ability of technology to be integrated by
software developers (partners)
• Extremely flexible pricing options
• Off the shelf version – free or limited trial version
• Don’t overlook hardware asset tracking
• Educate potential clients – don’t try to sell them
• Use real life studies and examples (ROI) showing
how software and hardware asset tracking can save
users money and make developers money
Recommendations
• Concentrate on building user base
– Innovators and early adopters
• Partner with hardware manufacturers
• Target senior management on direct sales
• Build customer support mechanisms
– Alliances with partners, integrators, consultants
– Internal system
• Reporting compatibility with installed office
software
• Wizard based reporting tool
• Well thought out data retrieval schedule
Recommendations
• Obtain Beta clients and ensure their feedback is
evaluated and used to drive product improvements
• Offer a wide range of reporting possibilities
• Products already present in the market…Product
must be better (easier to use / install / pull data),
cheaper, and demonstrate compelling value
• Build relationships with mobile device companies
• Technology must support and function with no
impact on various OS’
Security Recommendations
• Security of transactions (Channel security)
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Standardized
Keep XML schema secret
Encryption
SSL (Secure Sockets Layer)
• Security for mobile devices (Content security)
– No standard
– Encryption
– Antivirus
• Server security
– Identification numbers on agents
– Separate segments of server for each network
• No interference
• No access
Recommendations - Exit
• Sell
– Sell
• IPO
– Sell
• Build and Expand
– Sell
• Adopt “sell” milestones
– Number of users
– Sales value
Possible Alliances
• Business Partners
– System integrators
– Software providers
– ASPs
• Technology Partners
– Search out complimentary technologies
– Network management systems (NMS)
– Operations support systems (OSS)
– Hardware manufacturers
• Platform Partners
– Operating systems
– Databases
• Service Affiliates
– Implementation consultants
– Educate consulting firms on the product and its capabilities
Selected References
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www.xassets.com
KPMG, Cost saving realization – managing you r assets,
http://www.xassets.com/docs/kpmg.pdf, report to UK Plc, 2001.
Romeo, J., Keeping Tabs on Software Yields Efficiency and Savings,
Engineering News-Record, volume 249, Issue 24, 2002.
Hoffman, T., Report: Asset-Tracking Troubles Cost Plenty, Computerworld,
volume 36, Issue 25, 2002
James F. Moore Predators and prey: A new ecology of competition
Content security at hand – Handheld device security
http://www.f-secure.com/products/white-papers/hhsecurity021122.pdf
Interview Guruprasad Joshi - June 6, 2003
Drive Enterprise Effectiveness: The 2003 CIO Agenda – presented by Gartner
Vendors With Existing Products:
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http://www.on.com/
http://www.novell.com/products/zenworks/handhelds/
http://www.synchrologic.com/
http://www.novell.com/products/zenworks/handhelds/
http://www.novadigm.com/
http://www.starremote.com/start.htm
http://www.wavelink.com/
http://www.xcellenet.com/
Questions ?