Transcript Document 7695569

ProSight
Case Study
1
Agenda
The case study’s goals
 IT Management & ProSight





What have we learned ?



2
The product
The market
The business model
Mistakes
Problems
Lessons
The Case Study Goals
Collect personal insight from the executive team
 Learn the process of “starting up”
 Identify the milestones and turning points

Our Mission:
Learn from others’ mistakes we can’t make them all ourselves.
To boldly go where no one has gone before …
3
Agenda


The case study’s goals
IT Management & ProSight




What have we learned ?



4
The product
The market
The business model
Mistakes
Problems
Lessons
ProSight’s Mission Statement
To enable management teams to
choose and execute an IT portfolio
strategy that makes their business
plans a reality
5
The Problem

What is Information Technology (IT) ?


The shoemaker’s children go barefoot





6
Market of billions of Dollars
CFO has ERP
VP Marketing has CRM
VP Sales has SFA
CIO has ???
84% of IT projects are canceled or exceed
planned budget (Standish Group)
The Solution – eIT-Enabler
To enable management teams to choose and execute an IT
portfolio strategy that makes their business plans a reality
7
The Solution – eIT-Enabler
Investor map – Align IT with business strategy
8
The Solution – eIT-Enabler
Score Card – Drive operational excellence
9
IT Management
CIO
CEO & Board
Other CIO’s
eIT Forum
Mid Level
Management
IT
Organization
10
Technical Staff – Programmers etc.
PM
Milestones(1)
Jun 1998 Founded by Amir Ofer and Avrami
Tsur as a BRM initiative
 Dec 1998 CEO recruitment
Relocation to the U.S.
Co-founder left
 Nov 1999 eIT Forum – web community for IT
Management

11
Milestones (2)
Jan 2000 Finance round of $10.6 Million
 Apr 2000
Beta sites
 Aug 2000 First costumers: Motorola and
University of Nebraska
 Jan 2001
Finance round of $15.4 Million
despite the recent NASDAQ crash

12
Business Model (1)

Estimated ITM market of $7 Billion annually
(U.S.) (Standish Group)

First To Market – leverage to market control

Target “Top 500” companies with extensive IT
expenditure


13
Positioning as the market leader
Real product for real money
Business Model (2)
14

Charge per license

Professional services & Maintenance

Future - Knowledge brokerage

Burning Rate estimated at $ 1Million monthly

Show prospective revenue NOW
ProSight Customers
15
Penetrating the Market
16

Attain high powered customers as referable
accounts

Provide additional value to all levels of users

Enabler – A platform you can’t manage without

Become the industry standard
ProSight Competitors
In House
Solutions
ProSight’s advantages

Focus on IT rather than general solution


Knowledge sharing & Professional Services
Multi-level solution: Portfolio and middle
management

17
Technology – Cross correlation between existing
information resources
Agenda
The case study’s goals
 IT Management & ProSight





What have we learned ?



18
The product
The market
The business model
Mistakes
Problems
Lessons
Problems & Risks

Real value only in large scale deployments

Product integration demands



Long training period
Israeli based R&D – security hazards


Shift in management behavior
Financing risk
Current market affairs: make $$$ - not promises
sales will either “make them or break them”
19
Mistakes

Initial design out of focus

Executive team recruitment


Two VP’s left ProSight

Late VP Sales recruitment
Sales missed targeted market


Wrong marketing target – focused on the CIO

20
Didn’t focus on strategic costumers
Nice to have not have to have
Our Lessons

Design your product flexible and scalable

Every plan is a base for change

Navigate R&D with market requirements

Timing and Focus are crucial

Hire experienced executive management fast

Make referenceable strategic clients
 Ego
21
kaze katan
Acknowledgements
22
ProSight
 Amir Ofer
 John Cimral
 Doug Yokoyama
 Sue Reber
 Barbra Gaffney
 Ayelet Steinberg
 Noa Sattat
 Ofir Oron
BRM
 Yuval Rakavy
 Ilan Stern
 Johny Klahr
Miscellaneous
 Izhar Shay
 Yael Basher
 Allison Haines
 Avarmi Tsur
Co - founder and chief scientist
CEO
Product manager
VP Marketing
VP Sales & strategic alliances
Accountant
QA Team leader
UI Designer
CTO
HR Director
Advisor
CEO of Business Layers
VP Product Development of BackWeb
Analyst, Gartner Group
Co founder of ProSight
Thank You
Gedon Rosner
David Rabinowitz
Leonid Bakman
Ilana Mushinsky
Sabina Gertz
Eran Golan
23