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

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  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