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Basic of Creating a Biz Case for incubation at IISC Bangalore Dec 2008

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  • This represents a business meta-model, a generalized model of all models that sell technology related products. This is used in BSAP workshops to help focus the participants. This picture helps frame a set of questions: What products and or services comprises your line of business? What is the mission of your LOB? Who are your customers? What is your differentiated value to your customers? How does it map to your customer’s Operation Cycle? (This identifies who is likely to pay for the solution) What market segments are you attacking? How are the market segments differentiated? What is the vision of the new value proposition(s)? What is the go to market strategy for this value proposition? When the LOB is short on cash it begins to put tremendous pressure on Product Development due to the order of precedence in fulfilling cash demands.
  • Biz.101

    1. 1. Creating a Product Biz K. Jagannath Rao [email_address]
    2. 2. The Biz Triangle Technology Products Markets Finance
    3. 3. Life Cycles <ul><li>Technology </li></ul><ul><li>Products </li></ul><ul><li>Markets </li></ul>Adoption Segmentation Demograhics Psycho metrics
    4. 4. Finance <ul><li>Capital & Cashflow </li></ul><ul><li>Projected Income Statement </li></ul>Revenue Year 1 Year 2 Year 3 Year 4 Year 5 CGS GM R&D SG&A OE Sundry Interest PBT Volumes Total Cost FC VC TC BEP Ratios
    5. 5. Sales <ul><li>TAM/SAM </li></ul><ul><li>Acquisition </li></ul><ul><li>Channels </li></ul><ul><li>Retentation </li></ul>Probability X Volume
    6. 6. Key Lessons <ul><li>Fuzzy Front End </li></ul><ul><li>Product Specifications </li></ul><ul><li>Market Strategy </li></ul>idea Biz plan project A B C GM % % Market 0 1 2 3 -3 -2 -1 need rel ship 40% 25% 35% Define Specification Understand Customer Define Customer
    7. 7. Back to Basics - Biz Triangle Technology Products Markets <ul><li>Challenges </li></ul><ul><li>Fuzzy front-end </li></ul><ul><li>Customer acquisition </li></ul><ul><li>Managing overall costs </li></ul>Finance
    8. 8. Operations <ul><li>Product Management </li></ul><ul><li>Strategy </li></ul><ul><li>Schedules </li></ul><ul><li>Engineering </li></ul><ul><li>Productivity & Effiiciency </li></ul><ul><li>Quality & Process </li></ul><ul><li>HR </li></ul><ul><li>Finance </li></ul><ul><li>Infrastructure </li></ul><ul><li>Risk management </li></ul>
    9. 9. Jagan’s Ten Steps <ul><li>What have you identified as the Opportunity? </li></ul><ul><li>Who are the Stake Holders & Players? </li></ul><ul><li>Who is your customer and what is the revenue flow? </li></ul><ul><li>What is your product & differentiation value? </li></ul><ul><li>How will your customer measure your value? </li></ul><ul><li>What is your Business architecture model? </li></ul><ul><li>What is your Go To Market Strategy? </li></ul><ul><li>What is your customer centric approach to expanding your product? </li></ul><ul><li>How will you keep a running lead against other entrants? </li></ul><ul><li>What do you need to execute? </li></ul>Save your time and money : One or Two liner answers to each
    10. 10. Biz Qualifier Investment Time Frame Cash cycle Rev forecast GTM Key Technology/IP Market Size Target Customer Customer Value USP Product Opportunity
    11. 11. Product Overview <ul><li>Name </li></ul><ul><li>Category: Everyday Communication </li></ul><ul><ul><li>Competitive Feature 1 </li></ul></ul><ul><ul><li>Competitive feature 2 </li></ul></ul><ul><ul><li>Competitive feature 3 </li></ul></ul><ul><ul><li>Competitive Feature 1 </li></ul></ul><ul><ul><li>Competitive feature 2 </li></ul></ul><ul><ul><li>Competitive feature 3 </li></ul></ul><ul><ul><li>Competitive Feature 1 </li></ul></ul><ul><ul><li>Competitive feature 2 </li></ul></ul><ul><ul><li>Competitive featuer4 </li></ul></ul><ul><ul><li>Competitive feature </li></ul></ul><ul><li>Why we win: </li></ul><ul><li>X </li></ul><ul><li>Y </li></ul><ul><li>Z </li></ul><ul><li>T </li></ul><ul><li>U </li></ul><ul><li>V </li></ul><ul><li>W </li></ul>Competitor Models X Y <ul><li>Status </li></ul><ul><li>Cost </li></ul><ul><li>Features3-GSM </li></ul>Avg. ’09 ASP Avg. ’09 CPU Avg. ’09 GM % ‘ 09 GM $M Launch date Feb 09 On-Time Differentiated GM$ CURRENT STATUS* Orig Plan Current View Feb 09 $183 $147 $39.5 20% Market Segments: Lifetime Units 1M $183 $147 $39.5 20% Z <ul><li>Status </li></ul><ul><li>Cost </li></ul><ul><li>Features3-GSM </li></ul><ul><li>Status </li></ul><ul><li>Cost </li></ul><ul><li>Features3-GSM </li></ul>
    12. 12. Roadmap H1-09 H2-09 H1-10 H2-10 $x $x $x $x $x $x $x $x
    13. 13. Product Architecture Core Platform Core Platform Core Platform Core Platform Input Input Input Output Output Output User I/F User I/F User I/F System I/F System I/F System I/F
    14. 14. Implementation Strategy Buy / Build / Partnership Scaling – Volumes, Features Goto Market